Document:

Exhibit 4.4

 Exhibit 4.4 
  

WARRANT TO PURCHASE 2,636 SHARES 
 OF CLASS B COMMON STOCK (SUBJECT TO ADJUSTMENT) 
  
 THIS WARRANT AND ALL SHARES OF CAPITAL STOCK ISSUABLE HEREUNDER, HAVE NOT BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”) AND MAY NOT BE SOLD, OFFERED FOR SALE, TRANSFERRED, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT UNLESS THE COMPANY HAS RECEIVED AN
OPINION OF COUNSEL, IN FORM AND SUBSTANCE REASONABLY SATISFACTORY TO THE COMPANY, TO THE EFFECT THAT REGISTRATION IS NOT REQUIRED IN CONNECTION WITH SUCH DISPOSITION. 
  
 WARRANT TO PURCHASE SHARES OF CLASS B COMMON STOCK 
  
 OF LUNA INNOVATIONS INCORPORATED 
  
 Date of Issuance: November 11, 2005 
 Void
after November 11, 2008 
  
 WHEREAS, Virginia Tech
Foundation, Inc. (“VTF”) was previously the holder of a warrant issued by Luna Technologies, Inc., a Delaware corporation (“LTI”), which entitled VTF to purchase 500,000 shares of LTFs Series A Preferred Stock at an exercise
price of $0.7222 per share. 
  
 WHEREAS, prior to
September 30, 2005, by mutual agreement between VTF and the Company, the Company canceled and terminated the Prior Warrant. 
  
 WHEREAS, on September 30, 2005, Luna Innovations Incorporated, a Delaware corporation (the “Company”) acquired LTI whereby LTI
became a wholly-owned subsidiary of the Company. 
  
 NOW,
THEREFORE, THIS WARRANT CERTIFIES THAT, VTF or its registered assigns (the “Holder”), is entitled to subscribe for and purchase such shares of fully paid and nonassessable capital stock of the Company in such number of shares and at
such exercise price as is provided herein (the “Warrant”). As used herein, the term “Class B Common Stock” shall mean the Company’s presently authorized Class B Common Stock, and any stock (including Common Stock)
into or for which such Class B Common Stock may hereafter be converted or exchanged. The shares purchasable upon exercise of this Warrant, and the purchase price per share, each as adjusted from time to time pursuant to the provisions of this
Warrant, are hereinafter referred to as the “Warrant Shares” and the “Purchase Price,” respectively. 
  
 1. Purchase Right. This Warrant represents the right of the Holder to subscribe for and purchase up to an aggregate of 2,636 shares of fully paid
and nonassessable Class B Common Stock of the Company (the “Warrant Amount”) (subject to adjustment pursuant to Section 4 hereof). The Purchase Price for each share of Class B Common Stock is equal to $1.00 (subject to
adjustment pursuant to Section 4 hereof). 

 2. Method of Exercise; Payment. 
  
 (a) Cash Exercise; Timing. The purchase rights represented by this Warrant may be exercised by the
Holder, in whole or in part, by the surrender of this Warrant (with the notice of exercise form (the “Notice of Exercise”) attached hereto as Exhibit A duly executed) at the principal office of the Company, and by the payment
to the Company of an amount equal to the aggregate Purchase Price for the number of Warrant Shares being purchased (the “Exercise Amount”), which amount may be paid, at the election of the Holder, (i) by wire transfer or certified
check payable to the order of the Company, (ii) by cancellation by the Holder of indebtedness or other obligations of the Company to the Holder or (iii) by a combination of (i) and (ii). The person or persons in whose name(s) any
certificate(s) representing Warrant Shares that shall be issuable upon exercise of this Warrant shall be deemed to have become the holder(s) of record of, and shall be treated for all purposes as the record holder(s) of, the Warrant Shares
represented thereby (and such Warrant Shares shall be deemed to have been issued) immediately prior to the close of business on the date or dates upon which this Warrant is exercised. 
  
 (b) Net Issue Exercise. In lieu of the payment methods set forth in Section 2(a) above, if the
Fair Market Value of one Warrant Share is greater than the Purchase Price (at the date of calculation as set forth below), the Holder may elect to exchange all or some of the Warrant for Warrant Shares equal to the value of the Warrant (as
determined below) being exercised on the date of exchange. If the Holder elects to exchange this Warrant as provided in this Section 2(b), the Holder shall tender to the Company at the principal office of the Company the Warrant for the amount
being exchanged, along with properly endorsed Notice of Exercise, and the Company shall issue to the Holder the number of Warrant Shares computed using the following formula: 
  

							
	 X
	  	=	  	Y (A-B)	  	 
	 	  	 	  	A	  	 

  
 Where: 
  

			
	 X      =    
	  	the number of Warrant Shares to be issued to the Holder.
		
	 Y      =    
	  	the number of Warrant Shares purchasable under this Warrant or, if only a portion of the Warrant is being exercised, the portion of the Warrant being cancelled (at the date of such
calculation).
		
	 A      =    
	  	the Fair Market Value of one Warrant Share (at the date of such calculation).
		
	 B      =    
	  	the Purchase Price (as adjusted to the date of such calculation).

  
 All references herein
to an “exercise” of the Warrant shall include an exchange pursuant to this Section 2(b). Upon receipt of a written notice of the Company’s intention to raise capital by selling shares of Common Stock in the initial public
offering of the Company’s Common Stock (the “IPO”), which notice (the “IPO Notice”) shall be delivered to Holder at least thirty (30) but not more than ninety (90) days before the anticipated date of the filing
with the SEC of the registration statement associated with the IPO, the Holder shall notify the Company within ten (10) days whether or not the Holder will exercise this Warrant pursuant to this Section 2(b) prior to 

  

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consummation of the IPO. Notwithstanding whether an IPO Notice has been delivered to Holder or any other provision of this Warrant to the contrary, if Holder
decides to exercise this Warrant while a registration statement is on file with the Securities and Exchange Commission (the “SEC”), but prior to effectiveness of such Registration Statement, in connection with the IPO, this Warrant shall
be deemed exercised on the consummation of the IPO and the Fair Market Value will be the price at which one share of Common Stock was sold to the public in the IPO. If Holder elects to exercise this Warrant pursuant to this Section 2(b) while a
registration statement is on file with the SEC in connection with an IPO and the IPO is not consummated, then Holder’s exercise of this Warrant shall not be effective unless Holder confirms in writing Holder’s intention to go forward with
the exercise of this Warrant. 
  
 (c)
“Easy Sale” Exercise. In lieu of the payment methods set forth in Section 2(a) above, when permitted by law and applicable regulations (including Nasdaq and National Association of Securities Dealers (“NASD Rules”),
the Holder may pay the Exercise Amount through a “same day sale” commitment from the Holder (and if applicable a broker-dealer that is a member of the NASD (an “NASD Dealer”)), whereby the Holder will irrevocably elect to
exercise this Warrant and to sell at least that number of Warrant Shares so purchased to pay the Exercise Amount (and up to all of the Warrant Shares so purchased) and the Holder (or, if applicable, the NASD Dealer) commits upon sale (or, in the
case of the NASD Dealer, upon receipt) of such Warrant Shares to forward the Exercise Amount directly to the Company, with any sale proceeds in excess of the Exercise Amount being for the benefit of the Holder. 
  
 (d) Fair Market Value. For purposes of this Warrant,
the “Fair Market Value” of a Warrant Share shall mean: 
  
 (i) if the conversion right is being exercised in connection with the IPO, the IPO price per share (before deducting commissions, discounts or expenses) at which the Common Stock is sold to the public in the IPO,
multiplied by the number of shares of Common Stock into which a share of Class B Common Stock is convertible at the time of the exercise of the conversion right (the “Conversion Rate”); 
  
 (ii) if the conversion right is being exercised in
connection with a bona fide acquisition of the Company (an “Acquisition”) (i.e., not a mere recapitalization, reincorporation for the sole purpose of changing corporate domicile, or similar transaction pursuant to which control of
the Company is not transferred), regardless of the form of the transaction (e.g., merger, consolidation, sale or lease of assets or sale of stock), the price per share to be paid to the holders of the Company’s Class B Common Stock by the
acquiring entity, or, if no such price per share has been established, the price per share to be paid to the holders of the Company’s Common Stock multiplied by the Conversion Rate; 
  
 (iii) if the Company’s Common Stock is traded on a securities exchange or national over the counter
trading system, the fair value shall be deemed to be the product of the average of the security’s prices at 4:30 Eastern Time on such exchange or trading system over the 30-day period ending three (3) days prior to the closing of the
Acquisition, multiplied by the Conversion Rate; and 
  

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 (iv) in all other cases, the value shall be the fair market value thereof, as determined
in good faith by the Board. 
  
 (e)
Exercisability. This Warrant is fully exercisable by the Holder as of the date hereof, and shall remain exercisable prior to its expiration pursuant to Section 12 below. 
  
 (f) Stock Certificates; Fractional Shares. As soon as practicable on or after the date of exercise of
this Warrant under Section 2(a), 2(b) or 2(c) above, as applicable, such date, the Company shall issue and deliver to the person or persons entitled to receive the same a certificate or certificates for the number of Warrant Shares issuable
upon such exercise, together with cash in lieu of any fraction of a share equal to such fraction of the current Fair Market Value of one whole Warrant Share as of the date of exercise of this Warrant. No fractional shares or scrip representing
fractional shares shall be issued upon an exercise of this Warrant. 
  
 (g) Partial Exercise; Effective Date of Exercise. In case of any partial exercise of this Warrant, the Company shall cancel this Warrant upon surrender hereof and shall execute and deliver a new Warrant of like
tenor and date for the balance of the Warrant Shares purchasable hereunder. This Warrant shall be deemed to have been exercised immediately prior to the close of business on the date of its surrender for exercise as provided above. The person
entitled to receive the Warrant Shares shall be treated for all purposes as the holder of record of such Warrant Shares as of the close of business on the date the Holder is deemed to have exercised this Warrant. 
  
 3. Stock Fully Paid; Reservation of Shares. All of the Warrant Shares
issuable upon the exercise of the rights represented by this Warrant will, upon issuance and receipt of the Purchase Price therefor, be validly issued, fully paid and nonassessable, and free from all taxes, liens and charges except for restrictions
on transfer provided for herein or under applicable federal and state securities laws. During the period within which the rights represented by this Warrant may be exercised, the Company shall at all times have authorized and reserved for issuance a
sufficient number of shares of its Class B Common Stock to provide for the exercise of the rights represented by this Warrant and sufficient shares of Common Stock to provide for the conversion of such Class B Common Stock. The Company
agrees that its issuance of this Warrant shall constitute full authority to its officers who are charged with the duty of executing stock certificates to execute and issue the necessary certificates for the Shares upon the exercise of this Warrant.

  
 4. Adjustment of Price and Number of Shares. The number
and kind of securities purchasable upon the exercise of this Warrant and the Purchase Price therefor shall be subject to adjustment from time to time upon the occurrence of certain events, as follows: 
  
 (a) Merger, Sale of Assets, etc. If at any time while
this Warrant, or any portion hereof, is outstanding and unexpired there shall be (i) a reorganization (other than a combination, reclassification, exchange or subdivision of shares otherwise provided for herein), (ii) a merger or
consolidation of the Company with or into another corporation in which the Company is not the surviving entity, or a reverse triangular merger, or similar transaction, in which the Company is the surviving entity but the shares of the Company’s
capital stock outstanding immediately prior to the merger are converted by virtue of the merger into other property, whether in the form of securities, cash, or otherwise, and as a result of which the ownership of the Company shall change 50% or

  

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more, or (iii) a sale or transfer of the Company’s properties and assets as, or substantially as, an entirety to any other person, then, as a part
of such reorganization, merger, consolidation, sale or transfer (collectively, a “Change of Control”), this Warrant shall cease to represent the right to receive Warrant Shares and shall automatically represent the right to receive upon
exercise of this Warrant, during the period specified herein and upon payment of the Purchase Price then in effect, the number of shares of stock or other securities or property offered to the Company’s holders of Class B Common Stock in
connection with such Change of Control that a holder of the shares deliverable upon exercise of this Warrant would have been entitled to receive in such Change of Control if this Warrant had been exercised immediately before such Change of Control,
subject to further adjustment as provided in this Section 4. The foregoing provisions of this Section 4(a) shall similarly apply to successive reorganizations, consolidations, mergers, sales and transfers and to the stock or securities of
any other corporation that are at the time receivable upon the exercise of this Warrant. If the per share consideration payable to the holder hereof for Shares in connection with any such transaction is in a form other than cash or marketable
securities, then the value of such consideration shall be determined in good faith by the Company’s Board of Directors. In all events, appropriate adjustment (as determined in good faith by the Company’s Board of Directors) shall be made
in the application of the provisions of this Warrant with respect to the rights and interests of the Holder after the transaction, to the end that the provisions of this Warrant shall be applicable after that event, as near as reasonably may be, in
relation to any shares or other property deliverable after that event upon exercise of this Warrant. 
  
 (b) Reclassification, etc. If the Company, at any time while this Warrant, or any portion hereof, remains outstanding and unexpired
shall change the Warrant Shares (other than a change in par value, or solely as a result of a stock dividend, subdivision or combination) whether by reclassification, a merger or consolidation not subject to Section 4(a), or otherwise (a
“Reclassification”), or shall change, by a Reclassification, any of the securities as to which purchase rights under this Warrant exist, into the same or a different number of securities of any other class or classes, this Warrant shall
thereafter represent the right to acquire such number and kind of securities as would have been issuable as the result of such change with respect to the securities that were subject to the purchase rights under this Warrant immediately prior to
such reclassification or other change and the Purchase Price therefore shall be appropriately adjusted, all subject to further adjustment as provided in this Section 4. The provisions of this Section 4(b) shall also apply to successive
Reclassifications. 
  
 (c) Split, Subdivision
or Combination of Shares. If the Company at any time while this Warrant, or any portion hereof, remains outstanding and unexpired shall split, subdivide or combine the shares of Class B Common Stock, as to which purchase rights under this
Warrant exist, into a different number of securities of the same class, the number of shares of Class B Common Stock issuable upon exercise of this Warrant shall be proportionately increased and the Purchase Price for such securities shall be
proportionately decreased in the case of a split or subdivision and he number of shares of Class B Common Stock issuable upon exercise of this Warrant shall be proportionately decreased and the Purchase Price shall be proportionately increased
in the case of a combination. 
  
 (d)
Adjustments for Dividends in Stock or Other Securities or Property. If while this Warrant, or any portion hereof, remains outstanding and unexpired, the holders of the securities 

  

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as to which purchase rights under this Warrant exist at the time shall have received, or, on or after the record date fixed for the determination of eligible
stockholders, shall have become entitled to receive, without payment therefore, other or additional stock or other securities or property (other than cash) of the Company by way of dividend, then and in each case, this Warrant shall represent the
right to acquire, in addition to the number of shares of the security receivable upon exercise of this Warrant, and without payment of any additional consideration therefore, the amount of such other or additional stock or other securities or
property (other than cash) of the Company that such holder would hold on the date of such exercise had it been the holder of record of the security receivable upon exercise of this Warrant on the date hereof and had thereafter, during the period
from the date hereof to and including the date of such exercise, retained such shares and/or all other additional stock available by it as aforesaid during such period, giving effect to all adjustments called for during such period by the provisions
of this Section 4. 
  
 5. Notice of Adjustments.

  
 (a) Upon any adjustment of the Purchase Price
and any increase or decrease in the number of Shares purchasable upon the exercise of this Warrant in accordance with Section 4 hereof, then, and in each such case, the Company, within thirty (30) days thereafter, shall give written notice
thereof to the Holder at the address of such Holder as shown on the books of the Company, which notice shall state (i) the event requiring the adjustment, (ii) the Purchase Price as adjusted and, if applicable, (iii) the increased or
decreased number of shares of Class B Common Stock purchasable upon the exercise of this Warrant, setting forth in reasonable detail the method of calculation of each. 
  
 (b) Any such notices by the Company required or permitted hereunder may be given by hand delivery or first
class mail, postage prepaid, addressed to the Holder at the address shown on the books of the Company for the Holder and shall be deemed to have been received (i) in the case of personal delivery, on the date of such delivery and (ii) in
the case of mailing, on the third business day following the date of such mailing. 
  
 6. Lockup. If and to the extent required by any managing underwriter in the IPO, the Holder of this Warrant agrees not to effect any sale, transfer, disposition or distribution of any Shares (except as part of
such offering) during (i) the 180-day period commencing with the effective date of the registration statement for such IPO filed under the Securities Act of 1933, as amended (the “Securities Act”) (or such other period as may be
requested in writing by the managing underwriter and agreed to in writing by the Company), and (ii) as to any Holder which beneficially owns 5% or more of the Company’s outstanding capital stock, the 90-day period commencing with the
effective date of a registration statement of the Company filed under the Securities Act for any public offering following the Company’s IPO, provided that all officers, directors and holders of 1% or more of the Company’s
outstanding capital stock enter into similar agreements providing for similar restrictions on sales. 
  

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 7. Conditions of Exercise of Warrant or Transfer of Shares. Except in accordance with the
conditions contained herein, this Warrant, the Warrant Shares and all rights hereunder are not transferable or assignable by the Holder. 
  
 (a) It shall be a condition to any exercise or transfer of this Warrant that the Company shall have received, at the time of such exercise
or transfer, a representation in writing from the recipient or transferee in the form attached hereto as Exhibit A-l or Exhibit B-l, respectively, that the shares of Class B Common Stock being issued upon exercise, or
the Warrant (or portion hereof) being transferred, as the case may be, are being acquired for investment and not with a view to any sale or distribution thereof. 
  
 (b) It shall be a further condition to any transfer of this Warrant or of any or all of the shares of
Class B Common Stock, other than a transfer registered under the Act, that the Holder shall have given written notice to the Company which shall describe the manner and circumstances of the proposed transfer and be accompanied by, at the
Holder’s option, a written opinion of Holder’s legal counsel or a “no-action” letter reasonably satisfactory to the Company stating that such transfer is exempt from the registration and prospectus delivery requirements of the
Act and applicable state securities laws. In order to effect any transfer or assignment of this Warrant, the transferor shall deliver a completed and duly executed Notice of Transfer in the form attached hereto as Exhibit B. 

 
 (c) Each certificate evidencing the Warrant Shares issued
upon exercise of this Warrant, or transfer of such Warrant Shares (other than a transfer registered under the Act or any subsequent transfer of shares so registered) shall be stamped or imprinted with a legend substantially in the following form (in
addition to any legend required by applicable state securities laws): 
  
 THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE BEEN ACQUIRED FOR INVESTMENT AND NOT WITH A VIEW TO, OR FOR RESALE IN CONNECTION WITH, ANY DISTRIBUTION THEREOF, AND HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“ACT”) OR ANY APPLICABLE STATE SECURITIES LAWS. SUCH SECURITIES MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF SUCH REGISTRATION OR AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY AND ITS COUNSEL THAT SUCH
REGISTRATION IS NOT REQUIRED UNDER THE ACT. 
  
 The Company may
instruct its transfer agent not to register the transfer of this Warrant, or any of the Warrant Shares, unless the conditions specified in Section 8 hereof are satisfied. 
  
 8. Removal of Legend. Upon request of a holder of a certificate with the legend referred to in Section 7 hereof,
the Company shall issue to such holder a new certificate therefor free of any transfer legend, if, with such request, the Company shall have received either an opinion of counsel or a “no-action” letter referred to in Section 7(b)
hereof to the effect that any transfer by such holder of the shares evidenced by such certificate will not violate the Securities Act and applicable state securities laws; provided, however, that the Company shall not be obligated to remove any such
legends prior to the closing date of the Company’s IPO. 
  
 9. Fractional Shares. This Warrant may not be exercised for fractional shares, and the number of shares to be issued shall be rounded down to the nearest whole share. If a fractional share interest arises upon any exercise or
conversion of the Warrant, the Company shall eliminate such 

  

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fractional share interest by paying Holder an amount computed by multiplying the fractional interest by the fair market value of a Ml share of Class B
Common Stock. 
  
 10. Representations and Warranties by the
Holder. The Holder represents and warrants to the Company as follows: 
  
 (a) This Warrant is being acquired for the Holder’s own account, for investment and not with a view to, or for resale in connection with, any distribution or public offering thereof within the meaning of the
Securities Act. Upon exercise of this Warrant, the Holder shall, if so requested by the Company, confirm in writing, in a form reasonably satisfactory to the Company, that the Warrant Shares issuable upon exercise of this Warrant are being acquired
for investment and not with a view toward distribution or resale. 
  
 (b) The Holder understands that the Warrant and the Warrant Shares have not been registered under the Securities Act by reason of their issuance in a transaction exempt from the registration and prospectus delivery
requirements of the Securities Act pursuant to Section 4(2) thereof, and that they must be held by the Holder indefinitely, and that the Holder must therefore bear the economic risk of such investment indefinitely, unless a subsequent
disposition thereof is registered under the Securities Act or is exempted from such registration. The Holder further understands that the Warrant and the Warrant Shares have not been qualified under any state’s blue sky laws by reason of their
issuance in a transaction exempt from the qualification requirements of applicable blue sky laws, which exemptions depend upon, among other things, the bona fide nature of the Holder’s investment intent expressed above. 
  
 (c) The Holder has such knowledge and experience in
financial and business matters that it is capable of evaluating the merits and risks of the purchase of this Warrant and the Warrant Shares purchasable pursuant to the terms of this Warrant and of protecting its interests in connection therewith.

  
 (d) The Holder is able to bear the economic
risk of the purchase of the Warrant and the Warrant Shares pursuant to the terms of this Warrant. 
  
 (e) The Holder is an “accredited investor” within the meaning of Rule 501 or Regulation D promulgated under the
Securities Act. 
  
 11. No Rights or Liabilities as
Stockholders. This Warrant shall not entitle the Holder to any voting rights or other rights as a stockholder of the Company. In the absence of affirmative action by such Holder to purchase Warrant Shares by exercise of this Warrant, no
provisions of this Warrant, and no enumeration herein of the rights or privileges of the Holder hereof shall cause such Holder hereof to be a stockholder of the Company for any purpose. 
  
 12. Expiration of Warrant. This Warrant shall expire and shall no longer be exercisable at 5:00 p.m., Virginia local
time, on November 11, 2008 (the “Expiration Date”). If the Expiration Date falls on a Saturday, Sunday or legal holiday, the Expiration Date shall automatically be extended until 5:00 p.m., Virginia local time, the next business day.

  

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 13. No Impairment. The Company will not, by amendment of its Certificate or bylaws, or through
reorganization, consolidation, merger, dissolution, issue or sale of securities, sale of assets or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms of this Warrant, but will at all times in good
faith assist in the carrying out of all such terms and in the taking of all such action as may be necessary or appropriate in order to protect the rights of the Registered Holder of this Warrant against impairment. 
  
 14. Notices of Record Date. In case the Company shall take a record of
the holders of its Class B Common Stock (or other stock or securities at the time receivable upon the exercise of this Warrant), for the purpose of entitling them to receive any dividend or other distribution, or any right to subscribe for or
purchase any shares of stock of any class or any other securities or to receive any other right; or of any consolidation or merger of the Company with or into another corporation, any capital reorganization of the Company, any reclassification of
the capital stock of the Company, or any conveyance of all or substantially all of the assets of the Company to another corporation in which holders of the Company’s stock are to receive stock, securities or property of another corporation; or
of any voluntary dissolution, liquidation or winding-up of the Company; then, and in each such case, the Company will mail or cause to be mailed to the Registered Holder of this Warrant a notice specifying, as the case may be, (i) the date on
which a record is to be taken for the purpose of such dividend, distribution or right, or (ii) the date on which such reorganization, reclassification, consolidation, merger, conveyance, dissolution, liquidation, winding-up is to take place,
and the time, if any is to be fixed, as of which the holders of record of Class B Common Stock (or such stock or securities as at the time are receivable upon the exercise of this Warrant), shall be entitled to exchange their shares of
Class B Common Stock (or such other stock or securities), for securities or other property deliverable upon such reorganization, reclassification, consolidation, merger, conveyance, dissolution, liquidation or winding-up. Such notice shall be
delivered at least fifteen (15) days prior to the date therein specified. 
  
 15. Miscellaneous. 
  
 (a) This Warrant shall be construed and enforced in accordance with and governed by the laws of the State of Delaware. 
  
 (b) The headings in this Warrant are for purposes of reference only, and shall not limit or otherwise affect any of the terms hereof.

  
 (c) The terms of this Warrant shall be
binding upon and shall inure to the benefit of any successors or assigns of the Company and of the Holder or holders hereof and of the Shares issued or issuable upon the exercise hereof. 
  
 (d) This Warrant and the other documents delivered pursuant hereto or referenced herein constitute the full
and entire understanding and agreement between the parties with regard to the subjects hereof and thereof. 
  
 (e) Upon receipt of evidence reasonably satisfactory to the Company of the ownership of and the loss, theft, destruction or mutilation of
this Warrant and, in the case of any such loss, theft or destruction, upon delivery of an indemnity agreement reasonably satisfactory in 

  

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form and amount to the Company or, in the case of any such mutilation, upon surrender and cancellation of such Warrant, the Company at its expense will
execute and deliver to the holder of record, in lieu thereof, a new Warrant of like date, tenor and amount. 
  
 (f) This Warrant and any provision hereof may be amended, waived or terminated only by an instrument in writing signed by the Company and
the holders representing at least a majority of the number of unissued Warrant Shares issuable hereunder. 
  
 (g) If any term, provision, covenant or restriction of this Warrant is held by a court of competent jurisdiction to be invalid, void or
unenforceable, the remainder of the terms, provisions, covenants and restrictions of this Warrant shall remain in full force and effect and shall in no way be affected, impaired or invalidated. 
  
 (h) The Holder hereby releases LTI and the Company from any
and all claims related to the Prior Warrant. 
  
 [Signature Page
Follows] 
  

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 IN WITNESS WHEREOF, the undersigned have executed this Warrant as of the date first above written.

  

									
	LUNA INNOVATIONS INCORPORATED	 	 	 	VIRGINIA TECH FOUNDATION, INC.
					
	By:	 	/s/    SCOTT A. GRAEFF        	 	 	 	 	 	/s/    RAYMOND D. SMOOT,
JR.        
	 Name:
	 	Scott A. Graeff	 	 	 	 Name:
	 	Raymond D. Smoot, Jr.
	 Title:
	 	Chief Financial Officer	 	 	 	 Title:
	 	COO and Secretary-Treasurer

  

			
	 Address:
	  	 Address:

	 Luna Innovations Incorporated
 2851 Commerce Street, S.E.
 Blacksburg, VA 24060
 Attention: Dr. Kent Murphy
	  	 Virginia Tech Foundation, Inc.
 Attn: Raymond D.
Smoot, Jr.
 Virginia Tech
 312 Burruss Hall
 Blacksburg, VA 24061

  
 [SIGNATURE PAGE TO
THE WARRANT) 

 EXHIBIT A 
  
 NOTICE OF EXERCISE 
  

	TO:	Luna Innovations Incorporated 

	 	2851 Commerce Street Southeast 

	 	Blacksburg,VA 24011 

	 	Attention: President 

  
 1. The undersigned hereby elects to purchase
                     shares of Class B Common Stock of Luna Innovations Incorporated pursuant to the terms of the attached Warrant.

  
 2. Method of Exercise (Please initial the applicable blank):

  

	 	 ̈	The undersigned elects to exercise the attached Warrant by means of a cash payment, and tenders herewith payment in full for the purchase price of the shares being purchased,
together with all applicable transfer taxes, if any. 

  

	 	 ̈	The undersigned elects to exercise the attached Warrant by means of cancellation of indebtedness or other obligations of the Company and tenders herewith appropriate documentation,
acceptable in form and substance to the Company, of such cancellation. 

  

	 	 ̈	The undersigned elects to exercise the attached Warrant by means of the net exercise provisions of Section 2(b) of the Warrant. 

  
 3. Please issue a certificate or certificates representing said
                     shares of Class B Common Stock in the name of the undersigned or in such other name as is specified below: 
  

	
	
	 
	 (Name)

	
	 
	
	 
	 (Address)

 EXHIBIT A-l 
  
 INVESTMENT REPRESENTATION STATEMENT 
  

					
	PURCHASER	  	:	  	__________________________
			
	SELLER	  	:	  	LUNA INNOVATIONS INCORPORATED
			
	COMPANY	  	:	  	LUNA INNOVATIONS INCORPORATED
			
	SECURITY	  	:	  	CLASS B COMMON STOCK ISSUED UPON EXERCISE OF THE CLASS B COMMON STOCK PURCHASE WARRANT
			
	AMOUNT	  	:	  	_____________ SHARES
			
	DATE	  	:	  	__________________________

  
 In connection with the purchase of the
above-listed Securities, I, the Purchaser, represent to the Seller and to the Company the following: 
  
 (a) I am aware of the Company’s business affairs and financial condition, and have acquired sufficient information about the Company to reach an
informed and knowledgeable decision to acquire the Securities. I am purchasing these Securities for my own account for investment purposes only and not with a view to, or for the resale in connection with, any “distribution” thereof for
purposes of the Securities Act of 1933, as amended (the “Securities Act”). 
  
 (b) I understand that the Securities have not been registered under the Securities Act in reliance upon a specific exemption therefrom, which exemption depends upon, among other things, the bona fide nature of my
investment intent as expressed herein. In this connection, I understand that, in the view of the U.S. Securities and Exchange Commission (the “SEC”), the statutory basis for such exemption may be unavailable if my representation was
predicated solely upon a present intention to hold these Securities for the minimum capital gains period specified under tax statutes, for a deferred sale, for or until an increase or decrease in the market price of the Securities, or for a period
of one year or any other fixed period in the future. 
  
 (c) I
further understand that the Securities must be held indefinitely unless subsequently registered under the Securities Act or unless an exemption from registration is otherwise available. In addition, I understand that the certificate evidencing the
Securities will be imprinted with a legend which prohibits the transfer of the Securities unless they are registered or such registration is not required in the opinion of counsel for the Company. 
  
 (d) I am familiar with the provisions of Rule 144, promulgated under the
Securities Act, which, in substance, permits limited public resale of “restricted securities” acquired, directly or indirectly, from the issuer thereof, in a non-public offering subject to the satisfaction of certain conditions.

  

 A-1-1 

 The Securities may be resold in certain limited circumstances subject to the provisions of Rule 144,
which requires among other things: (1) the availability of certain public information about the Company, (2) the resale occurring not less than one year after the party has purchased, and made full payment for, within the meaning of
Rule 144, the securities to be sold; and, in the case of an affiliate, or of a non-affiliate who has held the securities less than two years, (3) the sale being made through a broker in an unsolicited “broker’s transaction”
or in transactions directly with a market maker (as said term is defined under the Securities Exchange Act of 1934) and (4) the amount of securities being sold during any three month period not exceeding the specified limitations stated
therein, if applicable. 
  
 (e) I agree, in connection with the
Company’s initial underwritten public offering of the Company’s securities, (1) not to sell, make short sale of, loan, grant any options for the purchase of, or otherwise dispose of any shares of common stock of the Company held by me
(other than those shares included in the registration) without the prior written consent of the Company or the underwriters managing such initial underwritten public offering of the Company’s securities for one hundred eighty (180) days
from the effective date of such registration (or such other period as may be requested in writing by the managing underwriter and agreed to in writing by the Company), and, provided that if I beneficially own 5% or more of the Company’s
outstanding capital stock, for ninety (90) days following the effective date of a follow on registration statement of the Company filed under the Securities Act and (2) I further agree to execute any agreement reflecting (1) above as
may be requested by the underwriters at the time of the public offering; provided, however, that the officers and directors of the Company who own the stock of the Company also agree to such restrictions. 
  
 (f) I further understand that in the event all of the applicable requirements
of Rule 144 are not satisfied, registration under the Securities Act, compliance with Regulation A, or some other registration exemption will be required; and that, notwithstanding the fact that Rule 144 is not exclusive, the Staff of
the SEC has expressed its opinion that persons proposing to sell private placement securities other than in a registered offering and otherwise than pursuant to Rule 144 will have a substantial burden of proof in establishing that an exemption
from registration is available for such offers or sales, and that such persons and their respective brokers who participate in such transactions do so at their own risk. 
  

			
	 
	(Signature)
		
	By:	 	 
		
	Title:	 	 
		
	Date:	 	 

 EXHIBIT B 
  
 NOTICE OF TRANSFER 
 (To be signed only upon transfer of Warrant) 
  
 FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto
                                        
                                     the right represented by the
attached Warrant to purchase                                  shares of
Class B Common Stock of Luna Innovations Incorporated, to which the attached Warrant relates, and appoints
                                        
                         as Attorney to transfer such right on the books of Luna Innovations Incorporated, with full power of
substitution in the premises. 
  
 Dated:
                             
  

	
	
	 
	(Signature must conform in all respects to the name of the Holder as specified on the face of the Warrant)
	
	 
	
	 
	(Address)

  
 Signed in the presence of:
                                        
                     

 EXHIBIT B-l 
  
 INVESTMENT REPRESENTATION STATEMENT 
  

					
	PURCHASER	  	:	  	 
			
	TRANSFEROR	  	:	  	 
			
	COMPANY	  	:	  	LUNA INNOVATIONS INCORPORATED
			
	SECURITY	  	:	  	CLASS B COMMON PURCHASE WARRANT
			
	AMOUNT	  	:	  	_____________ SHARES
			
	DATE	  	:	  	_________________________________

  
 In connection with the purchase of the
above-listed Securities, I, the Purchaser, represent to the Seller and to the Company the following: 
  
 (a) I am aware of the Company’s business affairs and financial condition, and have acquired sufficient information about the Company to reach an
informed and knowledgeable decision to acquire the Securities. I am purchasing these Securities for my own account for investment purposes only and not with a view to, or for the resale in connection with, any “distribution” thereof for
purposes of the Securities Act of 1933, as amended (the “Securities Act”). 
  
 (b) I understand that the Securities have not been registered under the Securities Act in reliance upon a specific exemption therefrom, which exemption depends upon, among other things, the bona fide nature of my
investment intent as expressed herein. In this connection, I understand that, in the view of the Securities and Exchange Commission (the “SEC”), the statutory basis for such exemption may be unavailable if my representation was predicated
solely upon a present intention to hold these Securities for the minimum capital gains period specified under tax statutes, for a deferred sale, for or until an increase or decrease in the market price of the Securities, or for a period of one year
or any other fixed period in the future. 
  
 (c) I further
understand that the Securities must be held indefinitely unless subsequently registered under the Securities Act or unless an exemption from registration is otherwise available. In addition, I understand that the certificate evidencing the
Securities will be imprinted with a legend which prohibits the transfer of the Securities unless they are registered or such registration is not required in the opinion of counsel for the Company. 
  
 (d) I am familiar with the provisions of Rule 144, promulgated under the
Securities Act, which, in substance, permits limited public resale of “restricted securities” acquired, directly or indirectly, from the issuer thereof, in a non-public offering subject to the satisfaction of certain conditions.

  
 The Securities may be resold in certain limited circumstances
subject to the provisions of Rule 144, which requires among other things: (1) the availability of certain public information about 

 
the Company, (2) the resale occurring not less than one year after the party has purchased, and made full payment for, within the meaning of
Rule 144, the securities to be sold; and, in the case of an affiliate, or of a non-affiliate who has held the securities less than two years, (3) the sale being made through a broker in an unsolicited “broker’s transaction”
or in transactions directly with a market maker (as said term is defined under the Securities Exchange Act of 1934) and the amount of securities being sold during any three month period not exceeding the specified limitations stated therein, if
applicable. 
  
 (e) I agree, in connection with the Company’s
initial underwritten public offering of the Company’s securities, (1) not to sell, make short sale of, loan, grant any options for the purchase of, or otherwise dispose of any shares of common stock of the Company held by me (other than
those shares included in the registration) without the prior written consent of the Company or the underwriters managing such initial underwritten public offering of the Company’s securities for one hundred eighty (180) days from the
effective date of such registration (or such other period as may be requested in writing by the managing underwriter and agreed to in writing by the Company) and provided that if I beneficially own 5% or more of the Company’s outstanding
capital stock, for ninety (90) days following the effective date of a follow on registration statement of the Company filed under the Securities Act, and (2) I further agree to execute any agreement reflecting (1) above as may be
requested by the underwriters at the time of the public offering; provided, however, that the officers and directors of the Company who own the stock of the Company also agree to such restrictions. 
  
 (f) I further understand that in the event all of the applicable requirements
of Rule 144 is not satisfied, registration under the Securities Act, compliance with Regulation A, or some other registration exemption will be required; and that, notwithstanding the fact that Rule 144 is not exclusive, the Staff of
the SEC has expressed its opinion that persons proposing to sell private placement securities other than in a registered offering and otherwise than pursuant to Rule 144 will have a substantial burden of proof in establishing that an exemption
from registration is available for such offers or sales, and that such persons and their respective brokers who participate in such transactions do so at their own risk. 
  

			
	 
	(Signature)
		
	By:	 	 
		
	Title:	 	 
		
	Date:Exhibit 4.5

 Exhibit 4.5 
  

THIS WARRANT AND THE SHARES ISSUABLE HEREUNDER HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 (THE “1933 ACT”), AS AMENDED OR ANY APPLICABLE STATE
SECURITIES LAW, AND MAY NOT BE SOLD, PLEDGED, OR OTHERWISE TRANSFERRED WITHOUT AN EFFECTIVE REGISTRATION THEREOF UNDER SUCH ACT OR PURSUANT TO RULE 144 AND AN EXEMPTION UNDER APPLICABLE STATE LAW OR AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO
THE CORPORATION AND ITS COUNSEL, THAT SUCH REGISTRATION IS NOT REQUIRED. 
  
 WARRANT TO PURCHASE STOCK 
  

			
	 Company:
	  	LUNA INNOVATIONS INCORPORATED, a Delaware corporation
	 Number of Shares:
	  	2,554
	 Class of Stock:
	  	Class B Common Stock
	 Warrant Price:
	  	$21.06 per share
	 Issue Date:
	  	September 30, 2005
	 Expiration Date:
	  	August 30, 2008

  
 WHEREAS,
pursuant to that certain warrant, dated August 31, 2001 (the “Prior Warrant”), issued by Luna Technologies, Inc., a Delaware corporation (“LTI”), Silicon Valley Bank (“SVB”) was entitled to purchase 88,642 shares
of LTI’s Series A Preferred Stock at an exercise price of $0.7222 per share. 
  
 WHEREAS, pursuant to that certain Agreement and Plan of Merger, dated September 30, 2005, by and among Luna Innovations Incorporated, a Delaware corporation (the “Company”), Luna Technologies
Acquisition Corp., a Delaware corporation and wholly-owned subsidiary of the Company (“Sub”), LTI, and the principal stockholders listed on Annex A thereto (the “Merger Agreement”), LTI merged with and into Sub with LTI
being the surviving corporation. 
  
 WHEREAS, pursuant to
the Merger Agreement, all unexpired and unexercised warrants of LTI were assumed by the Company and were deemed to be exercisable for the corresponding number of Class B Common Stock. 
  
 WHEREAS, pursuant to Section 1.6(e) of the Merger Agreement, the
Company is offering to exchange this Warrant, which is of substantially like tenor, for the Prior Warrant. 
  
 NOW, THEREFORE, THIS WARRANT CERTIFIES THAT, for value received, SILICON VALLEY BANK (“Holder”) is entitled to purchase the number
of fully paid and nonassessable shares of the class of securities (the “Shares”) of the Company at the Warrant Price all as set forth above and as adjusted pursuant to Article 2 of this Warrant, subject to the provisions and upon the
terms and conditions set forth in this Warrant. 
  
 ARTICLE 1. EXERCISE.

  
 1.1 Method of Exercise. Holder may exercise this
Warrant by delivering a duly executed Notice of Exercise in substantially the form attached as Appendix 1 to the principal office of the Company. Unless Holder is exercising the conversion right set forth in Section 1.2, Holder shall also
deliver to the Company a check for the aggregate Warrant Price for the Shares being purchased. 
  
 1.2 Conversion Right. In lieu of exercising this Warrant as specified in Section 1.1, Holder may from time to time convert this Warrant, in whole or in part, into a number of Shares determined by dividing
(a) the aggregate fair market value of the Shares or other securities otherwise issuable upon exercise of this Warrant minus the aggregate Warrant Price of 

 
such Shares by (b) the fair market value of one Share. The fair market value of the Shares shall be determined pursuant to Section 1.3. 

 
 1.3 Fair Market Value. If the Shares are traded in a public market,
the fair market value of the Shares shall be the closing price of the Shares (or the closing price of the Company’s stock into which the Shares are convertible) reported for the business day immediately before Holder delivers its Notice of
Exercise to the Company. If the Shares are not traded in a public market, the Board of Directors of the Company shall determine fair market value in its reasonable good faith judgment. 
  
 1.4 Delivery of Certificate and New Warrant. Promptly after Holder exercises or converts this Warrant, the Company
shall deliver to Holder certificates for the Shares acquired and, if this Warrant has not been fully exercised or converted and has not expired, a new Warrant representing the Shares not so acquired. 
  
 1.5 Replacement of Warrants. On receipt of evidence reasonably
satisfactory to the Company of the loss, theft, destruction or mutilation of this Warrant and, in the case of loss, theft or destruction, on delivery of an indemnity agreement reasonably satisfactory in form and amount to the Company or, in the case
of mutilation, or surrender and cancellation of this Warrant, the Company shall execute and deliver, in lieu of this Warrant, a new warrant of like tenor. 
  
 1.6 Assumption on Sale, Merger, or Consolidation of the Company. 
  
 1.6.1 “Acquisition”. For the purpose of this Warrant, “Acquisition” means any
sale, license, or other disposition of all or substantially all of the assets of the Company, or any reorganization, consolidation, or merger of the Company where the holders of the Company’s securities before the transaction beneficially own
less than 50% of the outstanding voting securities of the surviving entity after the transaction. 
  
 1.6.2 Assumption of Warrant. Upon the closing of any Acquisition, the successor entity shall assume the obligations of this
Warrant, and this Warrant shall be exercisable for the same securities, cash, and property as would be payable for the Shares issuable upon exercise of the unexercised portion of this Warrant as if such Shares were outstanding on the record date for
the Acquisition and subsequent closing. The Warrant Price and/or number of Shares shall be adjusted accordingly. 
  
 ARTICLE 2. ADJUSTMENTS TO THE SHARES. 
  
 2.1 Stock Dividends, Splits, Etc. If the Company declares or pays a dividend on its common stock (or the Shares if the Shares are securities other
than common stock) payable in common stock, or other securities, subdivides the outstanding common stock into a greater amount of common stock, or, if the Shares are securities other than common stock, subdivides the Shares in a transaction that
increases the amount of common stock into which the Shares are convertible, then upon exercise of this Warrant, for each Share acquired, Holder shall receive, without cost to Holder, the total number and kind of securities to which Holder would have
been entitled had Holder owned the Shares of record as of the date the dividend or subdivision occurred. If the outstanding shares are combined or consolidated, by reclassification or otherwise, into a lesser number of shares, the Warrant Price
shall be proportionately increased and the number of shares shall be proportionately decreased. 
  
 2.2 Reclassification, Exchange, Combinations or Substitution. Upon any reclassification, exchange, substitution, or other event that results in a
change of the number and/or class of the securities issuable upon exercise or conversion of this Warrant, Holder shall be entitled to receive, upon exercise or conversion of this Warrant, the number and kind of securities and property that Holder
would have received for the Shares if this Warrant had been 

  

 2 

 
exercised immediately before such reclassification, exchange, substitution, or other event. Such an event shall include any automatic conversion of the
outstanding or issuable securities of the Company of the same class or series as the Shares to common stock pursuant to the terms of the Company’s Certificate of Incorporation upon the closing of a registered public offering of the
Company’s common stock. The Company or its successor shall promptly issue to Holder a new Warrant for such new securities or other property. The new Warrant shall provide for adjustments which shall be as nearly equivalent as may be practicable
to the adjustments provided for in this Article 2 including, without limitation, adjustments to the Warrant Price and to the number of securities or property issuable upon exercise of the new Warrant. The provisions of this Section 2.2 shall
similarly apply to successive reclassifications, exchanges, substitutions, or other events. 
  
 2.3 No Impairment. The Company shall not, by amendment of its Certificate of Incorporation or through a reorganization, transfer of assets, consolidation, merger, dissolution, issue, or sale of securities or
any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms to be observed or performed under this Warrant by the Company, but shall at all times in good faith assist in carrying out of all the provisions of
this Article 2 and in taking all such action as may be necessary or appropriate to protect Holder’s rights under this Article against impairment. 
  
 2.4 Fractional Shares. No fractional Shares shall be issuable upon exercise or conversion of the Warrant and the number of Shares to be issued
shall be rounded down to the nearest whole Share. If a fractional share interest arises upon any exercise or conversion of the Warrant, the Company shall eliminate such fractional share interest by paying Holder the amount computed by multiplying
the fractional interest by the fair market value of a full Share. 
  
 2.5 Certificate as to Adjustments. Upon each adjustment of the Warrant Price, the Company shall promptly notify Holder in writing, and, at the Company’s expense, promptly compute such adjustment, and furnish Holder with a
certificate of its Chief Financial Officer setting forth such adjustment and the facts upon which such adjustment is based. The Company shall, upon written request, furnish Holder a certificate setting forth the Warrant Price in effect upon the date
thereof and the series of adjustments leading to such Warrant Price. 
  
 ARTICLE
3. REPRESENTATIONS AND COVENANTS OF THE COMPANY. 
  
 3.1
Representations and Warranties. The Company represents and warrants to the Holder that all Shares which may be issued upon the exercise of the purchase right represented by this Warrant, and all securities, if any, issuable upon conversion of
the Shares, shall, upon issuance, be duly authorized, validly issued, fully paid and nonassessable, and free of any liens and encumbrances except for restrictions on transfer provided for herein or under applicable federal and state securities laws.

  
 3.2 Notice of Certain Events. If the Company proposes
at any time (a) to declare any dividend or distribution upon its common stock, whether in cash, property, stock, or other securities and whether or not a regular cash dividend; (b) to offer for sale of additional shares of any class or
series of the Company’s stock other than stock options; (c) to effect any reclassification or recapitalization of common stock; (d) to merge or consolidate with or into any other corporation, or sell, lease, license, or convey all or
substantially all of its assets, or to liquidate, dissolve or wind up; or (e) to offer holders of registration rights the opportunity to participate in an underwritten public offering of the company’s securities for cash, then, in
connection with each such event, the Company shall give Holder (1) at least 10 days prior written notice of the date on which a record will be taken for such dividend, distribution, or subscription rights (and specifying the date on which the
holders of common stock will be entitled thereto) or for determining rights to vote, if any, in respect of the matters referred to in (c) and (d) above; (2) in the case of the matters referred to in (c) and (d) above at
least 10 days prior written notice of the date when the same will take place (and specifying the date on which the holders of 

  

 3 

 
common stock will be entitled to exchange their common stock for securities or other property deliverable upon the occurrence of such event); and (3) in
the case of the matter referred to in (e) above, the same notice as is given to the holders of such registration rights. 
  
 3.3 No Shareholder Rights. Except as provided in this Warrant, the Holder will not have any rights as a shareholder of the Company until the
exercise of this Warrant. 
  
 ARTICLE 4. REPRESENTATIONS, WARRANTIES OF THE
HOLDER. The Holder represents and warrants to the Company as follows: 
  
 4.1 Purchase for Own Account. Except for transfers to Holder’s affiliates, this Warrant and the securities to be acquired upon exercise of this Warrant by the Holder will be acquired for investment for the
Holder’s account, not as a nominee or agent, and not with a view to the public resale or distribution within the meaning of the 1933 Act, and the Holder has no present intention of selling, granting any participation in, or otherwise
distributing the same. If not an individual, the Holder also represents that the Holder has not been formed for the specific purpose of acquiring this Warrant or the Shares. 
  
 4.2 Disclosure of Information. The Holder has received or has had full access to all the information it considers
necessary or appropriate to make an informed investment decision with respect to the acquisition of this Warrant and its underlying securities. The Holder further has had an opportunity to ask questions and receive answers from the Company regarding
the terms and conditions of the offering of this Warrant and its underlying securities and to obtain additional information (to the extent the Company possessed such information or could acquire it without unreasonable effort or expense) necessary
to verify any information furnished to the Holder or to which the Holder has access. 
  
 4.3 Investment Experience. The Holder understands that the purchase of this Warrant and its underlying securities involves substantial risk. The Holder: (a) has experience as an investor in securities of
companies in the development stage and acknowledges that the Holder is able to fend for itself, can bear the economic risk of such Holder’s investment in this Warrant and its underlying securities and has such knowledge and experience in
financial or business matters that the Holder is capable of evaluating the merits and risks of its investment in this Warrant and its underlying securities and/or (b) has a preexisting personal or business relationship with the Company and
certain of its officers, directors or controlling persons of a nature and duration that enables the Holder to be aware of the character, business acumen and financial circumstances of such persons. 
  
 4.4 Accredited Investor Status. The Holder is an “accredited
investor” within the meaning of Regulation D promulgated under the 1933 Act. 
  
 ARTICLE 5. MISCELLANEOUS. 
  
 5.1 Term.
This Warrant is exercisable in whole or in part at any time and from time to time on or before the Expiration Date. 
  
 5.2 Legends. This Warrant and the Shares (and the securities issuable, directly or indirectly, upon conversion of the Shares, if any) shall be
imprinted with a legend in substantially the following form: 
  
 THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED OR UNDER ANY APPLICABLE STATE LAWS, AND MAY NOT BE SOLD, PLEDGED OR OTHERWISE TRANSFERRED WITHOUT AN EFFECTIVE REGISTRATION THERE OF UNDER SUCH ACT AND AN
EXEMPTION UNDER APPLICABLE STATE LAW OR PURSUANT TO RULE 144 OR 

  

 4 

 
AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE CORPORATION AND ITS COUNSEL THAT SUCH REGISTRATION IS NOT REQUIRED. 
  
 5.3 Compliance with Securities Laws on Transfer. This Warrant and the
Shares issuable upon exercise of this Warrant (and the securities issuable, directly or indirectly, upon conversion of the Shares, if any) may not be transferred or assigned in whole or in part without compliance with applicable federal and state
securities laws by the transferor and the transferee (including, without limitation, the delivery of investment representation letters and legal opinions reasonably satisfactory to the Company, as reasonably requested by the Company). The Company
shall not require Holder to provide an opinion of counsel if the transfer is to Silicon Valley Bancshares (Holder’s parent company) or any other affiliate of Holder or if there is no material question as to the availability of current
information as referenced in Rule 144(c), Holder represents that it has complied with Rule 144(d) and (e) in reasonable detail, the selling broker represents that it has complied with Rule 144(f), and the Company is provided with a copy of
Holder’s notice of proposed sale. 
  
 5.4 Transfer
Procedure. Subject to the provisions of Section 5.3, upon receipt by Holder of the executed Warrant, Holder will transfer all or part of this Warrant or the Shares issuable upon exercise of this Warrant (or the securities issuable, directly
or indirectly, upon conversion of the Shares, if any) to Silicon Valley Bancshares, Holder’s parent company. Subject to the provisions of Section 5.3, and upon providing Company with written notice, Holder or Silicon Valley Bancshares (if
applicable) may transfer all or part of this Warrant or the Shares issuable upon exercise of this Warrant (or the securities issuable, directly or indirectly, upon conversion of the Shares, if any) to The Silicon Valley Bank Foundation, or to any
affiliate of Holder, or to any other transferee by providing to the Company notice of the portion of the Warrant being transferred with the name, address and taxpayer identification number of the transferee and surrendering this Warrant to the
Company for reissuance to the transferee(s) (and Holder if applicable). The Company may refuse to transfer this Warrant to any person who directly competes with the Company unless the Company’s stock is publicly traded. 
  
 5.5 Notices. All notices and other communications from the Company to
the Holder, or vice versa, shall be deemed delivered and effective when given personally or mailed by first-class registered or certified mail, postage prepaid, at such address as may have been furnished to the Company or the Holder, as the case may
be, in writing by the Company or such holder from time to time. All notices to the Holder shall be addressed as follows: 
  
 Silicon Valley Bank 
 Attn: Treasury
Department 
 3003 Tasman Drive, HG 110 
 Santa Clara, CA 95054 
  
 5.6 Waiver. This Warrant
and any term hereof may be changed, waived, discharged or terminated only by an instrument in writing signed by the party against which enforcement of such change, waiver, discharge or termination is sought. 
  
 5.7 Attorney’s Fees. In the event of any dispute between the
parties concerning the terms and provisions of this Warrant, the party prevailing in such dispute shall be entitled to collect from the other party all costs incurred in such dispute, including reasonable attorney’s fees. 
  
 5.8 Automatic Conversion upon Expiration. In the event that, upon the
Expiration Date, the fair market value of one Share (or other security issuable upon the exercise hereof) as determined in accordance with Section 1.3 above is greater than the Exercise Price in effect on such date, then this Warrant shall
automatically be deemed on and as of such date to be converted pursuant to Section 1.2 above as to all Shares (or such other securities) for which it 

  

 5 

 
shall not previously have been exercised or converted, and the Company shall promptly deliver a certificate representing the Shares (or such other
securities) issued upon such conversion to the Holder. 
  
 5.9
Governing Law. This Warrant shall be governed by and construed in accordance with the laws of the State of California, without giving effect to its principles regarding conflicts of law. 
  
 5.10 Notice under Prior Warrant; Replacement of Prior Warrant;
Release. The Holder hereby waives any notice requirements provided for in the Prior Warrant with respect to the transactions contemplated by the Merger Agreement, accepts this Warrant as a replacement for the Prior Warrant and releases LTI and
the Company from any claims related thereto. 
  
 [Signature Page
Follows] 
  

 6 

 IN WITNESS WHEREOF, the undersigned have executed this Warrant as of the date first above written.

  

			
	 “COMPANY”
 LUNA INNOVATIONS INCORPORATED

		
	 By:
	 	/S/    SCOTT A. GRAEFF
	 Name:
	 	Scott A. Graeff
	 Title:
	 	Chief Financial Officer
	
	 “HOLDER”
 Silicon Valley Bank

		
	 By:
	 	 /s/

	 Name:
	 	 
	 Title:
	 	 

  
 [Signature
Page to Warrant] 

 APPENDIX 1 
  
 NOTICE OF EXERCISE 
  
 1. Holder elects to purchase
                     shares of the Class B Common Stock of
                     pursuant to the terms of the attached Warrant, and tenders payment of the purchase price of the shares in full.

  
 [or] 
  
 1. Holder elects to convert the attached Warrant into Shares/cash [strike
one] in the manner specified in the Warrant. This conversion is exercised for                          of the Shares
covered by the Warrant. 
  
 [Strike paragraph that does not
apply.] 
  
 2. Please issue a certificate or certificates
representing the shares in the name specified below: 
  
 ______________________________________________ 
 Holders Name 
  
 ______________________________________________ 
  
 ______________________________________________ 
 (Address) 
  
 3. The undersigned
represents it is acquiring the shares solely for its own account and not as a nominee for any other party and not with a view toward the resale or distribution except in compliance with applicable securities laws. 
  

			
	 HOLDER:
 ________________________________

		
	 By:
	 	 
	 Name:
	 	 
	 Title:
	 	 

  
 ________________ 
             (Date)

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