Document:

Lease Agreement, The Northwestern Mutual Life Insurance Co. and the Registrant

 Exhibit 10.07 
 OFFICE LEASE 
 between 

THE NORTHWESTERN MUTUAL LIFE INSURANCE COMPANY (Landlord) and 

ACUCELA INC. (Tenant) 
 1301 Second Avenue 
 Seattle, Washington 

IRE 334246 

 TABLE OF CONTENTS 

 

									
	ARTICLE	  	PAGE	 
	Article 1. Basic Lease Information	  	1	 
				
		 	1.1	  	Basic Lease Information	  	 	1	  
		 	1.2	  	Exhibits	  	 	3	  
		
	Article 2. Agreement	  	 	4	  
		
	Article 3. Delivery of Premises	  	 	4	  
				
		 	3.1	  	Delivery of Possession	  	 	4	  
		 	3.2	  	Early Entry	  	 	5	  
		
	Article 4. Monthly Base Rent	  	 	5	  
				
		 	4.1	  	Monthly Base Rent	  	 	5	  
		
	Article 5. Operating Expenses	  	 	6	  
				
		 	5.1	  	Operating Expenses	  	 	6	  
		 	5.2	  	Estimated Payments for Operating Expenses	  	 	8	  
		 	5.3	  	Annual Settlement of Operating Expenses	  	 	8	  
		 	5.4	  	Final Proration of Operating Expenses	  	 	9	  
		 	5.5	  	Occupancy Variance	  	 	9	  
		 	5.6	  	Real Estate Taxes	  	 	9	  
		 	5.7	  	Estimated Payments of Real Estate Taxes	  	 	10	  
		 	5.8	  	Final Proration of Real Estate Taxes	  	 	10	  
		 	5.9	  	Other Taxes	  	 	10	  
		 	5.10	  	Additional Rent	  	 	11	  
		
	Article 6. Insurance	  	 	11	  
				
		 	6.1	  	Landlord’s Insurance	  	 	11	  
		 	6.2	  	Tenant’s Insurance	  	 	11	  
		 	6.3	  	Forms of Policies	  	 	12	  
		 	6.4	  	Waiver of Subrogation	  	 	12	  
		 	6.5	  	Adequacy of Coverage	  	 	13	  
		 	6.6	  	Certain Insurance Risks	  	 	13	  
		
	Article 7. Use	  	 	13	  
		
	Article 8. Compliance With Laws and the Declaration	  	 	13	  

									
		
	Article 9. Hazardous Substances	  	 	14	  
		
	Article 10. Assignment and Subletting	  	 	15	  
				
		 	10.1	  	General	  	 	15	  
		 	10.2	  	Recapture	  	 	16	  
		 	10.3	  	Submission of Information	  	 	17	  
		 	10.4	  	Payments to Landlord	  	 	17	  
		 	10.5	  	Prohibited Transfers	  	 	17	  
		 	10.6	  	Permitted Transfer	  	 	17	  
		 	10.7	  	Condition	  	 	18	  
		 	10.8	  	Remedies	  	 	18	  
		 	10.9	  	Effect on Options	  	 	18	  
		
	Article 11. Rules and Regulations	  	 	18	  
		
	Article 12. Common Areas	  	 	19	  
		
	Article 13. Landlord’s Services	  	 	19	  
				
		 	13.1	  	Landlord’s Repair and Maintenance	  	 	19	  
		 	13.2	  	Landlord’s Other Services	  	 	19	  
		 	13.3	  	Tenant’s Costs	  	 	20	  
		 	13.4	  	Limitation on Liability	  	 	20	  
		
	Article 14. Tenant’s Care of the Premises	  	 	21	  
		
	Article 15. Alterations	  	 	22	  
				
		 	15.1	  	General	  	 	22	  
		 	15.2	  	Free-Standing Partitions	  	 	22	  
		 	15.3	  	Removal	  	 	22	  
		 	15.4	  	ADA Compliance	  	 	22	  
		 	15.5	  	Telecommunications Lines	  	 	23	  
		
	Article 16. Mechanics’ Liens	  	 	23	  
		
	Article 17. End of Term	  	 	24	  
		
	Article 18. Eminent Domain	  	 	24	  
		
	Article 19. Damage and Destruction	  	 	25	  
		
	Article 20. Subordination	  	 	26	  
		
	Article 21. Rights Reserved by Landlord	  	 	26	  

									
		 	21.1	  	Access	  	 	26	  
		 	21.2	  	General Matters	  	 	27	  
		 	21.3	  	Changes to the Project	  	 	27	  
		 	21.4	  	Avoidance of Interference	  	 	28	  
		
	Article 22. Indemnification, Waiver and Release	  	 	28	  
				
		 	22.1	  	Tenant’s Indemnification	  	 	28	  
		 	22.2	  	Waiver and Release	  	 	28	  
		 	22.3	  	Landlord’s Indemnification	  	 	29	  
		
	Article 23. Quiet Enjoyment	  	 	29	  
		
	Article 24. Effect of Sale	  	 	29	  
		
	Article 25. Default	  	 	30	  
				
		 	25.1	  	Events of Default by Tenant	  	 	30	  
		 	 25.2
	  	Landlord’s Remedies	  	 	31	  
		 	 25.3
	  	Damages; No Termination	  	 	32	  
		 	 25.4
	  	Damages upon Termination	  	 	32	  
		 	 25.5
	  	Cumulative Remedies	  	 	33	  
		 	 25.6
	  	Waiver of Redemption/Mitigation	  	 	33	  
		
	Article 26. Landlord’s Lien	  	 	33	  
		
	Article 27. Parking	  	 	33	  
		
	Article 28. Intentionally Omitted	  	 	34	  
		
	Article 29. Signs	  	 	34	  
		
	Article 30. Security Deposit	  	 	34	  
		
	Article 31. Intentionally Omitted	  	 	35	  
		
	Article 32. Option to Renew the Term	  	 	35	  
		
	Article 33. Miscellaneous	  	 	36	  
				
		 	33.1	  	No Offer	  	 	36	  
		 	33.2	  	Joint and Several Liability	  	 	36	  
		 	33.3	  	No Construction Against Drafting Party	  	 	36	  
		 	33.4	  	Time of the Essence	  	 	37	  
		 	33.5	  	No Recordation	  	 	37	  
		 	33.6	  	No Waiver	  	 	37	  

  
 III

							
	 33.7
	  	Limitation on Recourse	  	 	37	  
	 33.8
	  	Estoppel Certificates	  	 	37	  
	 33.9
	  	Waiver of Jury Trial	  	 	37	  
	 33.10
	  	No Merger	  	 	38	  
	 33.11
	  	Holding Over	  	 	38	  
	 33.12
	  	Notices	  	 	38	  
	 33.13
	  	Mortgagee Protection	  	 	38	  
	 33.14
	  	Severability	  	 	39	  
	 33.15
	  	Written Amendment Required	  	 	39	  
	 33.16
	  	Captions	  	 	39	  
	 33.17
	  	Authority	  	 	39	  
	 33.18
	  	Brokers	  	 	39	  
	 33.19
	  	Governing Law	  	 	40	  
	 33.20
	  	No Easements for Air or Light	  	 	40	  
	 33.21
	  	Tax Credits	  	 	40	  
	 33.22
	  	Financial Reports	  	 	40	  
	 33.23
	  	Landlord’s Fees	  	 	40	  
	 33.24
	  	Non-waiver	  	 	40	  
	 33.25
	  	Presumption	  	 	40	  
	 33.26
	  	Intentionally Omitted	  	 	41	  
	 33.27
	  	No Right to Terminate	  	 	41	  
	 33.28
	  	No Liability for Crimes	  	 	41	  
	 33.29
	  	Binding Effect	  	 	41	  
	 33.30
	  	Confidentiality	  	 	41	  
	 33.31
	  	Force Majeure	  	 	41	  
	 33.32
	  	Interest	  	 	42	  
	 33.33
	  	Entire Agreement	  	 	42	  
	 33.34
	  	Business Restriction Representation and Warranty	  	 	42	  
	 33.35
	  	Lender’s Request for Landlord’s Consent	  	 	42	  
	 33.36
	  	Relocation	  	 	43	  
	 33.37
	  	Green Provision	  	 	43	  
	 33.38
	  	Attorneys’ Fees and Expenses	  	 	43	  
	 33.39
	  	Transportation Management Plan	  	 	43	  
	   33.40
	  	Furniture	  	 	44	  

  
 iv 

 Exhibits 
 Exhibit A Legal Description of the Land 
 Exhibit B Layout of the Premises

 Exhibit C Work Letter 
 Exhibit D Commencement Date Certificate 
 Exhibit E Rules and Regulations

 Exhibit F Intentionally Omitted 
 Exhibit G Tenant Estoppel Certificate 
 Exhibit H Landlord’s Subordination and
Consent Agreement 
 Exhibit I Green Addendum 
 Exhibit J Subordination, Non-Disturbance and Attornment Agreement 
 Exhibit K List
of Furniture 

 IRE 334246 
 OFFICE LEASE 
 THIS OFFICE LEASE (“Lease”) is entered into by and
between Landlord and Tenant on the date set forth in the following Basic Lease Information. Landlord and Tenant hereby agree as follows: 

ARTICLE 1. BASIC LEASE INFORMATION. 
 1.1 Basic Lease Information. In addition to the terms that are defined elsewhere in this Lease, the following terms shall have the meaning set forth below: 

 

	 	(a)	Lease Date: June 22, 2010 

  

	 	(b)	Landlord: The Northwestern Mutual Life Insurance Company 

	 	  	Type of legal entity and state of formation: a Wisconsin corporation 

 

	 	(c)	Landlord’s Address for receipt of notice: 

	 	  	The Northwestern Mutual Life Insurance Company 

	 	  	c/o Northwestern Investment Management Company 

	 	  	 500
108’h Avenue N.E., Suite 2020

	 	  	Bellevue, WA 98004 

	 	  	Attn: Regional Manager 

	 	  	(Fax: 425.451.1179) 

  

	 	  	with a copy to: 

  

	 	  	Northwestern Investment Management Company 

	 	  	720 East Wisconsin Avenue 

	 	  	Milwaukee, WI 53202 

	 	  	Attn: Managing Director-Asset Management 

	 	  	(Fax: 414.665.2431) 

  

	 	(d)	Tenant: Acucela Inc. 

	 	  	Type of legal entity and state of formation: a Washington corporation 

 

	 	(e)	Tenant’s Address for receipt of notice: 

	 	  	Prior to the Commencement Date: Acucela 

	 	  	Inc. 

	 	  	 21720
23’d Drive SE, Suite 120

	 	  	Bothell, WA 98021 

	 	  	Attn: Dewey Blocker, Director, Finance 

	 	  	(Fax: (425) 527-3156) 

	 	

  
 1 

	 	  	After the Commencement Date: 

	 	  	Acucela Inc. 

	 	  	 1301 Second Avenue,
19th Floor 

	 	  	Seattle, WA 98101-3802 

	 	  	Attn: Dewey Blocker, Director, Finance 

	 	  	(Fax: (425) 527-3156) 

  

	 	  	with a copy to: Alston, Courtnage & Bassetti LLP 

  

	 	  	1000 Second Avenue 

	 	  	Suite 3900 

	 	  	Seattle, WA 98104-1045 

  

	 	  	Attn: Thomas Barkewitz 

	 	  	(Fax: (206) 623-1752) 

  

	 	  	It is specifically understood and agreed that all service of process may be served upon the registered agent maintained by Tenant in the State of Washington pursuant to
Washington law, and if no such registered agent is required or maintained, service of process may be made upon Tenant at the Premises in accordance with Washington law. 

 

	 	  	Land: The parcel of land located at the Building Address upon which the Building is situated. The land is legally described on Exhibit A. 

 

	 	  	Project: Two (2) commercial condominium units known as the Office Unit and the Garage Unit, which are part of the commercial condominium created and
governed by the terms of that certain Condominium Declaration for Washington Mutual — Seattle Art Museum Project recorded in the real property records of King County, Washington under Recorder’s No. 20060329000201 (the
“Declaration”). The Project is part of the building located at 1301 Second Avenue, Seattle, King County, Washington (the “Building”) which is situated on the Land. 

 

	 	(h)	Building: As defined above. 

  

	 	(i)	Building Address: 1301 Second Avenue, Seattle, Washington 

  

	 	(j)	 Premises:
19th Floor of the Building, as further shown on Exhibit B
to this Lease. 

  

	 	(k)	Rentable Area of the Premises: 21,831 rentable square feet, which Landlord and Tenant hereby conclusively agree shall be the Rentable Area of the Premises for
all purposes of this Lease. 

  

	 	(l)	Term: Approximately fifty eight (58) months, beginning on the Commencement Date and ending on the Expiration Date, as the same may be extended pursuant to
Article 32 of this Lease. 

  
 2 

	 	(m)	Commencement Date: The earlier of (a) thirty (30) days from the date of mutual execution of this Lease, or (b) the date of Tenant’s occupancy
of the Premises. 

  

	 	(n)	Expiration Date: February 28, 2015, as the same may be extended pursuant to Article 32 of this Lease. 

 

	 	(o)	Security Deposit: $458,451.00. 

  

	 	(p)	Monthly Base Rent: See Article 4.1. 

  

	 	(q)	Additional Rent: Any amounts that this Lease requires Tenant to pay in addition to Monthly Base Rent. 

 

	 	(r)	Rent: Collectively, the Monthly Base Rent and Additional Rent 

  

	 	(s)	Tenant’s Proportionate Share: Two and one-half Percent (2.5%), which is the ratio of the Rentable Area of the Premises (21,831 square feet) to the rentable
square footage of the Building (872,026 square feet). 

  

	 	(t)	Parking Spaces: Sixteen (16) unreserved parking stalls 

  

	 	(u)	Parking Charge: Current market rates, subject to the Rules and Regulations. The parking charge for 2010 is $280.00 per stall per month (which includes all taxes
and fees). 

  

	 	(v)	Landlord’s Broker: CB Richard Ellis 

  

	 	(w)	Tenant’s Broker: Jones Lang LaSalle 

  

	 	(x)	Use: The permitted use of the Premises is general office purposes. 

 If any other provision of this Lease conflicts with that which is set forth in this Article 1.1, such other provision will prevail. 

1.2 Exhibits. The following exhibits are attached to this Lease and are made part hereof: 

 

	 	  	Exhibit A Legal Description of the Land 

	 	  	Exhibit B Layout of the Premises 

	 	  	Exhibit C Work Letter 

	 	  	Exhibit D Commencement Date Certificate 

	 	  	Exhibit E Rules and Regulations 

	 	  	Exhibit F Intentionally Omitted 

	 	  	Exhibit G Tenant Estoppel Certificate 

	 	  	Exhibit H Landlord’s Subordination and Consent Agreement 

	 	  	Exhibit I Green Addendum 

	 	  	Exhibit J Subordination, Non-Disturbance and Attornment Agreement 

	 	  	Exhibit K List of Furniture 

  
 3 

 ARTICLE 2. AGREEMENT. 
 Landlord is the owner of the Project which is part of the Building. Landlord shall fully perform its obligations and enforce its rights under the Declaration for the benefit of Tenant hereunder. If any
obligation of Landlord under this Lease is the obligation of the owners association formed under the Declaration (the “Association”), Landlord shall cause the Association to perform such obligation, including without limitation by voting
in a manner consistent with the performance of such obligation by the Association, but in no event shall Landlord be required to vote or exercise its rights under the Declaration in a commercially unreasonable manner. 

Landlord leases the Premises to Tenant, and Tenant leases the Premises from Landlord, pursuant to the terms and conditions of this Lease.
The duration of this Lease shall be the Term, as the same may be extended pursuant to Article 32 hereof. The Term shall commence on the Commencement Date and shall expire on the Expiration Date, except as may be otherwise set forth in this Lease.

 Landlord grants to Tenant the rights under this Lease to use, in common with Landlord and other tenants and occupants of the
Building and their respective employees and invitees and all others to whom Landlord has or may hereafter grant rights to use the same, the Common Areas (as defined in Article 12 below), including the public walkways and public passageways of the
Project, the Building lobby (but not for advertising or promotional purposes), entrances, stairs and elevators and, if the Premises include less than an entire floor of the Building, the common lobbies, hallways and toilets and other common
facilities of such floor. No easement, license or other right to light, air or view is created by this Lease. 
 ARTICLE 3. DELIVERY OF
PREMISES. 
 3.1 Delivery of Possession. Landlord shall construct or install in the Premises the Landlord’s
Work to be constructed or installed by Landlord according to the Work Letter attached to this Lease as Exhibit C (“Landlord’s Work” and “TI Work” as described in the Work Letter are herein collectively described as the
“Work”; “TI Work” as described in the Work Letter may also be described herein as “Tenant Improvements”). Landlord shall deliver possession of the Premises to Tenant on the Commencement Date. Landlord shall remove the
stairway between Floors 19 and Floor 20 and shall erect a temporary barrier during said work to prevent access to said work by anyone other than Landlord’s contractors. Landlord shall commence Landlord’s Work as soon as reasonably
practicable after Landlord has received all permits for Landlord’s Work. If substantial completion of the Work is delayed due to any circumstances, this Lease shall not thereby be void or voidable and Landlord shall not be liable to Tenant for
any resultant damages or loss; provided, however, if substantial completion of the Work is delayed as a result of any delay caused by Landlord, Tenant will be entitled to an abatement of Rent of one day for each day of Landlord-caused delay. Tenant
shall execute the Commencement Date Certificate attached to this Lease as Exhibit D within fifteen (15) days of Landlord’s request. 

  
 4 

 Tenant acknowledges that neither Landlord nor its agents or employees have made any
representations or warranties as to the suitability or fitness of the Premises for the conduct of Tenant’s business or for any other purpose, nor has Landlord or its agents or employees agreed to undertake any alterations or construct any
tenant improvements to the Premises except as expressly provided in this Lease and the Work Letter. 
 3.2 Early Entry.
Tenant (and Tenant’s Architect, project manager and consultants) shall have the right to enter the Premises upon mutual execution of this Lease and prior to the Commencement Date for the purpose of managing the TI Work, installing fixtures,
furniture, equipment and telephone systems and for any other purpose permitted by Landlord. Such entry prior to the Commencement Date shall be at Tenant’s sole risk and subject to all the terms and provisions of this Lease, including the terms
and provisions of Article 6.2 and Article 15, below, as though the Commencement Date had occurred, except for the payment of Rent. Tenant, its agents or employees shall not interfere with or delay Landlord’s completion of construction of
Landlord’s Work set forth in the Work Letter; provided, however, that Tenant’s project manager will have the right to manage the TI Work and shall coordinate the TI Work with Landlord’s construction of
Landlord’s Work. All rights of Tenant under this Article 3.2 shall be subject to the requirements of all applicable building codes, zoning requirements, and federal, state, and local, rules and regulations (“Laws”). Landlord has the
right to impose additional conditions on Tenant’s early entry that Landlord, in its reasonable discretion, deems appropriate, including without limitation, an indemnification of Landlord and proof of insurance, and Landlord shall further have
the right to require that Tenant execute an early entry agreement containing such conditions prior to Tenant’s early entry. 

ARTICLE 4. MONTHLY BASE RENT. 
 4.1 Monthly Base Rent. Throughout the Term, as the same may be extended pursuant to Article 32 hereof, Tenant shall pay Monthly Base Rent to Landlord in the amount and for the time periods
described as follows and in Article 32: 
  

									
	 Period
	  	Annual Base Rent	 	  	Monthly Base Rent	 
	 Months 1 — 24
	  	$	458,451.00	  	  	$	38,204.25	  
	 Months 25 — 29 Months
	  	$	-0-	  	  	$	-0-	  
	 30 — Expiration Date
	  	$	458,451.00	  	  	$	38,204.25	  

 Monthly Base Rent shall be paid in advance on or before the first day of each calendar month of the Term, and shall be
accompanied by any applicable rent, sales, use or other tax which is based on the amount and/or payment of Rent payable pursuant to this Lease. If the Term commences on a day other than the first day of a calendar month or ends on a day other than
the last day of a calendar month, then Monthly Base Rent for such calendar month will be appropriately prorated based on the actual number of calendar days in such calendar month. If the Term commences on a day other than the first day of a calendar
month, then the prorated Monthly Base Rent for such month will be paid on or before the first day of the Term. Monthly Base Rent shall be paid to Landlord, without written notice or demand and without deduction or offset, as an independent covenant
of Tenant, in lawful money of the United States of America at Landlord’s address set forth in Article 1.1 herein or to such other address as Landlord may from time to time designate in writing. 

  
 5 

 All Rent shall be payable by Tenant to Landlord at the office of Landlord or at such other
place as Landlord may designate from time to time, in lawful money of the United States of America, without offset, abatement, counterclaim or deduction, except as specifically set forth herein. All Rent shall be paid by either good and sufficient
check or a wire transfer of immediately available funds to Landlord’s account, which account information will be given to Tenant promptly upon Tenant’s request. 
 If Tenant fails to pay any Rent more than three (3) business days after such Rent is due, the unpaid amounts will be subject to a late payment charge equal to greater of (i) five percent
(5%) of the unpaid amounts or (ii) Two Hundred Fifty Dollars ($250.00). This late payment charge is intended to compensate Landlord for its additional administrative costs resulting from Tenant’s failure, and has been agreed upon by
Landlord and Tenant as a reasonable estimate of the additional administrative costs that will be incurred by Landlord as a result of Tenant’s failure. The actual cost in each instance is extremely difficult, if not impossible, to determine.
This late payment charge will be paid to Landlord together with such unpaid amounts and interest pursuant to Article 33.32, below. The payment of this late payment charge will not constitute a waiver by Landlord of any Event of Default by Tenant
under this Lease. Any payments of any kind returned for insufficient funds will be subject to an additional charge of $60.00. 
 ARTICLE
5. OPERATING EXPENSES. 
 5.1 Operating Expenses. 

(a) In addition to Monthly Base Rent, for all calendar months during which Tenant is paying Monthly Base Rent, Tenant shall pay
Tenant’s Proportionate Share of the Operating Expenses of the Project. If Operating Expenses are calculated for a partial calendar year, an appropriate proration shall be made. Notwithstanding the foregoing, subsequent to calendar year 2010,
Operating Expenses controllable by Landlord (i.e., Operating Expenses other than the cost of electricity, water, waste disposal, and other utilities costs and the costs of insurance obtained with respect to the Project) shall not increase during the
original Term on an annual basis by more than four percent (4%) on a compounding (i.e., the four percent (4%) cap is applied to the most recent calendar year controllable Operating Expenses) and cumulative (i.e., if controllable Operating
Expenses increase less than four percent (4%) from one calendar year [for purposes of this Article 5.1(a) herein called “Calendar Year One”] to the next [for purposes of this Article 5.1(a) herein called “Calendar Year
Two”], then controllable Operating Expenses for the third calendar year [for purposes of this Article 5.1(a) herein called “Calendar Year Three”] may increase by four percent (4%), plus the difference between (1) the
actual increase from Calendar Year One to Calendar Year Two and (2) four percent (4%)) basis. Landlord warrants to Tenant that the Operating Expenses and Real Estate Taxes for calendar year 2010 will not exceed $9.75 per rentable
square foot or $17,737.69 per month. 
 (b) As used in this Lease, the term “Operating Expenses” means: 

(1) All costs, except for Real Estate Taxes (defined in Article 5.6, below), of management, operation, and maintenance of the Project,
including, without limitation, wages, salaries and compensation of employees; costs of consulting, accounting, legal, janitorial, maintenance, guard, and other services; management fees and costs (charged by Landlord, any affiliate of Landlord, or
any other entity managing the Project and determined at a rate consistent 

  
 6 

 
with prevailing market rates for comparable services and projects); that part of office rent or rental value of space in the Project used or furnished by Landlord to enhance, manage, operate, and
maintain the Project; electricity, water, waste disposal, and other utilities costs; materials and supplies costs; costs for the purchase, installation and maintenance of artwork in the Common Areas; costs of maintenance and repairs; costs of
capital replacements (as opposed to capital improvements); costs of insurance obtained with respect to the Project; subject to Article 5.1(c), below, depreciation on personal property and equipment; and any other costs, charges, and expenses that
under generally accepted accounting principles would be regarded as management, maintenance, and/or operating expenses; and 

(2) The cost of capital improvement(s) (including the cost of rental of equipment in lieu of a purchase), amortized on a straight-line
basis over the reasonable useful life thereof, as determined by Landlord, which capital improvement is made (i) for the purpose of reducing Operating Expenses, or (ii) for the purpose of complying with Laws becoming applicable to the
Premises or the Project, or any part thereof, after the Commencement Date, or (iii) for the general benefit or convenience of all tenants of the Project. 
 (c) The Operating Expenses will not include: 
  

	 	(1)	depreciation on the Project (other than depreciation on personal property, equipment, window coverings on exterior windows provided by Landlord and carpeting in public
corridors and Common Areas); 

  

	 	(2)	advertising costs, finders’ fees and real estate brokers’ commissions; 

 

	 	(3)	ground lease or mortgage payments; 

  

	 	(4)	capital items other than those referred to in Article 5.1(b)(2) above; 

  

	 	(5)	costs of replacements to personal property and equipment for which depreciation costs are included as an Operating Expense; 

 

	 	(6)	the cost of repairs due to casualty or condemnation that are reimbursed by third parties; 

 

	 	(7)	any cost due to Landlord’s breach of this Lease; 

  

	 	(8)	structural repairs to the Project, other than those necessitated by Tenant’s negligence or willful misconduct; 

 

	 	(9)	Expenses which are separately metered or calculated for the Premises or other leased area of the Project, which expenses will be billed separately to Tenant or a tenant
of such other leased area, as applicable; 

  

	 	(10)	Costs, fines or penalties incurred due to violation of any applicable law by (i) Landlord or (ii) another tenant of the Project if such tenant’s lease
permits Landlord to recover such costs, fines or penalties from such tenant; 

  

	 	(11)	Expenses incurred by Landlord in connection with leases of space within the Project other than the Premises or the improvement or renovation of such spaces, including
leasing commissions, attorneys’ fees arising from lease disputes and other specific costs with respect to such other leases; 

  

	 	(12)	Repairs or replacements to the extent that the cost of the same is recoverable by Landlord pursuant to construction warranties; 

 

	 	(13)	Interest on debt or retirement of debt; 

  
 7 

	 	(14)	Legal fees and disbursements relating to legal matters other than such fees and costs directly relating to Operating Expenses in connection with the Project;

  

	 	(15)	Landlord’s general overhead and any other expense not directly related to the Project or the Premises; 

 

	 	(16)	Costs incurred in connection with the initial construction or design of the Building or to correct structural defects in the Building; and 

 

	 	(17)	Stock options, bonuses and similar payments made to employees of Landlord. 

 (d) Tenant acknowledges that Landlord has not made any representation or given Tenant any assurances with respect to the Operating Expenses. 

5.2 Estimated Payments for Operating Expenses. During each calendar year or partial calendar year in the Term, for all calendar
months during which Tenant is paying Monthly Base Rent, in addition to Monthly Base Rent Tenant shall pay to Landlord on the first day of each month an amount equal to 1/12 of the product of Tenant’s Proportionate Share multiplied by the
Estimated Operating Expenses, defined below, for such calendar year. Estimated Operating Expenses for any calendar year means Landlord’s reasonable estimate of Operating Expenses for such calendar year and will be subject to revision according
to the further provisions of this Article 5.2 and Article 5.3, below. During any partial calendar year during the Term, Estimated Operating Expenses will be estimated on a full-year basis. During each December during the Term, or as soon after each
December as practicable, Landlord will give Tenant written notice of the Estimated Operating Expenses for the ensuing calendar year. On or before the first day of each month during the ensuing calendar year (or each month of the Term, if a partial
calendar year), Tenant shall pay to Landlord 1/12 of the product of Tenant’s Proportionate Share multiplied by the Estimated Operating Expenses for such calendar year; however, if such written notice is not given in December, Tenant shall
continue to make monthly payments on the basis of the prior year’s Estimated Operating Expenses until the month after such written notice is given, at which time Tenant shall commence making monthly payments based upon the revised Estimated
Operating Expenses. In the month Tenant first makes a payment based upon the revised Estimated Operating Expenses, Tenant shall pay to Landlord for each month which has elapsed since December the difference between the amount payable based upon the
revised Estimated Operating Expenses and the amount payable based upon the prior year’s Estimated Operating Expenses. If at any time or times it reasonably appears to Landlord that the actual Operating Expenses for any calendar year will vary
from the Estimated Operating Expenses for such calendar year, Landlord may, no more than once during any calendar year, by written notice to Tenant, revise the Estimated Operating Expenses for such calendar year, and subsequent payments by Tenant in
such calendar year will be based upon such revised Estimated Operating Expenses. 
 5.3 Annual Settlement of Operating
Expenses. Within one hundred twenty (120) days after the end of each calendar year during the Term or as soon after such one hundred twenty (120) day period as practicable, Landlord shall deliver to Tenant a statement of amounts payable
under Article 5.1, above, for such calendar year prepared and certified by Landlord or its agents. Such certified statement shall be final and binding upon Tenant unless Tenant objects to it in writing to Landlord within one hundred twenty
(120) days after it is given to Tenant, If such statement shows an amount owing by Tenant that is less than the estimated payments previously 

  
 8 

 
made by Tenant for such calendar year, the excess shall be held by Landlord and credited against the next payment of Rent; however, if the Term has ended and there is no Event of Default at the
end, Landlord shall refund the excess to Tenant. If such statement shows an amount owing by Tenant that is more than the estimated payments previously made by Tenant for such calendar year, Tenant shall pay the deficiency to Landlord within thirty
(30) days after the delivery of such statement. Provided no Event of Default exists under this Lease, Tenant shall have one hundred eighty (180) days after receipt of the statement to have an independent certified public accountant
acceptable to Landlord in all respects which is not working for Tenant on a contingency fee basis, complete an audit of Landlord’s books and records on Operating Expenses, during normal business hours upon reasonable advance written notice at
Landlord’s local office. Tenant shall deliver to Landlord a copy of the results of such audit within ten (10) days of receipt by Tenant. Tenant shall pay all costs and expenses of such audit; provided, however, that, if the result of such
audit establishes that Landlord must either credit or reimburse Tenant more than five percent (5%) of the estimated payments made by Tenant, Landlord shall reimburse Tenant for the costs and expenses of such audit, either by credit against the
next payment of Rent or refund as set forth above. In no event shall the reimbursement for the costs of such audit exceed $1,000.00. 
 5.4 Final Proration of Operating Expenses. If the Term ends on a day other than the last day of a calendar year, the amount of increase (if any) in the Operating Expenses payable by Tenant
applicable to the calendar year in which this Lease ends shall be calculated on the basis of the number of days of the Term falling within such calendar year, and Tenant’s obligation to pay any increase, or Landlord’s obligation to refund
any overage, shall survive the expiration or other termination of this Lease. 
 5.5 Occupancy Variance. Operating
Expenses which vary with occupancy and are attributable to any part of the Term in which less than 95% of the rentable area of the Building is occupied by tenants shall be adjusted by Landlord to the amount that Landlord reasonably believes
they would have been if 95% of the rentable area of the Building had been occupied. 
 5.6 Real Estate Taxes. 

(a) in addition to Monthly Base Rent, for all calendar months during which Tenant is paying Monthly Base Rent, Tenant shall pay
Tenant’s Proportionate Share of the Real Estate Taxes of the Project. If Real Estate Taxes are calculated for a partial calendar year, an appropriate proration shall be made. 

(b) As used in this Lease, the term “Real Estate Taxes” means all real estate taxes, personal property taxes and special
assessments (and water and sewer use charges, transit, transportation or carpool charges, fire protection charges and any other taxes, fees or charges which may be levied in whole or in part, in lieu of or in addition to real property taxes and
included in the tax bill for the Project, including, but not limited to, the downtown Seattle Metropolitan Improvement District assessments), which may be levied or assessed by any lawful authority against the land, buildings and other improvements
from time to time comprising the Project (including, but not limited to, the Office Unit and the Garage Unit) and any reasonable costs and expenses incurred by Landlord in any effort to protest or minimize real estate taxes or special assessments,
including, but not limited to, reasonable attorneys’ fees, appraiser fees and expert fees. 

  
 9 

 5.7 Estimated Payments of Real Estate Taxes. During each calendar year or partial
calendar year in the Term beginning five (5) months after the Commencement Date, in addition to Monthly Base Rent, Tenant shall pay to Landlord on the first day of each month an amount equal to 1/12 of the product of Tenant’s Proportionate
Share multiplied by the Estimated Real Estate Taxes, defined below, for such calendar year. The Estimated Real Estate Taxes for any calendar year means Landlord’s reasonable estimate of Real Estate Taxes for such calendar year and will be
subject to revisions according to the further provisions of this Article 5.7 and Article 5.8, below. During any partial calendar year during the Term, estimated Real Estate Taxes will be estimated on a full year basis. During each December during
the Term, or soon after each December as practicable, Landlord will give Tenant written notice of Estimated Real Estate Taxes for the ensuing calendar year. On or before the first day of each month during the ensuing calendar year (or each month of
the Term, if a partial calendar year), Tenant shall pay Landlord 1/12 of the product of Tenant’s Proportionate Share multiplied by the Estimated Real Estate Taxes for such calendar year; however, if such written notice is not given in December,
Tenant shall continue to make monthly payments on the basis of the prior year’s Estimated Real Estate Taxes until the month after such written notice is given, at which time, Tenant shall commence making monthly payments based upon a
revised Estimated Real Estate Taxes. In the month Tenant first makes a payment based upon a revised Estimated Real Estate Taxes, Tenant shall pay to Landlord for each month which has elapsed since December the difference between the amount payable
based upon the revised Estimated Real Estate Taxes and the amount payable based upon the prior year’s Estimated Real Estate Taxes. If at any time or times it reasonably appears to Landlord that the actual Real Estate Taxes for any calendar year
will vary from the Estimated Real Estate Taxes for such calendar year, Landlord may, no more than once during any calendar year, by written notice to Tenant, revise the Estimated Real Estate Taxes for such calendar year, and subsequent payments by
Tenant in such calendar year will be based upon the revised Estimated Real Estate Taxes. 
 5.8 Final Proration of Real
Estate Taxes. If the Term ends on a day other than the last day of a calendar year, the amount of increase (if any) in the Real Estate Taxes payable by Tenant applicable to the calendar year in which this Lease ends shall be calculated on the
basis of the number of days of the Term falling within such calendar year, and Tenant’s obligation to pay any increase, or Landlord’s obligation to refund any overage, shall survive the expiration or other termination of this Lease.

 5.9 Other Taxes. 
 (a) Tenant shall reimburse Landlord upon demand for any and all taxes payable by Landlord (other than as set forth in Article 5.9(b) below), whether or not now customary or within the contemplation of
Landlord and Tenant: 
  

	 	(1)	upon or measured by rent, including without limitation, any gross revenue tax, excise tax, or value added tax levied by the federal government or any other governmental
body with respect to the receipt of rent; and 

  

	 	(2)	upon this transaction or any document to which Tenant is a party creating or transferring an interest or an estate in the Premises. 

 

	 	(3)	upon a reassessment of the Project or Building by a taxing authority having jurisdiction over the same. 

  
 10 

 (b) Tenant will not be obligated to pay any inheritance tax, gift tax, franchise tax,
federal income tax (based on net income), profit tax, or capital levy imposed upon Landlord; provided, however, that Tenant shall pay any tax or excise on Rent or other amounts payable by Tenant to Landlord levied or assessed against Landlord on
account of Rent. 
 (c) Tenant shall pay promptly when due all taxes, charges or other governmental impositions assessed
against, levied upon or otherwise imposed upon or with respect to Tenant’s fixtures, furnishings, personal property, systems and equipment located in or exclusively serving the Premises, and any improvements made by Tenant to the Premises under
or pursuant to the provisions of this Lease. If any of such taxes are levied or assessed against Landlord or Landlord’s property or if the assessed value of the Premises is increased by the inclusion therein of a value placed upon such property
of Tenant, and if Landlord, after written notice to Tenant, pays the taxes based upon such increased assessment, which Landlord shall have the right to do regardless of the validity thereof, but only under proper protest if requested by Tenant,
Tenant shall, upon demand, repay to Landlord the taxes so levied against Landlord, or the portion of such taxes resulting from such increased in the assessment. Tenant shall pay any rent tax, sales tax, service tax, transfer tax, value added tax or
any other applicable tax on the Rent, utilities or services herein, the privilege of renting, using or occupying the Premises, or collecting Rent therefrom, or otherwise respecting this Lease or any other document entered into in connection
herewith. 
 5.10 Additional Rent. Amounts payable by Tenant pursuant to this Article 5 shall be payable as Additional
Rent, without deduction or offset. If Tenant fails to pay any amounts due according to this Article 5, Landlord shall have all the rights and remedies available to it under this Lease and/or applicable law. 

ARTICLE 6. INSURANCE. 
 6.1 Landlord’s Insurance. At all times during the Term, Landlord shall procure and keep in full force and effect the following insurance: 

 

	 	(a)	All-Risk property insurance insuring the Building and all improvements therein (except for those improvements described in 6.2 (a), its equipment and common area
furnishings, all in such amounts and with such deductibles as Landlord considers appropriate; 

  

	 	(b)	Commercial General Liability insurance with coverage for death and bodily injury, property damage or destruction (including loss of use), product and completed
operations liability, contractual liability, fire legal liability, personal injury liability and advertising injury liability; and 

  

	 	(c)	Such other insurance as Landlord reasonably determines from time to time. 

 

	 	6.2	Tenant’s Insurance. Tenant shall, at its sole cost and expense, keep in full force and effect the following insurance: 

 

	 	(a)	 All-Risk property insurance on Tenant’s Property for the full replacement value. Such policy shall contain an agreed amount endorsement in lieu of
a coinsurance 

  
 11 

	 	
clause. “Tenant’s Property” is defined to be personal property of Tenant and tenant improvements (including initial tenant improvements) located in or on the Premises, Common Areas
or Building, excluding that which may be insured by Landlord’s All-Risk property insurance as set forth in Article 6.1(a) above; 

  

	 	(b)	Commercial General Liability insurance insuring Tenant against any liability arising out of its use, occupancy or maintenance of the Premises or the business operated
by Tenant pursuant to the Lease. Such insurance shall be in the amount of at least $3,000,000 per occurrence (which amount may be increased by Landlord at any time after the initial Term if such increased amount is generally being required for
leases of Class A office space in the downtown Seattle market). Such policy shall name Landlord, Landlord’s wholly-owned subsidiaries, affiliates and agents and any mortgagees of Landlord as additional insureds; 

 

	 	(c)	Worker’s Compensation and Employer’s Liability insurance as required by state law; 

 

	 	(d)	Business Automobile Liability Insurance in the amount of $1,000,000 combined single limit; and 

 

	 	(e)	Any other form or forms of insurance or increased amounts of insurance as Landlord or any mortgagees of Landlord may reasonably require from time to time in form, in
amounts and for insurance risks against which a prudent tenant would protect itself. 

 All such policies shall be written in a
form and with an insurance company satisfactory to Landlord and any mortgagees of Landlord, and Tenant will use commercially reasonable efforts to cause such policies to provide that Landlord, and any mortgagees of Landlord, shall receive not less
than thirty (30) days prior written notice of any cancellation. Prior to or at the time that Tenant takes possession of the Premises, Tenant shall deliver to Landlord copies of policies or certificates evidencing the existence of the amounts
and forms of coverage satisfactory to Landlord. Tenant shall, within thirty (30) days prior to the expiration of such policies, furnish Landlord with renewals or “binders” thereof, or Landlord may order such insurance and charge the
cost thereof to Tenant as Additional Rent. 
 6.3 Forms of Policies. Tenant will use commercially reasonable efforts to
cause such policies to provide that they may not be terminated except after thirty (30) days’ prior written notice to Landlord nor may coverage be reduced except after ten (10) days’ prior written notice to Landlord. All
Commercial General Liability and All-Risk property policies maintained by Tenant shall be written as primary policies, not contributing with and not supplemental to the coverage that Landlord may carry. 

6.4 Waiver of Subrogation. Notwithstanding that any loss or damage may be due to or result from the negligence of either of the
parties hereto, Landlord and Tenant, for themselves and their respective insurers, each waive any and all rights to recover against the other; against any subsidiary or joint venture of such other party; against any other tenant or occupant of the
Project; or against the officers, directors, shareholders, partners, employees, agents, customers, invitees, or business visitors of such other party, of such other tenant or occupant of the Project, of any subsidiary or joint venture of such other
party, for any loss or damage to the property of such waiving party arising from any cause. 

  
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 6.5 Adequacy of Coverage. Landlord, its agent and employees make no representation
that the limits of liability specified to be carried by Tenant pursuant to this Article 6, are adequate to protect Tenant. If Tenant believes that any of such insurance coverage is inadequate, Tenant will obtain such additional insurance coverage as
Tenant deems adequate, at Tenant’s sole expense. 
 6.6 Certain Insurance Risks. Tenant shall not do or permit to be
done any act or thing upon the Premises or the project which would (a) jeopardize or be in conflict with fire insurance policies covering the Project or fixtures and property in the Project; (b) increase the rate of fire insurance
applicable to the Project to an amount higher than it otherwise would be for general office use of the Project; or (c) subject Landlord to any liability or responsibility for injury to any person or persons or to property by reason of any
business or operation being carried on upon the Premises. 
 ARTICLE 7. USE. 

The Premises shall be used only for the purposes designated in Article 1.1(x) and purposes incidental thereto and for no other purpose
without the prior written consent of Landlord, which consent may be withheld in Landlord’s sole discretion. Tenant shall use the Premises in a careful, safe, and proper manner. Tenant shall not use or permit the Premises to be used or occupied
for any purpose or in any manner that would (i) violate the certificate of occupancy in effect on the date hereof for the Premises or the Project or any part hereof, (ii) be prohibited by any applicable laws, (iii) interfere with or
impair the Project’s systems and equipment, or (iv) be for the use or purposes of demonstrations or picketing or for any improper, immoral, unlawful, pornographic, sexually explicit, or objectionable use or purpose. Tenant shall not cause,
maintain, or permit any nuisance in, on, or about the Premises. Tenant shall not commit waste or suffer or permit waste to be committed in, on, or about the Premises. Tenant shall conduct its business and control its employees, and agents in such a
manner as not to create any nuisance or interfere with, annoy, or disturb any other Tenant or occupant of the Project or Landlord in its operation of the Project. 
 ARTICLE 8. COMPLIANCE WITH LAWS AND THE DECLARATION. 
 Except as
otherwise specifically set forth in this Lease, Tenant, at its sole cost and expense, shall at all times comply with all Laws (including, without limitation, the ADA ( as hereinafter defined)), statutes, ordinances, and governmental rules and
regulations, including, without limitation, the requirements of any board of fire underwriters or other similar body, with any direction or occupancy certificate issued pursuant to any law by any public officer or officers, and with the provisions
of the Declaration and all other recorded documents affecting the Premises, insofar as they relate to the condition, use, or occupancy of the Premises, or improvements or alterations made by or for the Tenant. Notwithstanding anything in this Lease
to the contrary, unless such work is required by reason of Tenant’s use or occupancy of the Premises or by reason of the negligence or intentional misconduct of Tenant or Tenant’s employees, agents, contractors or invitees, Tenant will not
be required to make any structural, mechanical, plumbing or electrical improvements or replacements to the Building or the Premises. 

  
 13 

 Landlord represents and warrants to Tenant that, to Landlord’s knowledge, on the date
of delivery of possession of the Premises to Tenant, the Premises will be in compliance with the Declaration. Landlord further represents and warrants to Tenant that, to Landlord’s knowledge, on or before the date of delivery of possession of
the Premises to Tenant Landlord has not received any uncured written notice of the Premises being in violation of any Laws, ordinances, orders, rules, regulations, and other governmental requirements relating to the use, condition, and occupancy of
the Premises for the purposes allowed by this Lease including, without limitation, the certificate of occupancy for the Premises and Building, Environmental Laws (as defined in Article 9), the ADA and all rules, orders, regulations, and requirements
of the board of fire underwriters or insurance service office, or any similar body having jurisdiction over the Premises and the Building. For purposes of this Article 8, Landlord’s knowledge is limited to the actual knowledge of Richard
Dooley, Director — Field Asset Management, of Northwestern Investment Management Company, an affiliate of Landlord. 
 ARTICLE 9.
HAZARDOUS SUBSTANCES. 
 Tenant represents and warrants to Landlord and agrees that, at all times during the term of this
Lease and any extensions or renewals thereof, Tenant shall: 
  

	 	(i)	promptly comply at Tenant’s sole cost and expense, with all laws, orders, rules, regulations, certificates of occupancy, or other requirements, as the same now
exist or may hereafter be enacted, amended or promulgated, of any federal, municipal, state, county or other governmental or quasi-governmental authorities and/or any department or agency thereof relating to the manufacturing, processing,
distributing, using, producing, treating, storing (above or below ground level), disposing or allowing to be present (the “Environmental Activity”) of hazardous substances in or about the Premises (each, an “Environmental Law”,
and all of them, “Environmental Laws”). 

  

	 	(ii)	indemnify and hold Landlord, its agents and employees, harmless from any and all demands, claims, causes of action, penalties, liabilities, judgments, damages
(including consequential damages) and expenses including, without limitation, court costs and reasonable attorneys’ fees incurred by Landlord as a result of (a) Tenant’s failure or delay in properly complying with any Environmental
Law, or (b) any adverse effect which results from the Environmental Activity, whether of Tenant or Tenant’s subtenants or any of their respective agents, employees, contractors or invitees, with or without Tenant’s consent, which has
caused, either intentionally or unintentionally, such Environmental Activity. If any action or proceeding is brought against Landlord, its agents or employees by reason of any such claim, Tenant, upon notice from Landlord, will defend such claim at
Tenant’s expense with counsel reasonably satisfactory to Landlord. This indemnity obligation by Tenant of Landlord will survive the expiration or earlier termination of this Lease. 

 

	 	(iii)	 promptly disclose to Landlord by delivering, in the manner prescribed for delivery of notice in this Lease, a copy of any forms, submissions, notices,
reports, or other written documentation (each, a “Communication”) relating to any Environmental Activity by Tenant or any of Tenant’s subtenants or any of their

  
 14 

	 	
respective agents, employees, contractors or invitees, whether any such Communication is delivered to Tenant or any of its subtenants or is requested of Tenant or any of its subtenants by any
federal, municipal, state, county or other government or quasi-governmental authority and/or any department or agency thereof. 

  

	 	(iv)	in the event there is a release of any hazardous substance as a result of or in connection with any Environmental Activity by Tenant or any of Tenant’s subtenants
or any of their respective agents, employees, contractors or invitees, which must be remediated under any Environmental Law, Tenant shall immediately notify Landlord and Landlord shall perform the necessary remediation and Tenant shall reimburse
Landlord for all costs thereby incurred within fifteen (15) days after delivery of a written demand therefor from Landlord (which shall be accompanied by reasonable substantiation of such costs). In the alternative, Landlord shall have the
right to require Tenant, at its sole cost and expense, to perform the necessary remediation in accordance with a detailed plan of remediation which shall have been approved in advance in writing by Landlord. Landlord shall give notice to Tenant
within thirty (30) days after Landlord receives notice or obtains knowledge of the required remediation. The rights and obligations of Landlord and Tenant set forth in this subparagraph (iv) shall survive the expiration or earlier
termination of this Lease. 

  

	 	(v)	notwithstanding any other provisions of this Lease, allow Landlord, and any authorized representative of Landlord, access and the right to enter and inspect the
Premises for Environmental Activity, at any time deemed reasonable by Landlord, without prior notice to Tenant. 

 The term
“hazardous substances” as used in the Lease, is defined as follows: any element, compound, mixture, solution, particle or substance, which presents danger or potential danger of damage or injury to health, welfare or to the environment
including, but not limited to: (i) those substances which are inherently or potentially radioactive, explosive, ignitable, corrosive, reactive, carcinogenic or toxic and (ii) those substances which have been recognized as dangerous or
potentially dangerous to health, welfare or to the environment by any federal, municipal, state, county or other governmental or quasi-governmental authority and/or any department or agency thereof. 

Compliance by Tenant with any provision of this Article 9 shall not be deemed a waiver of any other provision of this Lease. Without limiting the
foregoing, Landlord’s consent to any Environmental Activity shall not relieve Tenant of its indemnity obligations under the terms hereof. 

ARTICLE 10. ASSIGNMENT AND SUBLETTING. 
 10.1 General. Tenant, for itself, its heirs, distributees, executors, administrators, legal representatives, successors, and assigns, covenants that it shall not assign, mortgage, or encumber this
Lease, nor sublease, nor permit the Premises or any part of the Premises to be used or occupied by others, without the prior written consent of Landlord in each instance, provided, that Landlord’s consent shall not be unreasonably withheld, and
provided, further, that 

  
 15 

 
there is no existing Event of Default under this Lease, nor has Landlord given notice to Tenant of any nonperformance by Tenant under this Lease which, with notice or the passage of time, would
constitute an Event of Default under this Lease. Any assignment or sublease in violation of this Article 10 will be voidable, at Landlord’s election. If this Lease is assigned, or if the Premises or any part of the Premises are subleased or
occupied by anyone other than Tenant, Landlord may, after any Event of Default by Tenant, collect rent from the assignee, subtenant, or occupant, and apply the net amount collected to Rent. No assignment, sublease, occupancy, or collection shall be
deemed (a) a waiver of the provisions of this Article 10; (b) the acceptance of the assignee, subtenant, or occupant as Tenant; or (c) a release of Tenant from the further performance by Tenant of covenants on the part of Tenant
contained in this Lease including, without limitation, the covenant to pay Rent. The consent by Landlord to an assignment or sublease will not be construed to relieve Tenant from obtaining Landlord’s prior written consent in writing to any
further assignment or sublease. No assignment or subletting shall relieve Tenant from its obligations hereunder, and Tenant shall continue to be liable as a principal, and not as a guarantor or surety, to the same extent as though no assignment or
sublease has been made. No permitted subtenant may assign or encumber its sublease or further sublease all or any portion of its subleased space, or otherwise permit the subleased space or any part of its subleased space to be used or occupied by
others, without Landlord’s prior written consent in each instance. As a condition to its consent required by this Article 10, Landlord may require Tenant, assignee or subtenant, at the sole cost and expense of such Tenant, assignee or
subtenant, to make such alterations to the Premises and the Project that may be necessary in order to comply with the ADA as it applies to the use, occupancy, or alteration of the Premises. in the alternative, Landlord, as a condition to its consent
required by this Article 10, may, in its sole discretion, choose to make such alterations on behalf of Tenant in which case Tenant, assignee or subtenant, as the case may be, shall deposit with Landlord 100% of Landlord’s reasonable estimate of
the cost of such alterations prior to commencement of construction of the same. 
 10.2 Recapture. Except for transfers
to a Permitted Transferee (as defined in Section 10.6), Landlord shall have the additional right to terminate this Lease if the Tenant seeks to assign this Lease or, in the case of a sublease, to sublet the entire Premises. The Landlord may
exercise such right to terminate or suspend by giving written notice to Tenant at any time on or before the date by which the Landlord notifies Tenant whether it consents to a proposed assignment or sublease. If Landlord exercises such right to
terminate or suspend, such termination or suspension shall become effective on the date set forth in the Landlord’s written notice, which shall in no event be sooner than fifteen (15) days prior to, or later than fifteen
(15) days following, the effective date of the proposed assignment or sublease as set forth in the Tenant’s request for Landlord’s consent; provided that if the Tenant has failed to request such consent, then the effective
date of any termination or suspension by Landlord pursuant to this Article 10.2 shall be on any date specified by Landlord which is reasonably determined to be the date which would have been necessary to get the space ready for possession
by the Tenant’s proposed subtenant or assignee. Upon any termination of this Lease pursuant to this Article 10.2, Tenant shall have no further obligation under this Lease with respect to the Premises for the period following the
termination; provided that the Tenant shall remain liable to Landlord for obligations which arose prior to the termination. Upon any suspension of this Lease pursuant to this Article 10.2, whether with respect to all or any portion of the Premises,
Tenant shall have no obligations to Landlord with respect to all or such portion of the Premises, as the case may be, for the period of such suspension but shall remain liable for all obligations which arose prior to the effective date of the
suspension, and shall again become liable for all obligations arising after the 

  
 16 

 
expiration of the suspension. Notwithstanding the foregoing, if Landlord shall exercise its right to terminate or suspend this Lease by giving written notice pursuant to this Article 10.2,
the Tenant may rescind its request for an assignment, or subletting, by giving Landlord written notice of such decision within fifteen (15) days of Landlord’s written notice of termination or suspension, and upon such rescission the
termination or suspension of this Lease by Landlord shall be null and void. 
 10.3 Submission of Information. If
Tenant requests Landlord’s consent to a specific assignment or subletting, Tenant shall submit in writing to Landlord at least thirty (30) days prior to the effective date of the proposed assignment or sublease (a) the name and
address of the proposed assignee or subtenant; (b) the business terms of the proposed assignment or sublease; (c) reasonably satisfactory information as to the nature and character of the business of the proposed assignee or subtenant, and as
to the nature of its proposed use of the space; (d) banking, financial, or other credit information reasonably sufficient to enable Landlord to determine the financial responsibility and character of the proposed assignee or subtenant; (e) the
proposed form of assignment or sublease for Landlord’s reasonable approval, which approval may include requiring Tenant and the assignee or subtenant, as the case may be, including additional terms and conditions in said form of
assignment or sublease, and (f) any other information which Landlord may reasonably deem relevant. 
 10.4
Payments to Landlord. If Landlord consents to a proposed assignment or sublease, then Landlord shall have the right to require Tenant to pay to Landlord one half of (a) any rent or other consideration paid to Tenant by any proposed
transferee that (after deducting the costs of Tenant, if any, in effecting the assignment or sublease, including reasonable alterations costs, commissions and legal fees) is in excess of the Rent allocable to the transferred space then
being paid by Tenant to Landlord pursuant to this Lease; (b) any other profit or gain (after deducting any necessary expenses incurred) realized by Tenant from any such sublease or assignment; and (c) Landlord’s reasonable
attorneys’ fees and costs incurred in connection with negotiation, review, and processing of the transfer. All such sums payable will be payable to Landlord at the time the next payment of Monthly Base Rent is due. 

10.5 Prohibited Transfers. The transfer of a majority of the issued and outstanding capital stock of any corporate tenant or
subtenant of this Lease, or a majority of the total interest in any partnership or limited liability company tenant or subtenant, however accomplished, and whether in a single transaction or in a series of related or unrelated transactions,
will be deemed an assignment of this Lease or of such sublease requiring Landlord’s consent in each instance. For purposes of this Article 10, the transfer of outstanding capital stock of any corporate tenant will not include any sale of
such stock by persons other than those deemed “insiders” within the meaning of the Securities Exchange Act of 1934, as amended, effected through the “over-the-counter market” or through any recognized stock exchange.

 10.6 Permitted Transfer. Notwithstanding anything to the contrary contained in this Article 10,
Landlord’s consent shall not be required for an assignment or other transfer of Tenant’s interest under this Lease or a sublease of the entire Premises to an affiliate of Tenant provided that (i) Tenant shall notify Landlord in
writing of the proposed transaction and the identity of the proposed assignee or sublessee, (ii) at the time of such proposed assignment, transfer or sublease, there shall be no Event of Default under this Lease, (iii) any proposed
assignee or transferee shall agree in a writing reasonably acceptable to Landlord that it will assume and be 

  
 17 

 
bound by the terms of this Lease, (iv) there shall be no change in use of the Premises, (v) any proposed assignee or transferee shall have a net worth reasonably adequate to perform
the obligations of the Tenant under this Lease as determined by Landlord in its commercially reasonable business judgment, (vi) Tenant agrees to make such alterations to the Premises and the Project that may be necessary in order to comply with
the ADA as it applies to the use, occupancy, or alteration of the Premises by the assignee or subtenant, and (vii) Tenant remains primarily obligated as a principal and not as a surety to perform all obligations under this Lease. As used
herein, an “affiliate” shall mean an entity which directly or indirectly controls or is controlled by or is under common control with Tenant. “Controls”, “controlled by” or “under common control” means with
regard to a corporation ownership of at least 50% of the issued and outstanding stock or with regard to a corporation and any other entity, ownership or at least 50% of the equity, interest, voting or other decision-making power. For the purposes of
this Lease, any affiliate of Tenant to which Tenant may assign the Lease or sublease the Premises under this Section 10.6, will be a “Permitted Transferee”. 

10.7 Condition. It is an express condition of any permitted assignment or sublease that there shall be no Event of Default under
this Lease at the time Tenant provides Landlord its request for written consent to such assignment or sublease. 

10.8 Remedies. If Tenant believes that Landlord has unreasonably withheld its consent pursuant to this Article 10, Tenant’s
sole remedy will be to seek a declaratory judgment that Landlord has unreasonably withheld its consent or an order of specific performance or mandatory injunction of Landlord’s agreement to give its consent; however, Tenant may recover damages
if a court of competent jurisdiction determines that Landlord has acted arbitrarily and capriciously in evaluating the proposed assignee’s or subtenant’s creditworthiness, identity, and business character and the proposed use and
lawfulness of the use. 
 10.9 Effect on Options. Except in the event of a transfer to a Permitted Transferee, any
renewal, expansion, right of opportunity or similar option(s) granted to Tenant in this Lease or in any amendments to this Lease, to the extent that such option(s) have not been exercised, shall terminate and be voided in the event this Lease is
assigned or the entire Premises are sublet, or Tenant’s interest in the Premises are otherwise transferred, unless otherwise agreed to by Landlord. 
 ARTICLE 11. RULES AND REGULATIONS. 
 Tenant and its employees,
agents, licensees, and visitors shall at all times observe faithfully, and comply strictly with, the Rules and Regulations set forth in Exhibit E. Landlord may from time to time reasonably amend, delete, or modify existing rules and regulations, or
adopt reasonable new rules and regulations for the use, safety, cleanliness, and care of the Premises, the Building, and the Project, and the comfort, quiet, and convenience of occupants of the Project. Modifications or additions to the Rules and
Regulations will be effective upon thirty (30) days’ prior written notice to Tenant from Landlord. In the event of any breach of any of the Rules or Regulations or any amendments or additions thereto, Landlord shall have all remedies that
this Lease provides for an Event of Default by Tenant, and shall in addition have any remedies available at law or in equity, including the right to enjoin any breach of such Rules and Regulations. Landlord shall not be liable to Tenant for
violation of such Rules and Regulations by any other person. In the event of any conflict between the provisions of this Lease and the Rules and Regulations, the provisions of this Lease shall govern. 

  
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 ARTICLE 12. COMMON AREAS. 

As used in this Lease, the term “Common Areas” means, without limitation, the parking area or parking facility, hallways,
entryways, stairs, elevators, driveways, sidewalks, walkways, terraces, docks, loading areas, restrooms, trash facilities, and all other areas and facilities in the Project that are provided and designated from time to time by Landlord for the
general nonexclusive use and convenience of Tenant with Landlord and their guests, invitees, employees, licensees, or visitors. Upon advance notice to Tenant, except in the event of an emergency, and without any liability to Tenant in any respect,
provided Landlord will take no action in such a manner as to materially impair or adversely affect Tenant’s substantial benefit and enjoyment of the Premises, Landlord will have the right to: 

 

	 	(a)	Close off any of the Common Areas to whatever extent required in the reasonable opinion of Landlord to prevent a dedication of any of the Common Areas or the accrual of
any rights by any person or the public to the Common Areas; 

  

	 	(b)	Temporarily close any of the Common Areas for maintenance, alteration, or improvement purposes; and 

 

	 	(c)	Change the size, use, shape, or nature of any such Common Areas, including expanding the Building or other Buildings to cover a portion of the Common Areas, converting
Common Areas to a portion of the Building or other Buildings, altering the Common Areas in order to comply with the ADA, or converting any portion of the Building (excluding the Premises) or other Buildings to Common Areas. 

ARTICLE 13. LANDLORD’S SERVICES. 
 13.1 Landlord’s Repair and Maintenance. Subject to Article 5 above, Landlord shall maintain the Common Areas of the Project, including lobbies, stairs, elevators, corridors, and restrooms, the
windows in the Building, the mechanical, plumbing and electrical equipment serving the Building and the Premises, and the structural elements of the Building in reasonably good order and condition. 

13.2 Landlord’s Other Services. 
 (a) Subject to Article 5 above, Landlord shall furnish the Premises with the following services: (1) electricity for lighting, (2) electricity for the operation of low-wattage office machines
(such as desktop computers, calculators, copiers and servers), all of the foregoing not to exceed four (4) watts per rentable square foot, although Landlord will not be obligated to furnish more power to the Premises than is proportionally
allocated to the Premises under the Building design; (3) heat and air conditioning reasonably required for the comfortable occupation of the Premises during business hours; (4) access and elevator service; (5) hot and cold water for
public and private lavatory, drinking and office cleaning use; (6) lighting replacement during business hours (for Building standard lights, but not for any special Tenant lights, which will be replaced at Tenant’s sole cost and expense);
(7) restroom supplies; (8) window washing with reasonable 

  
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frequency, as determined by Landlord; (9) cleaning service five (5) days per week in accordance with standards customary for Class A buildings in the Building’s immediate area
in downtown Seattle; and (10) courtesy patrols for the Project in accordance with standards customary for Class A buildings in the Building’s immediate area in downtown Seattle. Landlord may, but will not be obligated to provide, any
such services (except electricity for lighting, electricity for low-wattage office machines, access and elevator service) on holidays. 
 (b) Tenant will have the right to purchase for use during business hours and non-business hours the services described in Article 13.2(a)(1) and (2), above, in excess of the amounts Landlord has agreed to
furnish, together with costs to cool Tenant’s server room, so long as (1) Tenant gives Landlord reasonable prior written notice of its desire to do so; (2) the excess services are reasonably available to Landlord and to the Premises;
and (3) Tenant pays as Additional Rent (at the time the next payment of Monthly Base Rent is due) the cost of such excess service from time to time charged by Landlord; subject to the procedures established by Landlord from time to time for
providing such additional or excess services. The hourly charge for HVAC is currently $25 and may be adjusted with adjustments in the cost of utilities. 
 (c) The term “business hours” means 8:00 a.m. to 6:00 p.m. on Monday through Friday, except State of Washington and federal holidays. 

13.3 Tenant’s Costs. Whenever equipment or lighting (other than building standard lights) is used in the Premises by Tenant
and such equipment or lighting affects the temperature otherwise normally maintained by the design of the Building’s air conditioning system, Landlord shall have the right, after prior written notice to Tenant, to install supplementary air
conditioning facilities in the Premises or otherwise modify the ventilating and air conditioning system serving the Premises; and the cost of such facilities, modifications, and additional service shall be paid by Tenant as Additional Rent within
thirty (30) days of receipt of an invoice. Should Tenant desire any additional service beyond that described in Article 13.2, above, Landlord may, at Landlord’s option upon reasonable advance notice from Tenant to Landlord, (i) refuse
to consent to such services or (ii) consent to such services upon such conditions as Landlord elects (including the requirements that submeters be installed at Tenant’s expense, that Tenant pay directly to the provider of such service (in
the case of submetered services) or to Landlord, as Additional Rent within thirty (30) days of receipt of an invoice, Landlord’s additional expenses resulting therefrom, and that Tenant pay the cost of all alterations or additions
made to accommodate such excess use, including the cost of a submeter and installation of the same). 
 13.4
Limitation on Liability. Landlord shall not be in default under this Lease or be liable to Tenant or any other person for direct or consequential damage, or otherwise, for any failure to supply any heat, air conditioning, elevator, cleaning,
lighting, security; for surges or interruptions of electricity; or for other services which Landlord has agreed to supply during any period provided that Landlord uses commercially reasonable efforts to supply such services. Landlord will use
commercially reasonable efforts to remedy any interruption in the furnishing of such services. Landlord reserves the right temporarily to discontinue such services at such times as may be necessary by reason of accident, repairs, alterations or
improvements, strikes, lockouts, riots, acts of God, governmental preemption in connection with a national or local emergency, any rule, order, or regulation of any governmental agency, conditions of supply and demand that make any product
unavailable, Landlord’s compliance with any mandatory governmental energy conservation or environmental protection program, or any voluntary 

  
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governmental energy conservation program at the request of or with consent or acquiescence of Tenant, mandatory or prohibitive injunction issued in connection with the enforcement of the ADA,
or any other event or condition beyond the control of Landlord. Landlord shall not be liable to Tenant or any other person or entity for direct or consequential damages resulting from the admission to or exclusion from the Building or Project of any
person. In the event of invasion, mob, riot, public excitement, strikes, lockouts, or other circumstances rendering such action advisable in Landlord’s sole opinion, Landlord shall have the right to prevent access to the Building or Project
during the continuance of the same by such means as Landlord, in its sole discretion, may deem appropriate, including without limitation locking doors and closing parking areas and other Common Areas. Landlord shall not be liable for damages to
person or property or for injury to, or interruption of, business for any discontinuance permitted under this Article 13, nor will such discontinuance in any way be construed as an eviction of Tenant or cause an abatement of Rent or operate to
release Tenant from any of Tenant’s obligations under this Lease. 
 ARTICLE 14. TENANTS CARE OF THE PREMISES.

 Except for items Landlord is required to maintain under this Lease, Tenant shall maintain the Premises (including, but
not limited to, Tenant’s equipment, personal property and trade fixtures located in the Premises) in the same condition as at the time they were delivered to Tenant (reasonable wear and tear excluded). Tenant shall immediately advise Landlord
of any damage to the Premises, Building or the Project of which Tenant has knowledge. All damage to the Premises, Building or the Project, or the fixtures, appurtenances, and equipment located therein caused by Tenant, its agents, employees, or
invitees shall, at Landlord’s option, either (i) be repaired, restored, or replaced by Landlord at the expense of Tenant, which expense (plus ten percent (10%) of such expense for Landlord’s overhead) shall be collectible by
Landlord as Additional Rent and shall be payable by Tenant not more than ten (10) days after delivery to Tenant of a statement for the same; or (ii) be required to be repaired by Tenant, at Tenant’s sole cost and expense, to at least
the condition the same were in prior to such damage. 
 Tenant shall (A) adopt and enforce good housekeeping practices,
ventilation and vigilant moisture control within the Premises (particularly in kitchen areas, janitorial closets, bathrooms, in and around water fountains and other plumbing facilities and fixtures, break rooms, in and around outside walls, and in
and around HVAC systems and associated drains) for the prevention of mold (such measures, “Mold Prevention Practices”), and (B) regularly monitor the Premises for the presence of mold and conditions that reasonably can be
expected to give rise to or be attributed to mold or fungus including, but not limited to, observed or suspected instances of water damage, condensation, seepage, leaks or any other water collection or penetration (from any source, internal or
external), mold growth, mildew, repeated complaints of respiratory ailments or eye irritation by Tenant’s employees or any other occupants of the Premises, or any notice from a governmental agency of complaints regarding the indoor air quality
at the Premises (the “Mold Conditions”); and (C) immediately notify Landlord in writing if it observes, suspects, has reason to believe or knows of mold or Mold Conditions in, at or about the Premises or a surrounding area. In the
event of suspected mold or Mold Conditions in, at or about the Premises and surrounding areas, Landlord may cause an inspection of the Premises to be conducted, during such time as Landlord may designate, to determine if mold or Mold Conditions are
present in, at or about the Premises. 

  
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 ARTICLE 15. ALTERATIONS. 

15.1 General. 
 (a) Except as otherwise specifically set forth in this Lease, Tenant shall not make or allow to be made any alterations, additions, or improvements to or of the Premises, the Building or the Project or
any part thereof, or attach any fixtures or equipment thereto after the Lease Date, without first obtaining Landlord’s prior written consent which consent will not be unreasonably withheld; provided, however, that Landlord may withhold its
consent, in its sole and absolute discretion, to any alteration, addition or improvement to the structural portions of the Premises or the HVAC, plumbing or electrical systems of the Building. All such alterations, additions and improvements
consented to by Landlord shall be performed by contractors approved by Landlord and subject to reasonable conditions specified by Landlord. 
 (b) Subject to Tenant’s rights in Article 17, below, all alterations, additions, fixtures, and improvements, whether temporary or permanent in character, made in or upon the Premises either by Tenant
or Landlord, shall immediately become Landlord’s property, and at the end of the Term shall remain on the Premises without compensation to Tenant, unless when consenting to such alterations, additions, fixtures, or improvements, Landlord has
advised Tenant in writing that such alterations, additions, fixtures, or improvements must be removed at the expiration or other termination of this Lease. 
 15.2 Free-Standing Partitions. Tenant shall have the right to install free-standing work station partitions, without Landlord’s prior written consent, so long as no building or other
governmental permit is required for their installation or relocation; however, if a permit is required, Landlord shall not unreasonably withhold its consent to such relocation or installation. The free-standing work station partitions for which
Tenant pays shall be part of Tenant’s trade fixtures for all purposes under this Lease. All other partitions installed in the Premises are and shall be Landlord’s property for all purposes under this Lease. 

15.3 Removal. If, at the time it consents to the alterations, Landlord has required Tenant to remove any or all alterations,
additions, fixtures, and improvements that are made in or upon the Premises pursuant to this Article 15 prior to the Expiration Date, Tenant shall remove such alterations, additions, fixtures, and improvements at Tenant’s sole cost and shall
restore the Premises to the condition in which they were before such alterations, additions, fixtures, improvements, and additions were made, reasonable wear and tear excepted. 

15.4 ADA Compliance. Tenant, with respect to the Premises and the Common Areas, at Tenant’s sole cost and expense (but
subject to Landlord’s prior written approval, which approval shall not be unreasonably withheld or delayed), shall comply with the requirements imposed by the Americans with Disabilities Act (42 U.S.C. Article 12101 et seq.) (the
“ADA”) and any regulations promulgated pursuant thereto effective from time to time during the Term (“ADA Requirements”) if: 
  

	 	(a)	the requirement for such alteration or addition arises as a result of: 

  

	 	(1)	Any alteration or addition made by or on behalf of Tenant after the Lease Date; 

  
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	 	(2)	Any violation by Tenant of any ADA Requirements; 

  

	 	(3)	A special use of the Premises or any part thereof by Tenant or any assignee or subtenant of Tenant (including but not limited to use for a facility which constitutes,
or if open to the public generally would constitute, a “place of public accommodation” under the ADA Requirements); or 

  

	 	(4)	The special needs of the employee(s) of Tenant or any assignee or subtenant of Tenant. 

 

	 	(b)	The ADA Requirements would otherwise make Tenant rather than Landlord primarily responsible for making such alteration or addition. 

15.5 Telecommunication Lines. No telecommunication or computer lines shall be installed within or without the Premises without
Landlord’s prior written consent. Landlord disclaims any representations, warranties or understandings concerning Landlord’s Building computer systems, or the capacity, design or suitability of Landlord’s riser lines or related
equipment. If there is, or will be, more than one tenant on any floor, at any time, Landlord may allocate, and periodically reallocate, connections to the terminal block based on the proportion of square feet each tenant occupies on such floor, or
the type of business operations or requirements of such tenants, in Landlord’s reasonable discretion. Landlord may arrange for an independent contractor to review Tenant’s requests for approval to install any telecommunication or computer
lines, monitor or supervise Tenant’s installation, connection and disconnection of any such lines, and provide other such services, or Landlord may provide the same. In each case, all such work shall be performed in accordance with this Article
15. At the expiration or earlier termination of this Lease, Tenant, at its sole cost, shall remove all wires, cable or other computer or telecommunication lines or systems installed by or for Tenant, and Tenant shall restore the Premises and Project
to the condition existing prior to Tenant’s installation. 
 ARTICLE 16. MECHANICS’ LIENS. 

Tenant shall pay or cause to be paid all costs and charges for work (a) done by Tenant or caused to be done by Tenant, in or to the
Premises, and (b) for all materials furnished for or in connection with such work. Tenant shall indemnify Landlord against and hold Landlord, the Premises, and the Project free, clear, and harmless of and from all mechanics’ liens and
claims of liens, and all other liabilities, liens, claims, and demands on account of such work by or on behalf of Tenant, other than work performed by Landlord pursuant to this Lease. If any such lien, at any time, is filed against the Premises or
any part of the Project, Tenant shall cause such lien to be discharged of record within thirty (30) days after the filing of such lien. If a final judgment establishing the validity or existence of a lien for any amount is entered, Tenant shall
pay and satisfy the same at once. If Tenant fails to pay any charge, cost or expense for which a mechanics’ lien has been filed, Landlord may, at its option, pay such charge and related costs and interest, and the amount so paid, together with
reasonable attorneys’ fees incurred in connection with such lien, shall be immediately due from Tenant to Landlord as Additional Rent. Nothing contained in this Lease will be deemed the consent or agreement of Landlord to subject
Landlord’s interest in the Project to liability under any mechanics’ or other lien law. If Tenant receives written notice that a lien has been or is about to be filed against the Premises or the Project, or that any action affecting title
to the Project has been commenced on account of work done by or for or materials furnished to or for Tenant, it shall immediately give Landlord written notice of such notice. At least fifteen (15) days prior to the commencement of any work
(including 

  
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but not limited to any maintenance, repairs, alterations, additions, improvements, or installations) in or to the Premises, by or for Tenant, Tenant shall give Landlord (I) written notice of
the proposed work and the names and addresses of the persons supplying labor and materials for the proposed work and (ii) two (2) copies of Tenant’s plans and specifications for such work. Landlord will have the right to post notices
of nonresponsibility or similar written notices on the Premises in order to protect the Premises against any such liens. 
 ARTICLE 17.
END OF TERM. 
 On the Expiration Date or earlier termination of this Lease, Tenant shall promptly quit and surrender the
Premises broom-clean, in good order and repair, ordinary wear and tear and damage from casualty or condemnation excepted. Tenant shall remove from the Premises any trade fixtures, equipment, and movable furniture placed in the Premises by Tenant,
whether or not such trade fixtures or equipment are fastened to the Building. Tenant shall not remove any trade fixtures or equipment without Landlord’s prior written consent if such fixtures or equipment are used in the operation of the
Building (other than the Premises), or if the removal of such fixtures or equipment may result in impairing the structural strength of the Building. Whether or not there is an Event of Default, Tenant shall remove such alterations, additions,
improvements, trade fixtures, equipment, and furniture as Landlord has requested in accordance with Article 15, above. Tenant shall fully repair any damage occasioned by the removal of any trade fixtures, equipment, furniture, alterations,
additions, and improvements. All trade fixtures, equipment, furniture, inventory, effects, alterations, additions, and improvements on the Premises after the end of the Term shall be deemed conclusively to have been abandoned and may be
appropriated, sold, stored, destroyed, or otherwise disposed of by Landlord without written notice to Tenant or any other person and without obligation to account for them. Tenant shall pay Landlord for all expenses incurred in connection with the
removal or storage of such property, including but not limited to the cost of repairing any damage to the Building or Premises caused by the removal of such property. Tenant’s obligation to observe and perform this covenant will survive the
expiration or other termination of this Lease. 
 ARTICLE 18. EMINENT DOMAIN. 

If all of the Premises are taken by exercise of the power of eminent domain (or conveyed by Landlord in lieu of such exercise) this Lease
shall terminate on a date (the “Termination Date”) which is the earlier of the date upon which the condemning authority takes possession of the Premises or the date on which title to the Premises is vested in the condemning authority. If
any portion of the Premises is so taken and such portion materially and adversely affects Tenant’s use of the Premises for their intended purposes under this Lease, Tenant will have the right to cancel this Lease by written notice to Landlord
given within twenty (20) days after the Termination Date, which termination shall be effective when such notice is given by Tenant. If Tenant does not cancel this Lease according to the preceding sentence, the Monthly Base Rent shall be abated
in the proportion of the rentable area of the Premises so taken to the rentable area of the Premises immediately before such taking, and Tenant’s Proportionate Share shall be appropriately recalculated. If twenty-five percent (25%) or more
of the Building or the Project is so taken, Landlord may cancel this Lease by written notice to Tenant given within thirty (30) days after the Termination Date, which termination shall be effective when such notice is given by Landlord. In the
event of any such taking, the entire award shall be paid to Landlord, and Tenant will have no right or claim to any part of such award; however, Tenant shall have the right to assert a claim against the condemning authority in a separate action, so
long as Landlord’s award is not otherwise reduced, for Tenant’s moving expenses and leasehold improvements owned by Tenant. 

  
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 ARTICLE 19. DAMAGE AND DESTRUCTION. 

(a) If the Premises or the Building are damaged by fire or other insured casualty, Landlord shall give Tenant written
notice of the time which will be needed to repair such damage, as determined by Landlord in its reasonable discretion, and the election (if any) which Landlord has made according to this Article 19. Such notice will be given before the sixtieth
(60th) day (the “Notice Date”) after Landlord
first learns of the fire or other insured casualty. 
 (b) If the Premises or the Building are damaged by fire or other insured
casualty to an extent which may be repaired within one (1) year after the Notice Date, as reasonably determined by Landlord, Landlord shall promptly begin to repair the damage after the Notice Date, to the extent set forth in subsection
(f) of this Article 19, and Landlord will diligently pursue the completion of such repair. In that event this Lease will continue in full force and effect except that Monthly Base Rent shall be abated on a pro rata basis from the date of the
damage until the date of the completion of such repairs (the “Repair Period”) based on the proportion of the rentable area of the Premises Tenant is unable to use during the Repair Period. 

(c) if the Premises or the Building are damaged by fire or other insured casualty to an extent that they may not be repaired within one
(1) year after the Notice Date, as reasonably determined by Landlord, then (1) Landlord may cancel this Lease as of the date of such damage by written notice given to Tenant on or before the Notice Date or (2) Tenant may cancel this
Lease as of the date of such damage by written notice given to Landlord within thirty (30) days after Landlord’s delivery of a written notice that the repairs cannot be made within such one (1) year period. If neither Landlord nor
Tenant so elects to cancel this Lease, Landlord shall diligently proceed to repair the Building and Premises, to the extent set forth in subsection (f) of this Article 19, and Monthly Base Rent shall be abated on a pro rata basis during the
Repair Period based on the proportion of the rentable area of the Premises Tenant is unable to use during the Repair Period. 

(d) Notwithstanding the provisions of Articles 19(a), (b), and (c), above, if the Premises or the Building are damaged by uninsured
casualty, or if the proceeds of insurance are insufficient to pay for the repair of any damage to the Premises or the Building, Landlord shall have the option to repair such damage or cancel this Lease as of the date of such casualty by written
notice to Tenant on or before the Notice Date. 
 (e) If any such damage by fire or other casualty is the result of the willful
conduct or negligence or failure to act of Tenant, its agents, contractors, employees, or invitees, there will be no abatement of Monthly Base Rent as otherwise provided for in this Article 19. 

(f) Notwithstanding anything contained herein to the contrary, Landlord’s obligations for repair of damage to the Premises shall
exclude the Tenant’s Property (as such term is defined in Article 6.2(a) of this Lease). Tenant shall be solely responsible for the repair, replacement and restoration of Tenant’s Property and shall promptly commence such repair and
diligently pursue the same to completion unless this Lease is terminated as provided in this Article 19. 

  
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 (g) Notwithstanding anything to the contrary contained in this Article 19, Landlord shall
not have any obligation whatsoever to repair, reconstruct or restore the Building, Common Areas and/or the Premises when the damage occurs during the last twenty four (24) months of the Term of this Lease or any extension thereof. If Landlord
elects to not repair any damage during the last twenty four (24) months of the Lease Term, Landlord shall so notify Tenant in writing within sixty (60) days after the date of such damage, and, thereupon, Tenant may terminate this Lease
upon not less than thirty (30) days’ prior written notice to Landlord. 
 (h) Landlord and Tenant hereby waive the
provisions of any statutes or court decisions which relate to the abatement or termination of leases when leased property is damaged or destroyed and agree that such event shall be exclusively governed by the terms of this Lease. 

(i) Notwithstanding anything in this Article 19 to the contrary, if the repairs required to the Premises or the Building are not made
within one (1) year after the Notice Date, Tenant may terminate this Lease as of the date of such damage by written notice given to Landlord at any time thereafter. 
 ARTICLE 20. SUBORDINATION. 
 This Lease and Tenant’s rights
under this Lease are subject and subordinate to the Declaration, and any mortgage, indenture, deed of trust, or other lien encumbrance (each a “superior lien”), together with any renewals, extensions, modifications, consolidations, and
replacements of such superior lien, now or after the date affecting or placed, charged, or enforced against the Land, the Building, or all or any portion of the Project or any interest of Landlord in them or Landlord’s interest in this Lease
and the leasehold estate created by this Lease (except to the extent any such instrument expressly provides that this Lease is superior to such instrument); provided, however, that as a condition to such subordination in each case, a
subordination, non-disturbance and attornment agreement in the form attached hereto as Exhibit J, or such other form as the holder of a superior lien may reasonably request, is executed and delivered by the holder of the superior lien. 

ARTICLE 21. RIGHTS RESERVED BY LANDLORD. 
 21.1 Access. Landlord, its agents, employees, and contractors may enter the Premises at any time in response to an emergency and at reasonable hours to: 

 

	 	(a)	Inspect the Premises; 

  

	 	(b)	Exhibit the Premises to prospective purchasers, lenders, or, during the last twelve (12) months of the Term, to prospective tenants; 

 

	 	(c)	Determine whether Tenant is complying with all its obligations in this Lease; 

 

	 	(d)	Supply cleaning service and any other service to be provided by Landlord to Tenant according to this Lease; 

 

	 	(e)	Post written notices of nonresponsibility or similar notices; or 

  

	 	(f)	Make repairs required of Landlord under the terms of this Lease or make repairs to any adjoining space or utility services or make repairs, alterations, or improvements
to any other portion of the Building; however, all such work shall be done as promptly as reasonably possible and so as to cause as lithe interference to Tenant as reasonably possible. 

  
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 Except for the intentional misconduct or grossly negligent acts of Landlord or Landlord’s agents or
employees, Tenant, pursuant to this Article 21, waives any claim against Landlord, its agents, employees, or contractors for damages for any injury or inconvenience to or interference with Tenant’s business, any loss of occupancy or quiet
enjoyment of the Premises, or any other loss occasioned by any entry in accordance with this Article 21. Landlord shall at all times have and retain a key with which to unlock all of the doors in, on, or about the Premises (excluding Tenant’s
vaults, safes, and similar areas designated in writing by Tenant in advance). Landlord shall have the right to use any and all means Landlord may deem proper to open doors in and to the Premises in an emergency in order to obtain entry to the
Premises, provided that Landlord will promptly repair any damages caused by any forced entry. Any entry to the Premises by Landlord in accordance with this Article 21 will not be construed or deemed to be a forcible or unlawful entry into or a
detainer of the Premises or an eviction, actual or constructive, of Tenant from the Premises or any portion of the Premises, nor shall any such entry entitle Tenant to damages or an abatement of Monthly Base Rent, Additional Rent, or other charges
that this Lease requires Tenant to pay. 
 21.2 General Matters. Except to the extent expressly limited herein, Landlord
reserves full rights to control the Project (which rights may be exercised without subjecting Landlord to claims for constructive eviction, abatement of Rent, damages or other claims of any kind), including more particularly, but without limitation,
the right to: (i) change the name or street address of the Project or designation of the Premises; (ii) install and maintain signs on the exterior and interior of the Building or Project, and grant any other person the right to do so;
(iii) retain at all times, and use in appropriate instances, keys to all doors within and into the Premises; (iv) grant to any person the right to conduct any business or render any service at the Building or Project, whether or not the
same are similar to the use permitted Tenant by this Lease; (v) grant any person the right to use separate security personnel and systems respecting access to their premises; (vi) have access for Landlord and other tenants of the Building
to any mail chutes located in the Premises according to the rules of the United States Postal Service (and to install or remove such chutes); and (vii) in case of fire, invasion, insurrection, riot, civil disorder, emergency or other dangerous
condition, or threat thereof: (a) limit or prevent access to the Building or Project or Premises; (b) shut down elevator service; (c) activate elevator emergency controls, and (d) otherwise take such action or preventative
measures deemed necessary by Landlord for the safety of tenants of the Building or Project or the protection of the Building or Project and other property located thereon or therein (but this provision shall impose no duty on Landlord to take such
actions, and no liability for actions taken in good faith). 
 21.3 Changes to the Project. Except to the extent
expressly limited herein, Landlord reserves full right to (i) paint and decorate, (ii) perform repairs or maintenance, or (iii) make replacements, restorations, renovations, alterations, additions and improvements, structural or
otherwise (including freon retrofit work), in and to the Project or any part thereof, or change the uses thereof (including changes, reductions or additions of corridors, entrances, doors, lobbies, parking facilities and other areas, structural
support columns and shear walls, elevators, stairs, escalators, mezzanines, solar tint windows or film, kiosks, planters, sculptures, displays, and other amenities and features therein, and changes relating to the connection with or entrance into or
use of the Project or any other adjoining or adjacent building or buildings, now existing or 

  
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hereafter constructed). In connection with such matters, Landlord may among other things erect scaffolding, barricades and other structures, open ceilings, close entry ways, restrooms, elevators,
stairways, corridors, parking and other areas and facilities, and take such other actions as Landlord deems appropriate. 

21.4 Avoidance of Interference. Landlord will use commercially reasonable efforts to avoid interference with Tenant’s use of
the Premises for the purposes permitted under this Lease. 
 ARTICLE 22. INDEMNIFICATION, WAIVER AND RELEASE. 

22.1 Tenant’s Indemnification. Except for any injury to persons or damage to property that is proximately caused by or results
proximately from the gross negligence or willful misconduct of Landlord, its employees or agents, and subject to the provisions of Article 6.4 herein, Tenant shall indemnify and hold the Indemnified Parties (defined below) harmless from and against,
any and all demands, claims, causes of action, fines, penalties, damages, liabilities, judgments, and expenses (including, without limitation, reasonable attorney’s fees) incurred in connection with or arising from: 

(a) the use or occupancy or manner of use or occupancy of the Premises by Tenant or any person claiming under Tenant; 

(b) any activity, work, or thing done or permitted by Tenant in or about the Premises, the Building, or the Project; 

(c) any breach by Tenant or its employees, agents, contractors, or invitees of this Lease; 

(d) any injury or damage to the person, property, or business of Tenant, its employees, agents, contractors, or invitees entering upon
the Premises under the express or implied invitation of Tenant; and 
 (e) any alleged violation by Tenant of the ADA and/or any
other law, rule, code or regulation. 
 If any action or proceeding is brought against an Indemnified Party by reason of any of
the foregoing (a) though (e), Tenant, upon written notice from such Indemnified Party, shall defend the same at Tenant’s expense, with counsel reasonably satisfactory to Landlord. 

22.2 Waiver and Release. Tenant, as a material part of the consideration to Landlord for this Lease, by this Article 22.2 waives
and releases all claims against Landlord, Landlord’s affiliates and all of Landlord’s and their wholly-owned subsidiaries, employees and agents (collectively, the “Indemnified Parties” and Individually, an “Indemnified
Party”) with respect to all matters for which Landlord has disclaimed liability pursuant to the provisions of this Lease, including, but not limited to, any losses or other damages sustained by Tenant or any person claiming through Tenant
resulting from any accident or occurrence in or upon the Premises, including but not limited to: any defect in or failure of Building equipment; any failure to make repairs; any defect, failure, surge in, or interruption of facilities or
services; any defect in or 

  
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failure of Common Areas; broken glass; water leakage; the collapse of any Building component; any claim or damage resulting from Landlord’s repair, maintenance or improvements to any
portion of the Building or Project; or any act, omission or negligence of co-tenants, licensees or any other persons or occupants of the Building; provided only, that the release contained in this Section 22.2 shall not apply to claims
for actual damage to persons or property (excluding consequential damages such as lost profits) resulting from Landlord’s gross negligence or willful misconduct or from Landlord’s breach of its express obligations under this Lease which
Landlord has not cured within a reasonable time after receipt of written notice of such breach from Tenant. 
 22.3
Landlord’s Indemnification. Except for any injury to persons or damage to Property that is proximately caused by or results proximately from the negligence or willful misconduct of Tenant, its employees or agents and, subject to the
provisions of Article 6.4 herein, Landlord shall indemnify and hold Tenant harmless from and against any and all demands, claims, causes of action, fines, penalties, damages, liabilities, judgments and expenses (including, without limitation,
reasonable attorney’s fees) incurred in connection with or arising from Landlord’s gross negligence, willful misconduct or breach of any of Landlord’s express obligations under this Lease which Landlord has not cured within a
reasonable time after receipt of written notice of such breach from Tenant. If any action or proceeding is brought against Tenant by reason of any of the foregoing, Landlord, upon written notice from Tenant, shall defend the same at Landlord’s
expense with counsel reasonably satisfactory to Tenant and Landlord’s insurance carrier, if any. 
 ARTICLE 23. QUIET
ENJOYMENT. 
 Landlord covenants and agrees with Tenant that, so long as Tenant pays the Rent and observes and performs
all the terms, covenants, and conditions of this Lease on Tenant’s part to be observed and performed, Tenant may peaceably and quietly enjoy the Premises and Tenant’s possession will not be disturbed by anyone claiming by, through, or
under Landlord, subject to the terms and conditions of this Lease. 
 ARTICLE 24. EFFECT OF SALE. 

A sale, conveyance, or assignment of the Project shall operate to release Landlord from liability from and after the effective date of
such sale, conveyance, or assignment upon all of the covenants, terms, and conditions of this Lease, express or implied, except those liabilities that arose prior to such effective date, and, after the effective date of such sale, conveyance, or
assignment, Tenant shall look solely to Landlord’s successor in interest in and to this Lease. This Lease shall not be affected by any such sale, conveyance or assignment and Tenant shall attorn to Landlord’s successor in interest to this
Lease, so long as such successor in interest assumes Landlord’s obligations under the Lease from and after such effective date. 

  
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 ARTICLE 25. DEFAULT. 
 25.1 Events of Default by Tenant. The following events are referred to, collectively, as “Events of Default” or, individually, as an “Event of Default”: 

(a) The vacation or abandonment of the Premises by Tenant (failure of Tenant to occupy the Premises for a period of ten
(10) consecutive days while in monetary default under this Lease shall conclusively be deemed a vacation and abandonment of the Premises); 
 (b) Failure to pay any installment of Rent or any other monies due and payable hereunder, said failure continuing for a period of three (3) business days after the same is due, provided that with
respect to the first late payment in any twelve (12) month period, it shall not be an Event of Default unless such payment is not received within three (3) calendar days after written notice thereof by Landlord to Tenant; provided further
that in the event Tenant fails thereafter in the same twelve (12) month period to pay any Rent, then any late charge or Default Interest which were waived because of Tenant’s timely cure of its first Event of Default in such twelve
(12) month period shall be re-instated; 
 (c) A general assignment by Tenant or Guarantor for the benefit of creditors;

 (d) The filing of a voluntary petition in bankruptcy by Tenant or Guarantor, the filing by Tenant or Guarantor of a voluntary
petition for an arrangement, the filing by or against Tenant or Guarantor of a petition, voluntary or involuntary, for reorganization, or the filing of an involuntary petition by the creditors of Tenant or Guarantor, said involuntary petition
remaining undischarged for a period of sixty (60) days; 
 (e) Receivership, attachment, or other judicial seizure of
substantially all of Tenant’s assets on the Premises, such attachment or other seizure remaining undismissed or undischarged for a period of sixty (60) days after the levy thereof, 

(f) Death or disability of Tenant or Guarantor, if Tenant or such Guarantor is a natural person, or the failure by Tenant or Guarantor to
maintain its legal existence, if Tenant or Guarantor is a corporation, partnership, limited liability company, trust or other legal entity; 
 (g) Failure of Tenant to execute and deliver to Landlord any estoppel certificate, subordination agreement, or lease amendment within the time periods and in the manner required by the Lease, and/or
failure by Tenant to deliver to Landlord any financial statement within the time period and in the manner required the Lease; 

(h) An assignment or sublease, or attempted assignment or sublease, of this Lease or the Premises by Tenant contrary to the provision of
Article 10 of this Lease, unless such assignment or sublease is expressly conditioned upon Tenant having received Landlord’s consent thereto; 
 (i) Failure in the performance of any of Tenant’s covenants, agreements or obligations hereunder (except those failures specified as Events of Default in subparagraphs (b), (d) or
(e) herein or any other subparagraphs of this Article 25.01, which shall be governed by the notice and cure periods set forth in such other subparagraphs), which failure continues for thirty (30) days after written notice thereof from
Landlord to Tenant, provided that, if Tenant has exercised reasonable diligence to cure such failure and such failure cannot be cured within such thirty (30) day period despite reasonable diligence, Tenant shall not be in default under this
subparagraph so long as Tenant thereafter diligently and continuously prosecutes the cure to completion and actually completes such cure within sixty (60) days after the giving of the aforesaid written notice; 

  
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 (j) Chronic Default by Tenant in the payment of Rent, or any other periodic payments
required to be paid by Tenant under this Lease. “Chronic Default” means failure by Tenant to pay Rent, or any other payments required to be paid by Tenant under this Lease within three (3) days after written notice thereof for any
three (3) months (consecutive or nonconsecutive) during any period of twelve (12) months; 
 (k) Any insurance
required to be maintained by Tenant pursuant to this Lease shall be canceled or terminated or shall expire or be reduced or materially changed, except as permitted in this Lease; 

(l) Any failure by Tenant to discharge any lien or encumbrance placed on the Building or any part thereof in violation of this Lease
within ten (10) business days after the date such lien or encumbrance is filed or recorded against the Building or any part thereof; 
 (m) Any failure by Tenant to immediately remove, abate or remedy any hazardous substances located in, on or about the Demised Premises or the Building in connection with any failure by Tenant to comply
with Tenant’s obligations under Article 9; or 
 (n) Any representation of Tenant herein or in any financial statement or
other material provided by Tenant or Guarantor shall prove to be untrue or inaccurate in any material respect, or any such financial statements or other material shall have omitted any material fact. 

25.2 Landlord’s Remedies. If any one or more Events of Default set forth in Article 25.1, above, occurs then Landlord has the
right, at its election: 
 (a) To give Tenant written notice of Landlord’s intention to terminate this Lease on the
earliest date permitted by law or on any later date specified in such notice, in which case Tenant’s right to possession of the Premises shall cease and this Lease shall be terminated; 

(b) Without further demand or notice, to reenter and take possession of the Premises or any part of the Premises, repossess the same,
expel Tenant and those claiming through or under Tenant, and remove the effects of both or either, using such force for such purposes as may be necessary, without being liable for prosecution, without being deemed guilty of any manner of trespass,
and without prejudice to any remedies for arrears of Monthly Base Rent or other amounts payable under this Lease or as a result of any preceding breach of covenants or conditions; or 

(c) Without further demand or notice to cure any Event of Default and to charge Tenant for the cost of effecting such cure, including,
without limitation, reasonable attorneys’ fees and interest on the amount so advanced at the rate set forth in Article 33.32, below, provided that Landlord will have no obligation to cure any such Event of Default of Tenant. 

  
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 Should Landlord elect to reenter as provided in Article 25.2(b), above, or should Landlord take possession
pursuant to legal proceedings or pursuant to any notice provided by law, Landlord may, from time to time, without terminating this Lease, relet the Premises or any part of the Premises in Landlord’s or Tenant’s name, but for the account of
Tenant, for such term or terms (which may be greater or less than the period which would otherwise have constituted the balance of the Term) and on such conditions and upon such other terms (which may include concessions of free rent and alteration
and repair of the Premises) as Landlord, in its reasonable discretion, may determine, and Landlord may collect and receive the Rent. Landlord will in no way be responsible or liable for any failure to relet the Premises, or any part of the Premises,
or for any failure to collect any Rent due upon such reletting. No such reentry or taking possession of the Premises by Landlord will be construed as an election on Landlord’s part to terminate this Lease unless a written notice of such
intention is given to Tenant. No written notice from Landlord under this Article 25 or under a forcible or unlawful entry and detainer statute or similar law will constitute an election by Landlord to terminate this Lease unless such notice
specifically so states. Landlord reserves the right following any such reentry or reletting to exercise its right to terminate this Lease by giving Tenant such written notice, in which event this Lease will terminate as specified in such notice.

 25.3 Damages; No Termination. In the event that Landlord does not elect to terminate this Lease as permitted in
Article 25.2(a), above, but on the contrary elects to take possession as provided in Article 25.2(b), above, Tenant shall pay to Landlord Monthly Base Rent, Additional Rent and other sums as provided in this Lease that would be payable under this
Lease if such repossession had not occurred, less the net proceeds, if any, of any reletting of the Premises after deducting all of Landlord’s reasonable expenses in connection with such reletting, including without limitation all repossession
costs, brokerage commissions, attorneys’ fees, expenses of employees, alteration and repair costs, and expenses of preparation for such reletting. If, in connection with any reletting, the new lease term extends beyond the Term, or the
Premises covered by such new lease includes other premises not part of the Premises, a fair apportionment of the Rent received from such reletting and the expenses incurred in connection with such reletting as provided in this Article 25.3 will be
made in determining the net proceeds from such reletting, and any Rent concessions will be equally apportioned over the term of the new lease. Tenant will pay such rent and other sums to Landlord monthly on the day on which the Monthly Base Rent and
Additional Rent would have been payable under this Lease if possession had not been retaken, and Landlord shall be entitled to receive such rent and other sums from Tenant on each such day. 

25.4 Damages upon Termination. 
 (a) If this Lease is terminated on account of the occurrence of an Event of Default, Tenant shall remain liable to Landlord for damages in an amount equal to Monthly Base Rent, Additional Rent and other
amounts that would have been owing by Tenant for the balance of the Term, had this Lease not been terminated, less the net proceeds, if any, of any reletting of the Premises by Landlord subsequent to such termination, after deducting all of
Landlord’s expenses in connection with such reletting, including, without limitation, the expenses enumerated in Article 25.3, above. Landlord shall be entitled to collect such damages from Tenant monthly on the day on which Monthly Base Rent,
Additional Rent and other amounts would have been payable under this Lease if this Lease had not been terminated, and Landlord shall be entitled to receive such Monthly Base Rent, Additional Rent and other amounts from Tenant on each such day.

  
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 (b) Alternatively, at the option of Landlord, in the event this Lease is so terminated,
Landlord shall be entitled, upon written notice to Tenant at any time after such termination, to declare the present cash value (as of the date of such default) of the entire balance of rent for the remainder of the Term to be due and payable, and
to collect such balance in addition to any additional amounts due prior to such termination in any manner not inconsistent with applicable law. For the purpose of this Article 25.4, the “present cash value” shall be computed by adding
interest at the per annum interest rate described in Article 33.32, below, herein from the date on which this Lease is terminated to the date Landlord obtains a court judgment against Tenant for the amount due and discounting the entire balance
due to Landlord at the Discount Rate charged by the Federal Reserve Banks as published in the “Money Rates” section of the Wall Street Journal on the day the Lease is terminated or if not published on such date, the publication date
immediately prior to the termination date, plus two percent (2%). 
 25.5 Cumulative Remedies. Any suit or suits for the
recovery of the amounts and damages set forth in Articles 25.3 and 25.4, above, may be brought by Landlord, from time to time, at Landlord’s election, and nothing in this Lease will be deemed to require Landlord to await the date upon which
this Lease or the Term would have expired had there occurred no Event of Default. Tenant agrees that Landlord may file suit to recover any sums due to Landlord under this Lease from time to time and that such suit or recovery of any amount due
Landlord hereunder shall not be any defense to any subsequent action brought for any amount not previously reduced to judgment in favor of Landlord. Each right and remedy provided for in this Lease is cumulative and is in addition to every other
right or remedy provided for in this Lease or now or after the Lease date existing at law or in equity or by statute or otherwise, and the exercise or beginning of the exercise by Landlord of any one or more of the rights or remedies provided for in
this Lease or now or after the Lease Date existing at law or in equity or by statute or otherwise will not preclude the simultaneous or later exercise by Landlord of any or all other rights or remedies provided for in this Lease or now or after the
Lease Date existing at law or in equity or by statute or otherwise. All costs incurred by Landlord in collecting any amounts and damages owing by Tenant pursuant to the provisions of this Lease or to enforce any provision of this Lease, including
reasonable attorneys’ fees from the date any such matter is turned over to an attorney, whether or not one or more actions are commenced by Landlord, will also be recoverable by Landlord from Tenant. 

25.6 Waiver of Redemption/Mitigation. Tenant waives any right of redemption arising as a result of Landlord’s exercise of its
remedies under this Article 25. Landlord shall take reasonable measures to mitigate the damages recoverable against Tenant. Tenant shall bear the burden of proving Landlord failed to take such reasonable measures to mitigate damages in any lawsuit
filed by Landlord to recover damages under or pursuant to this Lease. 
 ARTICLE 26. LANDLORD’S LIEN. 

Landlord will have such lien rights as are provided under Washington law.  

ARTICLE 27. PARKING. 
 At all times during the Term, and conditioned upon this Lease being in full force and effect and there being no Event of Default hereunder, Tenant shall be permitted to use the Parking Spaces designated
in Article 1.1 of this Lease, subject to the Rules and Regulations set forth in Exhibit E, and any reasonable amendments or additions to such Rules and Regulations. The Parking Spaces will be used by Tenant and/or Tenant’s employees, guests
and/or visitors on an unassigned, nonreserved, and nondesignated basis or such other basis as Landlord directs from 

  
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time to time. The monthly rental for parking spaces actually being used by Tenant shall be current market rental rates per Parking Space per month (which is currently $280.00 per month, including
all taxes and fees), payable in advance by Tenant to Landlord together with the Monthly Base Rent and subject to adjustment from time to time by Landlord so as to make such rental substantially equivalent to then current market rental rates for
similar parking spaces at the Project. 
 If, for any reason, Landlord fails to provide, or Tenant is not permitted to utilize,
the Parking Spaces or any portion thereof, such fact shall not be deemed to be a default by Landlord but rental for any Parking Space which is not provided by Landlord shall be abated for so long as Tenant does not have the use of such Parking
Space. Such abatement shall constitute full settlement of all claims that Tenant might otherwise have against Landlord by reason of such failure. 
 ARTICLE 28. Intentionally Omitted. 
 ARTICLE 29. SIGNS. 

(a) Landlord shall install and maintain identification for Tenant on the building directory located in the main lobby of the Office Unit
and shall make such changes thereto as Tenant reasonably requests from time to time, at Landlord’s sole cost and expense. Tenant shall be provided not less than Tenant’s Share of the total listings on such directory board. 

(b) No signs will be placed in the Premises without the prior written consent of Landlord as to size, design, color, location, content,
illumination, composition, material, and mobility. All signs will be maintained by Tenant in good condition during the Term and any duly exercised Renewal Term. Tenant shall remove all signs at the end of the Term or duly exercised Renewal Term and
shall repair and restore any damage caused by their installation or removal. 
 ARTICLE 30. SECURITY DEPOSIT. 

As of the Lease Date, Tenant has deposited the Security Deposit referred to in Article 1.1 of this Lease with
Landlord as security for the full, faithful, and timely performance of every provision of this Lease to be performed by Tenant. If Tenant defaults with respect to any provision of this Lease, including but not limited to the provisions relating to
the payment of Rent, Landlord may use, apply, or retain all or any part of the Security Deposit for the payment of any Rent, or any other sum in default, or for the payment of any other amount Landlord may spend or become obligated to spend by
reason of an Event of Default, or to compensate Landlord for any other loss or damage Landlord may suffer by reason of an Event of Default. If any portion of the Security Deposit is so used, applied, or retained, Tenant shall, within five
(5) days after written demand, deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its original amount. Landlord will not be required to keep the Security Deposit separate from its general funds, and Tenant
will not be entitled to interest on the Security Deposit. Landlord’s obligations with respect to the Security Deposit are those of a debtor and not of a trustee. The Security Deposit shall not be deemed a limitation on Landlord’s damages
or a payment of liquidated damages or a payment of the Monthly Base Rent due for the last month of the Term. If at the end of the 24th Month of the Term no Event of Default then exists, then the Security Deposit shall be reduced to $343,838.25 by
Landlord paying to Tenant the difference between 

  
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held and $343,838.25. If at the end of the 36th Month of the Term no Event of Default then exists, then the Security Deposit shall be reduced to $229,225.50 by Landlord paying to Tenant the difference between the amount then held and $229,225.50. If
at the end of the 481h Month of the Term no Event of
Default then exists, then the Security Deposit shall be reduced to $114,612.75 by Landlord paying to Tenant the difference between the amount then held and $114,612.75. If Tenant fully, faithfully, and timely performs every provision of this Lease
to be performed by it, the Security Deposit or any balance of the Security Deposit will be returned to Tenant within sixty (60) days after the final Operating Expenses reconciliation pursuant to Sections 5.3 and 5.4. Landlord may deliver the
funds deposited under this Lease by Tenant to the purchaser of the Building in the event the Building is sold, and after such time Landlord will have no further liability to Tenant with respect to the Security Deposit. 

ARTICLE 31. INTENTIONALLY OMITTED. 
 ARTICLE 32. OPTION TO RENEW THE TERM. 
 (1) Except as set forth
herein, and provided that (i) no Event of Default or Chronic Default, as such terms are defined in Section 25.1 of this Lease, has occurred or is continuing, and (ii) that Tenant is in occupancy of the entire Premises as of the
Expiration Date, Tenant shall have the right and option, exercisable by giving written notice thereof at least nine (9) months, but not more than twelve (12) months prior to the Expiration Date (the “Renewal Notice”), to extend
the Term of this Lease through February 14, 2018 (the “Renewal Term”). Except as set forth herein, upon the giving of such notice, this Lease shall automatically be extended to February 14, 2018 and no further instrument of
extension shall be required to be executed by either party to this Lease. In the event that Tenant fails to give such notice to Landlord as herein provided, this Lease shall automatically terminate on the Expiration Date and Tenant shall have no
further right or option to extend this Lease. Tenant’s rights under this Article 32 are subordinate to the rights of Russell Investments Company’s rights to expand into the Premises. If Russell Investments Company exercises its expansion
rights, then the Term of this Lease shall only extend through June 30, 2016, which shall be the new Expiration Date. 
 (2)
The Renewal Term shall be on the same terms, covenants, and conditions as applicable to the original Term of this Lease, except that (a) the Monthly Base Rent during the Renewal Term shall be determined pursuant to this Article 32 below,
(b) Landlord shall have no obligation to construct any improvements or alterations to the Premises pursuant to this Lease or the Work Letter attached hereto as Exhibit C and (c) Tenant shall have no further options to renew or extend the
Term. 
 (3) The Monthly Base Rent for the Renewal Terms shall be the greater of the current Monthly Base Rent or ninety-five
percent (95%) of the then current fair market rental rates for comparable space in the downtown Seattle area as of the first day of the Renewal Term (the “Current Market Rate”). If the parties fail to agree upon the Current Market
Rate within thirty (30) days after Landlord’s receipt of Tenant’s Renewal Notice, then either party shall be entitled to give notice to the other electing to have the Current Market Rate selected by an appraiser as provided in this
section. Upon delivery and receipt of such notice, the parties will within seven days thereafter mutually appoint an appraiser who will select (in the manner set forth below) the Current Market Rate (the “Deciding Appraiser”). The Deciding
Appraiser must have at least ten years of full-time commercial appraisal experience with projects comparable to the Project and 

  
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be a member of the American Institute of Real Estate Appraisers or a similar appraisal association. Alternatively, the Deciding Appraiser may be a real estate broker with at least ten
(10) years experience in the leasing of Class A office space in the downtown Seattle area. The Deciding Appraiser may not have any material financial or business interest in common with either of the parties. If Landlord and Tenant are not
able to agree upon a Deciding Appraiser within such seven days, each party will within five days thereafter separately select an appraiser meeting the criteria set forth above, which two appraisers will, within seven days of their selection,
mutually appoint a third appraiser meeting the criteria set forth above to be the Deciding Appraiser. If two appraisers are not able, within seven days of their selection, to mutually appoint a Deciding Appraiser, then either party may apply to the
Presiding Judge of the Superior Court for King County who shall select a Deciding Appraiser who meets the criteria set forth above. Within seven days of the appointment (by one of the foregoing methods) of the Deciding Appraiser, Landlord and Tenant
will submit to the Deciding Appraiser and exchange with each other their respective determinations of Current Market Rate and any related information. Within twenty-one (21) days of such appointment of the Deciding Appraiser, the Deciding
Appraiser will review each party’s submittal (and such other information as the Deciding Appraiser deems necessary) and will select, in total and without modification, the submittal presented by either Landlord or Tenant as the Current Market
Rate; provided, however, that in no event will Current Market Rate for an extension of the Term be less than the Monthly Basic Rent (exclusive of temporary abatements) payable by Tenant immediately prior to commencement of the Renewal Term. Subject
to the previous sentence, if the Deciding Appraiser timely receives one party’s submittal, but not both, the Deciding Appraiser must designate the submitted proposal as the Current Market Rate for the applicable extension of the Term. Any
determination of Current Market Rate made by the Deciding Appraiser in violation of the provisions of this section shall be beyond the scope of authority of the Deciding Appraiser and shall be null and void. If the determination of Current Market
Rate is made by a Deciding Appraiser, Landlord and Tenant will each pay, directly to the Deciding Appraiser, one-half
(1/2) of all fees, costs and expenses of the Deciding
Appraiser. Landlord and Tenant will each separately pay all costs, fees and expenses of their respective additional appraiser (if any) used to determine the Deciding Appraiser. 
 ARTICLE 33. MISCELLANEOUS. 
 33.1 No Offer. This Lease is
submitted to Tenant on the understanding that it will not be considered an offer and will not bind Landlord in any way until Tenant has duly executed and delivered duplicate originals to Landlord and Landlord has executed and delivered one of such
originals to Tenant. 
 33.2 Joint and Several Liability. If Tenant is composed of more than one signatory to this
Lease, each signatory will be jointly and severally liable with each other signatory for payment and performance according to this Lease. The act of, written notice to, written notice from, refund to, or signature of any signatory to this Lease
(including, without limitation, modifications of this Lease made by fewer than all such signatories) will bind every other signatory as though every other signatory had so acted, or received or given the written notice or refund, or signed.

 33.3 No Construction Against Drafting Party. Landlord and Tenant acknowledge that each of them and their counsel
have had an opportunity to review this Lease and that this Lease will not be construed against Landlord merely because Landlord has prepared it. 

  
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 33.4 Time of the Essence. Time is of the essence of each and every provision of this
Lease. 
 33.5 No Recordation. Tenant’s recordation of this Lease or any memorandum or short form of it will be void
and an Event of Default under this Lease. 
 33.6 No Waiver. The waiver by Landlord of any agreement, condition,
or provision contained in this Lease will not be deemed to be a waiver of any subsequent breach of the same or any other agreement, condition, or provision contained in this Lease, nor will any custom or practice that may grow up between the parties
in the administration of the Terms of this Lease be construed to waive or to lessen the right of Landlord to insist upon the performance by Tenant in strict accordance with the Terms of this Lease. The subsequent acceptance of Rent by Landlord will
not be deemed to be a waiver of any preceding breach by Tenant of any agreement, condition, or provision of this Lease, other than the failure of Tenant to pay the particular Rent so accepted, regardless of Landlord’s knowledge of such
preceding breach at the time of acceptance of such Rent. No acceptance by Landlord of a lesser sum than the Rent or other sum then due shall be deemed to be other than on account of the earliest installment of Rent nor shall it be deemed to be an
accord and satisfaction, and Landlord may accept such check or payment without prejudice to Landlord’s right to recover the balance of such installment or other amount or pursue any other remedy provided in the Lease. 

33.7 Limitation on Recourse. It is expressly understood and agreed by Tenant that none of Landlord’s covenants, undertaking
or agreements contained in this Lease are made or intended as personal covenants, undertaking or agreements by Landlord. Tenant specifically agrees to look solely to Landlord’s interest in the Project (together with any rents or proceeds
therefrom) for the recovery of any judgments against Landlord. It is agreed that Landlord (and its shareholders, venturers, and partners, and their shareholders, venturers, and partners and all of their officers, directors, and employees) shall not
be personally liable for any such judgments. 
 33.8 Estoppel Certificates. At any time and from time to time but within
ten (10) business days after prior written request by Landlord, Tenant shall execute, acknowledge, and deliver to Landlord, promptly upon request, a certificate in the form attached hereto as Exhibit G (to the extent such information is true)
certifying as to the matters set forth therein. Any such certificate may be relied upon by any prospective purchaser or existing or prospective mortgagee or beneficiary under any deed of trust of the Building or any part of the Project.
Tenant’s failure to deliver such a certificate within such time shall be conclusive evidence of the matters set forth in it. 
 33.9 WAIVER OF JURY TRIAL. LANDLORD AND TENANT, BY THIS ARTICLE 33.9, HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE THE RIGHT TO A TRIAL BY JURY IN ANY ACTION, PROCEEDING, OR COUNTERCLAIM
BROUGHT BY EITHER OF THE PARTIES TO THIS LEASE AGAINST THE OTHER ON ANY MATTERS WHATSOEVER ARISING OUT OF OR IN ANY WAY CONNECTED WITH THIS LEASE, THE RELATIONSHIP OF LANDLORD AND TENANT, TENANT’S USE OR OCCUPANCY OF THE PREMISES, ANY ACTION TO
RESCIND OR CANCEL THIS LEASE OR ANY CLAIMS OR DEFENSES ASSERTING THAT THIS LEASE WAS FRAUDULENTLY INDUCED OR IS OTHERWISE VOID OR VOIDABLE OR ANY OTHER CLAIMS. THIS WAIVER IS A MATERIAL INDUCEMENT FOR LANDLORD TO ENTER INTO AND ACCEPT THIS LEASE.

  
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 33.10 No Merger. The voluntary or other surrender of this Lease by Tenant or the
cancellation of this Lease by mutual agreement of Tenant and Landlord or the termination of this Lease on account of an Event of Default shall not work a merger, and shall, at Landlord’s option, (a) terminate all or any subleases and
subtenancies or (b) operate as an assignment to Landlord of all or any subleases or subtenancies. Landlord’s option under this Article 33.10 shall be exercised by written notice to Tenant and all known sublessees or subtenants in the
Premises or any part of the Premises. 
 33.11 Holding Over. Tenant shall have no right to remain in possession of all or
any part of the Premises after the expiration or earlier termination of the Term. If Tenant remains in possession of all or any part of the Premises after the expiration of the Term, with the express or implied consent of Landlord: (a) such
tenancy shall be deemed to be a tenancy at sufferance only; (b) such tenancy shall not constitute a renewal or extension of this Lease for any further Term; and (c) such tenancy may be terminated by Landlord upon the earlier of five
(5) days’ prior written notice or the earliest date permitted by law. In the event Tenant remains in possession after the expiration of the Term, Monthly Base Rent shall be increased to an amount equal to one hundred fifty percent
(150%) of the Monthly Base Rent payable during the last month of the Term, and any other sums due under this Lease shall be payable in the amount and at the times specified in this Lease. Such tenancy at sufferance shall be subject to every
other term, condition, and covenant contained in this Lease. The foregoing provisions of this Article 33.11 are in addition to and do not affect Landlord’s right of re-entry or any rights of Landlord under this Lease or as otherwise provided by
law. If Tenant fails to surrender the Premises upon the expiration or termination of this Lease despite demand to do so by Landlord, Tenant shall indemnify and hold Landlord harmless from all loss or liability, including, without limitation, any
claim made by any succeeding tenant founded on or resulting from such failure to surrender and any attorney’s fees and costs. 
 33.12 Notices. Any notice, request, demand, consent, approval, or other communication required or permitted under this Lease must be in writing and shall be deemed to have been given when
(a) hand delivered, effective upon receipt, (b) sent by United States Express Mail or by private overnight courier, effective upon receipt, (c) sent by certified mail, return receipt requested, addressed to the party for whom it is
intended at its address set forth in Article 1.1, (d) deposited in the United States Mail, with postage thereon fully prepaid, effective on the day of actual delivery as shown by the addressee’s return receipt or the expiration of three
(3) business days after the date of mailing, whichever is earlier, or (e) sent by facsimile transmission, effective upon receipt provided that a hard copy is delivered by one of the methods outlined in clauses (a) though
(d) above within three (3) days thereafter. Either Landlord or Tenant may add additional addresses or change its address for purposes of receipt of any such communication by giving ten (10) days’ prior written notice of such
change to the other party in the manner prescribed in this Article 33.12. 
 33.13 Mortgagee Protection.

 (a) If, in connection with obtaining construction, interim or permanent financing for the Building, the lender (the
“Lender”) shall request reasonable modifications in this Lease as a condition to such financing, Tenant will not unreasonably withhold, delay or defer its consent thereto, provided that such modifications do not increase the obligations of
Tenant hereunder, decrease its rights or otherwise materially adversely affect the leasehold interest hereby created or Tenant’s rights hereunder. 

  
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 (b) Tenant shall give to any Lender, by a method provided for in Article 33.12 above, at the
same time as it is given to Landlord, a copy of any notice of default given to Landlord, provided that prior to such notice Tenant has been notified, in writing, (by way of notice of assignment of rents and leases, or otherwise) of the address of
such Lender. Tenant further agrees that if Landlord shall have failed to cure such default within the time provided for in this Lease, then the Lender shall have an additional reasonable period within which to cure such default, or if such default
cannot be cured without Lender pursuing its remedies against Landlord, then such additional time as may be necessary to commence and complete a foreclosure proceeding, provided Lender commences and thereafter diligently pursues the remedies
necessary to cure such default (including but not limited to commencement of foreclosure proceedings, if necessary to effect such cure), in which event this Lease shall not be terminated. 

33.14 Severability. If any provision of this Lease proves to be illegal, invalid, or unenforceable, the remainder of this Lease
will not be affected by such finding, and in lieu of each provision of this Lease that is illegal, invalid, or unenforceable a provision will be added as a part of this Lease as similar in terms to such illegal, invalid, or unenforceable provision
as may be possible and be legal, valid, and enforceable. 
 33.15 Written Amendment Required. No amendment, alteration,
modification of, or addition to the Lease shall be valid or binding unless expressed in writing and signed by Landlord and Tenant. Tenant agrees to make any modifications of the terms and provisions of this Lease required or requested
by any lending institution providing financing for the Building, or Project, as the case may be, provided that no such modifications will materially adversely affect Tenant’s rights and obligations under this Lease. 

33.16 Captions. The captions of the various articles of this Lease are for convenience only and do not necessarily define, limit,
describe, or construe the contents of such articles. 
 33.17 Authority. Tenant and the party executing this Lease on
behalf of Tenant represent to Landlord that such party is authorized to do so by requisite action of the board of directors or partners, as the case may be, and agrees, upon execution of this Lease, to deliver to Landlord a resolution or similar
document to that effect. 
 33.18 Brokers. Landlord and Tenant respectively represent and warrant to each other that
neither of them has consulted or negotiated with any broker or finder with regard to the Premises except that Landlord has been represented by Landlord’s Broker and Tenant has been represented by Tenant’s Broker, each as named in Article
1.1 hereof. Landlord agrees to be responsible for payment of Landlord’s Broker’s fees and shall pay Tenant’s Broker’s fees pursuant to a separate agreement between Landlord and Tenant’s Broker. Landlord and Tenant shall
mutually indemnify and hold each other harmless from and against any claim for brokerage or finder’s fees or other like payment based in any way upon agreements, arrangements or understanding made or claimed to have been made by Landlord or
Tenant with any third person. Each of Landlord and Tenant, by its execution of this Lease, acknowledges that it has received a pamphlet on the law of real estate agency as required under RCW 18.86.030(1)(f). 

  
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 33.19 Governing Law. This Lease shall be governed by and construed pursuant to the
laws of the state in which the Project is located. 
 33.20 No Easements for Air or Light. Any diminution or
shutting off of light, air, or view by any structure that may be erected on lands adjacent to the Building shall in no way affect this Lease or impose any liability on Landlord. 

33.21 Tax Credits. Landlord is entitled to claim all tax credits and depreciation attributable to leasehold improvements in the
Premises. Promptly after Landlord’s demand, Landlord and Tenant shall prepare a detailed list of the leasehold improvements and fixtures and their respective costs for which Landlord or Tenant has paid. Landlord shall be entitled to all credits
and depreciation for those items for which Landlord has paid by means of any Tenant finish allowance or otherwise. Tenant shall be entitled to any tax credits and depreciation for all items for which Tenant has paid with funds not provided or
reimbursed by Landlord. 
 33.22 Financial Reports. Within fifteen (15) business days after Landlord’s
request, but no more than once per year, Tenant shall furnish Tenant’s most recent audited financial statements (including any notes to them) to Landlord, or, if no such audited statements have been prepared, such other financial statements
(and notes to them) as may have been prepared by an independent certified public accountant or, if such statements do not exist, then Tenant’s internally prepared financial statements. Tenant shall discuss its financial statements with
Landlord. Landlord shall not disclose any aspect of Tenant’s financial statements that Tenant designates to Landlord as confidential except (a) to Landlord’s lenders or prospective purchasers of the Project, (b) in litigation
between Landlord and Tenant, and (c) if required by court order. 
 33.23 Landlord’s Fees. Whenever
Tenant requests Landlord to take any action or give any consent required or permitted under this Lease, Tenant shall reimburse Landlord for all of Landlord’s reasonable costs incurred in reviewing the proposed action or consent, including
without limitation reasonable attorneys’, engineers’ or architects’ fees, within thirty (30) days after Landlord’s delivery to Tenant of a statement of such costs. Tenant shall be obligated to make such reimbursement without
regard to whether Landlord consents to any such proposed action. 
 33.24 Non-waiver. Any default in the payment
of Monthly Base Rent or Additional Rent or other charges, or any failure of Landlord to enforce the provisions of this Lease upon any default by the Tenant shall not be construed as creating a custom of deferring payment or as modifying in any way
the Terms of this Lease or as a waiver of Landlord’s right to terminate this Lease as herein provided, or otherwise, to enforce the provisions hereof for any prior or subsequent default. 

33.25 Presumption. In all cases hereunder, and in any suit, action or proceeding of any kind between the parties, it shall be
presumptive evidence of the fact of a charge being due, if Landlord shall produce a bill, notice or certificate to the effect that such charge appears of record on the books in Landlord’s office or appears as an open charge on the books,
records or official bills of municipal authorities, and has not been paid. 

  
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 33.26 Intentionally Omitted. 

33.27 No Right to Terminate. Tenant hereby waives the remedies of termination and rescission and hereby agrees that Tenant’s
sole remedies for Landlord’s default hereunder and for breach of any promise or inducement shall be limited to a suit for damages and/or injunction; provided that Tenant shall have no right of self-help to perform repairs or any other
obligation of Landlord and shall have no right to withhold, set-off or abate Rent. 
 33.28 No Liability for Crimes.
Landlord makes no representations or warranties with respect to crime in the area, undertakes no duty to protect against criminal acts and shall not be liable for any injury, wrongful death or property damage arising from any criminal acts. The
Landlord may, from time to time, employ or caused to be employed courtesy patrols or any other type of security personnel and equipment, however, such personnel and equipment are only for the protection of Landlord’s property. Landlord reserves
the right, in its sole and absolute discretion, to start, alter or terminate any such courtesy patrols or other security services without notice. Tenant is urged to provide security for its invitees, its own personnel, and property as it deems
necessary. Tenant is urged to obtain insurance to protect against criminal acts. 
 33.29 Binding Effect. The
covenants, conditions, and agreements contained in this Lease will bind and inure to the benefit of Landlord and Tenant and their respective heirs, distributees, executors, administrators, successors, and, except as otherwise provided in this Lease,
their assigns. 
 33.30 Confidentiality. Tenant agrees that the terms of this Lease are confidential and
constitute proprietary information of Landlord, and that disclosure of the terms hereof could adversely affect Landlord. Tenant shall keep its partners, members, manager, officers, directors, employees, agents, real estate brokers and sales persons
and attorneys from disclosing the terms of this Lease to any other person without Landlord’s prior written consent, except to any accountants of Tenant in connection with the preparation of Tenant’s financial statements or tax
returns, to agents or consultants (including insurance providers) of Tenant in connection with Tenant’s performance of its obligations hereunder, to an assignee of this Lease or subtenant of the Leased Premises, or to a person to whom
disclosure is required in connection with any action brought to enforce this Lease; provided, however, that Tenant shall inform such persons of the confidentiality of the terms of this Lease and shall obtain their agreement to abide by the
confidentiality provisions of this Section 33.30 prior to such disclosure. In the event Tenant is required to disclose this Lease or any terms thereof to governmental agencies pursuant to applicable laws, Tenant shall, prior to making such
disclosure, submit a written request to the applicable authorities that this Lease be exempt from such disclosure requirements and take other actions reasonably necessary to avoid such disclosure. Tenant shall provide Landlord with a copy of such
request and all related documents promptly following the submission thereof to the applicable authorities and shall keep Landlord apprised of the status of such request and all responses thereto. Tenant shall, in any event, provide Landlord with not
less than ten (10) days notice prior to disclosing this Lease or any term thereof to any court or governmental agency. 
 33.31 Force Majeure. Landlord shall have no liability to Tenant, nor will Tenant have any right to terminate this Lease or abate Rent or assert a claim of partial or total actual or constructive
eviction, because of Landlord’s failure to perform any of its obligations in the Lease if the failure is due to reasons beyond Landlord’s reasonable control, including without limitation strikes or other labor difficulties; inability to
obtain necessary governmental permits and approvals (including building permits or certificates of occupancy); unavailability or scarcity of materials; war; 

  
 41 

 
riot; civil insurrection; accidents; acts of God; and governmental preemption in connection with a national emergency. If Landlord fails to perform its obligations because of any reasons beyond
Landlord’s reasonable control (including those enumerated above), the period for Landlord’s performance will be extended day for day for the duration of the cause of Landlord’s failure. Tenant shall have no liability to Landlord, nor
will Landlord have any right to terminate this Lease, because of Tenant’s failure to perform any of its obligations in the Lease (other than the payment of Rent and any other monetary obligations) if the failure is due to reasons beyond
Tenant’s reasonable control including, without limitation, the force majeure events described above. If Tenant fails to perform its obligations because of any reasons beyond Tenant’s reasonable control (other than the payment of Rent and
any other monetary obligations), the period for Tenant’s performance will be extended day for day for the duration of the cause of Tenant’s failure. 
 33.32 Interest. All Rent and other sums dues under this Lease which are not paid when due shall accrue interest at the lesser of eighteen percent (18%) per annum or the highest rate allowed by
law. 
 33.33 Entire Agreement. This Lease, the exhibits and addenda, if any, contain the entire agreement between
Landlord and Tenant. No promises or representations, except as contained in this Lease, have been made to Tenant respecting the condition or the manner of operating the Premises, the Building, or the Project. 

33.34 Business Restriction Representation and Warranty. Tenant hereby represents and warrants that neither Tenant nor any person
or entity owning (directly or indirectly) a ten percent (10%) or greater ownership interest in Tenant, nor any assignee or subtenant of Tenant, nor any guarantor of the obligations of Tenant under this Lease: (i) is now or shall become, a
person or entity with whom Tenant is restricted from doing business with under regulations of the Office of Foreign Assets Control (“OFAC”) of the Department of the Treasury (including, but not limited to, those named on OFAC’s
Specially Designated Nationals and Blocked Persons list) or under any statute, executive order (including, but not limited to, the September 24, 2001, Executive Order Blocking Property and Prohibiting Transactions With Persons Who Commit,
Threaten to Commit, or Support Terrorism), or other governmental action; (ii) is now or shall become, a person or entity with whom Tenant is restricted from doing business with under the International Money Laundering Abatement and Financial
Anti-Terrorism Act of 2001, or the regulations or orders thereunder; and (iii) is not knowingly engaged in and shall not engage in, any dealings or transaction, or be otherwise associated with such persons or entities described in (i) and
(ii) above. 
 33.35 Lender’s Request for Landlord’s Consent. If at any time during the Term, or any
extension thereof, Tenant shall make and/or enter into any secured financing or other transaction in which a lender to Tenant shall request that Landlord, Tenant and such lender enter into an agreement whereby Landlord subordinates any interest it
may have in personal property of Tenant which is located at the Premises (“Collateral”) to lender’s security interest therein, together with Landlord’s consent to permit such lender access to the Premises for the purpose of
inspecting, removing, transferring, taking control of, selling or making any other disposition of such Collateral, then Tenant’s request to Landlord to enter into such agreement shall be in writing and shall be accompanied by a fixed fee in the
sum of $1,000 to compensate Landlord for expenses to be incurred by Landlord in preparing and executing the same (whether or not Landlord and Tenant ultimately execute any such agreement). The parties hereto agree

  
 42 

 
that such sum is a reasonable approximation of the cost of Landlord’s expenses relating thereto, the exact cost thereof being impractical to determine. The form of such agreement shall be as
attached hereto as Exhibit H or such other form as Landlord may approve, which approval shall not be unreasonably withheld. 
 33.36 Relocation. Upon not less than ninety (90) days’ prior written notice to Tenant, Landlord may relocate Tenant to other space of comparable size (and substantially identical quality
improvements) within the Project. Such other space must be an entire floor located above floor 19 in the Building and have a comparable view. Landlord will move or pay for physically moving Tenant’s personal property and equipment to the
new space and will reimburse Tenant for reasonable, documented out-of-pocket costs Tenant incurs in connection with the relocation. Prior to or concurrently with the relocation, Landlord will prepare, and the parties will execute, an amendment to
this Lease to evidence the relocation and make any necessary changes to the Lease resulting from the relocation. 

33.37 Green Provision. Landlord and Tenant agree to comply with the provisions of the Green Addendum attached hereto as Exhibit I,
and the provisions of the Green Addendum are hereby incorporated as if fully set forth in this Section 33.37. 
 33.38
Attorneys’ Fees and Expenses. 
 (a) If either party hereto fails to perform any of its obligations under this Lease or
if any dispute arises between the parties hereto concerning the meaning or interpretation of any provision of this Lease, then the defaulting party or the party not prevailing in such dispute, as the case may be, shall pay any and all costs and
expenses incurred by the other party on account of such default and/or in enforcing or establishing its rights hereunder, including, without limitation, court costs and reasonable attorneys’ fees and disbursements. Any such attorneys’ fees
and other expenses incurred by either party in enforcing a judgment in its favor under this Lease shall be recoverable separately from and in addition to any other amount included in such judgment, and such attorneys’ fees obligation is
intended to be severable from the other provisions of this Lease and to survive and not be merged into any such judgment. 
 (b)
Without limiting the generality of Article 33.38(a) above, if Landlord utilizes the services of an attorney for the purpose of collecting any Rent due and unpaid by Tenant or in connection with any other breach of this Lease by Tenant, Tenant agrees
to pay Landlord actual attorneys’ fees and expenses as determined by Landlord for such services, regardless of the fact that no legal action may be commenced or filed by Landlord. 

33.39 Transportation Management Plan. The Project is subject to a Transportation Management Plan recorded on December 31,
2003 in the real property records of King County, Washington under Auditor’s No. 20031231001123 (the “TMP”). Tenant shall work with the office of the Building transportation coordinator provided by Landlord under the TMP on trip
reduction activities and to provide information to Tenant’s employees regarding the TMP program elements. Tenant shall abide by the TMP, including providing any transportation subsidies to its employees required thereunder. If Tenant
fails to pay any amounts it is required to pay under the TMP and Landlord is required to pay such amounts, Tenant shall reimburse Landlord for the cost of such, which reimbursement shall be made promptly following Tenant’s receipt of
Landlord’s itemized statement setting forth each participating employee of Tenant and the cost to Landlord of such employee’s subsidies under the TMP. 

  
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 33.40 Furniture. Attached to this Lease as Exhibit K is a list of furniture presently
located in the Premises. No later than thirty (30) days prior to the Commencement Date, Tenant shall provide Landlord with a list of the furniture Tenant desires to acquire. Landlord shall remove from the Premises at its cost the remainder of
the furniture. A list of the remaining furniture (the “Remaining Furniture”) shall be initialed by the parties and attached to this Lease as Exhibit K-1. Landlord hereby leases the Remaining Furniture to Tenant as part of the
Premises. Tenant may acquire the Remaining Furniture on the Expiration Date, as said Expiration Date may be extended under Article 32, for One Dollar ($1.00). 
 [Signatures of the Parties Follow on the Next Page] 

  
 44 

 IN WITNESS WHEREOF, Landlord and Tenant have executed this Lease as of the Lease Date.

  

					
	LANDLORD: THE NORTHWESTERN MUTUAL LIFE INSURANCE COMPANY, a Wisconsin corporation
			
	By:	 		 	Northwestern Investment Management Company, LLC, a Delaware limited liability company, its wholly-owned affiliate and authorized representative
			
		 	By:	 	 /s/ Richard C. Dooley

		 	Name:	 	 Richard C. Dooley

		 	 Its:
	 	Director

  

			
	TENANT: ACUCELA INC., a Washington corporation
		
	By:	 	/s/ Ryo Kubota
	Its:	 	 President & CEO

  
 45 

 STATE OF
                             
                                   
                      ) ss. 

COUNTY OF
                         
 I certify that I know or have satisfactory evidence that the person appearing before me and making this acknowledgment is the person whose true signature appears on this document. 

On this         day of         , 2010,
before me personally appeared                    , to me known to be the of Northwestern Investment Management Company, LLC, to me known to be
the authorized representative of THE NORTHWESTERN MUTUAL LIFE INSURANCE COMPANY, the corporation that executed the within and foregoing instrument, and acknowledged the said instrument to be the free and voluntary act and deed of said corporation,
for the uses and purposes therein mentioned, and on oath stated that he/she was authorized to execute said instrument. 

WITNESS my hand and official seal hereto affixed the day and year first above written. 

 

					
	 	 		 	  

	 		 	 Notary Public in and for the State
of                                        
                        
 residing
at                                        
                                         
                        
 My commission
expires:                                       
                                         
  

	 		 	  
  

	 		 	[Type or Print Notary Name]
	 		 	
	 		 	
	 		 	
	 (Use This Space for Notarial Seal Stamp)
	 		 	

  

  
 46 

					
	STATE OF WASHINGTON	 		  	
		 	)	  	ss.
	COUNTY OF SNOHOMISH	 		  	

 I certify that I know or have satisfactory evidence that the person appearing before me and making this
acknowledgment is the person whose true signature appears on this document. 
 On this 15th day of June, 2010, before me personally appeared Ryo Kubota, to me
known to be the President and CEO of ACUCELA INC., the corporation that executed the within and foregoing instrument, and acknowledged the said instrument to be the free and voluntary act and deed of said corporation, for the uses and purposes
therein mentioned, and on oath stated that was authorized to execute said instrument and that the seal affixed, if any, is the corporate seal of said corporation. 
 WITNESS my hand and official seal veto affix the day and year first above written. 
  

(Use This Space for Notarial Seal Stamp) 

  
 47 

 EXHIBIT A 
 LEGAL DESCRIPTION OF THE LAND 
 Parcel B of City of Seattle Lot Boundary Adjustment
No. 2207977, as recorded under Recording No. 20030417900008, records of King County, Washington; 
 Together with the easement described in
instrument titled “Cantilever Easement” recorded under King County, Washington Recording No. 20040129000141, as amended by instrument recorded under King County, Washington Recording No. 20060315001287. 

Situate in the City of Seattle, County of King, State of Washington. 

  
 Exhibit A -
Page 1 

 EXHIBIT B 
 LAYOUT OF THE PREMISES 

  
 Exhibit B -
Page 1 

  
 

 

 EXHIBIT C 
 Work Letter 
 1. Base Building. Landlord shall design and
construct or install those items listed on attached Schedule C-1 attached hereto (the “Landlord’s Work”) without cost or expense to Tenant. 
 2. Landlord’s Compliance. The Landlord’s Work shall comply in all respects with the following: (a) the Building Codes of the City of Seattle, King County, and the State of
Washington and any other codes, ordinances, and regulations, as each may apply; and (b) the Americans with Disability Act (“ADA”). Landlord shall obtain a one (1) year warranty for the repair or replacement of any defects
in materials or workmanship in the Landlord’s Work. 
 3. TI Work. Any work to the Premises in addition to
Landlord’s Work is referred to herein as the “TI Work,” shall be furnished and installed within the Premises substantially in accordance with plans and specifications to be prepared by an architect selected by Tenant with
Landlord’s reasonable consent (the “Architect”), TI Work shall include, without limitation, the improvements described on Schedule C-2 attached hereto. All TI Work shall be approved by Landlord and Tenant in accordance
with this Exhibit C. Except for the Cash Allowance (as defined in Paragraph 14 below), the TI Work shall be furnished and installed at Tenant’s sole expense by the TI Contractor selected by Tenant from a list of building-approved
contractors as provided for herein. For purposes of this Lease, the cost of the TI Work shall include all costs associated with the design (except Landlord shall pay the first $3,274.65 of the Architect’s fees and costs [the “A&E
Allowance”]), permitting and construction of the TI Work, including, without limitation, all building permit fees, payments to design consultants for services and disbursements (including costs associated with design changes required by the
Architect or its errors and omissions insurance carrier), all preparatory work (if any), premiums for insurance and bonds (if any), such inspection fees (including City of Seattle inspections) as Landlord or Tenant may incur, reimbursements to
Landlord for permit and other fees which Landlord may actually incur that are fairly attributable to the TI Work, the cost of installing any additional HVAC or electrical capacity or telecommunications capacity required by Tenant over and above the
Landlord’s Work and the cost of Tenant’s third party project manager. 
 4. Design of the TI
Work. The Architect shall design all of the TI Work, complete the space plan and working drawings for the TI Work and obtain all required building or other permits to allow construction of the TI Work in the Premises. The Architect shall, on
Tenant’s behalf, retain consultants satisfactory to Landlord to design these components of the TI Work. Except for the portion to be paid from the A&E Allowance, the cost of preparing all plans and specifications for the TI Work (including
without limitation the space plan for the Premises and the working drawings for the TI Work), the cost of preparing any changes thereto (except as provided to the contrary in Paragraph 7 below regarding Landlord changes) and the cost of
obtaining all required permits therefor shall be paid by Tenant. 

  
 EXHIBIT C -
PAGE 1 

 5. Space Plan. As used herein, “Space Plan” means a floor
plan, drawn to scale, showing (1) demising walls, corridor doors, interior partition walls and interior doors, including any special walls, glass partitions or special corridor doors, (2) any restrooms, kitchens, computer rooms, file rooms
and other special purpose rooms, and any sinks or other plumbing facilities, or other special facilities or equipment, (3) any communications systems, indicating telephone and computer outlet locations, and (4) any other details or
features required to reasonably delineate the TI Work to be performed. The Space Plan shall be for the general information of Landlord, and to assist in the coordination of the design and construction of the TI Work. 

6. Submittal of Working Drawings. Tenant shall deliver to Landlord three (3) sets of blue-lined prints of Working
Drawings for the TI Work. As used herein, “Working Drawings” means fully dimensioned architectural construction drawings and specifications, and any required engineering drawings (including mechanical, electrical, plumbing,
air-conditioning, ventilation and heating), and shall include any applicable items described above for the Space Plan, and if applicable: (1) electrical outlet locations, circuits and anticipated usage therefor, (2) reflected ceiling plan,
including lighting, switching, and any special ceiling specifications, (3) duct locations for heating, ventilating and air-conditioning equipment, (4) details of all millwork, (5) dimensions of all equipment and cabinets to be built in,
(6) furniture plan showing details of space occupancy, (7) keying schedule, (8) lighting arrangement, (9) location of print machines, equipment in lunch rooms, concentrated file and library loadings and any other equipment or
systems (with brand names wherever possible) which require special consideration relative to air-conditioning, ventilation, electrical, plumbing, structural, fire protection, life-fire-safety system, or mechanical systems, (10) special heating,
ventilating and air conditioning equipment and requirements, (11) weight and location of heavy equipment, and anticipated loads for special usage rooms, (12) demolition plan, (13) partition construction plan, (14) type and color
of floor and wall-coverings, wall paint and any other finishes, and any other details or features required to completely delineate the TI Work to be performed. Tenant shall also deliver to Landlord a diskette containing the Working Drawings in the
AutoCAD format (or other computer assisted design format approved by Landlord) (“CAD”). The Working Drawings shall be consistent with, and a logical extension of, the Space Plan approved by Landlord. Within ten (10) business
days after receipt of the draft Working Drawings from Tenant, Landlord shall return to Tenant one (1) set of the Working Drawings marked “Approved,” “Approved as Noted” or “Disapproved as Noted, Revise and
Resubmit”. Failure to respond to the Working Drawings within the ten (10) business day period shall constitute approval by Landlord of the design or specifications shown thereon. 

(a) If the Working Drawings are returned to Tenant marked “Approved,” the Working Drawings, as so submitted, shall be deemed
approved by Landlord. 
 (b) If the Working Drawings are returned to Tenant marked “Approved as Noted,” the draft of
the Working Drawings shall be deemed approved by Landlord; provided, however, in preparing the final approved Working Drawings, Tenant shall cause the Architect to incorporate Landlord’s noted items into the Working Drawings.

  
 EXHIBIT C -
PAGE 2 

 (c) If the Working Drawings are returned to Tenant marked “Disapproved as Noted, Revise
and Resubmit,” Tenant shall cause such Working Drawings to be revised, taking into account the reasons for Landlord’s disapproval (which shall be noted in writing) and shall resubmit revised plans to Landlord for review. The same procedure
shall be repeated until Landlord fully approves the Working Drawings. Landlord’s review of the Working Drawing shall be subject to Landlord’s approval or disapproval in Landlord’s reasonable discretion, consistent with a Class A
office building in greater Seattle. 
 (d) Tenant shall be solely responsible for: (i) the completeness of the Working
Drawings; (ii) the conformity of the Working Drawings with the existing conditions in the Building and the Premises and to the Base Building Plans provided by Landlord (including any changes in the Base Building Plans provided by Landlord to
Tenant); (iii) the compatibility of the Working Drawings with the Landlord’s Work as depicted on the Base Building Plans, including the mechanical, plumbing, life safety or electrical systems of the Building; and (iv) the compliance
of the Working Drawings with all applicable regulations, laws, ordinances, codes and rules, including, without limitation, the Americans With Disabilities Act, with respect to the Premises. 

(e) In the event the Working Drawings are returned to Tenant under subsections (b) or Lc) above, Landlord shall make itself
available upon reasonable notice to meet with Tenant and the Architect to discuss any noted items and attempt to resolve same cooperatively, prior to the Deadline for such event described in Paragraph 19 below. 

(f) When the Working Drawings are approved by Landlord and Tenant, the parties shall each acknowledge their approval by signing or
initialing each sheet of the Working Drawings and the Architect shall promptly submit the Working Drawings to the City of Seattle for permitting. Tenant shall also deliver to Landlord a diskette containing the approved Working Drawings in the CAD
format. 
 7. Certain Modifications. Tenant shall cause the Space Plan and Working Drawings to be prepared by the
Architect, submitted to Landlord and, where required, revised so as to obtain the approval of the Working Drawings by Landlord, In the event Landlord changes or modifies the Base Building Plans subsequent to Landlord’s delivery of the Base
Building Plans to Tenant and such modified plans require material changes to the Working Drawings (other than changes required by the City of Seattle), then Landlord shall be responsible for the actual design costs incurred in connection with
modifying the Working Drawings to the extent caused by such changes to the Base Building Plans. 
 8. Landlord’s
Review Responsibilities. Tenant acknowledges and agrees that Landlord’s review and approval, if granted, of the Space Plan and the Working Drawings is solely for the benefit of Landlord and to protect the interests of Landlord in the
Building and the Premises, and Landlord shall not be the guarantor of, nor in any way or to any extent responsible for, the correctness or accuracy of any Space Plan or Working Drawings or of the compliance of the Space Plan or Working Drawings with
applicable regulations, laws, ordinances, codes and rules or of the conformance or compatibility of the Space Plan or Working Drawings with existing conditions in the Building or Premises or with the Landlord’s Work to be constructed by
Landlord. 

  
 EXHIBIT C -
PAGE 3 

 9. Existing Conditions. Tenant shall be solely responsible for the completeness of
all plans for the TI Work and for conformity of the plans with the Base Building Plans (including any changes thereto provided by Landlord to Tenant, subject to potential reimbursement of redesign costs as provided in Paragraph 7 above) and
existing conditions in the Building and the Premises. Tenant shall ensure that the Architect inspects the Premises to verify existing conditions and construction prior to the start of construction of the TI Work. Tenant shall notify Landlord
immediately following such inspection of any discrepancy discovered by Tenant or the Architect between existing conditions and/or construction and the Base Building Plans; otherwise, Landlord shall be conclusively deemed to have met its obligations
relating to the construction of the Premises to the extent the Premises are complete as of the date of such inspection. In the absence of such notice, Tenant shall be responsible for any modifications to the Working Drawings necessary to accommodate
existing conditions and construction. Subject to the terms of Paragraph 18 below, Tenant shall be solely responsible for, and Landlord specifically reserves the right to require Tenant to make at any time and from time to time during the
construction of the Ti Work, any changes to the Working Drawings necessary (a) to obtain any permit, (b) to comply with all applicable regulations, laws, ordinances, codes and rules, (c) to achieve the compatibility, as reasonably
determined by Landlord, of the Working Drawings with the Landlord’s plans for Landlord’s Work, or (d) to avoid impairing or voiding any third-party warranties. 
 10. Pricing the T1 Work. Unimark Construction Group (the “Building Contractor”) is constructing the Landlord’s Work and may be able to offer timing and cost benefits for
construction of the TI Work. However, Tenant may elect to solicit bids from other general contractors on a list of Landlord’s approved general contractors for the TI Work if, in Tenant’s opinion, the Building Contractor’s bid is not
acceptable. 
 (a) Initial Bids. Tenant shall select the contractor (the “TI Contractor”), taking
into account, in Tenant’s good faith judgment, all factors associated with the bids, including without limitation, price, quality of materials to be used, estimated completion time, and Landlord’s preference if any, and shall notify
Landlord of the amount of the Initial Bid and the TI Contractor selected by Tenant. The TI Contractor may or may not be the Building Contractor. 
 (b) Trade Bids. In order for Landlord to ensure the proper coordination of the Landlord’s Work, the T1 Contractor shall either engage the following subcontractors or engineering firms
for the TI Work (the contract or subcontract for such work being hereinafter referred to as a “Major Subcontract”) or, if another subcontractor is engaged under a Major Subcontract, permit the following subcontractors to perform a
peer review of the drawings and engineering prepared for the following areas of work: (i): Electrical: Coffman Engineers; (ii) Mechanical/Plumbing/Piping: McKinstry; (iii) Fire Protection: Patriot Fire Protection; (iv) Structural:
Magnusson Klemencic Associates; and (v) Low Voltage Systems: Hargis Engineers. The cost of such peer review shall be borne by Tenant. Tenant shall cause its Architects and consultants to work cooperatively with Landlord and its architects and
consultants to assure that Landlord is satisfied that any changes proposed by Tenant as part of the TI Work will not adversely affect the operation of the Building. 

  
 EXHIBIT C PAGE
4 

 (c) Tenant Approval Rights; Non-Responsibility of Landlord. After accepting
bids pursuant to Paragraphs 10(a) and (b) above, Tenant shall enter into a lump sum price or guaranteed maximum price contract (the “TI Construction Contract”) with the TI Contractor which shall incorporate the terms of
any bids received from subcontractors. 
 (d) Bids to Include Entire Initial Premises. The Initial Bid and
the bids by subcontractors shall cover the entire TI Work package for the TI Work. 
 (e) Administrative Fee.
Intentionally Omitted. 
 (f) Payment of Tenant’s Share of Costs. On or before Tenant’s execution of the
TI Construction Contract, Tenant shall deposit with Landlord, for payment in accordance with Paragraph 13 below, an amount (the “Construction Payment”) equal to the difference between the (i) Cash Allowance (defined in
Paragraph 14 below), and (ii) the lump sum price under the TI Construction Contract. Tenant shall not authorize construction of the TI Work to commence until Landlord has received the Construction Payment. The Construction Payment shall
be increased by the total cost of any change order approved or otherwise required under Paragraph 15 below and such increased payment shall be deposited by Tenant with Landlord within fifteen (15) days following approval of such change
order by the parties or the date of Landlord’s delivery of change orders otherwise required under Paragraph 15. Reimbursement of Tenant for payments Tenant has made under the TI Construction Contract shall first be made by Landlord from
the Construction Payment. Landlord shall reimburse Tenant upon receipt by Landlord of (a) written evidence of Tenant’s payment of the TI Contractor, and (b) unconditional lien releases from the TI Contractor and the Major
Subcontractors for all work performed through, and including, that work covered by Landlord’s reimbursement. 
 11.
Administration of Work. 
 (a) Tenant’s project manager will administer the construction of the TI Work in
accordance with the final, approved and permitted Working Drawings. 
 (b) Installation of office furniture, telecommunications
equipment and wiring and cabling shall not be considered part of the TI Work, and shall be separately designed, constructed, installed or provided by Tenant in accordance with the Working Drawings. Connection of installed work stations to the
Building’s electrical system shall be a part of the TI Work. 
 12. Obligation of Tenant to Provide As Built Plans;
Assignment of Warranties. Within thirty (30) days of Substantial Completion, Tenant shall cause the Architect to provide Landlord with (a) two complete sets of plans and specifications reflecting the actual conditions of the TI Work as
constructed in the Premises, together with a copy of such plans on diskette in the CAD format; (b) two (2) complete O&M manuals for the TI Work; and (c) full lien waivers from the TI Contractor and all subcontractors and material
suppliers performing the TI Work. 

  
 EXHIBIT C -
PAGE 5 

 13. Tenant Payments. After the Construction Payment has been completely disbursed,
Landlord shall reimburse Tenant from the Cash Allowance during the course of construction of the TI Work. If for any reason (such as change orders to the TI Construction Contract arising from changes under Paragraph 14 below or the costs of
the TI Work) the Cash Allowance and Construction Payment are not adequate to make all required payments, Tenant shall deposit with Landlord within fifteen (15) days after billing by Landlord such additional required amount, as determined by
Landlord. If for any reason the Construction Payment is not fully utilized to make all required payments, Landlord shall, upon completion of the TI Work, refund to Tenant any unused portion of the Construction Payment. Landlord shall be entitled to
order suspension of construction of the TI Work and to declare Tenant in default in accordance with the terms of the Lease if payment by Tenant of any amounts required to be deposited by Tenant under this Exhibit C are not paid or deposited
when due and such failure continues for a period of five (5) days after Tenant received written notice of the alleged default. The Architect shall be responsible for timely completing and delivering to Landlord and the TI Contractor all
completion certificates required for payments under the TI Construction Contract and Tenant’s contract with the Architect shall so provide. 
 14. Cash Allowance. 
 (a) Landlord shall provide a total of $654,930
($30.00 per square foot of rentable area in the Premises) (the “Cash Allowance”) toward the payment for the design, permitting and construction of the TI Work in the Premises, The Cash Allowance shall be used solely for the
construction of the TI Work above the Landlord’s Work; provided, however, to the extent not required for reimbursement of Tenant for payments made or to be made by Tenant under the TI Construction Contract, Tenant may utilize up to $218,310
($10.00 per square foot of rentable area in the Premises) of the Cash Allowance for moving costs and payment of Monthly Base Rent. Except as provided herein, the Cash Allowance must be spent on items that, at Landlord’s option, shall remain in
the Premises on Lease termination and may not be applied to the cost of removable trade fixtures, cabling, equipment or furniture costs. 
 (b) The obligation of Landlord to make any one or more payments pursuant to the provisions of this Paragraph 14 shall be suspended without further act of the parties during any such time as there
exists a material default by Tenant under the Lease. Nothing in this Paragraph 14 shall affect the obligations of Tenant under the Lease with respect to any alterations, additions and improvements within the Premises, including, without
limitation, any obligation to obtain the prior written consent of Landlord thereto. 
 15. Modifications/Change Orders.

 (a) Changes Requested by Tenant. Any changes to the TI Work requested by the Tenant after final Landlord approval of
the Working Drawings (“Additional Work”) shall be subject to Landlord’s prior approval and shall, upon approval by Landlord, be incorporated into the Working Drawings by the Architect. Any Additional Work shall be completed at
Tenant’s sole cost and expense, including without limitation costs associated with: (i) revisions to the Working Drawings; (ii) construction of the Additional Work; (iii) required permits, governmental fees, and inspections;
(iv) Washington State sales tax; (v) as-built record documentation; and (vi) any delays resulting from the performance of the Additional Work. Under no circumstances shall the Commencement Date change as a result of Tenant’s
Additional Work. 

  
 EXHIBIT C -
PAGE 6 

 (b) Contractor Required Changes. With respect to any change orders required by
the Tl Contractor in order to proceed with construction of the TI Work, within five (5) business days after delivery to Tenant of such change order (which shall include the estimated additional costs, if any), Tenant shall either approve or
disapprove the change order by written notice to Landlord. If Tenant approves the change order Tenant shall deposit any additional sums required thereunder as provided under Paragraph 13. If Tenant disapproves the change order, Tenant shall
specifically identify in its notice the nature and extent of Tenant’s disapproval and shall, within fifteen (15) days of receipt of such change order, deposit with Landlord any additional sums required thereunder, which shall be released
upon the earlier of: (i) Tenant’s written consent thereto, or (ii) completion of an audit and any arbitration under the TI Construction Contract as permitted under Paragraph 17(b) below, it being the understanding of the
parties that any dispute as to the necessity for or amount of such change orders is to be resolved with the TI Contractor by agreement or through such process. 
 (c) Other Required Changes. With respect to any change orders required by reason of the errors or omissions of the Architect or its consultants or otherwise required by the City of Seattle,
Tenant shall deposit any additional sums required thereunder as provided under Paragraph 13. 
 16. Designation of
Construction Representatives. Tenant hereby designates Garrett Billings of Jones Lang LaSalle Americas, Inc. as its initial representative in connection with the design and construction of the T1 Work and Landlord shall be entitled to rely upon
the decisions and agreements made by such representative as binding upon Tenant. Tenant may change its designated representative upon written notice to Landlord. Landlord hereby appoints Dan Novack, Jeremy Richmond and Cyndi Sundby of Unico
Properties, LLC to act on its behalf and represent its interests with respect to all matters requiring Landlord action in this Exhibit C. Tenant hereby expressly recognizes and agrees that no other person claiming to act on behalf of Landlord
is authorized to do so. No consent, authorization or other action shall bind Landlord or Tenant unless in writing and signed by the aforementioned persons. If Landlord or Tenant complies with any request or direction presented to it by anyone else
claiming to act on behalf of the other party, such compliance shall be at such party’s sole risk and responsibility and shall not in any way alter or diminish the obligations and requirements created and imposed by this Exhibit. Tenant shall
notify Landlord of all construction meetings relating to the TI Work. Landlord shall have the right to attend all meetings of Tenant and the TI Contractor and its subcontractors, coordination meetings between the Building Contractor and the T1
Contractor regarding the TI Work, and any meetings with the Building Contractor regarding the Landlord’s Work involving items that directly impact the TI Work or the schedule for construction thereof, and the TI Construction Contract shall so
provide. 

  
 EXHIBIT C -
PAGE 7 

 17. Substantial Completion; Audit of Contractor. 

(a) Substantial Completion. As used herein, “Substantial Completion” shall mean (and the Premises shall be deemed
“Substantially Complete”) when (i) the City of Seattle has given final approval in writing that all TI Work under the construction permit has been completed, and (ii) installation of the TI Work has occurred in accordance with
the Working Drawings, subject only to punch-list items described below. Substantial Completion shall be deemed to have occurred even if a “punch-list” or similar corrective work remains to be completed. Upon Substantial Completion,
Landlord and Tenant shall walk the Premises and create a punch-list of incomplete and defective items. Tenant shall cause the TI Contractor to complete all punch-list items, except for those punch-list items related to the Landlord’s Work which
Landlord shall proceed diligently to complete, or cause its contractor to complete. All punchlist items must be completed within forty five (45) days. 
 (b) Audit of Contractor. The TI Construction Contract shall provide that Landlord and Tenant shall have a right, within a reasonable period of time following Substantial Completion of the Premises,
to conduct an audit of the books and records of the Ti Contractor to confirm the costs actually incurred with respect to the construction of the TI Work, the allocation of costs between the Landlord’s Work and the TI Work and similar matters
under the TI Construction Contract. The results of the audit shall be made available to both Landlord and Tenant. The TI Construction Contract shall provide for binding arbitration of all disputes arising over change orders or from the audit. Tenant
shall be responsible for the costs of such audit and any arbitration relating thereto, subject to reimbursement from the TI Contractor as may be provided in the TI Construction Contract. Tenant shall be responsible for and entitled to any
adjustments to the cost of the TI Work that may be made by reason of such audit. 

  
 EXHIBIT C -
PAGE 8 

 SCHEDULE C-1 

Landlord’s Work 

Landlord agrees that it will, at its sole cost and expense, apply for the permit and upon its receipt commence to remove the stairway between Floor 19
and Floor 20 and pursue the completion (with the exception of delays or conditions beyond the Landlord’s control) in accordance with Landlord’s or Landlord’s architect’s designs and plans 

  
 EXHIBIT C -
PAGE 9 

 

 

 EXHIBIT D 
 COMMENCEMENT DATE CERTIFICATE 
 This Commencement Date certificate
is entered into by Landlord and Tenant pursuant to Article 3.1 of the Lease. 
 1. DEFINITIONS. In this certificate the
following terms have the meanings given to them in the Lease: 
  

	 	(a)	Landlord: THE NORTHWESTERN MUTUAL LIFE INSURANCE COMPANY 

  

	 	(b)	Tenant: 

  

	 	(c)	Lease: Office Lease dated [date] between Landlord and Tenant. 

  

	 	(d)	Premises: 

  

	 	(e)	Building Address: 

  

	 	(f)	Guarantor: 

 2. CONFIRMATION OF
LEASE COMMENCEMENT: Landlord and Tenant confirm that the Commencement Date of the Lease
is                             and the Expiration Date
is                                 and that Article 1.1 of the Lease is amended
accordingly. 
 3. Tenant acknowledges that (a) it is in possession of the Premises, (ii) the Lease is in full force
and effect, (c) to Tenant’s actual knowledge, Landlord is not in default of any of its obligations under the Lease, and (d) the Premises are accepted by Tenant as having been completed in accordance with the provisions of the Lease,
except for punch-list items which must be completed in accordance with the Lease. 
 Landlord and Tenant have executed this
Commencement Date certificate as of the dates set forth below. 
 TENANT: 

 

			
	 	 
	By:	 	 
	Its:	 	 
		
	Date:	 	 

  
 Exhibit D -
Page 1 

 LANDLORD: 

 

			
	THE NORTHWESTERN MUTUAL LIFE INSURANCE COMPANY, a Wisconsin corporation
		
	By:	 	Northwestern Investment Management Company, LLC, a Delaware limited liability company, its wholly-owned affiliate and authorized representative
		
	By:	 	 
	
	Its: Managing Director

  
 Exhibit D -
Page 2 

 EXHIBIT E 

RULES AND REGULATIONS 
 (1) Access to Project. On Saturdays, Sundays and Holidays, and on other days between the hours of 6:00 P.M. and 6:00 A.M. the following day, or such other hours as Landlord shall determine from
time to time, access to and within the Project and/or to the passageways, lobbies, entrances, exits, loading areas, corridors, elevators or stairways and other areas in the Project may be restricted and access gained by use of a key to the outside
doors of the Project, or pursuant to such security procedures Landlord may from time to time impose. Landlord shall in all cases retain the right to control and prevent access to such areas by persons engaged in activities which are illegal or
violate these Rules, or whose presence in the judgment of Landlord shall be prejudicial to the safety, character, reputation and interests of the Project and its tenants (and Landlord shall have no liability in damages for such actions taken in good
faith). No Tenant and no employee or invitee of Tenant shall enter areas reserved for the exclusive use of Landlord, its employees or invitees or other persons. Tenant shall keep doors to corridors and lobbies closed except when persons are entering
or leaving. 
 (2) Signs. Tenant shall not paint, display, inscribe, maintain or affix any signs, placard,
picture, advertisement, name, notice, lettering or direction on any part of the outside or inside of the Building or Project, or on any part of the inside of the Premises which can be seen from the outside of the Premises without the prior consent
of Landlord, and then only such name or names or matter and in such color, size, style, character and material, and with professional designers, fabricators and installers as may be first approved or designated by Landlord in writing. Landlord shall
prescribe the suite number and identification sign for the Premises (which shall be prepared and installed by Landlord at Tenant’s expense). Landlord reserves the right to remove at Tenant’s expense all matter not so installed or approved
without notice to Tenant. 
 (3) Window and Door Treatments. Tenant shall not place anything or allow anything to
be placed in the Premises near the glass of any door, partition, wall or window which may be unsightly from outside the Premises, and Tenant shall not place or permit to be placed any item of any kind on any window ledge or on the exterior walls.
Blinds, shades, awnings or other forms of inside or outside window ventilators or similar devices, shall not be placed in or about the outside windows or doors in the Premises except to the extent, if any, that the design, character, shape, color,
material and make thereof is first approved or designated by the Landlord. Tenant shall not install or remove any solar tint film from the windows. 
 (4) Lighting and General Appearance of Premises. Landlord reserves the right to designate and/or approve in writing all internal lighting that may be visible from the public, common or exterior
areas. The design, arrangement, style, color, character, quality and general appearance of the portion of the Premises visible from public, common and exterior areas, and contents of such portion of the Premises, including furniture, fixtures,
signs, art work, wall coverings, carpet and decorations, and all changes, additions and replacements thereto shall at all times have a neat, professional, attractive, first class office appearance. 

  
 Exhibit E -
Page 1 

 (5) Project and/or Building Tradename, Likeness, Trademarks. Tenant shall not in any
manner use the name of the Project or Building for any purpose, or use any tradenames or trademarks used by Landlord, any other tenant, or its affiliates, or any picture or likeness of the Project for any purpose other than that of the business
address of Tenant, in any letterheads, envelopes, circulars, notices, advertisements, containers, wrapping or other material. 
 (6) Deliveries and Removals. Furniture, freight and other large or heavy items, and all other deliveries may be brought into the Project only at times and in the manner designated by Landlord, and
always at the Tenant’s sole cost, responsibility, and risk. Landlord may inspect items brought into the Project or Premises with respect to weight or dangerous nature or compliance with this Lease or Laws. Landlord may (but shall have no
obligation to) require that all furniture, equipment, cartons and other items removed from the Premises or the Project be listed and a removal permit therefor first be obtained from Landlord. Tenant shall not take or permit to be taken in or out of
other entrances or elevators of the Project, any item normally taken, or which Landlord otherwise reasonably requires to be taken, in or out through service doors or on freight elevators. Landlord may impose reasonable charges and requirements for
the use of freight elevators and loading areas, and reserves the right to alter schedules without notice. Any hand-carts used at the Project shall have rubber wheels and sideguards, and no other material handling equipment may be brought upon the
Project without Landlord’s prior written approval. 
 (7) Outside Vendors. Tenant shall not obtain for use
upon the Premises ice, drinking water, vending machine, towel, janitor and other services, except from Persons designated or approved by Landlord. Any person engaged by Tenant to provide any other services shall be subject to scheduling and
direction by the manager or security personnel of the Project. Tenant’s vendors must use freight elevators and service entrances and shall provide building management with a certificate of insurance that complies with the insurance requirements
of building management. 
 (8) Overloading Floors; Vaults. Tenant shall not overload any floor or part thereof in
the Premises, or Project, including any public corridors or elevators therein bringing in or removing any large or heavy items, and Landlord may prohibit, or direct and control the location and size of, safes and all other heavy items and require at
Tenant’s expense supplementary supports of such material and dimensions as Landlord may deem necessary to properly distribute the weight. Subject to the Landlord’s approval of its location and Landlord’s receipt and approval of a
report from Landlord’s structural engineer approving said location, Landlord acknowledges that Tenant will maintain on the Premises a fire proof storage space for high density filing which will be heavier than normal office furniture or
equipment. 
 (9) Locks and Keys. Tenant shall use such standard key system designated by Landlord on all keyed
doors to and within the Premises, excluding any permitted vaults or safes (but Landlord’s designation shall not be deemed a representation of adequacy to prevent unlawful entry or criminal acts, and Tenant shall maintain such additional
insurance as Tenant deems advisable for such events). Tenant shall not attach or permit to be attached additional locks or similar devices to any door or window, change existing locks or the mechanism thereof, or make or permit to be made any keys
for any door other than those provided by Landlord. If more than two keys for one lock are desired, Landlord will provide them upon payment of Landlord’s charges. In the event of loss of any keys furnished by Landlord, Tenant shall pay

  
 Exhibit E -
Page 2 

 
Landlord’s reasonable charges therefor. The term “key” shall include mechanical, electronic or other keys, cards and passes. Landlord shall not be liable for the consequences of
admitting by pass key or refusing to admit to the Premises the Tenant, Tenant’s agent or employees or other persons claiming the right of admittance. 
 (10) Utility Closets and Connections. Landlord reserves the right to control access to and use of, and monitor and supervise any work in or affecting, the “wire” or telephone, electrical,
plumbing or other utility closets, and any changes, connections, new installations, and wiring work relating thereto (or Landlord may engage or designate an independent contractor to provide such services). Tenant shall obtain Landlord’s prior
written consent for any such access, use and work in each instance, and shall comply with such requirements as Landlord may impose, and the other provisions of the Lease respecting electric installations and connections, telephone Lines and
connections, and alterations generally. Tenant shall have no right to use any electrical closets, mechanical shafts, broom closets, storage closets, janitorial closets, or other such closets, rooms and areas whatsoever. Tenant shall not install in
or for the Premises any equipment which requires more electric current than Landlord is required to provide under this Lease, without Landlord’s prior written approval, and Tenant shall ascertain from Landlord the maximum amount of load or
demand for or use of electrical current which can safely be permitted in and for the Premises, taking into account the capacity of electric wiring in the Project and the Premises and the needs of tenants of the Project, and shall not in any event
connect a greater load than such safe capacity. 
 (11) Plumbing Equipment. The toilet rooms, urinals, wash bowls,
drains, sewers and other plumbing fixtures, equipment and lines shall not be misused or used for any purpose other than that for which they were constructed and no foreign substance of any kind whatsoever shall be thrown therein. 

(12) Trash. All garbage, refuse, trash and other waste shall be kept in the kind of container, placed in the areas, and prepared
for collection in the manner and at the times and places specified by Landlord, subject to Lease provisions respecting Hazardous Materials. Landlord reserves the right to require that Tenant participate in any recycling program designated by
Landlord. 
 (13) Alcohol, Drugs, Food and Smoking. Landlord reserves the right to exclude or expel from the
Project any person who, in the judgment of Landlord, is intoxicated or under the influence of liquor or drugs, or who shall in any manner do any act in violation of any of these Rules. Tenant shall not at any time manufacture or sell any spirituous,
fermented, intoxicating or alcoholic liquors on the Premises, nor permit the same to occur. Tenant shall not at any time cook, sell, purchase or give away (other than food that has been catered for a Tenant sponsored function and the food is given
away to Tenant’s employees), food in any form by or to any of Tenant’s agents or employees or any other parties on the Premises, nor permit any of the same to occur (other than in microwave ovens and coffee makers properly maintained in
good and safe working order and repair in lunch rooms or kitchens for employees as may be permitted or installed by Landlord, which does not violate any Laws or bother or annoy any other tenant. Tenant and its employees shall not smoke tobacco on
any part of the Project (including exterior areas) except those areas, if any, that are designated or approved as smoking areas by Landlord. 

  
 Exhibit E -
Page 3 

 (14) Use of Common Areas; No Soliciting. Tenant shall not use the common areas,
including areas adjacent to the Premises, for any purpose other than ingress and egress, and any such use thereof shall be subject to the other provisions of this Lease, including these Rules. Without limiting the generality of the foregoing, Tenant
shall not allow anything to remain in any passageway, sidewalk, court, corridor, stairway, entrance, exit, elevator, parking or shipping area, or other area outside the Premises. Tenant shall not use the common areas to canvass, solicit business or
information from, or distribute any item or material to, other tenants or invitees of the Project. Tenant shall not make any room-to-room canvass to solicit business or information or to distribute any item or material to or from other tenants of
the Building or Project and shall not exhibit, sell or offer to sell, use, rent or exchange any products or services in or from the Premise unless ordinarily embraced within the Tenant’s use of the Premises expressly permitted in the Lease.

 (15) Energy and Utility Conservation. Tenant shall not waste electricity, water, heat or air conditioning or other
utilities or services, and agrees to cooperate fully with Landlord to assure the most effective and energy efficient operation of the Project and shall not allow the adjustment (except by Landlord’s authorized Project personnel) of any
controls. Tenant shall not obstruct, alter or impair the efficient operation of the systems and equipment within the Project, and shall not place any item so as to interfere with air flow. Tenant shall keep corridor doors closed and shall not open
any windows, except that if the air circulation shall not be in operation, windows which are operable may be opened with Landlord’s consent. If reasonably requested by Landlord (and as a condition to claiming any deficiency in the
air-conditioning or ventilation services provided by Landlord), Tenant shall close any blinds or drapes in the Premises to prevent or minimize direct sunlight. 
 (16) Unattended Premises. Before leaving the Premises unattended, Tenant shall close and securely lock all doors or other means of entry to the Premises and shut off all lights and water faucets in
the Premises (except heat to the extent necessary to prevent the freezing or bursting of pipes). 
 (17)
Going-Out-Of-Business Sales and Auctions. Tenant shall not use, or permit any other party to use, the Premises for any distress, fire, bankruptcy, close-out, “lost our lease” or going-out-of-business sale or auction. Tenant shall not
display any signs advertising the foregoing anywhere in or about the Premises. This prohibition shall also apply to Tenant’s creditors. 
 (18) Labor Harmony. Tenant shall not use (and upon notice from Landlord shall cease using) contractors, services, workmen, labor, materials or equipment, or labor and employment practices that, in
Landlord’s good faith judgment, may cause strikes, picketing or boycotts or disturb labor harmony with the workforce or trades engaged in performing other work, labor or services in or about the Project. 

(19) Prohibited Activities. Tenant shall not: (i) use strobe or flashing lights in or on the Premises, (ii) install or
operate any internal combustion engine, boiler, machinery, refrigerating, heating or air conditioning equipment in or about the Premises unless approved by Landlord as may be anticipated under the terms of this lease, (iii) use the Premises for
housing, lodging or sleeping purposes or for the washing of clothes, (iv) place any radio or television antennae other than inside of the Premises or as anticipated under the applicable clause entitled “Roof

  
 Exhibit E -
Page 4 

 
License”, (v) operate or permit to be operated any musical or sound producing instrument or device which may be heard outside the Premises, (vi) use any source of power other than
electricity, (vii) operate any electrical or other device from which may emanate electrical, electromagnetic, energy, microwave, radiation or other waves or fields which may interfere with or impair radio, television, microwave, or other
broadcasting or reception from or in the Project or elsewhere, or impair or interfere with computers, faxes or telecommunication lines or equipment at the Project or elsewhere, or create a health hazard, (viii) bring or permit any bicycle or
other vehicle within the elevators or other common areas shared with other tenants (except where already designated for such use), or dog (except in the company of a blind person) or other animal or bird in the Premises or Building, (ix) make
or permit objectionable noise, vibration or odor to emanate from the Premises, (x) do anything in or about the Premises, Building or Project that is illegal, immoral, obscene, pornographic, or anything that may in Landlord’s good faith
opinion create or maintain a nuisance, cause physical damage to the Premises or Project, interfere with the normal operation of the systems and equipment within the Project, impair the appearance, character or reputation of the Premises or Project,
create waste to the Premises or Project, cause demonstrations, protests, loitering, bomb threats or other events that may require evacuation of the Building, (xi) advertise or engage in any activities which violate any code of ethics or
licensing requirements of any professional or business organization, (xii) throw or permit to be thrown or dropped any item from any window or other opening in the Project, (xiii) use the Premises for any purpose, or permit upon the
Premises or Project anything, that may be dangerous to persons or property (including firearms or other weapons (whether or not licensed or used by security guards) or any explosive or combustible items or materials) (xiv) place vending or game
machines in the Premises, except vending machines for employees which shall be at Tenant’s sole cost and expense and only upon prior notice to and consent of Landlord, (xv) adversely affect the indoor air quality of the Premises or
Project, (xvi) use the Premises for cooking or food preparation other than preparation of coffee, tea and similar beverages, or customary microwave use, for Tenant and its employees, or (xvii) do or permit anything to be done upon the
Premises or Project in any way tending to disturb, bother, annoy or interfere with Landlord or any other tenant at the Project or the tenants of neighboring property, or otherwise disrupt orderly and quiet use and occupancy of the Project.

 (20) Transportation Management. Tenant shall comply with all present or future programs intended to manage parking,
transportation or traffic in and around the Project, and in connection therewith, Tenant shall take responsible action for the transportation planning and management of all employees located at the Premises by working directly with Landlord, any
governmental transportation management organization or any other transportation-related committees or entities. 

(21) Parking. Subject to any contrary provisions of this Lease, if the Project now or hereafter contains, or Landlord has obtained
the right to use for the Project, a parking garage, structure, facility or area, the following Rules shall apply therein: 
 (i) Parking shall be available in areas designated by Landlord from time to time, and for such daily or monthly charges as Landlord may establish from time to time. Parking for Tenant and its employees
and visitors shall be on a “first come, first served,” unassigned basis, in common with Landlord and other tenants at the Project, and their employees and visitors, and other Persons to whom Landlord shall grant the right or who shall
otherwise have the right to 

  
 Exhibit E -
Page 5 

 
use the same. However, in no event shall Tenant and Tenant’s employees and visitors use more spaces than the number derived by applying Tenant’s Proportionate Share (as defined in the
Lease) to the total number of unassigned spaces in the area or areas designated by Landlord from time to time to serve the Premises. In addition, Landlord reserves the right to: (a) adopt additional requirements or procedures pertaining to
parking, including systems with charges favoring carpooling, and validation systems, (b) assign specific spaces, and reserve spaces for small and other size cars, disabled persons, and other tenants, customers of tenants or other parties, and
(c) restrict or prohibit full size vans and other large vehicles. 
 (ii) Monthly fees shall be paid in advance prior to
the first of each month. Failure to do so will automatically cancel parking privileges, and incur a charge at the posted daily parking rate. No deductions from the monthly rate will be made for days on which the Garage is not used by Tenant or its
designees. In case of any violation of these rules, Landlord may also refuse to permit the violator to park, and may remove the vehicle owned or driven by the violator from the Project without liability whatsoever, at such violator’s risk and
expense. Landlord reserves the right to close all or a portion of the parking areas or facilities in order to make repairs or perform maintenance services, or to alter, modify, re-stripe or renovate the same, or if required by casualty, strike,
condemnation, act of God, Law or governmental requirement or guideline, termination or modification of any lease or other agreement by which Landlord obtained parking rights, or any other reason beyond Landlord’s reasonable control. In the
event access is denied for any reason, any monthly parking charges shall be abated to the extent access is denied, as Tenant’s sole recourse. 
 (iii) Hours shall be reasonably established by Landlord or its parking operator from time to time; cars must be parked entirely within the stall lines, and only small or other qualifying cars may be
parked in areas reserved for such cars; all directional signs, arrows and speed limits must be observed; spaces reserved for disabled persons must be used only by vehicles properly designated; washing, waxing, cleaning or servicing of any vehicle is
prohibited; every parker is required to park and lock his own car, except to the extent that Landlord adopts a valet parking system; parking is prohibited in areas: (a) not striped or designated for parking; (b) aisles; (c) where
“no parking” signs are posted; (d) on ramps; and (e) loading areas and other specially designated areas. Delivery trucks and vehicles shall use only those areas designated therefor. 

(iv) Parking stickers, key cards or any other devices or forms of identification or entry shall remain the property of Landlord. Such
devices must be displayed as requested and may not be mutilated in any manner. The serial number of the parking identification device may not be obliterated. Devices are not transferable and any device in the possession of an unauthorized holder
will be void. Loss or theft of parking identification, key cards or other such devices must be reported to Landlord or any garage manager immediately. Any parking devices reported lost or stolen which are found on any unauthorized car will be
confiscated and the illegal holder will be subject to prosecution. Lost or stolen devices found by Tenant or its employees must be reported to Landlord or the office of the garage immediately. 

(22) Responsibility for Compliance. Tenant shall be responsible for ensuring compliance with these Rules, as they may be amended,
by Tenant’s employees and as applicable, by Tenant’s agents, invitees, contractors, subcontractors, and suppliers. Tenant shall cooperate with any reasonable program or requests by Landlord to monitor and enforce the Rules, including
providing vehicle numbers and taking appropriate action against such of the foregoing parties who violate these provisions. 

  
 Exhibit E -
Page 6 

 EXHIBIT F 
 Intentionally Omitted 

  
 Exhibit F -
Page 1 

 EXHIBIT G 
 TENANT ESTOPPEL CERTIFICATE 
  

	RE:	Lease dated                        
(“Lease”) between The Northwestern Mutual Life Insurance Company (“Landlord”)
and                             (“Tenant”) for Suite (“Premises”) in a building
located at 1301 Second Avenue, Seattle, Washington and commonly known as the Russell Investments Center (“Building”). 

 The Tenant hereby certifies to Landlord, and to                         ,
a                        
(“                                 ”) that the following information
with respect to the Lease is true and correct: 
  

	1.	The Lease is in full force and effect and has not been modified or amended except as specifically set forth in Paragraph 4 below. There are no other agreements,
understandings, contracts or commitments of any kind with respect to the Lease or the Premises except as expressly provided in the Lease or in any amendment or supplement thereto set forth in Paragraph 4 below. 

 

	2.	The Tenant asserts no claim of default, offset or defense against rent or other charges payable by the maintenance of the property of which the Premises are a part. To
the best of Tenant’s knowledge and belief, there is no default by Landlord under the Lease and all commitments made by Landlord to Tenant to induce Tenant to enter into the Lease have been satisfied. 

 

	3.	All rent due under the Lease has been paid to the end of the current calendar month, which
is                     , and no rent due under the Lease has been paid more than one month in advance of its due date.

  

	4.	Dates of any Lease amendments or modifications: 

  

	5.	Current Monthly Base
Rent:                                        
                             

 

	6.	Lease Commencement
Date:                                        
                 

  

	7.	Lease Expiration
Date:                                        
         

  

	8.	The Lease contains no options to renew, first rights of refusal, options to expand, or options to terminate, except as
follows:                                       
                          

  

	9.	The Tenant has not assigned, or otherwise transferred its interest under the Lease, except as
follows:                                       
                              

 

	10.	Tenant is using the Premises only for those purposes specifically permitted under the Lease. 

 

	11.	Landlord is holding Tenant’s security deposit of
$                                         
    

  
 Exhibit G -
Page 1 

	12.	Tenant is not in default under the Lease nor, to Tenant’s actual knowledge, are there any conditions, or events which have occurred or which, with the passage of
time or the giving of notice or both, would constitute a default or breach. Tenant is current in the payment of all taxes, utilities, common area maintenance payments, and other charges required to be paid by the Tenant pursuant to the Lease, and
there exists no dispute relative to any such amounts. 

  

	13.	The improvements and space required to be furnished according to the Lease have been duly delivered by the Landlord and accepted by the Tenant.

  

	14.	The undersigned has all requisite authority to execute this Estoppel Certificate on behalf of Tenant. 

 

											
	 Dated:
	 	 	 		 	 	 		 	

  

			
	By:	 	 
	Its:	 	 

  
 Exhibit G -
Page 2 

 EXHIBIT H 
 IRE
                                         
                
 LANDLORD’S
SUBORDINATION AND CONSENT AGREEMENT 
 THIS LANDLORD’S SUBORDINATION AND CONSENT AGREEMENT
(“Agreement”) is entered into as of the              day of
                         , 20 between The Northwestern Mutual Life Insurance Company
(“Northwestern”),
                                         
    (“Tenant”) and
                                     (“Lender”).

 WITNESSETH: 
 WHEREAS, Northwestern and Tenant have entered into that certain lease agreement dated as of
                                         
                        (“Lease”), as the same may have been amended from time to time, pursuant to which Northwestern
has leased to Tenant certain space in a building located
at                                        
                             , all as more fully described in the Lease (“Premises”). The
Premises is located on and comprises a part of real property in which Northwestern is the owner of an interest (“Property). 
 WHEREAS, Lender has entered, or is about to enter, into a financing transaction with Tenant, as borrower, to secure financing. As a condition thereto, Tenant has granted, or is about to grant, to Lender a
security interest and lien upon personal property of the Tenant located at the Premises, which personal property may include equipment, trade fixtures, furnishings, machinery and inventory which is stored or otherwise located at the Premises but
shall specifically exclude Northwestern’s personal property, any and all property which is permanently affixed to the Premises and any and all property which is considered real property under applicable law (“Collateral”); and

 WHEREAS, Lender hereby requests that Northwestern (i) subordinate any liens, claims, demands or rights Northwestern may
have with respect to the Collateral, and (ii) consent to Lender’s right to enter upon the Premises to exercise its rights and remedies with respect to the Collateral. 

WHEREAS, Northwestern is willing to so subordinate its interest and consent to Lender’s rights with respect to the Collateral
subject to the terms of this Agreement. 
 NOW THEREFORE, in consideration of the mutual promises and agreements contained
herein, and other good and valuable consideration, the receipt and sufficiency of which each party hereto acknowledges, Lender, Tenant and Northwestern hereby agree as follows: 

1. Subject to the terms and conditions of this Agreement, Northwestern hereby subordinates any and all statutory or possessory liens,
claims, demands or rights which Northwestern has by statute, contract, operation of law or otherwise, on or in any of the Collateral to the lien or security interest of Lender therein. 

  
 Exhibit H -
Page 1 

 2. At any time prior to the termination of the Lease, and subject to its terms and
provisions, Lender or its agents may, in the company of Northwestern’s agent, enter upon the Premises during normal business hours to inspect, remove, transfer, take control of or make any other disposition of the Collateral; provided, however
that if Lender shall take any action with respect to the Collateral other than inspecting the same, then Lender shall first furnish Northwestern with a certified copy of an in-force UCC-1 security filing with respect to the same. Upon prior written
notice to Northwestern, Lender may advertise for sale and/or conduct private sales of the Collateral within the Premises (but not in any common areas of the Property including, without limitation, any parking areas located thereon) subject to
(i) Northwestern’s reasonable rules and regulations with respect thereto and (ii) the rights of other tenants at the Property. Lender shall not advertise such private sales at the Property. 

3. Other than any UCC-1 security filing which relates solely to the Collateral as referred to in paragraph 2., above, in no event shall
Lender cause to be recorded any financing statements or other UCC filings or their equivalents in connection with this Agreement or any financing agreements between Tenant and Lender which impair title to Northwestern’s fixtures or personal
property located on the Property or the Property. 
 4. Northwestern shall deliver to Lender a copy of any notice of termination
of the Lease which Northwestern has delivered to Tenant; provided, however, that Northwestern shall have no liability for failure to deliver such notice. Tenant shall deliver to Lender a copy of any notice of a default by Tenant of its obligations
under the Lease and Landlord shall allow Lender, at Lender’s option but without obligation, the opportunity to cure or cause Tenant to cure any such default within the applicable cure period, if any, set forth in the Lease. Northwestern shall
have no obligation whatsoever to provide Lender with any notice of Tenant’s default under the Lease. 
 5. In the event
that Northwestern takes possession of the Premises upon termination of the Lease, then Northwestern shall allow the Collateral to remain on the Premises for a period of thirty (30) days following such termination of the Lease (“Disposition
Period”) for purposes of Lenders inspection, removal, transferring or otherwise disposing of the same provided that and as conditions precedent thereto: 
 (i) Lender shall deliver written notice to Northwestern within five (5) business days of Lender’s receipt of notice of termination of the Lease requesting that Northwestern allow the Collateral
to so remain on the Property during the Disposition Period. Failure of Lender to deliver such notice to Northwestern shall be deemed to be Lender’s election to waive its rights with respect to the Collateral as set forth in this Agreement;

 (ii) Lender shall deliver to Northwestern, at the time of delivery of the notice referred to in Section (i) of this
paragraph 5., above, all sums due under the Lease relating to the Disposition Period, including, without limitation, monthly base rent and additional rent (regardless of the defined terms used to describe such payments in the Lease). Lender shall
also pay, directly to the providers thereof, all charges incurred for utilities serving the Premises during the Disposition Period; 

  
 Exhibit H -
Page 2 

 (iii) At any time prior to Lender’s entry onto the Property, Lender (or its contractor,
vendor or other third party claiming under Lender, as applicable) shall (a) obtain and keep in full force and effect, insurance as set forth below, naming Northwestern, its agents, representatives and wholly owned subsidiaries, as additional
insureds on the Commercial General Liability and Business Automobile insurance policies, and (b) deliver to Northwestern, and obtain the approval of Northwestern to, certificates of insurance evidencing such insurance. 

 

			
	 Type 
	  	 Limits

	 Worker’s Compensation Employer’s Liability
	  	Statutory/$500,000
	 Commercial General Liability
	  	$3,000,000/occurrence
		  	$6,000,000/aggregate
	 Business Automobile Liability
	  	$1,000,000 Combined Single Limit

 The aforesaid coverages shall be maintained throughout the Disposition Period. In the event that any such
coverages are written on a “claims-made” basis, such coverages shall be kept in force either by renewal thereof or the purchase of an extended reporting period for a minimum of one (1) year following the expiration or earlier
termination of this Agreement. Nothing herein contained, including but not limited to insurance carried by Lender, shall in any way be deemed to limit Lender’s liability under applicable law; and 

(iv) Lender shall deliver to Northwestern, at the time of delivery of the notice referred to in Section (i) of this paragraph 5
above, reasonable evidence of its right to remove the Collateral or any portion thereof, it being understood that a certified copy of an in-force UCC-1 security filing shall be deemed sufficient evidence. 

Upon failure of Lender to deliver the notice referred to in paragraph 5.(i), above or the later expiration of the Disposition Period by
lapse of time, this Agreement shall be deemed terminated and of no further force or effect whether or not Lender has removed, transferred, taken control of or otherwise disposed of the Collateral. Northwestern shall thereafter be deemed to have any
and all rights with respect to the Collateral that it would have had absent this Agreement and may dispose of the Collateral or any portion thereof and/or apply any and all proceeds therefrom in accordance with the Lease. Lender shall promptly
execute any and all documents furnished to it by Northwestern or Tenant necessary in the discretion of Northwestern or Tenant, as the case may be, to evidence the termination of this Agreement. 

6. Lender and its contractors and agents shall observe all appropriate safety precautions while on the Property. Further, at
Northwestern’s option, Lender shall either (i) promptly repair, at Lender’s sole expense, any physical damage to the Property caused by Lender’s entry onto the Property and/or removal of the Collateral by Lender or its agents or
representatives, or (ii) promptly reimburse Northwestern for the reasonable costs of repair of any damage done to the Property by Lender, its agents or representatives as a result of entry onto the Property pursuant to this Agreement.
Lender’s obligation to so repair or reimburse Northwestern shall survive the expiration or termination of this Agreement. 

  
 Exhibit H -
Page 3 

 7. Lender acknowledges that Northwestern has entered into this agreement solely as an
accommodation to Tenant and Lender shall indemnify and shall hold Northwestern harmless from and against any losses, damages, expenses, liabilities, demands and causes of action, and any expenses incidental to the defense thereof by Northwestern,
resulting from injury to or death of persons, or damage to Property directly or indirectly growing out of or in connection with any acts of Lender or Lender’s agents or representatives in connection with entry upon the Property pursuant to this
Agreement. Lender’s sole and exclusive remedies against Northwestern in connection with this Agreement shall be to exercise its rights with respect to the Collateral. Lender’s obligation to so indemnify Northwestern shall survive the
expiration or earlier termination of this Agreement. 
 8. This Agreement shall be binding upon the successors, transferees or
assignees of Northwestern, Lender and Tenant. This Agreement may be modified only by an agreement in writing executed by the parties hereto or their successors or assigns. 
 9. All notices, demands, requests and other instruments required or which may be given under this Agreement or the law shall be given in writing and shall be deemed received upon the occurrence of any of
the following: (1) when refused or noted unable to deliver, if addressed pursuant to this section, (ii) when received via nationally recognized overnight courier/delivery service, or (iii) when received via facsimile, provided that a
copy is also delivered within one business day pursuant to the method set forth in section (ii) immediately above. In each case the notice shall be addressed to Northwestern, Tenant and to Lender at the addresses set forth below, or to such
other addresses as may be requested by Northwestern and Lender by giving notice to the other interested parties in accordance with this paragraph. 
  

							
		 	To Northwestern:	  		  	The Northwestern Mutual Life Insurance Company
		 		  		  	 
		 		  		  	 
		 		  		  	 
				
		 	With a copy to:	  		  	 The Northwestern Mutual Life Insurance Company
 Real Estate Regional Office

		 		  		  	 
		 		  		  	 
		 		  		  	 
		 	To Lender:	  		  	 
		 		  		  	 
		 		  		  	 
		 	To Tenant:	  		  	
		 		  		  	 
		 		  		  	 
		 		  		  	 

 10. For purposes of executing this Agreement, a document signed and transmitted by facsimile machine
shall be treated as an original document. The signature of any party thereon shall be considered as an original signature, and the document transmitted shall be considered to have the same binding legal effect as an original signature on an original
document. Any facsimile document shall be re-executed by both parties in original form. No 

  
 Exhibit H -
Page 4 

 
party hereto may raise the use of a facsimile machine or the fact that any signature was transmitted through the use of a facsimile machine as a defense to the validity or enforcement of this
Agreement or any amendment executed in compliance with this paragraph 10. This paragraph does not supersede the requirements of paragraph 9 of this Agreement. 
 11. At such time as Tenant requests that Northwestern enter into this Agreement, Tenant shall deliver to Northwestern a cashier’s check in the sum of One Thousand Dollars ($1,000) to compensate
Northwestern for the cost of preparing, executing and delivering this Agreement, Northwestern and Tenant agreeing that such sum is a reasonable approximation of the cost of Northwestern’s expenses relating thereto, the exact cost thereof being
impractical to determine. 
 12. Each of the parties represents and warrants that the individual signing this Landlord
Subordination Agreement on its behalf has the requisite authority to bind such party. 
 13. This Agreement, and the terms
thereof, shall be governed and controlled by the laws of the state in which the Property is located. 
 14. This Agreement may
be executed in any number of counterparts each of which, when so executed and delivered, shall be deemed to be an original and all of which taken together shall constitute one and the same document. 

IN WITNESS WHEREOF, this Agreement has been executed as of the date first set forth above. 

 

							
	            LENDER:	 		 	 
				
		 		 	By:	 	 
		 		 	Name:	 	
		 		 	Its:	 	 
			
	            TENANT:	 		 	 
				
		 		 	By:	 	 
		 		 	Name:	 	 
		 		 	Its:	 	 

  
 Exhibit H -
Page 5 

 
					
	NORTHWESTERN: THE NORTHWESTERN MUTUAL LIFE INSURANCE COMPANY, a Wisconsin corporation
		
	By:	 	Northwestern Investment Management Company, LLC a Delaware limited liability company, its wholly owned affiliate and authorized representative
			
		 	By:	 	 
		 	Name:	 	 
		 	Its:	 	Managing Director

  
 Exhibit H -
Page 6 

 EXHIBIT I 
 GREEN ADDENDUM 
 1. The term “Green Standard” or words of similar
import shall include the U.S. EPA’s Energy Star® rating, the Green Building Initiative’s Green Globes
TM for Continual Improvement of Existing Buildings (Green
GlobesTM-CIEB), the U.S. Green Building Council’s
Leadership in Energy and Environmental Design (LEED), and/or a current and similar organization with equally rigorous environmentally and sustainable practices. 
 2. In addition to the above Operating Expenses, Operating Expenses shall also include: (i) all costs of maintaining, managing, reporting, commissioning, and re-commissioning the Building or any part
thereof that was designed and/or upgraded to be sustainable and conform with one or more Green Standard rating systems, and (ii) all costs of applying, reporting and commissioning the Building or any part thereof to seek certification under one
or more Green Standard rating systems, provided however, the cost of such applying, reporting and commissioning of the Building or any part thereof to seek certification shall be a cost capitalized and thereafter amortized as Operating
Expenses under GAAP. 
 3. Tenant shall not use or occupy the Demised Premises for any unlawful purpose or in any manner that will constitute
waste, nuisance or unreasonable annoyance to Landlord or other tenants of the Building. Tenant shall not use or operate the Demised Premises in any manner that will cause the Building or any part thereof not to conform with Landlord’s
sustainability practices or a Green Standard certification of the Building. 
 4. This Building is or may become in the future certified under a
Green Standard or operated pursuant to Landlord’s sustainable building practices. Landlord’s sustainability practices address whole-building operations and maintenance issues including chemical use; indoor air quality; energy efficiency;
water efficiency; recycling programs; exterior maintenance programs; and systems upgrades to meet green building energy, water, Indoor Air Quality, and lighting performance standards. All construction and maintenance methods and procedures, material
purchases, and disposal of waste must be in compliance with minimum standards and specifications, in addition to all applicable laws. 
 5. Tenant shall use proven energy and carbon reduction measures, including energy efficient bulbs in task lighting; use of lighting controls; closing shades as needed to avoid over heating the space;
turning off lights and equipment at the end of the work day; and purchasing ENERGY STAR® qualified equipment,
including but not limited to lighting, office equipment, commercial and residential quality kitchen equipment, vending and ice machines; and purchasing products certified by the U.S. EPA’s Water Sense® program. 

  
 Exhibit
I—Page 1 

 6. Tenant covenants and agrees, at its sole cost and expense: (a) to comply with all present and future
laws, orders and regulations of the Federal, State, county, municipal or other governing authorities, departments, commissions, agencies and boards regarding the collection, sorting, separation, and recycling of garbage, trash, rubbish and other
refuse (collectively, “trash”); (b) to comply with Landlord’s recycling policy as part of Landlord’s sustainability practices where it may be more stringent than applicable law; (c) to sort and separate its trash and
recycling into such categories as are provided by law or Landlord’s sustainability practices; (d) that each separately sorted category of trash and recycling shall be placed in separate receptacles as directed by Landlord, and;
(e) that Tenant shall pay all costs, expenses, fines, penalties or damages that may be imposed on Landlord or Tenant by reason of Tenant’s failure to comply with the provisions of this Section. Where possible, the Landlord shall provide a
composting program and encourage the Tenant to sort and separate its trash and recycling from compost material. 
 7. Landlord shall provide and
install all original bulbs and tubes for Building standard lighting fixtures within the Demised Premises and all replacement tubes for such lighting as an annual Expense; all other bulbs, tubes and lighting fixtures for the Demised Premises shall be
provided and installed by Tenant at Tenant’s cost and expense, and must comply with Landlord’s sustainability practices, including any Green Standard rating system, concerning the environmental compliance of the Building or the Demised
Premises, as the same may change from time to time. All maintenance and repairs made by Tenant must comply with Landlord’s sustainability practices, including any Green Standard rating system concerning the environmental compliance of the
Building or the Demised Premises, as the same may change from time to time. 
 8. Any and all Tenant Improvements is strongly encouraged to be
performed in accordance with Landlord’s sustainability practices, including any Green Standard or third-party rating system concerning the environmental compliance of the Building or the Demised Premises, as the same may change from time to
time. Tenant is further encouraged to engage a qualified third party LEED or Green Standard professional or similarly qualified professional during the design phase through implementation of any Tenant Improvements to review all plans, material
procurement, demolition, construction and waste management procedures to ensure they are in full conformance with Landlord’s sustainability practices, as aforesaid. Any and all waste and debris from Tenant Improvements must meet the minimum
requirements set forth by the Green Standard. 
 9. Landlord does not permit space heaters or other energy-intensive equipment unnecessary to
conduct Tenant’s business without written approval by Landlord. Any space conditioning equipment that is placed in the Demised Premises for the purpose of increasing comfort to tenants shall be operated on sensors or timers that limit operation
of equipment to hours of occupancy in the areas immediately adjacent to the occupying personnel. 

  
 Exhibit
1—Page 2 

 10. Tenant acknowledges that it is Landlord’s intention that the Building be operated in a manner which
is consistent with Landlord’s sustainability practices. Tenant is required to comply with these practices within the Demised Premises. 

11. Tenant shall dispose of, in an environmentally sustainable manner, any equipment, furnishings, or materials no longer needed by Tenant and shall
recycle or re-use such items in accordance with Landlord’s sustainability practices. Tenant is responsible for reporting this activity to Landlord in a format determined by Landlord. 

  
 Exhibit
I—Page 3 

 Exhibit J 
 Subordination, Non-Disturbance and Attornment Agreement 
  

			
	Loan No.
	
	RECORDING REQUESTED BY
		
		 	 
	WHEN RECORDED MAIL TO
	
	 The Northwestern Mutual Life Ins. Co.
 720 East Wisconsin Ave. - Rm N16WC
 Milwaukee, WI 53202

Attn:

 SPACE ABOVE THIS LINE FOR RECORDER’S USE 

 
 SUBORDINATION,
NON-DISTURBANCE AND ATTORNMENT AGREEMENT 
 THIS AGREEMENT is entered into as
of                    , 20    , between
                    , whose mailing address
is                    ,
(“Tenant”),                     whose mailing address
is                    , (“Borrower”),
and                     (“Lender”), whose address for notices
is                                 

RECITALS 

A. Tenant is the lessee or successor to the lessee, and Borrower is the lessor or successor to the lessor under a certain lease dated
                    , 20     (the “Lease”). 

B. Lender has made, or will make, a mortgage loan to be secured by a mortgage, deed to secure a debt or deed of trust from Borrower for
the benefit of Lender (as it may be amended, restated or otherwise modified from time to time, the “Lien Instrument”) encumbering the fee title to and/or leasehold interest in the land described in Exhibit A attached hereto and the
improvements thereon (collectively, the “Property”), wherein the premises covered by the Lease (the “Demised Premises”) are located. 

  
 Exhibit
J—Page 1 

 C. Borrower and Lender have executed, or will execute, an Absolute Assignment of Leases and
Rents (the “Absolute Assignment”), pursuant to which (i) the Lease is assigned to Lender and (ii) Lender grants a license back to Borrower permitting Borrower to collect all rents, income and other sums payable under the Lease
until the revocation by Lender of such license, at which time all rents, income and other sums payable under the Lease are to be paid to Lender. 
 D. Lender has required the execution of this Agreement by Borrower and Tenant as a condition to Lender making the requested mortgage loan or consenting to the Lease. 

E. Tenant acknowledges that, as its consideration for entering into this Agreement, Tenant will benefit by entering into an agreement
with Lender concerning Tenant’s relationship with any purchaser or transferee of the Property (including Lender) in the event of foreclosure of the Lien Instrument or a transfer of the Property by deed in lieu of foreclosure (any such purchaser
or transferee and each of their respective successors or assigns is hereinafter referred to as “Successor Landlord”). 

AGREEMENT 

NOW, THEREFORE, in consideration of the foregoing, the mutual covenants and agreements contained herein, and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, Tenant, Borrower and Lender agree as follows: 
  

	 	1.	Tenant and Borrower agree for the benefit of Lender that: 

  

	 	(a)	Tenant shall not pay, and Borrower shall not accept, any rent or additional rent more than one month in advance; 

 

	 	(b)	Tenant, upon receipt of notice from Lender that it has exercised its rights under the Absolute Assignment and revoked the license granted to Borrower to collect all
rents, income and other sums payable under the Lease, shall pay to Lender all rent and other payments then or thereafter due under the Lease, and any such payments to Lender shall be credited against the rent or other obligations due under the Lease
as if made to Borrower; and 

  

	 	(c)	Tenant will not conduct any dry cleaning operations on the Demised Premises using chlorinated solvents nor will Tenant use any chlorinated solvents in the operation of
their business on the Demised Premises. 

  

	 	2.	The Lease is hereby subordinated in all respects to the Lien Instrument and to all renewals, modifications and extensions thereof, subject to the terms and conditions
hereinafter set forth in this Agreement, but Tenant waives, to the fullest extent it may lawfully do so, the provisions of any statute or rule of law now or hereafter in effect that may give or purport to give it any right or election to terminate
or otherwise adversely affect the Lease or the obligations of Tenant thereunder by reason of any foreclosure proceeding. 

  
 Exhibit
J—Page 2 

 3. Borrower, Tenant and Lender agree that, unless Lender shall otherwise consent in writing,
the fee title to, or any leasehold interest in, the Property and the leasehold estate created by the Lease shall not merge but shall remain separate and distinct, notwithstanding the union of said estates either in Borrower or Tenant or any third
party by purchase, assignment or otherwise. 
 4. If the interests of Borrower in the Property are acquired by a Successor
Landlord: 
  

	 	(a)	If Tenant shall not then be in default in the payment of rent or other sums due under the Lease or be otherwise in material default under the Lease, the Lease shall not
terminate or be terminated and the rights of Tenant thereunder shall continue in full force and effect except as provided in this Agreement; 

  

	 	(b)	Tenant agrees to attorn to Successor Landlord as its lessor; Tenant shall be bound under all of the terms, covenants and conditions of the Lease for the balance of the
term thereof, including any renewal options which are exercised in accordance with the terms of the Lease; 

  

	 	(c)	The interests so acquired shall not merge with any other interests of Successor Landlord in the Property if such merger would result in the termination of the Lease;

  

	 	(d)	If, notwithstanding any other provisions of this Agreement, the acquisition by Successor Landlord of the interests of Borrower in the Property results, in whole or
part, in the termination of the Lease, there shall be deemed to have been created a lease between Successor Landlord and Tenant on the same terms and conditions as the Lease, except as modified by this Agreement, for the remainder of the term of the
Lease with renewal options, if any; and 

  

	 	(e)	Successor Landlord shall be bound to Tenant under all of the terms, covenants and conditions of the Lease, and Tenant shall, from and after Successor Landlord’s
acquisition of the interests of Borrower in the real estate, have the same remedies against Successor Landlord for the breach of the Lease that Tenant would have had under the Lease against Borrower if the Successor Landlord had not succeeded to the
interests of Borrower; provided, however, that Successor Landlord shall not be: 

  
 Exhibit
J—Page 3 

	 	(I)	Liable for the breach of any representations or warranties set forth in the Lease or for any act, omission or obligation of any landlord (including Borrower) or any
other party occurring or accruing prior to the date of Successor Landlord’s acquisition of the interests of Borrower in the Demised Premises, except for any repair and maintenance obligations of a continuing nature as of the date of such
acquisition; 

  

	 	(ii)	Liable for any obligation to construct any improvements in, or make any alterations to, the Demised Premises, or to reimburse Tenant by way of allowance or otherwise
for any such improvements or alterations constructed or made, or to be constructed or made, by or on behalf of Tenant in the Demised Premises; 

  

	 	(iii)	Subject to any offsets or defenses which Tenant might have against any landlord (including Borrower) prior to the date of Successor Landlord’s acquisition of the
interests of Borrower in the Demised Premises; 

  

	 	(iv)	Liable for the return of any security deposit under the Lease unless such security deposit shall have been actually deposited with Successor Landlord;

  

	 	(v)	Bound to Tenant subsequent to the date upon which Successor Landlord transfers its interest in the Demised Premises to any third party; or 

 

	 	(vi)	Liable for any damages in excess of Successor Landlord’s equity in the Property. 

 The provisions of this paragraph shall be effective and self-operative immediately upon Successor Landlord succeeding to the interests of Borrower without the execution of any other instrument.

 5. Tenant represents and warrants that Tenant, all persons and entities owning (directly or indirectly) an ownership interest
in Tenant and all guarantors of all or any portion of the Lease: (i) are not, and shall not become, a person or entity with whom Lender is restricted from doing business with under regulations of the Office of Foreign Assets Control
(“OFAC”) of the Department of the Treasury (including, but not limited to, those named on OFAC’s Specially Designated Nationals and Blocked Persons list) or under any statute, executive order (including, but not limited to, the
September 24, 2001 

  
 Exhibit
J—Page 4 

 
Executive Order Blocking Property and Prohibiting Transactions With Persons Who Commit, Threaten to Commit, or Support Terrorism), or other governmental action; (ii) are not, and shall not
become, a person or entity with whom Lender is restricted from doing business with under the International Money Laundering Abatement and Financial Anti-Terrorism Act of 2001 or the regulations or orders thereunder; and (iii) are not knowingly
engaged in, and shall not engage in, any dealings or transaction or be otherwise associated with such persons or entities described in (i) and (ii) above. 
 6. This Agreement may not be modified orally or in any other manner except by an agreement in writing signed by the parties hereto or their respective successors in interest. In the event of any conflict
between the terms of this Agreement and the terms of the Lease, the terms of this Agreement shall prevail. This Agreement shall inure to the benefit of and be binding upon the parties hereto, their respective heirs, successors and assigns, and shall
remain in full force and effect notwithstanding any renewal, extension, increase, or refinance of the indebtedness secured by the Lien Instrument, without further confirmation. Upon recorded satisfaction of the Lien Instrument, this Agreement shall
become null and void and be of no further effect. 
 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of
the day and year first above written. 
  

					
		
	TENANT:	 	 
			
		 	By:	 	 

 Add appropriate acknowledgment for Tenant. 
 (Signatures of Borrower and Lender continued on following pages) 

  
 Exhibit
J—Page 5 

 (Signatures continued) 

 

					
	BORROWER:	 	 
			
		 	By:	 	 

 Add appropriate acknowledgment for Borrower. 

(Signature of Lender continued on following pages) 

  
 Exhibit
J—Page 6 

 (Signatures continued) 

 

					
	LENDER:	 	 
			
		 	By:	 	 

 Add appropriate acknowledgment for Lender 
 Add scrivener’s statement (if required) 

  
 Exhibit
J—Page 7 

 EXHIBIT “A” 

(Description of Property) 

  
 Exhibit
J—Page 8 

 Exhibit K 
 List of Furniture 

  
 Exhibit
K—Page 1 

 

 

 Exhibit K-1 
 List of Remaining Furniture 

  
 Exhibit
K-1—Page 1Co-Development and Commercialization Agreement, Otsuka Pharmaceutical Co., Ltd.

 EXHIBIT 10.09 
 CONFIDENTIAL TREATMENT REQUESTED. CERTAIN PORTIONS OF THIS DOCUMENT HAVE BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND, WHERE APPLICABLE, HAVE BEEN MARKED WITH AN ASTERISK TO DENOTE
WHERE OMISSIONS HAVE BEEN MADE. THE CONFIDENTIAL MATERIAL HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION. 
 Execution Copy 
 CO-DEVELOPMENT AND COMMERCIALIZATION AGREEMENT

 dated as of September 4, 2008 
 by and among 
 ACUCELA INC. 

and 

OTSUKA PHARMACEUTICAL CO., LTD. 

 Execution Copy 

EXHIBITS 
  

			
	Exhibit A	  	Acucela Patent Rights
	Exhibit B	  	Financial Terms
	Exhibit C	  	Initial Formulation
	Exhibit D	  	Initial Development Activities
	Exhibit E	  	Promissory Note
	Exhibit F	  	Security Interest Agreement
	Exhibit G	  	Press Release

  
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CO-DEVELOPMENT AND COMMERCIALIZATION AGREEMENT 
 This Co-Development and Commercialization Agreement (this “Agreement”) is made as of September 4, 2008 (the “Effective Date”), by and between Acucela Inc., a
Washington corporation having its principal offices at 21720 23rd Drive SE, Suite 120, Bothell, WA 98021 (“Acucela”), and Otsuka Pharmaceutical Co., Ltd., a Japanese corporation (“Otsuka”) having its principal
offices at 2-9 Kanda Tsukasa-cho Chiyoda-ku, Tokyo 101-8535, Japan. Acucela and Otsuka are each referred to herein as a “Party” and collectively as the “Parties.” 

A. Acucela is a biopharmaceutical company developing new drug therapies for ophthalmologic conditions and diseases. 

B. Otsuka is an established pharmaceutical company which focuses its experience and expertise in the development and commercialization of
pharmaceutical products in select areas, including among them ophthalmologic conditions and diseases. 
 C. Otsuka desires to
acquire rights to Acucela’s lead candidate, ACU-4429, and potential backup compounds in Japan and certain other Asian countries and to collaborate with Acucela on the further development and commercialization of Collaboration Products in the
Shared Territory (as defined below), all on the terms and conditions set forth in this Agreement. 
 Now, therefore, in
consideration of the foregoing premises and the mutual covenants herein contained, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereby agree as follows: 

ARTICLE 1 

DEFINITIONS 
 In addition to terms defined elsewhere in this Agreement, the following terms shall have the respective meanings set out below, and grammatical variations of such terms shall have corresponding meanings.

 1.1. “Acquirer” means, with respect to a Party, another Person who controls (as defined in Section 1.4)
such Party as a result of the occurrence of Change of Control in respect of such Party after the Effective Date. 
 1.2.
“Acucela Core Compounds” means any and all small molecule compounds within the * chemical family consisting of *. For the purposes of this definition, *. An * can be optionally substituted by one or more of the following
substituents or other substituents as can be prepared by those skilled in the art: *. 
  

	*	Confidential Treatment Requested. 

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 1.3. “Acucela IP” means the Acucela Know-How and Acucela Patent Rights,
defined as follows: 
 1.3.1 “Acucela Know-How” means Know-How Controlled by Acucela or its Affiliates (other
than its Acquirer or such Acquirer’s Affiliates) on the Effective Date or during the Term that is necessary or useful to Develop, Manufacture or Commercialize Potential Collaboration Compounds or Potential Collaboration Products in the Field in
the Otsuka Territory or in the Shared Territory in accordance with this Agreement, including Acucela’s interest in the Joint Know-How, but excluding Otsuka Know-How licensed to Acucela by Otsuka under this Agreement. 

1.3.2 “Acucela Patent Rights” means those Patent Rights listed on Exhibit A and any and all other Patent
Rights Controlled by Acucela or its Affiliates (other than its Acquirer or such Acquirer’s Affiliates) on the Effective Date or during the Term that are necessary or useful to Develop, Manufacture or Commercialize Potential Collaboration
Compounds or Potential Collaboration Products in the Field in the Otsuka Territory or in the Shared Territory, including the Patents Rights with respect to inventions contained in the Acucela Inventions that, if prosecuted, would disclose or claim a
composition of matter comprising a Potential Collaboration Compound or Potential Collaboration Product, a use of a Potential Collaboration Compound or Potential Collaboration Product in the Field, or a method of Manufacturing of a Potential
Collaboration Compound or a Potential Collaboration Product, and Acucela’s interest in the Joint Patent Rights, but excluding Otsuka Patent Rights licensed to Acucela by Otsuka under this Agreement. Exhibit A shall be updated from
time to time as requested by either Party to reflect all Patent Rights then within the Acucela Patent Rights. 
 1.4.
“Affiliate” means, with respect to a Party, any person, corporation or other entity which, directly or indirectly through one or more intermediaries, controls, is controlled by or is under common control with such Party, as the case
may be. As used in this Section 1.4, “control” shall mean: (a) direct or indirect beneficial ownership of more than fifty percent (50%) of the voting stock or other ownership interest (whether directly or pursuant to any
option, warrant or other similar arrangement) in a corporation or other entity; or (b) possession, direct or indirect, of the power to affirmatively direct the management and policies of a person, corporation or other entity, whether through
ownership of voting stock or other ownership interest or by contract relating to voting rights or corporate governance. 
 1.5.
“Allowable Expenses” means those expenses incurred in connection with the Commercialization of a Collaboration Product in the Shared Territory that are incurred in accordance with the approved Commercialization Plan and are
specifically attributable to Collaboration Products in the Shared Territory, and shall consist of (a) Cost of Goods Sold, (b) Marketing Expenses, (c) Distribution Expenses, (d) Allocable Administration Expenses, (e) Patent
Expenses, (f) Trademark Expenses, (g) Regulatory Expenses, (h) Product Recall Expenses, (i) Product Withdrawal Expenses, (j) Liabilities for an Intrinsic Defect, and (k) Pre-Marketing Expenses. Allowable Expenses shall
exclude Development Costs, even if incurred after the First Commercial Sale of a Collaboration Product in the Shared Territory. 

  
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 1.6. “Backup Collaboration Compound” means a Potential Collaboration
Compound (a) that meets criteria agreed upon by the Joint Development Committee, and (b) that is selected by the Parties for Development as further described in Section 5.2. In the event of the failure of a Lead Compound, the Parties
may designate a Backup Collaboration Compound as the Lead Compound at the meetings of the JDC. 
 1.7. “Calendar
Quarter” means each of the three-month periods ending on March 31, June 30, September 30 and December 31 of any year. 
 1.8. “Change of Control” means, with respect to a Party, (a) a sale, conveyance, or other disposition of all or substantially all of such Party’s assets, (b) any merger,
consolidation or other business combination transaction of such Party with or into another Person, in which the holders of the shares of voting capital stock of such Party outstanding immediately prior to such transaction continue to hold (either by
such shares remaining outstanding or by their being converted into shares of voting capital stock of the surviving entity) less than a majority of the total voting power represented by the shares of voting capital stock of such Party (or the
surviving entity) outstanding immediately after such transaction, or (c) the direct or indirect acquisition (including by way of a tender or exchange offer) by any Person, or Persons acting as a “group” within the meaning of
Section 13(d) of the Securities and Exchange Act of 1934, as amended, excluding in either case any Person who was a shareholder of Acucela as of the Effective Date, of beneficial ownership or a right to acquire beneficial ownership of shares
representing a majority of the voting power of the then outstanding shares of capital stock of such Party; provided, however, that in no event shall (1) the acquisition of shares issued by such Party in an equity financing be considered for
purposes of determining whether there has been a Change of Control, or (2) in the case of clause (c) of this Section 1.8, the acquisition of the right to acquire beneficial ownership of shares of capital stock of such Party be deemed
to be the acquisition of beneficial ownership of such shares unless and until such right has been exercised. 
 1.9.
“Collaboration Compound” means the Lead Compound and any Backup Collaboration Compound. 
 1.10.
“Collaboration Product” means any pharmaceutical formulation containing a Collaboration Compound as an active chemical entity, which is developed under the Development Plan in the Shared Territory or which is developed in either
Party’s Sole Territory, as the case may be. 
 1.11. “Collaboration Product Marks” means the
product-specific trademarks, Internet domain names, logos, trade dress or other symbols approved by the JCC for use with the Collaboration Products in the Field in the Shared Territory, and under which a Collaboration Product may be marketed in the
Field in the Shared Territory, but excluding the Acucela and Otsuka company names, tradenames, logos, trade dress and the like. 

  
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 1.12. “Commercialization” means activities directed to marketing,
advertising, promoting, co-promoting, detailing, distributing, importing or selling a product, including Pre-Marketing, Post-Marketing Studies, Phase IV Clinical Trials commenced after First Commercial Sale of a Collaboration Product,
Manufacture of commercial supplies and education, planning, product support and medical efforts related to a product, and when used as a verb, “Commercialize” means to engage in such activities. For clarity, Manufacturing process
development, scale-up and validation of Manufacturing with respect to a Collaboration Product in connection with Manufacture of commercial supplies of any such Collaboration Product shall be included within Commercialization, even if such activities
are conducted prior to the first Regulatory Approval in a country for any such Collaboration Product. 
 1.13.
“Commercially Reasonable Efforts” means, with respect to a Collaboration Compound or Collaboration Product, the carrying out of obligations under this Agreement with those efforts and resources that a similarly situated company
within the pharmaceutical industry would reasonably use were it developing or commercializing its own pharmaceutical compounds or products that are of similar market and profit potential and of similar risk profile at a similar stage in their
product life as the Collaboration Compound or Collaboration Product, as applicable, taking into account anticipated product labeling, anticipated financial return, relevant medical and clinical considerations, anticipated regulatory environment and
competitive market conditions, all as measured by the facts and circumstances at the time such efforts are due, but in no event less than the type and scope of efforts that the applicable Party would devote to any of its other products of similar
market and profit potential and similar risk profile at a similar stage of product life. 
 1.14. “Controlled”
means, with respect to any intellectual property right or other intangible property, the possession by license or ownership by a Party or its Affiliate of the legal authority or right to grant to the other Party access and/or a license or sublicense
or other right as provided herein without violating the terms of any agreement with any Third Party. 
 1.15.
“Co-Promotion” means promotion of the Collaboration Product by Otsuka and Acucela (and/or their respective Affiliates) under the same Regulatory Approval, registration and Collaboration Product Marks in any country in the Shared
Territory. When used as a verb, “Co-Promote” means to engage in such activities. 
 1.16. “Cost of
Goods Sold” shall have the meaning assigned in Exhibit B. 
 1.17. “Data” means, to the extent
Controlled by either Party as of the Effective Date or during the Term, any and all (a) research data, pharmacology data, chemistry, manufacturing and control data, preclinical data, clinical data and other similar technical and scientific data
necessary for or actually produced in the Development or Manufacture of Collaboration Compounds or Collaboration Products in the Field in the Territory or otherwise generated under the Development Plan and (b) documentation and correspondence
submitted, or required to be submitted, to a Regulatory Authority, or received from a Regulatory Authority, in connection with activities to obtain a Regulatory Approval for a Collaboration Product in the Field in any country, including, information
in any drug master files or similar documentation. 

  
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 1.18. “Detail” and
“Detailing” shall mean (a) for indications appropriate and labeled for treatment of patients in a physician office practice environment, a face-to-face meeting, in an individual or
group practice setting, between one or more target prescribers and a sales representative of a Party or its designee, during which information regarding Collaboration Product is communicated orally to the prescriber, and (b) for indications
appropriate and labeled for treatment of patients in hospitals, a face-to-face meeting, in a hospital setting, between one or more target physicians or surgeons and a sales representative of a Party or its designee, during which information
regarding Collaboration Product is communicated orally to the physician or surgeon. Sample drops (if applicable) and reminders, in the absence of other activities listed above, shall not constitute a Detail or Detailing. 

1.19. “Detail Costs” means the direct compensation and benefits paid to professional sales representatives making
Details, including travel and any out-of-pocket costs, to the extent specifically attributable to the promotion of Collaboration Products. 
 1.20. “Development” means all activities related to researching or developing a Collaboration Compound or Collaboration Product, or obtaining Regulatory Approvals therefor, in the
Territories, including preclinical testing, toxicology, formulation, clinical trials and regulatory affairs as well as all research and development activities under an approved Research Plan, and when used as a verb, “Develop” means
to engage in such activities. Development shall also include Manufacturing activities for the purposes of producing clinical supplies (or materials used in preclinical testing or research), as well as Manufacturing process development, scale-up and
validation of Manufacturing with respect to a Collaboration Compound or Collaboration Product prior to the first Regulatory Approval in the Shared Territory for such product. Development shall not include Manufacture of commercial supplies or
Commercialization or other Manufacturing activities included in the term “Commercialization”. Development shall not include Phase IV Clinical Trials commenced after First Commercial Sale of a Collaboration Product anywhere in the world.
For clarity, the Parties may continue to perform Development activities for a Collaboration Product following the First Commercial Sale of such Collaboration Products to explore additional indications or formulations of such Collaboration Products.

 1.21. “Development Costs” means the expenses incurred by a Party or for its account after the Effective Date
that are incurred in accordance with the approved Development Plan and are specifically attributable to the Development of a Collaboration Compound or a Collaboration Product for the Shared Territory. More specifically, Development Costs shall
include amounts paid by a Party to Third Parties involved in the Development of Collaboration Compounds or Collaboration Products for the Shared Territory pursuant to the Development Plan, and all fixed and variable, direct and indirect, internal
costs (calculated on an FTE basis as provided in Sections 1.28 and 1.29) incurred by a Party in connection with Development of Collaboration Compounds or Collaboration Products for the Shared Territory under the approved Development Plan.

  
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Development Costs shall include, but are not limited to, the following costs incurred for the Development of a Collaboration Compound or Collaboration Product for the Shared Territory: the cost
of studies on the Collaboration Product conducted internally or by individual investigators or consultants necessary or useful for the purpose of obtaining and/or maintaining Regulatory Approval of a Collaboration Product for the Shared Territory,
costs (and related fees) of preparing the NDA for submission to a governmental authority to obtain and/or maintain Regulatory Approval of a Collaboration Product for the Shared Territory and manufacturing and scaling up manufacturing processes for
Collaboration Products in bulk and finished form, except to the extent included in the term Commercialization. Development Costs shall exclude all costs and expenses incurred (i) in connection with the Research Program under the Research Plan
which costs and expenses shall be borne as set forth in Section 5.5.4, and (ii) by Otsuka in performing its primary responsibilities pursuant to Section 3.2.4(b)(i), which costs and expenses shall be borne by Otsuka.

 1.22. “Discovery Research” means research activities directed to (a) modifying, or making derivatives
of, any Collaboration Compound or Collaboration Product, (b) identifying the molecular target of any Collaboration Compound or Collaboration Product, or (c) conducting any structure activity relationship work using a Collaboration Compound
or Collaboration Product. 
 1.23. “Distribution Expenses” shall have the meaning assigned in Exhibit B.

 1.24. “Dr. Kubota” means Dr. Ryo Kubota, the Chief Executive Officer of Acucela. 

1.25. “FDA” means the United States Food and Drug Administration and any successor thereto. 

1.26. “Field” means the diagnosis, treatment, palliation and/or prevention of (a) ophthalmologic conditions,
maladies and diseases, including age-related macular degeneration and diabetic retinopathy, and (b) if the Parties mutually agree, in accordance with Section 5.1 below, to include one or more additional indications beyond those described
in the preceding clause (a) , such additional indication(s). 
 1.27. “First Commercial Sale” means the
first bona fide commercial sale of a Collaboration Product for use in the Field within a country in the Shared Territory following issuance of all applicable Regulatory Approvals required prior to commercial sale in such country. 

1.28. “FTE” means the equivalent of the work of one (1) employee full time for one (1) year * of work directly
related to the Development and/or Commercialization of Collaboration Product or any other activities specifically permitted under this Agreement. No additional payment shall be made with respect to any person who works more than such number of hours
per year, and any person who devotes less than such number of hours per year shall be treated as an FTE on a pro-rata basis. 

  

	*	Confidential Treatment Requested. 

  
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 1.29. “FTE Rate” means initially *, in the Consumer Price Index for
Urban Consumers for the West Region, All Items, as published by the U.S. Department of Labor, Bureau of Statistics, *. 
 1.30.
“Fully Burdened Manufacturing Costs” means, as applicable to a Collaboration Compound or Collaboration Product, a Party’s cost of manufacturing such Collaboration Compound or Collaboration Product for clinical purposes, which
is equal to the sum of (a) for Collaboration Compounds or Collaboration Products (or components thereof) made by a Party, the costs of all *, in each case for the manufacture of such Collaboration Compound or Collaboration Product, (b) for
Collaboration Compounds or Collaboration Products (or components thereof) made by a Third Party, *, and (c) *; to the extent such costs in (a), (b) and (c) above are incurred by a Party or its Affiliates and to the extent they are
reasonably allocable to the manufacture of such Collaboration Compound or Collaboration Product. Fully Burdened Manufacturing Cost shall be calculated in a manner consistent with applicable GAAP. 

1.31. “GAAP” means generally accepted accounting principles, as in effect from time to time, such accounting principles
to be consistently applied. With respect to Otsuka, the term “GAAP” shall mean Otsuka’s standard corporate accounting procedures, which are and shall be in compliance with applicable, then-current Japanese accounting standards
consistently applied and, with respect to Acucela, the term “GAAP” shall mean the then-current generally accepted accounting principles in the United States consistently applied. 

1.32. “IND” means an investigational new drug application filed with the FDA under 21 C.F.R. Part 312 with respect to a
Collaboration Product prior to beginning human clinical trials, or the equivalent application or filing with the Regulatory Authority necessary to commence clinical trials in a country in the Territories other than the United States, as applicable.

 1.33. “Initial Formulation” means the formulation of the Lead Compound set forth on Exhibit C.

 1.34. “Initial Indication” means dry age-related macular degeneration, which is the indication of the first
priority for which the Parties hereby agree to Develop Collaboration Compounds and Collaboration Products pursuant to the Development Plan. 
 1.35. “Initiation of a Phase III Clinical Trial” shall mean, with respect to a Collaboration Product, first dosing of the first patient in a Phase III Clinical Trial conducted
pursuant to the Development Plan for such Collaboration Product. 
 1.36. “Know-How” means all information,
results and Data of any type, in any tangible or intangible form, including databases, ideas, discoveries, inventions, trade secrets, practices, methods, tests, assays, techniques, specifications, processes, formulations, formulae, knowledge,
know-how, skill, experience, materials, including pharmaceutical, chemical and biological materials, products and compositions, scientific, technical or test data (including pharmacological, biological, chemical, biochemical, toxicological and
clinical test data), analytical and quality control data, stability data, 

  

	*	Confidential Treatment Requested. 

  
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studies, procedures, drawings, plans, designs, diagrams, sketches, technology, documentation or descriptions. Notwithstanding the foregoing, as used in this Agreement, “Know-How” does
not include Patent Rights in the foregoing. 
 1.37. “Joint Patent Rights” means the Patent Rights with respect
to inventions contained in Joint Inventions that, if prosecuted, would disclose or claim a composition of matter comprising a Collaboration Compound or Collaboration Product, a use of a Collaboration Compound or Collaboration Product in the Field,
or a method for Manufacturing of a Collaboration Compound or a Collaboration Product. 
 1.38. “Launch Date”
means the date following Regulatory Approval for a Collaboration Product on which active Detailing regarding such Collaboration Product starts in a country in the Shared Territory. 

1.39. “Lead Compound” means the following chemical entity: *, designated as ACU-4429. 

1.40. “LIBOR” means the rate per annum which would have been offered to prime banks for a deposit for three months in
United States Dollars in the London interbank market at or about 11:00 a.m. (London time) on the first day of the Calendar Quarter in which the due date of the relevant payment occurs and thereafter such rate on the first day of each Calendar
Quarter until the full discharge of the relevant payment (or, in each case, if LIBOR is not available for such date, that on the immediately preceding business day) as published in the “Money Rates” column of the Wall Street
Journal. 
 1.41. “Manufacture” means manufacturing and related activities including chemical synthesis,
formulation, filling, processing, testing, finishing, packaging, labeling, storing, warehousing, quality control, quality assurance, releasing, disposing, handling, shipping and all other activities undertaken or required to be undertaken in order
to manufacture and supply Collaboration Compounds or Collaboration Products. 
 1.42. “Marketing Expenses”
shall have the meaning assigned in Exhibit B. 
 1.43. “NDA” means a New Drug Application for any
product, as appropriate, requesting permission to place a drug on the market in accordance with 21 C.F.R. Part 314, and all supplements or amendments filed pursuant to the requirements of the FDA, including all documents, data and other
information concerning a product which are reasonably necessary for FDA approval to market a product in the United States, or any equivalent application filed with the Regulatory Authority of a country in the Territory other than the United States
for authorization to market a drug in such country. 
 1.44. “Net Profit (Loss)” means the profits or losses
resulting from the Commercialization of Collaboration Products in the relevant countries of the Shared Territory and shall be equal to Net Sales of Collaboration Products less Allowable Expenses; provided, however that any costs
that 

  

	*	Confidential Treatment Requested. 

  
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would otherwise be included as an Allowable Expense, but which, pursuant to the definition of “Net Sales”, are deducted from gross sales to determine the Net Sales of a Collaboration
Product, shall not also be deducted as an Allowable Expense. Net Profit (Loss) shall also include any license fees, milestone payments or similar payments (other than Net Sales) received by a Party from a Third Party on account of the sale,
transfer, license or sublicense of Patent Rights or Know-How to the Third Party in the Shared Territory with respect to a Collaboration Compound or Collaboration Product, excluding (a) *, (b) *, (c) *; and (d) * (subsections
(a) through (d) shall be referred to hereafter as “Sublicensing *”). 
 1.45. “Net
Sales” means the gross amounts invoiced to and paid by or otherwise received from non-licensee Third Parties or non-Sublicensee Third Parties for sales of Collaboration Products by a Party, its Affiliates, licensees and/or its Sublicensees
to such non-licensee Third Parties or non-Sublicensee Third Parties, less reasonable and customary deductions for the following costs actually incurred or allowed: 
 1.45.1 freight, postage and duties, and transportation charges on shipment of such Collaboration Product, including handling and insurance on such shipment; 

1.45.2 sales (such as VAT or its equivalent) and excise taxes, other consumption taxes, customs duties and other governmental charges
imposed upon the importation, use or sale of such Collaboration Product to the customer; 
 1.45.3 trade, quantity and cash
discounts actually granted to the customer; 
 1.45.4 credits, rebates and charge-backs, and allowances or credits to the
customer on account of rejection or returns of such product or on account of retroactive price reductions affecting such Collaboration Product; and 
 1.45.5 fees actually paid or credited to wholesalers, group purchasing organizations and pharmacy benefit managers and the like based on sale or dispensal of Collaboration Product. 

Notwithstanding the foregoing, the amounts described in Sections 1.45.1 and 1.45.2 shall be deducted only to the extent such amounts
are stated separately on the invoice and paid by a customer and the amounts described in Sections 1.45.3 and 1.45.4 shall be deductible only to the extent such amounts are granted or allowed and, except with respect to rebates, based on amounts
invoiced to a customer. If a product is sold for consideration other than cash, the Net Sales from such sale or transfer shall be deemed the then fair market value of such product. The supply of Collaboration Products without charge (x) as
commercial samples, (y) as charitable donations or (z) for use in Development and Post-Marketing Studies shall be excluded from the computation of Net Sales. 
 With respect to Collaboration Products, if any, that are sold with other products or services, if the amount invoiced for the applicable Collaboration Products represents a discount greater than the
average discount for all products and services that are sold together, then Net Sales for the Collaboration Product sold with such other products and services shall be *. 

  

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 If a Collaboration Product is sold as part of a Combination Product (as defined below)
in a country, the Net Sales of the Collaboration Product, for the purposes of determining payments based on Net Sales, shall be determined by *, A/(A+B), where: 
 A is the * of the Collaboration Product received or set by a Party, its Affiliates, licensees or Sublicensees when sold in finished form in such country and B is the * received or set by such Party, its
Affiliates, licensees or Sublicensees of the other product(s) included in the Combination Product when sold separately in finished form in such country, in each case during the applicable Net Sales reporting period or, if sales of both the
Collaboration Product and the other product(s) did not occur in such period, then in the most recent Net Sales reporting period in which sales of both occurred. 
 In the event that such * cannot be determined for both the Collaboration Product and all other product(s) included in such Combination Product, Net Sales for the purposes of determining royalty payments
shall be calculated by multiplying the Net Sales of the Combination Product by the fraction of C/C+D where C is * of the Collaboration Product and D is * of all other product(s) included in the Combination Product. In such event, such Party shall in
good faith propose to the other Party an allocation of * of the Collaboration Product and all other product(s) included in the Combination Product, the other Party shall in good faith consider such proposal, and the Parties shall seek to reach
agreement on such allocation. If the Parties are unable to reach such agreement within * after such Party provides such proposal, then such matter shall be resolved in accordance with Section 16.8 as if it were a JDC dispute. 

1.46. “New Compound” means any compound discovered or developed by Acucela or its Affiliates during the Term,
independently of any activities of the Collaboration hereunder. For clarity, New Compounds shall exclude any Potential Collaboration Compounds or other Acucela Core Compounds. 
 1.47. “Other Formulation” means any and all formulations of Collaboration Compound(s) other than the Initial Formulation. 

1.48. “Other Indication” means any and all indications within the Field other than the Initial Indication or the Second
Indication for which the Joint Development Committee approves the Development of Collaboration Compounds or Collaboration Products pursuant to the Development Plan. 

  

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 1.49. “Otsuka IP” means the Otsuka Know-How and Otsuka Patent Rights,
defined as follows: 
 1.49.1 “Otsuka Know-How” means Know-How Controlled by Otsuka or its Affiliates (other
than its Acquirer or such Acquirer’s Affiliates) on the Effective Date or during the Term that is necessary or useful to Develop, Manufacture, or Commercialize Potential Collaboration Compounds or Potential Collaboration Products in the Field
in the Acucela Territory or in the Shared Territory in accordance with this Agreement, including Otsuka’s interest in the Joint Know-How. 
 1.49.2 “Otsuka Patent Rights” means those Patent Rights Controlled by Otsuka or its Affiliates (other than its Acquirer or such Acquirer’s Affiliates) on the Effective Date or during
the Term that are necessary or useful to Develop, Manufacture or Commercialize Potential Collaboration Compounds or Potential Collaboration Products in the Field in the Acucela Territory or in the Shared Territory, including the Patents Rights with
respect to inventions contained in the Otsuka Inventions that, if prosecuted, would disclose or claim a composition of matter comprising a Potential Collaboration Compound or Potential Collaboration Product, a use of a Potential Collaboration
Compound or Potential Collaboration Product in the Field or a method of Manufacturing of a Potential Collaboration Compound or a Potential Collaboration Product, and Otsuka’s interest in the Joint Patent Rights. 

1.50. “Patent Expenses” shall have the meaning assigned on Exhibit B. 

1.51. “Patent Rights” means (a) all patents and patent applications (including provisional applications), and all
patents issuing thereon (including utility, model and design patents and certificates of invention), (b) all reissue patents, patents of addition, divisions, renewals, continuations, continuations-in-part, substitutions, extensions (including
supplemental protection certificates), registrations, confirmations and re-examinations and (c) foreign counterparts of any of the foregoing. 
 1.52. “Person” means any natural person or any corporation, company, partnership, joint venture, firm, Regulatory Authority or other governmental authority, or other entity, including a
Party. 
 1.53. “Phase II Clinical Trial” means a human clinical trial of a Collaboration Product conducted in
the specific patient population with the disease or condition of interest intended to be studied in a Phase III Clinical Trial for the purposes of preliminary assessment of safety and efficacy, and selection of the dose regimen(s) to be studied in a
Phase III Clinical Trial, as described under 21 C.F.R. §312.21(b), and that if the defined end-points are met, is sufficient to allow the Initiation of a Phase III Trial, or, the equivalent thereof in any jurisdiction other than the United
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 1.54. “Phase III Clinical Trial” means a human clinical trial of a
Collaboration Product intended to be a pivotal trial for obtaining Regulatory Approval and to otherwise establish safety and efficacy in patients with the disease or condition being studied for purposes of filing an NDA with the FDA and that would
satisfy the requirements under 21 C.F.R. §312.21(c) with respect to the United States, or, the equivalent thereof in any jurisdiction other than the United States. 
 1.55. “Phase IV Clinical Trial” means a human clinical trial for a Collaboration Product conducted after receipt of Regulatory Approval in the country for which such trial is being
conducted and that is required or requested by a Regulatory Authority to be conducted after Regulatory Approval, as a condition of or in connection with obtaining and maintaining such Regulatory Approval. For clarity, Phase IV Clinical Trials shall
be considered part of Commercialization. 
 1.56. “Plan” means each of the Development Plan, the Research Plan
and the Commercialization Plan. 
 1.57. “Post-Marketing Studies” means marketing studies, epidemiological
studies, modeling and pharmacoeconomic studies, investigator sponsored clinical trials and post-marketing surveillance studies of a Collaboration Product, other than Phase IV Clinical Trials, that are not intended for use as a basis for
obtaining Regulatory Approval (e.g., for a further indication, label expansion or otherwise) with respect to such Collaboration Product. 
 1.58. “Potential Collaboration Compound” means any Acucela Core Compound in existence as of the Effective Date or generated pursuant to the Research Plan, including any Collaboration
Compound. 
 1.59. “Potential Collaboration Product” means any pharmaceutical formulation containing a
Potential Collaboration Compound as an active chemical entity. 
 1.60. “Pre-Marketing” means all
Commercialization activities undertaken with respect to a Collaboration Product after filing with Regulatory Authority of a NDA thereof and prior to First Commercial Sale thereof and in preparation for the launch of such Collaboration Product in the
Shared Territory. Pre-Marketing shall include advertising, education, product-related public relations, health care economic studies, governmental affairs activities for reimbursement and formulary acceptance, sales force training, trademark
selection, filing, prosecution, and enforcement, and other activities included within the Commercialization Plan prior to the First Commercial Sale of a Collaboration Product in the Shared Territory. 

1.61. “Pre-Marketing Expenses” means the costs, excluding Development Costs, specifically attributable to the
Pre-Marketing of a Collaboration Product in the Shared Territory that are incurred in connection with the approved Commercialization Plan. The Commercialization Plan shall provide details on how to account for internal costs that constitute
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 1.62. “Product Recall” means any recall of individual batches or lots
of Collaboration Product due to manufacturing or quality problems causing the failure of the Collaboration Product and/or Collaboration Compound contained therein to conform to their respective specifications, cGMP or applicable quality
requirements. 
 1.63. “Product Withdrawal” shall mean any widespread withdrawal of Collaboration Product from
a country after Launch Date for health or safety reasons (but not a mere Product Recall). 
 1.64. “Regulatory
Authority” means any federal, national, multinational, provincial, state or local regulatory agency, department, bureau or other governmental entity, within a regulatory jurisdiction in the Territories, with the authority to grant any
approvals, licenses, registrations or authorizations necessary for the Development, Manufacture, use, Commercialization or coverage and reimbursement of a Collaboration Product. 

1.65. “Regulatory Approval” means, with respect to a particular country, all approvals (including where applicable,
pricing and reimbursement approval and schedule classifications), licenses, registrations or authorizations by any Regulatory Authority necessary for the Development, Manufacture, use, storage, import, transport, Commercialization or sale of a
Collaboration Product in such country. For clarity, as of the Effective Date, it is understood that Regulatory Approval in the United States does not require the pricing or reimbursement approval of any governmental agency or Third Party payor.

 1.66. “Regulatory Filings” means a document formally filed with a Regulatory Authority, including INDs,
NDAs, Drug Master Files and the like, as well as their counterparts or equivalents in jurisdictions other than the United States. 
 1.67. “Related Agreement” means each of the Promissory Note, Security Interest Agreement, Pharmacovigilance Agreement, Co-Promotion Agreement, or such other agreement entered into by the
Parties pursuant to or in connection with this Agreement. 
 1.68. “Research Program Year” means a period of
twelve (12) months, with the first Research Program Year to commence on the date on which the Research Program starts under the Research Plan. Each successive Research Program Year shall commence on the date following the last date of the
previous Research Program Year. 
 1.69. “Royalty Payment” means the Royalty for Sole Territory or Royalty for
Shared Territory, as applicable. 
 1.70. “Second Indication” means diabetic retinopathy, which is the
indication of the second priority for which the Parties intend to Develop Collaboration Compounds and Collaboration Products pursuant to the Development Plan concurrently with or subsequent to Development for the Initial Indication. 

  
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 1.71. “Sole Patent Rights” means the Acucela Patent Rights (other than
Acucela’s interest in the Joint Patent Rights) or the Otsuka Patent Rights (other than Otsuka’s interest in the Joint Patent Rights), as applicable. 
 1.72. “Sublicensee” means a Third Party to whom a Party has granted a sublicense pursuant to Section 9.3; and “Sublicense Agreement” means an agreement between a
Party and a Sublicensee granting such rights. As used in this Agreement, “Sublicensee” shall not include a wholesaler or reseller of a Collaboration Product which does not market or promote such Collaboration Product. 

1.73. “Territory” means each of the Shared Territory, the Acucela Territory and the Otsuka Territory, defined as
follows: 
 1.73.1 “Shared Territory” means the United States, Canada and Mexico, provided that the JCC
shall have the authority to determine whether to proceed with Development and Commercialization of Collaboration Product in the Field in Canada and Mexico. 
 1.73.2 “Acucela Territory” means all countries, other than those countries in the Shared Territory and the Otsuka Territory. 

1.73.3 “Otsuka Territory” means Cambodia, China (including Hong Kong and Macau), Indonesia, Japan, India, Malaysia,
Mongolia, Philippines, Singapore, South Korea (or both North Korea and South Korea if unified), Taiwan, Thailand, Vietnam, Turkey, Pakistan, Egypt, Kuwait, Saudi Arabia, Oman, United Arab Emirates, Quatar, Bahrain, Yemen, Libya, Tunisia, Morocco,
Jordan, Lebanon, Syria, Iraq, Australia and New Zealand. 
 1.73.4 “Sole Territory” means the Otsuka Territory,
with respect to Otsuka and the Acucela Territory, with respect to Acucela, as applicable. 
 1.74. “Third
Party” means any Person, other than Acucela, Otsuka or their respective Affiliates. 
 1.75. “United
States” means the United States of America, including the District of Columbia and all states, territories, possessions and protectorates thereof. 
 1.76. “Valid Claim” means (a) a claim of an issued and unexpired patent within the Acucela Patent Rights or Otsuka Patent Rights, as applicable, that has not been held unpatentable,
invalid, or unenforceable by a court or other government agency of competent jurisdiction in an unappealed or unappealable decision or has not been admitted to be invalid or unenforceable through reissue, re-examination, disclaimer, or otherwise or
(b) a claim of a pending patent application within the Acucela Patent Rights or Otsuka Patent Rights, as applicable, that has not been abandoned, finally rejected or expired without the possibility of appeal or refiling, provided, however, that
(i) Valid Claim shall exclude any such pending claim in an application that has not been granted within five (5) years following the earliest priority filing date for such application

  
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(unless and until such claim is granted) and (ii) Valid Claim shall exclude any such pending claim that does not have a reasonable bona fide basis for patentability (such reasonable bona
fide basis to be determined in accordance with Section 16.8 in the event that the Parties disagree as to whether there is a reasonable bona fide basis for patentability for such a claim as if such disagreement were a JDC dispute). 

1.77. “VCM Product” means a compound for which the primary mechanism of action is to inhibit the *. 

1.78. The capitalized terms defined in Exhibit B have the meanings set forth therein, unless otherwise defined herein. In
addition, the following terms have the meanings defined in the corresponding sections of this Agreement referenced below: 

 

			
	 Defined Term
	  	 Section

	 Activity Cessation
	  	3.5
	 Acucela
	  	Introduction
	 Acucela Development Cost Report
	  	6.4.1(c)
	 Acucela Indemnities
	  	13.2
	 Acucela Inventions
	  	10.1.2(a)
	 Acucela Territory License
	  	5.4
	 Agreement
	  	Introduction
	 Alleged Non-Infringement”
	  	10.5.1
	 Alliance Manager
	  	2.1.3
	 Auditing Party
	  	6.9.2
	 Breach Notice
	  	15.2
	 Collaboration
	  	2.1.1
	 Commercialization Plan
	  	4.6.1
	 Committee
	  	2.4.1
	 Committee Co-Chair
	  	2.4.5
	 Confidential Information
	  	14.1
	 Co-Promotion Agreement
	  	4.1.2(d)
	 Copyrighted Works
	  	11.5
	 Detailed Plan
	  	3.2.1
	 Development Plan
	  	3.2.1
	 Effective Date
	  	Introduction
	 Expiration Date
	  	5.4
	 Force Majeure Event
	  	16.5
	 Forecast
	  	3.2.1
	 Generic Version
	  	6.3.3(b)
	 Granting Party
	  	9.3.3
	 Indemnitee
	  	13.3
	 Initial Notice
	  	5.4
	 Inspected Party
	  	8.8
	 Intrinsic Defect
	  	8.6
	 JAMS
	  	16.8.1(b)
	 JCC
	  	2.3
	 JDC Committee Dispute
	  	16.8.1

			
	 Defined Term
	  	 Section

	 JDC Proposal Notice
	  	5.1
	 Joint Commercialization Committee
	  	2.3
	 Joint Development Committee
	  	2.2
	 Joint Inventions
	  	10.1.2(a)
	 Joint Know-How
	  	10.1.1
	 Joint Manufacturing Subcommittee
	  	7.5
	 Key Milestone
	  	3.5
	 Label Expansion
	  	5.1
	 Liabilities
	  	13.1
	 Liabilities for an Intrinsic Defect
	  	13.4
	 Loan
	  	6.4.1(b)
	 Milestone
	  	6.2.3
	 NDA Initiation
	  	8.1.1
	 Negotiating Party
	  	2.2.1(l)
	 New Compound License
	  	5.4
	 New Compound Negotiation Period
	  	5.4
	 Non-VCM Improvements
	  	9.5.2
	 Notice Date
	  	15.5.3(a)(i)
	 Notice Period
	  	15.5.3(a)(i)
	 Other Formulation
	  	5.1
	 Otsuka
	  	Introduction
	 Otsuka Indemnitees
	  	13.1
	 Otsuka Inventions
	  	10.1.2(a)
	 Parties
	  	Introduction
	 Party
	  	Introduction
	 Patent Infringement Claim
	  	10.3.2
	 Patent Prosecution Plan
	  	2.2.1(o)
	 Paying Party
	  	6.3.6
	 Permitted Overrun
	  	6.6
	 Pharmacovigilance Agreement
	  	8.4
	 Phase II Costs
	  	6.4.1(a)
	 Phase III Costs
	  	6.4.1(a)
	 Preexisting Product
	  	2.1.2

 
 

  

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	 Defined Term
	  	 Section

	 Product Infringement Claim
	  	10.4
	 Product Recall Expenses
	  	8.5
	 Product Withdrawal Expenses
	  	8.6
	 Promissory Note
	  	6.4.1(b)
	 Providing Party
	  	9.7.3
	 Receiving Party
	  	9.7.3
	 Research Cost
	  	5.5.4(a)
	 Research Plan
	  	5.5.1
	 Research Program Term
	  	5.5.4(a)
	 Responding Party
	  	6.9.2
	 Royalty for Shared Territory
	  	6.3.2
	 Royalty for Sole Territory
	  	6.3.1

			
	 Defined Term
	  	 Section

	 Section 15.5.4 Notice
	  	15.5.4
	 Security Interest Agreement
	  	6.4.1(b)
	 Spending Party
	  	6.6
	 Sublicense Agreement
	  	1.72
	 Sublicensing *
	  	1.44
	 Term
	  	15.1
	 Third Party Claim
	  	13.1
	 Third Party IP
	  	2.2.1(l)
	 VCM Improvements
	  	9.5.1
	 Wind-Down Development Costs
	  	15.5.3(a)(i)
	 Wind-Down Period
	  	15.5.3(b)

 
 

  
 ARTICLE 2

 SCOPE AND GOVERNANCE OF COLLABORATION 
 2.1 General. 
 2.1.1 Scope. Pursuant to and subject to the terms of
this Agreement, with respect to the Shared Territory, the Parties agree to collaborate with respect to the Development of the Collaboration Product containing the Lead Compound for the Initial Indication as well as possibly for the Second Indication
and/or Other Indications as provided in this Agreement, with the goal of obtaining Regulatory Approval for one or more Collaboration Products, in one or more indications in the Field, as soon as reasonably practicable. In addition, as further
described in Article 5, the Parties agree to engage in the Research Program the initial purpose of which shall be to Develop the Lead Compound for the Second Indication and to research and develop the Backup Collaboration Compound. The Parties,
subject to Acucela’s exercise of its option to Co-Promote pursuant to Section 4.1.2(c), will share the Net Profit (Loss) generated from sales of Collaboration Products pursuant to Section 6.5.1 (taking into account Acucela’s
Specified Percentage) in the Shared Territory and will each pay the other Party a royalty based on sales of Collaboration Products generated by, or under the authority of, each Party in its respective Sole Territory. In general, the Parties shall
select, through the JDC, a Third Party to be responsible for commercial manufacture of Collaboration Products in the Shared Territory, as detailed in Article 7. All activities described in this Section 2.1.1 and any other collaborative
activities between the Parties under this Agreement shall be hereinafter referred to as the “Collaboration.” 

2.1.2 Exclusivity. 
 (a) *, none of Acucela or any of its Affiliates, or Otsuka, or any of its Affiliates, shall undertake itself, or grant a license to a Third Party or otherwise enable or assist any Third Party, to develop,
make, use, offer for sale, sell, import or export any Acucela Core Compound or any pharmaceutical product containing any Acucela Core Compound in the Field, or outside of the Field for indications that may result in off-label use of such Acucela
Core Compound or 

  

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pharmaceutical product, in any country of the Territory, except as otherwise expressly permitted under this Agreement. The forgoing notwithstanding, in the case of a Change of Control with
respect to either Party beginning on the date that is * after the effective date of the Change of Control, the restrictions set forth in this Section 2.1.2(a) shall not apply to any product owned or controlled by such Acquirer or its Affiliates
prior to the effective date of the Change of Control (a “Preexisting Product”), provided that, after the effective date of the Change of Control, (i) such Acquirer and its Affiliates shall not use the Confidential
Information of either Party pertaining to Potential Collaboration Compounds or Potential Collaboration Products or their Manufacture or use in making, using, offering for sale, selling, importing or exporting such Preexisting Product and
(ii) no person who had been an officer, director, employee, consultant, agent or representative of Acucela within * prior to the effective date of the Change of Control shall be permitted to assist the Acquirer in making, using, offering for
sale, selling, importing or exporting the Preexisting Product. 
 (b) From the Effective Date until *, except pursuant to the
Collaboration between the Parties under this Agreement, neither Party nor any of its Affiliates shall, alone or in collaboration with a Third Party, conduct any clinical development of any VCM Product in the Field in any country of the Territory, or
grant a license to a Third Party to conduct, or otherwise assist or authorize a Third Party in conducting, any clinical development of any such VCM Product in the Field in any country of the Territory. 

2.1.3 Alliance Managers. Acucela and Otsuka each shall appoint a person (an “Alliance Manager”) to coordinate its
part of the Collaboration. The Alliance Managers shall be the primary contacts between the Parties with respect to the Collaboration and shall be responsible to report to the committees regarding the progress of the Collaboration. Each Party shall
notify the other within thirty (30) days of the Effective Date of the appointment of its Alliance Manager and shall notify the other Party as soon as practicable upon changing this appointment. 

2.1.4 Guiding Principles. 
 (a) Each committee set forth in this Article 2 shall perform its responsibilities under this Agreement based on the principles of diligence, prudence and good scientific and business judgment, and shall
have only the powers assigned expressly to it under this Article 2 and elsewhere in this Agreement. Specifically, none of such committees shall have any power to amend, modify or waive compliance under this Agreement. 

(b) Notwithstanding anything to the contrary in this Agreement, no decision by either Party, or any committee set forth in this Article
2, will be effective if such decision requires the other Party to breach any obligation or agreement with a Third Party, or to perform any activities that are materially different or greater in scope than those provided for specifically under this
Agreement. 
 2.2 Joint Development Committee. Within thirty (30) days following the Effective Date, the
Parties shall establish a Joint Development Committee (the “Joint Development Committee” or 

  

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“JDC”). The JDC shall be an ongoing, operational committee (and not merely an advisory body) responsible for the implementation of all phases of the Development Plan with respect
to the Collaboration Compound and Collaboration Product in the Field in the Shared Territory. Specifically, the JDC shall have the duties described in Section 2.2.1 below. 

2.2.1 Duties. In addition to such other duties as specifically assigned to it in this Agreement, the Joint Development Committee
shall: 
 (a) review and approve each (i) Development Plan and (ii) Research Plan, and the budgets included therein,
as needed, but no less frequently than annually; 
 (b) approve Backup Collaboration Compounds, along with a Development Plan
for each such proposed Backup Compound, for Development as a Collaboration Compound, pursuant to Section 5.2; 
 (c)
designate a Backup Collaboration Compound as the Lead Compound; 
 (d) review and approve supplements or revisions to each
Development Plan with respect to Other Indications and Other Formulations; 
 (e) review and approve necessary or advisable
clinical trials to be conducted in order to optimize the Commercialization of the Collaboration Product in the Shared Territory; 
 (f) review and approve clinical protocols for Collaboration Products within the Field under each Development Plan; 
 (g) review and finalize the NDA submission package for the Collaboration Product in each country of the Shared Territory under the Development Plan; 

(h) review and approve the Collaboration Product label proposed by Otsuka pursuant to Section 8.3; 

(i) monitor the progress of the activities undertaken by each of the Parties pursuant to each Development Plan (including review of the
conduct of clinical trials conducted by each Party pursuant to each Development Plan) and each Research Plan; 
 (j) monitor
the rate of spending pursuant to activities under each Development Plan and each Research Plan against the budget for such activities in each such respective Plan; 
 (k) review and approve proposals or recommendations submitted by the Joint Manufacturing Committee; 

  
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 (l) (i) determine whether it is necessary or advisable to license or otherwise acquire
rights under a Third Party’s Patent Rights or Know-How in the Shared Territory (the “Third Party IP”, giving due consideration to each Party’s information, analyses, opinions and recommendations related thereto, and
(ii) if such license or acquisition is determined by the JDC to be necessary or advisable, discuss and recommend appropriate terms and conditions (including the scope of the license to be negotiated) for each such license or acquisition
agreement. Otsuka will be responsible for negotiating and executing the license or acquisition agreement, unless otherwise determined by the JDC that Acucela will be so responsible, in which case, the JDC shall also determine an appropriate
allocation between the Parties of costs to reimbursed to Acucela under such license or acquisition agreement. The Party with the primary responsibility for negotiating and executing the license or acquisition agreement, (the “Negotiating
Party”) shall keep the non-Negotiating Party reasonably informed at all times with respect to the negotiations and deal terms relating to the license or acquisition of the Third Party IP and shall consider any comments, recommendations or
analysis of the non-Negotiating Party in good faith, taking into consideration such non-Negotiating Party’s interests relating to the Collaboration and its business as a whole; and 

(m) determine the flow of information with respect to Development of the Collaboration Compounds and Collaboration Products in the Field
in the Shared Territory; 
 (n) determine the overall strategy for all material filings with applicable Regulatory Authorities
in the Shared Territory with respect to the Collaboration Compounds and Collaboration Products in the Field, in accordance with each Development Plan, and any issues or questions raised by any Regulatory Authority in the Shared Territory regarding
the Collaboration Compounds and Collaboration Products or their respective Development or regulation; 
 (o) determine the
strategy and plans for filing, prosecution and maintenance of the Sole Patent Rights and the Joint Patent Rights in the Shared Territory (the “Patent Prosecution Plan”); 

(p) determine the Parties’ scientific presentation and publication strategy relating to Collaboration Compounds and Collaboration
Products within the Field in the Shared Territory pursuant to Section 14.5 below, until such time as the JCC is formed pursuant to Section 2.3 below, at which time such matters shall be deemed to be within the duties of the JCC under
Section 2.3.1 below; 
 (q) determine impact of operational activities related to Manufacturing in the Shared Territory,
(for example, forecast development, growth, changes, variances, manufacturing process improvements, equipment/new facility introduction, capacity improvements, cycle time and lead time reduction, improvement in shelf life, inventory management,
complaints, and in-market quality/performance reports); and 
 (r) review and approve any other matters pertaining to
Development of Collaboration Products in the Field in the Shared Territory. It is understood that the decision-making 

  
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authority of the JDC is limited to matters related to Development of Collaboration Compounds and Collaboration Products in the Shared Territory and does not extend to any matter in any Sole
Territory, except as otherwise expressly conferred on the JDC pursuant to Section 6.3.4 or elsewhere in this Agreement. 

2.3 Joint Commercialization Committee. Within thirty (30) days following Initiation of a Phase III Clinical Trial for a
Collaboration Product in the Initial Indication in the United States, the Parties shall establish a Joint Commercialization Committee (the “Joint Commercialization Committee” or “JCC”). The JCC shall be an ongoing,
operational (not merely advisory) committee responsible for the coordination, oversight and direction the Commercialization efforts for Collaboration Product in the Shared Territory and the Parties’ efforts and activities in connection
therewith. Specifically, the JCC shall have the duties described in Section 2.3.1 below. 
 2.3.1 Duties. In
addition to such other duties as specifically assigned to it in this Agreement, the Joint Commercialization Committee shall: 

(a) review and approve the Commercialization Plan and review and approve revisions to the Commercialization Plan as needed, but no less
frequently than annually; 
 (b) oversee the implementation of and monitor progress under and compliance with the
Commercialization Plan; 
 (c) select and approve the Collaboration Product Marks for use in connection with Commercialization
of Collaboration Product in the Shared Territory; 
 (d) review and approve initial launch strategies, promotional materials,
marketing plans, and training program for Commercialization of Collaboration Products prior to the use thereof in the Shared Territory; 
 (e) determine whether to proceed with Development and Commercialization of Collaboration Product in the Field in Canada and Mexico; 

(f) review and approve costs incurred by the Parties in connection with Commercialization activities in the Shared Territory, including
but not limited to costs incurred in connection with medical education, symposia, opinion leader development, peer-to-peer development, publications and journal ads; 
 (g) review and approve the design, in collaboration with the JDC, of Phase IV Clinical Trials and Post-Marketing Studies, and the use and dissemination of the resulting data with respect to Collaboration
Products in the Shared Territory; 
 (h) review and approve plans for branding, advertising and promotion of Collaboration
Products in the Shared Territory; 

  
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 (i) determine long range forecasts and rolling monthly forecasts for sales of
Collaboration Products in the Shared Territory; 
 (j) determine pricing and reimbursement strategies for Collaboration
Products in the Shared Territory; 
 (k) review and approve any other matters pertaining to Commercialization of Collaboration
Products in the Shared Territory. It is understood that the decision-making authority of the JCC is limited to matters related to Commercialization of Collaboration Products in the Shared Territory and does not extend to any matter for any Sole
Territory, except as expressly conferred on the JCC herein. 
 2.4 Subcommittees; Committee Membership, Decision-Making and
Operations 
 2.4.1 Subcommittees. Each of the JDC and JCC is referred to herein as a “Committee.”
Each Committee may from time to time establish sub-committees to handle matters within the scope of its authority hereunder. 

2.4.2 Membership of Committees. Each Committee shall be composed of an equal number of representatives from each of Acucela and
Otsuka. Unless the Parties otherwise agree, the number of representatives for each of Acucela and Otsuka shall be: (a) with respect to the JDC, up to three (3) representatives, and (b) with respect to the JCC, up to three
(3) representatives. Each Party may replace any of its representatives on a Committee at any time upon written notice to the other Party, provided that such replacement is of comparable standing and authority within that
Party’s organization as the person he or she is replacing. The foregoing notwithstanding, Dr. Kubota shall be at all times one of Acucela appointed members of the JDC, and shall not be replaced with anyone, so long as the JDC exists in
effect. 
 2.4.3 Committee Meetings. Each Committee shall hold regularly scheduled meetings at such times as it elects to
do so, provided, however, that each Committee shall meet at least once every Calendar Quarter, unless the respective Committee members otherwise agree. Each Party may also call for special Committee meetings to resolve
particular matters requested by such Party. The applicable Committee Co-Chair shall provide Committee members no less than fifteen (15) Business Days notice of each regularly scheduled meeting, along with its agenda, and no less than ten
(10) Business Days notice, or such shorter time period as a Committee Co-Chair deems appropriate under the circumstances, but in no event less than two (2) Business Days notice, of any special meetings called by either Party. Meetings may
be held by audio or video teleconference with the consent of each Party, which shall not be unreasonably withheld, provided that unless otherwise agreed at least two (2) of the meetings of the JDC per calendar year shall be held
in person. Locations for meetings held in person shall alternate between Acucela’s facilities in Bothell, Washington, and Otsuka’s facilities in Tokyo, Japan, or at such other locations as the Parties may otherwise agree. A reasonable
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meetings as nonvoting participants with the approval of the respective Committee, and, with the consent of each Committee Co-Chair, which consent shall not be unreasonably withheld, a reasonable
number of consultants, representatives or advisors involved in the Development, Manufacture or Commercialization of Collaboration Products may attend Committee meetings as nonvoting observers, provided that such consultants, representatives and
advisors are under obligations of confidentiality and non-use applicable to the Confidential Information of each Party that are at least as protective as those set forth in Article 14. Each Party shall be responsible for all of its own expenses
of participating in the Committees. 
 2.4.4 Decision-Making and Dispute Resolution. Decisions of each Committee shall be
made at a duly called meeting of the applicable Committee. Otsuka’s members of each Committee shall collectively have one (1) vote and Acucela’s members of each Committee shall collectively have one (1) vote, with decisions made
by unanimous vote (assuming a quorum of at least two (2) representative members from each Party). Each Committee may act on a specific issue without a meeting if it is documented in a written consent signed by a quorum of the members of the
applicable Committee from each Party. Notwithstanding anything herein to the contrary, no Committee shall have authority to amend, modify or waive compliance with this Agreement or the Related Agreements. If the JDC fails to reach consensus on an
issue specifically designated in this Agreement for its decision, the matter shall be resolved under the procedures set forth in Section 16.8, except that all thirty (30)-day periods shall be shortened to ten (10) days, and the total time
period for the procedures set forth in Sections 16.8(b) through (d) shall not exceed thirty (30) days. If the JCC fails to reach consensus on any issues specifically designated in this Agreement for its decision, the Otsuka vote shall
prevail, subject to the restrictions set forth in Section 2.1.4 and may not be disputed under Section 16.8. 
 2.4.5
Committee Co-Chairs. Each calendar year, each Party shall appoint one of its representatives on each Committee to co-chair its meetings (the “Committee Co-Chair”), provided, however, that the Acucela
appointed Co-Chair shall be at all times Dr. Kubota so long as the JDC exists in effect. For each Committee, the Committee Co-Chairs shall coordinate and prepare the agenda, insure the orderly conduct of meetings and prepare and issue minutes
of each meeting within thirty (30) days thereafter. Such minutes will not be finalized until the Committee Co-Chair from each Party has reviewed and confirmed the accuracy of such minutes in writing. The Committee Co-Chairs will solicit agenda
items from the members of the applicable Committee and provide an agenda along with appropriate information for such agenda reasonably in advance of the meeting. It is understood that such agenda will include all items requested by either Committee
Co-chair for inclusion therein. 
 2.4.6 Reports. In addition, subject to the foregoing, each Party shall, at no
additional cost to the other Party, keep the other Party (through the relevant Committees) informed of Development, Manufacturing and Commercialization activities directly or indirectly by such Party pertaining to Collaboration Compounds or
Collaboration Products or their Manufacture or use in the Field in the Shared Territory and, subject to Section 9.7, its Sole Territory in a timely fashion, including by providing regular reports (or, if it is urgent, immediate reports) to the
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Committees and the other Party summarizing such activities, and by providing to the other Party all Data produced during the course of such activities and such other information as the other
Party may reasonably request from time to time. The Parties agree that any Confidential Information shared by a Party through the Committee, or its representatives, shall not be used or disclosed by the Party receiving such information except in
accordance with the provisions of Article 14 hereof. In addition, neither Party shall have an obligation to disclose any confidential information of any licensee or sublicensee of such Party’s Sole Patent Rights or interest in Joint Patent
Rights in such Party’s Sole Territory relating to any Collaboration Compound or Collaboration Product Developed or Commercialized for such Party’s Sole Territory, subject to Section 9.7. 

2.5 Accounting. 
 2.5.1 Allocation. For the purposes of determining all costs and expenses hereunder, any cost or expense allocated by either Party to a particular category for a particular Collaboration Product
shall not also be allocated to another category for such Collaboration Product, and any cost or expense allocated to a particular Collaboration Product in a particular country shall not be allocated to another Collaboration Product of such Party or
the same Collaboration Product in a different country. For clarity, a cost or expense may be allocated across several Collaboration Products as long as the total allocation of such cost or expense does not exceed one hundred percent (100%) of
such cost or expense. 
 2.5.2 Non-Cash Consideration. In the event of the payment or receipt of non-cash consideration
in connection with the performance of activities under this Agreement, the Party engaging in such non-cash transaction shall advise the Joint Commercialization Committee of such transaction, including such Party’s assessment of the fair market
value of such non-cash consideration and the basis therefor. Such transaction shall be accounted for on a cash equivalent basis, as mutually agreed by the Parties in good faith. 

ARTICLE 3 

DEVELOPMENT 
 3.1 Overall Efforts in Development. Acucela and Otsuka shall establish and implement the Development Plan in a prompt and expeditious manner with respect to Collaboration Products within the
Field. The Parties agree that the Development Plan shall focus on Development necessary for the registration of the Collaboration Product in the United States until such time as the JCC shall determine whether to proceed with Development and
Commercialization in other countries of the Shared Territory. The Parties shall use Commercially Reasonable Efforts to ensure that the Development Plan provides at all times for adequate resources to achieve such results in an expeditious and
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 3.2 Development Plan. 

3.2.1 General. The JDC shall establish a rolling * written plan and budget for the cooperative Development of Collaboration
Products within the Field in the Shared Territory under this Agreement (as such may be amended from time to time in accordance with this Agreement, and as approved by the JDC, the “Development Plan”). The initial Development Plan
shall be approved by the Parties within ninety (90) days of the Effective Date. The Development Plan shall include (a) a reasonably detailed written plan of Development activities and budget for * of such period (the “Detailed
Plan”), together with the JDC’s then-current preliminary estimate of the Development activities for * of the rolling * period (such * estimated plan, together with the items in clause (b) below for such *, being referred to herein
as the “Forecast”), (b) an allocation of Development activities between the Parties for the * of such period, including, but not limited to, the number of allocated full time equivalent personnel and the applicable FTE Rate and
other out-of-pocket expenses to be incurred by each Party during such period, together with an overall allocation of responsibilities for activities to be conducted during the remaining * covered by the Development Plan, and (c) the overall
program of Development for the Collaboration Products within the Field, including clinical studies, regulatory strategies and other elements for obtaining Regulatory Approval of the Collaboration Products within the Shared Territory. It is
understood that the JDC will modify and update the Forecast annually in connection with the procedure for amending and updating the Development Plan under Sections 3.2.2 and 3.2.3 below. The initial Development Plan for the first * period
following the Effective Date shall be consistent with the general development activities set forth on Exhibit D and the Parties shall conduct Development activities in accordance with such Plan until such Plan is updated in accordance
with this Section 3.2. 
 3.2.2 Amendments. The Development Plan shall be updated by amendment by the JDC, not less
than annually (as set forth in Section 3.2.3 below), or more frequently as needed to take into account, changed circumstances, completion, commencement or cessation of Development activities not contemplated by the then current Development
Plan. 
 3.2.3 Timing and Process for Amendments. By September 15 of each calendar year after the Effective Date
commencing *, the JDC shall review and approve a revised Development Plan for the next * in the form described in Section 3.2.1 above. 
 3.2.4 Allocation of Responsibilities. In addition to the information described in Section 3.2.1 above, each Development Plan shall be as further described in this Section 3.2.4.

 (a) Unless otherwise agreed by the Parties, the Development Plan shall allocate to Acucela: 

(i) primary responsibility for the implementation of all Development activities in the Shared Territory with respect to any
Collaboration Compound or Collaboration Product through completion of all Phase III Clinical Trials for such Collaboration Compound or Collaboration Product, as applicable, subject to Otsuka primary responsibility as described below; and 

(ii) responsibility for such other activities as the Parties mutually agree from time to time. 

  

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 (b) Unless otherwise agreed by the Parties, the Development Plan shall allocate to
Otsuka responsibility for: 
 (i) primary responsibility for the preparation and filing with the Regulatory Authority of the
NDA for any Collaboration Product in the Shared Territory and all interactions with the Regulatory Authority associated therewith, in furtherance of which Acucela shall, promptly upon request by Otsuka, provide Otsuka with all relevant Data and
other information related to Collaboration Compounds or Collaboration Products in accordance with Section 9.7, in the possession of, or under the control of, Acucela or its Affiliate, for use by Otsuka for such purposes, and any other
assistance as may be reasonably requested by Otsuka; and 
 (ii) responsibility for such other activities as the Parties
mutually agree from time to time. 
 The forgoing notwithstanding, the Development Plan shall at all times provide for
meaningful involvement by Otsuka in the Development of each Collaboration Product in each indication in the Field to be Developed by the Parties under a Development Plan. 
 (c) The Development Plan shall be directed to those activities necessary to obtain Regulatory Approval of the Collaboration Products for the Initial Indication (and, if approved by the JDC pursuant to
Section 5.1.1, the Second Indication and one or more Other Indications) in the Shared Territory. In addition, the Parties may, from time to time, agree to include certain voluntary Post-Marketing Studies under the Development Plan;
provided, however, that unless so included, neither Party shall conduct any such study independently in the Shared Territory. 
 (d) It is understood that, from time to time, it may be necessary for a Party to conduct additional Development activities beyond that set forth in the Development Plan, in order to obtain Regulatory
Approval for a Collaboration Product in a country of the Otsuka Territory, in the case of Otsuka, or the Acucela Territory, in the case of Acucela. Such Party may conduct such additional Development activities outside of the Development Plan in its
respective Sole Territory outside the Shared Territory at its own cost, but, unless otherwise agreed in writing by the other Party, such Party may not conduct such additional Development activities outside of the Development Plan inside the Shared
Territory. 
 3.3 Diligence; Compliance with Laws. Each Party shall use Commercially Reasonable Efforts to perform
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such activities shall be conducted in accordance with all applicable Laws, including as applicable, GCPs, GLPs and GMPs. As part of such efforts, each Party shall commit the personnel and
facilities necessary to carry out its obligations under the Development Plan. Neither Party shall be required to undertake any activity relating to the Development of a Collaboration Product that it believes, in good faith, may violate any
applicable Laws. The Parties acknowledge and agree that neither Party guarantees the success of the Development tasks undertaken hereunder. 
 3.4 Development Costs. Unless otherwise provided in this Agreement, the Parties will share Development Costs in the Shared Territory (which have been set forth in the applicable approved
Development Plan) with respect to the Development activities hereunder in accordance with the provisions of Section 6.4. 

3.5 Key Member. Dr. Kubota shall be a key member of the Acucela team for the Development efforts under the Development
Plan, as well as a Co-Chair of the JDC. The Parties acknowledge that the contribution of Dr. Kubota at all times until Otsuka receives FDA approval of an NDA for a Collaboration Product in the Initial Indication in the United States (the
“Key Milestone”) is essential to Otsuka and his continued retention by and service to Acucela as the Chief Executive Officer of Acucela and as on an ongoing, active member in the Acucela development team and as a Co-Chair of the JDC
until the achievement of the Key Milestone is a material inducement to Otsuka to its acceptance and performance of its obligations hereunder. Therefore, if (i) Dr. Kubota is removed or resigns as the Chief Executive Officer of Acucela, or
(ii) his employment with Acucela ends, for whatever reason prior to the achievement of the Key Milestone, or (iii) if, in Otsuka’s reasonable judgment, Dr. Kubota ceases to act (A) as an ongoing, active member of the Acucela
development team, or (B) as a Co-Chair of the JDC, then Otsuka may, at its sole discretion, either (x) terminate this Agreement for cause without further cost or expense by giving Acucela written notice, (y) continue this Agreement
without any change or amendment of the terms hereof, or (z) continue this Agreement but assume all or part of Acucela’s primary responsibilities and roles under Section 3.2.4(a), in which Acucela shall cooperate with reasonable
requests by Otsuka to achieve a smooth and orderly transition to Otsuka of the responsibilities and roles assumed by Otsuka, including making its personnel and consultants reasonably available to Otsuka, and, to the extent requested by Otsuka,
assigning each agreement with a Third Party then in effect to Otsuka. The forgoing notwithstanding, in the case in which Otsuka, in its reasonable judgment, believes Dr. Kubota has ceased to act as an ongoing, active member of Acucela’s
development team (the “Activity Cessation”), prior to exercising any of its rights under this Section 3.5 on account of such Activity Cessation, Otsuka shall notify Dr. Kubota in writing of its belief and permit
Dr. Kubota a period of fifteen (15) days from receipt of such notice from Otsuka the opportunity to resume acting as an ongoing, active member of Acucela’s development team within such fifteen (15) day period. If Dr. Kubota
resumes acting as an ongoing, active member of Acucela’s development team, Otsuka shall not be permitted to exercise its rights under this Section 3.5 for such Activity Cessation. 

3.6 Term of Ongoing Development and Committee Obligations. * after the Effective Date, all Committees under this Agreement will
terminate. However, each Party will continue to have an 

  

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approval right with respect to matters specified to be decided by such Committees under this Agreement to the extent such Party had an approval right under the applicable Committee; that is,
Otsuka shall decide all matters that are to be decided by the JCC under this Agreement; the Party having the deciding vote under Section 16.8.2 for certain matters to be decided by the JDC under this Agreement shall be decided by such Party;
and all matters to be decided by the JDC under this Agreement where neither Party has the deciding vote shall be decided pursuant to Section 16.8.1 if the Parties are unable to mutually agree. 

ARTICLE 4 

COMMERCIALIZATION 
 4.1 Shared Territory.
 4.1.1 Overall Structure. As an essential part
of the overall collaboration between Otsuka and Acucela, with the goal of completing the Development of a Collaboration Product and making it available to customers in the Shared Territory, in particular, in the United States, at the earliest
appropriate time, the Parties agree to the following terms with respect to the Commercialization of the Collaboration Products in the Shared Territory: 
 (a) Otsuka or its Affiliates will be the holder of the Regulatory Approval in the Shared Territory; 
 (b) Unless otherwise decided by the JCC, the Collaboration Product Marks will be the same throughout the Shared Territory for each distinct Collaboration Product, except that country-specific Internet
domain names may be used in each country in the Shared Territory; and Otsuka shall own all right, title and interest in the Collaboration Product Marks; 
 (c) Otsuka shall use Commercially Reasonable Efforts to Commercialize Collaboration Products throughout the Shared Territory, subject to Section 1.73.1; 

(d) To the extent legally permissible, Acucela retains the option, for itself and its Affiliates, to Co-Promote Collaboration Products
in the Shared Territory. The Parties acknowledge that as of the Effective Date it would be legally permissible for Acucela and its Affiliates to Co-Promote Collaboration Products in each country in the Shared Territory, assuming Regulatory Approval
for such Collaboration Products had been obtained by the Parties in such country. 
 (e) If Acucela elects to participate in
Co-Promotion, the Net Profits (Losses) with respect to Net Sales of Collaboration Products in the Field in the relevant country of the Shared Territory in respect of which Acucela has elected to participate in Co-Promotion shall be shared between
the Parties pursuant to Section 6.5.1 in accordance with Acucela’s Specified Percentage. If Acucela does not elect to participate in Co-Promotion in any country or countries in the Shared Territory pursuant to Section 4.1.2(c),
Acucela shall only be entitled to receive the Royalty for the Shared Territory for the country or countries in which Acucela does not elect to Co-Promote in the Shared Territory pursuant to Section 6.3.2; and 

  
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 (f) all sales of Collaboration Products in the Shared Territory, whether arising from
the activities of Otsuka’s (or its Affiliates’) sales forces or Acucela’s (or its Affiliates’) sales forces, shall be booked in the name of Otsuka or its Affiliate(s) (as Otsuka may choose), and title to all units of
Collaboration Products shall remain in Otsuka or its Affiliate until sold to customers. 
 4.1.2 Commercialization Rights and
Obligations of Otsuka. 
 (a) Grant of Commercialization Rights. During the term of this Agreement, Otsuka shall
have the exclusive right, subject to the Co-Promotion rights of Acucela in the Shared Territory, to Commercialize Collaboration Products in the Shared Territory under the approved Collaboration Product Marks. 

(b) Commercialization Obligations of Otsuka. Except for Acucela’s specific obligations set forth in this Article 4, Otsuka
shall be responsible for Commercializing Collaboration Products throughout the Shared Territory; in doing so, Otsuka shall use Commercially Reasonable Efforts to implement the strategies, Commercialization Plan and other decisions and directives of
the JCC. 
 (c) Acucela’s Co-Promotion Option. 

(i) Co-Promotion Territory. To the extent legally permissible, Acucela retains the option, exercisable in its sole discretion, to
Co-Promote Collaboration Products with Otsuka in the Shared Territory, which option Acucela may exercise on a country-by-country basis. In any country in the Shared Territory for which Acucela exercises its option, Acucela shall elect to participate
in the Co-Promotion of Collaboration Products at a participation level that is between a minimum of thirty-five percent (35%) and a maximum of fifty percent (50%) of the budgeted sales representatives for such country as set forth in the
applicable Commercialization Plan. Acucela shall specify the exact percentage of its elected participation level (“Specified Percentage”) in its notice to Otsuka exercising such option to Co-Promote. Acucela’s share of Net
Profit (Loss) shall be the same as the Specified Percentage; e.g. if the Specified Percentage is thirty-five percent (35%), Acucela’s share of Net Profit (Loss) shall be thirty-five percent (35%), with Otsuka receiving the remaining share and
if the Specified Percentage is fifty percent (50%), each Party’s share of Net Profit (Loss) shall be fifty percent (50%). 

(ii) Acucela Election to Co-Promote. No later than * prior to the date projected by the JCC to be the Launch Date in each country
in the Shared Territory (on a country-by-country basis), Otsuka will notify Acucela in writing of the sales force needs in such country, in accordance with the then-current Commercialization Plan for such country approved by the JCC. No later than
the date that is * prior to the JCC’s projected Launch Date in such country, or 

  

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the date that is * after receipt of Otsuka’s notice of the sales force needs in such country, whichever is later, Acucela shall decide whether to participate in such Co-Promotion of
Collaboration Products in such country. If Acucela elects to participate in Co-Promotion of the Collaboration Products, it will concurrently notify Otsuka in writing of such election and of Acucela’s Specified Percentage. Acucela’s
commitment to Co-Promote Collaboration Products in such country, once decided, shall not be withdrawn without the prior written approval of Otsuka. Should the Commercialization Plan’s budgeted number of sales representatives for such country
increase or decrease (as determined by the JCC), Acucela’s Specified Percentage shall be applied to such increased or decreased number of sales representatives, provided however, in the case of an increase, Acucela shall have a commercially
reasonable amount of time to satisfy any required increase. If Acucela elects to participate in Co-Promotion, Otsuka and/or its Affiliates shall meet the remainder of the sales force needs. 

(iii) Acucela Does Not Elect to Co-Promote. If Acucela does not elect to participate in Co-Promotion of Collaboration Products in
any country in the Shared Territory pursuant to Section 4.1.2(c), Otsuka and its Affiliates may, at their cost, except where costs are otherwise expressly allocated between the Parties in this Agreement, freely (but in accordance with the
approved Commercialization Plan) Commercialize Collaboration Product in such county by themselves or together with or through any Third Party in accordance with the terms of this Agreement (including, Sections 9.3.2 and 9.3.3) and shall provide the
entire sales force needs in such country as they see fit. 
 (iv) Co-Promotion Activities. If Acucela elects to
participate in Co-Promotion of Collaboration Products in any country in the Shared Territory, the following (v) through (ix) shall apply on a county-by-country basis. 

(v) Sales Team Assignments. Each Party shall deploy its sales forces in accordance with Acucela’s Specified Percentage and
the Commercialization Plan applicable to the country in question, but each Party shall retain direct supervision of its own sales force, including the power to hire and fire. The assignment by the JCC of each Party’s sales force within each
country in the Shared Territory, *. Acucela sales representatives will be geographically dispersed in each country in the Shared Territory *. In geographic areas where both Parties have sales representatives, every effort will be made by the JCC to
*. The Parties shall attempt to minimize sales force realignments so as not to disrupt representative-to-representative and representative-to-physician relationships. On a monthly basis, each Party shall submit to the JCC a detailed written report
describing its Detailing and promotional activities during the preceding month, on a country-by-country basis. 
 (vi)
Training. Otsuka shall prepare for and hold Collaboration promotion training programs prior to and periodically after the Launch Date in each country in the Shared Territory to ensure the sales forces are adequately trained, provided
that there will a single training program which is commonly provided to both Otsuka and Acucela sales representatives in the Shared Territory. 

  

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 (vii) Effective Co-Promotion Practices. Otsuka and Acucela, and their respective
Affiliates, shall cooperate to employ and implement effective Co-Promotion practices. Such cooperation shall include the development, through the JCC, of a clear understanding of the marketing roles and responsibilities of each Party in each country
in the Shared Territory and the establishment, through the JCC, of effective communication systems and processes to ensure that the promotional activities of the Parties’ sales forces are efficient, coordinated and productive. 

(viii) Exchange of Marketing Information. Otsuka and Acucela shall together develop and maintain current Detailing lists,
schedules, and other appropriate information for the purpose of determining the physicians and other Persons involved in the drug purchase decision-making process to whom Otsuka and Acucela sales forces may Detail Collaboration Products. 

(ix) Advertising and Promotional Materials. Otsuka shall prepare and select all advertising and promotional materials used for
the sales and marketing of Collaboration Product in each country in the Shared Territory, provided that there will be a single set of advertising and promotional materials used by the Otsuka sales force and, if approved by Acucela, the
Acucela sales forces. All advertising and promotional materials shall be in full compliance with all applicable Laws. All such materials shall be subject to review and approval by Acucela for use by its sales force as will be more specifically set
forth in the Co-Promotion Agreement. Otsuka shall own all right, title and interest in all such materials. 
 (d)
Co-Promotion Agreement. If Acucela elects to participate in Co-Promotion of any Collaboration Product in any country in the Shared Territory, the Parties shall, as soon as practicable after such election, enter into a separate co-promotion
agreement which shall contain material terms as described in this Section 4.1 as well as other customary and commercially reasonable terms, including (i) a fair and reasonable allocation of the roles and responsibilities between the
Parties in connection with the Co-Promotion in such country; and (ii) a sufficiently detailed mechanism or structure under which the Parties shall share all Net Profits (Losses) in such country, taking into account Acucela’s Specified
Percentage on terms to be consistent with the relevant provisions of this Article 4 and Section 6.5.1(the “Co-Promotion Agreement”). The JCC, by mutual agreement of the Parties, shall develop reasonable reporting,
reconciliation and payment provisions to effectuate the sharing of Net Profit (Losses) as described in this Article 4 and Section 6.5.1 and such provisions shall be set forth in the Co-Promotion Agreement. 

4.2 Otsuka Territory. Subject to the terms and conditions of this Agreement, Otsuka shall have the sole right and
responsibility to control the Development, Manufacture and Commercialization of Collaboration Compounds and Collaboration Products in the Field in the Otsuka Territory without the involvement of the JDC, the JCC or Acucela except as specifically
provided hereby, and shall use Commercially Reasonable Efforts to Commercialize Collaboration Products in the Field in the Otsuka Territory. All Know-How pertaining to Development, Manufacture and Commercialization of Collaboration Compounds and
Collaboration Products in the Field in the Shared Territory may be used by Otsuka in the Otsuka Territory in accordance with the licenses granted under Sections 9.1.1 and 9.1.5. 

  
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 4.3 Acucela Territory. Subject to the terms and conditions of this
Agreement, Acucela shall have the sole right and responsibility to control the Development, Manufacture and Commercialization of Collaboration Compounds and Collaboration Products in the Field in the Acucela Territory without the involvement of the
JDC, the JCC or Otsuka except as specifically provided hereby, and shall use Commercially Reasonable Efforts to Commercialize Collaboration Products in the Field in the Acucela Territory. All Know-How pertaining to Development, Manufacture and
Commercialization of Collaboration Compounds and Collaboration Products in the Field in the Shared Territory may be used by Acucela in the Acucela Territory in accordance with the licensed granted under Sections 9.2.1 and 9.2.4. 

4.4 Territory Compliance. Acucela shall use diligent lawful efforts to take the actions reasonably necessary to prevent
importation or sales of Collaboration Products sold by Acucela into the Otsuka Territory by a Third Party, and Otsuka shall use diligent lawful efforts to take the actions reasonably necessary to prevent importation or sales of Collaboration
Products sold by Otsuka into the Acucela Territory by a Third Party. 
 4.5 Sales and Distribution. Subject to the
terms and conditions of this Agreement, Otsuka in the Shared Territory, Otsuka in the Otsuka Territory and Acucela in the Acucela Territory shall be responsible for invoicing, booking sales, establishing all terms of sale and warehousing and
distributing Collaboration Products, order processing, invoicing and collection, distribution and inventory and receivables with respect to Collaboration Products in the Field. 

4.6 Commercialization Plan. 
 4.6.1 General. All Commercialization activities with respect to Collaboration Products in the Field in the Shared Territory shall be governed by a rolling * written commercialization plan and
budget to be reviewed and approved by the JCC (as such may be amended from time to time in accordance with this Agreement, the “Commercialization Plan”). The Commercialization Plan may be amended from time to time in writing by the
JCC. 
 4.6.2 Amendments. The Commercialization Plan shall be updated by amendment by the JCC not less than annually, as
well as more frequently as the JCC determines necessary. 
 4.6.3 Timing and Process. At least * prior to the anticipated
date of the First Commercial Sale of a Collaboration Product in the Field in Shared Territory, the JCC shall review and approve the initial Commercialization Plan. By September 15 of each calendar year following the approval of the initial
Commercialization Plan by the JCC, the JCC shall review and approve a revised Commercialization Plan for *. 

  

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 4.6.4 Plan Contents. The Commercialization Plan shall include a reasonably
detailed description of Commercialization activities and budget for each calendar year covered by such plan, including a timeline for initiation and completion of Commercialization Plan tasks and a list of proposed Launch Dates country-by-country in
the Shared Territory as may be consistent with the JCC decision to whether to Develop and Commercialize Collaboration Compound and Collaboration Product outside the United States. The Commercialization Plan will include (a) general strategies
for promoting Collaboration Products in the Field in the Shared Territory; (b) marketing plans, including advertising and public relations programs; (c) an outline of promotion, detailing and marketing activities in each country in the
Shared Territory as may be appropriate; (d) plans related to Phase IV Clinical Trials and Post-Marketing Studies of Collaboration Products in the Field in the Shared Territory as may be appropriate; and (e) a budget for all of the
foregoing, including Pre-Marketing Expenses and Allowable Expenses in the Shared Territory. 
 ARTICLE 5 

CERTAIN OTHER ACTIVITIES 
 5.1 Label Expansions and Other Formulations within the Field. In the event that either Party proposes to Develop in the Shared Territory (a) a Collaboration Product for the Second Indication
or Other Indication, within the Field (a “Label Expansion”) or (b) an Other Formulation for an indication within the Field, such Party shall make a written proposal to the JDC for the Development thereof, including a proposed
work plan, budget and timeline (the “JDC Proposal Notice”). 
 5.1.1 If the JDC determines to include such
Label Expansion or Other Formulation in the Development Plan, then such Development Plan shall include the work plan, budget and timeline proposed by the Developing Party, or as the JDC may otherwise determine, and the Parties shall share the costs
of Development for such Label Expansion or Other Formulation in accordance with Section 6.4 below. 
 5.1.2 If the JDC
determine to not include such Label Expansion or Other Formulation under the applicable Development Plan, then neither Party shall have the right to further Develop such Label Expansion or Other Formulation in the Shared Territory, but may do so in
its Sole Territory at its sole expense. 
 5.2 Development of Backup Collaboration Compounds. If the Joint Development
Committee determines that it will be beneficial to pursue the Development of a Backup Collaboration Compound, it shall designate one or more Backup Collaboration Compounds, that have been mutually agreed upon by the Parties and meet criteria
established by the JDC, for which such efforts shall be conducted. In such event, the JDC shall, within * after designation of such Backup Collaboration Compound for Development activities, amend the Development Plan to reflect Development
activities for each such Backup Collaboration Compound, and each such Backup Collaboration Compound shall thereafter be deemed to be a Collaboration Compound. For 

  

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clarity, a Potential Collaboration Compound shall not be considered a Backup Collaboration Compound until it has been selected in accordance with this Section 5.2 and until the JDC has
amended the Development Plan to reflect the Development activities for each such Backup Collaboration Compound. 
 5.3
Activities Inside and Outside the Field. The application of Section 5.1 is limited to activities within the Field with respect to the Collaboration Compounds and the Collaboration Products. In this regard, during the Term, nothing in
this Agreement shall be deemed to grant to Otsuka the right to Develop or Commercialize Collaboration Compounds and Collaboration Products (including Other Formulations) outside the Field. The Parties may discuss from time to time expanding the
Field to include indications outside the Field for a given Collaboration Compound or Collaboration Product, and if the Parties so agree, then the Field shall be deemed to include such additional indication with respect to Collaboration Products
containing such Collaboration Compound. Unless so agreed, however, during the Term, Otsuka shall not, directly or indirectly, Develop or Commercialize in any country a pharmaceutical product containing a Collaboration Compound outside the Field.

 5.4 Right of First Negotiation for New Compound License and Acucela Territory License. Prior to Acucela entering into
negotiations to grant to a Third Party (i) rights to develop or commercialize a Collaboration Product in any country in the Acucela Territory (an “Acucela Territory License”), or (ii) rights to develop or commercialize any
New Compound in the Field in the Territory (a “New Compound License”), Acucela agrees to notify Otsuka in writing, and in the case of a New Compound, to provide a summary description of the New Compound, and the relevant data
available therefor, that would be the subject of such negotiations (“Initial Notice”). Upon request by Otsuka following its receipt of such Initial Notice, Acucela shall be required to negotiate in good faith with Otsuka for the
terms and conditions under which Acucela would grant such rights to Otsuka. If a binding, definitive, written agreement between the Parties with respect to the rights described in the relevant Initial Notice has not been entered into by the date
that is (x) * after the date Acucela provided the Initial Notice to Otsuka in the case of an Acucela Territory License, or (y) * after the date Acucela provided the Initial Notice to Otsuka in the case of a New Compound License (the
“New Compound Negotiation Period”), Acucela shall be free to grant to any Third Party the Acucela Territory License, or the New Compound License, as applicable, without further obligations to Otsuka, and on any terms that Acucela
considers appropriate. It is understood that Acucela need only provide one such Initial Notice to Otsuka before engaging in negotiations with the first Third Party, and that Acucela is not obligated to provide any further notice if Acucela
subsequently engages in discussions with one or more additional Third Parties with respect to the subject matter described in the Initial Notice. In addition, Acucela’s obligations with respect to New Compounds under this Section 5.4 shall
expire on the date that is * after the Effective Date (the “Expiration Date”), at which time Acucela shall have no further obligations to Otsuka under this Section 5.4 with respect to any New Compound, provided that, for
any Initial Notice delivered less than * prior to the Expiration Date, the Expiration Date shall be extended for the period of time required for Otsuka to have the benefit of the full New Compound Negotiation Period. 

  

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 5.5 Research Program. 

5.5.1 General. Within sixty (60) days following the Effective Date, the JDC shall establish a * written plan for cooperative
research with respect to (a) Collaboration Compounds and Collaboration Products for the Second Indication and Other Indications in the Field, (b) Other Formulations (e.g., topical formulations) for Collaboration Compounds, (c) basic
research designed to further elucidate the mechanism of action of the Lead Compound, and (d) Backup Collaboration Compounds in the Field (as such may be amended from time to time in accordance with this Agreement, and as approved by the JDC,
the “Research Plan”). The initial Research Plan shall provide, at a minimum, for Acucela to conduct (i) * and (ii) *. The Research Plan shall include (a) a reasonably detailed written plan of research activities and
budget for the first * period of the * in effect and (b) an allocation of research activities between the Parties for such period, including, but not limited to, the number of allocated full time equivalent personnel and the applicable FTE Rate
and other out-of-pocket expenses to be incurred by each Party during such period. It is understood that Acucela personnel shall have the sole responsibility for performing research activities under the Research Plan, provided that the
Research Plan shall at all times provide for meaningful involvement by Otsuka in the oversight and supervision of activities under the Research Plan. Any compounds discovered as a result of the Research Program shall be promptly presented by Acucela
to the JDC. 
 5.5.2 Amendments. The Research Plan shall be updated or amended by the JDC from time to time, not less
than annually (as set forth in Section 5.5.3 below), or more frequently as needed. 
 5.5.3 Timing and Process for
Amendments. With respect to the Research Plan, by September 15 of each calendar year after the Effective Date commencing in *, the JDC shall review and approve a proposed Research Plan for calendar year(s) remaining in the Research Program
Term in the form described in Section 5.5.1 above. 
 5.5.4 Research Cost; Research Program Term. 

(a) The initial Research Program shall be for a period of three (3) years from the Effective Date, unless extended by the Parties
by mutual written agreement (the “Research Program Term”). During the initial three (3) Research Program Years, Otsuka shall pay to Acucela five million dollars ($5,000,000) per Research Program Year (the “Research
Cost”), provided that the Research Plan, and any amendment or update thereto, shall be reviewed and approved by the JDC; and provided further that all Research Costs paid by Otsuka shall be used solely for
the performance of the Research Program and shall not be used for any other purpose. Unless mutually agreed by the Parties in writing, the Research Plan shall not require Acucela to incur costs in excess of the amounts received by it pursuant to
this Section 5.5.4. Acucela shall be solely responsible for any costs incurred in excess of the Research Costs. 

  

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 (b) Otsuka shall pay to Acucela the amount of Research Cost for each Research Program
Year in four equal installments, each to be paid within ten (10) Business Days after the beginning of each Calendar Quarter. 
 5.5.5 Research Program Term Extension. The Research Program Term may be extended, or a new Research Program may be initiated, upon mutual written agreement of the Parties, provided that, Acucela
personnel shall have the sole responsibility for performing research activities under any research plan, subject to Otsuka’s oversight and supervision of activities under any such research plan. 

ARTICLE 6 

PAYMENTS, ROYALTIES AND THE SHARING OF COST AND NET PROFIT (LOSS) 

6.1 Initial License Fee. Otsuka shall pay to Acucela a license fee in the amount of $5,000,000 within ten (10) Business Days
after the Effective Date, in accordance with Section 6.7. The license fee set forth in this Section 6.1 shall not be refundable or creditable against any future milestone payments, royalties or other payments by Otsuka to Acucela under
this Agreement. 
 6.2 Milestone Payments for Collaboration Products. 

6.2.1 Development Milestone Payments for Collaboration Products. Otsuka shall pay to Acucela the Milestone payments set forth
below following the first achievement by Acucela or Otsuka or any of their Affiliates (or in the case of Ostuka, its Sublicensees) of the corresponding Milestone event set forth below with respect to the Initial Indication: 

 

					
	 Milestone Event
	  	Milestone
Payment 
Amount	 
	 Initiation of a Phase III Clinical Trial of a Collaboration Product in the Field in the United States
	  	$	10,000,000	  
	 Filing of an NDA for a Collaboration Product in the Field with the FDA in the United States
	  	$	15,000,000	  
	 Receipt of approval by the FDA of an NDA for a Collaboration Product in the Field in the United States
	  	$	20,000,000	  
	 Receipt of approval by the Regulatory Authority of a Marketing Approval Application in Japan for a Collaboration Product in the
Field
	  	$	10,000,000	  

  
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 6.2.2 Net Sales Milestone Payments for Collaboration Products. In addition,
Otsuka shall pay to Acucela the one-time Milestone payments set forth below at such time as the aggregate, worldwide, annual Net Sales of all Collaboration Products in the Field during a particular calendar year first reaches the following amounts:

  

							
	 Aggregate Annual

Worldwide Net Sales of All

Collaboration Products
	 	  	Milestone
Payment 
Amount	 
	$	250,000,000	  	  	$	25,000,000	  
	$	500,000,000	  	  	$	50,000,000	  
	$	1,000,000,000	  	  	$	100,000,000	  

 6.2.3 Reports and Payments. Each Party shall notify the other Party of its achievement of any of
the foregoing milestones events under Sections 6.2.1 and 6.2.2 (each, a “Milestone”), and payment of the amount corresponding to such Milestone shall be due within ten (10) Business Days after such achievement. For the
avoidance of doubt, the Milestone payments set forth in this Section 6.2 shall not be creditable against any future Milestone payments, royalties or other payments by Otsuka to Acucela under this Agreement. 

6.2.4 Other Indications. Without limiting Aucela’s rights to receive Milestone Payments pursuant to Section 6.2.1 for
the First Indication, Otsuka shall pay to Acucela one-half (1/2) of the Milestone payments set forth in Section 6.2.1 above within sixty (60) days after the achievement of the corresponding development Milestone with respect to the
Second Indication for which such development Milestones are achieved. No development Milestones shall be due with respect to any indication after Otsuka has paid Acucela development Milestones for the Initial Indication and the Second Indication.
For the avoidance of doubt, the Milestone payments set forth in Section 6.2.1 shall be made only for the Initial Indication and Second Indication (as set forth in this Section 6.2.4), without taking into account which Collaboration Product
is used therefor or which formulation of Collaboration Product is used therefor. 
 6.3 Royalties. 

6.3.1 Royalty for Sole Territory. Subject to this Section 6.3, each Party shall pay the other Party a royalty of two percent
(2%) on annual, aggregate Net Sales of Collaboration Products in such Party’s Sole Territory during the Royalty Term set forth in Section 6.3.5 (“Royalty for Sole Territory”). 

6.3.2 Royalty for Shared Territory. If Acucela does not elect to participate in Co-Promotion pursuant to Section 4.1.2(c) in
a country or countries in the Shared Territory, subject to this Section 6.3, Otsuka shall pay Acucela the royalties set forth below on annual, aggregate Net Sales of Collaboration Products in the country or countries in the Shared Territory for
which Acucela did not elect to participate in Co-Promotion during the Royalty Term set forth in Section 6.3.5 (“Royalty for Shared Territory”). For clarity, the royalty tiers in the table below include Net Sales of
Collaboration Products in only those countries in the Shared Territory where Acucela does not elect to participate in Co-Promotion pursuant to Section 4.1.2(c). Except as provided for in this Section 6.3.2, neither Party shall owe the
other Party a royalty in respect of Net Sales in the Shared Territory. 

  
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	 Annual Net Sales
	  	Royalty	 
	 On the portion of Net Sales up to and including *
	  	 	19	% 
	 On the portion of Net Sales greater than * and up to and including *
	  	 	21	% 
	 On the portion of Net Sales greater than * and up to and including *
	  	 	22	% 
	 On the portion of Net Sales greater than *
	  	 	23	% 

 6.3.3 Generic Competition. 

(a) Upon commencement of Generic Competition with respect to a Collaboration Product in a country in the Sole Territory or the Shared
Territory, as the case may be, the Royalty Payment payable thereafter under this Section 6.3 with respect to such Collaboration Product sold in such country shall be reduced by *. 

(b) “Generic Competition” with respect to a Collaboration Product in the Field in a country shall be deemed to commence
only after: (i) the expiration of all Valid Claims covering such Collaboration Product in the Field and all regulatory exclusivity with respect to such Collaboration Product in the Field, (ii) one or more Generic Versions of such
Collaboration Product in the Field are being marketed for an approved indication of such Collaboration Product in such country and (iii) such Generic Version(s) represent a total prescription unit volume of at least * of such Collaboration
Product and such Generic Version(s) for all indications in the Field, in the aggregate, in such country in a Calendar Quarter, determined by the number of prescriptions written for such Collaboration Product and such Generic Version(s), in the
aggregate, during such Calendar Quarter (as measured by a Scott-Levin Associates audit or other mechanism determined by the JCC); and “Generic Version” shall mean, with respect to any Collaboration Product, any pharmaceutical
product sold by a Third Party, not authorized by Otsuka or Acucela, or their respective Affiliates, licensees or Sublicensees, (a) (i) which is “therapeutically equivalent” as evidenced by the FDA’s issuance of a therapeutic
equivalence code of “A” with respect to such Collaboration Product (as such term is used in the Approved Drug Products with Therapeutic Equivalence Evaluations published by the FDA Center for Drug Evaluation and Research or any successor
publication), or by the similar finding or designation by the Regulatory Authority in the country in which the pharmaceutical product is being sold or (ii) if, in such countries in which no such similar funding or designation is made, has
substantially the same indication as that for the Collaboration Product approved by the relevant Regulatory Authority, and (b) which contains a Collaboration Compound as its active pharmaceutical ingredient and is approved in reliance on the
prior approval of a Collaboration Product as determined by the applicable Regulatory Authority. 
 6.3.4 Third Party
Royalties. If a Party is required (a) to enter into an agreement to license or acquire rights under a Third Party’s Patent Rights or Know-How that are necessary to use, import, export, Manufacture or Commercialize (i) a
Collaboration Compound contained in a Collaboration Product in the Field or (ii) a Collaboration Product in the Field and (b) pursuant to such agreement, to pay to a Third Party royalties or other payments in order to use, import, export,
Manufacture or Commercialize such Collaboration Compound or Collaboration Product in the Field 

  

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in a country of the Territory, then such Party may deduct up to * of the royalty or other payments payable to such Third Party from the Royalty Payment thereafter payable to the other Party under
Sections 6.3.1 and 6.3.2 above, as applicable, with respect to such Collaboration Compound or Collaboration Product in the Field in such country, provided that the Royalty Payment paid under Sections 6.3.1 and 6.3.2 shall not
be reduced by greater than * of what would otherwise have been received pursuant to the terms of this Agreement (and any such amounts not so deducted as a result of the application of the foregoing limitation shall be carried forward and deducted
from subsequent payments of royalties until fully absorbed); and provided further that, if Acucela elects to participate in the Co-Promotion pursuant to Section 4.1.2(c), all the royalties and other payments to such Third
Party for use, import, export, Manufacture or Commercialization of a Collaboration Compound or Collaboration Product in the Shared Territory in the Field shall be treated as *. In the event of a dispute between the Parties whether such Third
Party’s Patent Rights or Know-How are required, such dispute shall be resolved by the JDC based upon the well reasoned opinion of a qualified independent patent attorney retained by the JDC. 

6.3.5 Royalty Term. Royalty payments under this Section 6.3 shall apply to each Collaboration Product on a country-by-country
basis until the last to expire Valid Claim covering the manufacture, importation, use or sale of such Collaboration Product in the country in which such Collaboration Product is sold, or * years after First Commercial Sale of the first Collaboration
Product in such country, whichever is later. 
 6.3.6 Reports and Royalty Payment. Within sixty (60) days after the
end of each Calendar Quarter during which there are Net Sales giving rise to a payment obligation of a Royalty Payment, a Party owing a Royalty Payment pursuant to Section 6.3.1 or 6.3.2 above (a “Paying Party”) shall deliver
to the other Party a report setting out, for each Collaboration Product on a country-by-country basis, the following: 
 (a)
gross sales of Collaboration Products in the Field in such country during the relevant Calendar Quarter; 
 (b) Net Sales of
Collaboration Products in the Field in such country during the relevant Calendar Quarter; 
 (c) all relevant deductions in
accordance with Section 1.45 and this Section 6.3.6; and 
 (d) all relevant exchange rate conversions; and

 (e) Any amounts due under this Section 6.3 for such Calendar Quarter shall accompany such report. 

  

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 6.4 Development Costs. 

6.4.1 Shared Territory. 
 (a) Cost Sharing. Subject to the terms and conditions of this Agreement, (i) Otsuka shall be responsible for all Development Costs incurred in accordance with the Development Plan with respect
to each Collaboration Compound or Collaboration Product in the Field in the Shared Territory in connection with all Development activities up to and including those in connection with Phase II Clinical Trials for each such Collaboration Compound or
Collaboration Product in each such indication (including the Second Indication) in the Field in the Shared Territory, provided, however, that the total amount of such Development Costs borne by Otsuka hereunder for all
Collaboration Compounds and Collaboration Products in all indications shall not exceed forty million dollars ($40,000,000), subject to Section 6.4.1(d) (the “Phase II Costs”); and (ii) each Party shall be responsible for
fifty percent (50%) of all Development Costs incurred in accordance with the Development Plan with respect to each Collaboration Compound and Collaboration Product in the Field in the Shared Territory in connection with all Development
activities in connection with Phase III Clinical Trials for each such Collaboration Compound and Collaboration Product in each such indication (including the Second Indication) in the Field in the Shared Territory (the “Phase III
Costs”). 
 (b) Loan to Acucela. Otsuka shall loan to Acucela the amount of the Phase III Costs for which
Acucela is responsible pursuant to the foregoing clause (or Phase II Costs pursuant to Section 6.4.1(d)) pursuant to the Promissory Note in the form attached here to as Exhibit E (the “Promissory Note”). The
Promissory Note shall provide that (v) interest shall accrue and be payable on all amounts loaned to Acucela thereunder by Otsuka (the “Loan”) from the date of advance of the Loan until paid in full at the applicable rates set
forth in the Promissory Note; (w) such interest shall accrue from day to day and shall be calculated on the basis of 360 days per year; (x) the Loan shall be repayable to Otsuka out of the sum of fifty percent (50%) of either
Acucela’s share in positive Net Profits generated by the Parties in the Shared Territory or fifty percent (50%) of the Royalty for the Shared Territory payable to Acucela pursuant to Section 6.3.2 (after taking into account any
applicable deductions under Section 6.3.3 or Section 6.3.4), as the case may be on a country-by-country basis; and fifty percent (50%) of positive net profits (calculated in the same manner as Net Profits) generated by Acucela from
sales of Collaboration Products in the Acucela Territory; and fifty percent (50%) of any consideration (excluding any and all Sublicensing Deductions) received by Acucela from the sale, licensing or sublicensing of rights to Collaboration
Compounds or Collaboration Products or the underlying intellectual property rights in the Acucela Territory; (y) if the Loan has not been so repaid in full within five (5) years from the First Commercial Sale in the Shared Territory,
seventy-five percent (75%) of the forgoing items shall be applied to the repayment of the Loan and accrued interest until paid in full; and (z) the foregoing notwithstanding, all or any portion of the Loan may be prepaid by Acucela to
Otsuka at any time by giving Otsuka fourteen (14) days prior written notice. Further, in order to secure the repayment of all the Loans advanced by Otsuka to Acucela under this Section 6.4.1(b), Acucela shall create and perfect a security
interest of first priority in favor of Otsuka on Acucela’s entire interests in Net 

  
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Profits, Royalty Payments and the other amounts as described clause (x) above and on Acucela’s entire interests in ownership of the related Collaboration Compound and Collaboration
Product and the underlying intellectual property rights, both in the Shared Territory and Acucela Territory, pursuant to Security Interest Agreement in the form attached hereto as Exhibit F (the “Security Interest
Agreement”). Repayments under the Loan payable to Otsuka pursuant to clause (x) or clause (y), as applicable, of this Section 6.4.1(b) with respect to positive net profits generated or consideration received by Acucela with
respect to the Acucela Territory shall be made to Otsuka within thirty (30) days of Acucela’s receipt of such net profits or consideration; provided, however, that in the case of net profits generated from Commercialization of a
Collaboration Product in the Acucela Territory where Acucela books sales, repayments under the Loan on account of such net profits shall be made to Otsuka within sixty (60) days after the end of each Calendar Quarter. Repayments under the Loan
payable to Otsuka out of amounts generated in the Shared Territory (whether such amounts are Acucela’s share in positive Net Profits generated by the Parties in the Shared Territory pursuant to Section 6.5.1 or the Royalty for the Shared
Territory payable to Acucela pursuant to Section 6.3.2, as applicable) shall be applied in the percentages set forth above in clause (x) or clause (y), as applicable, of this Section 6.4.1(b) on the date payment of such amounts to
Acucela would have been otherwise due under this Agreement as payment to the outstanding obligations due under the Promissory Note and any remaining amounts with respect to Acucela’s share of the Net Profits or the Royalty for the Shared
Territory shall be paid by Otsuka to Acucela by the date payment of such amounts to Acucela are due under this Agreement. 

(c) Reporting and Payment of Development Costs. Within ten (10) days after the end of each Calendar Quarter during which any
Development activities are performed in the Shared Territory hereunder, Acucela shall provide to Otsuka a written report describing Acucela’s individual Development Cost items (with appropriate supporting documents reasonably requested by
Otsuka) actually incurred during such Calendar Quarter and confirming the number of FTEs engaged for each member and reasonably approximating the portion of such FTEs allocated to each major activity (the “Acucela Development Cost
Report”). The Acucela Development Cost Reports will be in such form as the JDC may reasonably agree from time to time. The Acucela Development Cost Report shall accompany an appropriate invoice to Otsuka for the amount of Development Costs
owed to Acucela by Otsuka pursuant to Section 6.4.1(a). Within forty-five (45) days of receiving such appropriate invoice, Otsuka shall pay Acucela the amount of Development Costs owed to Acucela pursuant to Section 6.4.1(a) and shall
advance Acucela the Loan pursuant to Section 6.4.1(b). 
 (d) Phase II Costs in Excess of the Cap. If the Phase II
Costs exceed forty million dollars ($40,000,000), then Otsuka may, at its sole discretion, either (i) terminate this Agreement pursuant to Section 15.4.2; or (ii) continue this Agreement without any amendment to the terms hereof. If
Otsuka elects the foregoing (ii), then the Parties shall continue this Agreement and each Party shall be responsible for fifty percent (50%) of the Phase II Costs in excess of forty million dollars ($40,000,000), unless otherwise agreed by the
Parties, provided, however, that Otsuka shall loan to Acucela the amount of such costs for which Acucela is responsible under the same terms and conditions as set forth in Section 6.4.1(b) above and Acucela shall create and
perfect a security interest in favor of Otsuka for such loan under the same terms and conditions as set forth in Section 6.4.1(b) above. 

  
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 (e) Other Development Costs. Other than the Development Costs to be paid or
borne by Otsuka pursuant to this Section 6.4.1, Acucela shall be solely responsible for all Development Costs with respect to Collaboration Compounds and Collaboration Products in the Field in the Shared Territory incurred by Acucela, except to
the extent set forth in Section 6.6. 
 6.4.2 Otsuka Territory. Subject to the terms and conditions of this
Agreement, Otsuka shall be responsible for all costs incurred by it with respect to Development of all Collaboration Products in the Field for the Otsuka Territory. 
 6.4.3 Acucela Territory. Subject to the terms and conditions of this Agreement, Acucela shall be responsible for all costs incurred by it with respect to Development of all Collaboration Products
in the Field for the Acucela Territory. 
 6.5 Commercialization. 

6.5.1 Shared Territory. If Acucela elects to participate in Co-Promotion pursuant to Section 4.1.2(c), subject to the terms
and conditions of this Agreement, and in accordance with Acucela’s Specified Percentage, Otsuka and Acucela shall share Net Profits (Losses) with respect to Net Sales of Collaboration Products in the Field in the country or countries of the
Shared Territory in respect of which Acucela has exercised its right to Co-Promote. This Net Profits (Losses) sharing shall apply to each Collaboration Product on a country-by-country basis in the Shared Territory until the JCC decides to terminate
the Commercialization of such Collaboration Product in such country. The Parties shall mutually agree, through the JCC, a mechanism or structure under which they will share all Net Profits (Losses), taking into account Acucela’s Specified
Percentage and all Net Sales and Other Income and Allowable Expenses with respect to each Collaboration Product in the Shared Territory, such mechanism or structure to be set forth in the Co-Promotion Agreement. The Co-Promotion Agreement shall also
set forth reconciliation and payment provisions to effectuate the sharing of Net Profits (Losses) as described in Section 4.1.2(c) and this Section 6.5.1. If Acucela does not elect to participate in the Co-Promotion pursuant to
Section 4.1.2(c) in a particular country or countries in the Shared Territory, the Commercialization of Collaboration Products in the Field in such country or countries in the Shared Territory shall be at Otsuka’s cost as set forth in
Section 4.1.2(c)(iii), except as otherwise specifically set forth in this Agreement, including Sections 8.5, 8.6, 10.2.3(a), 10.6.1, 11.1.4, 11.3 and 13.4. 
 6.5.2 Otsuka Territory. Subject to the terms and conditions of this Agreement, Otsuka shall be responsible for all costs incurred by it with respect to Manufacture and Commercialization of
Collaboration Products in the Field in the Otsuka Territory. 

  
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 6.5.3 Acucela Territory. Subject to the terms and conditions of this Agreement,
Acucela shall be responsible for all costs incurred by it with respect to Manufacture and Commercialization of Collaboration Products in the Field in the Acucela Territory. 
 6.6 Cost Overruns. With respect to each of the Phase II Costs, Phase III Costs and Allowable Expenses to be shared by the Parties under Sections 6.4.1(a) and 6.5.1 above, if the total costs
incurred by a Party (such party, the “Spending Party”) in a calendar year exceed the costs budgeted for such Party in the applicable approved Plan, then the Parties shall continue to bear their respective share of such costs under
this Article 6, notwithstanding such overrun, up to their respective share of * of the budgeted amounts (the “Permitted Overrun”), but the Non-Spending Party shall not be responsible for its share of such aggregate costs in
excess of the Permitted Overrun unless the applicable Committee has approved such costs in excess of the Permitted Overrun, provided, however, that nothing in this Section 6.6 shall require Otsuka to bear Phase II Costs in
excess of the forty million dollar ($40,000,000) cap set forth in Section 6.4.1(a). 
 6.7 Other Payment
Terms.
 6.7.1 Payment Method. All payments between the Parties under this Agreement (including the payments due
under this Article 6) shall be made by bank wire transfer in immediately available funds to an account designated by the Party to which such payments are due. All payments due under this Agreement which are not timely paid shall bear interest
to the extent permitted by Law at a rate equal to the U.S Prime Lending Rate, as quoted in The Wall Street Journal (U.S. Eastern Edition), effective for the date on which the payment was due. This Section 6.7.1 shall in no way limit any
other remedies available to the Parties. 
 6.7.2 Currency. All dollar amounts in this Agreement are stated in, and all
payments under this Agreement shall be made in, United States Dollars. With respect to amounts invoiced or incurred in a currency other than United States Dollars, the amounts shall be expressed in the currency in which such sale was originally
made, or in which such cost was incurred, together with the United States Dollar equivalent, which shall be determined using the exchange rate for such currencies for the date of the respective invoice and where such exchange rate shall be the
mid-price exchange rate taken from Bloomberg as published on the date of the relevant invoice or such other publication as may be mutually agreed between the Parties. 
 6.8 Taxes. Any withholding or other taxes that either Party is required by Law to withhold or pay on behalf of the other Party, with respect to any payments to such other Party hereunder or
any of the Related Agreements, shall be deducted from such payments and paid to the appropriate tax authority contemporaneously with the remittance to the other Party, provided, however, that the withholding Party shall furnish
the other Party with proper evidence of the taxes so paid. Each Party shall cooperate with the other and furnish the other Party with appropriate documents to secure application of the most favorable rate of withholding tax under Law (or exemption
from such withholding tax payments, as applicable). Notwithstanding the foregoing, the Parties understand that, as of the Effective Date, no withholding taxes are applicable with respect to any of its payment obligations under this Agreement.

  

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 6.9 Records Retention; Audits. 

6.9.1 Records Retention. Each Party will maintain complete and accurate books, records and accounts used for the determination of
Development Costs and Allowable Expenses incurred in connection with the performance of this Agreement or otherwise relevant for the calculation of Net Sales and Net Profits (Losses), in sufficient detail to confirm the accuracy of any payments
required under this Agreement, which books, records and accounts will be retained by such Party for five (5) years after the end of the period to which such books, records and accounts pertain, or longer as is required by Law. 

6.9.2 Audit Request. Upon the written request of a Party (the “Auditing Party”) and not more than once each
calendar year, the other Party (the “Responding Party”) shall permit the Auditing Party, accompanied by an independent certified public accounting firm of internationally recognized standing, selected by the Auditing Party and
reasonably acceptable to the Responding Party, at the Auditing Party’s expense, to have access during normal business hours to the records of the Responding Party as may be reasonably necessary to verify the accuracy of the financial reports
and calculations made under this Article 6 and Exhibit B for any Calendar Quarter ending not more than five (5) years prior to the date of such request. Any such audit shall be conducted at the location where the records are
normally kept, unless otherwise reasonably requested by the Responding Party. 
 6.9.3 Discrepancies. If, as a result of
such audit, it is established that additional amounts were owed by the Responding Party for the audited period, such Party shall pay such additional amounts within thirty (30) days after the date such discrepancy is established. In the event of
a dispute as to whether there is a discrepancy, the matter shall be resolved by the JDC. The fees charged by such accounting firm shall be paid by the Auditing Party; provided, however, that if the audit establishes that the
aggregate amounts payable by the Responding Party for such period are more than * of the aggregate amounts actually paid for such period, then the Responding Party shall pay the reasonable fees and expenses charged by such accounting firm. The
Auditing Party shall treat all financial information subject to review under this Section 6.9 as confidential, and shall cause its accounting firm to retain all such financial information in confidence. 

ARTICLE 7 

MANUFACTURING AND SUPPLY 
 7.1 Manufacture and Supply. Acucela will initially supply Collaboration Compound for use in the Collaboration through its current supplier at a price equal to Acucela’s Fully Burdened
Manufacturing Costs of obtaining and testing such Collaboration Compound or Collaboration Product. Within *, the Parties intend to find one or more mutually acceptable Third Parties to assume responsibility for the supply of all Collaboration
Compounds or Collaboration Products for 

  

	*	Confidential Treatment Requested. 

  
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use in the Collaboration in the Shared Territory. Otsuka shall administer the relationship with such Third Party and shall enter into any manufacturing agreement with such Third Parties,
provided that, Otsuka shall keep Acucela reasonably informed at all times with respect to the negotiations and deal terms relating to such manufacturing agreements and shall consider any comments, recommendations or analysis of Acucela in
good faith, taking into consideration Acucela’s interests relating to the Collaboration and its business as a whole. Thereafter, such Third Parties shall supply Collaboration Compound and Collaboration Product for use in Development and
Commercialization of Collaboration Compounds and Collaboration Products in the Shared Territory. 
 7.2 Retained
Rights. Each Party shall have the right to Manufacture or have-Manufactured Collaboration Compounds and Collaboration Products anywhere in the Territory for use in such Party’s Sole Territory. 

7.3 Process Development; Manufacturing Approvals. The continued development of the process for the manufacture of
Collaboration Compounds and Collaboration Products as well as the scale up of that process and all material issues incident to the development to produce Collaboration Products for commercial purposes in the Shared Territory in sufficient quantity
and in a timely manner will be overseen by the Joint Development Committee. Acucela and Otsuka will use Commercially Reasonable Efforts to make necessary filings to obtain, or to cause a Third-Party manufacturer of Collaboration Compounds and/or
Collaboration Products to make necessary filings to obtain, Regulatory Approval for the manufacture of Collaboration Compounds and Collaboration Products as part of the Regulatory Approval to market each Collaboration Product in the Shared
Territory. If applicable, such filings shall include the filing and maintenance of a Drug Master File with the FDA and the equivalent thereof in the other countries in the Shared Territory in which the Parties seek Regulatory Approval of
Collaboration Products. Once such filings are made, no changes to the process for the manufacture of Collaboration Compounds and Collaboration Products for the Shared Territory shall be made without the prior written approval of both Parties.

 7.4 Supply Expenses. The Fully Burdened Manufacturing Cost of supplying Collaboration Product for use in Development,
including clinical trials, for the Shared Territory shall be included in Development Costs and borne by the Parties as provided in Section 6.4.1. The Cost of Goods Sold for the manufacture and supply of Collaboration Products for
Commercialization in the Shared Territory or other Manufacturing for the Shared Territory included in the term “Commercialization” shall be included in the calculation of Allowable Expenses and, as such, shared by the Parties in accordance
with Section 6.5.1 for each country or countries in the Shared Territory where Acucela elects to Co-Promote Collaboration Products pursuant to Section 4.1.2(c), or borne by Ostuka for each country or countries in the Shared Territory where
Acucela does not elect to Co-Promote Collaboration Products pursuant to Section 4.1.2(c). Each Party shall be responsible for all costs of manufacturing quantities of Collaboration Products for each Party’s respective Sole Territory. The
costs of any batches of Collaboration Compounds and Collaboration Products that are not manufactured in compliance with all aspects of Law or fail to conform to the applicable specifications, shall be (i) equally shared by the Parties as Phase
III Costs in accordance with Section 6.4.1 if such batches are manufactured for Development in the Shared Territory, and (ii) equally 

  
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shared by the Parties and constitute a part of Allowable Expenses in accordance with Section 6.5.1, for each country or countries in the Shared Territory where Acucela elects to Co-Promote
Collaboration Products pursuant to Section 4.1.2(c), or borne by Ostuka for each country or countries in the Shared Territory where Acucela does not elect to Co-Promote Collaboration Products pursuant to Section 4.1.2(c), if such batches
are manufactured for Commercialization use in the Shared Territory. 
 7.5 Joint Manufacturing Subcommittee. The
Joint Development Committee shall, within ninety (90) days after the Effective Date, form a joint manufacturing subcommittee as a subcommittee of the JDC (the “Joint Manufacturing Subcommittee”) to review and provide advice
with respect to the manufacture of Collaboration Compounds and Collaboration Products for the Shared Territory. The role of such subcommittee shall be advisory, and such subcommittee shall not have any authority itself to approve or disapprove any
actions with respect to such manufacturing activities. The Joint Manufacturing Subcommittee shall propose to the Joint Development Committee mechanisms with respect to the delivery, acceptance, forecasting, and ordering of Collaboration Compounds
and Collaboration Products for clinical purposes for the Shared Territory, and the Joint Development Committee shall, after approving such mechanisms, include such mechanisms in the Development Plan. 

ARTICLE 8 

REGULATORY MATTERS 
 8.1 Regulatory Responsibilities. Unless otherwise agreed between the Parties: 
 8.1.1 Shared Territory Regulatory Responsibility. As between the Parties, in the Shared Territory and except as otherwise provided in the Development Plan, (a) Acucela shall be responsible for
filing, obtaining and maintaining, in its own name, all Regulatory Filings, and all interactions and communications with the Regulatory Authorities related thereto, up to, but not including, the submission by the Parties to the FDA of the written
request for the pre-NDA meeting (“NDA Initiation”) or the foreign equivalent of such correspondence and meetings, for each Collaboration Product in each indication in the Field, and (b) Otsuka shall be responsible for filing,
obtaining and maintaining, in its or its Affiliate’s own name, all NDAs and other Regulatory Filings thereafter, and all interactions and communications with the Regulatory Authorities related thereto, for each Collaboration Product in
each indication in the Field, in furtherance of which Acucela shall, promptly upon request by Otsuka upon NDA Initiation, assign and transfer to Otsuka or its designee ownership of all Regulatory Filings relating to each Collaboration Product filed
by Acucela and all Regulatory Approvals arising therefrom, including related correspondence with Regulatory Authorities, and provide to Otsuka copies thereof. 
 8.1.2 Otsuka Territory Regulatory Responsibility. As between the Parties, Otsuka shall be responsible for filing, obtaining and maintaining, in its own name, all Regulatory Filings and Regulatory
Approvals for Development, Manufacture and Commercialization of Collaboration Products in the Field in the Otsuka Territory. For the avoidance of doubt, Otsuka shall not be obliged to file, obtain or maintain any of such Regulatory Filings or
Regulatory Approvals. 

  
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 8.1.3 Acucela Territory Regulatory Responsibility. As between the Parties,
Acucela shall be responsible for filing, obtaining and maintaining, in its own name, Regulatory Filings and Regulatory Approvals for Development, Manufacture and Commercialization of Collaboration Products in the Acucela Territory. For the avoidance
of doubt, Acucela shall not be obliged to file, obtain or maintain any of such Regulatory Filings or Regulatory Approvals. 

8.2 Regulatory Filings and Meetings. The Party with responsibility for regulatory matters in the Shared Territory pursuant to
Section 8.1.1 shall, to the extent reasonably practicable: (a) promptly provide the JDC with reasonable advance written notice of any material Regulatory Filings, meetings, telephone conferences and/or other discussions with the Regulatory
Authority of such country, scheduled or unscheduled, that pertain to Collaboration Compounds or Collaboration Products, (b) afford representatives of such other Party an opportunity to comment on such Regulatory Filings, and accept such
comments or notify such other Party of the reason for not accepting any such comments, and (c) afford representatives of such other Party an opportunity to attend all such meetings, telephone conferences and/or discussions with the Regulatory
Authority of such country. The Party with responsibility for regulatory matters in the Shared Territory shall provide the other Party’s representatives on the JDC with copies of all such Regulatory Filings and all minutes of any such meetings,
telephone conferences and/or discussions with the Regulatory Authority of such country in the Shared Territory, and shall promptly notify the other Party’s representatives on the JDC with respect to any material changes or material matters that
may arise in connection with Regulatory Approvals of Collaboration Products within such country in the Shared Territory. Each Party will provide the other Party with translations of such documents into English to the extent prepared or obtained for
its own use. 
 8.3 Labeling. The JDC shall have ultimate control of the contents of Collaboration Product labels, as
submitted to Regulatory Authorities in the Shared Territory, and the ensuing negotiations towards the finalization thereof as approved by Regulatory Authorities. Otsuka shall submit to the JDC for review, discussion and approval, as soon as
reasonably practicable and not less than ten (10) Business Days prior to submission to a Regulatory Authority, the proposed label for Collaboration Product in the Shared Territory. 

8.4 Adverse Events and Post-Market Surveillance. With respect to adverse drug experiences, as defined by 21 C.F.R.
Section 314.80 and/or 600.80 (as applicable), and IND safety reports, as referenced in 21 C.F.R. Section 312.32, and like regulations of other Regulatory Authorities and relevant ICH guidelines, on a Collaboration Product-by-Collaboration
Product and indication-by-indication basis, the Party with regulatory responsibility for a country (i.e. Acucela prior to filing an NDA with the applicable Regulatory Authority or Otsuka after such filing), Otsuka in the Otsuka Territory and Acucela
in the Acucela Territory) shall (as between the Parties) be responsible for and shall establish operating procedures to report to the appropriate Regulatory Authority in that country all adverse drug experiences in accordance with the Laws of the
relevant countries and agencies. Such operating procedures shall include any measures necessary for each Party to fully comply with such Laws as apply to adverse drug experiences. Such operating

  
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procedures, and any material revisions to them, shall be provided to the JCC for review and approval. The Parties agree to enter into and implement, as soon as reasonably practicable, a separate
agreement setting forth the pharmacovigilance responsibilities and procedures for safety information exchange (the “Pharmacovigilance Agreement”). The Pharmacovigilance Agreement shall contain such terms as are reasonable and
customary for arrangements of this type, and shall in all events include such terms as are necessary to ensure that both Parties are able to comply with applicable Laws pertaining to adverse events and safety reporting and provide that there shall
be one global safety database maintained by Otsuka or its designee and accessible to both Parties. The JDC shall determine standard operating procedures by which the Parties shall have access to such global safety database. 

8.5 Product Recall. If either Otsuka or Acucela discovers or becomes aware of any fact, condition, circumstance or event (whether
actual or potential) concerning or related to Collaboration Product that may reasonably require Product Recall in any country in the Territory, such Party shall communicate such fact, condition, circumstance or event promptly to the other Party.
Otsuka shall be responsible and have final decision making authority in the Shared Territory and the Otsuka Territory, and Acucela shall be responsible in the Acucela Territory and have final-decision-making authority in the Acucela Territory, for
the management and implementation of Product Recall (which, for the avoidance of doubt, shall not include Product Withdrawal). All costs associated with such Product Recall shall be borne by the Party who shall be responsible for the management and
implementation thereof, provided, however, that all such costs with respect to the Shared Territory (“Product Recall Expenses”) shall be equally shared between the Parties (and shall constitute a part of
Allowable Expenses, if applicable). Each Party shall, as soon as practicably possible after Product Recall, report to the JDC and the other Party such Product Recall, along with the reason(s) therefor and the actions taken or to be taken to remedy
the problem causing such Product Recall. 
 8.6 Product Withdrawal. If either Otsuka or Acucela discovers or becomes
aware of any fact, condition, circumstance or event (whether actual or potential) concerning or related to Collaboration Product that may reasonably require Product Withdrawal or a “Dear Doctor” letter related to Collaboration Product in
any country in the Territory, such Party shall communicate such fact, condition, circumstance or event promptly to the other Party. In the event (i) any Regulatory Authority issues a request, directive or order that Collaboration Product be
withdrawn from the market; (ii) a court of competent jurisdiction orders that Collaboration Product be recalled or withdrawn from the market; or (iii) the JDC (in the Shared Territory), Otsuka (in the Otsuka Territory) or Acucela (in the
Acucela Territory) reasonably determines, after mutual consultation with each other, that Collaboration Product should be withdrawn from the market in a given country or countries or that a “Dear Doctor” letter should be sent relating to
use of Collaboration Product, each Party shall take all appropriate remedial actions with respect thereto, provided, however, that Otsuka in the Otsuka Territory and Acucela in the Acucela Territory shall, in its sole
discretion, finally determine any Product Withdrawal matters. To the extent that it is necessary or appropriate to communicate with any Person, including to any Regulatory Authority, the media or any customer, concerning any such fact, condition,
circumstance or event, Otsuka with respect to the Shared Territory, Otsuka with respect to the Otsuka Territory and Acucela with respect to the Acucela Territory, shall be the primary contact concerning the remedial actions. All costs associated
with 

  
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any such remedial actions (“Product Withdrawal Expenses”) shall be borne by the Party at fault for giving rise to the fact, condition, circumstance or event resulting in Product
Withdrawal as determined by a mutually acceptable testing laboratory or a regulatory consultant that is familiar with the circumstances of the Product Withdrawal. Notwithstanding the foregoing, if a Product Withdrawal in the Shared Territory becomes
necessary not due to the fault of either Party but due to an intrinsic problem or defect in the efficacy or safety of Collaboration Compound contained in the Collaboration Product (the “Intrinsic Defect”), all Product Withdrawal
Expenses shall be allocated as follows; (i) all Product Withdrawal Expenses with respect to the Shared Territory shall be equally shared between the Parties (and shall constitute a part of Allowable Expenses, if applicable); (ii) * of
Product Withdrawal Expenses with respect to the Otsuka Territory shall be borne by Otsuka; and (iii) * of Product Withdrawal Expenses with respect to the Acucela Territory shall be borne by Acucela. 

8.7 Access to Regulatory Filings. Acucela and Otsuka shall each have a right to cross reference or incorporate by reference any
Regulatory Filings or drug master file (and any Data contained therein) for Collaboration Products made in any country in the Shared Territory (including all Regulatory Approvals) to support Regulatory Filings for Collaboration Products in each
Party’s Sole Territory and to enable either Party to fulfill its obligations or exercise its rights granted or retained under this Agreement. In addition, in each agreement with an Affiliate or Third Party involving Data with respect to a
Collaboration Product in the Field in the Shared Territory, the contracting Party shall require that such Affiliate or Third Party provide such Party with access to all such Data as is necessary or useful to be obtained for purposes of Regulatory
Approvals. 
 8.8 Inspection. If either Party or its Affiliates or contractors (an “Inspected Party”)
are to be inspected by a Regulatory Authority regarding the Development or Manufacture of a Collaboration Product, in each case within the Field, where relevant, and with respect to the Shared Territory, the Inspected Party shall promptly notify the
JDC of the inspection in advance. The Inspected Party shall, where practicable, permit representatives of the other Party to participate as observers with respect to such inspection, and shall provide the JDC with a written report of any such
inspection, noting with specificity any records or documents reviewed by the regulatory inspector, and including copies of any FDA 483s (or their foreign equivalent) or written communications provided by any Regulatory Authority relating to such
inspection. The Inspected Party shall also provide an opportunity for the JDC to assist in responding to any issues or concerns relating to such inspections, and shall provide copies of all communications to and from any Regulatory Authority
relating thereto to the JDC. The Parties shall cooperate in good faith and otherwise mutually support any such inspections by the FDA or other Regulatory Authority of facilities, clinical investigators or contract manufacturers with respect to the
Shared Territory. In furtherance of the preceding sentence, if the Inspected Party receives a request by a Regulatory Authority in the Shared Territory to inspect any facilities of the other Party, such other Party shall cooperate with and makes its
facilities available for such inspection. 
 8.9 Audit Rights. Each Party shall have the right, during normal business
hours, and no more than once per year, other than following a finding of material deficiency, with more frequent audits upon agreement of the Parties, to inspect and audit: (a) those portions of the facilities of the

  

	*	Confidential Treatment Requested. 

  
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other Party, its Affiliate, subcontractor and investigator site used in the performance of the Development Plan or the Manufacturing of Collaboration Compound or Collaboration Products to be
supplied for use in the Shared Territory hereunder, to ascertain compliance with Laws and Regulatory Approvals, including cGLP, cGCP and cGMP, and conformance with the applicable specifications and quality assurance standards, provided
that the inspecting Party shall on such occasions be accompanied by a representative of the other Party; and (b) any of the other Party’s documentation or its Affiliates’, subcontractors’ or investigators’
documentation relating to such Development Plan or Manufacturing of Collaboration Compound or Collaboration Product to be supplied for use in the Shared Territory hereunder, including, to the extent permitted by Law and any applicable privacy
policies, the medical records of any patient participating in any clinical study under the Development Plan. A Party’s audit rights shall be limited by bona fide Third Party agreements or confidentiality obligations in effect as of the
Effective Date; provided, however, that each Party shall use its reasonable efforts to (i) obtain audit rights for the other Party under such pre-existing agreements, and (ii) ensure that such other Party is granted
audit rights to the same extent which a Party has audit rights in any future agreements. 
 ARTICLE 9 

GRANT OF RIGHTS 
 9.1 Acucela Grant. Subject to the terms and conditions of this Agreement, including the restrictions set forth in Section 3.2 with respect to Development outside the Development Plan in the
Shared Territory, Acucela hereby grants to Otsuka, under the Acucela IP: 
 9.1.1 an exclusive license (even as to Acucela) to
Develop (but excluding the right to engage in any Discovery Research) and Commercialize Collaboration Compounds and Collaboration Products in the Field in the Otsuka Territory and to Manufacture Collaboration Compounds and Collaboration Products in
the Field in the Territory for use in the Otsuka Territory, subject to Acucela’s rights to Manufacture Collaboration Compounds and Collaboration Products in the Territory for use in the Acucela Territory as set forth in Section 7.2;

 9.1.2 a co-exclusive (with Acucela and its subcontractors) license to Develop (but excluding the right to engage in any
Discovery Research) Collaboration Compounds and Collaboration Products in the Field in the Shared Territory in accordance with the Development Plan; 
 9.1.3 a co-exclusive (with Acucela and its subcontractors) license if Acucela elects to Co-Promote with Otsuka pursuant to Section 4.1.2(c), or an exclusive (even as to Acucela) license if Acucela
does not elect to Co-Promote with Otsuka pursuant thereto, to Commercialize Collaboration Compounds and Collaboration Products in the Field in the Shared Territory in accordance with the Commercialization Plan; 

9.1.4 an exclusive license (even as to Acucela) to Manufacture Collaboration Compounds and Collaboration Products in the Territory for
use in the Shared Territory, subject to Acucela’s right to Manufacture Collaboration Compounds and Collaboration Products in the Territory (i) for the Shared Territory pursuant to Section 7.1, and (ii) for Acucela’s Sole
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 9.1.5 the right to have the foregoing performed on its behalf by subcontractors in
accordance with Section 9.4 below. 
 9.2 Otsuka Grant. Subject to the terms and conditions of this Agreement,
including the restrictions set forth in Section 3.2 with respect to Development outside the Development Plan in the Shared Territory, Otsuka hereby grants to Acucela, under the Otsuka IP: 

9.2.1 an exclusive license (even as to Otsuka) to Develop and Commercialize Collaboration Compounds and Collaboration Products in the
Field in the Acucela Territory and to Manufacture Collaboration Compounds and Collaboration Products in the Field in the Territory for use in the Acucela Territory, subject to Otsuka’s rights to Manufacture Collaboration Compounds and
Collaboration Products in the Field in the Territory for use in the Shared Territory or the Otsuka Territory; 
 9.2.2 a
co-exclusive (with Otsuka and its subcontractors) license to Develop Collaboration Compounds and Collaboration Products in the Field in the Shared Territory in accordance with the Development Plan; 

9.2.3 (only if Acucela elects to Co-Promote with Otsuka pursuant to Section 4.1.2(c)) a co-exclusive (with Otsuka and its
subcontractors) license to Commercialize Collaboration Compounds and Collaboration Products in the Field in the Shared Territory in accordance with the Commercialization Plan; and 

9.2.4 the right to have the foregoing performed on its behalf by subcontractors in accordance with Section 9.4 below. 

9.3 Sublicenses. 
 9.3.1 Affiliates. In connection with its Development, Manufacture or Commercialization of Collaboration Products under this Agreement, either Party may grant to one or more of its Affiliates a
non-exclusive, non-sublicensable, non-transferable sublicense under the rights granted to such Party under Section 9.1 or 9.2 above, as applicable; provided that such Party shall remain responsible for the activities of such
Affiliate to the same extent as if such activity were conducted by such Party. 
 9.3.2 Third Parties. Each Party may
grant to one or more Third Parties a sublicense under the rights granted to such Party under Section 9.1 or 9.2 above, as applicable, to Develop, Manufacture and/or Commercialize Collaboration Products with respect to such Party’s Sole
Territory only. Except as set forth in the preceding sentence, and except for Otsuka’s use of Third Parties to Manufacture Collaboration Compounds or Collaboration Products for the Shared Territory

  
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under Section 7.1, neither Party shall be permitted to grant to any Third Party a sublicense (or license) under the rights granted to (or by) such Party under Section 9.1 or 9.2 above,
as applicable, to Develop or Commercialize Collaboration Compounds or Collaboration Products in the Shared Territory, or to Manufacture Collaboration Compounds or Collaboration Products in the Territory for use in the Shared Territory, without the
other Party’s written consent. The foregoing notwithstanding, if Acucela does not elect to Co-Promote with Otsuka pursuant to Section 4.1.2(c) with respect to a specific country or countries in the Shared Territory, then Otsuka may grant
to one or more Third Parties a sublicense (or license) under the rights to (or by) Otsuka under Section 9.1 (or Section 9.2) to Develop, Manufacture or Commercialize Collaboration Compounds or Collaboration Products in the country or
countries in the Shared Territory with respect to which Acucela did not elect to exercise its Co-Promotion right. 
 9.3.3
Conditions of Sublicenses. If a Party (“Granting Party”) grants a sublicense of its rights in Section 9.3.2 above, such sublicense shall be subordinate to the terms and conditions of this Agreement, and the Granting
Party shall remain responsible to the other Party for the performance of any of its Sublicensees under such rights and shall remain responsible for any payments due hereunder. It is understood and agreed that, except as may be otherwise agreed in
writing by the Parties, Sublicensees shall have no rights with respect to the Committees or with respect to the Plans, nor to exercise any provision of this Agreement against a Party (other than the exercise of their rights pursuant to
Section 9.1 or 9.2 above, as applicable). Upon request, the Granting Party will provide to the other Party a copy of each sublicense agreement, provided that any such sublicense agreement may be redacted to the extent not
necessary for the other Party to understand the scope and terms of such sublicense. It is understood that this Section 9.3.3 shall not apply to the grant by a Party of a license under its own IP (i.e., Acucela IP, where Acucela is the Party
granting such license, and Otsuka IP, where Otsuka is the Party granting such license) to the extent permitted under this Agreement. 
 9.4 Subcontractors. Except as otherwise set forth in this Agreement, each Party may engage subcontractors to perform, under its direction, specific functions that are assigned to it hereunder or
that it carries out in the exercise of its rights hereunder, in each case in accordance with this Section 9.4. Any agreements with such subcontractors shall be at least as protective of Collaboration Compounds and Collaboration Products as the
terms and conditions of this Agreement. Each Party shall be fully responsible under this Agreement for the performance hereof by its permitted subcontractors as if such Party so performed this Agreement itself. 

9.5 License to Acucela. 
 9.5.1 VCM Improvements. Otsuka hereby grants to Acucela a non-exclusive, worldwide, irrevocable, except in the event of termination of this Agreement by Otsuka pursuant to Section 15.2 or
15.3, fully paid-up license, under Patent Rights Controlled by Otsuka that cover VCM Improvements to make, have made, use, sell, offer for sale and import VCM Products in the Field, subject to the exclusive and co-exclusive rights granted to Otsuka
under this Agreement and subject to Section 2.1.2. Acucela shall have the right to sublicense its license rights to any Third 

  
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Party under this Section 9.5.1 provided, however, that (a) any sublicensee is, with respect to any territory at issue, concurrently receiving from Acucela a license or
sublicense under one or more Patent Rights Controlled by Acucela to make, have made, use, offer for sale, sell or import VCM Products in the Field in such territory, and (b) such license to Patent Rights Controlled by Acucela is granted under
the same termination and expiration terms as the sublicense to the Patent Rights Controlled by Otsuka. As used herein, “VCM Improvements” means any inventions made by or under authority of Otsuka in connection with Development,
Manufacture or Commercialization of Collaboration Compounds or Collaboration Products to the extent such inventions are applicable to a VCM Product, or the manufacture, use or formulation thereof. 

9.5.2 Non-VCM Products. Upon the written request by Acucela, Otsuka shall be required to negotiate in good faith with Acucela for
the terms and conditions under which Otsuka would grant to Acucela a non-exclusive or exclusive (as decided by Otsuka) license under Patent Rights Controlled by Otsuka covering a Non-VCM Improvement to make, have made, use, offer for sale, sell and
import products other than VCM Products. If a binding, definitive, written agreement between the Parties with respect to such rights has not been entered into by the date that is sixty (60) days after the date of Acucela’s initial notice,
Otsuka shall have no further obligations under this Section 9.5.2 with respect to such Non-VCM Improvement. As used herein, “Non-VCM Improvements” means any inventions made by or under authority of Otsuka in connection with
Development, Manufacture or Commercialization of Collaboration Compounds or Collaboration Products to the extent such inventions are not applicable to a VCM Product, or the manufacture, use or formulation thereof. 

9.5.3 Disclosure. Otsuka agrees to promptly disclose to Acucela any VCM Improvements or Non-VCM Improvements made by, or under the
authority of Otsuka, during the Term of the Agreement. 
 9.6 No Implied Licenses. No right or license under any Acucela
IP, Otsuka IP or other subject matter is granted or shall be deemed granted by implication, estoppel or otherwise. All such rights or licenses are granted only as expressly provided in this Agreement and the Related Agreements. Without limiting the
foregoing, nothing herein shall be deemed to grant to Otsuka a right or license to any active pharmaceutical ingredient that may be included in a Collaboration Product other than the Collaboration Compounds. Each Party agrees that it and its
Affiliates shall not use nor otherwise exploit the other Party’s Patent Rights or Know-How, except as licensed in this Agreement. 
 9.7 Exchange of Data and Know-How.
 9.7.1 By Acucela. Promptly
following the Effective Date, Acucela shall make available to Otsuka, at no cost or expense to Otsuka, all Acucela Know-How that is necessary, or useful, for Otsuka to Develop (but excluding Discovery Research), Manufacture and Commercialize
Collaboration Compounds and Collaboration Products within the Field in the Shared Territory or in the Otsuka Territory, including all Data for such Collaboration Compounds and Collaboration Products within the Field applicable to the Shared
Territory or the Otsuka Territory, that Acucela or its Affiliate Controls as of the Effective Date. 

  
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 9.7.2 By Either Party. During the Term, Acucela shall provide to Otsuka on an
ongoing basis additional Acucela Know-How generated pursuant to the Development Plan or the Research Plan that is necessary, or useful, to Develop (but excluding Discovery Research), Manufacture and Commercialize Collaboration Compounds and
Collaboration Products within the Field in the Shared Territory or in the Otsuka Territory, and Otsuka shall provide to Acucela on a ongoing basis any Otsuka Know-How generated pursuant to the Development Plan that is necessary, or useful, to
Develop, Manufacture and Commercialize Collaboration Compounds and Collaboration Products within the Field in the Shared Territory or in the Acucela Territory, in each case to the extent that such Know-How has not previously been provided to the
other Party hereunder. The Party providing such Know-How shall provide the same in electronic form to the extent the same exists in electronic form, and shall provide copies as reasonably requested or an opportunity for the other Party to inspect
(and copy) all other materials comprising such Know-How (including, for example, original patient report forms and other original source data, to the extent allowable under Laws). 

9.7.3 Sole Territory Data; Other Licensees or Sublicensees. Otsuka shall provide to Acucela on an ongoing basis all Otsuka
Know-How generated pursuant to its Development, Manufacture or Commercialization of Collaboration Compounds or Collaboration Products in the Otsuka Territory, and Acucela shall provide to Otsuka on an ongoing basis all Acucela Know-How generated
pursuant to its Development, Manufacture or Commercialization of Collaboration Compounds or Collaboration Products in the Acucela Territory, in each case to the extent (i) such Know-How is necessary, or useful, to Develop (but in the case of
Otsuka, excluding Discovery Research), Manufacture or Commercialize Collaboration Compounds or Collaboration Products within the Field in the Shared Territory or in the Receiving Party’s Sole Territory, and (ii) such Know-How has not
previously been provided to the other Party hereunder. Each Party (the “Providing Party”) shall use commercially reasonable efforts to require its other licensee(s), or Sublicensee(s), as applicable, of a Collaboration Compound or
Collaboration Product in its Sole Territory to provide the other Party (the “Receiving Party”) with access under this Section 9.7 to all Data generated by or on behalf of such licensee(s) or Sublicensee(s), as applicable, in
the Development, Manufacture or Commercialization of a Collaboration Compound or Collaboration Product to the extent that such Data is necessary or useful to Develop (excluding Discovery Research in the case of Otsuka), Manufacture or Commercialize
Collaboration Compounds or Collaboration Products in the Receiving Party’s Sole Territory. It is understood that a failure of the Providing Party to obtain such rights, despite having used such commercially reasonable efforts, shall not be
deemed a breach of this Section 9.7.3 by the Providing Party. However, the Providing Party agrees that it shall not provide its other licensee(s) or Sublicensee(s), as applicable, of a Collaboration Compound or Collaboration Product with access
to any Data generated by or on behalf of the Receiving Party in exercising its rights with respect to the Receiving Party’s Sole Territory except to the extent such other licensee(s) or Sublicensee(s), as applicable, agrees to provide the
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Sublicensee(s), as applicable. Except as expressly provided herein, including this Section 9.7.3 and Section 8.4, neither Party shall be obligated to provide to the other Party
(i) Know-How generated outside the Development Plan or Research Plan, including Know-How generated pursuant to a Party’s activities relating to Development or Commercialization exclusively for that Party’s Sole Territory, or
(ii) any of the providing Party’s Confidential Information that does not relate to a Collaboration Compound or Collaboration Product or its Manufacture or use within the Field in the Shared Territory, including competitive and marketing
strategies generally applicable to the Providing Party’s products. 
 9.7.4 Provision of Know-How to JDC. Upon
request by the JDC, each Party shall promptly provide the JDC with summaries in reasonable detail of all Know-How generated or obtained in the course of such Party’s performance of activities under the Development Plan and the Research Plan.

 9.7.5 Right to Use. Each Party shall have the right to use Know-How to be provided to such Party under this
Section 9.7 within the scope of its rights set forth in Sections 9.1, 9.2, 9.3 and 9.4. 
 ARTICLE 10 

INTELLECTUAL PROPERTY 
 10.1 Ownership.
 10.1.1 Know-How. Each Party shall assign to the
other Party a joint ownership interest in all Know-How pertaining to Collaboration Compounds and Collaboration Products or their Manufacture or use in the Field in the Shared Territory solely to the extent generated in the course of performing its
obligations or duties under the Development Plan, excluding any inventions and Patent Rights therein (which are addressed in Section 10.1.2 below), upon which all such Know-How (“Joint Know-How”) shall be jointly owned by
Otsuka and Acucela with each Party having an equal undivided interest in the whole. For clarity, it is understood that the foregoing does not apply to Regulatory Filings. All Know-How pertaining to Collaboration Compounds or Collaboration Products
or their Manufacture or use in the Field generated in the course of each Party’s Development or Manufacture of Collaboration Compounds or Collaboration Products specific for its Sole Territory, which, for the avoidance of doubt, shall exclude
the Joint Know-How, shall be solely owned by such Party. 
 10.1.2 Inventions; Patent Rights. 

(a) Title to all inventions, and all Patent Rights therein, made solely by Otsuka personnel in connection with this Agreement shall
be owned by Otsuka (“Otsuka Inventions”). Title to all inventions, and all Patent Rights therein, made solely by Acucela personnel in connection with this Agreement shall be owned by Acucela (“Acucela
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connection with this Agreement shall be jointly owned by Acucela and Otsuka with each Party having an equal undivided interest in the whole (“Joint Inventions”). For such
purposes, a Party’s personnel shall include personnel of such Party’s Affiliates and those of their respective subcontractors who are engaged in the Manufacture, Development or Commercialization of Collaboration Compounds or Collaboration
Products (to the extent such personnel are carrying out activities in connection with this Agreement). 
 10.1.3 Assignment
Agreement. Each Party shall enter or shall have entered into an appropriate agreement with each of its employees, consultants and Affiliates which is involved in Development or Manufacture of Collaboration Compounds or Collaboration Products in
the Field under this Agreement, pursuant to which such employee, consultant or Affiliate, as applicable, shall agree to (i) assign to the contracting Party ownership to inventions and Know-How resulting from the services to such Party and
(ii) not use (other than in connection with providing the services) or disclose (other than to such Party) such inventions and Know-How. Each Party shall use Commercially Reasonable Efforts to require its subcontractors involved in Development
or Manufacture of Collaboration Compounds or Collaboration Products in the Field under this Agreement to agree to the obligations set forth in clauses (i) and (ii) above. 

10.1.4 Joint Ownership. Except as expressly provided in this Agreement, it is understood that neither Party shall have any
obligation to obtain any approval of, nor pay a share of the proceeds to, the other Party to practice, enforce, license, assign or otherwise exploit Joint Inventions and Joint Know-How, and each Party hereby waives any right it may have under the
applicable Laws of any jurisdiction to require such approval or accounting. The Parties shall reasonably cooperate with each other and take any actions reasonably necessary to effect the purposes of this Section 10.1.4. 

10.2 Patent Filing, Prosecution, and Maintenance. 
 10.2.1 Sole Patent Rights. Subject to Section 16.8.2, each Party shall be responsible for the filing, prosecution and maintenance, in its own name, of its Sole Patent Rights in the Shared
Territory in accordance with the Patent Prosecution Plan. Each Party shall have the right, but not the obligation, at its expense, to file, prosecute and maintain its Sole Patent Rights in its or the other Party’s Sole Territory,
provided, however, that, at the request and expense of the other Party, each Party shall file, prosecute and maintain its Sole Patent Rights in such other Party’s Sole Territory. 

10.2.2 Joint Patent Rights. 
 (a) Shared Territory. The filing for, prosecution and maintenance of Joint Patent Rights in the Shared Territory, shall be made by mutual agreement of the Parties in accordance with the Patent
Prosecution Plan. Otsuka shall be responsible for the preparation, filing, prosecution and maintenance, in joint names of Otsuka and Acucela, of the Joint Patent Rights in the Shared Territory in accordance with the Patent Prosecution Plan.

  
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 (b) Sole Territory. Each Party shall be responsible, at its expense, for the
preparation, filing, prosecution and maintenance, in joint names of Otsuka and Acucela, of the Joint Patent Rights in such Party’s Sole Territory. 
 10.2.3 Prosecution Costs. * costs of the filing for, prosecution and maintenance of Sole Patent Rights or Joint Patent Rights under Sections 10.2.1 and 10.2.2 above, in each case incurred
after the Effective Date, shall be treated as follows: 
 (a) Shared Territory. * costs of the filing for, prosecution
and maintenance of Sole Patent Rights or Joint Patent Rights under Sections 10.2.1 and 10.2.2 above in the Shared Territory, in each case incurred after the Effective Date, shall be treated as Patent Expenses. Prior to the First Commercial Sale
of a Shared Product in the Shared Territory, Patent Expenses shall be treated as Development Costs and following the First Commercial Sale of a Collaboration Product in the Shared Territory, Patent Expenses shall be equally shared between the
Parties (and shall be treated as an Allowable Expense and deducted from Net Sales before Net Profit (Loss) is calculated, if applicable). 
 (b) Sole Territory. Each Party shall be responsible for * of all such patent costs incurred by such Party in its Sole Territory. 

10.2.4 Third-Party Patent Rights. Except as otherwise provided in Section 12.2, neither Party makes any warranty with respect
to the validity, perfection, or dominance of any Patent Right or other proprietary right or with respect to the absence of rights in Third Parties which may be infringed by the use, manufacture, sale, export or import of any Collaboration Compound
or Collaboration Product. Each Party agrees to promptly bring to the attention of the other Party any Patent Right it discovers, or has discovered, and which relates to the subject matter of this Agreement. 

10.2.5 Right to Consult. During the Term, each Party shall copy the other Party, or have the other Party copied, on all
substantive documents for its Sole Patent Rights and the Joint Patent Rights for which it controls prosecution as set forth in Section 10.2.2, which are received from or to be filed in any patent office in the Territories, promptly following
receipt from the patent office and within a reasonable time prior to filing with the patent office, as applicable, including copies of each patent application, office action, correspondence with patent officials, response to office action,
declarations, information disclosure statements, requests for terminal disclaimer, requests for patent term extension and request for reexamination. Consistent with the foregoing, each Party shall have the right to comment on the prosecution of the
other Party’s Sole Patent Rights and Joint Patent Rights for which it controls prosecution as set forth in Section 10.2.2 and provide such comments to such other Party’s patent counsel, and such other Party shall consider all such
comments in good faith. If a Party fails to provide its comments with respect to the prosecution by the other Party of such patent application or patent reasonably in advance of the deadline for filing or otherwise responding to the relevant matter
in the relevant patent office, such other Party shall be free to act without consideration of such Party’s comments. 

  

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 10.2.6 Abandonment of Prosecution. Each Party will notify the other Party in the
event it desires to abandon its efforts to file, prosecute, maintain or conduct any interferences, re-examinations, reissues and oppositions with respect to its Sole Patent Rights under this Section 10.2 or Section 16.8.2 or Joint Patent
Rights for which it is responsible under Section 10.2.2. Notification will be given within a reasonable period (i.e., with sufficient time for such other Party to take whatever action may be necessary) prior to the date on which such Sole
Patent Rights or Joint Patent Rights will lapse, go abandoned (other than to file a continuation application for the same subject matter) or otherwise diminish. Such non-abandoning Party will then have the right, exercisable upon written
notification to such abandoning Party, to assume full responsibility, at its discretion and its sole cost and expense, to file, prosecute, maintain or conduct any interferences, re-examinations, reissues and oppositions in such country or countries.
Should the non-abandoning Party exercise such right, the abandoning Party shall execute such documents and perform such acts as may be reasonably necessary for the non-abandoning Party to prepare, file, prosecute or maintain such Sole Patent Rights
or Joint Patent Rights. Thereafter, the non-abandoning Party shall solely own such Sole Patent Rights or Joint Patent Rights and the abandoning Party shall promptly assign its entire interest in such Sole Patent Rights or Joint Patent Rights. The
abandoning Party shall have the right to practice and otherwise exploit the inventions claimed in such Sole Patent Rights or Joint Patent Rights to the extent provided by the applicable license rights granted under Article 9. 

10.2.7 Scope of Activities. For the purposes of this Section 10.2, “prosecution and maintenance” shall mean, with
respect to a patent, the preparing, filing, prosecuting and maintenance of such patent, as well as re-examinations, reissues and requests for patent term extensions and the like with respect to such patent, together with the conduct of
interferences, the defense of oppositions and other similar proceedings with respect to a patent. Also, as used in this Section 10.2, to “abandon” particular Patent Rights shall include deciding not to defend against an opposition,
not to defend an interference or similar proceeding, not to pursue an appeal of an adverse decision or not to pursue particular claims, in each case with respect to such Patent Rights in the United States Patent & Trademark Office or a
corresponding patent examining authority in another country. 
 10.3 Infringement Claims Against Otsuka or Acucela

 10.3.1 Notice. Each Party shall give the other a prompt written notice of any claim or threatened claim by a Third
Party for infringement of such Third Party’s patents by a Collaboration Compound or Collaboration Product, or its use, Development, Manufacture or Commercialization, in the Field in the Territory (a “Patent Infringement
Claim”). Unless otherwise agreed by the Parties, (i) in the Shared Territory, Otsuka shall have the first right, but not the obligation, to defend such Patent Infringement Claim, and if Otsuka declines or fails to assume such role
within fifteen (15) Business Days after a request by Acucela to do so, Acucela shall be entitled to assume such role, (ii) in the Otsuka Territory, Otsuka shall have the first right, but not the obligation, to assume such role, and if
Otsuka declines or fails to assume such role within fifteen (15) Business Days after a request by Acucela to do so, Acucela shall be entitled to assume such role, and (iii) in the Acucela Territory, Acucela shall have the first right, but
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assume such role, and if Acucela declines or fails to assume such role within fifteen (15) Business Days after a request by Otsuka to do so, Otsuka shall be entitled to assume such role. The
Party that defends the Patent Infringement Claim shall have a right to choose its counsel in its sole discretion. 
 10.3.2
Cooperation. Each Party shall, and each shall cause its Affiliates to, cooperate fully with the other Party in its efforts to defend against the Patent Infringement Claim and shall agree to be a party in any suit, if requested. Any settlement
of such Patent Infringement Claim that would admit liability on the part of a non-defending Party or any of its Affiliates shall be subject to such non-defending Party’s prior written approval, such approval not to be unreasonably withheld or
delayed. 
 10.4 Third Party Infringement. 
 10.4.1 Notice of Infringement. Each Party shall promptly report in writing to the other Party during the Term any infringement of any of the Sole Patent Rights or Joint Patent Rights in the Field
in the Territory by use or exploitation by Third Parties of Acucela Core Compounds or any product competitive with an Acucela Core Compound (an “Product Infringement Claim”) of which such Party becomes aware, and shall provide the
other Party with all available evidence supporting such infringement. 
 10.4.2 Initial Right to Enforce. Subject to
Section 10.4.3 below, (i) Otsuka shall have in its sole discretion the first right, but not the obligation, to initiate a suit or take other appropriate action that it believes is reasonably required to protect (i.e., prevent or abate
actual or threatened infringement of) or otherwise enforce the Acucela Sole Patent Rights or the Joint Patent Rights in the Shared Territory and in the Otsuka Territory and its Sole Patent Rights in the Territory; and (ii) Acucela shall have in
its sole discretion the first right, but not the obligation, to initiate a suit or take other appropriate action that it believes is reasonably required to protect (i.e., prevent or abate actual or threatened infringement of) or otherwise enforce
the Joint Patent Rights in the Acucela Territory and its Sole Patent Rights in the Acucela Territory. 
 10.4.3 Step-In
Right. If Otsuka or Acucela, as the case may be, does not initiate a suit or take other appropriate action that it has the initial right to initiate or take in a country in the Territory pursuant to Section 10.4.2 within ninety
(90) days following receipt of notice of an Infringement Claim pursuant to Section 10.4.1, then the other Party shall have the right to initiate a suit or take other appropriate action in such country that it believes is reasonably
required to protect such Joint Patent Rights or Sole Patent Rights in such country. The non-initiating Party shall execute such legal papers and cooperate in the prosecution of such suit as may be reasonably requested by the initiating Party.

 10.4.4 Conduct of Certain Actions. At the request of the Party bringing an infringement action under this
Section 10.4, the other Party agrees to be joined as a party to the suit if necessary for the initiating Party to bring or maintain an infringement action hereunder and to provide reasonable assistance in any such action. Neither Party may
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brought under this Section 10.4 in a manner that materially adversely affects the other Party’s interest in the Joint Patent Rights or Sole Patent Rights, without the written consent of
such other Party, which consent shall not be unreasonably withheld or delayed. Each Party shall always have the right to be represented by counsel of its own selection in any suit or other action instituted by the other Party pursuant to this
Section 10.4 for infringement in the Field and expenses related thereto shall be allocated between the Parties in accordance with Section 10.6. 
 10.5 Claims for Non-Infringement or Invalidity 
 10.5.1 If a Third Party
brings an action for declaratory judgment of non-infringement or invalidity of Joint Patent Rights or Sole Patent Rights (each, an “Alleged Non-Infringement”), such Party shall promptly notify the other Party of such activities.
Except as otherwise agreed: (i) Otsuka shall have the first right, but not the obligation, to control any action or proceeding under such Joint Patent Rights in respect to any Alleged Non-Infringement in the Shared Territory, (ii) Otsuka
shall have the first right, but not the obligation, to control any action or proceeding under its Sole Patent Rights in respect to an Alleged Non-Infringement occurring in the Territory and (iii) Acucela shall have the first right, but not the
obligation. to control any action or proceeding under its Sole Patent Rights in respect to any Alleged Non-Infringement in the Territory. 
 10.5.2 If Otsuka or Acucela, as the case may be, fails to file a response with respect to an Alleged Non-Infringement occurring in the Territory within twenty (20) days following service of the
complaint or otherwise agree in writing to do so within the applicable time to respond by court rule or regulation, the other Party shall have the right to bring and control any such action or proceeding with respect to the Alleged Non-Infringement.

 10.5.3 The Parties shall reasonably cooperate with each other in all actions or proceedings described in this
Section 10.5, to the extent pertaining to an Alleged Infringement. The non-controlling Party agrees to be joined as a party plaintiff if necessary to prosecute the action or proceeding and shall provide all reasonable cooperation (including any
necessary use of its name) required to prosecute such litigation. The non-controlling Party will be entitled to be represented by counsel of its own choice and expenses related thereto shall be allocated between the Parties as set forth in
Section 10.6. 
 10.6 Costs; Recoveries 
 10.6.1 Shared Territory. * costs that are incurred by a Party under Sections 10.3, 10.4 and 10.5 with respect to the Shared Territory prior to Regulatory Approval to market Collaboration Product in
the Shared Territory shall be borne in the same manner as if such costs were Development Costs, and such costs which are incurred following Regulatory Approval to market Collaboration Product in the Shared Territory shall be equally shared between
the Parties (and thus shall be an element of Allowable Expenses, if applicable). The amount of any recovery from such Third Party (net of such enforcement costs) shall be equally shared between the Parties (by being deemed to be Net Sales and shared
between the Parties as provided in Section 6.5.1, if applicable) 

  

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 10.6.2 Sole Territory. * costs that are incurred by a Party under Sections 10.3,
10.4 and 10.5 with respect to its or the other Party’s Sole Territory shall be borne solely by the Party defending a claim or initiating an action under such Sections. Any amounts recovered as a result of an action under such Sections shall be
use first to reimburse the expenses incurred by the Parties in connection with such action. Any remaining recovery with respect to the Sole Territory shall be allocated * to the Party whose Territory is at issue and * to the other Party. 

10.7 Patent Marking. The Parties shall mark, and require their contractors and permitted Licensees to mark, Collaboration Products
sold or distributed pursuant to this Agreement in accordance with the applicable patent statutes or regulations in the country or countries of Manufacture or sale thereof, to the extent required by Law. 

ARTICLE 11 

TRADEMARKS AND COPYRIGHTS 
 11.1 Collaboration Product Marks. 
 11.1.1 Shared Territory. The JCC
shall select the Collaboration Product Mark to Commercialize Collaboration Product throughout the Shared Territory with a view to establishing one single brand name for Collaboration Product in the entire Shared Territory. The Parties shall use such
selected Collaboration Product Marks as the common brand name under which a Collaboration Product will be marketed in the Field in the Shared Territory in order to maximize brand equity and the corresponding return on Development and marketing
expenditures, unless on a country-by-country basis the JCC otherwise reasonably determines that use of such Collaboration Product Marks in a particular country in the Shared Territory would not be permitted by Law or would not be beneficial from a
commercial perspective. The JCC shall have the final decision-making authority regarding the selection of alternative Collaboration Product Marks for use in any country in the Shared Territory. 

11.1.2 Sole Territory. In its Sole Territory, each Party and its Affiliates may use any trademark(s) they choose, including the
Collaboration Product Mark selected by the JCC, for use with Collaboration Product in the Shared Territory, provided, however, that each Party shall use Commercially Reasonable Efforts to use such selected Collaboration Product
Mark in its Sole Territory, unless on a country-by-country basis such Party otherwise reasonably determines that use of such Collaboration Product Mark in a particular country in the Territories would not be permitted by Law or would not be
beneficial from a commercial perspective. 
 11.1.3 Ownership. All right, title and interest in Collaboration Product
Marks used in the Shared Territory and the Otsuka Territory, and the goodwill related thereto, shall be solely owned by Otsuka, and all right, title and interest in Collaboration Product Marks used in the Acucela

  

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Territory, and the goodwill related thereto, shall be solely owned by Acucela, except as may otherwise be expressly provided herein or required by Law. The Parties agree that they will not use
marks that are confusingly similar to the Collaboration Product Marks. 
 11.1.4 Protection and Maintenance. Otsuka shall
file, prosecute, register and maintain the Collaboration Product Marks in the Otsuka Territory at its own expense, Acucela shall file, prosecute, register and maintain the Collaboration Product Marks in the Acucela Territory at its own expense, and
Otsuka shall file, prosecute, register and maintain the Collaboration Product Marks in the Shared Territory with the out-of-pocket expenses shared equally by the Parties (which be treated as Trademark Expenses, if applicable). 

11.2 Display; Approval; Quality Control. All product labeling and promotional materials relating to a Collaboration Product in the
Field in the Shared Territory shall display the appropriate Collaboration Product Marks in a form and style and with a placement determined by the JCC, subject to complying with all Laws and regulations and obtaining all necessary Regulatory
Approvals. All use of Collaboration Product Marks shall be consistent with the quality control standards and reasonable trademark usage guidelines as the JCC may establish. 
 11.3 Enforcement. Each Party shall promptly notify the other Party of any known, threatened or suspected infringement, imitation or unauthorized use of or unfair competition relating to
Collaboration Product Marks in any country in the Territory. Otsuka shall defend, and shall have the sole discretion whether to enforce the Collaboration Product Marks in the Otsuka Territory at its own expense, Acucela shall defend, and shall have
the sole discretion whether to enforce the Collaboration Product Marks in the Acucela Territory at its own expense, and Otsuka shall have the first right, but not the obligation, to defend and enforce the Collaboration Product Marks in the Shared
Territory (and Acucela shall have the right to defend and enforce in the Shared Territory in the event that Otsuka does not assert its right) with the expenses and proceeds shared equally by the Parties (which shall be treated as Trademark Expenses,
if applicable). Each of the Parties shall reasonably cooperate in any action taken by the other Party to enforce or defend its rights in Collaboration Product Marks pursuant to this Section 11.3. 

11.4 Otsuka Marks and Acucela Marks. 
 11.4.1 Scope of Use. The Otsuka trade names and logos shall be displayed on all product packaging, labeling and other promotional materials relating to Collaboration Products in the Field in the
Shared Territory. In any case, the JCC shall have final decision authority over such placement of the Parties’ trade names, trademarks and logos under this Section 11.4.1. All right, title, and interest to a Party’s trade name,
trademark and logo shall be owned by such Party and use thereof shall be consistent with the quality control standards and reasonable trademark usage practices as such Party applies to its own marks. Neither Party shall permit any other person or
entity to use the other Party’s trade name, trademark or logo, without the other Party’s prior written consent. 

  
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 11.4.2 Limitations. All goodwill arising out of the use of a Party’s trade
name, trademark and logo will inure to the sole benefit of the Party that owns such marks. 
 11.5 Copyrights. Otsuka
shall have exclusive ownership in and to the copyrights in all product labeling or promotional materials specifically pertaining to Collaboration Products in the Field (the “Copyrighted Works”), and Acucela agrees to execute
documentation necessary to affect this provision. To the extent such materials include or incorporate original works of authorship created or Controlled by Acucela or its Affiliate prior to the Effective Date or otherwise not in connection with a
Collaboration Product, Acucela grants to Otsuka a license to use, reproduce, modify and distribute the pre-existing works only in connection with Collaboration Products in the Field and in accordance with the terms of this Agreement, including the
right to sublicense to the extent Acucela is authorized to grant Third Parties rights to such Collaboration Product. Otsuka shall have the sole right, but not the obligation, to enforce and defend, including but not limited to registering with the
United States Copyright Office or other Regulatory Authorities in the Territories, their joint interest in the Copyrighted Works. Otsuka grants Acucela a license to use, reproduce and distribute in the Shared Territory the Copyrighted Works and any
original works of authorship created or Controlled by Otsuka or its Affiliate incorporated or included in the Copyrighted Works to the extent permitted by the Co-Promotion Agreement and only in the event Acucela exercises its right to Co-Promote
under Section 4.1.2(c). 
 ARTICLE 12 
 REPRESENTATIONS, WARRANTIES AND COVENANTS 
 12.1 Mutual Representations,
Warranties and Covenants. Each Party hereby represents, warrants and covenants to the other Party as follows: 
 12.1.1
Due Organization. 
 (a) (in the case of such Party being Acucela) Acucela is a corporation duly organized, validly
existing and in good standing under the Laws of the State of Washington , and is qualified to do business and is in good standing as a foreign corporation in each jurisdiction in which the conduct of its business or the ownership of its properties
requires such qualification and failure to have such would prevent it from performing its obligations under this Agreement. Such Party is not controlled by any other entity (as the term “control” is defined in Section 1.4); or

 (b) (in the case of such Party being Otsuka) Otsuka is a corporation duly organized and validly existing under the Laws of
Japan and is qualified to do business in each jurisdiction in which the conduct of its business or the ownership of its properties requires such qualification and failure to have such would prevent it from performing its obligations under this
Agreement. 
 12.1.2 Due Execution. The execution, delivery and performance by such Party of this Agreement have been
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(i) require any consent or approval of its stockholders, (ii) violate any provision of any Law, rule, regulation, order, writ, judgment, injunction, decree, determination or award
presently in effect having applicability to it or any provision of its charter or bylaws or (iii) conflict with or constitute a default under any other agreement to which such Party is a party. 

12.1.3 Binding Agreement. This Agreement is a legal, valid and binding obligation of such Party, enforceable against it in
accordance with the terms and conditions hereof (except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar Laws affecting the enforcement of creditors’ rights generally). 

12.1.4 Authorizations. Such Party has obtained all authorizations, consents and approvals, governmental or otherwise, necessary
for such Party to grant the rights and licenses granted by such Party under this Agreement, and to otherwise perform such Party’s obligations under this Agreement. 
 12.1.5 Conflicting Agreements. Such Party has not previously granted and, during the Term will not grant, any rights in conflict with or that would otherwise interfere with the rights and licenses
granted herein. As of the Effective Date, there are no existing agreements, options, commitments or rights with, of or to any person or entity to acquire or obtain any rights with respect to such Party’s intellectual property which are in
conflict with the rights and licenses granted herein. 
 12.1.6 Debarment. Such Party has not been debarred and is not
subject to debarment and neither it nor any of its Affiliates have used or will use in any capacity, in connection with the Development, Manufacturing or Commercialization of Collaboration Products, any person or entity who has been debarred
pursuant to Section 306 of the United States Federal Food, Drug and Cosmetic Act, or who is subject of a conviction described in such Section 306. Further, such Party agrees to inform the other Party in writing immediately if it or any
person or entity who is performing services hereunder is debarred or is the subject of a conviction described in such Section 306, or if any action, suit, claim, investigation or legal administrative proceeding is pending or, to such
Party’s knowledge, is threatened, relating to the debarment of such Party, its Affiliates or any person or entity used in any capacity by such Party or its Affiliates in connection with the Development, Manufacturing or Commercialization of
Collaboration Products. 
 12.1.7 False Statements. Neither such Party, nor any officer, employee or agent of such Party,
has made or will make an untrue statement of a material fact to any Regulatory Authority with respect to Collaboration Products (whether in any submission to such Regulatory Authority or otherwise), or has knowingly failed or will fail to disclose a
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 12.2 Acucela Additional Representations, Warranties and Covenants. Acucela
represents and warrants to Otsuka that as of the Effective Date: 
 (a) Acucela solely owns or Controls all right, title and
interest in and to Acucela IP, and Acucela has the right to grant to Otsuka all of the licenses and other rights with respect to Acucela IP granted to Otsuka under this Agreement. Neither Acucela nor its Affiliate has and will enter into any
agreement or grant any Third Party any rights with respect to the Acucela IP that are inconsistent with the rights granted to Otsuka under this Agreement or which would limit or encumber Acucela’s ability to perform all of the obligations
undertaken by Acucela hereunder or limit or encumber Otsuka’s ability to exercise the rights and licenses granted to Otsuka under this Agreement; 
 (b) to the knowledge of Acucela or its Affiliate, there are no Patent Rights not within the Acucela IP that cover the Collaboration Compound or Collaboration Product, or claim composition of matter or use
in the Field of the Collaboration Compound or Collaboration Product. To the knowledge of Acucela or its Affiliate, the research, development, manufacture, sale, offer for sale, import or export of Collaboration Compounds or Collaboration Products as
they exist as of the Effective Date does not infringe or misappropriate a claim of the Patent Rights or any other intellectual property rights of any Third Party. To Acucela’s or its Affiliate’s knowledge, none of the Acucela Patent Rights
are invalid or unenforceable, all fees required to be paid to applicable governmental patent offices in the Territory as of the Effective Date in order to prosecute or maintain such Acucela Patent Rights have been paid on or before the due date for
payment, and all such Acucela Patent Rights have been filed and maintained in a manner consistent with standard practice in the Territory. There are no existing actions, suits or proceedings against Acucela or its Affiliate, other than the U.S.
Patent and Trademark Office’s review of pending applications for issuance as patents and Acucela or its Affiliate has not received any written claim or demand from a Third Party, that individually or together with any other, does or could have
a material adverse effect on the ability of Acucela to perform its obligations under this Agreement or challenges Acucela’s or its Affiliate’s rights with respect to the Acucela IP or the Collaboration Compound or the Collaboration Product
as they exist as of the Effective Date (including any invitation to license or other notice of Patent Rights relevant to the Acucela Core Compounds). For purposes of this Section 12.2, the term “knowledge” means with respect to a
particular fact or other matter the actual knowledge of the following individuals: Ian Scott, Ryo Kubota, David McGee and Ahmad Fawzi as of the Effective Date, or if any of such individuals could be expected to discover or otherwise become aware of
such fact or other matter after reasonable investigation in the ordinary course of such individual’s employment. 
 (c)
Exhibit A contains a full and complete list of the Acucela Patent Rights existing as of the Effective Date. 
 12.3
Compliance with Laws. Each Party shall conduct, and shall cause its Affiliates, licensees, Sublicensees, contractors and consultants to conduct, all of its activities contemplated under this Agreement in accordance with all applicable Laws of
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 12.4 Disclaimer. EXCEPT AS SET FORTH IN THIS ARTICLE 12, ACUCELA AND OTSUKA
EXPRESSLY DISCLAIM ANY OTHER WARRANTIES OR CONDITIONS, EXPRESS, IMPLIED, STATUTORY OR OTHERWISE, WITH RESPECT TO THE PATENT RIGHTS OR KNOW-HOW OR THE SUBJECT MATTER OF THIS AGREEMENT (INCLUDING WITH RESPECT TO COLLABORATION COMPOUNDS AND
COLLABORATION PRODUCTS AND ANY RESEARCH AND DEVELOPMENT ACTIVITIES RELATING THERETO), INCLUDING ANY IMPLIED WARRANTIES OF MERCHANTABILITY, NON-INFRINGEMENT OR FITNESS FOR A PARTICULAR PURPOSE. 

ARTICLE 13 

INDEMNIFICATION 
 13.1 Indemnification of Otsuka. Acucela shall indemnify and hold harmless each of Otsuka, its Affiliates and the directors, officers and employees of such entities and the successors and assigns of
any of the foregoing (the “Otsuka Indemnitees”) from and against any and all liabilities, damages, penalties, fines, costs and expenses (including reasonable attorneys’ fees and other expenses of litigation) (collectively,
“Liabilities”) incurred or suffered by any Otsuka Indemnitee as result of Third Party claims, actions, suits or proceedings (including claims, actions, suits or proceedings resulting from personal injury or death caused by
administration of a Collaboration Product to such Third Party or property or other damages caused by a Collaboration Product) (each, a “Third Party Claim”), arising from or occurring as a result of: (a) the Development,
Manufacture or Commercialization of any Collaboration Product conducted or managed by Acucela, its Affiliates or its licensees or Sublicensees in the Acucela Territory, (b) any negligence or willful misconduct of Acucela, its Affiliates or
their respective directors, officers, employees, contractors, consultants, agents, representatives or licensees in the exercise of any rights or performance of any obligations under this Agreement or (c) any breach by Acucela of any
representations, warranties or covenants set forth in this Agreement, except to the extent such Third Party Claims fall within the scope of Otsuka’s indemnification obligations set forth in Section 13.2. 

13.2 Indemnification of Acucela. Otsuka shall indemnify and hold harmless each of Acucela, its Affiliates and the directors,
officers and employees of such entities and the successors and assigns of any of the foregoing (the “Acucela Indemnitees”) from and against any and all Liabilities incurred by any Acucela Indemnitee as a result of any Third Party
Claims, arising from or occurring as a result of (a) the Development, Manufacture or Commercialization of any Collaboration Product conducted or managed by Otsuka, its Affiliates or its licensees or Sublicensees in the Otsuka Territory,
(b) any negligence or willful misconduct of Otsuka, its Affiliates or their respective directors, officers, employees, contractors, consultants, agents, representatives or licensees in the exercise of any rights or performance of any
obligations under this Agreement or (c) any breach by Otsuka of any representations, warranties or covenants set forth in this Agreement, except to the extent such Third Party Claims fall within the scope of Acucela’s indemnification
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 13.3 Procedure. A Party that intends to claim indemnification under this
Article 13 (the “Indemnitee”) shall promptly notify the other Party (the “Indemnitor”) in writing of any Third Party Claim in respect of which the Indemnitee intends to claim such indemnification, and the
Indemnitor shall have the right to control the defense and/or settlement thereof with counsel of its choice as long as such counsel is reasonably acceptable to the Indemnitee. The Indemnitee shall have the right to participate in such defense and/or
settlement at its own expense with counsel of its choice. The indemnity arrangement in this Section 13.3 shall not apply to amounts paid in settlement of any action with respect to a Third Party Claim if such settlement is effected without the
consent of the Indemnitor, which consent shall not be unreasonably withheld or delayed. The failure to deliver written notice to the Indemnitor within a reasonable time after the commencement of any action with respect to a Third Party Claim shall
relieve such Indemnitor of any Liabilities that result from any delay in providing such notice which materially prejudices the defense of such Third Party Claim under this Section 13.3, but the omission to so deliver written notice to the
Indemnitor shall not relieve the Indemnitor of any liability that it may have to any Indemnitee otherwise than under this Section 13.3. The Indemnitee under this Section 13.3 shall cooperate fully with the Indemnitor and its legal
representatives in the investigation of any action with respect to a Third Party Claim covered by this Article 13. Any settlement of Third Party Claim that would admit liability on the part of the Indemnitor or any of its Affiliates shall be
subject to such Indemnitor’s prior written approval, such approval not to be unreasonably withheld or delayed. 
 13.4
Intrinsic Defect. The foregoing notwithstanding, to the extent a Third Party Claim arises from any Intrinsic Defect, all Liabilities with respect to the Shared Territory that are incurred by the Parties as a result of such Third Party Claim
(“Liabilities for an Intrinsic Defect”) shall be equally shared between the Parties (and shall constitute a part of Allowable Expenses, if applicable). 
 ARTICLE 14 
 CONFIDENTIALITY 

14.1 Confidentiality; Exceptions. Except to the extent expressly authorized by this Agreement or otherwise agreed in writing, the
Parties agree that the receiving Party shall keep confidential and shall not publish or otherwise disclose or use for any purpose other than as provided for in this Agreement any information or other confidential and proprietary materials furnished
to it by the other Party pursuant to this Agreement (collectively, “Confidential Information”), except to the extent that it can be established by the receiving Party that such Confidential Information: 

14.1.1 was in the lawful knowledge and possession of the receiving Party prior to the time it was disclosed to, or learned by, the
receiving Party, or was otherwise developed independently by the receiving Party, as evidenced by written records kept in the ordinary course of business, or other documentary proof of actual use by the receiving Party; 

14.1.2 was generally available to the public or otherwise part of the public domain at the time of its disclosure to the receiving Party;

  
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 14.1.3 became generally available to the public or otherwise part of the public domain
after its disclosure and other than through any act or omission of the receiving Party in breach of this Agreement; or 
 14.1.4
was disclosed to the receiving Party, other than under an obligation of confidentiality, by a Third Party who had no obligation to the disclosing Party not to disclose such information to others. 

14.2 Authorized Disclosure. Except as otherwise expressly provided in this Agreement, each Party may use and disclose
Confidential Information of the other Party as follows: (a) under appropriate confidentiality provisions substantially equivalent to those in this Agreement, in connection with the performance of its obligations or exercise of rights granted or
reserved in this Agreement (including the right to grant licenses and sublicenses permitted hereunder), (b) to the extent such disclosure is reasonably necessary in filing or prosecuting patent, copyright and trademark applications or
registrations, complying with the terms of licenses from Third Parties, prosecuting or defending litigation, complying with applicable governmental regulations, obtaining Regulatory Approvals, conducting preclinical or clinical trials or marketing
Collaboration Products, or otherwise required by Law (including securities Laws), provided, however, that if a Party is required by Law to make any such disclosure of the other Party’s Confidential Information it will, except where
impracticable for necessary disclosures (for example, in the event of medical emergency), give reasonable advance notice to the other Party of such disclosure requirement and, except to the extent inappropriate in the case of patent applications,
use its reasonable efforts to secure confidential treatment of such Confidential Information required to be disclosed, (c) in communication with investors, consultants, advisors or others on a need to know basis, in each case under appropriate
confidentiality provisions substantially equivalent to those of this Agreement, or (d) to the extent mutually agreed to by the Parties in writing. 
 14.3 Termination of Prior Agreement. This Agreement supersedes the Mutual Confidential Disclosure Agreement between the Parties dated May 20, 2008, including all modifications thereto.
All information exchanged between the Parties under such agreement shall be deemed Confidential Information and shall be subject to the terms of this Article 14. 
 14.4 Disclosure of Term. Each Party agrees not to disclose to any Third Party the terms of this Agreement without the prior written consent of the other Party, except as permitted for
disclosures of Confidential Information pursuant to Section 14.2. 
 14.5 Publications. Except as required by
applicable Law, each Party agrees that it shall not publish or present the results of Development work or Post-Marketing Studies in the Shared Territory that are directed to any Collaboration Compound or Collaboration Product in the Field, including
pre-clinical studies or clinical trials carried out as part of the Development Plan under this Agreement, without the prior approval of the applicable Committee, as set forth in Section 2.2.1(p). 

  
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 14.6 Press Releases and Announcements. Upon the execution of this Agreement, the
Parties shall issue a joint press release announcing the execution of this Agreement in the form of Exhibit G. No other public statement or disclosure concerning the existence or terms of this Agreement shall be made, either directly or
indirectly, by either Party, without first obtaining the written approval of the other Party. Once any public statement or disclosure has been approved in accordance with this Section 14.6, then either Party may appropriately communicate
information contained in such permitted statement or disclosure. 
 ARTICLE 15 

TERM AND TERMINATION 
 15.1 Term. The term of this Agreement (the “Term”) shall begin on the Effective Date and shall continue on a country-by-country and Collaboration Product-by-Collaboration
Product basis until the expiration of the royalty term or Net Profit (Loss) sharing, as applicable, pursuant to Section 6.3.5 or Section 6.5.1 above, as applicable, for such Collaboration Product in such country, unless and until earlier
terminated as permitted under this Agreement. 
 15.2 Termination for Material Breach. In the event of a material
breach of this Agreement or a material breach of a Related Agreement, the non-breaching Party shall have the right to give written notice (the “Breach Notice”) to the breaching Party, specifying the breach in reasonable detail. The
breaching Party shall have ninety (90) days after the Breach Notice to cure any such breach. If, at the end of such ninety (90) day period, the breach remains uncured, then the non-breaching Party shall have the right to terminate this
Agreement, in its entirety upon written notice to the breaching Party. 
 15.3 Termination for Insolvency. Either
Party may terminate this Agreement in its entirety at any time during the Term by giving written notice to the other Party (i) if the other Party files in any court or agency pursuant to any statute or regulation of any state or country a
petition in bankruptcy or insolvency or for reorganization or for an arrangement or for the appointment of a receiver or trustee for the other Party or its assets, or (ii) if the other Party is served with an involuntary petition against it,
filed in any insolvency proceeding and such petition shall not be dismissed within ninety (90) days after the filing thereof, or (iii) if the other Party makes a general assignment for the benefit of creditors. 

15.4 Other Termination by Otsuka. In addition to its termination rights pursuant to Sections 3.5, 15.2 and 15.3, Otsuka may
terminate this Agreement in its entirety: 
 15.4.1 for any reason upon six (6) months prior written notice to Acucela;

  
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 15.4.2 upon fourteen (14) days prior written notice to Acucela, if Otsuka, in its
sole discretion, decides not to bear its share of the Phase II Costs in excess of forty million dollars ($40,000,000) pursuant to Section 6.4.1(d) and to terminate the Collaboration in its entirety; 

15.4.3 upon fourteen (14) days prior written notice to Acucela, if Otsuka, in its sole discretion, decides not to bear any further
Phase III Costs and to terminate the Collaboration in its entirety; 
 15.4.4 upon fourteen (14) days prior written notice
to Acucela, if Otsuka, in its sole discretion, decides to terminate the Collaboration hereunder in its entirety after considering the result of a Phase II Clinical Trial or a Phase III Clinical Trial for any Collaboration Product in the Field; or

 15.4.5 within sixty (60) days after Acucela has provided Otsuka with written notice of the fact that a Change of Control
has occurred in respect of Acucela. 
 15.5 Effects of Expiration or Termination 

15.5.1 Accrued Obligations. Subject to Section 15.5.4(e), expiration or termination of this Agreement for any reason shall
not release either Party from any obligation or liability which, at the time of such expiration or termination, has already accrued to the other Party or which is attributable to a period prior to such expiration or termination. 

15.5.2 Expiration. Upon the expiration (but not earlier termination) of this Agreement with respect to a given Collaboration
Product in a given country, the licenses granted to the Parties in Article 9 shall become perpetual, fully paid and non-exclusive with respect to such Collaboration Product in the Field in such country. 

15.5.3 Termination by Acucela under Section 15.2 or 15.3 or by Otsuka under Section 15.4.1, 15.4.2, 15.4.3 or 15.4.4. If
this Agreement is terminated by Acucela under Section 15.2 or Section 15.3 or by Otsuka pursuant to Section 15.4.1, 15.4.2, 15.4.3 or 15.4.4, then: 
 (a) Development Costs. 
 (i) Otsuka shall remain responsible for
Otsuka’s share under Section 6.4.1(a) of any Development Costs incurred with respect to the Shared Territory during and with respect to Development work actually performed in accordance with the Development Plan within the * period
(the “Notice Period”) following the date of the notice of termination (the “Notice Date”) (the “Wind-Down Development Costs). Promptly following the end of the Notice Period, Acucela shall provide to
Otsuka the Acucela Development Cost Report that reflects such Development conducted during the Notice Period. Such Acucela Development Cost Report shall accompany an appropriate invoice delivered to Otsuka for the Wind-Down Development Costs. Within
thirty (30) days of receiving such invoice, Otsuka shall pay Acucela the invoiced amount. 
 (b) Commercialization.
With respect to Collaboration Products being Commercialized by Otsuka at the time of such termination, Otsuka, its Affiliates and its 

  

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Sublicensees shall continue to sell such Collaboration Products in each country in the Shared Territory and the Otsuka Territory for which Regulatory Approval has been obtained, in accordance
with the terms and conditions of this Agreement, for a period up to * from the effective date of termination (the “Wind-down Period”), subject to its payment obligation of Royalty for Sole Territory and its payment obligation of
Royalty for Shared Territory or its obligation of Net Profits (Losses) sharing with Acucela pursuant to Section 6.5.1, as applicable, provided that Otsuka shall not be obligated to promote the sale of such Collaboration Products in the Shared
Territory and the Otsuka Territory during the Wind-down Period. Notwithstanding any other provision of this Agreement, during the period from and after the notice of termination, Otsuka’s and its Affiliates’ and permitted
Sublicensees’ rights with respect to the Collaboration Products in the Otsuka Territory shall be non-exclusive. 
 (c)
Transition Assistance. Otsuka shall cooperate with reasonable requests by Acucela to achieve, as promptly as reasonably practicable during the period from notice of termination until the end of the Wind-down Period, a smooth and orderly
transition to Acucela of the Development and Commercialization of the Collaboration Compounds and Collaboration Products in the Territory, including making its personnel and other resources reasonably available to Acucela during the Wind-Down
Period. If Otsuka has entered into contracts with contractors (including contract manufacturers) or vendors that are necessary or useful for Acucela to take over responsibility for with respect to the Collaboration Compounds and Collaboration
Products in the Territory, then Otsuka shall, to the extent reasonably possible and as requested in writing by Acucela, assign all of the relevant Third Party agreements to Acucela, or otherwise cooperate to make such arrangements available to
Acucela or its designee for purposes of Development and Commercialization of the Collaboration Compounds and Collaboration Products. 
 (d) Assignment of Regulatory Filings and Regulatory Approvals. Otsuka shall assign and transfer, or cause to be assigned and transferred, to Acucela all Regulatory Filings and Regulatory Approvals
solely for the Collaboration Products made or owned by Otsuka and its Affiliates, and shall take such actions and execute such other instruments, assignments and documents as may be necessary to effect the transfer of rights under such Regulatory
Filings and Regulatory Approvals to Acucela (or, if not so assignable or not solely related to Collaboration Products, Otsuka shall take all reasonable actions to make available to Acucela the benefits of such Regulatory Filings and Regulatory
Approvals). Otsuka shall require each of its Sublicensees and any other Third Party that holds Regulatory Filing or Regulatory Approvals under authority from Otsuka hereunder solely related to Collaboration Products to transfer any such Regulatory
Filings and Regulatory Approvals to Acucela if this Agreement terminates pursuant to this Section 15.5.3 (or, if not so assignable or not solely related to Collaboration Products, Otsuka shall take all reasonable actions to make available to
Acucela the benefits of such Regulatory Filings and Regulatory Approvals). In each case, unless otherwise prohibited by any applicable Laws, the foregoing assignment (or availability) shall be made within thirty (30) days after the effective
date of termination of this Agreement pursuant to this Section 15.5.3. 
 (e) Data and Know-How Disclosure. Within
thirty (30) days after the Notice Date, Otsuka shall disclose to Acucela (to the extent Otsuka has not already disclosed to 

  

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Acucela) all Know-How in Otsuka’s or its Affiliates’ possession and Control pertaining to the Collaboration Compounds or Collaboration Products or their Manufacture or Use generated
under this Agreement. Such disclosure shall be in electronic form to the extent available and, if reasonably necessary in connection with Acucela’s further Development, Manufacture or Commercialization of the Collaboration Compounds and
Collaboration Products, shall include original hardcopies or duplicate copies thereof to the extent available, as reasonably required. Acucela shall be free to use this Know-How in accordance with the license under Section 15.5.3(f) below.

 (f) License. Otsuka shall grant, and hereby grants, to Acucela, effective upon the effective date of termination
pursuant to this Section 15.5.3, a perpetual, fully paid-up, non-exclusive license, with the right to grant and authorize sublicenses, under Otsuka IP (provided that Acucela’s license rights under this Section 15.5.3(f) shall be
exclusive with respect to any Know-How generated by Acucela and jointly owned by Otsuka solely by virtue of Section 10.1) and all copyrighted promotional materials Controlled by Otsuka, in each case pertaining to the Collaboration Compounds or
Collaboration Products or their Manufacture or use, to Develop, Commercialize and Manufacture the Collaboration Products in the Field in the Territory. Notwithstanding the foregoing, Acucela’s right to sublicense under this
Section 15.5.3(f) with respect to Otsuka IP non-exclusively licensed under this Section 15.5.3(f) shall be subject to Section 9.3.3 and the following conditions must also be met: (i) any sublicensee is, with respect to any
territory at issue, concurrently receiving from Acucela a license or sublicense under one or more Patent Rights Controlled by Acucela to Develop, Commercialize and Manufacture the Collaboration Compounds or Collaboration Products in the Field in
such territory, and (ii) such license to Patent Rights Controlled by Acucela is granted under the same termination and expiration terms as the sublicense to the Otsuka IP. 

(g) Trademarks. Otsuka shall promptly assign to Acucela (with no royalty obligations) all rights of Otsuka in and to the
Collaboration Product Marks, including applicable registrations and associated goodwill. 
 (h) Sublicenses. Each
Sublicense Agreement granted by Otsuka or its Affiliates hereunder shall, at the request of Acucela and in its discretion, be assigned to Acucela to the extent permitted. In the event that such assignment is not requested by Acucela or is not
permitted or not approved by such Sublicensee, then unless Acucela and such Sublicensee enter into a direct relationship, the rights of such Sublicensee with respect to Collaboration Products shall terminate upon termination of Otsuka’s
underlying license. 
 15.5.4 Termination by Otsuka under Section 3.5, 15.2, 15.3 or 15.4.5. If this Agreement is
terminated by Otsuka under Section 3.5, 15.2, 15.3 or 15.4.5, and prior to the effective date of termination or within sixty (60) days thereafter, Otsuka provides written notice to Acucela that it desires to continue Developing,
Manufacturing and Commercializing (as applicable) Collaboration Compounds and Collaboration Products in the Shared Territory and the Otsuka Territory (a “Section 15.5.4 Notice”), then all of the following paragraphs shall
apply. If this Agreement is terminated by Otsuka under Section 3.5, 15.2, 15.3 or 15.4.5, and Otsuka does not timely send a Section 15.5.4 Notice, then only the first sentence of paragraph (e) below shall apply: 

(a) License. Otsuka shall have the right to continue Develop, Manufacture and Commercialize any Collaboration Compounds and
Collaboration Products in the Field within the scope of the licenses granted under Sections 9.1, 9.3 and 9.4 (but each co-exclusive license shall convert to an exclusive license to Otsuka, subject to its payment obligations pursuant to Sections 6.2
and 6.3, provided that Otsuka shall not be required to follow the then Development Plan or Commercialization Plan; provided further that, in case of termination pursuant to Section 3.5, 15.2 or 15.3 only, the
Milestone payments and the Royalty Payment pursuant to Sections 6.2 and 6.3 after such termination shall *; 

  

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 (b) Data and Know-How Disclosure. Within thirty (30) days after the date of
the termination notice, Acucela shall disclose to Otsuka (to the extent Acucela has not already disclosed to Otsuka) all Know-How in Acucela’s or its Affiliates’ possession or Control required to be disclosed under Section 9.7.2. Such
disclosure shall be in electronic form to the extent available and, if reasonably necessary in connection with Otsuka’s further Development (but excluding Discovery Research), Manufacture or Commercialization of the Collaboration Compounds or
Collaboration Products, shall include original hardcopies or duplicate copies thereof to the extent available, as reasonably required. Otsuka shall have the right to use this Know-How in accordance with Otsuka’s license rights as set forth in
Section 15.5.4(a); 
 (c) Assignment of Regulatory Filings and Regulatory Approvals. Acucela shall assign and
transfer, or cause to be assigned and transferred, to Otsuka all Regulatory Filings and Regulatory Approvals for each Collaboration Product made or owned by Acucela and its Affiliates in the Shared Territory, and shall take such actions and execute
such other instruments, assignments and documents as may be necessary to effect the transfer of rights under such Regulatory Filings and Regulatory Approvals to Otsuka (or, if not so assignable or not solely related to Collaboration Products,
Acucela shall take all reasonable actions to make available to Otsuka the benefits of such Regulatory Filings and Regulatory Approvals). Acucela shall require each of its Sublicensees and any other Third Party that holds Regulatory Filing or
Regulatory Approvals under authority from Acucela hereunder related to a Collaboration Product in the Shared Territory to transfer any such Regulatory Filings and Regulatory Approvals to Otsuka if this Agreement terminates pursuant to this
Section 15.5.4 (or, if not so assignable or not solely related to Collaboration Products, Acucela shall take all reasonable actions to make available to Otsuka the benefits of such Regulatory Filings and Regulatory Approvals). In each case,
unless otherwise prohibited by any applicable Laws, the foregoing assignment (or availability) shall be made within thirty (30) days after the effective date of termination of this Agreement pursuant to this Section 15.5.4, and for
clarity, Acucela’s rights under Section 8.7 with respect to all Regulatory Filings and Regulatory Approvals for Collaboration Products in the Shared Territory shall continue with respect to Acucela’s Sole Territory; 

(d) Assignment of Third Party Agreements. If Acucela has entered into contracts with contractors (including contract
manufacturers) or vendors that are necessary or useful for Otsuka to take over responsibility for with respect to the Collaboration Compounds or Collaboration Products in the Shared Territory, then Acucela shall, to the extent permitted by such

  
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Third Party Agreements and requested in writing by Otsuka, assign all of the relevant Third Party agreements to Otsuka, or otherwise cooperate to make such arrangements available to Otsuka or its
designee for purposes of the Collaboration Compounds and Collaboration Products. 
 (e) Development Costs. Otsuka shall
remain responsible for its obligation to pay the Development Costs, if any, which have already accrued but not become due at the time of such termination. For clarity, Acucela shall not be required pursuant to Section 6.4.1 to share any portion
of the Development Costs incurred by Otsuka after the effective time of termination. 
 (f) Survival of Additional
Sections. The other following Sections shall survive, in addition to others specified in this Agreement to survive: 2.1.2, 3.3, 4.1.1(c), 4.2, 4.3, 4.4, 4.5, 5.3 (except with respect to the third sentence) 5.4, 6.2 (subject to
Section 15.5.4(a)), 6.3 (subject to Section 15.5.4(a)), 6.4.1(b), 6.4.2, 6.4.3, 6.5.2, 6.5.3, 7.2, 7.3 (except the first and last sentences), 8.1.2, 8.1.3, 8.5, 8.6 (except the reference to “JDC” shall be replaced with
“Otsuka”), 8.7, 9.2.1, 9.2.4, 9.3.1, 9.3.2 (the first sentence only), 9.3.3, 9.4, 9.6, 9.7.3, 9.7.5, 10.2-10.7, 11.1.2, 11.1.3, 11.1.4, 11.3, 11.5, 12.1.6, 12.1.7, 12.3 and 14.5. 

15.5.5 Royalty Payment For Otsuka’s Previous Contribution. If this Agreement is terminated by either Party for whatever
reason (other than termination by Acucela pursuant to Section 15.2) and thereafter Acucela continues Development and Commercialization of Collaboration Compound and Collaboration Product in the Field alone, or together with or through any Third
Party, then Otsuka shall, by virtue of its financial and other contributions made prior to such termination, be entitled to receive a royalty of * (in case of termination prior to the initiation of the initial Phase III Clinical Trial in the United
States) or * (in case of termination after the initiation of the initial Phase III Clinical Trial in the United States), as the case may be, in respect of Net Sales of Collaboration Products sold by Acucela, its Affiliates or licensees or
Sublicensees in the Territory, provided that such royalties shall be capped at an amount equal to the total amount of the Development Costs and the Research Costs already funded or paid to Acucela by Otsuka prior to such termination, plus interest
thereon, which amount shall be calculated as if (a) interest accrued on such Development Costs and Research Costs as from the date of payment to Acucela thereof at LIBOR plus a margin of * per annum and (b) all such amounts were repaid by
Acucela to Otsuka on the effective date of termination of this Agreement. Royalty payments under this Section 15.5.5 shall apply to each Collaboration Product on a country-by-country basis until * after First Commercial Sale of the first
Collaboration Product in such country, whichever is later. Sections 1.45, 6.3.3, 6.3.4, 6.3.6, 6.7 and 6.8 shall apply mutatis mutandis to royalty payments owed by Acucela to Otsuka under this Section 15.5.5. 

15.5.6 Related Agreement. Termination of this Agreement for any reason shall not terminate any Related Agreement unless otherwise
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 15.6 Survival. 

15.6.1 Surviving Articles and Sections. Articles 1, 13, and 16, Sections 6.7, 6.8, 6.9, 9.5.1 (unless this Agreement is
terminated by Otsuka under Section 15.2 or 15.3), 9.5.2 (for * after expiration or termination of this Agreement, provided that, Otsuka has complied with its disclosure obligation under Section 9.5.3, and if it has not, * after Otsuka
makes such disclosure), 9.6 (the first and last sentences only), 10.1, 10.2.2, 10.2.3 (with respect to Joint Patent Rights only), 10.2.5 (with respect to Joint Patent Rights only), 10.2.6 (with respect to Joint Patent Rights only), 10.2.7, 10.4-10.6
(with respect to Joint Patent Rights only), 12.4, 14.1-14.4 and 15.5-15.7 and any outstanding reconciliation of Net Profits (Losses) accrued prior to the date of expiration or termination pursuant to Exhibit B, if applicable, * expiration or
termination of this Agreement for any reason. Except as otherwise provided in this Article 15, all rights and obligations of the Parties under this Agreement shall terminate upon expiration or termination of this Agreement for any reason.

 15.6.2 Committee Decisions. To the extent that any provision of this Agreement that provides for a decision to be made
by a Committee survives termination of this Agreement pursuant to this Article 15, except as otherwise set forth in Section 15.5.4(f), such matter shall be decided by the Parties jointly, with respect to the JDC or any subcommittees
thereunder, and any dispute between the Parties with respect to any such matter shall be resolved as if it were a JDC Committee Dispute under Section 16.8 below and decided by Otsuka with respect to the JCC and any subcommittees thereunder.

 15.7 Rights in Bankruptcy. All rights and licenses granted under or pursuant to this Agreement by one Party to
the other are, and shall otherwise be deemed to be, for purposes of Section 365(n) of the U.S. Bankruptcy Code and other similar foreign Laws, licenses of rights to “intellectual property” as defined under Section 101 of the U.S.
Bankruptcy Code or such foreign Laws. Each Party, as a licensee of rights under this Agreement, shall retain and may fully exercise all of its rights and elections under the U.S. Bankruptcy Code and other similar foreign Laws. 

ARTICLE 16 

GENERAL PROVISIONS 
 16.1 Assignment. This Agreement shall not be assignable by either Party to any Third Party hereto without the written consent of the other Party hereto, except that (a) either Party may
assign this Agreement without the other Party’s consent to an entity that acquires all or substantially all of the business or assets of the assigning Party relating to this Agreement, whether by merger, asset sale or otherwise, provided that
the acquirer assumes this Agreement in writing or by operation of Law; and (b) either Party may assign this Agreement to an Affiliate upon written notice to the non-assigning Party; provided that in the case of (b), (i) the assigning Party
guarantees the performance of this Agreement by such Affiliate and (ii) if the non-assigning Party reasonably believes that assignment to such Affiliate would result in adverse tax consequences to the non-assigning Party, such assignment shall
not be made without the non-assigning Party’s prior written consent. Subject to the foregoing, this Agreement shall inure to the benefit of each Party, its successors and permitted assigns. Any assignment of this Agreement in contravention of
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 16.2 Independent Contractors. The Parties are and shall at all times be
independent contractors. In performing under this Agreement, neither Party is an agent, employee, employer, joint venturer or partner of the other. Neither Party shall incur or hold itself out to Third Parties as having the authority to incur any
expenses, liabilities or obligations on behalf of the other Party. This Agreement is not a partnership agreement and nothing in this Agreement shall be construed to establish a relationship of co-partners or joint venturers between the Parties.

 16.3 Third Party Beneficiaries. This Agreement shall not confer any rights or remedies upon any Affiliate of a
Party or any Third Party unless such Affiliate or Third Party is a permitted successor, assign or Sublicensee hereunder. 
 16.4
Waiver. No waiver by a Party in any one or more instances shall be deemed to be a continuing waiver, a further waiver, a waiver of any other provision of this Agreement or a waiver of this Agreement as a whole. No waiver of any right
under this Agreement shall be effective unless it is documented in a writing signed by the Party providing the waiver. 
 16.5
Force Majeure. A failure by a Party to perform any obligation under this Agreement that is prevented by an occurrence beyond the reasonable control of the non-performing Party (and which did not occur as a result of its financial
condition, negligence or fault), including acts of God, embargoes, fires, floods, explosions, riots, wars, civil disorders, terrorist acts, rebellion or acts of sabotage (a “Force Majeure Event”), shall not constitute a breach of
this Agreement so long as that Party notifies the other Party as soon as practicable and uses Commercially Reasonable Efforts to resume performance as soon as possible. Neither Party shall be entitled to rely on a Force Majeure Event to relieve it
from an obligation to pay money (including any interest for delayed payment) which would otherwise be due and payable under this Agreement. 
 16.6 Severability. If any term of this Agreement is held invalid, illegal or unenforceable in any jurisdiction, then, to the fullest extent permitted by Law: (a) all other terms shall
remain in full force and effect in such jurisdiction, (b) such invalidity, illegality or unenforceability shall not affect the validity, legality or enforceability of such provision in any other jurisdiction and (c) the Parties shall
negotiate in good faith such terms as may be necessary in order to correct any imbalance of rights and obligations that results from such invalidity, illegality or unenforceability in the relevant jurisdiction. 

16.7 Governing Law; Venue. This Agreement shall be governed by and interpreted under, and any court action shall apply, the
Laws of the State of New York, excluding its conflicts of Laws principles. Subject to Section 16.8, any dispute as to the performance, enforcement, termination, validity or interpretation of this Agreement shall be brought only in a federal
court of competent jurisdiction (or a state court if no federal court has jurisdiction) located in California and the Parties hereby submit to the exclusive jurisdiction and venue of such courts. 

  
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 16.8 Arbitration for JDC Disputes.

16.8.1 JDC Disputes. The Parties agree that the inability of the JDC to reach consensus on a decision that is expressly designated
in this Agreement to be made by such Committee (a “JDC Committee Dispute”) shall be resolved through the procedures set forth in this Section 16.8. 
 (a) In the event that the JDC is unable to reach consensus on a decision within its authority, such JDC Committee Dispute shall be referred for joint and mutual resolution by the Chief Executive Officer
of each Party (currently Dr. Taro Iwamoto in the case of Otsuka, and Dr. Kubota in the case of Acucela) or a designated representative who shall be a senior member of the management of each Party. If such JDC Committee Dispute is not
resolved by the Chief Executive Officers (or the respective designated representatives) within thirty (30) days after being referred for their joint and mutual resolution, then such JDC Committee Dispute shall, upon written notice of either
Party to the other Party, be resolved by final, binding arbitration in accordance with the provisions of Sections 16.8.1(b) through (d). 
 (b) The arbitration shall be conducted by the Judicial Arbitration and Mediation Services (or its successor entity) (“JAMS”) under its rules of arbitration then in effect, except as
modified in this Agreement. The arbitration shall be conducted in the English language, by a single arbitrator. If the Parties are unable to agree on an arbitrator, the arbitrator shall be selected in accordance with the JAMS rules, or if the JAMS
rules do not provide for such selection, by the chief executive of JAMS. At the request of either Party, the arbitrator shall engage an independent expert with experience in the subject matter of the dispute to advise the arbitrator, but final
decision making authority shall remain with the arbitrator. The arbitrator shall determine what discovery will be permitted, consistent with the goal of reasonably controlling the cost and time that the Parties must expend for discovery, provided
that the arbitrator shall permit such discovery as he or she deems necessary to permit an equitable resolution of the dispute. 

(c) The Parties and the arbitrator shall use all reasonable efforts to complete any such arbitration within thirty (30) days, and
such arbitration shall be a “baseball” type arbitration, meaning that, following all permitted discovery and in accordance with procedures otherwise determined by the arbitrator, each Party shall prepare a written report setting forth its
final position with respect to the substance of the dispute and the arbitrator shall then select one of the Party’s positions as his or her final decision. The arbitrator shall not have authority to render any substantive decision other than to
so select the position of either Otsuka or Acucela. 
 (d) The Parties agree that the decision of the arbitrator shall be the
binding remedy between them regarding the dispute presented to the arbitrator, and in the case of a JDC Committee Dispute, shall become the decision of the JDC on the matter. The arbitration proceedings and the decision of the arbitrator shall be
deemed Confidential Information of both Parties under Article 14 above. Unless otherwise mutually agreed upon by the Parties, the arbitration proceedings shall be conducted in San Francisco, California. The Parties agree that they shall share
equally the cost of the arbitration filing and hearing fees, the cost of the independent expert retained by the arbitrator and the cost of the arbitrator and administrative fees of JAMS. Each Party shall bear its own costs and attorneys’ and
witnesses’ fees and associated costs and expenses. 

  
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 16.8.2 Certain Deciding Votes. Notwithstanding Section 16.8.1 above, if the
Parties’ Chief Executive Officers (or their respective designees) are unable to resolve a JDC Committee Dispute as to the Detailed Plan, then in lieu of the procedures in Section 16.8.1(b) through (d) above, (a) Otsuka shall have
the right to cast a deciding vote of the JDC with respect to (i) selection and approval of one or more Potential Collaboration Compounds for Development as Backup Collaboration Compounds and the Development Plan for each such Backup
Collaboration Compound (and any revisions thereof); (ii) designation of a Backup Collaboration Compound as the Lead Compound; (iii) approval of Development of a Collaboration Product for the Second Indication or Other Indications and the
Development Plan for such Development (and any revisions thereof); (iv) approval of the Research Plan (and any revisions thereof); and (v) the specific allocation of resources and timelines in the (A) Detailed Plan which shall apply
to each Collaboration Compound, and (B) the Research Plan; and (b) each Party shall have the right to cast a deciding vote of the JDC in determining the strategy for the filing, prosecution and maintenance of its Sole Patent Rights,
provided that, such right shall be subject to the back-up prosecution rights set forth in Section 10.2.6. Each Party may cast such deciding vote after expiration of the thirty (30) day period described in
Section 16.8.1(a) above for the JDC Committee Dispute to be resolved by the respective Chief Executive Officers of the Parties (or their designees), by so notifying the other Party in writing, specifying the decision. Such decision shall be
deemed the decision of the JDC and be binding on the Parties. 
 16.9 Construction. Unless the context of this
Agreement clearly requires otherwise, (a) references to any gender include all genders, (b) “including” has the inclusive meaning frequently identified with the phrase “including but not limited to” or “including
without limitation,” (c) references to “hereunder” or “herein” relate to this Agreement and (d) the singular shall include the plural. Unless used in combination with the word “either,” the word
“or” is used throughout this Agreement in the inclusive sense (and/or). The section and other headings contained in this Agreement are for reference purposes only and shall not control or affect the construction of this Agreement or the
interpretation thereof in any respect. Section, subsection, and Exhibit references are to this Agreement unless otherwise specified. Each accounting term used herein that is not specifically defined herein shall have the meaning given to it
under GAAP, but only to the extent consistent with its usage and the other definitions in this Agreement. In addition: (i) “Business Day” means a day other than a Saturday, Sunday or a day that is a statutory holiday in Japan
or a federal holiday in the United States; and (ii) “Laws” means all laws, ordinances, rules, directives and regulations of any kind of any governmental or regulatory authority of a country in the applicable Territory
(including Regulatory Authorities), in each case to the extent applicable to the respective activities of a Party that are being performed. 

  
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 16.10 Notices. All notices that are required or
permitted hereunder shall be in writing and shall be sufficient if personally delivered or sent by Federal Express or other international business delivery service. Any notices shall be deemed given upon the earlier of the date when received at, or
the third (3rd) day after the date when sent by
Federal Express or other international business delivery service to, the address set forth below, unless such address is changed by notice to the other Party: 
 If to Otsuka: 
 Otsuka Pharmaceutical Co., Ltd. 

Shinagawa Grand Central Tower 
 2-16-4 Konan, Monato-ku 
 Tokyo 108-8242, Japan 

Attention: General Manager, Division of Dermatologicals & Ophthalmologicals, and Director, Legal Affairs Department 

with a copy (which shall not constitute notice) to: 
 Heller Ehrman LLP 
 4350 La Jolla Village Drive, 7th Floor 

San Diego, California 92122 
 Attention: David A. Charapp 
 If to Acucela: 

Acucela, Inc. 

21720 23rd Drive SE 
 Suite 120 
 Bothell, WA 98021 

Attention: Ryo Kubota, M.D., Ph.D. 
 with a copy (which shall not constitute notice) to: 
 Wilson Sonsini
Goodrich & Rosati 
 650 Page Mill Road 
 Palo Alto, CA 94304 
 Attention: Kenneth A. Clark, Esq. 

16.11 Amendment. This Agreement may be amended or modified only by a writing signed by each of the Parties. 

16.12 Entire Agreement. This Agreement and the Related Agreements between the Parties constitute the entire understanding
between the Parties as of the Effective Date with respect to the subject matter hereof and thereof and supersede all related prior or contemporaneous oral communications, agreements or discussions with respect to the subject matter hereof or
thereof. 
 16.13 Execution in Counterparts; Facsimile Signatures. This Agreement may be executed in two
counterparts, each of which counterparts, when so executed and delivered, shall be deemed to be an original, and both of which counterparts, taken together, shall constitute one and the same instrument even if both Parties have not executed the same
counterpart. Signatures provided by facsimile or similar electronic transmission shall be deemed to be original signatures. 

  
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 The Parties have executed this Agreement as of the Effective Date. 

 

									
	ACUCELA INC.	 		 	OTSUKA PHARMACEUTICAL CO., LTD.
					
	By:	 	 /s/ Ryo Kubota
	 		 	By:	 	 /s/ Taro Iwamoto

					
	Name:	 	 Dr. Ryo Kubota
	 		 	Name:	 	 Dr. Taro Iwamoto

					
	Title:	 	 Chairman, President and CEO
	 		 	Title:	 	 Representative Director and President

				
		 		 		 	OTSUKA PHARMACEUTICAL CO., LTD.
					
		 		 		 	By:	 	 /s/ Minoru Okada

					
		 		 		 	Name:	 	 Minoru Okada

					
		 		 		 	Title:	 	 General Manager and Operating Officer, Division of Dermatologicals &
Ophthalmologicals

 Signature Page to Co-Development and Commercialization Agreement 

 Execution Copy 
  

 EXHIBIT A 

Acucela Patent Rights 
 * 

  

	*	Confidential Treatment Requested. 

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 EXHIBIT B 

Financial Terms 
 DETERMINATION OF CERTAIN ACCOUNTING TERMS 
 All amounts in this Exhibit B
shall be determined in accordance with applicable GAAP. Each expense shall be allocated only to one element of Allowable Expenses. Except where the context requires otherwise, capitalized terms used but not defined below shall have the meanings
assigned to them in the Agreement to which this Exhibit B is attached. References in this Exhibit B to the Field are not intended to exclude expenses relating to off-label sales. 

1. “Cost of Goods Sold” means costs associated with producing Collaboration Product for commercial supply for the Shared
Territory in the Field, in either bulk or final form, incurred by a Party or its Affiliates, and which shall be the sum of the following: 
 (i) The amounts paid by a Party to another Party or a Third Party for manufacturing, testing, filling, packaging, and/or finishing services for such Collaboration Product, or any component thereof; and

 (ii) “Direct Expenses,” which means those material, labor, and service expenses captured in time sheets and
invoices, that are allocable to or used in the manufacture, finishing, filling, or testing of Collaboration Products or components thereof, including (a) the cost of raw materials, filters, manufacturing supplies, solvent, containers, container
components, packaging, labels, and other printed materials used in production; (b) salaries, payroll taxes, and benefits actually paid for personnel directly involved in supply of Collaboration Product; (c) the cost of process
improvements, manufacturing scale up, and manufacturing site qualification occurring after Regulatory Approval of such Collaboration Product; and (d) reasonable FTE costs and direct out-of-pocket costs recorded as an expense by such Party in
accordance with applicable GAAP in connection with the manufacture of such Collaboration Product or components thereof, in each case which costs shall be consistent with the applicable Commercialization Plan and the budget set forth therein; and

 (iii) “Indirect Expenses,” which means a reasonable allocation of expenses associated with a Party’s
personnel supporting the supply of Collaboration Product or components thereof, including expenses of labor and overhead for quality control, quality assurance, raw material acquisition and acceptance, microbiology, document control,
calibration/validation, and expenses for technology development and analytical methods development supporting manufacturing and supply of Collaboration Products or components thereof, but excluding Direct Expenses, interest expenses, and capital
expenditures for facilities and equipment used to manufacture Collaboration Product; and 

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 (iv) “Overhead Costs,” which means direct and indirect manufacturing
costs with respect to Collaboration Product, that cannot be identified in a practical manner with specific units of production and, therefore, are not included in subsections (i) through (iii), above. Overhead Costs may include:
(a) specific manufacturing overhead allocations, including but not limited to facilities support costs, utilities, indirect materials and supplies, consumables, plant management, engineering and development support, maintenance and repair of
the production plant and production equipment, property taxes (excluding income taxes), materials management, inventory storage, information management services, and insurance, but shall exclude excess capacity; and (b) depreciation and lease
costs, including interest expenses, over the expected life of buildings and equipment specifically attributable to Collaboration Product or components thereof; and 
 (v) “Third Party Royalties,” which means (i) allocable royalties due to Third Parties with respect to the manufacture, use, sale, offer for sale, import or export of Collaboration
Compounds or Collaboration Products and (ii) other allocable payments due to Third Parties from which one or both Parties obtained a license under technology used to make, use, sell, offer for sale, import or export Collaboration Compounds or
Collaboration Products, in each case for the Shared Territory. 
 Such Costs of Goods Sold shall not include any costs
associated with process development, scale up costs, qualification lots and any other costs if they are incurred prior to Regulatory Approval of such Collaboration Product or costs of activities primarily conducted for supply for the Royalty-Bearing
Territory. 
 2. “Marketing Expenses” means costs and expenses incurred by a Party or any of its Affiliates in
accordance with applicable GAAP during the Term of this Agreement that are specifically identifiable or reasonably allocable to the Commercialization of a Collaboration Product by such Party or any of its Affiliates for the Shared Territory in the
Field and that are incurred in connection with the applicable Commercialization Plan. Marketing Expenses shall include direct-to-consumer advertising and both internal costs (e.g., salaries, benefits, supplies, and materials, etc.) and costs of
obtaining outside services and materials and conducting outside activities. Marketing Expenses shall also include costs and expenses incurred by a Party or any of its Affiliates that are directly related to the cost of obtaining sales and marketing
data and Detail Costs. Marketing Expenses shall include costs of such activities that are incurred at any time after the Effective Date and during the term of this Agreement. Notwithstanding anything to the contrary in the foregoing, Marketing
Expenses shall specifically exclude the cost and expense of activities that promote a Party’s business as a whole that are not specific to a Collaboration Product (e.g., corporate image advertising). 

3. “Distribution Expenses” means the direct costs and expenses specifically identifiable to the distribution,
transportation, storage, and insurance of a Collaboration Product in the Shared Territory in the Field by a Party or its Affiliates, including: (i) warehousing of such Collaboration Product from the point of completion of production to the time
the Collaboration Product is turned over to a carrier for delivery; (ii) handling and transportation to fulfill orders (excluding such costs, if any, treated as a deduction in the 

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definition of Net Sales), including outbound transportation costs and costs of moving goods from a manufacturing point to a warehouse at another location from which it is ultimately to be
distributed to a customer; and (iii) customer services, including order entry, billing and adjustments, inquiry and credit and collection, order entry, billing, shipping, credit and collection, but in any case, not including any costs or
expenses which are reimbursed by any Third Party. 
 4. “Post-Launch Product R&D Expenses” means certain
research and development costs incurred by a Party in relation to a Collaboration Product for the Shared Territory in the Field after the First Commercial Sale in the Shared Territory of such Collaboration Product and required to obtain or maintain
a Regulatory Approval in the Shared Territory. Such post-launch research and development costs shall include Phase IV Clinical Trials and ongoing medical affairs. 
 5. “Allocable Administration Expenses” means the administration expenses incurred by a Party or any of its operating units that are directly engaged in the Commercialization of a
Collaboration Product in the Shared Territory in the Field pursuant to the applicable Commercialization Plan, to be calculated in the manner set forth below. The costs recoverable as Allocable Administration Expenses are the costs of finance,
management information services, human resources, legal (other than costs applied pursuant to Section 6 below), and employees engaged in general management functions for the operating units in question. For clarity, Allocable Administration
Expenses shall include the direct costs of employees performing such functions, the costs of supporting such individuals in the performance of their job (e.g., occupancy costs, travel, computers, and telephones), and outside services (e.g.,
consulting and audit services). Such costs shall be calculated in accordance with the customary accounting methodology of the Party incurring such expenses, consistently applied throughout such organization. Total Allocable Administrative Expenses
of a Party shall not exceed * of the Allowable Expenses incurred by such Party (excluding Allocable Administrative Expense), on an annual basis. For the avoidance of doubt, neither Party shall charge the Collaboration for overhead with respect to
the Commercialization of a Collaboration Product other than Allocable Administrative Expenses as provided above, except to the extent that such overhead charges are specifically set forth in the budget set forth in the Commercialization Plan.

 6. “Patent Expenses” means (i) all direct costs, including the reasonable fees and expenses paid to
outside counsel and other Third Parties, related to the filing and maintenance fees paid to governmental authorities recorded as an expense by a Party or any of its Affiliates in accordance with applicable GAAP after the Effective Date in connection
with the preparation, filing, prosecution, and maintenance of patent rights, including costs of patent interference, opposition, reissue, or re-examination proceedings and filing and registration fees, in each case to the extent that the applicable
patent claims the composition of matter, article of manufacture, method of use, or method of manufacture of a Collaboration Product in the Shared Territory and (ii) the costs of litigation (enforcement or defense) or other proceedings, under
such patents, in each case only to the extent related to a Collaboration Product in the Shared Territory in the Field and not reimbursed by a Third Party. 
 7. “Trademark Expenses” means (i) all direct costs, including the reasonable fees and expenses paid to outside counsel and other Third Parties, related to the filing and maintenance
fees paid to governmental authorities recorded as an expense by a Party or any of its Affiliates in accordance with applicable GAAP after the Effective Date in connection with the preparation, filing,

  

	*	Confidential Treatment Requested. 

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prosecution, and maintenance of trademarks used in Commercialization of a Collaboration Product, and (ii) the costs of litigation (enforcement or defense) or other proceedings, under such
trademarks, in each case only to the extent related to a Collaboration Product in the Shared Territory in the Field and not reimbursed by a Third Party. 
 8. “Regulatory Expenses” means all costs incurred to comply with all Regulatory Approvals and requirements of all regulatory agencies, including FDA user and other fees, reporting, and
other regulatory affairs activities (including filing, user, maintenance and other fees paid to Regulatory Authorities) recorded as an expense in accordance with applicable GAAP, by or on behalf of a Party or any of its Affiliates during the term of
and pursuant to this Agreement, that are specifically identifiable or reasonably allocable to the preparation of regulatory submissions for, and the obtaining and maintenance of reimbursement for and Regulatory Approval of, any Collaboration Product
in the Shared Territory in the Field, including compliance with requirements of such Regulatory Authorities, adverse event recordation and reporting, regulatory affairs activities, and recalls and withdrawals of any Collaboration Product, in each
case in the Shared Territory. 

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 EXHIBIT C 

ACU-4429 Drug Product 
 Current Clinical Formulation 
 The current ACU-4429 investigational drug product is
immediate release tablets *. The tablets are round and white. The formulation contains two inactive ingredients: *. *. A list of the ACU-4429 tablet components is presented in Table I, and the quantitative unit compositions for the three tablet
strengths are presented in Table II. Note that the drug substance (API) weights are adjusted to account for *. 
 Table I - List of ACU-4429
tablet components 
  

							
	 Component
	  	 Abbreviation / Trade Name
	  	 Grade
	  	 Function

	ACU-4429 HCl API	  	Not applicable	  	Meets the specification	  	Drug substance (API)
	*	  	*	  	*	  	*
	*	  	*	  	*	  	*

 Table II - Unit composition of ACU-4429 tablets. 

 

													
	 	  	Amount (mg)	 
	 Ingredient
	  	* Tablet	 	  	* Tablet	 	  	* Tablet	 
	 ACU-4429 HCl API
	  	 	*	  	  	 	*	  	  	 	*	  
	 *
	  	 	*	  	  	 	*	  	  	 	*	  
	 *
	  	 	*	  	  	 	*	  	  	 	*	  
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 
	 Total weight (mg)
	  	 	*	  	  	 	*	  	  	 	*	  
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 

  

	*	Confidential Treatment Requested. 

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 EXHIBIT D 

Overview of Initial Development Activities * 

 

							
	 Item
	  	 Description
	  	 Approximate Initiation Date
	  	 Approximate Duration

	 Clinical
	  		  		  	
	Phase Ia	  	*	  	*	  	*
	Phase Ib	  	*	  	*	  	*
	Phase IIa	  	*	  	*	  	*
	Phase IIb	  	*	  	*	  	*
	Clinical Pharmacology	  	*	  	*	  	*
	Nonclinical	  		  		  	
	Toxicology Studies	  	*	  	*	  	*
	  	*	  	*	  	*
	  	*	  	*	  	*
	DMPK Studies	  	*	  	*	  	*
	  	*	  	*	  	*
	  	*	  	*	  	*
	Safety Pharmacology	  	*	  	*	  	*
	Efficacy Pharmacology	  	*	  	*	  	*
	CMC	  		  		  	
	Drug Substance	  	*	  	*	  	*
	  	*	  	*	  	*
	Drug Product	  	*	  	*	  	*
	  	*	  	*	  	*

  

	*	Confidential Treatment Requested. 

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 EXHIBIT E 

Promissory Note 

THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AND HAVE BEEN ACQUIRED FOR INVESTMENT AND NOT
WITH A VIEW TO, OR IN CONNECTION WITH, THE SALE OR DISTRIBUTION THEREOF. NO SUCH SALE OR DISTRIBUTION MAY BE EFFECTED WITHOUT AN EFFECTIVE REGISTRATION STATEMENT RELATED THERETO OR AN OPINION OF COUNSEL IN A FORM SATISFACTORY TO THE COMPANY THAT
SUCH REGISTRATION IS NOT REQUIRED UNDER THE SECURITIES ACT OF 1933. 
 SECURED PROMISSORY NOTE 

(Grid Note) 
 Effective Date:             , 200     
 For value received, Acucela Inc., a Washington corporation (the “Company”), promises to pay to Otsuka Pharmaceutical Co., Ltd. (the “Holder”) the principal
sum of the aggregate unpaid principal amount of all advances made to the Company by the Holder for the Phase III Costs for which the Company is responsible pursuant to Section 6.4.1(a) of the Co-Development and Commercialization Agreement dated
as of the date hereof between the Company and Holder (as may be amended, modified or supplemented or restated from time to time, the “Development Agreement”) and for the Phase II Costs for which the Company is responsible
pursuant to Section 6.4.1(d) of the Development Agreement (such advances shall collectively be referred to as the “Principal Amount”), together with interest thereon, all as hereinafter provided and upon the following
agreements, terms and conditions. Each advance hereunder (together with all capitalized interest hereunder pursuant to the terms of Section 2 below) shall bear interest from the date of such advance until repaid in full at the Applicable Rate
(as defined below) for each calendar quarter that such advance (together with all capitalized interest hereunder pursuant to the terms of section 2 below) is outstanding. The Principal Amount and any and all interest owing hereunder is payable in
cash as set forth below. Interest shall accrue from day to day and shall be calculated on the basis of a year of 360 days. The Applicable Rate for each outstanding Advance (including all capitalized interest included in the amount of such advance
pursuant to Section 2 below) shall be adjusted on a quarterly basis reflecting the then-effective Applicable Rate for such quarter. The term “Applicable Rate” shall mean a per annum rate of interest for each calendar quarter equal to
the three month LIBOR rate as published in the “Money Rates” column of the Wall Street Journal as of the first day of such calendar quarter plus three percent (3.0%). 

1. This note (the “Note”) is issued in connection with the Development Agreement. All capitalized terms used and
not otherwise defined herein shall have the respective meanings given to them in the Development Agreement or the Security Interest Agreement (as defined below), as applicable. 

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 2. The Company hereby authorizes the Holder or any authorized agent of the Holder to
endorse on the Schedule annexed to this Note the Principal Amount of all advances made to the Company and evidenced hereby and all payments of Principal Amounts in respect of such advances, which endorsements shall, in the absence of manifest error,
be conclusive as to the outstanding Principal Amount of all advances made hereunder; provided, however, that the failure to make such notation with respect to any advance or payment shall not limit or otherwise affect the obligations
of the Company under this Note. Upon request by the Holder, the Chief Financial Officer or Controller of the Company (or if none, an officer of the Company with similar responsibilities) shall meet with an agent of the Holder from time to time to
discuss the advances and repayments made on this Note. The decision to advance principal under this Note shall be made in accordance with the terms of the Development Agreement. Upon each anniversary of the date of each advance, all accrued and
unpaid interest on the principal balance of such advance shall be added to principal and thereafter bear interest at the rate prescribed for such advance. 
 3. All payments of the Principal Amount shall be in lawful money of the United States of America and shall be made to the Holder. Payment shall be credited first to the accrued and unpaid interest then
due and payable and the remainder applied to the Principal Amount. This Note shall be due and payable in accordance with Section 6.4.1(b) of the Development Agreement; provided, however, the entire unpaid principal sum of this
Note, together with accrued and unpaid interest thereon, shall become immediately due and payable upon the Company being unable, or admitting in writing its inability, to pay its debts generally as they mature, the commission of any act of
bankruptcy by the Company, the execution by the Company of a general assignment for the benefit of creditors, the filing by or against the Company of a petition in bankruptcy or any petition for relief under the federal bankruptcy act and the
continuation of such petition without dismissal for a period of 90 days or more, or the appointment of a receiver or trustee to take possession of the property or assets of the Company. The Company may prepay this Note at any time without penalty or
premium, provided that the Company provide Holder with not less than fourteen (14) days prior written notice. 
 4. This
Note is secured by the Collateral identified and described as security in the Security Interest Agreement of even date herewith, by and between the Company and the Holder (as may be amended, modified or supplemented or restated from time to time,
the “Security Interest Agreement”). In case of an Event of Default, the Holder shall have the rights set forth in the Security Interest Agreement. 
 5. The Company hereby waives demand, notice, presentment, protest and notice of dishonor. 
 6. The terms of this Note shall be construed in accordance with the laws of the State of Washington, as applied to contracts entered into by Washington residents within the State of Washington, which
contracts are to be performed entirely within the State of Washington. Notwithstanding any provision of this Note to the contrary, the rate of interest due on this Note shall not exceed the maximum rate permitted by applicable law. To the extent
that any interest 

  
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otherwise paid or payable by the Company to the Holder shall have been finally adjudicated to exceed the maximum amount permitted by applicable law, such interest shall be retroactively deemed to
have been a required repayment of principal (and any such amount paid in excess of the outstanding principal amount shall be promptly returned to the Company). 
 7. Any term of this Note may be amended or waived only with the written consent of the Company and the Holder. Any amendment or waiver effected in accordance with this Section 7 shall be binding upon
the Company, each Holder and each transferee of any Note 
 8. Neither this Note nor any right or obligation hereunder is
assignable in whole or in part, whether by operation of law or otherwise, by the Company or Holder without the express written consent of the other party; provided that the express written consent of the Company shall not be required for an
assignment by Holder to an Affiliated Company. The terms and conditions of this Note shall inure to the benefit of and be binding upon the respective successors and assigns of the parties. This Note may be transferred in accordance with this
Section 8 by the Holder only upon surrender of the original Note for registration of transfer, duly endorsed, or accompanied by a duly executed written instrument of transfer in form reasonably satisfactory to the Company. Thereupon, a new note
for the same principal amount and interest will be issued to, and registered in the name of, the transferee. Interest and principal are payable only to the registered holder of this Note. “Affiliated Company” means, with respect to
Holder, an entity controlling, controlled by, or under common control with Holder. 
 9. If action is instituted to collect on
this Note, the Company promises to pay all costs and expenses, including reasonable attorney’s fees, incurred in connection with such action. 
 10. NOTICE REGARDING ORAL COMMITMENTS. ORAL AGREEMENTS OR ORAL COMMITMENTS TO LOAN MONEY, EXTEND CREDIT, OR TO FORBEAR FROM ENFORCING PAYMENT OF A DEBT ARE NOT ENFORCEABLE UNDER WASHINGTON LAW.

 [Remainder of Page Intentionally Left Blank] 

  
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	ACUCELA INC.
		
	By:	 	  

		
	Name:	 	  

		
	Its:	 	  

	Address:	 	21720 23rd Drive SE, Suite 120
		 	Bothell, WA 98021
	
	OTSUKA PHARMACEUTICAL CO., LTD.
		
	By:	 	  

		
	Name:	 	  

		
	Its:	 	  

		
	Address:	 	

 [SIGNATURE PAGE TO ACUCELA
INC. SECURED PROMISSORY NOTE] 

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 SCHEDULE TO SECURED PROMISSORY NOTE 

ACUCELA INC. 
  

																			
	 Advance No.
	  	Date of
Advance
or
Payment	  	Amount
of
Advance	  	Interest
Rate	 	  	Interest Repaid on
Such Advance	  	Principal Repaid on
Such Advance	 	  	Remaining Unpaid
Principal Balance of
Advance	  	Name of Person
Making Notation
(together with Initials
of Such Person)
	 1
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	 Advance No.
	  	Date of
Advance
or
Payment	  	Amount
of
Advance	  	Interest
Rate	  	Interest Repaid on
Such Advance	  	Principal Repaid on
Such Advance	  	Remaining Unpaid
Principal Balance of
Advance	  	Name of Person
Making Notation
(together with Initials
of Such Person)
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	 Advance No.
	  	Date of
Advance
or
Payment	  	Amount
of
Advance	  	Interest
Rate	  	Interest Repaid on
Such Advance	  	Principal Repaid on
Such Advance	  	Remaining Unpaid
Principal Balance of
Advance	  	Name of Person
Making Notation
(together with Initials
of Such Person)
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 EXHIBIT F 

Security Interest Agreement 
 ACUCELA INC. 
 SECURITY INTEREST AGREEMENT 

This Security Interest Agreement (the “Agreement”) is made as of
                 , 2008 by and between Acucela Inc., a Washington corporation (the “Debtor”), in favor of Otsuka Pharmaceutical Co., Ltd. (the
“Secured Party”). 
 RECITALS 
 The Debtor and the Secured Party are parties to a Co-Development and Commercialization Agreement of even date with this Agreement (the “Development Agreement”) pursuant to which the
Secured Party shall loan certain amounts to the Debtor, as reflected in the Promissory Note, for the Phase III Costs, as further described in the Development Agreement. The parties intend that the Debtor’s obligations to repay the Obligations
be secured by certain assets of the Debtor. 
 AGREEMENT 

In consideration of the Recitals above and for other good and valuable consideration, the receipt and adequacy of which are hereby
acknowledged, the Debtor hereby agrees with the Secured Party as follows: 
 1. Grant of Security Interest.

 (a) To secure the Debtor’s full and timely performance of the Obligations, the Debtor hereby grants to the Secured Party
a continuing Lien on and security interest (the “Security Interest”) in, all of the Debtor’s right, title and interest in and to the following personal property and assets (both tangible and intangible), whether now owned or
hereafter acquired and wherever located: (i) positive Net Profits generated by the Parties in the Shared Territory; (ii) the Royalty for the Shared Territory payable to Debtor pursuant to Section 6.3.2 of the Development Agreement;
(iii) positive net profits (calculated in the same manner as Net Profits) generated by Debtor from the sale of Collaboration Products in the Acucela Territory; (iv) any consideration (excluding any and all Sublicensing Deductions) received
by Debtor from the sale, licensing or sublicensing of rights to Collaboration Compounds or Collaboration Products or the underlying intellectual property rights in the Acucela Territory; (v) Debtor’s ownership of the related Collaboration
Compound and Collaboration Product, and the underlying Intellectual Property rights, both in the Shared Territory and Acucela Territory; and (vi) all Proceeds of each of the foregoing and all accessions to, and replacements for, each of the
foregoing (collectively, the “Collateral”). The Security Interest shall be a first and prior interest in all of the Collateral. All references to Debtor herein shall be deemed to include any Affiliates of Debtor (as defined in the
Development Agreement). 

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 (b) The following terms shall have the following meanings for purposes of this
Agreement: 
 “Intellectual Property” means, collectively, all intellectual property rights, priorities and
privileges of the Debtor relating to the Collaboration Compounds and Collaboration Products, whether arising under United States, multinational or foreign laws or otherwise in the Acucela Territory or Shared Territory, including information,
results, data, discoveries, practices, methods, tests, assays, techniques, specifications, processes, procedures, drawings, plans, designs, diagrams, formulations, formulae, knowledge, skill, experience, materials, products and compositions,
copyrights, copyright licenses, inventions, Patent Rights (as defined in the Development Agreement), patent licenses, trademarks, trademark licenses and trade secrets (including customer lists), domain names, Web sites and know-how. 

“Lien” means any mortgage, deed of trust, pledge, hypothecation, assignment for security, security interest,
encumbrance, levy, lien or charge of any kind, whether voluntarily incurred or arising by operation of law or otherwise, against any property, any conditional sale or other title retention agreement, any lease in the nature of a security interest,
and the filing of any financing statement (other than a precautionary financing statement with respect to a lease that is not in the nature of a security interest) under the UCC or comparable law of any jurisdiction. 

“Obligations” shall mean and include all loans, advances, debts, liabilities and obligations, howsoever arising, owed by
the Debtor to the Secured Party of every kind and description (whether or not evidenced by any note or instrument and whether or not for the payment of money), direct or indirect, absolute or contingent, due or to become due, now existing or
hereafter arising pursuant to the terms of the Promissory Note (including any and all extensions, modifications, amendments, restatements and replacements thereto), including without limitation all interest, fees, charges, expenses, attorneys’
fees and accountants’ fees chargeable to the Debtor or payable by the Debtor thereunder. 
 “Proceeds”
means “Proceeds,” as such term is defined in the UCC. 
 “UCC” means the Uniform Commercial Code as
the same may, from time to time, be in effect in the State of Washington; provided, that in the event that, by reason of mandatory provisions of law, any or all of the attachment, perfection or priority of, or remedies with respect to,
Secured Party’s Lien on any Collateral is governed by the Uniform Commercial Code as enacted and in effect in a jurisdiction other than the State of Washington, the term “UCC” shall mean the Uniform Commercial Code as enacted and in
effect, from time to time, in such other jurisdiction solely for purposes of the provisions thereof relating to such attachment, perfection, priority or remedies and for purposes of definitions related to such provisions. 

Unless otherwise defined herein, all capitalized terms used herein and defined in the Development Agreement shall have the respective
meaning given to those terms in the Development Agreement, and terms that are defined in the UCC and used herein shall have the meanings given to them in the UCC. 

  
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 2. Representations and Warranties. The Debtor hereby represents and
warrants to the Secured Party that: 
 (a) Ownership of Collateral. Except as otherwise contemplated by the
Development Agreement, the Debtor is the legal and beneficial owner of the Collateral (or, in the case of after-acquired Collateral, at the time the Debtor acquires rights in the Collateral, will be the legal and beneficial owner thereof). Except
for the Security Interest granted to the Secured Party pursuant to this Agreement, the Debtor has rights in or the power to transfer the Collateral free and clear of any adverse Lien, security interest or encumbrance except as created by this
Security Interest. No financing statements covering any Collateral or any proceeds thereof are on file in any public office (other than filings listing the Secured Party as the secured party). 

(b) Valid Security Interest. The Security Interest granted pursuant to this Agreement will constitute a valid and
continuing first priority, perfected security interest in favor of the Secured Party in the Collateral for which perfection is governed by the UCC or filing with the United States Copyright Office or United States Patent and Trademark Office. Such
Security Interest will be prior to all other Liens on the Collateral. 
 (c) Organization and Valid Existence. The
Debtor has been duly incorporated and is validly existing under the laws of the State of Washington and has a Unified Business Identifier (UBI) number of 602200614. 
 (d) Location, State of Organization and Name of the Debtor. The Debtor’s state of organization is Washington and the Debtor’s exact legal name as it appears in the official
filings in the State of Washington is as set forth in the first paragraph of this Agreement. The Debtor has only one jurisdiction of organization. 
 (e) Valid Lien. This Agreement is effective to create a valid and continuing Lien upon the Collateral. All action by the Debtor necessary or desirable to protect and perfect such Lien on
each item of the Collateral has been duly taken. 
 3. Covenants. The Debtor covenants and agrees with the Secured
Party that, from and after the date of this Agreement until the Obligations are paid in full: 
 (a) Other
Liens. Except for the Security Interest, the Debtor has rights in or the power to transfer the Collateral and its title and will be able to do so hereafter free from any adverse Lien, security interest or encumbrance, and the Debtor
will defend the Collateral against the claims and demands of all persons at any time claiming the same or any interest therein. 

(b) Further Documentation. At any time and from time to time, upon the written request of the Secured Party, and at the
sole expense of the Debtor, the Debtor will promptly and duly authenticate and deliver such further instruments and documents and take such further action as the Secured Party determines necessary or desirable for the purpose of obtaining or
preserving the full benefits of this Agreement and of the rights and powers herein granted including, without limitation, filing any financing or continuation statements under the UCC in effect with respect to the Liens created hereby. The Debtor
also hereby authorizes the Secured Party to file any such financing, amendment or continuation statement without the authentication of the Debtor to the extent permitted by applicable law. 

(c) Indemnification. The Debtor agrees to defend, indemnify and hold harmless the Secured Party against any and all
liabilities, costs and expenses (including, without 

  
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limitation, legal fees and expenses): (i) with respect to, or resulting from, any delay in paying, any and all excise, sales or other taxes which may be payable or determined to be payable
with respect to any of the Collateral, (ii) with respect to, or resulting from, any delay in complying with any law, rule, regulation or order of any governmental authority applicable to any of the Collateral or (iii) in connection with
any of the transactions contemplated specifically by this Agreement. The Debtor’s indemnification obligations under this Section 3(c) shall only be applicable to liabilities, costs or expenses relating to the Secured Party’s rights
under this Agreement and shall not include rights arising under the Development Agreement to the extent such rights exceed those set forth herein. 
 (d) Maintenance of Records. The Debtor will keep and maintain at its own expense complete and satisfactory records of the Collateral. 

(e) Inspection Rights. The Secured Party shall have full access during normal business hours, and upon prior notice, to all
the books, correspondence and other records of the Debtor relating to the Collateral. The Secured Party or its representatives may examine such records and make photocopies or otherwise take extracts from such records. The Debtor agrees to render to
the Secured Party, at the Debtor’s expense, such clerical and other assistance as the Secured Party may request with regard to the exercise of its rights pursuant to this paragraph. 

(f) Compliance with Laws, etc. The Debtor (i) will comply with all laws, rules, regulations and orders of any
governmental authority applicable to any part of the Collateral and (ii) shall not use or permit any Collateral to be used in violation of any provision of the Development Agreement and the Promissory Note, any law, rule or obligation or order
of any governmental authority. 
 (g) Payment of Obligations. The Debtor will pay promptly when due all taxes,
assessments and governmental charges or levies imposed upon the Collateral or with respect to any income or profits derived from the Collateral, as well as all claims of any kind against or with respect to the Collateral. 

(h) Limitation on Liens on Collateral. The Debtor will not create, incur or permit to exist, will defend the Collateral
against, and will take such other action as is necessary to remove, any Lien or claim on or to the Collateral, other than the Security Interest, and will defend the right, title and interest of the Secured Party in and to any of the Collateral
against the claims and demands of all other persons. 
 (i) Limitations on Dispositions of Collateral. The Debtor
will not sell, transfer, lease, or otherwise dispose of any of the Collateral, or attempt, offer or contract to do so, provided, however, that notwithstanding the foregoing, the Debtor shall be permitted to use any cash proceeds of the Collateral in
the ordinary course of business; provided further, however, such use is otherwise in compliance with the provisions of the Development Agreement and the Promissory Note. 
 (j) Further Identification of Collateral. The Debtor will furnish to the Secured Party from time to time statements and schedules further identifying and describing the Collateral and such
other reports in connection with the Collateral as the Secured Party may request, all in detail acceptable to the Secured Party. 

  
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 (k) Notice of Change of State of Incorporation. Without prior written
notice to, the Secured Party, the Debtor shall not change the Debtor’s name, state of incorporation or organization, organizational identification number or place of business (or, if the Debtor has more than one place of business, its chief
executive office). 
 (l) Intellectual Property Matters. Subject to the terms of the Development Agreement, the
Debtor shall promptly notify the Secured Party if it knows or has reason to know (i) that any application or registration relating to the Intellectual Property may become abandoned or dedicated, or (ii) of any adverse determination or
development (including the institution of, or any such determination or development in, any proceeding in the United States Patent and Trademark Office, the United States Copyright Office or any court) regarding the Debtor’s ownership of the
Intellectual Property, its right to register the same, or to keep and maintain the same. 
 (m) Intellectual Property
Applications. Upon request of the Secured Party, the Debtor shall execute and deliver any and all security documents as the Secured Party may request to evidence the Secured Party’s Lien on the Intellectual Property and the general
intangibles of the Debtor relating thereto or represented thereby. The Debtor hereby authorizes the Secured Party to amend this Agreement (without any further action or consent from the Debtor) to include any such patent, trademark or copyright as
Collateral hereunder. 
 (n) Intellectual Property Abandonment. Subject to the terms of the Development Agreement,
the Debtor shall take all reasonable actions to maintain and pursue each application, to obtain the relevant registration and to maintain the registration of the Intellectual Property, including the filing of applications for renewal, affidavits of
use, affidavits of noncontestability and opposition and interference and cancellation proceedings. 
 (o) Protection of
Intellectual Property. Subject to the terms of the Development Agreement, in the event that any of the Intellectual Property is infringed upon, or misappropriated or diluted by a third party, the Debtor shall notify the Secured Party
promptly after the Debtor learns thereof. Subject to the terms of the Development Agreement, the Debtor shall, unless the Secured Party and Debtor shall reasonably determine otherwise, promptly sue for, and seek recovery of any and all damages
resulting from such infringement, misappropriation or dilution, and shall take such other reasonable actions as the Secured Party shall deem appropriate or desirable under the circumstances to protect the Intellectual Property. 

(p) Limitation on Filing of Financing Statements. The Debtor acknowledges that it is not authorized to file any financing
statement or amendment or termination statement with respect to any financing statement without the prior written consent of the Secured Party and agrees that it will not do so without the prior written consent of the Secured Party, subject to the
Debtor’s rights under Section 9509(d)(2) of the UCC. 
 (q) Financial Statements. The Debtor shall
deliver its annual financial statements (including an income statement, balance sheet, statement of shareholder’s equity and 

  
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statement of cash flows) to Secured Party within 120 days of the end of each calendar year. In addition, Debtor shall deliver quarterly financial statements (including a profit or loss statement,
statement of cash flows and balance sheet) within 45 days after the end of each of the first three quarters of each fiscal year. Such financial statements shall be in reasonable detail and shall be prepared in accordance with generally accepted
accounting principles, consistent with past practices, except, in the case of unaudited financials, for the absence of footnotes and subject to year end audit adjustments. Notwithstanding the foregoing, to the extent Debtor otherwise prepares
audited financial statements, Secured Party shall receive audited financial statements hereunder when such audited financial statements have been prepared and delivered to Debtor, otherwise the financial statements shall be unaudited. 

4. Event of Default; the Secured Party’s Appointment as Attorney-in-Fact. 

(a) Event of Default. For purposes of this Agreement, the occurrence of any one of the following events (each, an
“Event of Default”) shall constitute an Event of Default hereunder and under the Promissory Note: 
 (i) The
Debtor’s failure to pay or discharge the Obligations in full in accordance with the terms of the Promissory Note and such failure shall continue for 10 business days; 
 (ii) A material breach of a representation or warranty made by the Debtor under this Agreement as of the date hereof. 
 (iii) The Debtor’s failure to observe or perform any other covenant, obligation, condition or agreement contained in this Agreement or the Promissory Note and such failure shall not be cured (if
capable of cure) within 30 days of written notice to the Debtor from the Secured Party. 
 (iv) The Debtor shall be unable, or
shall admit in writing its inability to pay its debts generally as they mature, the commission of any act of bankruptcy by the Debtor, the execution by the Debtor of a general assignment for the benefit of creditors, the filing by or against the
Debtor of a petition in bankruptcy or any petition for relief under the federal bankruptcy act or the continuation of such petition without dismissal for a period of ninety (90) days or more, or the appointment of a receiver or trustee to take
possession of the property or assets of the Debtor. 
 (b) Powers. The Debtor hereby appoints the Secured Party
and any officer or agent of the Secured Party, with full power of substitution, as its attorney-in-fact with full irrevocable power and authority in the place of the Debtor and in the name of the Debtor or its own name, from time to time in the
Secured Party’s discretion, for the purpose of carrying out the terms of this Agreement, to take any appropriate action and to authenticate any instrument which may be necessary or desirable to accomplish the purposes of this Agreement. Without
limiting the foregoing, so long as an Event of Default has occurred and is continuing, the Secured Party shall have the right, without notice to, or the consent of, the Debtor, to do any of the following on the Debtor’s behalf: 

(i) to pay or discharge any taxes or Liens levied or placed on or threatened against the Collateral; 

  
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 (ii) to direct any party liable for any payment under any of the Collateral to make
payment of any and all amounts due or to become due thereunder directly to the Secured Party or as the Secured Party directs; 

(iii) to ask for or demand, collect, and receive payment of and receipt for, any payments due or to become due at any time in respect of
or arising out of any Collateral; 
 (iv) to commence and prosecute any suits, actions or proceedings at law or in equity in
any court of competent jurisdiction to enforce any right in respect of any Collateral; 
 (v) to defend any suit, action or
proceeding brought against the Debtor with respect to any Collateral; 
 (vi) to settle, compromise or adjust any suit, action
or proceeding described in subsection (v) above and to give such discharges or releases in connection therewith as the Secured Party may deem appropriate; 
 (vii) to assign any patent right included in the Collateral of the Debtor (along with the goodwill of the business to which any such patent right pertains), throughout the world for such term or terms, on
such conditions, and in such manner, as the Secured Party shall in its sole discretion determine; and 
 (viii) generally, to
sell, transfer, pledge and make any agreement with respect to or otherwise deal with any of the Collateral and to take, at the Secured Party’s option and the Debtor’s expense, any actions which the Secured Party deems necessary to protect,
preserve or realize upon the Collateral and the Secured Party’s Liens on the Collateral and to carry out the intent of this Agreement, in each case to the same extent as if the Secured Party were the absolute owner of the Collateral for all
purposes. 
 The Debtor hereby ratifies whatever actions the Secured Party shall lawfully do or cause to be done in accordance
with this Section 4. This power of attorney shall be a power coupled with an interest and shall be irrevocable. 
 (c)
No Duty on the Secured Party’s Part. The powers conferred on the Secured Party by this Section 4 are solely to protect the Secured Party’s interests in the Collateral and shall not impose any duty upon it to exercise any
such powers. The Secured Party shall be accountable only for amounts that it actually receives as a result of the exercise of such powers, and neither the Secured Party nor any of its officers, directors, employees or agents shall be responsible to
the Debtor for any act or failure to act pursuant to this Section 4. 
 5. Performance by the Secured Party of the
Debtor’s Obligations. If the Debtor fails to perform or comply with any of its agreements or covenants contained in this Agreement and the Secured Party performs or complies, or otherwise causes performance or compliance, with such
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expenses of the Secured Party incurred in connection with such performance or compliance shall be payable by the Debtor to the Secured Party on demand and shall constitute Obligations secured by
this Agreement (and shall be considered Advances under the Promissory Note). 
 6. Remedies. If an Event of
Default has occurred and is continuing, the Secured Party may exercise, in addition to all other rights and remedies granted to it in this Agreement and in any other instrument or agreement relating to the Obligations, all rights and remedies of a
secured party under the UCC. Without limiting the foregoing, the Secured Party, without demand of performance or other demand, presentment, protest, advertisement or notice of any kind (except any notice required by law) to or upon the Debtor or any
other person (all of which demands, defenses, advertisements and notices are hereby waived), may in such circumstances collect, receive, appropriate and realize upon any or all of the Collateral, and/or may sell, lease, assign, give an option or
options to purchase, or otherwise dispose of and deliver any or all of the Collateral (or contract to do any of the foregoing), in one or more parcels at a public or private sale or sales, at any exchange, broker’s board or office of the
Secured Party or elsewhere upon such terms and conditions as the Secured Party may deem advisable, for cash or on credit or for future delivery without assumption of any credit risk. The Secured Party shall have the right upon any such public sale
or sales and, to the extent permitted by law, upon any such private sale or sales, to purchase all or any part of the Collateral so sold, free of any right or equity of redemption in the Debtor, which right or equity is hereby waived or released.
The Secured Party shall apply the net proceeds of any such collection, recovery, receipt, appropriation, realization or sale, after deducting all expenses incurred therein or in connection with the care or safekeeping of any of the Collateral or in
any way relating to the Collateral or the rights of the Secured Party under this Agreement (including, without limitation, attorneys’ fees and expenses) to the payment in whole or in part of the Obligations, in such order as the Secured Party
may elect, and only after such application and after the payment by the Secured Party of any other amount required by any provision of law, need the Secured Party account for the surplus, if any, to the Debtor. To the extent permitted by applicable
law, the Debtor waives all claims, damages and demands it may acquire against the Secured Party arising out of the exercise by the Secured Party of any of its rights hereunder. If any notice of a proposed sale or other disposition of Collateral
shall be required by law, such notice shall be deemed reasonable and proper if given at least ten (10) days before such sale or other disposition. The Debtor shall remain liable for any deficiency if the proceeds of any sale or other
disposition of the Collateral are insufficient to pay the Obligations and the fees and disbursements of any attorneys employed by the Secured Party to collect such deficiency. 
 7. Limitation on Duties Regarding Preservation of Collateral. The Secured Party’s sole duty with respect to the custody, safekeeping and preservation of the Collateral, under
Section 9207 of the UCC or otherwise, shall be to deal with it in the same manner as the Secured Party deals with similar property for its own account. Neither the Secured Party nor any of its directors, officers, employees or agents shall be
liable for failure to demand, collect or realize upon all or any part of the Collateral or for any delay in doing so or shall be under any obligation to sell or otherwise dispose of any Collateral upon the request of the Debtor or otherwise.

  
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 8. Powers Coupled with an Interest. All authorizations and agencies
contained in this Agreement with respect to the Collateral are irrevocable and are powers coupled with an interest. 
 9.
No Waiver; Cumulative Remedies. The Secured Party shall not by any act (except by a written instrument pursuant to Section 11(a) hereof), delay, indulgence, omission or otherwise be deemed to have waived any right or remedy
hereunder or to have acquiesced in any default under the Promissory Note or in any breach of any of the terms and conditions of this Agreement. No failure to exercise, nor any delay in exercising, on the part of the Secured Party, any right, power
or privilege hereunder shall operate as a waiver thereof. No single or partial exercise of any right, power or privilege hereunder shall preclude any other or further exercise thereof or the exercise of any other right, power or privilege. A waiver
by the Secured Party of any right or remedy under this Agreement on any one occasion shall not be construed as a bar to any right or remedy which the Secured Party would otherwise have on any subsequent occasion. The rights and remedies provided in
this Agreement are cumulative, may be exercised singly or concurrently and are not exclusive of any rights or remedies provided by law. 
 10. Termination of Security Interest. Upon satisfaction of the entirety of Debtor’s Obligations, the security interest granted herein shall terminate and all rights to the Collateral
shall revert to the Debtor. Upon any such termination, the Secured Party shall authenticate and deliver to the Debtor such documents as the Debtor may reasonably request to evidence such termination. 

11. Miscellaneous. 
 (a) Amendments and Waivers. Any term of this Agreement may be amended with the written consent of the parties or their respective successors and assigns. Any amendment or waiver effected in
accordance with this Section 11(a) shall be binding upon the parties and their respective successors and assigns. 
 (b)
Transfer; Successors and Assigns. The terms and conditions of this Agreement shall be binding upon the Debtor and its successors and assigns, as well as all persons who become bound as a debtor to this Agreement and inure to the
benefit of the Secured Party and its successors and assigns. Nothing in this Agreement, express or implied, is intended to confer upon any party other than the parties hereto or their respective successors and assigns any rights, remedies,
obligations or liabilities under or by reason of this Agreement, except as expressly provided in this Agreement. 
 (c)
Governing Law. This Agreement and all acts and transactions pursuant hereto and the rights and obligations of the parties hereto shall be governed, construed and interpreted in accordance with the laws of the State of Washington,
without giving effect to principles of conflicts of law. 
 (d) Counterparts. This Agreement may be executed in
two or more counterparts, each of which shall be deemed an original and all of which together shall constitute one instrument. 

  
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 (e) Titles and Subtitles. The titles and subtitles used in this Agreement
are used for convenience only and are not to be considered in construing or interpreting this Agreement. 
 (f)
Notices. Any notice required or permitted by this Agreement shall be in writing and shall be deemed sufficient upon receipt, when delivered personally or by courier, overnight delivery service or confirmed facsimile, or forty-eight
(48) hours after being deposited in the U.S. mail as certified or registered mail with postage prepaid, if such notice is addressed to the party to be notified at such party’s address or facsimile number as set forth below or as
subsequently modified by written notice. 
 (g) Payments Free of Taxes, Etc. All payments made by the Debtor under
this Agreement and the Promissory Note shall be made by the Debtor free and clear of and without deduction for any and all present and future taxes, levies, charges, deductions and withholdings. In addition, the Debtor shall pay upon demand any
stamp or other taxes, levies or charges of any jurisdiction with respect to the execution, delivery, registration, performance and enforcement of this Agreement. Upon request by the Secured Party, the Debtor shall furnish evidence satisfactory to
the Secured Party that all requisite authorizations and approvals by, and notices to and filings with, governmental authorities and regulatory bodies have been obtained and made and that all requisite taxes, levies and charges have been paid.

 (h) Severability. If one or more provisions of this Agreement are held to be unenforceable under applicable
law, the parties agree to renegotiate such provision in good faith, in order to maintain the economic position enjoyed by each party as close as possible to that under the provision rendered unenforceable. In the event that the parties cannot reach
a mutually agreeable and enforceable replacement for such provision, then (i) such provision shall be excluded from this Agreement, (ii) the balance of the Agreement shall be interpreted as if such provision were so excluded and
(iii) the balance of the Agreement shall be enforceable in accordance with its terms. 
 (i) Entire
Agreement. This Agreement, and the documents referred to herein constitute the entire agreement between the parties hereto pertaining to the subject matter hereof, and any and all other written or oral agreements existing between the parties
hereto concerning such subject matter are expressly canceled. 
 [Signature Page Follows] 

  
 -10-

 Execution Copy 
  

 The Debtor and the Secured Party have caused this Agreement to be duly executed and
delivered as of the date first above written. 
  

			
	DEBTOR:
	
	ACUCELA INC.
		
	By:	 	  

		
	Name:	 	  

		
	Title:	 	  

 

			
		
	Address:	 	21720 23rd Drive SE, Suite 120
		 	Bothell, WA 98021

 
			
		
	Facsimile Number:	 	  

 

			
	
	SECURED PARTY:
	
	OTSUKA PHARMACEUTICAL CO., LTD.
		
	By:	 	  

		
	Name:	 	  

		
	Title:	 	  

 

			
		
	Address:	 	  

		 	  

 

			
		
	Facsimile Number:	 	  

 Execution Copy 

EXHIBIT G 
 Press Release 
  
 

 
 For Immediate Release 
 Acucela and Otsuka Pharmaceutical Enter Co-Development Agreement for ACU-4429 in Dry Age Related Macular Degeneration 

 

			
	Contact:	  	
	For Otsuka Pharmaceutical Co., Ltd.	  	For Acucela Inc.
	Hideki Shirai	  	Sayuri Refsland
	Public Relations Department	  	Investor Relations
	siraih@otsuka.jp	  	+1-425-527-3272
		  	sayuri@acucela.com
		
		  	Kiera Kelly
		  	Media
		  	+1-773-975-3538
		  	kiera.kelly@k2-pr.com

 BOTHELL, WA and TOKYO, JAPAN (September 4, 2008) — Acucela Inc. and Otsuka Pharmaceutical
Co., Ltd. announced today that they have entered into a definitive agreement to co-develop Acucela’s lead compound ACU-4429 which is currently in Phase I clinical development for the dry form of age-related macular degeneration (AMD) in the
United States. 
 Under the agreement, the parties will co-develop ACU-4429 in dry AMD as well as other potential indications in
North America. Upon commercialization of ACU-4429, the parties may co-promote the product in North America and equally share all expenses and profits from sales of the product in North America. Acucela retains all rights to ACU-4429 in Europe, and
Otsuka owns the exclusive development and commercialization rights to the product in Asia and selected markets in the rest of the world. 
 Otsuka shall pay Acucela a $5 million cash upfront payment, and potential milestone payments totaling $258 million. In addition, Otsuka will fund all clinical development activities through Phase II
clinical testing. Beginning with Phase III clinical testing, the parties will share 

 Execution Copy 
  

 
equally in all future clinical development expenses. Otsuka will provide Acucela with a loan facility to enable it to fund its share of the development expenses through to launch of the product
in North America. 
 “We are pleased to be partnering with Acucela. Acucela’s proprietary drug discovery platform fits
well within our emerging ophthalmology franchise,” commented Taro Iwamoto, Ph.D., president and representative director of Otsuka Pharmaceutical Co., Ltd. “Dry AMD causes progressive deterioration of visual function including narrowed
vision and in many cases loss of eyesight, leading to severe impairment of one’s quality of life. At the current time there are no approved therapies for this debilitating disease that afflicts tens of millions of patients worldwide. We are
hopeful that Otsuka and Acucela will learn and work together, and to be successful in developing ACU-4429 as an efficacious treatment for dry AMD,” added Dr. Iwamoto. 

“Otsuka is an ideal partner for Acucela, as we believe that their strong international presence and commercialization expertise will
enable us to maximize the product development opportunity that lies ahead of us for ACU-4429,” commented Ryo Kubota, M.D., Ph.D., chief executive office of Acucela. “The prevalence of dry AMD is expected to double in the next 20 years with
the increase in the aging population, and given that there is no effective or approved treatment for this disease, we believe that ACU-4429 has the potential to play a prominent role in the treatment of patients with dry AMD,” added
Dr. Kubota. 
 Acucela was advised in the transaction by Posada & Associates, Inc, with Wilson, Sonsini, Goodrich
and Rosati providing legal counsel to the company. 
 About ACU-4429 

ACU-4429 is small molecule non-retinoid visual cycle modulator. The compound is expected to slow the regeneration of 11-cis-retinal in the
retina, and has been demonstrated to have beneficial effect in several preclinical models of retinal degeneration by stopping the accumulation of retinoid-related toxic byproducts including A2E. A2E is known for its toxicity to retinal cells and
activates complement factor, which is also believed to play a significant role in the pathogenesis of AMD. 
 About Dry Age-Related
Macular Degeneration 
 AMD afflicts over 20 million people worldwide and is segmented into “dry” and
“wet” forms of the disease. Dry AMD accounts for approximately 90 percent of the total AMD population, and unlike wet AMD, there are no approved therapies for the disease, which is currently the leading cause of vision loss in people over
50 in the United States. 
 About Otsuka Pharmaceutical Co., Ltd. 
 Founded in 1964, Otsuka Pharmaceutical Co., Ltd. is a global healthcare company with the corporate philosophy: ‘Otsuka-people creating new products for better health worldwide.’ Otsuka
researches, develops, manufactures and markets innovative and original products, with a focus on pharmaceutical products for the treatment of diseases and consumer products for the 

 Execution Copy 
  

 
maintenance of everyday health. Otsuka is committed to being a corporation that creates global value, adhering to the high ethical standards required of a company involved in human health and
life, maintaining a dynamic corporate culture, and working in harmony with local communities and the natural environment. The Otsuka Pharmaceutical Group comprises 106 companies and employs approximately 33,000 people in 18 countries and regions
worldwide. Otsuka and its consolidated subsidiaries earned ¥928.4 billion (approx. US $9.2 billion*) in annual revenue in fiscal year ended in March 2008. 
 For more information on Otsuka please visit the company’s web site at www.otsuka-global.com 
  

	*	Exchange rate as of the end of March 2008. 

About Acucela 

Acucela is a private biotechnology company focused on discovering treatments for blinding eye diseases. Acucela has developed proprietary
screens for discovering small molecules which have potential applications in several different ophthalmologic disorders such as dry AMD, diabetic retinopathy, and Stargardt disease. Through its proprietary approach and medicinal chemistry team
Acucela has discovered a portfolio of small molecules which are orally available and show promise in various preclinical models of major blinding eye diseases. For more information on Acucela please visit the company’s web site at
www.acucela.com. 
 ### 

 SUPPLEMENTAL AGREEMENT NO.1 

TO CO-DEVELOPMENT AND COMMERCIALIZATION AGREEMENT 
 This Supplemental Agreement No. 1 to Co-Development and Commercialization Agreement (the “Supplement No. 1”) is intended to supplement and be read together with that
certain agreement titled the Co-Development and Commercialization Agreement by and between Acucela Inc. (“Acucela”) and Otsuka Pharmaceutical Co., Ltd. (“Otsuka”) of September 4, 2008
(the “Agreement”). This Supplement No. 1 is incorporated herein to the Agreement by this reference. 
 Acucela has
entered into that certain Research Study Agreement with Vanderbilt University dated as of July 26, 2011 (the “Vanderbilt Agreement”) and that certain Research Agreement with Northwestern University dated as of
September 23, 2011 (the “Northwestern Agreement”) 
 Acucela has the right to review and comment any proposed publication,
presentation or manuscript (the “Proposed Publication”) pursuant to Section 6 of the Vanderbilt Agreement or Section 6 of the Northwestern Agreement, as applicable. 
 Given that both the Vanderbilt Agreement and the Northwestern Agreement are related to Acucela compound known as “ACU-4429” which is the lead compound for the collaborative activities between
Acucela and Otsuka under the Agreement, the parties hereby agrees: 
  

	1.	In the event Acucela receives any Proposed Publication from Vanderbilt University or Northwestern University, Acucela shall promptly provide Otsuka with the Proposed
Publication for review and comment. Otsuka shall have [thirty (30) days] within which to review and comment to the Proposed Publication. 

  

	2.	Within [thirty (30) days] after Acucela receives any comments from Otsuka during that review period, the parties shall discuss in good faith and agree on the
content of comments Acucela shall provide to Vanderbilt University or Northwestern University, as applicable. 

  

	3.	Acucela may not provide any comment to the Proposed Publication to Vanderbilt University or Northwestern University, as applicable, unless and until Acucela obtains
Otsuka’s agreement on such comment. 

  
 1 

 Otsuka and Acucela concur with the above and Acucela authorizes Otsuka, and Otsuka agrees, to begin this
Supplement No. 1, each by signing in the space provided below. 
  

									
	ACUCELA INC.	 		 	OTSUKA PHARMACEUTICAL CO., LTD.
					
	By:	 	 /s/ David L. Lowrance
	 		 	By	 	 /s/ Yoshiko Wakana

			
	 David L. Lowrance
	 		 	 Yoshiko Wakana

			
	Name	 		 	Name
			
		 		 	 Operating Officer, General Manager

	 CFO
	 		 	 Division of Dermatological & Opthalmologicals

					
	Title	 		 		 	Title	 	
			
	 11-11-11
	 		 	 10 November, 2011

					
	Date	 		 		 	Date	 	

  
 2 

 SUPPLEMENTAL AGREEMENT NO.2 

TO CO-DEVELOPMENT AND COMMERCIALIZATION AGREEMENT 
 This Supplemental Agreement No. 2 to Co-Development and Commercialization Agreement (the “Supplement No. 2”) is intended to supplement and be read together with that
certain agreement titled the Co-Development and Commercialization Agreement by and between Acucela Inc. (“Acucela”) and Otsuka Pharmaceutical Co., Ltd. (“Otsuka”) of September 4, 2008
(the “Agreement”). This Supplement No. 2 is incorporated herein to the Agreement by this reference. 
 Acucela
intends to enter into that certain Sponsored Research Agreement with Duke University related to Study ACU-4429-202 (the “Duke Agreement”); 
 Acucela provided the publication clause from the Duke Agreement to Otsuka for review and approval prior to execution. Otsuka provided Acucela with written approval for the publication clause in the Duke
Agreement on January 5, 2012; 
 Acucela has the right to review and comment any proposed publication, presentation or manuscript (the
“Proposed Publication”) pursuant to Section 10 of the Duke Agreement. 
 Given that the Duke Agreement is related to
Acucela compound known as “ACU-4429” which is the lead compound for the collaborative activities between Acucela and Otsuka under the Agreement, the parties hereby agrees: 

 

	1.	In the event Acucela receives any Proposed Publication from Duke University, Acucela shall promptly provide Otsuka with the Proposed Publication for review and comment.
Otsuka shall have fourteen (14) days within which to review and comment to the Proposed Publication. 

  

	2.	Within fourteen (14) days after Accuela receives any comments from Otsuka during that review period, the parties shall discuss in good faith and agree on the
content of comments Acucela shall provide to Duke University. 

  

	3.	Acucela may not provide any comment to the Proposed Publication to Duke University, unless and until Acucela obtains Otsuka’s agreement on such comment.

  
 1 

 Otsuka and Acucela concur with the above and Acucela authorizes Otsuka, and Otsuka agrees, to begin this
Supplement No. 2, each by signing in the space provided below. 
  

									
	ACUCELA INC.	 		 	OTSUKA PHARMACEUTICAL CO., LTD.
					
	By:	 	 /s/ David L. Lowrance
	 		 	By	 	 /s/ Yoshiko Wakana

			
	 David L. Lowrance
	 		 	 Yoshiko Wakana

			
	Name	 		 	Name
			
	 Chief Financial Officer
	 		 	 General Manager & Operating Officer

	 		 	 Division of Dermatologicals & Opthalmologicals

			
	Title	 		 	Title
			
	 1/30/12
	 		 	 2/2/2012

			
	Date	 		 	Date

  
 2 

 AMENDMENT AGREEMENT 
 This AMENDMENT AGREEMENT (the “Amendment Agreement”) is made and entered into as of December 12, 2012 (the “Effective
Date”) by and between OTSUKA PHARMACEUTICAL CO., LTD., a Japanese corporation having its principal place of business at 2-16-4 Konan, Minato-ku, Tokyo 108-8241, Japan
(“Otsuka”) and ACUCELA INC., a Washington corporation having its principal place of business at 1301 Second Ave, Suite 1900, Seattle, Washington 98101-3805, USA (“Acucela”).
Otsuka and Acucela are individually referred to as a “Party” and collectively referred to as the “Parties”. 
 RECITALS 
 A. The Parties have entered into that certain CO-DEVELOPMENT AGREEMENT dated
September 4, 2008 relating to Rebamipide (“Co-Development Agreement”), that certain CO-DEVELOPMENT AND COMMERCIALIZATION AGREEMENT dated September 4, 2008 relating to ACU-4429 (“4429 Agreement”) and that
certain DEVELOPMENT AND COLLABORATION AGREEMENT dated September 15, 2010 relating to OPA-6566 (“6566 Agreement”). The Co-Development Agreement, the 4429 Agreement and the 6566 Agreement are collectively referred to as the
“Acucela Collaboration Agreements and individually referred to as “Acucela Collaboration Agreement.” 
 B. The Parties desire to clarify development costs to be borne by the Parties under the Acucela Collaboration Agreements. 
 NOW, THEREFORE, the Parties agree as follows: 
 1. Definitions. 

(a) For the purposes of this Amendment Agreement, 
 “Direct FTE” means FTEs of Acucela who directly conduct one or more Ongoing Collaborations; 
 “Indirect FTE” means FTEs of Acucela who indirectly support performance of one or more Ongoing Collaborations; and 

“Ongoing Collaborations” means the ongoing three collaborations pursuant to the Acucela Collaboration Agreements, i.e.,
development of Rebamipide pursuant to the Co Development Agreement, development of ACU-4429 pursuant to the 4429 Agreement and development of OPA-6566 pursuant to the 6566 Agreement. 

(b) Capitalized terms used in this Amendment Agreement and not otherwise defined herein shall have the meanings as set forth in each
Acucela Collaboration Agreement. 

  
 1 

 2. Indirect FTE. 
 (a) The rate for Indirect FTEs which shall commonly apply to each Acucela Collaboration Agreement (the “Indirect FTE Rate”) shall be (i) *, which amount shall be adjusted on * and
upon every anniversary thereafter by the percentage increase, if any, in the Consumer Price Index for Urban Consumers for the West Region, All Items, as published by the U.S. Department of Labor, Bureau of Statistics, for the period since the last
adjustment., plus (ii) a markup of * unless otherwise agreed by the Parties. The Parties agree to meet annually to review the markup percentage for appropriateness. 
 (b) The aggregate number of Indirect FTEs for all Ongoing Collaborations shall not exceed * per year. If any Ongoing Collaboration is completed, terminated or a new collaboration agreement is executed,
the Parties shall meet with a view to discussing any necessary adjustment of the foregoing cap. 
 (c) In calculating Indirect
FTEs, any person who indirectly supports performance of one or more Ongoing Collaborations shall be treated as one FTE. Acucela shall not be required to submit to Otsuka information regarding the number of hours spent by any person categorized into
Indirect FTEs. 
 (d) The Indirect FTEs shall not be calculated an Ongoing Collaboration-by-Ongoing Collaboration basis but
shall be calculated on an accumulated basis of all Ongoing Collaborations. 
 (e) The Indirect FTEs shall cover the costs
associated with the work of Acucela personnel who indirectly support performance of Ongoing Collaborations. Accordingly, Otsuka shall not be required to pay Acucela any additional costs for such personnel, unless otherwise agreed by the Parties.

 (f) Allocation of Indirect FTEs among the Ongoing Collaborations shall be determined in proportion to the number of Direct
FTEs actually spent for each Ongoing Collaboration. 
 3. Direct FTE and Indirect FTE. The Parties shall categorize each cost item into
Direct FTE or Indirect FTE through mutual consultation in good faith, which consultation shall take place when they discuss and agree upon the annual budget of development costs for the following year. If Acucela incurs any additional cost item
which is not included in the agreed-upon annual budget, the Parties shall meet with a view to discussing how to treat such additional cost item. For the avoidance of doubt, Direct FTEs shall be calculated in accordance with applicable
“FTE” and “FTE Rate” as such terms are defined in each Acucela Collaboration Agreement. 
 4. Confidentiality. The
existence or terms of this Amendment Agreement shall be deemed Confidential Information of the Parties under the Acucela Collaboration Agreements. 

  

	*	Confidential Treatment Requested. 

  
 2 

 5. Representations and Warranties. Each Party hereby represents and warrants to the other that it has
the corporate power and authority to enter into this Amendment Agreement and this Amendment Agreement constitutes a legal, valid and binding obligation, enforceable against such party in accordance with its terms. 

6. No Other Change. Except as expressly set forth in this Amendment Agreement, all other terms of the Acucela Collaboration Agreements shall
remain in full force and effect and once this Amendment Agreement is executed by the Parties, all references in each Acucela Collaboration Agreement to “the Agreement” or “this Agreement,” as applicable, shall refer to the
Acucela Collaboration Agreement, as modified by this Amendment Agreement. 
 7. Effective Date. Except for Sections 1, 2 and 3 which
shall become effective on January 1, 2013, this Amendment Agreement shall become effective on the Effective Date. 
 8. Governing
Law. This Amendment Agreement shall be governed by and interpreted under the laws of the State of New York, excluding its conflicts of laws principles. 
 9. Successors and Assigns. This Amendment Agreement will apply to, be binding in all respects upon, and inure to the benefit of the successors and permitted assigns of the Parties. 

10. Counterparts. This Amendment Agreement may be executed in two counterparts, each of which counterparts, when so executed and delivered, shall
be deemed to be an original, and both of which counterparts, taken together, shall constitute one and the same instrument even if both Parties have not executed the same counterpart. Signatures provided by facsimile or similar electronic
transmission shall be deemed to be original signatures. 
 [Signature page follows] 

  
 3 

 IN WITNESS WHEREOF, the Parties have caused this Amendment Agreement to be executed and delivered by
their respective duly authorized officers as of the Effective Date. 
  

									
	OTSUKA PHARMACEUTICAL CO., LTD.	 		 	ACUCELA INC.
					
	By:	 	 /s/ Yoshiko Wakana
	 		 	By:	 	 /s/ David L. Lowrance

					
	Name:	 	 Yoshiko Wakana
	 		 	Name:	 	 David L. Lowrance

					
	Title:	 	 Operating Officer
	 		 	Title:	 	 CFO

  
 4 

 AMENDMENT TO 
 CO-DEVELOPMENT AND COMMERCIALIZATION AGREEMENT 
 THIS AMENDMENT TO
CO-DEVELOPMENT AND COMMERCIALIZATION AGREEMENT (this “Amendment”) is effective as of February 22, 2013 and amends that certain Co-Development and Commercialization Agreement, dated as of September 4, 2008 (the
“Agreement”), by and between Acucela Inc. (“Acucela”) and Otsuka Pharmaceutical Co., Ltd. (“Otsuka”). 
 RECITALS 
 WHEREAS, pursuant to the Agreement, Acucela has granted licenses
to Otsuka under Acucela IP to Develop, Commercialize and Manufacture Collaboration Compounds and Collaboration Products (as such capitalized terms are defined in the Agreement); 

WHEREAS, “Acucela IP” is defined in the Agreement as including “Know-How” that is “Controlled” by Acucela
during the term of the Agreement and is necessary or useful to Develop, Manufacture or Commercialize Potential Collaboration Compounds or Potential Collaboration Products (as such capitalized terms are defined in the Agreement); 

WHEREAS, pursuant to an Asset Purchase Agreement (“APA”) between Acucela and ReVision Therapeutics, Inc.
(“ReVision”) dated as of May 30, 2012, Acucela acquired all right, title and interest in and to all of ReVision’s assets relating to its drug development program for Fenretinide, including “all non-clinical and
clinical data and information relating to” Fenretinide and all “Intellectual Property” (as defined in the APA) related to Fenretinide; and 
 WHEREAS, Otsuka and Acucela desire to amend the Agreement to clarify Otsuka’s right to review and use the Fenretinide know-how, data and other Intellectual Property (as defined in the APA) acquired
by Acucela under the APA, and to provide for Otsuka’s sharing of costs incurred in connection with Acucela’s acquisition of the Fenretinide assets and the Patent Expenses related to the preparation, filing, prosecution and maintenance of
Patent Rights included in the Fenretinide assets acquired in the APA (such Patent Expenses, the “Fenretinide Patent Expenses”). 
 NOW, THEREFORE, in consideration of the foregoing, the parties hereto hereby agree as follows: 
 1.Acucela and Otsuka hereby acknowledge and agree that all non-clinical and clinical data and information relating to Fenretinide (including all files from the * study, the Investigators Brochure,
Protocols and Amendments and Clinical Safety Report — *) and all Intellectual Property (as defined in the APA) related to Fenretinide (including trade secrets, know how, and other proprietary rights and information, as well as, all things
authored, discovered, developed, made, perfected, improved designed, engineered, acquired, produced, conceived or first reduced to practice, in any stage of development, including without limitation, modifications, enhancements, designs, concepts,
techniques, methods, ideas, inventor’s notes and all other information not generally known) (collectively, the “Fenretinide Information”) 

  

	*	Confidential Treatment Requested. 

  
 1 

 
constitute “Know-How” (as defined in the Agreement) that is Controlled by Acucela (as “Controlled” is defined in the Agreement) and is necessary or useful to Develop,
Manufacture or Commercialize Potential Collaboration Compounds or Potential Collaboration Products (as defined in the Agreement). As such, the Fenretinide Information is included in the Acucela IP licensed to Otsuka pursuant to the Agreement. All
references throughout the Agreement to “Acucela IP” or “Acucela Know-How” shall include the Fenretinide Information. 
 2. Notwithstanding anything to the contrary in the Agreement (including, without limitation, Section 9.7.3 of the Agreement), Otsuka shall have full access to, and the right to review and use, the
Fenretinide Information in connection with its exercise of the licenses and rights granted under Section 9.1 and Section 9.3 of the Agreement, including, without limitation, to Develop, Commercialize and Manufacture Collaboration Compounds
and Collaboration Products as provided in Section 9.1 of the Agreement. Promptly following the date of this Amendment, Acucela shall make available to Otsuka all Fenretinide Information that is necessary or useful for Otsuka to Develop (but
excluding Discovery Research), Manufacture and Commercialize Collaboration Compounds and Collaboration Products within the Field in the Shared Territory or in the Otsuka Territory. 

3. In consideration of the foregoing, Otsuka shall pay to Acucela the sum of *. Otsuka shall pay to Acucela * within fourteen
(14) days after execution of this Amendment. In addition, subsequent to the execution of this Amendment, Otsuka and Acucela shall share and bear all Fenretinide Patent Expenses in accordance with the relevant provisions of the Agreement,
including but not limited to Sections 6.4.1(a), 6.5.1, 6.6 and 10.2.3 of the Agreement. Otsuka and Acucela agree and acknowledge that the ownership of any new Patent Rights related to Fenretinide Information filed subsequent to the date of this
Amendment shall be determined in accordance with Section 10.1 of the Agreement. Furthermore, Otsuka and Acucela agree and acknowledge that any Patent Rights included in Fenretinide Information acquired in the APA shall be deemed Sole Patent
Right of Acucela. 
 4. Otsuka and Acucela hereby acknowledge and agree that, to the extent the Fenretinide Information is
confidential and proprietary, it shall be the Confidential Information of Acucela, and its use and disclosure shall be subject to the terms of Article 14 of the Agreement. 
 5. Capitalized terms used in this Amendment but not otherwise defined herein or in the APA shall have the meanings set forth in the Agreement. 

6.Each party hereby represents and warrants to the other that it has the corporate power and authority to enter into this Amendment and
this Amendment constitutes a legal, valid’ and binding obligation, enforceable against such party in accordance with its terms. 
 7. Except as expressly set forth in this Amendment, all other terms of the Agreement shall remain in full force and effect and once this Amendment is executed by the parties hereto, all references in the
Agreement to “the Agreement” or “this Agreement,” as applicable, shall refer to the Agreement, as modified by this Amendment. 

  

	*	Confidential Treatment Requested. 

  
 2 

 8. This Amendment shall be governed by and interpreted under the laws of the State of New
York, excluding its conflicts of laws principles. 
 9. This Amendment will apply to, be binding in all respects upon, and inure
to the benefit of the successors and permitted assigns of the parties. 
 10. This Amendment may be executed in two
counterparts, each of which counterparts, when so executed and delivered, shall be deemed to be an original, and both of which counterparts, taken together, shall constitute one and the same instrument even if both parties have not executed the same
counterpart. Signatures provided by facsimile or similar electronic transmission shall be deemed to be original signatures. 

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

 

									
	ACUCELA INC.	 		 	OTSUKA PHARMACEUTICAL CO., LTD.
					
	By:	 	 /s/ David L. Lowrance
	 		 	By:	 	 /s/ Yoshiko Wakana

	Name:	 	 David L. Lowrance
	 		 	Name:	 	 Yoshiko Wakana

	Title:	 	 CFO
	 		 	Title:	 	 Operating Officer

  
 3 

 AMENDMENT NO. 2 TO 

CO-DEVELOPMENT AND COMMERCIALIZATION AGREEMENT 
 This Amendment No. 2 to Co-Development and Commercialization Agreement (this “Amendment No. 2”) is entered into on February 28, 2013 (the “Effective Date”)
between Acucela Inc. (“Acucela”) and Otsuka Pharmaceutical Co., Ltd. (“Otsuka”) 

RECITALS 
  

	A.	Acucela and Otsuka have entered into that certain Co-Development and Commercialization Agreement dated. September 4, 2008 as amended by that certain Amendment to
Co-Development and Commercialization Agreement dated as of February 22, 2013 (collectively, the “4429 Agreement”). 

  

	B.	The parties plan to commence a phase IIb/III clinical trial for Acucela’s lead compound known as “ACU-4429,” which could potentially be a pivotal trial
for obtaining NDA approval in the United States depending upon the result of such trial. 

 Therefore, the parties agree to split
the first Milestone payment set forth in Section 6.2.1 of the 4429 Agreement whereby Otsuka shall pay to Acucela the first Milestone payment as follows: 
  

	1.	Capitalized terms used in this Amendment No. 2 but not otherwise defined herein shall have the meanings set forth in the 4429 Agreement. 

 

	2.	Notwithstanding Section 6.2.1 of the 4429 Agreement, Otsuka shall pay to Acucela the first Milestone payment of $10,000,000 as follows: 

 

					
	 Milestone Event
	  	Milestone Payment Amount	 
		
	 Initiation of a phase IIb/III clinical trial of a Collaboration Product in the Field in the United States, which clinical trial
is currently planned by the parties.
	  	$	5,000,000	  
		
	 Initiation of a Phase III Clinical Trial of a Collaboration Product in the Field in the United States (or Filing of an NDA for a
Collaboration Product in the Field with the FDA in the United States if, after the above-mentioned phase IIb/III clinical trial, no additional Phase III Clinical Trial is conducted until the NDA filing)
	  	$	5,000,000	  

  

	3.	For the avoidance of doubt, the above split Milestone payment shall each be paid by Otsuka to Acucela following the first achievement by Acucela or any of its
Affiliates of the corresponding Milestone event set forth above with respect to the Initial Indication. 

  
 1 

	4.	Except as expressly set forth in this Amendment No. 2, all other terms of the 4429 Agreement shall remain in full force and effect. 

IN WITNESS WHEREOF, the parties hereto have executed and delivered this Amendment No. 2 as of the Effective Date. 

 

									
	ACUCELA INC.	 		 	OTSUKA PHARMACEUTICAL CO., LTD.
					
	By:	 	 /s/ David L. Lowrance
	 		 	By:	 	 /s/ Yoshiko Wakana

					
	Name:	 	 David L. Lowrance
	 		 	Name:	 	 Yoshiko Wakana

					
	Title:	 	 CFO
	 		 	Title:	 	 General Manager & Operating Officer

  
 2

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