Document:

2012 Equity Incentive Plan

 Exhibit 10.03 
 ACUCELA INC. 
 2012 EQUITY INCENTIVE PLAN 

As Adopted on September 5, 2012 
 1. PURPOSE. The purpose of this Plan is to provide incentives to attract, retain and motivate eligible persons whose present and potential contributions are important to the
success of the Company, its Parent and Subsidiaries by offering eligible persons an opportunity to participate in the Company’s future performance through the grant of Awards covering Shares. Capitalized terms not defined in the text are
defined in Section 14 hereof. Although this Plan is intended to be a written compensatory benefit plan within the meaning of Rule 701, grants may be made pursuant to this Plan that do not qualify for exemption under Rule 701 or
Section 25102(o). Any requirement of this Plan that is required in law only because of Section 25102(o) need not apply if the Committee so provides. 
 2. SHARES SUBJECT TO THE PLAN. 
 2.1 Number of Shares
Available. Subject to Sections 2.2 and 11 hereof, the total number of Shares reserved and available for grant and issuance pursuant to this Plan will be 1,284,057 Shares plus (i) any reserved shares not issued or subject to
outstanding grants under the Company’s 2002 Stock Option and Restricted Stock Plan (the “Prior Plan”) on the Effective Date (as defined below), (ii) shares that are subject to stock options or other awards granted
under the Prior Plan that cease to be subject to such stock options or other awards by forfeiture or otherwise after the Effective Date, (iii) shares issued under the Prior Plan before or after the Effective Date pursuant to the exercise of
stock options that are, after the Effective Date, forfeited, (iv) shares issued under the Prior Plan that are repurchased by the Company at the original issue price and (v) shares that are subject to stock options or other awards under the
Prior Plan that are used to pay the exercise price of an option or to satisfy the tax withholding obligations related to any award. Subject to Sections 2.2 and 11 hereof, Shares subject to Awards that are cancelled, forfeited, settled in cash or
that expire by their terms at any time will again be available for grant and issuance in connection with other Awards. In the event that Shares previously issued under the Plan are reacquired by the Company pursuant to a forfeiture provision, right
of repurchase or right of first refusal, such Shares shall be added to the number of Shares then available for issuance under the Plan. At all times the Company will reserve and keep available a sufficient number of Shares as will be required to
satisfy the requirements of all Awards granted and outstanding under this Plan. In no event shall the total number of Shares issued (counting each reissuance of a Share that was previously issued and then forfeited or repurchased by the Company as a
separate issuance) under the Plan upon exercise of ISOs exceed 20,655,200 Shares (adjusted in proportion to any adjustments under Section 2.2 hereof) over the term of the Plan (the “ISO Limit”). Subject to Sections 2.2
and 11 hereof, in the event that the number of Shares reserved for issuance under the Plan is increased, the ISO Limit shall be automatically increased by such number of Shares such that the ISO Limit equals (a) ten (10) multiplied by
(b) the number of Shares reserved for issuance under the Plan. 
 2.2 Adjustment of Shares. In the event that
the number of outstanding shares of the Company’s Common Stock is changed by a stock dividend, recapitalization, stock split, reverse stock split, subdivision, combination, reclassification or similar change in the capital structure of the
Company without consideration, then (a) the number of Shares reserved for issuance under this Plan, (b) the Exercise Prices of and number of Shares subject to outstanding Options and SARS, and (c) the Purchase Prices of and/or number
of Shares subject to other outstanding Awards will be proportionately adjusted, subject to any required action by the Board or the shareholders of the Company and compliance with applicable securities laws; provided,
however, that fractions of a Share will not be issued but will either be paid in cash at the Fair Market Value of such fraction of a Share or will be rounded down to the nearest whole Share, as determined by the Committee. 

  
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 3. PLAN FOR BENEFIT OF SERVICE PROVIDERS. 

3.1 Eligibility. The Committee will have the authority to select persons to receive Awards. ISOs (as defined in
Section 4 hereof) may be granted only to employees (including officers and directors who are also employees) of the Company or of a Parent or Subsidiary of the Company. NQSOs (as defined in Section 4 hereof) and all other types of Awards
may be granted to employees, officers, directors and consultants of the Company or any Parent or Subsidiary of the Company; provided such consultants render bona fide services not in connection with the offer and sale of securities in
a capital-raising transaction when Rule 701 is to apply to the Award granted for such services. A person may be granted more than one Award under this Plan. 
 3.2 No Obligation to Employ. Nothing in this Plan or any Award granted under this Plan will confer or be deemed to confer on any Participant any right to continue in the employ of, or to
continue any other relationship with, the Company or any Parent or Subsidiary or limit in any way the right of the Company or any Parent or Subsidiary to terminate Participant’s employment or other relationship at any time, with or without
Cause. 
 4. OPTIONS. The Committee may grant Options to eligible persons described in Section 3
hereof and will determine whether such Options will be Incentive Stock Options within the meaning of the Code (“ISOs”) or Nonqualified Stock Options (“NQSOs”), the number of Shares subject to the
Option, the Exercise Price of the Option, the period during which the Option may be exercised, and all other terms and conditions of the Option, subject to the following. 
 4.1 Form of Option Grant. Each Option granted under this Plan will be evidenced by an Award Agreement which will expressly identify the Option as an ISO or an NQSO (“Stock Option
Agreement”), and will be in such form and contain such provisions (which need not be the same for each Participant) as the Committee may from time to time approve, and which will comply with and be subject to the terms and conditions of
this Plan. 
 4.2 Date of Grant. The date of grant of an Option will be the date on which the Committee makes the
determination to grant such Option, unless a later date is otherwise specified by the Committee. The Stock Option Agreement and a copy of this Plan will be delivered to the Participant within a reasonable time after the granting of the Option.

 4.3 Exercise Period. Options may be exercisable immediately but subject to repurchase pursuant to
Section 10 hereof or may be exercisable within the times or upon the events determined by the Committee as set forth in the Stock Option Agreement governing such Option; provided, however, that (a) no Option
will be exercisable after the expiration of ten (10) years from the date the Option is granted; and (b) no ISO granted to a person who directly or by attribution owns more than ten percent (10%) of the total combined voting power of
all classes of stock of the Company or of any Parent or Subsidiary (“Ten Percent Shareholder”) will be exercisable after the expiration of five (5) years from the date the ISO is granted. The Committee also may provide
for Options to become exercisable at one time or from time to time, periodically or otherwise, in such number of Shares or percentage of Shares as the Committee determines. 
 4.4 Exercise Price. The Exercise Price of an Option will be determined by the Committee when the Option is granted and shall not be less than the Fair Market Value per Share unless expressly
determined in writing by the Committee on the Option’s date of grant; provided that the 

  
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Exercise Price of an ISO granted to a Ten Percent Shareholder will not be less than one hundred ten percent (110%) of the Fair Market Value of the Shares on the date of grant. Payment for
the Shares purchased must be made in accordance with Section 8 hereof. 
 4.5 Method of Exercise. Options may
be exercised only by delivery to the Company of a written stock option exercise agreement (the “Exercise Agreement”) in a form approved by the Committee (which need not be the same for each Participant). The Exercise
Agreement will state (a) the number of Shares being purchased, (b) the restrictions imposed on the Shares purchased under such Exercise Agreement, if any, and (c) such representations and agreements regarding Participant’s
investment intent and access to information and other matters, if any, as may be required or desirable by the Company to comply with applicable securities laws. Each Participant’s Exercise Agreement may be modified by (i) agreement of
Participant and the Company or (ii) substitution by the Company, upon becoming a public company, in order to add the payment terms set forth in Section 8.1 that apply to a public company and such other terms as shall be necessary or
advisable in order to exercise a public company option. Upon exercise of an Option, Participant shall execute and deliver to the Company the Exercise Agreement then in effect, together with payment in full of the Exercise Price for the number of
Shares being purchased and payment of any applicable taxes. 
 4.6 Termination. Subject to earlier termination
pursuant to Sections 11 and 13.1 hereof and notwithstanding the exercise periods set forth in the Stock Option Agreement, exercise of an Option will always be subject to the following terms and conditions. 

4.6.1 Other than Death or Disability or for Cause. If the Participant is Terminated for any reason other than death, Disability
or for Cause, then the Participant may exercise such Participant’s Options only to the extent that such Options are exercisable as to Vested Shares upon the Termination Date or as otherwise determined by the Committee. Such Options must be
exercised by the Participant, if at all, as to all or some of the Vested Shares calculated as of the Termination Date or such other date determined by the Committee, within three (3) months after the Termination Date (or within such shorter
time period, not less than thirty (30) days, or within such longer time period after the Termination Date as may be determined by the Committee, with any exercise beyond three (3) months after the Termination Date deemed to be an NQSO) but
in any event, no later than the expiration date of the Options. 
 4.6.2 Death or Disability. If the Participant is
Terminated because of Participant’s death or Disability (or the Participant dies within three (3) months after a Termination other than for Cause), then Participant’s Options may be exercised only to the extent that such Options are
exercisable as to Vested Shares by Participant on the Termination Date or as otherwise determined by the Committee. Such options must be exercised by Participant (or Participant’s legal representative or authorized assignee), if at all, as to
all or some of the Vested Shares calculated as of the Termination Date or such other date determined by the Committee, within twelve (12) months after the Termination Date (or within such shorter time period, not less than six (6) months,
or within such longer time period, after the Termination Date as may be determined by the Committee, with any exercise beyond (a) three (3) months after the Termination Date when the Termination is for any reason other than the
Participant’s death or disability, within the meaning of Section 22(e)(3) of the Code, or (b) twelve (12) months after the Termination Date when the Termination is for Participant’s disability, within the meaning of
Section 22(e)(3) of the Code, deemed to be an NQSO) but in any event no later than the expiration date of the Options. 

  
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 4.6.3 For Cause. If the Participant is terminated for Cause, the Participant may
exercise such Participant’s Options, but not to an extent greater than such Options are exercisable as to Vested Shares upon the Termination Date and Participant’s Options shall expire on such Participant’s Termination Date, or at
such later time and on such conditions as are determined by the Committee. 
 4.7 Limitations on Exercise. The
Committee may specify a reasonable minimum number of Shares that may be purchased on any exercise of an Option, provided that such minimum number will not prevent Participant from exercising the Option for the full number of Shares for
which it is then exercisable. 
 4.8 Limitations on ISOs. The aggregate Fair Market Value (determined as of the
date of grant) of Shares with respect to which ISOs are exercisable for the first time by a Participant during any calendar year (under this Plan or under any other incentive stock option plan of the Company or any Parent or Subsidiary of the
Company) will not exceed One Hundred Thousand Dollars ($100,000). If the Fair Market Value of Shares on the date of grant with respect to which ISOs are exercisable for the first time by a Participant during any calendar year exceeds One Hundred
Thousand Dollars ($100,000), then the Options for the first One Hundred Thousand Dollars ($100,000) worth of Shares to become exercisable in such calendar year will be ISOs and the Options for the amount in excess of One Hundred Thousand Dollars
($100,000) that become exercisable in that calendar year will be NQSOs. In the event that the Code or the regulations promulgated thereunder are amended after the Effective Date (as defined in Section 13.1 hereof) to provide for a different
limit on the Fair Market Value of Shares permitted to be subject to ISOs, then such different limit will be automatically incorporated herein and will apply to any Options granted after the effective date of such amendment. 

4.9 Modification, Extension or Renewal. The Committee may modify, extend or renew outstanding Options and authorize the
grant of new Options in substitution therefor, provided that any such action may not, without the written consent of a Participant, impair any of such Participant’s rights under any Option previously granted. Any outstanding ISO
that is modified, extended, renewed or otherwise altered will be treated in accordance with Section 424(h) of the Code. Subject to Section 4.10 hereof, the Committee may reduce the Exercise Price of outstanding Options without the consent
of Participants by a written notice to them; provided, however, that the Exercise Price may not be reduced below the minimum Exercise Price that would be permitted under Section 4.4 hereof for Options granted on the
date the action is taken to reduce the Exercise Price; provided, further, that the Exercise Price will not be reduced below the par value of the Shares, if any. 

4.10 No Disqualification. Notwithstanding any other provision in this Plan, no term of this Plan relating to ISOs will be
interpreted, amended or altered, nor will any discretion or authority granted under this Plan be exercised, so as to disqualify this Plan under Section 422 of the Code or, without the consent of the Participant, to disqualify any
Participant’s ISO under Section 422 of the Code. 
 4.11 Information to Optionees. If the Company
is relying on the exemption from registration under Section 12(g) of the Exchange Act pursuant to Rule 12h-1(f)(1) promulgated under the Exchange Act, then the Company shall provide the Required Information (as defined below) in the manner
required by Rule 12h-1(f)(1) to all optionees every six months until the Company becomes subject to the reporting requirements of Section 13 or 15(d) of the Exchange Act or is no longer relying on the exemption pursuant to Rule 12h-1(f)(1);
provided, that, prior to receiving access to the Required Information the optionee must agree to keep the Required Information confidential pursuant to a written agreement in the form provided by the Company. For purposes of
this Section 4.11, “Required Information” means the information described in Rules 701(e)(3), (4) and (5) under the Securities Act, with the financial statements being not more than 180 days old before the sale
of securities to which it relates. 

  
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 5. RESTRICTED STOCK. A Restricted Stock Award is an offer by the
Company to sell to an eligible person Shares that are subject to certain specified restrictions. The Committee will determine to whom an offer will be made, the number of Shares the person may purchase, the Purchase Price, the restrictions to which
the Shares will be subject, and all other terms and conditions of the Restricted Stock Award, subject to the following terms and conditions. 
 5.1 Form of Restricted Stock Award. All purchases under a Restricted Stock Award made pursuant to this Plan will be evidenced by an Award Agreement (“Restricted Stock Purchase
Agreement”) that will be in such form (which need not be the same for each Participant) as the Committee will from time to time approve, and will comply with and be subject to the terms and conditions of this Plan. The Restricted Stock
Award will be accepted by the Participant’s execution and delivery of the Restricted Stock Purchase Agreement and full payment for the Shares to the Company within thirty (30) days from the date the Restricted Stock Purchase Agreement is
delivered to the person. If such person does not execute and deliver the Restricted Stock Purchase Agreement along with full payment for the Shares to the Company within such thirty (30) days, then the offer will terminate, unless otherwise
determined by the Committee. 
 5.2 Purchase Price. The Purchase Price of Shares sold pursuant to a Restricted
Stock Award will be determined by the Committee on the date the Restricted Stock Award is granted or at the time the purchase is consummated. Payment of the Purchase Price must be made in accordance with Section 8 hereof. 

5.3 Restrictions. Restricted Stock Awards may be subject to the restrictions set forth in Sections 9 and 10 hereof or,
with respect to a Restricted Stock Award to which Section 25102(o) is to apply, such other restrictions not inconsistent with Section 25102(o). 
 6. RESTRICTED STOCK UNITS. 
 6.1 Awards of Restricted Stock
Units. A Restricted Stock Unit (“RSU”) is an Award covering a number of Shares that may be settled in cash, or by issuance of those Shares at a date in the future. No Purchase Price shall apply to an RSU settled in
Shares other than the payment of the aggregate par value of all Shares issuable upon such settlement. All grants of Restricted Stock Units will be evidenced by an Award Agreement that will be in such form (which need not be the same for each
Participant) as the Committee will from time to time approve, and will comply with and be subject to the terms and conditions of this Plan. 
 6.2 Form and Timing of Settlement. To the extent permissible under applicable law, the Committee may permit a Participant to defer payment under a RSU to a date or dates after the RSU is
earned, provided that the terms of the RSU and any deferral satisfy the requirements of Section 409A of the Code (or any successor) and any regulations or rulings promulgated thereunder. Payment may be made in the form of cash or
whole Shares or a combination thereof, all as the Committee determines. 
 7. STOCK APPRECIATION RIGHTS.

 7.1 Awards of SARs. Stock Appreciation Rights (“SARs”) may be settled in cash, or
Shares (which may consist of Restricted Stock or RSUs), having a value equal to the value determined by multiplying the difference between the Fair Market Value on the date of exercise over the Exercise Price and the number of Shares with respect to
which the SAR is being settled. All grants of SARs made pursuant to this Plan will be evidenced by an Award Agreement that will be in such form (which need not be the same for each Participant) as the Committee will from time to time approve, and
will comply with and be subject to the terms and conditions of this Plan. 

  
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 7.2 Exercise Period and Expiration Date. A SAR will be exercisable within the
times or upon the occurrence of events determined by the Committee and set forth in the Award Agreement governing such SAR. The Award Agreement shall set forth the Expiration Date; provided that no SAR will be exercisable after the
expiration of ten years from the date the SAR is granted. 
 7.3 Exercise Price. The Committee will determine the
Exercise Price of the SAR when the SAR is granted, and which may not be less than the Fair Market Value on the date of grant and may be settled in cash or in Shares. 
 7.4 Termination. Subject to earlier termination pursuant to Sections 11 and 13.1 hereof and notwithstanding the exercise periods set forth in the Award Agreement, exercise of SARs will
always be subject to the following terms and conditions. 
 7.4.1 Other than Death or Disability or for Cause. If the
Participant is Terminated for any reason other than death, Disability or for Cause, then the Participant may exercise such Participant’s SARs only to the extent that such SARs are exercisable as to vested Shares upon the Termination Date or as
otherwise determined by the Committee. SARs must be exercised by the Participant, if at all, as to all or some of the vested Shares calculated as of the Termination Date or such other date determined by the Committee, within three (3) months
after the Termination Date (or within such shorter time period, not less than thirty (30) days, or within such longer time period, not exceeding five (5) years, after the Termination Date as may be determined by the Committee) but in any
event, no later than the expiration date of the SARs. 
 7.4.2 Death or Disability. If the Participant is Terminated
because of Participant’s death or Disability (or the Participant dies within three (3) months after a Termination other than for Cause), then Participant’s SARs may be exercised only to the extent that such SARs are exercisable as to
vested Shares by Participant on the Termination Date or as otherwise determined by the Committee. Such SARs must be exercised by Participant (or Participant’s legal representative or authorized assignee), if at all, as to all or some of the
vested Shares calculated as of the Termination Date or such other date determined by the Committee, within twelve (12) months after the Termination Date (or within such shorter time period, not less than six (6) months, or within such
longer time period, not exceeding five (5) years, after the Termination Date as may be determined by the Committee) but in any event no later than the expiration date of the SARs. 

7.4.3 For Cause. If the Participant is terminated for Cause, the Participant may exercise such Participant’s SARs, but not
to an extent greater than such SARs are exercisable as to vested Shares upon the Termination Date and Participant’s SARs shall expire on such Participant’s Termination Date, or at such later time and on such conditions as are determined by
the Committee. 
 8. PAYMENT FOR PURCHASES AND EXERCISES. 

8.1 Payment in General. Payment for Shares acquired pursuant to this Plan may be made in cash (by check) or, where
expressly approved for the Participant by the Committee and where permitted by law: 
 (a) by cancellation of
indebtedness of the Company owed to the Participant; 

  
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 (b) by surrender of shares of the Company that are clear of all liens,
claims, encumbrances or security interests and: (i) for which the Company has received “full payment of the purchase price” within the meaning of SEC Rule 144 (and, if such shares were purchased from the Company by use of a
promissory note, such note has been fully paid with respect to such shares) or (ii) that were obtained by Participant in the public market; 
 (c) by tender of a full recourse promissory note having such terms as may be approved by the Committee and bearing interest at a rate sufficient to avoid imputation of income under Sections 483 and
1274 of the Code; provided, however, that Participants who are not employees or directors of the Company will not be entitled to purchase Shares with a promissory note unless the note is adequately secured by collateral
other than the Shares; provided, further, that the portion of the Exercise Price or Purchase Price, as the case may be, equal to the par value of the Shares must be paid in cash or other legal consideration permitted by
the laws under which the Company is then incorporated or organized; 
 (d) by waiver of compensation due or
accrued to the Participant from the Company for services rendered; 
 (e) by participating in a formal cashless
exercise program implemented by the Committee in connection with the Plan; 
 (f) subject to compliance with
applicable law and solely in the discretion of the Committee, by exercising as set forth below, provided that a public market for the Company’s Common Stock exists: 

(i) through a “same day sale” commitment from the Participant and a broker-dealer whereby the Participant
irrevocably elects to exercise the Award and to sell a portion of the Shares so purchased sufficient to pay the total Exercise Price or Purchase Price, and whereby the broker-dealer irrevocably commits upon receipt of such Shares to forward the
total Exercise Price or Purchase Price directly to the Company; or 
 (g) by any combination of the foregoing or
any other method of payment approved by the Committee. 
 8.2 Withholding Taxes. 

8.2.1 Withholding Generally. Whenever Shares are to be issued in satisfaction of Awards granted under this Plan, the Company may
require the Participant to remit to the Company an amount sufficient to satisfy applicable tax withholding requirements prior to the delivery of any certificate or certificates for such Shares. Whenever, under this Plan, payments in satisfaction of
Awards are to be made in cash by the Company, such payment will be net of an amount sufficient to satisfy applicable tax withholding requirements. 
 8.2.2 Stock Withholding. When, under applicable tax laws, a Participant incurs tax liability in connection with the exercise or vesting of any Award that is subject to tax withholding and the
Participant is obligated to pay the Company the amount required to be withheld, the Committee may in its sole discretion allow the Participant to satisfy the minimum tax withholding obligation by electing to have the Company withhold from the Shares
to be issued up to the minimum number of Shares having a Fair Market Value on the date that the amount of tax to be withheld is to be determined that is not more than the minimum amount to be withheld; but in no event will the Company withhold
Shares if such withholding would result in adverse accounting consequences to the Company. 

  
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Any elections by a Participant to have Shares withheld for this purpose will be made in accordance with the requirements established by the Committee for such elections and be in writing in a
form acceptable to the Committee. 
 9. RESTRICTIONS ON AWARDS. 

9.1 Transferability. Except as permitted by the Committee, Awards granted under this Plan, and any interest therein, will
not be transferable or assignable by Participant, other than by will or by the laws of descent and distribution, and, with respect to NQSOs, by instrument to an inter vivos or testamentary trust in which the NQSOs are to be passed to beneficiaries
upon the death of the trustor (settlor), or by gift to “family member” as that term is defined in Rule 701, and may not be made subject to execution, attachment or similar process. For the avoidance of doubt, the prohibition against
assignment and transfer applies to a stock option and, prior to exercise, the shares to be issued on exercise of a stock option, and pursuant to the foregoing sentence shall be understood to include, without limitation, a prohibition against any
pledge, hypothecation, or other transfer, including any short position, any “put equivalent position” or any “call equivalent position” (in each case, as defined in Rule 16a-1 promulgated under the Exchange Act. During the
lifetime of the Participant an Award will be exercisable only by the Participant or Participant’s legal representative and any elections with respect to an Award may be made only by the Participant or Participant’s legal representative.
The terms of an Option shall be binding upon the executor, administrator, successors and assigns of the Participant who is a party thereto. 
 9.2 Securities Law and Other Regulatory Compliance. Although this Plan is intended to be a written compensatory benefit plan within the meaning of Rule 701 promulgated under the
Securities Act, grants may be made pursuant to this Plan that do not qualify for exemption under Rule 701 or Section 25102(o). Any requirement of this Plan which is required in law only because of Section 25102(o) need not apply with
respect to a particular Award to which Section 25102(o) will not apply. An Award will not be effective unless such Award is in compliance with all applicable federal and state securities laws, rules and regulations of any governmental body, and
the requirements of any stock exchange or automated quotation system upon which the Shares may then be listed or quoted, as they are in effect on the date of grant of the Award and also on the date of exercise or other issuance. Notwithstanding any
other provision in this Plan, the Company will have no obligation to issue or deliver certificates for Shares under this Plan prior to (a) obtaining any approvals from governmental agencies that the Company determines are necessary or
advisable, and/or (b) compliance with any exemption, completion of any registration or other qualification of such Shares under any state or federal law or ruling of any governmental body that the Company determines to be necessary or
advisable. The Company will be under no obligation to register the Shares with the SEC or to effect compliance with the exemption, registration, qualification or listing requirements of any state securities laws, stock exchange or automated
quotation system, and the Company will have no liability for any inability or failure so do. 
 9.3 Exchange and Buyout of
Awards. The Committee may, at any time or from time to time, authorize the Company, with the consent of the respective Participants, to issue new Awards in exchange for the surrender and cancellation of any or all outstanding Awards. The
Committee may at any time buy from a Participant an Award previously granted with payment in cash, Shares (including Restricted Stock) or other consideration, based on such terms and conditions as the Committee and the Participant may agree.

 10. RESTRICTIONS ON SHARES. 
 10.1 Privileges of Stock Ownership. No Participant will have any of the rights of a shareholder with respect to any Shares until such Shares are issued to the Participant. After Shares are
issued to the Participant, the Participant will be a shareholder and have all the rights of a shareholder with 

  
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respect to such Shares, including the right to vote and receive all dividends or other distributions made or paid with respect to such Shares; provided, that if such Shares are
Restricted Stock, then any new, additional or different securities the Participant may become entitled to receive with respect to such Shares by virtue of a stock dividend, stock split or any other change in the corporate or capital structure of the
Company will be subject to the same restrictions as the Restricted Stock. The Participant will have no right to retain such stock dividends or stock distributions with respect to Unvested Shares that are repurchased as described in this
Section 10. 
 10.2 Rights of First Refusal and Repurchase. At the discretion of the Committee, the Company
may reserve to itself and/or its assignee(s) in the Award Agreement (a) a right of first refusal to purchase all Shares that a Participant (or a subsequent transferee) may propose to transfer to a third party, provided that such
right of first refusal terminates upon the Company’s initial public offering of Common Stock pursuant to an effective registration statement filed under the Securities Act and (b) a right to repurchase Unvested Shares held by a Participant
for cash and/or cancellation of purchase money indebtedness owed to the Company by the Participant following such Participant’s Termination at any time. 
 10.3 Escrow; Pledge of Shares. To enforce any restrictions on a Participant’s Shares, the Committee may require the Participant to deposit all certificates representing Shares, together
with stock powers or other instruments of transfer approved by the Committee, appropriately endorsed in blank, with the Company or an agent designated by the Company to hold in escrow until such restrictions have lapsed or terminated. The Committee
may cause a legend or legends referencing such restrictions to be placed on the certificate. Any Participant who is permitted to execute a promissory note as partial or full consideration for the purchase of Shares under this Plan will be required
to pledge and deposit with the Company all or part of the Shares so purchased as collateral to secure the payment of Participant’s obligation to the Company under the promissory note; provided, however, that the
Committee may require or accept other or additional forms of collateral to secure the payment of such obligation and, in any event, the Company will have full recourse against the Participant under the promissory note notwithstanding any pledge of
the Participant’s Shares or other collateral. In connection with any pledge of the Shares, Participant will be required to execute and deliver a written pledge agreement in such form as the Committee will from time to time approve. The Shares
purchased with the promissory note may be released from the pledge on a pro rata basis as the promissory note is paid. 

10.4 Securities Law Restrictions. All certificates for Shares or other securities delivered under this Plan will be subject
to such stock transfer orders, legends and other restrictions as the Committee may deem necessary or advisable, including restrictions under any applicable federal, state or foreign securities law, or any rules, regulations and other requirements of
the SEC or any stock exchange or automated quotation system upon which the Shares may be listed or quoted. 
 11.
CORPORATE TRANSACTIONS. 
 11.1 Acquisitions or Other Combinations. In the event that the Company is
subject to an Acquisition or Other Combination, outstanding Awards acquired under the Plan shall be subject to the agreement evidencing the Acquisition or Other Combination, which need not treat all outstanding Awards in an identical manner. Such
agreement, without the Participant’s consent, shall provide for one or more of the following with respect to all outstanding Awards as of the effective date of such Acquisition or Other Combination: 

(a) The continuation of such outstanding Awards by the Company (if the Company is the successor entity). 

  
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 (b) The assumption of outstanding Awards by the successor or acquiring
entity (if any) of such Acquisition or Other Combination (or by any of its Parents, if any), which assumption, will be binding on all Participants; provided that the exercise price and the number and nature of shares issuable upon exercise of any
such option or stock appreciation right, or any award that is subject to Section 409A of the Code, will be adjusted appropriately pursuant to Section 424(a) of the Code. 

(c) The substitution by the successor or acquiring entity in such Acquisition or Other Combination (or by any of its
Parents, if any) of equivalent awards with substantially the same terms for such outstanding Awards (except that the exercise price and the number and nature of shares issuable upon exercise of any such option or stock appreciation right, or any
award that is subject to Section 409A of the Code, will be adjusted appropriately pursuant to Section 424(a) of the Code). 
 (d) The full exercisability or vesting and accelerated expiration of outstanding Awards. 
 (e) The settlement of the full value of such outstanding Award (whether or not then vested or exercisable) in cash, cash equivalents, or securities of the successor entity (or its Parent, if any) with a
Fair Market Value equal to the required amount, followed by the cancellation of such Awards; provided however, that such Award may be cancelled if such Award has no value, as determined by the Committee, in its discretion. Subject to
Section 409A of the Code, such payment may be made in installments and may be deferred until the date or dates when the Award would have become exercisable or vested. Such payment may be subject to vesting based on the Participant’s
continued service, provided that the vesting schedule shall not be less favorable to the Participant than the schedule under which the Award would have become vested or exercisable. For purposes of this Section 11.1(e), the Fair Market value of
any security shall be determined without regard to any vesting conditions that may apply to such security. 

(f) The cancellation of outstanding Awards in exchange for no consideration. 

Immediately following an Acquisition or Other Combination, outstanding Awards shall terminate and cease to be outstanding, except to the
extent such Awards, have been continued, assumed or substituted, as described in Sections 11.1(a), (b) and/or (c). 

11.2 Assumption of Awards by the Company. The Company, from time to time, also may substitute or assume outstanding awards
granted by another entity, whether in connection with an acquisition of such other entity or otherwise, by either (a) granting an Award under this Plan in substitution of such other entity’s award or (b) assuming and/or converting
such award as if it had been granted under this Plan if the terms of such assumed award could be applied to an Award granted under this Plan. Such substitution or assumption will be permissible if the holder of the substituted or assumed award would
have been eligible to be granted an Award under this Plan if the other entity had applied the rules of this Plan to such grant. In the event the Company assumes an award granted by another entity, the terms and conditions of such award will remain
unchanged (except that the exercise price and the number and nature of shares issuable upon exercise of any such option or stock appreciation right, or any award that is subject to Section 409A of the Code, will be adjusted appropriately
pursuant to Section 424(a) of the Code). In the event the Company elects to grant a new Option or SAR rather than assuming an existing option or stock appreciation right, such new Option or SAR may be granted with a similarly adjusted Exercise
Price. 

  
 10 

 12. ADMINISTRATION. 

12.1 Committee Authority. This Plan will be administered by the Committee or the Board if no Committee is created by the
Board. Subject to the general purposes, terms and conditions of this Plan, and to the direction of the Board, the Committee will have full power to implement and carry out this Plan. Without limitation, the Committee will have the authority to:

 (a) construe and interpret this Plan, any Award Agreement and any other agreement or document executed
pursuant to this Plan; 
 (b) prescribe, amend, expand, modify and rescind or terminate rules and regulations
relating to this Plan; 
 (c) approve persons to receive Awards; 

(d) determine the form and terms of Awards; 

(e) determine the number of Shares or other consideration subject to Awards granted under this Plan; 

(f) determine whether Awards will be granted singly, in combination with, in tandem with, in replacement of, or as
alternatives to, other Awards under this Plan or awards under any other incentive or compensation plan of the Company or any Parent or Subsidiary of the Company; 

(g) grant waivers of any conditions of this Plan or any Award; 

(h) determine the terms of vesting, exercisability and payment of Awards to be granted pursuant to this Plan; 

(i) correct any defect, supply any omission, or reconcile any inconsistency in this Plan, any Award, any Award Agreement,
any Exercise Agreement or any Restricted Stock Purchase Agreement; 
 (j) determine whether an Award has been
earned; 
 (k) extend the vesting period beyond a Participant’s Termination Date; and 

(l) make all other determinations necessary or advisable in connection with the administration of this Plan. 

12.2 Committee Composition and Discretion. The Board may delegate full administrative authority over the Plan and Awards to
a Committee consisting of at least two members of the Board (or such greater number as may then be required by applicable law). Unless in contravention of any express terms of this Plan or Award, any determination made by the Committee with respect
to any Award will be made in its sole discretion either (a) at the time of grant of the Award, or (b) subject to Section 4.9 hereof, at any later time. Any such determination will be final and binding on the Company and on all persons
having an interest in any Award under this Plan. To the extent permitted by applicable law, the Committee may delegate to one or more officers of the Company the authority to grant an Award under this Plan, provided that each such
officer is a member of the Board. 
 12.3 Nonexclusivity of the Plan. Neither the adoption of this Plan by the
Board, the submission of this Plan to the shareholders of the Company for approval, nor any provision of this Plan will be construed as creating any limitations on the power of the Board to adopt such additional compensation arrangements as it may
deem desirable, including, without limitation, the granting of stock options and other equity awards otherwise than under this Plan, and such arrangements may be either generally applicable or applicable only in specific cases. 

  
 11 

 12.4 Governing Law. This Plan and all agreements
hereunder shall be governed by and construed in accordance with the laws of the State of Washington, without giving effect to that body of laws pertaining to conflict of laws. 
 13. EFFECTIVENESS, AMENDMENT AND TERMINATION OF THE PLAN. 
 13.1
Adoption and Shareholder Approval. This Plan will become effective on the date that it is adopted by the Board (the “Effective Date”). This Plan will be approved by the shareholders of the Company (excluding Shares
issued pursuant to this Plan), consistent with applicable laws, within twelve (12) months before or after the Effective Date. Upon the Effective Date, the Board may grant Awards pursuant to this Plan; provided,
however, that: (a) no Option or SAR may be exercised prior to initial shareholder approval of this Plan; (b) no Option or SAR granted pursuant to an increase in the number of Shares approved by the Board shall be exercised
prior to the time such increase has been approved by the shareholders of the Company; (c) in the event that initial shareholder approval is not obtained within the time period provided herein, all Awards for which only the exemption from
California’s securities qualification requirements provided by Section 25102(o) can apply shall be canceled, any Shares issued pursuant to any such Award shall be canceled and any purchase of such Shares issued hereunder shall be
rescinded; and (d) Awards (to which only the exemption from California’s securities qualification requirements provided by Section 25102(o) can apply) granted pursuant to an increase in the number of Shares approved by the Board which
increase is not approved by shareholders within the time then required under Section 25102(o) shall be canceled, any Shares issued pursuant to any such Awards shall be canceled, and any purchase of Shares subject to any such Award shall be
rescinded. 
 13.2 Term of Plan. Unless earlier terminated as provided herein, this Plan will automatically
terminate ten (10) years after the later of (i) the Effective Date, or (ii) the most recent increase in the number of Shares reserved under Section 2 that was approved by shareholders. 

13.3 Amendment or Termination of Plan. Subject to Section 4.9 hereof, the Board may at any time (a) terminate or
amend this Plan in any respect, including without limitation amendment of any form of Award Agreement or instrument to be executed pursuant to this Plan and (b) terminate any and all outstanding Options or SARs upon a dissolution or liquidation
of the Company, followed by the payment of creditors and the distribution of any remaining funds to the Company’s shareholders; provided, however, that the Board will not, without the approval of the shareholders of
the Company, amend this Plan in any manner that requires such shareholder approval pursuant to Section 25102(o) or pursuant to the Code or the regulations promulgated under the Code as such provisions apply to ISO plans. The termination of the
Plan, or any amendment thereof, shall not affect any Share previously issued or any Award previously granted under the Plan. 

14. DEFINITIONS. For all purposes of this Plan, the following terms will have the following meanings. 

“Acquisition,” for purposes of Section 11, means: 

(a) any consolidation or merger in which the Company is a constituent entity or is a party in which the voting stock and
other voting securities of the Company that are outstanding immediately prior to the consummation of such consolidation or merger represent, or are converted into, securities of the surviving entity of such consolidation or merger (or of any Parent
of such surviving entity) that, 

  
 12 

 
immediately after the consummation of such consolidation or merger, together possess less than fifty percent (50%) of the total voting power of all voting securities of such surviving entity
(or of any of its Parents, if any) that are outstanding immediately after the consummation of such consolidation or merger; 
 (b) a sale or other transfer by the holders thereof of outstanding voting stock and/or other voting securities of the Company possessing more than fifty percent (50%) of the total voting power of all
outstanding voting securities of the Company, whether in one transaction or in a series of related transactions, pursuant to an agreement or agreements to which the Company is a party and that has been approved by the Board, and pursuant to which
such outstanding voting securities are sold or transferred to a single person or entity, to one or more persons or entities who are Affiliates of each other, or to one or more persons or entities acting in concert; or 

(c) the sale, lease, transfer or other disposition, in a single transaction or series of related transactions, by the
Company and/or any Subsidiary or Subsidiaries of the Company, of all or substantially all the assets of the Company and its Subsidiaries taken as a whole, (or, if substantially all of the assets of the Company and its Subsidiaries taken as a whole
are held by one or more Subsidiaries, the sale or disposition (whether by consolidation, merger, conversion or otherwise) of such Subsidiaries of the Company), except where such sale, lease, transfer or other disposition is made to the Company or
one or more wholly owned Subsidiaries of the Company (an “Acquisition by Sale of Assets”). 

“Affiliate” of a specified person means a person that directly, or indirectly through one or more
intermediaries, controls or is controlled by, or is under common control with, the person specified (where, for purposes of this definition, the term “control” (including the terms controlling,
controlled by and under common control with) means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a person, whether through the ownership of voting
securities, by contract, or otherwise. 
 “Award” means any award pursuant to the terms and conditions
of this Plan, including any Option, Restricted Stock Unit, Stock Appreciation Right or Restricted Stock Award. 

“Award Agreement” means, with respect to each Award, the signed written agreement between the Company and the
Participant setting forth the terms and conditions of the Award as approved by the Committee. 

“Board” means the Board of Directors of the Company. 

“Cause” means Termination because of (a) Participant’s unauthorized misuse of the Company or a Parent
or Subsidiary of the Company’s trade secrets or proprietary information, (b) Participant’s conviction of or plea of nolo contendere to a felony or a crime involving moral turpitude, (c) Participant’s committing an act of
fraud against the Company or a Parent or Subsidiary of the Company or (d) Participant’s gross negligence or willful misconduct in the performance of his or her duties that has had or will have a material adverse effect on the Company or
Parent or Subsidiary of the Company’ reputation or business. 
 “Code” means the Internal Revenue
Code of 1986, as amended. 
 “Committee” means the committee created and appointed by the Board to
administer this Plan, or if no committee is created and appointed, the Board. 
 “Company” means
Acucela Inc., or any successor corporation. 

  
 13 

 “Disability” means a disability, whether temporary or permanent,
partial or total, as determined by the Committee. 
 “Exchange Act” means the Securities Exchange Act
of 1934, as amended. 
 “Exercise Price” means the price per Share at which a holder of an Option may
purchase Shares issuable upon exercise of the Option. 
 “Fair Market Value” means, as of any date, the
value of a share of the Company’s Common Stock determined as follows: 
 (a) if such Common Stock is then
publicly traded on a national securities exchange, its closing price on the date of determination on the principal national securities exchange on which the Common Stock is listed or admitted to trading as reported in The Wall Street Journal;

 (b) if such Common Stock is publicly traded but is not listed or admitted to trading on a national securities
exchange, the average of the closing bid and asked prices on the date of determination as reported by The Wall Street Journal (or, if not so reported, as otherwise reported by any newspaper or other source as the Committee may determine); or

 (c) if none of the foregoing is applicable to the valuation in question, by the Committee in good faith.

 “Option” means an award of an option to purchase Shares pursuant to Section 4 of this Plan.

 “Other Combination” for purposes of Section 11 means any (a) consolidation or merger in
which the Company is a constituent entity and is not the surviving entity of such consolidation or merger or (b) any conversion of the Company into another form of entity; provided that such consolidation, merger or conversion
does not constitute an Acquisition. 
 “Parent” of a specified entity means, any entity that, either
directly or indirectly, owns or controls such specified entity, where for this purpose, “control” means the ownership of stock, securities or other interests that possess at least a majority of the voting power of such
specified entity (including indirect ownership or control of such stock, securities or other interests). 

“Participant” means a person who receives an Award under this Plan. 

“Plan” means this 2012 Equity Incentive Plan, as amended from time to time. 

“Purchase Price” means the price at which a Participant may purchase Restricted Stock pursuant to this Plan.

 “Restricted Stock” means Shares purchased pursuant to a Restricted Stock Award under this Plan.

 “Restricted Stock Award” means an award of Shares pursuant to Section 5 hereof. 

“Restricted Stock Unit” or “RSU” means an award made pursuant to Section 6 hereof.

 “Rule 701” means Rule 701 et seq promulgated by the Commission under the Securities Act.

  
 14 

 “SEC” means the Securities and Exchange Commission. 

“Section 25102(o)” means Section 25102(o) of the California Corporations Code. 

“Securities Act” means the Securities Act of 1933, as amended. 

“Shares” means shares of the Company’s Common Stock, $0.0001, par value per share, reserved for issuance
under this Plan, as adjusted pursuant to Sections 2.2 and 11 hereof, and any successor security. 
 “Stock
Appreciation Right” or “SAR” means an award granted pursuant to Section 7 hereof. 

“Subsidiary” means any entity (other than the Company) in an unbroken chain of entities beginning with the
Company if each of the entities other than the last entity in the unbroken chain owns stock or other equity securities representing fifty percent (50%) or more of the total combined voting power of all classes of stock or other equity
securities in one of the other entities in such chain. 
 “Termination” or
“Terminated” means, for purposes of this Plan with respect to a Participant, that the Participant has for any reason ceased to provide services as an employee, officer, director or consultant to the Company or a Parent or
Subsidiary of the Company. A Participant will not be deemed to have ceased to provide services in the case of sick leave, military leave, or any other leave of absence approved by the Committee; provided that such leave is for a period
of not more than ninety (90) days (a) unless reinstatement (or, in the case of an employee with an ISO, reemployment) upon the expiration of such leave is guaranteed by contract or statute, or (b) unless provided otherwise pursuant to
formal policy adopted from time to time by the Company’s Board and issued and promulgated in writing. In the case of any Participant on sick leave, military leave or an approved leave of absence, the Committee may make such provisions
respecting suspension of vesting of the Award while on leave from the Company or a Parent or Subsidiary of the Company as it may deem appropriate, except that in no event may an Option be exercised after the expiration of the term set forth in the
Stock Option Agreement. The Committee will have sole discretion to determine whether a Participant has ceased to provide services and the effective date on which the Participant ceased to provide services (the “Termination
Date”). 
 “Unvested Shares” means “Unvested Shares” as defined in
the Award Agreement for an Award. 
 “Vested Shares” means “Vested Shares” as
defined in the Award Agreement. 
 * * * * * * * * * * * 
 September 5, 2012: Approved by Board of Directors (1,284,057 shares reserved plus any shares that become available under 2002 Plan) and by the shareholders of May 23,
2013. 

  
 15 

 ACUCELA INC. 
 2012 EQUITY INCENTIVE PLAN 
 NOTICE OF STOCK OPTION GRANT 

You (the “Participant”) have been granted an option (the “Option”) to purchase shares of
Common Stock (the “Shares”) of Acucela Inc., a Washington corporation (the “Company”), pursuant to the Company’s 2012 Equity Incentive Plan, as amended from time to time (the
“Plan”) on the terms, and subject to the conditions, described below. 
  

					
	 Participant:
	  	  
	  	
			
	 Number of Shares:
	  	  
	  	
			
	 Exercise Price Per Share:
	  	
                 
	  	
			
	 Date of Grant:
	  	  
	  	
			
	 First Vesting Date:
	  	  
	  	
		
	 Expiration Date:
	  	The date ten (10) years after the Date of Grant, with earlier expiration in the event of termination of service as provided in Section 3 of the Stock Option
Agreement.
			
	 Tax Status of Option:
	  	 ̈ Incentive Stock Option	  	 ̈ Nonqualified Stock Option
	 (Check One)
	  		  	

 Vesting Schedule: Provided you continue to provide services to the Company or any Subsidiary or Parent of
the Company, the Option will become vested as to portions of the Shares as follows: [Standard Vesting Schedule] (a) the Option will not be vested with respect to any of the Shares prior to the First Vesting Date; (b) the Option will become
vested as to 25% of the Shares on the First Vesting Date; and (c) the Option will become vested and exercisable as to 2.0833% of the Shares on the first day of each month succeeding the First Vesting Date until 100% of the Shares are vested.

 Exercise Schedule:  ̈ Same as Vesting Schedule 

Additional Terms:  ̈ If this boxed is checked, the additional terms and conditions set forth on
Attachment 1 hereto (which must be executed by the Company and the Participant) are applicable and are incorporated herein by reference. (No document need be attached as Attachment 1 if the box is not checked.) 

General: By their signatures below, Participant and the Company agree that the Option is granted under and governed by this Notice and by
the provisions of the Plan and the Stock Option Agreement attached hereto as Exhibit A. The Plan and the Stock Option Agreement are incorporated herein by reference. Capitalized terms used but not defined herein shall have the meanings ascribed
to them in the Plan or in the Stock Option Agreement, as applicable. Participant acknowledges receipt of a copy of the Plan and the Stock Option Agreement, represents that Participant has carefully read and is familiar with their provisions, and
hereby accepts the Option subject to all of their terms and conditions. Participant acknowledges that there may be adverse tax consequences upon exercise of the Option or disposition of the Shares and that Participant should consult a tax adviser
prior to such exercise or disposition. 
 This Notice may be executed and delivered by facsimile and upon such delivery the facsimile signature
will be deemed to have the same effect as if the original signature had been delivered to the other party. Additionally, this Notice may be executed and delivered electronically whether via the Company’s intranet or the Internet site of a third
party or via email or such other means of electronic delivery specified by the Company. 

 By Participant’s acceptance hereof (whether written, electronic or otherwise), Participant agrees, to
the fullest extent permitted by law, that in lieu of receiving documents in paper format, Participant accepts the electronic delivery of any documents the Company, or any third party involved in administering the Plan which the Company may
designate, may deliver in connection with this grant (including the Plan, the Notice of Grant, this Agreement, the 701 Disclosures, account statements, or other communications or information) whether via the Company’s intranet or the Internet
site of such third party or via email or such other means of electronic delivery specified by the Company. 
  

					
	Acucela Inc.	 		  	Participant
			
	Signature:                            
                                         
                            	 		  	Signature:                           
                                         
                        
			
	Typed Name:                           
                                         
                      	 		  	
			
	Title:                            
                                         
                                     	 		  	

 ATTACHMENT: Exhibit A – Stock Option Agreement 

 Exhibit A 

Stock Option Agreement 

 ACUCELA INC. 
 2012 EQUITY INCENTIVE PLAN 
 STOCK OPTION AGREEMENT 

This Stock Option Agreement (the “Agreement”) is made and entered into as of the date of grant (the
“Date of Grant”) set forth on the notice of stock option grant attached as the facing page hereto (the “Grant Notice”) by and between Acucela Inc., a Washington corporation (the
“Company”), and the participant named on the Grant Notice (the “Participant”). Capitalized terms not defined herein shall have the meaning ascribed to them in the Company’s 2012 Equity Incentive
Plan, as amended from time to time (the “Plan”), or in the Grant Notice, as applicable. 
 1.
GRANT OF OPTION. The Company hereby grants to Participant an option (this “Option”) to purchase the total number of shares of Common Stock of the Company (the “Common Stock”) set forth above
as Total Option Shares (the “Shares”) at the Exercise Price Per Share set forth in the Grant Notice (the “Exercise Price”), subject to all of the terms and conditions of this Agreement and the Plan. If
designated as an Incentive Stock Option above, the Option is intended to qualify as an “incentive stock option” (the “ISO”) within the meaning of Section 422 of the Internal Revenue Code of 1986, as amended
(the “Code”), except that if on the date of grant the Participant is not subject to U.S. income tax, then this Option shall be a NQSO. 
 2. EXERCISE PERIOD. 
 2.1 Exercise Period of Option.
This Option will become vested during its term as to portions of the Shares in accordance with the Vesting Schedule set forth in the Grant Notice. Notwithstanding any provision in the Plan or this Agreement to the contrary, Options for Unvested
Shares will not be exercisable on or after Participant’s Termination Date. 
 2.2 Vesting of Options. Shares
that are vested pursuant to the schedule set forth in Section 2.1 are “Vested Shares.” Shares that are not vested pursuant to the schedule set forth in Section 2.1 are “Unvested
Shares.” 
 2.3 Expiration. The Option shall expire on the Expiration Date set forth above or
earlier as provided in Section 3 below or pursuant to Section 4.6 of the Plan. 
 3. TERMINATION.

 3.1 Termination for Any Reason Except Death, Disability or Cause. If Participant is Terminated for any reason,
except death, Disability or for Cause, the Option, to the extent (and only to the extent) that it would have been exercisable by Participant on the Termination Date, may be exercised by Participant no later than three (3) months after the
Termination Date, but in any event no later than the Expiration Date. 
 3.2 Termination Because of Death or
Disability. If Participant is Terminated because of death or Disability of Participant (or Participant dies within three (3) months of Termination when Termination is for any reason other than Participant’s Disability or for
Cause), the Option, to the extent that it is exercisable by Participant on the Termination Date, may be exercised by Participant (or Participant’s legal representative) no later than twelve (12) months after the Termination Date, but in
any 

 
event no later than the Expiration Date. Any exercise beyond (i) three (3) months after the Termination Date when the Termination is for any reason other than the Participant’s
death or disability, within the meaning of Section 22(e)(3) of the Code; or (ii) twelve (12) months after the Termination Date when the termination is for Participant’s disability, within the meaning of Section 22(e)(3) of
the Code, is deemed to be an NQSO. 
 3.3 Termination for Cause. If the Participant is terminated for Cause, the
Participant may exercise such Participant’s Options, but not to an extent greater than such Options are exercisable as to Vested Shares upon the Termination Date and Participant’s Options shall expire on such Participant’s Termination
Date, or at such later time and on such conditions as are determined by the Committee. 
 3.4 No Obligation to
Employ. Nothing in the Plan or this Agreement shall confer on Participant any right to continue in the employ of, or other relationship with, the Company or any Parent or Subsidiary of the Company, or limit in any way the right of the
Company or any Parent or Subsidiary of the Company to terminate Participant’s employment or other relationship at any time, with or without Cause. 
 4. MANNER OF EXERCISE. 
 4.1 Notice of Stock Option Exercise
Agreement. To exercise this Option, Participant (or in the case of exercise after Participant’s death or incapacity, Participant’s executor, administrator, heir or legatee, as the case may be) must deliver to the Company an
executed notice of stock option exercise in the form attached hereto as Exhibit A, or in such other form as may be approved by the Committee from time to time (the “Exercise Notice”), which shall set forth,
inter alia, (i) Participant’s election to exercise the Option, (ii) the number of Shares being purchased, (iii) any restrictions imposed on the Shares and (iv) any representations, warranties and agreements regarding
Participant’s investment intent and access to information as may be required by the Company to comply with applicable securities laws. If someone other than Participant exercises the Option, then such person must submit documentation reasonably
acceptable to the Company verifying that such person has the legal right to exercise the Option and such person shall be subject to all of the restrictions contained herein as if such person were the Participant. 

4.2 Limitations on Exercise. The Option may not be exercised unless such exercise is in compliance with all applicable
federal and state securities laws, as they are in effect on the date of exercise. 
 4.3 Payment. The Exercise
Notice shall be accompanied by full payment of the Exercise Price for the shares being purchased in cash (by check), or where permitted by law: 
 (a) by surrender of shares of the Company’s Common Stock that are clear of all liens, claims, encumbrances or security interests for which the Company has received “full payment of the purchase
price” within the meaning of SEC Rule 144; 
 (b) provided that a public market for the Company’s stock exists:
(i) through a “same day sale” commitment from Participant and a broker-dealer that is a member of the National Association of Securities Dealers (an “NASD Dealer”) whereby Participant irrevocably elects to
exercise the Option and to sell a portion of the Shares so purchased sufficient to pay for the total Exercise Price and whereby the NASD Dealer irrevocably commits upon receipt of such Shares to forward the total Exercise Price directly to the
Company, or (ii) through a “margin” commitment from Participant and an NASD Dealer whereby Participant irrevocably elects to exercise the Option and to pledge the Shares so purchased to the

 
NASD Dealer in a margin account as security for a loan from the NASD Dealer in the amount of the total Exercise Price, and whereby the NASD Dealer irrevocably commits upon receipt of such Shares
to forward the total Exercise Price directly to the Company; or 
 (c) any other form of consideration approved by the
Committee; or 
 (d) by any combination of the foregoing. 

4.4 Tax Withholding. Prior to the issuance of the Shares upon exercise of the Option, Participant must pay or provide for
any applicable federal, state and local withholding obligations of the Company. If the Committee permits, Participant may provide for payment of withholding taxes upon exercise of the Option by requesting that the Company retain the minimum number
of Shares with a Fair Market Value equal to the minimum amount of taxes required to be withheld; but in no event will the Company withhold Shares if such withholding would result in adverse accounting consequences to the Company. In such case, the
Company shall issue the net number of Shares to the Participant by deducting the Shares retained from the Shares issuable upon exercise. 
 4.5 Issuance of Shares. Provided that the Exercise Notice and payment are in form and substance satisfactory to counsel for the Company, the Company shall issue the Shares registered in the
name of Participant, Participant’s authorized assignee, or Participant’s legal representative, and shall deliver certificates representing the Shares with the appropriate legends affixed thereto. 

5. NOTICE OF DISQUALIFYING DISPOSITION OF ISO SHARES. If the Option is an ISO, and if Participant sells or otherwise
disposes of any of the Shares acquired pursuant to the ISO on or before the later of (i) the date two (2) years after the Date of Grant, and (ii) the date one (1) year after transfer of such Shares to Participant upon exercise of
the Option, Participant shall immediately notify the Company in writing of such disposition. Participant agrees that Participant may be subject to income tax withholding by the Company on the compensation income recognized by Participant from the
early disposition by payment in cash or out of the current wages or other compensation payable to Participant. 
 6.
COMPLIANCE WITH LAWS AND REGULATIONS. The Plan, this Agreement, and the Exercise Notice are intended to comply with Section 25102(o) of the California Corporations Code and any regulations relating thereto. Any
provision of this Agreement that is inconsistent with Section 25102(o) or any regulations relating thereto shall, without further act or amendment by the Company or the Board, be reformed to comply with the requirements of Section 25102(o)
and any regulations relating thereto. The exercise of the Option and the issuance and transfer of Shares shall be subject to compliance by the Company and Participant with all applicable requirements of federal and state securities laws and
with all applicable requirements of any stock exchange on which the Company’s Common Stock may be listed at the time of such issuance or transfer. Participant understands and acknowledges that the Shares have not been registered with the SEC
under the Securities Act and that, notwithstanding any other provision of this Agreement to the contrary, the exercise of any rights to purchase any Shares is expressly conditioned upon compliance with the Securities Act and all applicable state
securities laws. Participant further understands that the Company is under no obligation to register or qualify the Shares with the SEC, any state securities commission or any stock exchange to effect such compliance. Participant agrees to cooperate
with the Company as requested to ensure compliance with such laws. 

 7. RESTRICTIONS ON TRANSFER. 

7.1 Options. The Option may not be transferred in any manner other than by will or by the laws of descent and distribution,
and, with respect to NQSOs, by instrument to an inter vivos or testamentary trust in which the options are to be passed to beneficiaries upon the death of the trustor (settlor), or by gift to “immediate family” as that term is defined in
17 C.F.R. 240.16a-1(e), and may be exercised during the lifetime of Participant only by Participant or in the event of Participant’s incapacity, by Participant’s legal representative. The terms of the Option shall be binding upon the
executors, administrators, successors and assigns of Participant. 
 7.2 Restricted Securities. 

(a) No Transfer Unless Registered or Exempt. Participant understands that upon exercise, Participant may not transfer any Shares
unless such Shares are registered under the Securities Act or qualified under applicable state securities laws or unless, in the opinion of counsel to the Company, exemptions from such registration and qualification requirements are available.
Participant understands that only the Company may file a registration statement with the SEC and that the Company is under no obligation to do so with respect to the Shares. Participant has also been advised that exemptions from registration and
qualification may not be available or may not permit Participant to transfer all or any of the Shares in the amounts or at the times proposed by Participant. 
 (b) SEC Rule 144. In addition, Participant has been advised that SEC Rule 144 promulgated under the Securities Act, which permits certain limited sales of unregistered securities, is not presently
available with respect to the Shares and, in any event, requires that the Shares be held for a minimum of six (6) months, and in certain cases one (1) year, after they have been purchased and paid for (within the meaning of Rule 144).
Participant understands that Rule 144 may indefinitely restrict transfer of the Shares so long as Participant remains an “affiliate” of the Company or if “current public information” about the Company (as defined in Rule 144) is
not publicly available. 
 7.3 Disposition of Shares. Participant hereby agrees that upon exercise, Participant
shall make no disposition of the Shares (other than as permitted by this Agreement or Exercise Notice) unless and until: 
 (a)
Participant shall have notified the Company of the proposed disposition and provided a written summary of the terms and conditions of the proposed disposition; 
 (b) Participant shall have complied with all requirements of this Agreement and the Exercise Notice applicable to the disposition of the Shares; and 

(c) Participant shall have provided the Company with written assurances, in form and substance satisfactory to counsel for the Company,
that (i) the proposed disposition does not require registration of the Shares under the Securities Act or (ii) all appropriate actions necessary for compliance with the registration requirements of the Securities Act or of any exemption
from registration available under the Securities Act (including Rule 144) have been taken. 
 7.4 Restrictions.
Participant shall not transfer, assign, grant a lien or security interest in, pledge, hypothecate, encumber or otherwise dispose of any of the Shares which are subject to the Company’s Right of First Refusal described below, except as permitted
by this Agreement. 

 7.5 Transferee Obligations. Each person (other than the Company) to whom the
Shares are transferred by means of one of the permitted transfers specified in this Agreement must, as a condition precedent to the validity of such transfer, acknowledge in writing to the Company that such person is bound by the provisions of this
Agreement and that the transferred Shares are subject to (i) the Company’s Right of First Refusal granted hereunder and (ii) the market stand-off provisions of Section 9 hereof, to the same extent such Shares would be so subject
if retained by the Participant. 
 8. COMPANY’S RIGHT OF FIRST REFUSAL. Before any Vested Shares held by
Participant or any transferee of such Vested Shares (either sometimes referred to in this Section 8 as the “Holder”) may be sold or otherwise transferred (including without limitation a transfer by gift or operation of
law), the Company and/or its assignee(s) shall have an assignable right of first refusal to purchase the Vested Shares to be sold or transferred (the “Offered Shares”) on the terms and conditions set forth in this
Section 8 (the “Right of First Refusal”). 
 8.1 Notice of Proposed Transfer. The
Holder of the Offered Shares will deliver to the Company a written notice (the “Notice”) stating: (i) the Holder’s bona fide intention to sell or otherwise transfer the Offered Shares; (ii) the name and address
of each proposed purchaser or other transferee (the “Proposed Transferee”); (iii) the number of Offered Shares to be transferred to each Proposed Transferee; (iv) the bona fide cash price or other consideration for
which the Holder proposes to transfer the Offered Shares (the “Offered Price”); and (v) that the Holder acknowledges this Notice is an offer to sell the Offered Shares to the Company and/or its assignee(s) pursuant to
the Company’s Right of First Refusal at the Offered Price as provided for in this Agreement. 
 8.2 Exercise of Right
of First Refusal. At any time within thirty (30) days after the date of the Notice, the Company and/or its assignee(s) may, by giving written notice to the Holder, elect to purchase all (or, with the consent of the Holder, less than
all) the Offered Shares proposed to be transferred to any one or more of the Proposed Transferees named in the Notice, at the purchase price, determined as specified below. 
 8.3 Purchase Price. The purchase price for the Offered Shares purchased under this Section will be the Offered Price, provided that if the Offered Price consists of no legal consideration
(as, for example, in the case of a transfer by gift) the purchase price will be the fair market value of the Offered Shares as determined in good faith by the Board. If the Offered Price includes consideration other than cash, then the value of the
non-cash consideration, as determined in good faith by the Board, will conclusively be deemed to be the cash equivalent value of such non-cash consideration. 
 8.4 Payment. Payment of the purchase price for the Offered Shares will be payable, at the option of the Company and/or its assignee(s) (as applicable), by check or by cancellation of all or
a portion of any outstanding purchase money indebtedness owed by the Holder to the Company (or to such assignee, in the case of a purchase of Offered Shares by such assignee) or by any combination thereof. The purchase price will be paid without
interest within sixty (60) days after the Company’s receipt of the Notice, or, at the option of the Company and/or its assignee(s), in the manner and at the time(s) set forth in the Notice. 

8.5 Holder’s Right to Transfer. If all of the Offered Shares proposed in the Notice to be transferred to a given
Proposed Transferee are not purchased by the Company and/or its assignee(s) as provided in this Section 8, then the Holder may sell or otherwise transfer such Offered Shares to each Proposed Transferee at the Offered Price or at a higher price,
provided that (i) such sale or other transfer is consummated within ninety (90) days after the date of the Notice, (ii) any such sale or other transfer is effected in compliance with all applicable securities laws, and (iii) each
Proposed Transferee agrees in writing that the provisions of this Section 8 will continue to apply to the Offered Shares in the hands of 

 
such Proposed Transferee. If the Offered Shares described in the Notice are not transferred to each Proposed Transferee within such ninety (90) day period, then a new Notice must be given to
the Company pursuant to which the Company will again be offered the Right of First Refusal before any Shares held by the Holder may be sold or otherwise transferred. 
 8.6 Exempt Transfers. Notwithstanding anything to the contrary in this Section 8, the following transfers of Vested Shares will be exempt from the Right of First Refusal: (i) the
transfer of any or all of the Vested Shares during Participant’s lifetime by gift or on Participant’s death by will or intestacy to Participant’s “Immediate Family” (as defined below) or to a trust for the benefit of
Participant or Participant’s Immediate Family, provided that each transferee or other recipient agrees in a writing satisfactory to the Company that the provisions of this Section 8 will continue to apply to the transferred Vested Shares
in the hands of such transferee or other recipient; (ii) any transfer of Vested Shares made pursuant to a statutory merger or statutory consolidation of the Company with or into another corporation or corporations (except that the Right of
First Refusal will continue to apply thereafter to such Vested Shares, in which case the surviving corporation of such merger or consolidation shall succeed to the rights of the Company under this Section 8 unless the agreement of merger or
consolidation expressly otherwise provides); or (iii) any transfer of Vested Shares pursuant to the winding up and dissolution of the Company. As used herein, the term “Immediate Family” will mean Participant’s
spouse, the lineal descendant or antecedent, father, mother, brother or sister, child, adopted child, grandchild or adopted grandchild of the Participant or the Participant’s spouse, or the spouse of any of the above or Spousal Equivalent, as
defined herein. As used herein, a person is deemed to be a “Spousal Equivalent” provided the following circumstances are true: (i) irrespective of whether or not the Participant and the Spousal Equivalent are the same
sex, they are the sole spousal equivalent of the other for the last twelve (12) months, (ii) they intend to remain so indefinitely, (iii) neither are married to anyone else, (iv) both are at least 18 years of age and mentally
competent to consent to contract, (v) they are not related by blood to a degree of closeness that which would prohibit legal marriage in the state in which they legally reside, (vi) they are jointly responsible for each other’s common
welfare and financial obligations, and (vii) they reside together in the same residence for the last twelve (12) months and intend to do so indefinitely. 
 8.7 Termination of Right of First Refusal. The Right of First Refusal will terminate as to all Shares (i) on the effective date of the first sale of Common Stock of the Company to the
general public pursuant to a registration statement filed with and declared effective by the SEC under the Securities Act (other than a registration statement relating solely to the issuance of Common Stock pursuant to a business combination or an
employee incentive or benefit plan) (ii) on any transfer or conversion of Shares made pursuant to a statutory merger or statutory consolidation of the Company with or into another corporation or corporations if the common stock of the surviving
corporation or any direct or indirect parent corporation thereof is registered under the Exchange Act. 
 8.8 Encumbrances
on Vested Shares. Participant may grant a lien or security interest in, or pledge, hypothecate or encumber Vested Shares only if each party to whom such lien or security interest is granted, or to whom such pledge, hypothecation or other
encumbrance is made, agrees in a writing satisfactory to the Company that: (i) such lien, security interest, pledge, hypothecation or encumbrance will not apply to such Vested Shares after they are acquired by the Company and/or its assignees
under this Section; and (ii) the provisions of this Agreement will continue to apply to such Vested Shares in the hands of such party and any transferee of such party. Participant may not grant a lien or security interest in, or pledge,
hypothecate or encumber, any Unvested Shares. 
 9. MARKET STANDOFF AGREEMENT. Participant agrees in connection
with any registration of the Company’s securities under the Securities Act or other public offering that, upon the request of the Company or the underwriters managing any registered public offering of the Company’s securities, Participant
will not sell or otherwise dispose of any Shares acquired upon exercise of the 

 
Option without the prior written consent of the Company or such managing underwriters, as the case may be, for a period of time (not to exceed one hundred eighty (180) days) after the
effective date of such registration requested by such managing underwriters and subject to all restrictions as the Company or the managing underwriters may specify for employee-shareholders generally. Further, if during the last seventeen
(17) days of the restricted period the Company issues an earnings release or material news, or a material event relating to the Company occurs, or prior to the expiration of the restricted period the Company announces that it will release
earnings results during the 16-day period beginning on the last day of the restricted period, then, if required by the underwriters or the Company, the restrictions imposed by this Section 9 shall continue to apply until the expiration of the
18-day period beginning on the issuance of the earnings release or the occurrence of the material news or material event. In no event will the restricted period extend beyond two hundred fifteen (215) days after the effective date of the
registration statement. For purposes of this Section 9, the term “Company” shall include any wholly-owned subsidiary of the Company into which the Company merges or consolidates. In order to enforce the foregoing
covenant, the Company shall have the right to place restrictive legends on the certificates representing the Shares subject to this Section 9 and to impose stop transfer instructions with respect to the Shares until the end of such period.
Participant further agrees to enter into any agreement reasonably required by the underwriters to implement the foregoing and that such underwriters are express third party beneficiaries of this Section 9. 

10. RESTRICTIVE LEGENDS AND STOP-TRANSFER ORDERS. 
 10.1 Legends. Participant understands and agrees that the Company will place the legends set forth below or similar legends on any stock certificate(s) evidencing the Shares, together with
any other legends that may be required by state or U.S. Federal securities laws, the Company’s Certificate of Incorporation or Bylaws, any other agreement between Participant and the Company or any agreement between Participant and any third
party: 
 THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“SECURITIES ACT”), OR UNDER THE SECURITIES LAWS OF CERTAIN STATES. THESE SECURITIES ARE SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND RESALE AND MAY NOT BE TRANSFERRED OR RESOLD EXCEPT AS PERMITTED UNDER THE SECURITIES ACT AND APPLICABLE
STATE SECURITIES LAWS, PURSUANT TO REGISTRATION OR EXEMPTION THEREFROM. INVESTORS SHOULD BE AWARE THAT THEY MAY BE REQUIRED TO BEAR THE FINANCIAL RISKS OF THIS INVESTMENT FOR AN INDEFINITE PERIOD OF TIME. THE ISSUER OF THESE SECURITIES MAY REQUIRE
AN OPINION OF COUNSEL IN FORM AND SUBSTANCE SATISFACTORY TO THE ISSUER TO THE EFFECT THAT ANY PROPOSED TRANSFER OR RESALE IS IN COMPLIANCE WITH THE SECURITIES ACT AND ANY APPLICABLE STATE SECURITIES LAWS. 

THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO CERTAIN RESTRICTIONS ON PUBLIC RESALE AND TRANSFER, INCLUDING THE RIGHT OF
FIRST REFUSAL HELD BY THE ISSUER AND/OR ITS ASSIGNEE(S) AS SET FORTH IN A STOCK OPTION EXERCISE NOTICE BETWEEN THE ISSUER AND THE ORIGINAL HOLDER OF THESE SHARES, A COPY OF WHICH MAY BE OBTAINED AT THE PRINCIPAL OFFICE OF THE ISSUER. SUCH PUBLIC
SALE AND TRANSFER RESTRICTIONS INCLUDING THE RIGHT OF FIRST REFUSAL ARE BINDING ON TRANSFEREES OF THESE SHARES. 

 
THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO A 180 DAY MARKET STANDOFF RESTRICTION AS SET FORTH IN A CERTAIN AGREEMENT BETWEEN THE ISSUER AND THE ORIGINAL HOLDER OF THESE SHARES, A
COPY OF WHICH MAY BE OBTAINED AT THE PRINCIPAL OFFICE OF THE ISSUER. AS A RESULT OF SUCH AGREEMENT, THESE SHARES MAY NOT BE TRADED PRIOR TO 180 DAYS AFTER THE EFFECTIVE DATE OF ANY PUBLIC OFFERING OF THE COMMON STOCK OF THE ISSUER HEREOF. SUCH
RESTRICTION IS BINDING ON TRANSFEREES OF THESE SHARES. 
 10.2 Stop-Transfer Instructions. Participant agrees
that, to ensure compliance with the restrictions imposed by this Agreement, the Company may issue appropriate “stop-transfer” instructions to its transfer agent, if any, and if the Company transfers its own securities, it may make
appropriate notations to the same effect in its own records. 
 10.3 Refusal to Transfer. The Company will not be
required (i) to transfer on its books any Shares that have been sold or otherwise transferred in violation of any of the provisions of this Agreement or (ii) to treat as owner of such Shares, or to accord the right to vote or pay dividends
to any purchaser or other transferee to whom such Shares have been so transferred. 
 11. TAX CONSEQUENCES. Set
forth below is a brief summary as of the Effective Date of the Plan of some of the federal tax consequences of exercise of the Option and disposition of the Shares. THIS SUMMARY IS NECESSARILY INCOMPLETE, AND THE TAX LAWS AND REGULATIONS ARE
SUBJECT TO CHANGE. PARTICIPANT SHOULD CONSULT A TAX ADVISER BEFORE EXERCISING THE OPTION OR DISPOSING OF THE SHARES. 

11.1 Exercise of ISO. If the Option qualifies as an ISO, there will be no regular federal income tax liability upon the
exercise of the Option, although the excess, if any, of the Fair Market Value of the Shares on the date of exercise over the Exercise Price will be treated as a tax preference item for federal alternative minimum tax purposes and may subject the
Participant to the alternative minimum tax in the year of exercise. 
 11.2 Exercise of Nonqualified Stock Option.
If the Option does not qualify as an ISO, there may be a regular federal income tax liability upon the exercise of the Option. Participant will be treated as having received compensation income (taxable at ordinary income tax rates) equal to the
excess, if any, of the Fair Market Value of the Shares on the date of exercise over the Exercise Price. If Participant is a current or former employee of the Company, the Company may be required to withhold from Participant’s compensation or
collect from Participant and pay to the applicable taxing authorities an amount equal to a percentage of this compensation income at the time of exercise. 
 11.3 Disposition of Shares. The following tax consequences may apply upon disposition of the Shares. 
 (a) Incentive Stock Options. If the Shares are held for more than twelve (12) months after the date of purchase of the Shares pursuant to the exercise of an ISO and are disposed of more than
two (2) years after the Date of Grant, any gain realized on disposition of the Shares will be treated as long term capital gain for federal income tax purposes. If Vested Shares purchased under an ISO are disposed of within the applicable one
(1) year or two (2) year period, any gain realized on such disposition will be treated as compensation income (taxable at ordinary income rates in the year of the disposition) to the extent of the excess, if any, of the Fair Market Value
of the Shares on the date of exercise over the Exercise Price. 

 (b) Nonqualified Stock Options. If the Shares are held for more than twelve
(12) months after the date of purchase of the Shares pursuant to the exercise of an NQSO, any gain realized on disposition of the Shares will be treated as long term capital gain. 

(c) Withholding. The Company may be required to withhold from the Participant’s compensation or collect from the Participant
and pay to the applicable taxing authorities an amount equal to a percentage of this compensation income. 
 12.
PRIVILEGES OF STOCK OWNERSHIP. Participant shall not have any of the rights of a shareholder with respect to any Shares until the Shares are issued to Participant. Subject to the terms and conditions of this Agreement, upon the exercise
of this Option, Participant will have all of the rights of a shareholder of the Company with respect to the Shares so purchased upon such exercise from and after the date that Shares are issued to Participant until such time as Participant disposes
of the Shares or the Company and/or its assignee(s) exercise(s) the Right of First Refusal. Upon an exercise of the Right of First Refusal, Participant will have no further rights as a holder of the Shares so purchased upon such exercise, other than
the right to receive payment for the Shares so purchased in accordance with the provisions of the Stock Option Agreement, and Participant will promptly surrender the stock certificate(s) evidencing the Shares so purchased to the Company for transfer
or cancellation. 
 13. GENERAL PROVISIONS. 

13.1 Interpretation. Any dispute regarding the interpretation of this Agreement or the Exercise Notice shall be submitted
by Participant or the Company to the Committee for review. The resolution of such a dispute by the Committee shall be final and binding on the Company and Participant. 
 13.2 Entire Agreement. The Plan is incorporated herein by reference. This Agreement, the Plan and the Exercise Notice constitute the entire agreement of the parties and supersede all prior
undertakings and agreements with respect to the subject matter hereof. 
 14. NOTICES. Any and all notices
required or permitted to be given to a party pursuant to the provisions of this Agreement or the Exercise Notice will be in writing and will be effective and deemed to provide such party sufficient notice under this Agreement or the Exercise Notice
on the earliest of the following: (i) at the time of personal delivery, if delivery is in person; (ii) at the time of transmission by facsimile, addressed to the other party at its facsimile number specified herein (or hereafter modified
by subsequent notice to the parties hereto), with confirmation of receipt made by both telephone and printed confirmation sheet verifying successful transmission of the facsimile; (iii) one (1) business day after deposit with an express
overnight courier for United States deliveries, or two (2) business days after such deposit for deliveries outside of the United States, with proof of delivery from the courier requested; or (iv) three (3) business days after deposit
in the United States mail by certified mail (return receipt requested) for United States deliveries. Any notice for delivery outside the United States will be sent by facsimile or by express courier. Any notice not delivered personally or by
facsimile will be sent with postage and/or other charges prepaid and properly addressed to the party to be notified at the address or facsimile number set forth below the signature lines of this Agreement, or the Exercise Notice (if different) or at
such other address or facsimile number as such other party may designate by one of the indicated means of notice herein to the other parties hereto. Notices to the Company will be marked “Attention: Chief Financial Officer.” Notices by
facsimile shall be machine verified as received. 
 15. SUCCESSORS AND ASSIGNS. The Company may assign any of its
rights under this Agreement and the Exercise Notice including its rights to purchase Shares under the Right of First Refusal. This Agreement and the Exercise Notice shall be binding upon and inure to the benefit of the 

 
successors and assigns of the Company. No other party to this Agreement or the Exercise Notice may assign, whether voluntarily or by operation of law, any of its rights and obligations under this
Agreement or the Exercise Notice, except with the prior written consent of the Company. Subject to the restrictions on transfer set forth herein and the Exercise Notice, this Agreement and the Exercise Notice shall be binding upon Participant and
Participant’s heirs, executors, administrators, legal representatives, successors and assigns. 
 16. GOVERNING
LAW. This Agreement shall be governed by and construed in accordance with the laws of the State of Washington. If any provision of this Agreement is determined by a court of law to be illegal or unenforceable, then such provision will be
enforced to the maximum extent possible and the other provisions will remain fully effective and enforceable. 
 17.
FURTHER ASSURANCES. The parties agree to execute such further documents and instruments and to take such further actions as may be reasonably necessary to carry out the purposes and intent of this Agreement and/or the Exercise Notice.

 18. TITLES AND HEADINGS. The titles, captions and headings of this Agreement are included for ease of reference
only and will be disregarded in interpreting or construing this Agreement. Unless otherwise specifically stated, all references herein to “sections” and “exhibits” will mean “sections” and “exhibits” to this
Agreement. 
 19. COUNTERPARTS. This Agreement may be executed in any number of counterparts, each of which when
so executed and delivered will be deemed an original, and all of which together shall constitute one and the same agreement. 

20. SEVERABILITY. If any provision of this Agreement or the Exercise Notice is determined by any court or arbitrator of
competent jurisdiction to be invalid, illegal or unenforceable in any respect, such provision will be enforced to the maximum extent possible given the intent of the parties hereto. If such clause or provision cannot be so enforced, such provision
shall be stricken from this Agreement or the Exercise Notice and the remainder of this Agreement or the Exercise Notice, as the case may be, shall be enforced as if such invalid, illegal or unenforceable clause or provision had (to the extent not
enforceable) never been contained in this Agreement or the Exercise Notice. Notwithstanding the forgoing, if the value of this Agreement or the Exercise Notice based upon the substantial benefit of the bargain for any party is materially impaired,
which determination as made by the presiding court or arbitrator of competent jurisdiction shall be binding, then both parties agree to substitute such provision(s) through good faith negotiations. 

 EXHIBIT A 

FORM OF NOTICE OF STOCK OPTION EXERCISE AGREEMENT 

 ACUCELA INC. 2012 EQUITY
INCENTIVE PLAN (“PLAN”) 
 NOTICE OF
STOCK OPTION EXERCISE (“NOTICE”) 
 You must sign
this Notice on Page 4 before submitting it to the Company. 
 PARTICIPANT INFORMATION:

  

									
					
	Name:	 	 	 		  	Social Security Number: 	  	 
					
	Address: 	 	 	 		  	Employee Number:	  	 
					
		 	 	 		  		  	

 OPTION INFORMATION: 

 

			
		
	Date of Grant:              Grant Number:
            	  	Type of Stock Option:
		
	Exercise Price per Share: $             	  	 ̈     Nonstatutory (NSO)
		
	 Total number of shares of Common Stock of Acucela Inc. (the
 “Company”) covered by Option: __________________
	  	 ̈     Incentive (ISO)

 EXERCISE INFORMATION: 
 Number of shares of Common Stock of the Company for which Option is being exercised now:
                    . (These shares are referred to below as the “Purchased Shares.”) 

Total Exercise Price for the Purchased Shares: $              

Form of payment enclosed [check all that apply]: 
  

			
	
	  ̈       Check for $
            , payable to “Acucela Inc.”

	
	  ̈       Certificate(s) for
             shares of Common Stock of the Company which the Company has received “full payment of the  purchase price” within the meaning of SEC Rule 144. (These
shares will be valued as of the date this notice is received by the  Company.)

	
	Name(s) in which the Purchased Shares should be registered [please review the attached explanation of the available forms of ownership, and then check one
box]:
		
	  ̈       In my name only
	  	
		
	  ̈       In the names of my spouse and
myself as community property
	  	My spouse’s name (if applicable):
		
	  ̈       In the names of my spouse and myself
as joint tenants with  the right of survivorship
	  	  

		
	The certificate for the Purchased Shares should be sent to the following address:	  	  

		
		  	  

		
		  	  

 REPRESENTATIONS AND ACKNOWLEDGMENTS OF
THE PARTICIPANT: 
  

	1.	I acknowledge that capitalized terms not defined in this Notice shall have the meanings ascribed to them in the Company’s Plan and Stock Option Agreement.

  

	2.	I represent and warrant to the Company that I am acquiring and will hold the Purchased Shares for investment for my account only, and not with a view to, or for resale
in connection with, any “distribution” of the Purchased Shares within the meaning of the Securities Act. 

  

	3.	I understand that the Purchased Shares have not been registered under the Securities Act by reason of a specific exemption therefrom and that the Purchased Shares must
be held indefinitely, unless they are subsequently registered under the Securities Act or I obtain an opinion of counsel (in form and substance satisfactory to the Company and its counsel) that registration is not required. 

 

	4.	I acknowledge that the Company is under no obligation to register the Purchased Shares. 

 

	5.	I am aware of the adoption of Rule 144 by the SEC under the Securities Act, which permits limited public resales of securities acquired in a non-public offering,
subject to the satisfaction of certain conditions. These conditions include (without limitation) that certain current public information about the issuer is available, that the resale occurs only after the holding period required by Rule 144
has been satisfied, that the sale occurs through an unsolicited “broker’s transaction” and that the amount of securities being sold during any three-month period does not exceed specified limitations. I understand that the conditions
for resale set forth in Rule 144 have not been satisfied and that the Company has no plans to satisfy these conditions in the foreseeable future. 

  

	6.	I will not sell, transfer or otherwise dispose of the Purchased Shares in violation of the Securities Act, the Exchange Act, or the rules promulgated thereunder,
including Rule 144 under the Securities Act. 

  

	7.	I acknowledge that I have received and had access to such information as I consider necessary or appropriate for deciding whether to invest in the Purchased Shares and
that I had an opportunity to ask questions and receive answers from the Company regarding the terms and conditions of the issuance of the Purchased Shares. 

 

	8.	I am aware that my investment in the Company is a speculative investment that has limited liquidity and is subject to the risk of complete loss. I am able, without
impairing my financial condition, to hold the Purchased Shares for an indefinite period and to suffer a complete loss of my investment in the Purchased Shares. 

 

	9.	I acknowledge that the Purchased Shares remain subject to the Company’s Right of First Refusal and the market stand-off (sometimes referred to as the
“lock-up”), all in accordance with the applicable Notice of Stock Option Grant and Stock Option Agreement, and that any certificates evidence the Shares shall bear the legends set forth in the Stock Option Agreement.

  

	10.	As security for my faithful performance of this Notice of Stock Option Exercise and the Stock Option Agreement, I agree, immediately upon receipt of the stock
certificate(s) evidencing the Purchased Shares, to deliver such certificate(s), together with the Stock Powers executed by me and by my spouse, if any (with the date and number of Shares left blank), to the Escrow Holder, who is hereby appointed to
hold such certificate(s) and Stock Powers in escrow and to take all such actions and to effectuate all such transfers and/or releases of such Purchased Shares as are in accordance with the terms of this Notice of Stock Option Exercise and the Stock
Option Agreement. I agree that Escrow Holder will not be liable to any party to this Notice of Stock Option Exercise or the Stock Option Agreement (or to any other party) for any actions or omissions unless Escrow Holder is grossly negligent or
intentionally fraudulent in carrying out the duties of Escrow Holder under this Notice of Stock Option Exercise or the Stock Option Agreement. Escrow Holder may rely upon any letter, notice or other document executed with any signature purported to
be genuine and may rely on the advice of counsel and obey any order of any court with respect to the transactions contemplated by this Notice of Stock Option Exercise or the Stock Option Agreement. The Purchased Shares will be released from escrow
upon termination of the Right of First Refusal. 

  
 2 

	11.	I will make no disposition of the Purchased Shares (other than as permitted by this Notice of Stock Option Exercise or the Stock Option Agreement) unless and until:

  

	 	(a)	I shall have notified the Company of the proposed disposition and provided a written summary of the terms and conditions of the proposed disposition;

  

	 	(b)	I shall have complied with all requirements of this Notice of Stock Option Exercise and the Stock Option Agreement applicable to the disposition of the Purchased
Shares; 

  

	 	(c)	I shall have provided the Company with written assurances, in form and substance satisfactory to counsel for the Company, that (i) the proposed disposition does
not require registration of the Purchased Shares under the Securities Act or (ii) all appropriate actions necessary for compliance with the registration requirements of the Securities Act or of any exemption from registration available under
the Securities Act (including Rule 144) have been taken; 

  

	 	(d)	I shall have provided the Company with written assurances, in form and substance satisfactory to the Company, that the proposed disposition will not result in the
contravention of any transfer restrictions applicable to the Purchased Shares pursuant to the laws and provisions referred to in paragraph 5 hereof; and 

  

	 	(e)	Each person (other than the Company) to whom the Purchased Shares are transferred by means of one of the permitted transfers specified in this Notice of Stock Option
Exercise or the Stock Option Agreement must, as a condition precedent to the validity of such transfer, acknowledge in writing to the Company that such person is bound by the provisions of this Notice of Stock Option Exercise and Stock Option
Agreement and that the transferred Shares are subject to (i) as applicable, the Company’s Right of First Refusal and (ii) the market stand-off provisions, to the same extent such Shares would be so subject if retained by the
Participant. 

  

	12.	I shall not transfer, assign, grant a lien or security interest in, pledge, hypothecate, encumber or otherwise dispose of any of the Purchased Shares which are subject
to the Company’s Right of First Refusal described below, except as permitted by this Notice of Stock Option Exercise or the Stock Option Agreement. 

  

	13.	I agree that, to ensure compliance with the restrictions imposed by this Notice of Stock Option Exercise and the Stock Option Agreement, the Company may issue
appropriate “stop-transfer” instructions to its transfer agent, if any, and if the Company transfers its own securities, it may make appropriate notations to the same effect in its own records. 

 

	14.	I acknowledge that the Company will not be required (i) to transfer on its books any Purchased Shares that have been sold or otherwise transferred in violation of
any of the provisions of this Notice of Stock Option Exercise and the Stock Option Agreement or (ii) to treat as owner of such Purchased Shares, or to accord the right to vote or pay dividends to any purchaser or other transferee to whom such
Purchased Shares have been so transferred. 

  

	15.	I acknowledge that the Company may assign any of its rights and obligations under this Notice of Stock Option Exercise and the Stock Option Agreement, including its
rights to purchase Shares under the Right of First Refusal. No other party to this Notice of Stock Option Exercise and the Stock Option Agreement may assign, whether voluntarily or by operation of law, any of its rights and obligations under this
Notice of Stock Option Exercise and the Stock Option Agreement, except with 

  
 3 

 the prior written consent of the Company. This Notice of Stock Option Exercise and the Stock
Option Agreement shall be binding upon and inure to the benefit of the successors and assigns of the Company. Subject to the restrictions on transfer herein set forth, this Exercise this Notice of Stock Option Exercise and the Stock Option Agreement
will be binding upon Participant and Participant’s heirs, executors, administrators, legal representatives, successors and assigns. 
  

	16.	I acknowledge that I am acquiring the Purchased Shares subject to all other terms of the Notice of Stock Option Grant and Stock Option Agreement.

  

	17.	I acknowledge that the Company has encouraged me to consult my own adviser to determine the form of ownership that is appropriate for me. In the event that I choose to
transfer my Purchased Shares to a trust, I agree to sign a Stock Transfer Agreement. 

  

	18.	I acknowledge that I have received a copy of the Company’s explanation of the federal income tax consequences of an option exercise. I acknowledge that the Company
has encouraged me to consult my own adviser to determine the tax consequences of acquiring the Purchased Shares at this time. 

  

	19.	I agree to seek the consent of my spouse to the extent required by the Company to enforce the foregoing. 

PARTICIPANT 
  

									
					
	 	 	 	  		  	Date:  	  	 
	(Signature)	  		  		  	
					
	 	 	 	  		  		  	
	(Please print name)	  		  		  	
					
	Grant Number:  	 	 	  		  		  	
					
	Address:	 	 	  		  		  	
				
	 	  		  		  	

  

			
	Exhibit 1:	  	Stock Power and Assignment Separate from Stock Certificate
	Exhibit 2:	  	Spouse Consent
	Exhibit 3:	  	Copy of Participant’s Check (if any)

  
 4 

 EXHIBIT 1 

STOCK POWER AND ASSIGNMENT 
 SEPARATE FROM STOCK CERTIFICATE 

 Stock Power and Assignment 

Separate from Stock Certificate 
 FOR VALUE RECEIVED and pursuant to that certain Notice of Stock Option Exercise dated as of _______________, _____, [TO BE COMPLETED AT THE TIME OF EXERCISE] (the
“Agreement”), the undersigned hereby sells, assigns and transfers unto _______________________________, __________ shares of the Common Stock of Acucela Inc., a Washington corporation (the “Company”),
standing in the undersigned’s name on the books of the Company represented by Certificate No(s). ______ [TO BE COMPLETED AT THE TIME OF EXERCISE] delivered herewith, and does hereby irrevocably constitute and appoint
the Secretary of the Company as the undersigned’s attorney-in-fact, with full power of substitution, to transfer said stock on the books of the Company. THIS ASSIGNMENT MAY ONLY BE USED AS AUTHORIZED BY THE AGREEMENT AND ANY EXHIBITS THERETO.

 Dated:             ,
             
  

	
	PARTICIPANT
	
	 
	(Signature)
	
	 
	(Please Print Name)
	
	 
	(Spouse’s Signature, if any)
	
	 
	(Please Print Spouse’s Name)

 Instructions to Participant: Please do not fill in any blanks other than the signature line. The
purpose of this Stock Power and Assignment is to enable the Company to acquire the shares and to exercise its “Right of First Refusal” set forth in the Stock Option Agreement and without requiring additional signatures on the part of the
Participant or Participant’s Spouse. 

 EXHIBIT 2 

SPOUSE CONSENT 

 Spouse Consent 

The undersigned spouse of
                     (the “Participant”) has read, understands, and hereby approves the Stock Option Agreement between
Participant and the Company (the “Agreement”) and the Notice of Stock Option Exercise (the “Notice”). In consideration of the Company’s granting my spouse the right to purchase the Shares as set
forth in the Agreement and Notice, the undersigned hereby agrees to be irrevocably bound by the Agreement and Notice and further agrees that any community property interest I may have in the Shares shall similarly be bound by the Agreement and
Notice. The undersigned hereby appoints Participant as my attorney-in-fact with respect to any amendment or exercise of any rights under the Agreement or Notice. 
 Date:                          

 

			
		 	 
		 	Print Name of Participant’s Spouse
		
		 	 
		 	Signature of Participant’s Spouse
		
	Address:  	 	 
		
		 	 

 EXHIBIT 3 

COPY OF PARTICIPANT’S CHECK  

  
 1Agreement for Stock Purchase

 Exhibit 10.12 
 Execution Copy 
 AGEEMENT FOR STOCK PURCHASE 

THIS AGREEMENT FOR STOCK PURCHASE (this
“Agreement”) is made and entered into as of September 15, 2010 (the “Effective Date”) by and between OTSUKA PHARMACEUTICAL CO., LTD., a
Japanese corporation having its principal place of business at Shinagawa Grand Central Tower, 2-16-4 Konan, Minato-Ku, Tokyo 108-8242, Japan (“Otsuka”), and ACUCELA INC., a Washington
corporation having its principal place of business at 1301 Second Ave., Suite 1900, Seattle, WA 98101-3805 USA (“Acucela”). Acucela and Otsuka are sometimes referred to herein individually as a “Party” and
collectively as the “Parties.” 
 RECITALS 
 A. The Parties have entered into that certain Development and Collaboration Agreement dated September 15, 2010 (the “Collaboration Agreement”). 

B. In connection with the Collaboration Agreement, Otsuka desires to purchase certain shares of Acucela outstanding equity securities from Acucela
shareholders, and the Parties desire to set forth certain terms and conditions of such securities purchases. 
 NOW, THEREFORE, the
Parties agree as follows: 
 1. Definitions. Capitalized terms used in this Agreement and not otherwise defined herein
shall have the meaning as set forth in the Collaboration Agreement. 
 2. Purchases of Acucela Securities. Acucela
acknowledges that the purchase by Otsuka or its Affiliates (the “Otsuka Purchaser(s)”) from Acucela shareholders of outstanding Acucela Securities (as defined below) equaling up to 1,868,318 shares of Acucela Common Stock on an as
converted to Common Stock basis is a material inducement to Otsuka to execute the Collaboration Agreement; provided, however, the Parties acknowledge and agree that the Otsuka Purchaser(s)’ aggregate percentage ownership of Acucela
Securities – excluding shares held by any Otsuka Affiliate as of the Effective Date – shall not exceed eight and two-tenths percent (8.2%) on an outstanding and as converted to Common Stock basis. 

3. Anti-Dilution. Each time Acucela issues, in the aggregate, 100,000 shares of Acucela Common Stock and/or Common Stock
Equivalents (including issuances of Acucela Common Stock pursuant to the exercise of outstanding Options) (each a “Triggering Issuance”), then, promptly following the final closing of each Triggering Issuance, the Otsuka
Purchaser(s) will, subject to the Legal Obligations (as defined below), have the right (the “Anti-Dilution Right”) to purchase Acucela Securities from the Acucela shareholders such that the Otsuka Purchaser(s)’ aggregate
percentage ownership of Acucela Securities on an outstanding and as converted to Common Stock basis – excluding shares held by any Otsuka Affiliate as of the Effective Date – will, immediately following the applicable issuance, be equal to
eight and two-tenths percent (8.2%). In the event Otsuka chooses to exercise its Anti-Dilution Right, it shall provide written notice thereof (the “Notice”) three (3) days prior to the exercise of the Anti-Dilution Right.

  
 1 

 4. Facilitation of Purchases. Subject to the limits of Sections 2 and 3 above,
Acucela will not, directly or indirectly, interfere or block, or attempt to interfere or block, any purchase by Otsuka Purchaser(s) of the Acucela Securities, and, in the event that any agreement, contract, obligation, provision or other obligation
requires Acucela’s consent, waiver, or amendment in connection with any purchase by Otsuka Purchaser(s) of Acucela Securities, Acucela shall provide such required consent, waiver, or amendment. Subject to the limits of Sections 2 and 3 above,
Acucela shall use Commercially Reasonable Efforts to facilitate purchases by Otsuka Purchaser(s) of Acucela Securities through the provision of all reasonably available business and financial information to existing Acucela shareholders who indicate
an interest to sell their Acucela Securities to the Otsuka Purchaser(s) consistent with Acucela’s determination of its disclosure obligations under applicable securities laws; provided, however, all purchases of Acucela Securities
by Otsuka Purchaser(s) will be arms-length transactions exclusively between the Otsuka Purchaser(s) and certain of the Acucela shareholders, Acucela shall not be a party to any purchase of Acucela Securities, and all such purchase transactions shall
be consummated in compliance with applicable securities laws, including Section 14(e) of the Securities Exchange Act and the regulations promulgated thereunder (collectively, the “Legal Obligations”). 

5. Legal Fees. Otsuka will be responsible for all legal fees actually incurred by Acucela for its facilitation of purchases by the
Otsuka Purchaser(s) of Acucela Securities up to $175,000, provided, however, that within two (2) days of Acucela’s receipt of the Notice, Acucela shall provide to Otsuka a good faith estimate of Acucela’s legal fees
associated with the exercise of the Anti-Dilution Right and Otsuka will be responsible for all legal fees actually incurred by Acucela in connection with the exercise of the Anti-Dilution Right up to an amount to be determined in good faith through
mutual agreement of the Parties. 
 6. Shareholder Rights. If, at the time of purchase of Acucela Securities by an Otsuka
Purchaser, such Otsuka Purchaser is not already a party to that certain Amended and Restated Investors’ Rights Agreement, dated May 31, 2006, by and among Acucela and the Investors (as defined therein) (the “Rights
Agreement”) and/or that certain Amended and Restated Shareholders’ Agreement, dated May 31, 2006, by and among Ryo Kubota, M.D., Ph.D., Acucela, and the Investors (as defined therein) (the “Shareholders’
Agreement”), regardless of the number of Acucela Securities purchased, then such Otsuka Purchaser shall execute a counterpart signature page to the Rights Agreement and/or Shareholders’ Agreement, as applicable, as an Investor and
Acucela shall diligently use Commercially Reasonable Efforts to obtain the required consents or approvals to amend the Rights Agreement and/or Shareholders’ Agreement, as applicable, to admit such Otsuka Purchaser(s) as a party to such
agreement as an Investor. 
 7. Definitions. 
 (a) Acucela Securities. For purposes of this Agreement, “Acucela Securities” shall mean, collectively, Acucela Common Stock, Common Stock Equivalents and Options. 

  
 2 

 (b) Common Stock Equivalents. For the purposes of this Agreement, “Common
Stock Equivalents” shall mean Acucela Series A Preferred Stock, Series B Preferred Stock, Series C Preferred Stock, any other class of preferred stock of Acucela, and Options. 

(c) Options. For the purposes of this Agreement, “Options” shall mean options, warrants, conversion rights or
other rights to purchase or acquire any shares of Acucela Common Stock or Common Stock Equivalents, to the extent they are or become transferable by the holder(s) thereof. 
 8. Confidentiality. 
 (a) Except to the extent expressly authorized by this
Agreement or otherwise agreed in writing, 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 or
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 information or
material: 
 (i) 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; 

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

 (iii) became generally available to the public or otherwise part of the public domain after its disclosure to the receiving
Party other than through any act or omission of the receiving Party in breach of this Agreement; or 
 (iv) 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. 
 For the avoidance of doubt, the fact that Otsuka Purchaser(s) purchases or will purchase Acucela Securities from the Acucela shareholders pursuant to this Agreement shall be deemed the Confidential
Information of Otsuka. 
 (b) Each Party may use and disclose Confidential Information of the other Party as follows:
(i) 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; (ii) to the extent
such disclosure is reasonably necessary in prosecuting or defending litigation in connection with this Agreement or in complying with Applicable Laws, provided, however, that if a Party is required by Applicable Laws to make any such
disclosure of the other Party’s Confidential Information it will, except where impracticable 

  
 3 

 
for necessary disclosures, 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, or cooperate with the other Party in seeking to secure, confidential treatment of such Confidential Information required to be disclosed; (iii) 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 (iv) to the extent mutually agreed to by the Parties in writing. 

(c) Each Party agrees not to disclose to any Third Party the existence or terms of this Agreement without the prior written consent of the
other Party, except as permitted for disclosures of Confidential Information pursuant to subsection (b) above. 
 9.
Cross Default. Any material breach of this Agreement by Acucela shall be deemed to be a material breach of the Collaboration Agreement solely if such breach of this Agreement (a) occurs before the date on which the Otsuka Purchaser(s)’
aggregate ownership of Acucela Securities on an outstanding and as converted to Common Stock basis – excluding shares held by any Otsuka Affiliate as of the Effective Date – first reaches 8.2% (the “Holding Date”) and
(b) Acucela does not cure such alleged breach within ninety (90) days following Otsuka’s written notice to Acucela specifying such alleged breach of this Agreement in reasonable detail. Acucela shall not be deemed to have materially
breached the Collaboration Agreement due to material breach of this Agreement unless such breach remains uncured by Acucela at the end of the ninety (90) day cure period in accordance with this Section 9. The foregoing
notwithstanding, if Acucela disagrees that it is in material breach of this Agreement, the Parties shall initiate dispute resolution pursuant to Section 12, whereupon the ninety (90) day cure period for material breach under this Agreement
shall be tolled until the dispute regarding whether Acucela is, in fact, in breach of this Agreement is resolved in accordance with Section 12. For the avoidance of doubt, any breach of this Agreement by Acucela after the Holding Date,
regardless of the number of Acucela Securities then-held by the Otsuka Purchasers, shall not be deemed to be a breach of the Collaboration Agreement. 
 10. Term. The term of this Agreement shall be coterminous with the term of the Collaboration Agreement. 
 11. Governing Law. This Agreement shall be governed by and interpreted under the laws of the State of New York, excluding its conflicts of laws principles. 

12. Dispute Resolution. In the event of any controversy, claim or other dispute arising out of or relating to any provision of
this Agreement or the interpretation, enforceability, performance, breach, termination or validity hereof (a “Dispute”), such Dispute shall be first referred to the Parties’ Senior Executives prior to proceeding under the
following provisions of this Section 11. A Dispute shall be referred to such Senior Executives upon any Party providing the other Party with written notice that such Dispute exists, and such Senior Executives shall attempt to resolve such
Dispute through good faith discussions. In the event that such Dispute is not resolved within thirty (30) days of such other Party’s receipt of such written notice, such Dispute shall be finally and exclusively settled by binding
arbitration administered by the American Arbitration Association in accordance with its Commercial Rules. Arbitration proceedings shall be held in New York, New York, USA, unless the Parties mutually agree in

  
 4 

 
writing upon a different location. Arbitration proceedings shall be conducted by a single, neutral arbitrator who shall be experienced in the field of the dispute and shall have no ongoing
business relationship with either Party. Such arbitrator shall be selected by mutual agreement of the Parties or, in the absence of such agreement, by the director of the New York office of the American Arbitration Association. The arbitrator shall
apply the governing law set forth in this Agreement. The arbitrator may grant legal, equitable and monetary relief consistent with the terms of this Agreement. The Parties shall share equally (50-50) the administrative charges, arbitrators’
fees and related expenses of arbitration, but each Party shall pay its own attorney’s fees incurred in connection with such arbitration; provided however, if the arbitrator specifically determines that one Party prevailed clearly and
substantially over the other Party, then the arbitrator may require that the non-prevailing Party shall also pay the prevailing Party’s reasonable attorney’s fees and expert witness costs and arbitration costs. The Parties shall instruct
the arbitrator to: (i) conclude the arbitration as soon as practicable (and in any event within nine (9) months after the arbitration is first requested), and (ii) deliver a written, reasoned opinion stating the arbitrator’s
decision within thirty (30) days after the arbitration is completed. Judgment upon the award rendered by the arbitrator shall be binding, final and non-appealable (absent manifest error) and may be entered and enforced in any court having
jurisdiction thereof. Notwithstanding the above, to the fullest extent provided by law, either Party may bring an action in any court of competent jurisdiction for injunctive relief (or any other provisional remedy) to protect a Party’s rights
or enforce a Party’s obligations under this Agreement pending final resolution of any claims related thereto in an arbitration proceeding as provided above. 
 13. 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 either Party may assign this
Agreement to an Affiliate upon written notice to the non-assigning Party; provided that , (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 this Section 12 shall be null and void. 
 14. 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. 
 15. Severability. If any term of this Agreement is held invalid, illegal or unenforceable in any jurisdiction, then, to the fullest extent permitted by Applicable Laws: (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. 

  
 5 

 16. 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 & Opthalmologicals, and 
 Director, Legal Affairs Department 

If to Acucela: 
 Acucela Inc.

 1301 Second Ave 
 Suite 1900 
 Seattle, WA 98101-3805 

Attention: Ryo Kubota, M.D., Ph.D. 
 17. Amendment. This Agreement may be amended or modified only by a writing signed by each of the Parties. 
 18. Entire Agreement. This Agreement constitutes the entire understanding between the Parties as of the Effective Date with respect to the subject matter hereof and supersedes all related prior or
contemporaneous oral communications, agreements or discussions with respect to the subject matter hereof. 
 19. 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. 

Signature Page Follows 

  
 6 

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

							
	ACUCELA INC.	 	OTSUKA PHARMACEUTICAL CO., LTD.
				
	 By:
	 	 /s/ RYO KUBOTA
	 	 By:
	 	/s/ TARO IWAMOTO
	 Name:
	 	 Ryo Kubota, M.D., Ph.D.
	 	 Name:
	 	Taro Iwamoto
	 Title:
	 	 President and CEO
	 	 Title:
	 	Representative Director and President
				
		 		 	 By:
	 	/s/ MINORU OKADA
		 		 	 Name:
	 	Minoru Okada
		 		 	 Title:
	 	 General Manager and Operating Officer,
 Division of Dermatologics & Opthalmologicals

  
 7

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