Document:

Exhibit 10.15

 Exhibit 10.15 
  
 FULL SERVICE OFFICE LEASE 
  
 THIS FULL SERVICE OFFICE LEASE (this “Lease”) is made this              day
of August, 2003 by and between HAMPTON R & D PROPERTIES, LLC, a Virginia limited liability company (“Landlord”) and LUNA INNOVATIONS INCORPORATED, a Delaware corporation (“Tenant”). 
  
 For and in consideration of their mutual obligations and other good and
valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows: 
  
 1. Definitions. The following terms used in this Lease shall have the following meanings: 
  
 (a) “Additional Rent” shall mean any payment referred to as such in
this Lease and any payment required to be made by Tenant to Landlord under this Lease other than the Base Rent. 
  
 (b) “Base Rent” shall mean the monthly payment of rent to be paid Landlord as provided in paragraph 6 of this Lease. 
  
 (c) “Base Year” shall mean the period beginning as of the Lease
Commencement Date and expiring one calendar year after the Lease Commencement Date. 
  
 (d) “Building” shall mean the Landlord’s office building located at 130 Research Drive in the City of Hampton, Virginia. Unless otherwise specified, the term “Building” shall be deemed to
include the Demised Premises. 
  
 (e) “Common Areas”
shall mean all drive aisles, sidewalks, parking lots, lobbies, hallways, stairways, common entrances, or other common elements designated by Landlord as being for the use in common by all tenants of the Building or of any other building now or
hereafter constructed by Landlord upon property adjacent to the Property. 
  
 (f) “Demised Premises” shall mean the office space to be constructed by Landlord and leased by Tenant. 
  
 (g) “Lease Commencement Date” shall mean the later of October 24, 2003, or the date that the City of Hampton, Virginia issues a temporary
certificate of occupancy concerning the Demised Premises. 
  
 (h)
“Lease Year” shall mean each, successive anniversary of the Lease Commencement Date during the Term. 
  
 (i) “Normal Business Hours” shall mean the hours of 7:00 a.m. to 7:00 p.m., Monday through Saturdays. Sundays and all legal holidays recognized
by the governments of the United States or the Commonwealth of Virginia are excluded from Normal Business Hours. 

 (j) “Plans” shall mean the construction plans and floor plans attached to this Lease as Exhibit
“A”, which have been agreed upon by Landlord and Tenant. 
  
 (k) “Property” shall mean 130 Research Drive, Langley R&D Park, Hampton, Virginia. Unless otherwise specified, the term “Property” shall be deemed to include the Demised Premises, Building, and Common Areas.

  
 (l) “Rent” shall mean the Base Rent and any
Additional Rent payable hereunder. 
  
 (m) “Rules and
Regulations” shall mean the Landlord’s rules and regulations applicable to the Building, as may be amended by Landlord from time to time, and which are attached to this Lease as Exhibit “B”. 
  
 (n) “Term” shall mean the Initial Term and any applicable Renewal
Term of this Lease. 
  
 2. Premises. Landlord leases to
Tenant and Tenant leases from Landlord, the Demised Premises, together with the right and privilege to use all Common Areas. Tenant’s office space shall not exceed 9,935 square feet, measured to BOMA standards by Landlord’s architect,
whose measurement shall constitute the final measurement hereunder. A more detailed description of the office space is outlined in the Plans attached hereto as Exhibit “A”. For purposes of calculating the payment of Rent hereunder,
the parties agree that the office space shall be equal to 9,935 square feet, even though the actual office space may vary according to Tenant’s specifications. 
  
 3. Construction of Demised Premises. Landlord shall construct the Demised Premises in substantial conformity with the
Plans. After the execution of this Lease, Tenant may change the Plans, only if approved by the Landlord. Upon Tenant’s request, Landlord may agree, in its sole discretion, to allow minor deviations and changes in the Plans. However, if Landlord
consents to Tenant’s requested changes, the Lease Commencement Date shall be extended by the number of days Landlord determines shall be reasonably necessary to accommodate those changes. Any changes in the Plans shall be subject to an increase
in cost, which shall be the responsibility of and shall be born by Tenant. If, at any time after execution of this Lease, Landlord determines, in its sole discretion, that construction of the Demised Premises cannot be complete by Landlord prior to
the Lease Commencement Date, Landlord may extend the Lease Commencement Date by giving Tenant written notice thereof. Except as expressly provided by this Lease, Landlord shall have no liability to Tenant for any loss or damage resulting from
Landlord’s failure to construct or Landlord’s delays in construction of the Demised Premises. 
  
 4. Acceptance of Demised Premises. Landlord shall notify Tenant upon the issuance of a temporary certificate of occupancy from the City of Hampton
and Tenant shall be deemed to have accepted the Demised Premises as of the date. Tenant and Landlord shall perform a walk-through inspection of the space prior to Tenant’s occupancy of the Demised Premises, and tenant shall prepare a punch-list
of items required to bring the Demised Premises into substantial conformance with Tenant’s plans. Landlord shall use its best efforts to complete any items required to bring the Demised Premises into substantial conformance with Tenant’s
Plans as soon as reasonably possible following the Lease Commencement Date. Tenant shall execute and deliver a letter to landlord 

  

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confirming the commencement of this Lease in the form attached as Exhibit “C” to this Lease. If the Lease Commencement Date is other than
October 24, 2003, the letter shall include a revised rent schedule reflecting the actual Lease Commencement Date. 
  
 5. Term. Provided that this Lease is not terminated by Tenant in accordance with paragraph 41, the initial term of this Lease shall begin as
of the Lease Commencement Date and shall end on March 31, 2009 (the “Initial Term”). Provided Tenant is not in default of this Lease, Tenant shall have the option to renew this Lease for one (1) renewal term of three
(3) years (the “Renewal Term”). Tenant shall exercise any of its rights of renewal hereunder by giving Landlord written notice of the exercise of its option at least one hundred twenty (120) days prior to the expiration of any
Term of this Lease, time being of the essence for Tenant’s exercise of any such option to renew. Landlord shall provide a rent concession during the period of free rent, beginning as of the Lease Commencement Date and ending on March 31,
2004. 
  
 6. Rent. Rent shall be payable in advance of the
first day of every calendar month during the Term, without offset by Tenant or demand by Landlord having been made. Rent shall be payable at the office of Landlord located at 4016 Holland Boulevard, Chesapeake, Virginia 23323, or at such other place
as Landlord may direct from time to time. Any Rent payable during a partial calendar month shall be prorated on a daily basis for that month and, if any Term begins on other than the first day of a calendar month, then Rent for that month only shall
be due and payable as of the date that Term begins, all future payments of Rent becoming due on the first day of every calendar month thereafter. Rent during the Initial Term and Renewal Term of this Lease is payable according to the following
schedule and is based upon a base rate of $8.90 per square foot, plus $4.60 per square foot in operating expenses and taxes. In addition to these amounts, Tenant may be responsible for monthly payment of Adjusted Expenses, as set forth in
paragraph 13 below. 
  

												
	 	  	 Period

	  	Annual

	  	PSF

	  	Monthly

	Initial Term
	Free	  	 Oct. 24, 2003 - Mar. 31, 2004
	  	$	0	  	$	0	  	$	0
	Yr. l	  	 Apr. 1, 2004 - March 31, 2005
	  	$	134,122.50	  	$	13.50	  	$	11,176.88
	Yr. 2	  	 Apr. 1, 2005 - Mar. 31, 2006
	  	$	135,513.40	  	$	13.64	  	$	11,292.78
	Yr. 3	  	 April 1, 2006 - March 31, 2007
	  	$	136,804.95	  	$	13.77	  	$	11,400.41
	Yr. 4	  	 April 1,2007 - March 31, 2008
	  	$	138,195.85	  	$	13.91	  	$	11,516.32
	Yr. 5	  	 April 1,2008 - March 31, 2009
	  	$	139,586.75	  	$	14.05	  	$	11,632.23
	
	Renewal Term
	Yr. 6	  	 April 1, 2009 - March 31, 2010
	  	$	140,977.65	  	$	14.19	  	$	11,748.14
	Yr. 7	  	 April 1, 2010 - March 31, 2011
	  	$	142,368.55	  	$	14.33	  	$	11,864.05
	Yr. 8	  	 April 1, 2011 - March 31, 2012
	  	$	143,759.45	  	$	14.47	  	$	11,979.95

  
 7. Use. The
Demised Premises shall be used only for general office and research & development laboratory use and for no other purpose without Landlord’s prior written consent, which may be withheld by Landlord for any reason. All Common Areas
shall be used only for their intended purposes and subject to Landlord’s Rules and Regulations. Tenant shall use the Demised Premises and Common Areas in accordance with all federal, state, and local laws, rules, regulations, codes, and
ordinances. Tenant shall not commit waste of the Demised Premises, Common Areas, or Building, nor shall Tenant use the same in any manner which would constitute a nuisance or otherwise interfere with the rights of Landlord or other tenants of the
Building. 
  

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 8. Services. Landlord shall furnish the following services to Tenant, during Normal Business
Hours, unless otherwise specified and without additional charge, except as agreed in this Lease: (i) janitorial and cleaning service (Monday through Friday only); (ii) water, sewer, and natural gas, (iii) electricity for lighting,
ordinary business machines and laboratory equipment, specifically 6-8 digital oscilloscopes and data acquisition systems; 15 desktop computers and associated peripheral devices; ultrasonic immersion scan tank; 5-6 benchtop ultrasonic test systems;
power amplifiers; soldering stations; air compressor; drill press; knee mill, metal lathe; sanders and grinders; and benchtop, ductless fume hood; (iv) and heating and air conditioning during Normal Business Hours in such seasons of the year as
the same shall be reasonably necessary. In the event of interruption or suspension of any service, howsoever caused, Landlord shall restore such service with reasonable dispatch, subject to the provisions of paragraph 13 hereof with regard to
Tenant’s repairs. Tenant shall not use any method of heating or cooling the Demised Premises other than that provided by Landlord. Tenant may obtain electricity, heating and air conditioning services, for periods other than Normal Business
Hours, by making arrangements with Landlord’s property manager. Charges for electricity and heating and air conditioning used by Tenant during hours other than Normal Business Hours shall be charged at the rate of $25.00 per hour for use of the
office area (zones 1-7) billable in minimum one-hour increments, or $10.00 per hour for use of the Laboratory and warehouse areas (zones 8-10) billable in minimum twelve-hour increments. Payment for the hours other than Normal Business Hours shall
be due as Additional Rent for the month following the month during which Landlord delivers an invoice to Tenant’s agent or designee for such charges. Landlord shall provide, along with its invoice, a copy of a statement showing the number of
hours of Tenant’s excess electricity, heating and air conditioning consumption. Tenant may elect, prior to full execution of this Lease, to pay for its own electrical and janitorial services, by giving written notice to Landlord. In the event
Tenant elects to pay for its own electrical and janitorial services, Tenant shall cause electricity to be monitored by a separate meter installed for that purpose and shall provide Landlord satisfactory evidence that it has entered into a contract
for janitorial services reasonably acceptable to Landlord. 
  
 9.
Alterations. Tenant shall make no structural alterations, additions, or improvements to the Demised Premises without Landlord’s prior written consent, which shall not be unreasonably withheld. Any permitted alterations, additions, or
improvements shall (a) be performed at Tenant’s sole cost and expense; (b) be performed according to plans prepared by Tenant’s professional architect or engineer and approved by Landlord and its architect or engineer;
(c) be performed by duly licensed and qualified contractors, bonded and insured in the Commonwealth of Virginia; (d) be performed in a good and workmanlike manner using materials equal in quality and kind to those used in construction of
the Building; (e) be completed in compliance with all federal, state, and local laws, regulations, ordinances and codes including, but not limited to, the American with Disabilities Act, building codes, and fire codes; and (f) with the
sole exception of Tenant’s movable office furniture and trade fixtures, shall become the sole property of Landlord upon termination or expiration of this Lease. All damage and injury to the Demised Premises, its fixtures, appurtenances and
equipment, and to the Building, its fixtures, appurtenances and equipment, caused by Tenant, its agents, employees or contractors shall be repaired, restored or replaced promptly to Landlord’s satisfaction by Tenant at Tenant’s sole cost
and expense. 
  

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 10. Liens. Tenant shall permit no voluntary or involuntary liens, mortgages, deeds of trust,
mechanic’s or materialmen’s liens, or other encumbrances to attach to the Property. In the event any lien should arise because of the acts of Tenant, its agents, or employees, Tenant shall immediately satisfy, discharge or settle such
liens within thirty (30) days of the date such lien arises. If Tenant fails to satisfy, discharge or settle any such lien, Landlord may, without any obligation to do so and reserving its rights under this Lease, satisfy, discharge or settle
such lien on Tenant’s behalf and Tenant shall pay as Additional Rent, all of Landlord’s costs and expense in doing so, including reasonable attorneys fees and costs associated therewith. 
  
 11. Tenant’s Maintenance. Tenant shall maintained the Demised
Premises and its personal property in good condition at all times. Tenant shall promptly notify Landlord of any and all repairs required to be performed by Landlord hereunder. Landlord shall use its best efforts to make such repairs as soon as
reasonably possible after Tenant has requested the repairs. 
  
 12. Signs. Tenant shall have the right to display its name on the front glass door located at the entrance to the Demised Premises, in a design reasonably acceptable to Landlord. Tenant shall further have the right to display its
name on the monument sign serving the Building, subject to the rights of existing tenants, availability of space, and to Landlord’s approval of the design and location of the sign, which shall not be unreasonably withheld. Tenant’s rights
with regard to signs shall be subject to applicable building codes, zoning ordinance, and restrictive covenants applicable to the Property. Initial costs and expenses associated with Tenant’s signs including, without limitation, all permits,
approvals, or variances, shall be borne by Landlord. 
  
 13.
Operating Expenses and Taxes. 
  
 (a) Expenses and
Adjusted Expenses. “Base Year Expenses”, as used herein, means the greater of $4.60/square foot/year or the actual total of Tenant’s Proportionate Share of Operating Expenses and Taxes during the Base Year. The term
“Expenses”, as used herein, shall mean “Operating Expenses” and “Taxes”, as both of those terms are defined below. Beginning as of the first day of the second calendar month following the Base Year, and continuing for
every month thereafter during the Term, Tenant shall be responsible for payment, as Additional Rent due on a monthly basis, any positive difference between Tenant’s Proportionate Share of actual Expenses, calculated on a monthly basis, and the
Base Year Expenses, calculated on a monthly basis (the “Adjusted Expenses”). The Adjusted Expenses shall be measured and determined by Landlord on a monthly basis, and Landlord shall send Tenant a statement showing the amount of Adjusted
Expenses due from Tenant. In no event shall Tenant be responsible for paying Adjusted Expenses for any particular month in excess of the greater of one percent (1%) or the Consumer Price Index – All Urban Consumers, as published by the
United States Department of Labor, Bureau of Labor Statistics for that month (“CPI”); provided, however, that if any increase in Adjusted Expenses is attributable to changes in Tenant’s business practices including, without
limitation, increased density of office space resulting from Tenant maintaining in excess forty-five (45) employee workspaces in the Demised Premises, the addition of equipment or devices not described in paragraph 7 above, or similar
circumstances, then the Adjusted Expenses due from Tenant shall not be limited. 
  

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 (b) Operating Expenses. “Operating Expenses” shall mean all costs and expenses incurred
by Landlord in each Lease Year in connection with operating, maintaining, repairing, and managing the Demised Premises, Building and Property of which the Demised Premises is a part including, without limitation, the following: 
  
 1. Labor costs, including wages, salaries, social security and employment
taxes, medical and other types of employee insurance, uniforms, training, and retirement and pension plans for personnel at or below the level of property manager and building manager. 
  
 2. Management fees, the cost of equipping and maintaining a management office, accounting and bookkeeping services, legal
fees not attributable to leasing or collection activity, and other customary administrative costs. Landlord, by itself or through an affiliate, shall have the right to directly perform or provide any services under this Lease (including management
services), provided that the costs of any such services shall not exceed the cost that would have been incurred had Landlord entered into an arms-length contract for such services with an unaffiliated entity of comparable skill and experience.

  
 3. The costs of services, including amounts paid to service
providers and the rental costs and purchase costs of parts, supplies, tools and equipment. 
  
 4. Premiums and deductibles paid by Landlord for insurance, including workers compensation, fire and extended coverage, earthquake, general liability, rental loss, elevator, boiler and other insurance carried by
Landlord with respect to the Demised Premises. 
  
 5. Electrical
Costs, as defined below, and charges for water, gas and sewer, but excluding those charges for which Landlord is reimbursed by Tenant or other tenants. “Electrical Costs” means: (a) charges paid by Landlord for electricity;
(b) costs incurred in connection with an energy management program for the Demised Premises; and (c) if and to the extent permitted by law, a fee for the services provided by Landlord in connection with the selection of utility companies
and the negotiation of administrative contracts for electricity, provided that such fee shall not exceed fifty percent (50%) of any saving obtained by Landlord. Electrical Costs shall be adjusted as follows: (i) amounts received by
Landlord as reimbursement for above standard electrical consumption shall be deducted from Electrical Costs and (ii) the cost of electricity incurred to provide overtime HVAC to specific tenants shall be deducted from Electrical Costs.
Increases in Electrical Coots for the Building that are directly attributable to material changes in business operations by other tenants of the Building shall not be factored into Tenant’s Proportionate Share of Expenses for purposes of
Tenant’s payment of Adjusted Expenses hereunder. 
  
 6. If
Landlord incurs Operating Expenses in common with other buildings or properties owned by Landlord, whether by a reciprocal easement agreement, common area agreement, or otherwise, the shared costs and expenses shall be equitably prorated and
apportioned between such properties. 
  
 7. Operating Expenses
shall not include the following expenses: the cost of capital improvements; depreciation; interest; principal payments of mortgage and other non-operating debts of Landlord; the costs of repairs or other work to the extent Landlord is reimbursed by
insurance or condemnation proceeds; costs in connection with leasing space in the Building to tenants other than Tenant including brokerage commissions, lease concessions, and costs incurred with the sale and refinancing of the building; or
organizational expenses associated with the creation and operation of the entity which constitutes the Landlord. 
  

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 (c) Taxes. “Taxes” shall mean: (1) all real estate taxes and other assessments on
the Building or Property, without limitation, special assessments; (2) personal property taxes for property that is owned by Landlord and used in connection with the operation, maintenance, and repair of the Building or Property; and
(3) all costs and fees incurred with seeking reductions, if requested by the Tenant, in any tax liabilities related to the Property. 
  
 (d) Tenant’s Proportionate Share. The term “Tenant’s Proportionate Share” shall mean the Tenant’s share of Expenses, as
determined by multiplying the total of Expenses or any increases in Expenses by a fraction, the numerator of which is the gross square feet of floor area, leased to Tenant and the denominator of which is the gross square feet of rentable floor area
in the entire Building. All costs shall be aggregated and a statement provided to Tenant annually. Tenant shall be responsible for payment of Adjusted Expenses only in the event of an increase in Expenses. 
  
 14. Rules and Regulations. Tenant, its agents, employees, guests and
invitees shall faithfully observe Landlord’s Rules and Regulations, which may be amended and/or supplemented from time to time by Landlord without Tenant’s consent, so long as the Rules apply equally to all tenants of the Building, and so
long as changes to the Rules are reasonable and do not inhibit Tenant’s business. 
  
 15. Sublease and Assignment. 
  
 (a) Neither Tenant nor any of its permitted assigns or sublessees shall assign or sublet this Lease or any portion of the Demised Premises without Landlord’s consent, which may be withheld by Landlord for any reason. For purposes of
this paragraph, any transfer by sale, encumbrance or otherwise of a majority of Tenant’s issued and outstanding stock (if Tenant is a corporation), or any lawful levy or sale on execution or other legal process, or any assignment or sale in
bankruptcy or insolvency or under any compulsory procedure, shall be deemed an assignment within the meaning of this Lease. 
  
 (b) Notwithstanding the preceding paragraph, Tenant shall have the right to sublet any unused portion of the Demised Premises, not to exceed 3,000 square
feet, to a subtenant approved and accepted in writing by Landlord, whose approval and acceptance shall not be unreasonably withheld. Prior to approval and acceptance of any permitted subtenant, the subtenant shall be required to acknowledge and
agree to abide by the Tenant’s obligations under this Lease, shall provide an insurance policy meeting the requirements of paragraph 17 of this Lease, shall use the Demised Premises for the same or similar purpose as Tenant, and shall
enter into a written agreement with Tenant for the use of that portion of the Demised Premises. No sublease approved by Landlord shall relieve Tenant of any of its obligations to Landlord under this Lease. Tenant may engage a broker to assist with
finding a subtenant for a portion of the Demised Premises, and Tenant may post a sign in a place and design reasonably acceptable to Landlord, advertising that a portion of the Demised Premises is available for sublease. 
  

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 (c) If Tenant shall sublease or assign its rights hereunder, Tenant shall pay Landlord fifty percent
(50%) of any profit Tenant receives from the sublease. Tenant’s profit shall be measured by subtracting the amount of Rent paid by Tenant hereunder, calculated based upon its rate of rent per square foot, from the amount of rent received
by Tenant under any sublease or assignment, calculated upon the rate of rent received per square foot by Tenant; provided, however, that Tenant may deduct any cost of Tenant’s legal fees (not exceeding $1,000), brokerage fees (not exceeding
market rates for any brokerage services, or improvements made on behalf of any subtenant or assignee. 
  
 16. Indemnification. Except to the extent caused by the gross negligence or willful misconduct of Landlord, its agents or employees, Tenant shall
indemnify and hold Landlord harmless from and against any and all liabilities, obligations, damages, claims, actions, settlements, costs, charges, or expenses including, without limitation, reasonable attorney’s fees and costs, which may be
imposed upon or incurred by Landlord as a result of or in connection with any damage or injury occurring with the Demised Premises to any party or property because of the negligent or intentional acts or omissions of Tenant, its agents, employees,
guests and invitees. 
  
 Except to the extent caused by the
negligence or willful misconduct of Tenant, its agents or employees, Landlord shall indemnify and hold Tenant harmless from and against any and all liabilities, obligations, damages, claims, actions, settlements, costs, charges, or expenses
including, without limitation, reasonable attorney’s fees and costs, which may be imposed upon or incurred by Tenant as a result of or in connection with any damage or injury occurring with the Building, Demised Premises or to any party or
property because of the negligent or intentional acts or omissions of Landlord, its agents, employees, guests and invitees. 
  
 Tenant shall give to Landlord immediate notice of any accident to or occurring in and of any known defects in the Demised Premises or the Building,
including fire, accident involving a person, and accident to or defects in the water pipes, electric wires and heating and cooling apparatus, which defects shall thereupon be remedied by Landlord with due diligence. 
  
 17. Insurance. Tenant shall at all times and at his own cost and
expense, carry with a company or companies reasonably satisfactory to Landlord, public liability insurance on the Demised Premises and adjoining Common Areas, with limits of not less than Five Hundred Thousand Dollars ($500,000.00) for injury or
death to one person and One Million Dollars ($1,000,000.00) for injury or death to more than one person, and property damage of Fifty Thousand Dollars ($50,000.00) for each accident. Tenant’s insurance policy or policies shall contain a
provision insuring Tenant against all liability which Tenant might have under the indemnity provisions set forth in this Lease and shall deliver certificates of coverage to Landlord. Tenant’s insurance policies shall also contain an endorsement
that they may not be terminated or cancelled without thirty (30) days written notice to Landlord, and shall name the Landlord as an additional insured but solely with respect to those matters for which Tenant is required to provide
indemnification under this Lease. If Tenant fails to provide such insurance, Landlord may, but shall not be required to, obtain such insurance on Tenant’s behalf and collect the cost thereof as Additional Rent. 
  

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 Tenant, its agents, employees, guests or invitees, shall store their property in, and shall occupy and
use the Demised Premises and all other portions of the Building solely at their own risk. Tenant hereby releases Landlord from all claims of every kind, including loss of life, personal or bodily injury, damage to merchandise, equipment, fixtures or
other property, or damage to businesses or for business interruption, arising, directly or indirectly, out of or from or on account of such occupancy and use of the Demised Premises, or resulting from any present or future condition or state of
repair thereof. 
  
 Landlord shall maintain “All Risk”
property insurance on the Building at replacement cost value, as reasonably estimated by Landlord. Except as specifically provided to the contrary, the limits of either party’s insurance shall not limit such party’s liability under this
Lease. 
  
 18. Subrogation. Notwithstanding anything in
this Lease to the contrary, Landlord and Tenant hereby waive and shall cause their respective insurance carriers to waive, any and all rights of recovery, claim, action or causes of action against the other and their respective trustees, principals,
beneficiaries, partners, officers, directors, agents, and employees, for any loss or damage that may occur to Landlord or Tenant or any party claiming by, through, or under Landlord or Tenant, as the case may be, with respect to the Tenant’s
property, the Building, the Demised Premises or any contents thereof, including all rights of recovery, claims, actions or causes of action arising out of the negligence of Landlord, its agents, employees, guests or invitees or Tenant, its agents,
employees, guests or invitees, which loss or damage is covered by insurance. 
  
 19. Damage, Destruction and Restoration. If the Demised Premises is damaged by fire, elements, or other casualty to such an extent that more than thirty (30) days shall be required to restore the Building
or restoration cannot be completed solely with proceeds provided by any insurance policy, Landlord shall have the right to cancel this Lease by giving Tenant written notice of cancellation within thirty (30) days after such damage occurs. If
the Demised Premises is damaged by fire, elements, or other casualty to such an extent that more than ninety (90) days shall be required to restore the Demised Premises, either Landlord or Tenant shall have the right to cancel this Lease by
giving the other written notice of its cancellation within thirty (30) days after such damage occurs; provided, however, that if such damage is the result of the intentional act or omission to act of Tenant, its servants, employees, agents or
visitors, Tenant shall forfeit its option to cancel. If this Lease is not cancelled as aforesaid, Landlord shall cause the Demised Premises to be restored with reasonable dispatch and the rental due shall be equitably and proportionately abated,
according to the loss of use of the Demised Premises, from time of such damage until the Building and the Demised Premises shall have been restored to tenantable condition. 
  
 20. Condemnation Proceedings. If the whole or any part of the Demised Premises shall be taken or condemned (or sold
pursuant to the threat of such taking) by a competent authority for any public or quasi-public use or purpose, and the condemnation or threat of condemnation shall materially impair the rights of either party in the Demised Premises, then this
Lease, at the option of either party, shall terminate from the date when possession is delivered to the condemning authority. In the event the Demised Premises are similarly taken, condemned or sold, in whole or part, then this Lease shall, at the
option of either party hereto, terminate on the date when possession is delivered to the condemning authority. In no event shall Tenant have any claim against Landlord for the value of any unexpired term of this lease, but Rent shall be abated as of
the date of such termination. 
  

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 21. Default. Tenant shall be in default of this Lease upon the occurrence of any of the following
events of default: (a) Tenant’s failure to pay all or any portion of Rent due under this Lease within five (5) days of the date it is due; (b) Tenant’s failure to comply with any term, provision or covenant of this Lease,
other than the payment of Rent, if the failure is not cured within thirty (30) days of Tenant’s receipt of written notice from Landlord of such failure; provided, however, that Tenant shall not be in default of this Lease if the failure
reasonably requires more than thirty (30) days to cure and Tenant has undertaken such cure and continues to diligently pursue such cure; (c) Tenant violates any term, provision, or covenant of this Lease more than three (3) times in
any twelve (12) month period, regardless of Tenant’s previous cure of the violation; (d) Tenant declares bankruptcy, becomes insolvent, makes an assignment for the benefit or creditors, engages in any fraudulent transfer, or admits in
writing its inability to pay its debts when due. 
  
 22.
Remedies. In the event of Tenant’s default under this Lease, Landlord shall have the right provided by law, to re-enter the Demised Premises peaceably or by force, and to take possession of the Demised Premises and terminate this Lease.
Neither termination of this Lease nor Landlord’s recovery of possession shall deprive Landlord of any action against Tenant for possession, rent (accrued or to accrue) or damage, nor shall it constitute a waiver of any lien of Landlord upon the
property of the Tenants. Without having any obligation so to do, Landlord may, in the event of default, re-let the Demised Premises in whole or in part for the unexpired portion of the Term and Tenant shall reimburse Landlord for all of its expenses
in connection with such re-taking, re-letting, and any loss of rend including, without limitation, all court costs and reasonable attorney’s fees. 
  
 23. Landlord’s Liability. Except for liabilities otherwise expressly assumed by Landlord in this Lease, it is agreed that Landlord shall not
be liable or responsible in any way for damage to or loss or theft of property sustained in or about the Demised Premises or the Building. The obligations of Landlord hereunder shall be binding only upon its interest in the project, and not upon any
other assets of Landlord or any partner of Landlord personally. Tenant agrees to look solely to the equity of Landlord in the Project for the satisfaction of any remedies of Tenant or judgment obtained by Tenant as a result of a breach by Landlord
of this lease. Such exculpation of liability shall be absolute and without any exception. 
  
 24. Quiet Enjoyment. Landlord covenants and agrees that upon Tenant’s paying the rent and observing and performing all the covenants, conditions and provisions, on Tenant’s part to be observed and
performed, Tenant may peaceable and quietly enjoy the Demised Premises. Tenant’s interest in the Demised Premises is subject to all easements, covenants, and restrictions applicable to the Property, as well as all prior leases, mortgages, liens
or other encumbrances or record. 
  
 25. Surrender. Upon
expiration or termination of this Lease, Tenant shall remove all Tenant’s personal property, furniture, trade fixtures and equipment (“Tenant’s Property”) from the Demised Premises and shall surrender the Demised Premises to
Landlord, broom clean and in good order, condition and repair, ordinary wear and tear excepted. If Tenant fails to remove any of Tenant’s Property from the Demised Premises within five (5) days of expiration or termination of this Lease,
then Landlord shall be entitled (but not obligated) to remove and store Tenant’s Property at Tenant’s sole cost and expense. Landlord shall not be responsible for the value, preservation or safekeeping of Tenant’s Property. In
addition, if Tenant fails to remove Tenant’s Property from the 

  

 - 10 - 

 
Premises or storage within thirty (30) days after written notice, Landlord may deem all or any part of Tenant’s Property to be abandoned, and title
to Tenant’s Property shall be deemed to be immediately vested in Landlord. No act or thing done by Landlord or Landlord’s agents or employees during the term hereof shall be deemed a surrender of the Demised Premises, save and except an
agreement to accept such surrender in writing and signed by Landlord. If Tenant fails to surrender the Premises at the expiration or earlier termination of this Lease, occupancy after the termination or expiration shall be that of a tenancy from
month-to-month. Tenant’ s occupancy of the Premises during the holder shall be subject to all the terms and provisions of this Lease, and Tenant shall pay an amount (on a per month basis) equal to one hundred fifty percent (150%) of the
rental amount due during the month of expiration or termination. Tenant and Landlord agree that failure of the other party to insist upon strict observance of any of the terms or conditions hereof at any time shall not be deemed a waiver of its
right to insist on strict observance thereafter. 
  
 26.
Mortgages, Deeds of Trust. This Lease shall be subordinate to the lien of any deed of trust, mortgage or lien resulting from any method of financing or refinancing now or hereafter in force against the Demised Premises or the Building, and to
any and all advances made under such mortgages (“collectively, “Mortgages”). The provisions of this paragraph shall be self-operative and no further instrument of subordination shall be required to evidence such subordination. Tenant
covenants and agrees, however, to execute and deliver, upon demand (however not more than once in any 12 month period), such further instruments subordinating this Lease to any Mortgage, as reasonably required by Landlord or Landlord’s lenders,
within ten (10) days of having received written notice thereof. In addition, within ten (10) days after written request by either party, the other party shall execute, acknowledge and deliver to the requesting party or its designee, a
certificate providing that the following are true, except as otherwise set forth in the certificate: that this Lease is in full force and effect and has not been modified, supplemented, or amended; that to the best of the parties actual knowledge
all conditions and agreements to be performed by the requesting party have been satisfied or performed; and that all Rent and other payments due from either party have been paid as of the date set forth in the certificate. 
  
 27. Notice. Any notice herein provided to be given by Tenant to
Landlord shall be deemed to be given if delivered in person to Landlord or when duly posted in United States registered or certified mail addressed to Hampton R & D Properties, LLC, 4016 Holland Boulevard, Chesapeake, Virginia 23323 Attn:
Mr. Tom Atherton. Any notice herein provided from Landlord to Tenant shall be deemed to be given if delivered in person to Tenant or when duly posted in United States mail addressed to Tenant at the Demised Premises. 
  
 28. Entry by Landlord. Landlord and Landlord’s agents, employees
and independent contractors shall have the right to enter the Demised Premises at all reasonable times following not less than 24 hours prior written notice, to examine the same and to show them to prospective purchasers or during the last 120 days
of the lease if Tenants renewal options have not been exercised, lessees of the Building, or any portion thereof, and to make such reasonable decorations, repairs, alterations, or additions as Landlord deems desirable, and Landlord and
Landlord’s agents, employees and independent contractors shall be allowed to take all material into and upon the Demised Premises that may be reasonably required therefor without the same constituting an eviction of Tenant in whole or in part.
The rent shall abate while such decorations, repairs, alterations, improvements, or additions are being made, to the extent Tenant experiences a loss or 

  

 - 11 - 

 
interruption of the use of the Demised Premises. During the 120 days prior to the expiration of this lease, Landlord may exhibit the Demised Premises to
prospective tenants thereof, and place upon the Demised Premises the usual notices “FOR LEASE”, which notices Tenant shall permit to remain thereon without molestation. 
  
 29. Choice of Law. This Lease shall be governed in accordance with the laws of the Commonwealth of Virginia without
reference to its principles of choice of law. All disputes arising under this Lease, if brought into court, shall be brought in either the Circuit Court of the City of Hampton, Virginia or the federal courts of the Eastern District of Virginia, and
the parties to this Lease voluntarily submit themselves to the jurisdiction of such courts. 
  
 30. No Oral Modifications. This Lease shall in no way be modified or amended, except as set forth in a writing signed by each of the parties hereto. 
  
 31. Entire Agreement. This Lease represents the entire agreement of the parties concerning the subject matter of this
Lease. All prior negotiations, memoranda, correspondence, drafts, and communications have been reduced to the express terms of this Lease. All exhibits and attachments referenced in this Lease and/or affixed to this Lease are incorporated by
reference. 
  
 32. Rules of Construction. This Lease has
been prepared and drafted by counsel representing both parties. Therefore, the parties agree that this Lease shall not be subject to any presumptions or rules of construction or interpretation of property law or contract law that would favor or
impair the rights of the drafting party. 
  
 33. Waiver of
Jury. (DELETED) 
  
 34. Headings. The headings and
captions appearing at the beginning of each paragraph of this lease are intended only for convenience of reference and are not to be considered in construing this Lease. 
  
 35. Successors and Assigns. The covenants, conditions and agreements contained in this lease shall bind and inure to
the benefit of Landlord and Tenant and their respective successors and assigns. Upon conveyance of the property of which the Demised Premises is a part, Landlord shall be released of any and all its personal obligations hereunder, the same to be
binding upon the purchaser of the property. 
  
 36.
Broker’s Commission. Landlord shall pay a 6% Broker’s Commission at the execution of this Lease, and for any Renewal Term exercised by Tenant hereunder. One half (3%) of the commission shall be paid to Mid-Atlantic Commercial,
and one half (3%) of the commission shall be paid to Advantis Real Estate Services. Tenant represents and warrants that it has incurred no claims for brokerage commissions or finder’s fees in connection with the execution of this Lease,
except as noted above, and each of the parties agrees to indemnify the other against and hold it harmless from all liabilities arising from any such claim (including, without limitation, the reasonable cost of attorney’s fees in connection
therewith). 
  
 37. Use and Compliance with Law. Landlord
represents and warrants that the Building shall be constructed and shall remain during the term of the Lease in accordance and compliance 

  

 - 12 - 

 
with all applicable federal, state and local laws, orders, regulations and ordinances including but not limited to building codes. Any noncompliance or
violation of this representation and warranty shall be cured by Landlord at its sole cost and expense, the expense of which shall not be chargeable to Tenant as an operating expense of the Building. Landlord, at Landlord’s sole expense, shall
comply with all laws, rules, orders, ordinances, directions, regulations and requirements of federal state, county and municipal authorities now in force or which may hereafter be in force, which shall impose any duty upon the Landlord or respect to
the occupation or alteration of the Demised Premises, except for compliance issues which are a direct result of Tenant’s specific and unique use of the Building. 
  
 38. Force Majeur. Landlord shall not be deemed to be in default of this Lease with respect to the performance of any
terms, covenants or conditions of this Lease if Landlord’s failure to perform such terms, covenants or conditions is due to any strike, lockout, labor dispute, civil commotion, war-like operation, terrorist act, invasion, rebellion,
governmental regulations or controls, inability to obtain materials and services, act of God, fire, or other casualty or cause beyond the reasonable control of Landlord. 
  
 39. Security Systems. Tenant shall have access to the Demised Premises twenty-four (24) hours a day, seven
(7) days a week. Landlord shall furnish a proximity card reader and fifty (50) access cards in connection with this Lease. 
  
 40. Parking. Tenant shall have the right, during the Term, to use fifty (50) parking spaces located upon the Property, fifteen (15) of
which shall be marked reserved for Tenant’s exclusive use. Three (3) of Tenant’s reserved spaces shall be located near the front door of the Demised Premises, and twelve (12) of the reserved spaces shall be located nearest to the
exterior front door of the Demised Premises. In accordance with the Landlord’s Rules and Regulations, Landlord reserves the right, from time to time, to designate areas in which Tenant, its employees, agents, and visitors may park. 

 
 41. Early Termination. Tenant shall have the right at any time,
following the third anniversary of the Lease Commencement Date, to terminate this Lease, provided that Tenant shall give Landlord at least one hundred twenty (120) days prior written notice of termination and shall pay Landlord an early
termination fee of Thirty Thousand Dollars ($30,000) payable as of the termination date. In the event Tenant moves into another property owned by Landlord, Landlord shall waive the foregoing early termination fee. 
  
 42. Landlord’s Acceptance. The Landlord’s obligations set
forth in this Lease shall be conditioned upon Landlord’s execution and acceptance of this Lease and upon Landlord’s review and approval of Tenant’s financial information. 
  

 - 13 - 

 IN WITNESS WHEREOF the parties have caused their duly authorized representatives to execute this Lease on
behalf of their respective companies as of the day and year first above written. 
  

			
	LANDLORD:
	
	HAMPTON R & D PROPERTIES, LLC
		
	By:	 	 /s/ Thomas H. Atherton, III

	 	 	Thomas H. Atherton, III
	 	 	Manager
		
	TENANT:	 	 
	
	 LUNA INNOVATIONS INCORPORATED,
 a Delaware
corporation

		
	By:	 	 /s/ Garnett S. Linkous

	 	 	Garnett S. Linkous
	 	 	Chief Administrative Officer

 EXHIBIT A 
  

PLANS 

 EXHIBIT B 
  

RULES AND REGULATIONS 
  

	(a)	The entry and passages may be used for ingress and egress only. 

  

	(b)	Space for admitting natural light into any public or common areas of the Building shall not be covered or obstructed by Tenant. Tenant shall be allowed to install approved window
treatments inside windows within Tenant’s space. 

  

	(c)	All plumbing fixtures including, without limitation, all toilets, urinals, sinks and fountains, shall be used only for their intended purposes. Tenant shall dispose of no grease,
oil, paper, paper towels, napkins, feminine products, or similar items in the plumbing fixtures, and Tenant shall bear all costs and expenses resulting from Tenant’s misuse of such fixtures. 

  

	(d)	Landlord shall provide Tenant space on any directory Landlord maintains for all tenants, subject to Landlord’s right to determine the placement and design of all lettering and
materials to be placed upon such sign. 

  

	(e)	No sign, advertisement, notice, or the like, shall be used on the Building exterior without Landlord’s permission and, if permitted by Landlord, shall be of color, size and
style, and be done at Tenant’s expense by such party, as Landlord may determine. If Tenant violates the foregoing, Landlord may remove the violation without liability, and may charge all reasonable costs and expenses incurred in so doing to
Tenant. 

  

	(f)	Tenant shall not throw or permit to be thrown anything out of windows or doors or down passages or elsewhere in the Building, or bring or keep any pets or other animals therein, or
commit or make any indecent or improper act or noise, or do anything which will in any way obstruct, injure, annoy or interfere with other tenants or those having business with them, or affect any insurance rate on the Building or violate any
provision of any insurance policy on the Building, or conflict with any rule or ordinance of the Board of Health, Fire Department, or any governmental authority and Tenant shall comply with all governmental laws, orders, and regulations with respect
to Tenant’s use or occupancy of the Demised Premises. 

  

	(g)	Tenant shall not permit cleaning by any person other than the janitorial and cleaning staff hired by Landlord. 

  

	(h)	Landlord will furnish Tenant with one key per 1,000 sf of the Demised Premises and each lock set. All additional keys will be at Tenant’s expense. All such keys in
Tenant’s possession or known by Tenant to be in existence shall be delivered to Landlord at the termination of this lease. Unless as approved and accepted by the Landlord, Tenant shall not place any additional lock on any door in the building,
and doors, leading to the corridors or main halls shall be kept closed at all times except as they may be used for ingress and egress, without Landlord’s written permission. 

	(i)	The Demised Premises shall not be defaced in any way. There shall be no boring or cutting for wires, and no change in electric fixtures or other appurtenances of the Demised
Premises shall be made. 

  

	(j)	For the general welfare of all Tenants and security of the Building, Landlord may require all persons entering and/or leaving the building on Sundays and/or holidays and on other
days between the hours of 7:00 p.m. and 7:00 a.m. to register with the building’s property manager identifying his destination in the Building, and the time of entry and actual or anticipated departure. Landlord may deny entry during such hours
to any person who fails satisfactorily to identify himself. 

  

	(k)	No bicycles or vehicles of any kind shall be brought into or kept in or about the Demised Premises or the common areas (lobby or halls) of the building, and no cooking shall be done
or permitted by Tenant on the Demised Premises. Tenant shall not cause or permit any unusual or objectionable odors to be produced upon or emanate from the Demised Premises. Tenant may allow vehicles into the Work Areas/Laboratories (as defined on
Exhibit A). 

  

	(l)	Tenant shall not engage or pay any employee on the Demised Premises, except those actually working for Tenant on the demised premised, nor advertise for laborers giving an address
at the Demised Premises. It is understood that unless specifically authorized by Agent, employees of Landlord shall not perform nor be asked to perform work other than their regularly assigned duties. 

  

	(m)	Landlord will furnish electric light bulbs or fluorescent tubes in the fixtures at the time of the original letting of the Demised Premises, but Landlord shall not furnish such
bulbs or tubes thereafter. 

  

	(n)	Canvassing, soliciting and peddling in the Building is prohibited and Tenant shall cooperate to prevent the same. 

  

	(o)	If parking spaces are provided, Landlord shall have no responsibility whatsoever to anyone whomsoever in respect thereto. All vehicles used by Tenant’s employees (including
officers) shall be parked only in such area as may be designated by Landlord for the purpose. Tenant shall furnish to Landlord the license number of all such vehicles. Landlord reserves the right to remove by towing or otherwise any such vehicle
parked in any area not so designated and to charge the cost thereof to Tenant. 

  

	(p)	Tenant shall not place a load on any floor of the Demised Premises exceeding the floor loads as described on Exhibit A. Landlord reserves the right to prescribe the weight and
position of all safes and heavy equipment. 

 EXHIBIT C 
  

LEASE COMMENCEMENT LETTER 
  
 October             , 2003 
  
 Thomas H. Atherton, III, Manager 
 Hampton R
& D Properties, LLC 
 4016 Holland Boulevard 
 Chesapeake,
Virginia 23323 
  

	 	Re:	Commencement of Lease Between Luna Innovations, Inc. (“Tenant”) and Hampton R & D Properties, LLC (“Landlord”) 

  
 Dear Mr. Atherton: 
  
 This letter is to confirm that Tenant has accepted its office space of
approximately 9,935 square feet in the building known as 130 Research Drive, Hampton, Virginia (the “Demised Premises”), pursuant to that certain Full Service Office Lease dated
                    , 2003, by and between Landlord and Tenant. The Tenant confirms that the “Lease Commencement Date”, as defined
in the Lease, shall be                     . Tenant further confirms that it has completed a walk-through inspection of the Demised Premises
and accepts the Demised Premises as of the date of this letter, without objection of any kind to their present conditions. 
  
 Please acknowledge the Landlord’s receipt and agreement with the above-referenced Lease Commencement Date, and return one originally-executed copy of
this letter to me. 
  

			
	Very truly yours,
	
	 Luna Innovations Incorporated,
 a Delaware
corporation

		
	 By:
	 	 /s/ Garnett S. Linkous

	 	 	Garnett S. Linkous
	 	 	Chief Administrating OfficerExhibit 10.16

 Exhibit 10.16 
  
 [LOGO] 
  
 OFFICE SERVICE AGREEMENT 
  
 This Office Service Agreement (this “Agreement”) is made this 19th day of August, 2005, by and between the Center (“us” or “we”) and the Client (“you”) identified in the
following Schedule of Terms. 
  
 Schedule of Terms

  

	Initial	Term: 6 (months)             Start Date: September 1, 2005
            Ending Date: February 28, 2006 

  

							
	 Center:
	  	Tysons Business Center, LLC	  	Client:	  	LUNA INNOVATIONS
	Phone:	  	703/918-4848	  	Phone:	  	540-314-3000
	Fax:	  	703/918-4847	  	Fax:	  	 
	Contact:	  	Cynthia Aungst	  	Contact:	  	Scott Graeff
	Email:	  	caungst@metroffice.com	  	Email:	  	graeffs@lunainnovations.com
				
	Center:	  	 	  	Billing address	  	(if other than at Center):
	Address:	  	8300 Greensboro Drive	  	Address:	  	2851 Commerce Street
	 	  	Suite 800	  	 	  	Blacksburg, VA 24060
	 	  	McLean, VA 22102	  	 	  	 
	 	  	 	  	Contact:	  	 
	 	  	 	  	Phone:	  	 
	 	  	 	  	Fax:	  	 
	 	  	 	  	Email:	  	 

  

	Use:	Business Development Office 

 [enter a
detailed description of business or service in which client will engage in the Center] 
  
 Standard Service Fees: 
  

									
	 Office Number

	  	Approx. Size

	  	Price/mo.

	  	Total

	 31
	  	210 s.f.	  	$	2310.00	  	$	2310.00
	 2
	  	110 s.f.	  	$	1150.00	  	$	1150.00

  

									
	 Service

	  	Quantity

	  	@Price

	  	Total

	 
	 Phone
	  	2	  	75.00	  	$	150.00	*
	 Fax/Modem
	  	1	  	25.00	  	$	25.00	 
	 T-1
	  	2	  	200.00	  	$	200.00	*
	 Kitchen Services
	  	2	  	20.00	  	$	40.00	*
	 Parking
	  	2	  	30.00	  	$	60.00	*
	 Conference Rooms
	  	8 hours	  	.00	  	$	.00	 
	 411 Listing
	  	0	  	3.00	  	$	.00	 

							
	Monthly Standard Service Fee:	  	$	 3935.00	 	 	(sum of office and service totals)
	Refundable Service Deposit:	  	$	3935.00	 	 	 
	Refundable Toll Deposit:	  	$	300.00	 	 	 
	Office Set-up Fee:	  	$	160.00	 	 	(includes 4 office keys, 3 security cards, 1 directory listing)
	Telephone (3)/Fax (1)/Internet (3) Installations:	  	$	750.00	 	 	(additionally includes VM Message Tree Installations/special yearly fee
	Last September Complimented Contract Fee:	  	$	(3935.00	)	 	 
	Total Amount Due at Signing:	  	$	5145.00	 	 	 

  
 Addenda/Other: “TBCL will
compliment 2nd person in Office 31 monthly ($225 value = 1 telephone/vm, 1 internet, 1 kitchen, 1 parking). The
monthly contract fee of $3935 will be complimented for the month of September, 2005. 
  
 Signatures: The Agreement between the Center and the Client consists of this Schedule of Terms, the Terms and Conditions attached hereto and the Rules and Regulations, the current version of which is attached hereto, each of which
you confirm you have read and understood. By executing below, we both agree to be bound by the Agreement in all respects and to perform our respective obligations hereunder. Important Note: The term of the Agreement as set forth above is
subject to the automatic renewal provisions of Paragraph 13 of the Terms and Conditions. Unless you provide the notice required by that provision, your obligation to pay standard service fees does not end with the end of the initial term of
this Agreement. 
  

									
	CENTER:	 	 	 	CLIENT:
					
	By:	 	 	 	 	 	By:	 	/s/    SCOTT GRAEFF /
CFO        
	 	 	 Kathlene Buchanan
 President/Manager
	 	 	 	 Name/Title
	 	 
	 	 	 	 	 	 	 Date:
	 	 8/24/05

			
	 	 	 	 	GUARANTOR:
					
	 	 	 	 	 	 	 [By:]
	 	 
					
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 Print Name and, if applicable, Title

	 	 	 	 	 	 	 Date:
	 	 

  

 -2- 

 OFFICE SERVICE AGREEMENT 
 Terms and Conditions 
  
 The following Terms and Conditions are a material part of the Office Service Agreement by and between the Center and Client identified on the Summary of Terms to which this is attached. 
  
 1. OFFICES; STANDARD SERVICE FEES. We will provide you those serviced
and furnished office(s) identified on the Schedule of Terms during the term of this Agreement, as extended from time to time. As a client of the Center, you also have the use of the common areas in the Center on a shared basis with other clients and
in accordance with the policies established by the Center from time to time. You will have access to your office(s) twenty-four (24) hours a day, seven (7) days a week. We reserve the right to relocate you to equal or larger sized
office(s) in the Center and if we exercise that right, the cost and expense of the relocation will be borne by us. We also reserve the right to show the assigned office(s) to prospective clients and others, as necessary. We will use reasonable
efforts to minimize inconvenience to you when doing so. 
  
 2.
ADDITIONAL SERVICES. The Center offers various services to its clients on an as requested basis for fees established by the Center. We will provide a fee schedule for available services upon your request. The fee schedule is subject to change
from time to time without prior notice. Fees are billed to your account as services are provided and are payable per Paragraph 3 below. The Client is liable for all fees for services requested or authorized by Client’s employees or other
persons with apparent authority to act on your behalf. If any default occurs under this Agreement, we may cease to provide any or all services including telephone service without resort to legal process. The standard service fee includes cleaning,
maintenance, utility and heating and air conditioning services within the Center as provided by the Building landlord during normal operating hours of the Building. If you require heating and air conditioning services outside the Building’s
normal operating hours, we will ask the Building landlord to provide those services and you will pay all charges in connection therewith. After hours HVAC is available at an additional fee. 
  
 3. PAYMENTS; DEPOSITS. Upon execution of this Agreement, you are
obligated for the monthly service fee for the entire term of this Agreement. The standard service fee is payable in monthly installments in advance on the 1st of every month (the “payment due date”). Fees for additional services billed to
your account during the preceding period and all applicable sales or use taxes are also due and payable on the payment due date. You agree to pay a late fee equal to 10% or $50.00 (whichever is greater) of any amount not paid by the 5th of the
month. Upon execution, you must pay the first month’s standard service fee, set-up fee and refundable deposits specified in the Schedule of Terms. Deposits will not be kept in a separate account from other funds of Center and no interest will
be paid to you on any deposit moneys we hold. Deposits may be applied to any fees or other amounts due and unpaid at any time in our sole discretion. If so applied, we may require you to replenish the deposit to the amount originally required or to
a greater amount, if we determine necessary based on your payment history. The deposit (less amounts applied to your obligations hereunder) will be refunded to you within sixty (60) days after the end of the term of this Agreement. 

 

 -3- 

 4. USE. You may only use the Center and the assigned office(s) for the conduct of the business
identified in the Schedule of Terms and for no other purpose. You will observe and strictly comply with all Rules and Regulations of the Center and the Building in effect from time to time. The Center’s current Rules and Regulations are
attached hereto. We reserve the right to amend or supplement the Rules and Regulations at any time by informing you in writing of any such change. You are responsible for ensuring that all persons present in the Building or the Center at your
invitation or request also comply with the Rules and Regulations. 
  
 5. LIMITATION OF LIABILITY. You acknowledge that due to the imperfect nature of verbal, written and electronic communications, neither the Center, the Building landlord nor their respective officers, directors, employees, agents or
affiliates shall be responsible for damages, direct indirect or consequential, resulting in whole or in part from the failure to furnish any service, including conveying telephone messages, faxes and other communications. Your sole remedy and our
sole obligation for any failure to render any service, any error or omission, delay or interruption of any service, is an adjustment to your account for the charges for such service for the period during which the failure, error, delay or
interruption continues. No adjustment will be made if the failure, error, delay or interruption of service occurs while you are in default under this Agreement. 
  

With the sole exception of the remedy set forth in the immediately preceding paragraph, Client expressly and specifically waives and agrees not to
make any claim for damages, direct, indirect or consequential, including but not limited to damages for lost business or profits, arising out of any failure to furnish any service, any error or omission with respect to any service, or any delay,
interruption or suspension of services for any reason. To the fullest extent permissible under applicable law, Center disclaims any and all warranties with respect to the services provided or to be provided to Client, with respect to the Facility,
the Building and any property or service related thereto, whether or not specifically mentioned herein, including any warranty of merchantability or fitness for a particular purpose. 
  
 6. LICENSE AGREEMENT. This Agreement is not a lease and does not create any Interest in real property. This Agreement
is a contractual arrangement under which the Client is granted a license to use certain areas of the Center upon payment of the fees and charges set forth herein. Center retains sole and exclusive legal possession and control of the entire Center.
This Agreement and the rights and duties of both the Center and the Client are subject to the terms of the Center’s lease with the Building landlord. This Agreement terminates simultaneously with the termination of Center’s lease or the
termination of the operation of Center for any reason. You acknowledge that you do not have any rights under the Center’s lease with the Building landlord. Upon the termination of this Agreement for any reason, whether at expiration of the term
or otherwise, your license to occupy the Center is automatically revoked. 
  
 7. DAMAGES AND INSURANCE. You are responsible for any and all damage to the assigned office(s) beyond normal wear and tear and for any damage to the Center, the Building or any personal property of others
therein if such damage is caused by you, your employees, agents, contractors, invitees or guests. We reserve the right to inspect your office(s) from time to time and to make necessary repairs. If we make any repairs to correct damage for which you
are responsible, you must pay for those repairs. You are responsible for insuring your personal property against all risks. 
  

 -4- 

 8. WAIVER AND INDEMNITY. You acknowledge and agree, on behalf of yourself, your employees, agents,
invitees and guests, that the Center is not responsible for damage to or loss of any personal property in the Center (whether such personal property belongs to you, your employees, agents, invitees or guests or is otherwise under your control), nor
for any claims for damages for personal or bodily injury or death suffered by you, your employees, agents, invitees or guests, whether caused by the act or omission of the Center or its employees or any other person or event, including our own
negligence, and you hereby waive all such claims and rights of recovery against the Center, its affiliates, and their respective officers, directors, employees and agents (collectively, the “Center and its affiliates”). Personal property
in your offices is understood to be in your control. You agree to indemnify, defend and hold the Center and its affiliates harmless from all claims for damage to or loss of personal property and for personal or bodily injury or death unless caused
solely and directly by our gross negligence. You further agree to indemnify, defend and hold the Center and its affiliates harmless from all claims for loss or damage suffered by or claimed against the Center or its affiliates, directly or
indirectly, arising, in whole or in part, from (a) your use of the Center or the conduct of your business therein, (b) any negligent act or omission of Client, its employees, contractors, agents, invitees or guests, and (c) your
breach of this Agreement. 
  
 9. DISPOSITION OF PROPERTY.
When the term of this Agreement ends, you must remove your personal property from the Center and leave the office(s) and our property in the same condition in which they were on the data you began using them, normal wear and tear excepted. We will
not be responsible for any personal property left in the Center after this Agreement ends. Anything you leave will be considered abandoned and may be disposed of by us however we determine, without any liability to you whatsoever. 
  
 10. DEFAULT. If you fail to pay any service fees or other charges when
due and that failure continues for five (5) days after we notify you in writing or if you fail to perform or observe any other term of this Agreement and that failure Is not connected within ten (10) days after we notify you in writing,
you will be in default of this Agreement. If the failure in performance cannot be corrected or if you repeatedly fall to perform your obligations, or if you engage in any illegal conduct in or about the Center or the Building, you shall be in
default immediately upon the occurrence of such event without any notice and without any opportunity to cure. 
  
 11. REMEDIES. On default, we take any one or more of the following actions, without resort to legal process and without further notice to you:

  
 (a) Terminate this Agreement; 
  
 (b) Demand immediate payment of all unpaid fees and charges,
including all standard service fees for the remainder of the term of the Agreement, including any extensions; 
  
 (c) Deny you access to the Center and the assigned office(s) and cease providing any or all services; 
  
 (d) Take possession of your personal property in the Center,
in which case, we will store such property, at your expense, until taken in full or partial satisfaction of any lien or judgment we obtain; or 
  
 (e) Pursue any other remedies allowed by law. 
  

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 12. NO WAIVER. If we accept partial performance or payment from you, it will not constitute a
waiver of our rights for your default. No matter how many times we allow a default or variance in your performance, we may at any time, without notice, require strict adherence to this Agreement, prohibit future variances or pursue our remedies for
existing defaults. This Agreement can only be amended in a writing signed by the Center and the Client and no conduct by the parties will change the terms of this Agreement. You acknowledge that we may pursue our remedies for your default in
whatever order or manner we chose. If we elect to terminate services to you upon your default, we are not limiting in any manner any other right or remedy we may have. 
  
 13. AUTOMATIC RENEWAL. Upon the expiration of the Initial term, and each extension of the term, this Agreement shall
automatically renew and the term shall be extended for an additional period equal to the initial term, upon the same terms and conditions contained herein except that standard service fees shall be at the then applicable rates established by the
Center for your serviced office(s). If you do not want the term of this Agreement to renew, you must give us written notice of non-renewal not less than sixty (60) days prior to the scheduled end of the term (ninety (90) days if you are
using three or more offices). Likewise, if we do not want the term of this Agreement to renew, we must provide you with written notice within the same time periods. 
  
 14. RESTRICTION ON HIRING. The Center’s employees are an essential part of our ability to deliver the services
and operate our business. We have carefully selected and trained our staff to ensure that you and our other clients receive the highest quality service in the industry. Our staff members are part of our investment in our business and for this and
other reasons, losing an employee is a loss of value. During the term of this Agreement and for six (6) months afterwards, you agree that you will not solicit or offer employment to any of the Center’s employees. If you breach that
agreement or if you hire one of our employees during that period, you must compensate us for the loss and damage we will suffer as a consequence and you agree to pay us the equivalent of one year’s salary for each of the employees concerned.

  
 15. MISCELLANEOUS. 
  
 (a) All required notices are to be in writing and shall be
hand delivered or sent by USPS registered or certified mail, postage prepaid or reputable overnight delivery service with proof of delivery, addressed to the Center or to the Client at the address set forth in the Schedule of Terms. 
  
 (b) In the event a dispute arises under this Agreement, you
agree to submit the dispute to mediation. If mediation does not resolve the dispute, you agree to submit the matter to binding arbitration. The non-prevailing parry shall pay the prevailing party’s attorney’s fees and costs of the
arbitration, all as determined by the arbitrator. Furthermore, if a court decision prevents or if we elect not to submit the dispute to arbitration, then the non-prevailing party as determined by the court shall pay the prevailing party’s
reasonable attorney’s fees and costs. Nothing in this paragraph will prohibit the Center from seeking equitable relief including without limitation any action for removal of the Client from the Center after the license has been terminated or
revoked. 
  
 (c) Where this Agreement recites a
particular example of the general statement, the inclusion of the particular example does not exclude any other particular instance or circumstance or limit the applicability of the general statement. Thus, when the phrase ‘including’ is
used in this Agreement, it means ‘including but not limited to.’ 
  

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 (d) This Agreement is governed by the laws of the state in which the Center is located.

  
 (e) Client may not assign this Agreement
without our prior written consent, which will not be unreasonably withheld. We reserve the right to assign this Agreement and delegate our responsibilities hereunder. 
  
 (f) The Agreement, consisting of the Schedule of Terms, the Terms and Conditions and the Rules and
Regulations, is the entire Agreement between Client and Center and supersedes any and all prior agreements, written or oral. IMPORTANT NOTE: The Rules and Regulations of the Center as in effect from time to time are a material part of the
Agreement and you are bound by them and must observe and comply with them at all times. Violations of the Rules and Regulations by you or any person in the Center or the Building at your invitation or behest shall be a default under the Agreement
and will constitute sufficient cause for termination of the Agreement. If we amend or supplement the Rules and Regulations, we will provide prior written notice of the change or supplement in accordance with Paragraph 15.a. above and upon
delivery of such notice, you will be bound by those changes or supplements. To the extent the Building rules and regulations in effect from time to time are more restrictive than the Center’s Rules and Regulations, the Building rules and
regulations will be deemed paramount. 
  

 -7- 

 Rules and Regulations 
  
 The Rules and Regulations are intended for the safety, comfort and well-being of all clients of the Center and the tenants
of the Building in which the Center is located. 
  
 1. Client
recognizes that the Center is a professional environment and will maintain its assigned office(s) and dress accordingly. Entrances, hallways, stairways and elevators shall not be obstructed or encumbered by any client or used for any purpose other
than ingress and egress. Nothing shall be placed or left in the common areas of the Center. The common areas of the Building are under the control of the Building owner and shall be used by clients in strict accordance with the rules and
requirements of the Building owner. 
  
 2. Nothing shall be hung
in any window or door in the Facility nor shall any sign, advertisement, notice or other lettering be affixed on any part of the Faculty outside of a client’s office or inside any office in such a manner that the same is visible from the
corridors of the Facility. Nothing shall be affixed to the walls of any office by drilling into the walls or by any other method, which damages the walls nor shall the ceiling tiles, light diffusers or air conditioning vents be removed or altered in
any way. 
  
 3. Clients shall not allow noise or objectionable
odors to emanate from any office or secretarial bay, nor cause or allow disturbing noise or odors in the public areas of the Facility. If Client uses an impact or dot matrix printer or paper shredder, the office door must be closed when that
equipment is in use. Other than a personal computer, desktop printer or facsimile machine, Client will not bring any office equipment onto the premises without permission from the Center. 
  
 4. No bicycles, vehicles or animals, birds or pets of any kind shall be brought into the Building or the Center except
working dogs assisting disabled persons nor shall any flammable, combustible, explosive, hazardous or toxic fluid, chemical or substance be brought into the Center. 
  
 5. No additional locks or bolts of any kind shall be placed upon any of the doors or windows by any client, nor shall any
changes be made in existing locks or the mechanism thereof. Upon departure from the Center, all keys to offices, furniture and lavatories must be returned to the Center and in the event of the loss of any keys, the client is responsible for the cost
of replacing or re-keying locks. 
  
 6. All deliveries must be
coordinated through us and will take place in such manner and during such hours as the Center may require. We reserve the right to inspect all deliveries brought into the Center and to exclude any deliveries, which violate these rules and
regulations or those of the Building. The Center is not liable for any damages or claims arising from deliveries accepted on behalf of client. We also reserve the right to exclude from the Center at all times any person who is not known or does not
properly identify him or herself to Center staff. We may require all persons entering or leaving the Center to register. Each client is responsible for all persons who enter the Building at the request or invitation of such client or to conduct
business with the client. 
  
 7. Each client, before closing and
leaving its office, shall turn off its office lights and, if client is in the Center outside of the normal business hours of the Center, shall also turn off the common area lights in the Center and ensure that the suite entry doors are locked. If
client uses any 

  

 -8- 

 
conference room or other common facility in the Center after business hours, client shall restore the area to a clean and orderly condition prior the opening
of business in the Center the following day. If client fails to do so, client will pay for clerical time necessary for Center staff to restore the areas to such condition. 
  
 8. Clients may not use any part of the Center for sleeping or for any illegal purpose. 
  
 9. Only the Center, its staff and the vendors designated by us may provide or
perform services for clients of the Center. No client shall provide or offer to provide services to other clients of the Center, nor solicit other clients for services. The employees of the Building management are not available to perform any
services for clients and shall not be requested by any client to perform any services or do any work. Contact with Building management is exclusively through the Center. 
  
 10. Clients may not use the name of the Center or the Building in any of client’s advertising. During the term of the
Agreement, client may use the address of the Center as its business address. Center will comply with the Postal Service regulations regarding Client’s mail. Upon termination of the Agreement, client must notify all parties with whom client does
business of their change of address. No client may file a change of address form with the Postal Service. All telephone, facsimile numbers and IP addresses are and remain the sole property of the Center and no numbers will be transferred to any
client. For thirty (30) days after the expiration of the Agreement and client’s departure from the Center, we will provide a client’s new telephone number and address to incoming callers and will hold or forward mail, packages, and
facsimiles at no cost to the client. Thereafter, those services remain available to clients at the then applicable fees. 
  
 11. The Center will assess a charge of $35.00 along with any applicable late fees for any check that is dishonored for any reasons. Checks are accepted in
payment of fees and charges subject to collection and if a check is dishonored and returned, it will be as if the payment represented by the check had never been made. If a client has two returned checks, thereafter, payment will only be accepted by
credit card, cashier’s check or certified funds. 
  
 12. If
we have discontinued telephone or other services due to a default and thereafter agree to restore services and waive the default, we may require, among other things, that client pay a $100.00 re-connection fee to resume telephone services.

  
 13. Client shall escort all guests through the suite. No
guests are permitted to walk freely around the suite. 
  
 14. To
maintain suite security, Client shall keep all security doors closed and locked at all times. Client shall not authorize access for other parties to enter the suite beyond Center operating hours. Client shall not use any equipment owned by the
Center unless authorized by Center staff. Client shall not install or repair equipment located in the Center’s LAN room without written permission. An authorized representative of the Center must be present during such work. 
  
 We reserve the right to rescind, amend, alter or waive any of the Rules and
Regulations at any time when, in our sole judgment, it is necessary, desirable or proper for the best interests of the Center and its clients. No rescission, amendment, alteration or waiver of any rule or regulation in favor of one client will
operate in favor of any other client and we will not be responsible to any client for the non-observance or violation by any other client of any of the Rules and Regulations. 
  

 -9-

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