CONTRACT OF EMPLOYMENT

Exhibit 10.16

CONTRACT OF EMPLOYMENT

Codexis, Inc

200 Penobscot Drive, Redwood City

CA 94063

in the following referred to as “Employer” or the “Company”

and

Dr. Peter Seufer-Wasserthal

[Address]

Austria

Austrian Citizenship

in the following referred to as “Employee”

The Employee joins the Company on February 27th, 2006. The first month is classified as probationary month according to Sec 19 (2) AngG.

For 2006 the Employee will be eligible for the Codexis Executive Bonus Plan. The bonus will be paid out in the form of stock options or cash, or a combination of cash and stock options, at the discretion of the compensation Committee of the Board of Directors. Payout is based on achievement of both corporate and individual objectives as defined by the CEO and the Board of Directors and subject to the final approval of the Compensation Committee. The dollar value of the bonus payout for the Vice President level will be approximately up to 20% of annual salary, consistent with Codexis’ compensation policy established for other senior executives and subject to confirmation by the Compensation Committee in 2006.

Subject to approval by the Codexis Board of Directors, the Employee will be granted an option to purchase 80,000 shares of stock at an exercise price equal to the fair market value of the shares on the date the option is granted. The shares subject to the option shall vest one fourth or 25% on the first anniversary of the Employee’s employment start date and thereafter shall vest as to 1/48 of the shares subject to the option per month for the following 36 months until the option is 100% vested. The Employee’s stock options will be subject to the terms of the Codexis 2002 Equity Incentive Plan and will be conditioned on the Employee’s acceptance of an appropriate stock option agreement.

The Employee will be eligible for a car allowance amounting to EUR 600 per month for the use of his private car for occupational purposes.

If the Employee is required to travel or incur expenses on the business of the Employer or any group company, these will be reimbursed to him on production of satisfactory vouchers and receipts and completion of the Employer’s expense claims forms. All such expenditure claims must be approved by the Employee’s Manager.

As agreed the regular weekly working time are 40 hours. Saturdays, Sundays, as well as public holidays are non working days; however the Employee is expected to work such additional hours as are required to carry out his duties to the satisfaction of the Employer.

[Address]

Austria

The employment can be terminated by the Employer by the end of each month under consideration of a three months notice period.

The Employee is in the position to terminate the employment by the end of each month with a notice period of three months.

The Employee has a right to paid vacation of 25 working days. The time of consumption has to be agreed upon by the Employer in good time.

unpublished financial information, designs, drawings, innovations, inventions, discoveries, specifications, software, source codes, and personnel information. The Employee agrees that as a condition of his employment with the Company he will sign and comply with the Codexis Confidential Information, Secrecy and Invention Agreement.

All disputes arising out of or in connection with the present Contract shall be finally settled under the Rules of Arbitration of the International Chamber of Commerce by three arbitrators. Each party will appoint one arbitrator and both arbitrators will appoint their chairman. Place of Arbitration shall be Vienna, Austria. The language of the case will be English. Austrian Law shall be applicable.

As Mitarbeitervorsorgekasse (Severance Payments Funds) where according to § 6 Abs 1 BMVG the Severance Payments premiums have to be paid to, the Mitarbeitervorsorgekasse (Severance Payment Funds) VBV Mitarbeitervorsorgekasse AG, 1020 Wien, Donaustraße 49-53 has been chosen.