Extension of Term of Bothell Lease

On January 4, 2017, Acucela Inc., a wholly-owned subsidiary of
Kubota Pharmaceutical Holdings Co., Ltd. (Acucela), and Nexus
Canyon Park LLC (Nexus) entered into an amendment (the Bothell
Lease Amendment) to the Lease Agreement by and between Acucela
and Nexus dated February 13, 2006, as previously amended (the
Bothell Lease), to which Acucela leases approximately 17,488
square feet as laboratory and office space located at 21720 23rd
Drive S.E., Bothell, Washington. to the terms of the Bothell
Lease Amendment, the term of the Bothell Lease was extended to
February 28, 2020, subject to Acucelas right to extend the term
for one additional two year period by written notice to Nexus
given no earlier than 18 months and no later than 12 months prior
to February 28, 2020. Beginning March 1, 2017, the basic annual
rent for the leased premises will be $393,480, payable in equal
monthly installments, and will increase at a rate of three
percent annually. The monthly rent for March 2017 will be abated.

The foregoing summary does not purport to be complete and is
qualified in its entirety by reference to the Bothell Lease
Amendment, which will be filed as an exhibit to the Companys
Annual Report on Form 10-K for the fiscal year ending December
31, 2016.

The information set forth above and referenced under Item 1.01 is
hereby incorporated by reference into this Item 2.03.