Document:

Exhibit 10.9

 Exhibit 10.9 

CONFIDENTIAL TREATMENT REQUESTED 

CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS
DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH
THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE
SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 

AMENDMENT 

TO 

DEVELOPMENT AND SUPPLY AGREEMENT 

This Amendment ( “Amendment”) to the Development and Supply Agreement by and between Intuitive Surgical, Inc.
(“Intuitive”), and Luna Innovations Incorporated (“Luna”, and collectively with Intuitive, the “Parties”) dated June 11, 2007 (the “Original Agreement”), is made and entered
into as of January 12, 2010. 
 BACKGROUND 
  

	A.	The Parties amended the Original Agreement by an Amendment No. X dated May 20, 2008, to replace Exhibit 2.1 to the Original Agreement. The Original Agreement as
amended by Amendment No. X shall be referred to as the “Agreement”. 

  

	B.	As a part of settlement of certain litigation between Luna and Hansen Medical, Inc. (“Hansen”), Luna seeks to modify certain provisions of the
Agreement such that it may provide Hansen with a co-exclusive (with Intuitive) license to its fiber optic shape sensing/localization technology within a certain field as defined in a License Agreement Between Intuitive and Luna having the same date
as this Amendment (the “New Intuitive License”). 

  

	C.	In connection with this settlement, Luna and Intuitive desire to amend the Agreement to allow the co-exclusive license of certain technologies by Luna to Hansen and to
permit Luna to engage in certain development work for Hansen, as well as modify the patent enforcement provisions and make various other changes to the Agreement desired by the Parties. 

 

	D.	On December 11, 2009, Luna met and satisfied the Second Milestone contemplated by the Agreement, thus completing its development obligations. The Parties, however,
expect that Intuitive may desire Luna to perform further development work under the Agreement and this Amendment provides for that possibility in the future. 

 

	E.	All terms not defined in this Amendment shall have the meanings assigned to them in the Agreement or the New Intuitive License (and any defined in both shall have the
meaning assigned in the latter). 

  

	F.	Now, therefore, the Parties hereby agree to the following terms and conditions, the adequate mutual consideration for which is hereby acknowledged.

 AGREEMENT 

1. Amendment of Preamble. 

The Preamble of the Agreement is amended in its entirety to read as follows: 

This Development and Supply Agreement (the “Agreement”) is made and entered into on June 11, 2007, (the
“Effective Date”) by and between Intuitive Surgical, Inc., a Delaware corporation, having a principal place of business at 1266 Kifer Road, Building 101, Sunnyvale, California 94086-5304 and its Affiliates (acting jointly and
severally, individually and collectively, “Intuitive”) and Luna Innovations Incorporated, a Delaware corporation having a principal place of business at 1703 S. Jefferson Street SW, Suite 400, Roanoke, Virginia 24016 and its
Affiliates (acting jointly and severally, individually and collectively, “Luna”). As used in this Agreement, each of Intuitive and Luna is a “Party” and collectively they are the “Parties.” 

2. Amendment of Definitions. 

2.1 Affiliates. Section 1.1 of the Agreement is amended in its entirety to read as follows: 

“Affiliates” means any corporation or other entity that is directly or indirectly controlling, controlled by or under
common control with a Party. For purposes of this definition, “control” of an entity means the direct or indirect ownership of securities representing fifty percent (50%) or more of the total voting power entitled to vote in elections
of such entity’s board of directors or other governing authority, or equivalent interests conferring the power to direct or cause the direction of the governance or policies of such entity. 

2.2 Field. Section 1.14 of the Agreement is amended in its entirety to read as follows: 

“Field” means the field of [****]. 

2.3 Integrated Product. Section 1.18 of the Agreement is amended in its entirety to read as follows: 

“Integrated Product” means, collectively, the Luna Product and the Intuitive Product as a physically integrated product
for commercialization, distribution, or use under this Agreement solely within the Field. 
 CERTAIN CONFIDENTIAL
INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED
AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 

 2.4 Intuitive Product. Section 1.24 of the Agreement is amended in its entirety
to read as follows: 
 “Intuitive Product” means any Intuitive [****] into which Intuitive may wish to
physically integrate the Luna Product for manufacture, use, offer for sale, sale, importation, commercialization or distribution under this Agreement solely within the Field. 

2.5 Milestones. Section 1.33 of the Agreement is amended in its entirety to read as follows: 

“Milestones” means the Development Program Milestones, as set forth in Exhibit 2.1, as may be amended from time to
time by the mutual agreement of Luna and Intuitive. 
 2.6 Shape-Sensing Product. Section 1.40 of the Agreement is
amended in its entirety to read as follows: 
 “Shape-Sensing Product” means a device, product or system that
makes use of or implements FOSSL Technology. 
 2.7 Technology. Section 1.42 of the Agreement is amended in its
entirety to read as follows: 
 “Technology” means any technical information, know-how, processes, procedures,
methods, formulae, protocols, techniques, software, computer code (including both object and source code), documentation, works of authorship, data, designations, designs, devices, prototypes, substances, components, inventions (whether or not
patentable), mask works, ideas, trade secrets and other information or materials, in tangible or intangible form. 
 2.8
FOSSL Technology. Section 1 of the Agreement is amended to add the following new Section 1.46: 
  

	 	1.46	“Fiber Optic Shape Sensing/Localization Technology” or “FOSSL Technology” means [****]. 

2.9 New Intuitive License. Section 1 of the Agreement is amended to add the following new Section 1.47: 

 

	 	1.47	“New Intuitive License” means the License Agreement Between Intuitive and Luna dated as of January 12, 2010. 

 

 CERTAIN CONFIDENTIAL INFORMATION CONTAINED
IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2
OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 

 2.10 Product. Section 1 of the Agreement is amended to add the following
new Section 1.48: 
  

	 	1.48	“Product” means any device, instrument, diagnostic, therapeutic, product, system, application, or services. 

2.11 Luna Product. Section 1.31 of the Agreement is amended in its entirety to read as follows: 

 

	 	1.31	“Luna Product” means any Product involving or relating to Fiber Optic Shape Sensing/Localization Technology developed by or for Luna under this
Agreement (which Luna Product will in any event include an optical fiber sensor component with a connector (“Sensor”) and a device or box containing, among other things, computer software and computer hardware components designed,
among other things, to receive, analyze, interpret and output Sensor shape, position, orientation and/or location information (“Interrogator”)). 

3. Amendment of Licenses and Patent Enforcement. 

3.1 Luna to Intuitive. In acknowledgement of the terms and provisions contained in the New Intuitive License, Sections 4 and 9.4.1
of the Agreement are hereby deleted. For purpose of clarity, nothing in the New Intuitive License shall be considered to prohibit, limit, or otherwise restrict Luna from marketing, selling, or distributing any products or services, including without
limitation, any Shape-Sensing Products or services, outside the Field or from developing and manufacturing products for Hansen either within or outside the Field. 

3.2 Intuitive to Luna. The [****] of the license granted by Intuitive to Luna pursuant to clause (ii) of
Section 9.4.2 of the Agreement shall be deemed amended to the limited extent necessary to allow Intuitive to [****]. 
 3.3
Patent Enforcement. Section 9.7 of the Agreement shall be subject to Section 4.2 of the New Intuitive License and shall be subject to Section 5.2(a) of the License Agreement Between Hansen and Luna of even date herewith.
The first sentence of Section 9.7 of the Agreement shall be amended in its entirety to read as follows: 
 [****]

 The last sentence of Section 9.7 of the Agreement shall be amended in its entirety to read as follows: 

[****] 
 3.4
Background Intellectual Property. The following clause beginning Section 9.1 of the Agreement “Subject to the licenses granted under this Agreement, as between the Parties,” is amended in its entirety to read as
“Subject to the licenses granted under this Agreement and the New Intuitive License, as between the Parties,”. 
  

 CERTAIN CONFIDENTIAL INFORMATION CONTAINED
IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2
OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 

 3.5 New Intellectual Property. Section 9.2 of the Agreement is clarified
to read as follows: 
 New Intellectual Property. To the extent that one or more Parties acquires, licenses, or creates
any Technology in connection with the Development Program, subject to the licenses granted under this Agreement and the New Intuitive License (but without imposing on Intuitive an obligation to disclose any invention disclosures, trade secrets and
know how, proprietary information, technical data, documentation, concepts, processes, formulae, systems, equipment apparatuses, software, designs, drawings, plans, specifications and the like in which Intuitive has rights or any similar,
corresponding or equivalent rights anywhere in the world), as between the Parties, ownership of Technology and all Intellectual Property Rights therein (“New Intellectual Property”) shall be as follows: 

3.6 Intuitive New Intellectual Property. Section 9.2.2 of the Agreement is clarified to read as follows: 

Intuitive shall own all right, title and interest in all New Intellectual Property related to [****]. Luna agrees to reasonably cooperate,
at Intuitive’s cost, in the preparation, filing, prosecution, and maintenance of any Intuitive New Intellectual Property that are jointly invented by the Parties. 

4. Amendment regarding Development. 

4.1 Future Development Work. The Parties agree that Intuitive may request Luna to perform additional development work under
Section 2 of the Agreement (“Development Work”). In order to do so, the Parties shall agree upon a new Exhibit 2.1 setting forth Milestones and Luna Product Specifications. Subject to the mutual reasonable agreement on
Milestones and Luna Product Specifications and payment for Development Work pursuant to Section 5 below, and further subject to Section 14 of the Agreement, Luna agrees to perform Development Work under Section 2 of the Agreement for
a period of [****] from the date of this Amendment. 
 4.2 Annual Review. The following new Section 2.7 shall
be added to the Agreement, which shall replace Section 6.5 of the Agreement: 
  

	 	2.7	 Annual Review. The Project Managers, or at Intuitive’s request, the Chief Technology Officers of the Parties, shall engage in an annual
review (including a meeting) of the development of FOSSL Technology for use in or in connection with the [****] Field. Luna shall respond to any reasonable requests by Intuitive for further information in the form of (1) copies of any
then-existing reports, summaries, memorandums, articles, invention disclosures, patents and patent applications, in each case (A) to the extent not already disclosed to Intuitive and (B) in any event (i)

  

 CERTAIN CONFIDENTIAL INFORMATION CONTAINED
IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2
OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 

	 	
excluding inventor notebooks, incomplete draft documents and mere email correspondence (but not excluding attached documents to the extent constituting the foregoing documents), and
(ii) excluding any information restricted from disclosure to Intuitive under third party confidentiality obligations, or (2) Luna may prepare a document fulfilling such request that provides the substance of the responsive information that
otherwise would be provided pursuant to clause (1). The foregoing shall exclude software source code and related documentation and algorithms designed for the purpose of incorporation into source code (without limiting Section 2.8 below).
However, the foregoing obligation shall not require Luna to generate any new documents, reports or other materials that do not already exist (except to the extent Luna elects, in its sole discretion, to pursue (2) above instead of (1)) and
shall not require Luna to provide Intuitive with training with respect to any inventions or Technology contained or described by the claims of such Licensed Patents. 

4.3 Source Code Escrow. The following new Section 2.8 shall be added to the Agreement: 

 

	 	2.8	 Source Code Escrow. Luna shall deposit in escrow all source code for software necessary to operate the Luna Product (including source code for
software within the Interrogator, as may exist as of the date hereof and as updated), as imaged on a hard drive with all of the files and utilities necessary to compile or synthesize the source code, together with any documentation, libraries,
tools, utilities and other related materials reasonably necessary for the installation, testing, deployment, operation, modification or use of such software source code (collectively, “Luna Product Deposit Materials”) with [****].
Luna shall periodically update such Luna Product Deposit Materials with the latest versions thereof, but no less frequently than once each calendar quarter. The Luna Product Deposit Materials shall be released to Intuitive in the event any of the
following occurs (but not in any other case): (i) refusal of Luna to perform continued development, maintenance, upgrading, or support of the software within the Luna Product Deposit Materials under Luna’s standard rates or under other
reasonable and customary terms (it being understood that Luna has no obligation to do so hereunder outside of the Development Program or outside of obligations arisen from the triggering of Standby Rights under Section 8.3) or failure of Luna
to provide such services after agreeing to do so (following notice and an opportunity to cure such failure within [****], and (ii) the bankruptcy, liquidation or insolvency of Luna or an assignment for the benefit of creditors by Luna. All fees
and 

  

 CERTAIN CONFIDENTIAL INFORMATION CONTAINED
IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2
OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 

	 	
expenses payable to [****] for the establishment and maintenance of such escrow arrangement shall be borne and paid by Intuitive. Within [****] days following the date of this Amendment, the
Parties shall negotiate and enter into an escrow agreement between the Parties and [****] to establish the escrow arrangement described above under the terms and conditions described above (and other reasonable and customary terms and conditions).
Luna shall make the initial deposit of the materials described above into escrow within [****] after such escrow agreement is entered into. 

4.4 Regulatory Requirements. The following provision shall be added in its entirety after the last sentence of
Section 7.3.1 of the Agreement: 
 Luna shall cooperate with Intuitive to provide any software source code
with respect to the Luna Product and the Integrated Product to the extent required by any applicable law, rule or regulation, including regulatory requirements of the FDA and other applicable governmental entities concerning the Luna Product or the
Integrated Product within such time periods as reasonably required for compliance with the applicable laws, rules or regulations. 
 5.
Amendment of Supply Obligations. 
 5.1 No Minimum Annual Commitment. Section 5.4.2 of the Agreement is
hereby deleted. The last two sentences of Section 7.1 of the Agreement are hereby deleted. 
 5.2 Purchase of
Sensors. Section 5.4.3 of the Agreement is amended in its entirety to read as follows: 
 5.4.3. Purchase of Optical
Fiber and Sensors. Intuitive shall have the right to purchase optical fiber or Sensors from suppliers other than Luna, and to package, and connectorize optical fiber into individual Sensors, and Luna shall assist Intuitive in identifying such
suppliers and answer inquires from Intuitive and/or such suppliers regarding such packaging and/or connectorizing processes. Notwithstanding anything in this Agreement to the contrary, in the event that Intuitive purchases optical fiber or Sensors
from a third-party vendor, Luna does not guarantee, represent, or warrant (and affirmatively disclaims any guaranty, representation, or warranty) that the combination of such optical fiber or third-party Sensors will be compatible with the
Interrogators or that the integrated Shape-Sensing Product will meet the Luna Product Specifications. 
  

 CERTAIN CONFIDENTIAL INFORMATION CONTAINED
IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2
OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 

 6. Payment for Development Work[****]. 

6.1 Payment for Development Work. Subject to Section 5.3 below, Intuitive shall pay Luna for the Development Work
performed by Luna personnel at Luna’s reasonable commercial hourly rates for development work and other direct development costs (materials at a cost plus normal commercial burden). These rates are subject to annual reasonable adjustment not to
exceed [****]. Luna has previously provided Intuitive with its 2010 hourly rates. Luna shall invoice Intuitive for Development Work on a calendar monthly basis. 

6.2 Audit Rights. Luna shall keep and maintain complete and accurate books, records, and accounts as may be reasonably
required to confirm the amounts invoiced by it for Development Work. Intuitive shall have the right once per twelve month period, upon reasonable advance notice and during normal business hours, to have an independent third party auditor (one that
is not otherwise engaged by Intuitive for other auditing or tax purposes) audit such books, records, and accounts to verify the accuracy of such invoices. Such audit shall be at Intuitive’s expense, except that if such audit concludes that
Intuitive made an overpayment of at least the greater of (i) [****] of the actual amount due and (ii) [****], subject to an opportunity by Luna to reasonably contest the conclusions of such audit, such audit shall be at Luna’s sole
expense. Luna shall promptly refund to Intuitive the amount of any such overpayment. 
 6.3 Credit of [****] against
Development Work and Commercial Transfer Price. Until an aggregate cumulative credit or discount of [****] has been reached, (i) Intuitive shall be entitled a [****]% discount on all Development Work invoiced by Luna to Intuitive
and/or (ii) [****] discount to the Commercial Transfer Price for Luna Products supplied (as used in Section 6.4 of the Agreement). Notwithstanding the foregoing, to the extent any materials are included in the Development Work, the [****]%
discount shall only be applied against Luna’s mark-up above cost (i.e., [****]% of the mark-up, not [****]% of the cost plus mark-up). 

6.4 [****] Fee. Section 6.3 of the Agreement is amended in its entirety to read as follows: 

6.3. [****] Fee. In addition to the Licensing Fee and the Development Fees described in Section 6.1 and 6.2, Intuitive shall
pay to Luna a non-refundable (except as provided in Section 14.2.1(a)), [****]. 
 7. Term and Termination. 

7.1 Term. Section 14.1 of the Agreement is amended in its entirety to read as follows: 

Subject to Section 14.2.5, this Agreement shall continue in full force and effect for a [****] period from date of the Amendment,
unless earlier terminated pursuant to the other provisions of this Section 14 (the “Term”). [****]. The Term may be extended by mutual written agreement of the Parties prior to the expiration of the initial Term. 

 

 CERTAIN CONFIDENTIAL INFORMATION CONTAINED
IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2
OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 

 7.2 Termination for Breach of [****] License. Section 14.2.1(a) of
the Agreement is amended in its entirety to read as follows: 
  

	 	(a)	in the event Luna breaches [****] the license [****] described in Section 14.1, after failure to cure pursuant to the following notice. In the event Intuitive
believes that Luna has breached the [****] license [****], Intuitive shall provide Luna with written notice describing same and Luna shall have [****] to cure such breach. In the event of termination by Intuitive pursuant to this
Section 14.2.1(a), nothing herein shall be deemed to affect the license granted by Luna to Intuitive pursuant to Section 2.1 of the New Intuitive License [****]. In addition, Intuitive shall have the right to seek additional legal recourse
for intentional breach of the [****] license granted pursuant to Section 2.1 of the New Intuitive License. 

7.3 Failure to [****]. Section 14.2.1(b) of the Agreement is amended in its entirety to read as follows: 

 

	 	(b)	in the event Luna is unable to satisfy [****], after failure to cure pursuant to the following notice. In the event Intuitive believes that Luna has not [****]. Within
ten (10) business days of Intuitive’s request, Luna shall make all commercially reasonable efforts to allow Intuitive to [****]. In the event of termination by Intuitive under this Section 14.2.1(b), nothing herein shall be deemed to
affect the license granted by Luna to Intuitive pursuant to Section 2.1 of the New Intuitive License [****] and Luna shall be obligated to mitigate future expenditures or commitment of funds. The foregoing shall be Intuitive’s sole remedy
and Luna’s sole liability for [****]. However, Intuitive reserves the right to seek other legal recourse for Luna’s intentional breach [****]. Termination pursuant to this Section 14.2.1(b) shall not terminate Intuitive’s
obligation to pay (i) amounts accrued as of the date of termination [****]. 

 7.4 Certain Conforming
Changes. The phrase “and shall maintain the licenses [****] granted under Sections 4 and 9.” in Section 14.2.1(c) of the Agreement and Section 14.2.1(d) of the Agreement, where such phrase appears twice, shall in each
instance be replaced by the following words: 
 “and shall maintain the license granted by Luna to Intuitive pursuant to
Section 2.1 of the New Intuitive License.” 
  

 CERTAIN CONFIDENTIAL INFORMATION CONTAINED
IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2
OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 

 7.5 Termination By Luna. Section 14.2.2(a) of the Agreement is amended in its
entirety to read as follows: 
  

	 	(a)	in the event Intuitive breaches a material obligation of the Agreement, after Luna has provided written notice and following a cure period of twenty-one (21) days.
In the event of termination by Luna under this Section 14.2.2(a), Luna shall have the right to seek additional legal recourse. 

8. Miscellaneous. Except as specifically provided for herein, all of the terms and conditions of the Agreement shall remain in full
force and effect. In the event of a conflict or inconsistency between the terms and conditions contained in this Amendment and the Agreement, the provisions herein shall prevail. This Amendment, the Agreement and the New Intuitive License contain
the entire agreement and understanding of Intuitive and Luna with subject matter hereof, except to the limited extent another agreement is specifically referenced herein. 

IN WITNESS WHEREOF, the Parties have caused this Amendment to be executed by their
duly authorized representatives as of the date set forth above. 
  

									
	LUNA INNOVATIONS INCORPORATED	 		 	INTUITIVE SURGICAL, INC.

									
					
	By:	 	 /s/ Kent A. Murphy
	 		 	By:	 	 /s/ Mark Meltzer

									
					
	Name:	 	 Kent A. Murphy
	 		 	Name:	 	 Mark Meltzer

									
					
	Title:	 	 CEO
	 		 	Title:	 	 SVP GC

  

 CERTAIN CONFIDENTIAL INFORMATION CONTAINED
IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2
OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 

 CONFIDENTIAL TREATMENT REQUESTED 

CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS
DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH
THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE
SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 

AMENDMENT No. 2 

to the 

Intuitive-Luna Development Supply Agreement dated June 11, 2007 (“Original Agreement”) 

between 
 INTUITIVE
SURGICAL, INC. (“Intuitive”) 
 and 

LUNA INNOVATIONS, INC. (“Luna”) 

This Amendment No. 2 is entered into by and between Intuitive and Luna on April 27, 2010 (“Amendment Date”). 

BACKGROUND 
  

	 	A.	Intuitive and Luna agreed to amend the Original Agreement by Amendment No. X dated May 20, 2008 to replace Exhibit 2.1 of the Original Agreement. The Original
Agreement as amended by Amendment No. X shall be referred to as the “Agreement”. 

  

	 	B.	As part of settlement of certain litigation between Luna and Hansen Medical, Inc. (“Hansen”), Intuitive and Luna agreed to amend the Agreement by
Amendment dated January 12, 2010 (“Amendment No. 1”). The Agreement as amended by the Amendment No.1 shall be referred to as the “Amended Agreement”. 

 

	 	C.	On December 11, 2009, Luna met and satisfied the Second Milestone contemplated by the Amended Agreement, thus completing its development obligations. Intuitive now
desires Luna to perform further development work under the Amended Agreement and this Amendment No. 2 represents the agreement between Intuitive and Luna regarding the new development work for 2010. 

 

	 	D.	Section 6 of Amendment No. 1 provides that Intuitive shall pay Luna for further development work at its previously provided 2010 hourly rates and other direct
development costs (materials at a cost plus normal commercial burden), subject to a [****]% discount until Intuitive has received a $[****] cumulative credit or discount. 

 

	 	E.	Intuitive now desires for Luna to perform $[****] of development work in 2010. [****] 

Intuitive and Luna agree to amend the Amended Agreement as follows: 
  

	 	1.	Terms not defined in this Amendment No. 2 shall have the meaning assigned to them in the Amended Agreement. 

 

	 	2.	Milestones and Luna Product Specifications (Exhibit 2.1) to the Amended Agreement are hereby deleted in their entirety and replaced by new Milestones and Luna Product
Specifications (Exhibit 2.1) attached to this Amendment. 

  

	 	3.	In 2010, Intuitive hereby requests that Luna perform up to $[****] of Development Work pursuant to Exhibit 2.1 attached hereto. [****] Per Section 6.1 of Amendment
No. 1, Intuitive shall pay Luna for this requested Development Work based on monthly invoices, which will be on net 30 payment terms. [****] 

  

	 	4.	Except as specifically provided for herein, all of the terms and conditions of the Agreement shall remain in full force and effect. In the event of a conflict or
inconsistency between the terms and conditions contained in this Amendment No. 2 and the Amended Agreement, the provisions herein shall prevail. 

 

 1 

 IN WITNESS WHEREOF, the parties have caused this Amendment No. 2 to be executed as of the
Amendment Date. 
  

									
	INTUITIVE SURGICAL, INC.	 		 	LUNA INNOVATIONS, INC.
					
	Sign:	 	 /s/ David Rosa
	 		 	Sign:	 	 /s/ Kent A. Murphy

	Name:	 	 David Rosa
	 		 	Name:	 	 Kent A. Murphy

	Title:	 	 VP, Product Development
	 		 	Title:	 	 CEO

	Date:	 	 4/20/10
	 		 	Date:	 	 April 27, 2010

 

 CERTAIN CONFIDENTIAL INFORMATION CONTAINED
IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2
OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 

 EXHIBIT 2.1 

MILESTONES AND LUNA PRODUCT SPECIFICATIONS 

[****] 
  

 CERTAIN CONFIDENTIAL INFORMATION CONTAINED
IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2
OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.Exhibit 10.10

 Exhibit 10.10 

SECURED PROMISSORY NOTE 
  

			
	U.S. $5,000,000.00	  	Dated: January 12, 2010

FOR VALUE RECEIVED, the undersigned, Luna Innovations Incorporated, a Delaware corporation, and Luna Technologies, Inc., a
Delaware corporation (individually and collectively, called the “Borrower”), HEREBY UNCONDITIONALLY JOINTLY AND SEVERALLY PROMISE TO PAY to the order of Hansen Medical, Inc., a Delaware corporation (the
“Lender”), the principal sum of FIVE MILLION UNITED STATES DOLLARS (U.S. $5,000,000.00), in sixteen (16) equal consecutive installments, commencing on April 12, 2010, with subsequent installments payable on the last
Business Day of each July, October, January and April (each a “Payment Date”) of each calendar year thereafter in accordance with the amortization schedule set forth on Exhibit A attached hereto, and with the last such
installment to be due and payable on January 31, 2014 (as the same may be accelerated as provided herein, the “Maturity Date”) and in the amount necessary to repay in full the unpaid principal balance hereof. 

The Borrower further promises jointly and severally, as primary obligors and not as secondary obligors, sureties, guarantors or
accommodation makers, to pay interest on the outstanding principal amount of this Promissory Note (this “Note”) from the date hereof until the Maturity Date, at a rate per annum equal at all times to eight and one half percent
(8.5%) per annum, payable quarterly in arrears on each Payment Date, on the date of any prepayment of the Note, and on the Maturity Date in accordance with the amortization schedule set forth in Exhibit A attached hereto. 

Upon the occurrence and during the continuance of an Event of Default hereunder, interest hereon shall accrue at a rate per annum which
is 5% higher than the rate of interest set forth above; provided that payment of any such interest at such rate shall not constitute a waiver of any Event of Default and shall be without prejudice to the right of the Lender to exercise any of
its rights and remedies hereunder. All computations of interest shall be made on the basis of a year of 365 days for the actual number of days (including the first day but excluding the last day) occurring in the period for which such interest is
payable. 
 All payments hereunder shall be made in lawful money of the United States of America and in same day or immediately
available funds, prior to 3:00 p.m. (Eastern time), to Lender into the account specified in Exhibit B, or such other account as is designated in writing by Lender to the Administrative Borrower not less than 5 Business Days prior to any date
scheduled for payment hereunder. Borrower shall be entitled to pay such amounts to the last account designated by Lender (or as specified in Exhibit B if there has been no designation following the date of this Note) in the absence of any subsequent
re-designation. For the purposes of this Secured Promissory Note, “Administrative Borrower” shall mean Luna Innovations Incorporated. 

Whenever any payment hereunder shall be due on a day other than a Business Day (as defined below), then, except as otherwise provided
herein, such payment shall be made, and such interest payment date or other date shall occur, on the next succeeding Business Day, 

 
and such extension of time shall in such case be included in the computation of payment of interest hereunder. As used herein, “Business Day” means a day other than a Saturday or
a Sunday on which banks are open for business in California and Virginia. 
 The Borrower agrees to make all payments under this
Note and under any Collateral Document (as defined below) without setoff or deduction. Notwithstanding anything to the contrary herein, to the extent the Lender receives any payment on this Note that it later has to disgorge, remit, pay over or
otherwise part, such amount shall be deemed to have never been paid under this Note. 
 Notwithstanding anything to the contrary
herein, in no event shall the Borrower be obligated to pay the Lender interest, charges or fees at a rate in excess of the highest rate permitted by applicable law, including the Bankruptcy Code applicable pursuant to the Amended Plan of
Reorganization. 
 The Borrower may at any time and from time to time, prepay the outstanding amount hereof in whole or in part,
without premium or penalty. Partial prepayments shall be in an aggregate principal amount of at least $50,000 or a greater amount which is an integral multiple of $5,000. Prepayment may also be made under Section 4.1.4 of the Development and
Supply Agreement between Borrower and Lender of even date herewith. Partial prepayments shall first be applied to the outstanding principal balance hereunder (and Exhibit A shall be amended accordingly). 

Together with any prepayment hereunder, the Borrower shall pay accrued interest to (but excluding) the date of such prepayment on the
principal amount prepaid. 
 As used herein, “GAAP” means generally accepted accounting principles in the
United States as in effect from time to time; “Guarantor” means any guarantor hereof; “Guaranty” means any guaranty hereof provided by a Guarantor; “Indebtedness” means any indebtedness or
obligation for borrowed money, the deferred purchase price of property or leases which would be capitalized in accordance with GAAP, any reimbursement and other payment obligations in respect of letters of credit and surety or performance bonds, and
all net payment obligations in respect of derivative products; and any payment liability as a surety, guarantor, accommodation party or otherwise for or upon the indebtedness or obligation of any other Person of the nature described above;
“Lien” means any mortgage, deed of trust, pledge, security interest, charge or real estate encumbrance, lien (statutory or other), or other similar preferential arrangement (such as, any conditional sale or other title retention
agreement, any financing lease having substantially the same economic effect as any of the foregoing or any agreement to give any security interest); “Person” means an individual, corporation, partnership, limited liability company,
joint venture, trust, unincorporated organization or any other entity of whatever nature, including any governmental agency or authority; and “Subsidiary” means any corporation, association, partnership, limited liability company,
joint venture or other business entity of which more than 50% of the voting stock or other equity interest is owned directly or indirectly by any Person or one or more of the other Subsidiaries of such Person or a combination thereof. 

 

 2 

 Unless otherwise defined or the context otherwise requires, all accounting terms used herein
shall be construed, and all accounting determinations and computations required hereunder shall be made, in accordance with GAAP, consistently applied. 

Any of the following events which shall occur shall constitute an “Event of Default”: 

1. The Borrower shall fail to pay when due any amount of principal or interest hereunder or other amount due and payable under this Note
or any Collateral Document, and, in the case of any such non-payment, the continuation of such failure for five (5) Business days after such amount was due and payable. 

2. Any material representation or warranty by the Borrower in this Note or in the Collateral Documents shall prove to have been breached
in any material respect when made. 
 3. The Borrower shall admit in writing its inability to, or shall fail generally to, pay
its debts (including its payrolls) as such debts become due, or shall make a general assignment for the benefit of creditors; or the Borrower shall file a voluntary petition in bankruptcy or a petition or answer seeking reorganization, to effect a
plan or other arrangement with creditors or any other relief under the Bankruptcy Reform Act of 1978, as amended or recodified from time to time (the “Bankruptcy Code”) or under any other state or federal law relating to bankruptcy
or reorganization granting relief to debtors, whether now or hereafter in effect, or shall file an answer admitting the jurisdiction of the court and the material allegations of any involuntary petition filed against the Borrower pursuant to the
Bankruptcy Code or any such other state or federal law; or the Borrower shall be adjudicated a bankrupt, or shall make an assignment for the benefit of creditors, or shall apply for or consent to the appointment of any custodian, receiver or trustee
for all or any substantial part of the Borrower’s property, or shall take any action to authorize any of the actions or events set forth above in this paragraph; or an involuntary petition seeking any of the relief specified in this paragraph
shall be filed against the Borrower and shall not be dismissed within 60 days, provided that Borrower is seeking to dismiss such involuntary petition; or any order for relief shall be entered against the Borrower in any involuntary proceeding under
the Bankruptcy Code or any such other state or federal law referred to in this paragraph 3. 
 4. The Borrower shall
(i) liquidate, wind up or dissolve (or suffer any liquidation, wind-up or dissolution), except to the extent expressly permitted by this Note, (ii) suspend or terminate its operations other than in the ordinary course of business, or
(iii) take any action to authorize any of the actions or events set forth above in this paragraph 4. 
 5. The Borrower
shall (i) fail to make any payment of any principal of, or interest or premium on any Indebtedness (other than the Qualified Loan or in respect of this Note) in an aggregate amount (including undrawn committed or available amounts) of at least
$250,000 when due (whether by scheduled maturity, required prepayment, acceleration, demand or otherwise) and such failure shall continue after the applicable grace period, if any, specified in the agreement or instrument relating to such
Indebtedness as of the date of such failure, or (ii) there shall be an event of default under the Qualified Loan which has been recognized by the lender or is otherwise obvious and unambiguous under the Qualified Loan and has not been waived in
writing or is not the subject to a written forbearance agreement within the applicable cure period under the Qualified Loan. 
  

 3 

 6. A final judgment or order for the payment of money in excess of $250,000 which is not
fully covered by third-party insurance shall be rendered against the Borrower, or any non-monetary judgment or order shall be rendered against the Borrower, any Guarantor or any such Subsidiary which has or would reasonably be expected to have a
Material Adverse Effect, and in each case there shall be any period of thirty (30) consecutive days during which such judgment continues unsatisfied or during which a stay of enforcement of such judgment or order, by reason of a pending appeal
or otherwise, shall not be in effect. 
 7. The Borrower shall fail to perform or observe (a) any covenant set forth in
Sections 5(b)(ii), 5(b)(iii), or 5(b)(v) of the Security Agreement or (b) any other material term, covenant or agreement contained in the Collateral Documents on its part to be performed or observed and the failure described in subsection
(b) hereof has or is reasonably likely to have an adverse impact on Borrower or any Guarantor of at least $250,000 and which remains unremedied or uncured until the earlier of ten (10) days after notice from Lender or sixty (60) days
after Borrower first has knowledge of such failure to perform or observe. 
 8. Any levy upon, seizure or attachment of any of
the Collateral with a value of at least $250,000 individually or $500,000 in the aggregate which shall not have been rescinded or withdrawn. 

If any Event of Default shall occur and be continuing, the Lender may (i) with written notice to the Administrative Borrower,
declare the entire unpaid principal amount of this Note, all interest accrued and unpaid hereon and all other amounts payable hereunder to be forthwith due and payable, whereupon all unpaid principal under this Note, all such accrued interest and
all such other amounts shall become and be forthwith due and payable, without presentment, demand, protest or further notice of any kind, all of which are hereby expressly waived by the Borrower, provided that upon the occurrence of an actual
or deemed entry of an order for relief with respect to the Borrower under the Bankruptcy Code, the result which would otherwise occur only upon giving of notice by the Lender to the Borrower as specified above shall occur automatically, without the
giving of any such notice; and (ii) whether or not the actions referred to in clause (i) have been taken, exercise any or all of the Lender’s rights and remedies under the Collateral Documents and any Guaranty, and proceed to enforce
all other rights and remedies available to the Lender under applicable law. 
 No amendment or waiver of any provision of this
Note or any other Collateral Document, nor any consent to any departure by the Borrower therefrom, shall in any event be effective unless the same shall be in writing and signed by the Lender and then such amendment, waiver or consent shall be
effective only in the specific instance and for the specific purpose for which given. 
 All notices and other communications
provided for hereunder shall, unless otherwise stated herein, be in writing and delivered by hand or sent by a nationally recognized overnight courier service (with tracking capability) to the respective parties hereto at or to the following
addresses (or at or to such other address as shall be designated by any party in a written notice to the other parties hereto): 
  

			
	 If to the Lender:
	  	Hansen Medical, Inc.
		  	800 E. Middlefield Road
		  	Mountain View, CA 94043
		  	Attn: Arthur Hsieh

  

 4 

			
	 If to the Borrower:
	  	Luna Innovations Incorporated
		  	One Riverside Circle, Suite 400
		  	Roanoke, VA 24016
		  	Attn: Fourd Kemper

 All such notices and communications
shall be effective when received. 
 This Note and the Collateral Documents reflect the entire agreement between Borrower and
Lender with respect to the matters set forth therein and supersede any prior agreements, commitments, drafts, communication, discussions and understandings, oral or written, with respect thereto. 

No failure on the part of the Lender to exercise, and no delay in exercising, any right, remedy, power or privilege hereunder shall
operate as a waiver thereof, nor shall any single or partial exercise of any such right, remedy, power or privilege preclude any other or further exercise thereof or the exercise of any other right, remedy, power or privilege. The rights and
remedies under this Note, or any other Collateral Document are cumulative and not exclusive of any rights, remedies, powers and privileges that may otherwise be available to the Lender. 

Time is of the essence for the performance of each and every obligation under this Note. 

Whenever possible, each provision of this Note shall be interpreted in such manner as to be effective and valid under all applicable laws
and regulations. If, however, any provision of this Note shall be prohibited by or invalid under any such law or regulation in any jurisdiction, it shall, as to such jurisdiction, be deemed modified to conform to the minimum requirements of such law
or regulation, or, if for any reason it is not deemed so modified, it shall be ineffective and invalid only to the extent of such prohibition or invalidity without affecting the remaining provisions of this Note, or the validity or effectiveness of
such provision in any other jurisdiction. 
 The Borrower agrees to pay on demand all reasonable costs and expenses of the
Lender, and the fees and disbursements of counsel, in connection with (i) any Events of Default (including enforcement of this Note and the Collateral Documents, and (ii) any out-of-court workout or restructuring or in any bankruptcy case,
including, without limitation, any and all reasonable costs and expenses sustained by the Lender as a result of any failure by the Borrower to perform or observe in a material respect its obligations contained herein. In addition, the Borrower
agrees to indemnify the Lender against and hold it harmless from any and all present and future stamp, transfer, documentary and other such taxes, levies, fees, assessments and other 

 

 5 

 
charges, not including any income taxes, imposed by any jurisdiction upon the Secured Party by reason of the execution, delivery, performance and enforcement of this Note or any other Collateral
Document. 
 This Note shall be binding upon, inure to the benefit of and be enforceable by the Borrower, the Lender and their
respective permitted successors and assigns. 
 The Borrower will maintain a register in which it will record the initial
ownership of this Note and any changes in ownership of this Note which occur as permitted by and in compliance with the terms hereof. 

The Borrower shall not have the right to assign its rights and obligations in connection with this Note and any Collateral Document or
any interest herein or therein without the prior written consent of the Lender. 
 This Note is secured by certain collateral
(the “Collateral”) more specifically described in the Security Agreement (the “Security Agreement”) and the Patent and Trademark Security Agreement between the Borrower and the Lender of even date herewith, any
control agreement for the purposes of perfecting the Lender’s security interest in any deposit or securities accounts of the Borrower and any other agreement pursuant to which the Borrower, any Guarantor or any other Person provides a Lien on
its assets in favor of the Lender (all collectively called the “Collateral Documents”). 
 THIS NOTE SHALL BE
GOVERNED BY, AND INTERPRETED IN ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE, WITHOUT REGARD TO CONFLICTS OF LAWS, OR APPLICABLE FEDERAL LAW AS TO A PARTICULAR SUBJECT WHERE FEDERAL LAW GOVERNS, SUCH AS FOR EXAMPLE, THE PATENT ACT GOVERNING
PATENTS OR THE COPYRIGHT ACT GOVERNING COPYRIGHTS. 
 Each Party hereby (i) consents and submits to the venue and exclusive
jurisdiction of the Bankruptcy Court and the courts of New Castle County in the State of Delaware and the Federal courts of the United States sitting in such part of the District of Delaware (without prejudice to either the retained rights and
jurisdiction of the Bankruptcy Court), (ii) agrees that all claims may be heard and determined in such courts, (iii) irrevocably waives (to the extent permitted by applicable law) any objection that it now or hereafter may have to the
laying of venue of any such action or proceeding brought in any of the foregoing courts, and any objection on the ground that any such action or proceeding in any such court has been brought in an inconvenient forum, and (iv) agrees that a
final judgment in any such action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner permitted by law. Each of the parties hereby consents to service of process by any party in
any suit, action or proceeding in accordance with such applicable law. 
 THE BORROWER AND, BY ITS ACCEPTANCE HEREOF, THE
LENDER, HEREBY WAIVE THEIR RESPECTIVE RIGHTS TO A TRIAL BY JURY OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF OR RELATED TO THIS NOTE. 
  

 6 

 IN WITNESS WHEREOF, the Borrower has duly executed this Note, as of the date first above
written. 
  

			
	LUNA INNOVATIONS INCORPORATED
		
	By	 	
 

		 	Name: Kent A. Murphy
		 	Title: CEO
	
	LUNA TECHNOLOGIES INC.
		
	By	 	
 

		 	Name: Scott A. Graeff
		 	Title: President

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00173-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00173-of-00352.parquet"}]]