Document:

Document

Luna Innovations Incorporated
2020 Employee Stock Purchase Plan
Adopted by the Board of Directors: April 7, 2020
Approved by the Stockholders: May 11, 2020
1.General; Purpose.
(a)The Plan provides a means by which Eligible Employees of the Company and certain designated Related Corporations may be given an opportunity to purchase shares of Common Stock.  The Plan permits the Company to grant a series of Purchase Rights to Eligible Employees under an Employee Stock Purchase Plan.
(b)The Company, by means of the Plan, seeks to retain the services of such Employees, to secure and retain the services of new Employees and to provide incentives for such persons to exert maximum efforts for the success of the Company and its Related Corporations.
2.Administration.
(a)The Board will administer the Plan.  The Board may delegate administration of the Plan to a Committee or Committees, as provided in Section 2(c).  
(b)The Board will have the power, subject to, and within the limitations of, the express provisions of the Plan:
(i)To determine when and how Purchase Rights will be granted and the provisions of each Offering (which need not be identical).
(ii)To designate from time to time which Related Corporations will be eligible to participate in the Plan.
(iii)To construe and interpret the Plan and Purchase Rights, and to establish, amend and revoke rules and regulations for the administration of the Plan.  The Board, in the exercise of this power, may correct any defect, omission or inconsistency in the Plan, in a manner and to the extent it deems necessary or expedient to make the Plan fully effective.
(iv)To settle all controversies regarding the Plan and Purchase Rights.
(v)To amend the Plan at any time as provided in Section 12.
(vi)To suspend or terminate the Plan at any time as provided in Section 12.
(vii)Generally, to exercise such powers and to perform such acts as it deems necessary or expedient to promote the best interests of the Company and its Related Corporations and to carry out the intent that the Plan be treated as an Employee Stock Purchase Plan.
 

(viii)To adopt such procedures and sub-plans as are necessary or appropriate to permit participation in the Plan by Employees who are foreign nationals or employed outside the United States.
(c)The Board may delegate some or all of the administration of the Plan to a Committee or Committees.  If administration is delegated to a Committee, the Committee will have, in connection with the administration of the Plan, the powers theretofore possessed by the Board that have been delegated to the Committee, including the power to delegate to a subcommittee any of the administrative powers the Committee is authorized to exercise (and references to the Board in this Plan and in any applicable Offering Document will thereafter be to the Committee or subcommittee), subject, however, to such resolutions, not inconsistent with the provisions of the Plan, as may be adopted from time to time by the Board.  The Board may retain the authority to concurrently administer the Plan with the Committee and may, at any time, revest in the Board some or all of the powers previously delegated.  Whether or not the Board has delegated administration of the Plan to a Committee, the Board will have the final power to determine all questions of policy and expediency that may arise in the administration of the Plan.
(d)All determinations, interpretations and constructions made by the Board in good faith will not be subject to review by any person and will be final, binding and conclusive on all persons.
3.Shares of Common Stock Subject to the Plan.
(a)Subject to Section 11(a) relating to Capitalization Adjustments, the aggregate number of shares of Common Stock that may be issued under the Plan will not exceed 1,200,000 shares.
(b)If any Purchase Right terminates without having been exercised in full, the shares of Common Stock not purchased under such Purchase Right will again become available for issuance under the Plan.  
(c)The stock issuable under the Plan will be shares of authorized but unissued or reacquired Common Stock, including shares repurchased by the Company on the open market.  
4.Grant of Purchase Rights; Offering.
(a)The Board may from time to time grant or provide for the grant of Purchase Rights to Eligible Employees under an Offering (consisting of one or more Purchase Periods) on an Offering Date or Offering Dates selected by the Board.  Each Offering will be in such form and will contain such terms and conditions as the Board will deem appropriate and will comply with the requirement of Section 423(b)(5) of the Code that all Employees granted Purchase Rights will have the same rights and privileges.  The terms and conditions of an Offering will be incorporated by reference into the Plan and treated as part of the Plan.  The provisions of separate Offerings need not be identical, but each Offering will include (through incorporation of the provisions of this Plan by reference in the document comprising the Offering or otherwise) the period during which the Offering will be effective, which period will not exceed twenty-
 

seven (27) months beginning with the Offering Date, and the substance of the provisions contained in Sections 5 through 8, inclusive.
(b)If a Participant has more than one Purchase Right outstanding under the Plan, unless he or she otherwise indicates in forms delivered to the Company: (i) each form will apply to all of his or her Purchase Rights under the Plan, and (ii) a Purchase Right with a lower exercise price (or an earlier-granted Purchase Right, if different Purchase Rights have identical exercise prices) will be exercised to the fullest possible extent before a Purchase Right with a higher exercise price (or a later-granted Purchase Right if different Purchase Rights have identical exercise prices) will be exercised.
(c)The Board will have the discretion to structure an Offering so that if the Fair Market Value of a share of Common Stock on the first Trading Day of a new Purchase Period within that Offering is less than or equal to the Fair Market Value of a share of Common Stock on the Offering Date for that Offering, then (i) that Offering will terminate immediately as of that first Trading Day, and (ii) the Participants in such terminated Offering will be automatically enrolled in a new Offering beginning on the first Trading Day of such new Purchase Period.  
5.Eligibility.
(a)Purchase Rights may be granted only to Employees of the Company or, as the Board may designate in accordance with Section 2(b), to Employees of a Related Corporation.  Except as provided in Section 5(b), an Employee will not be eligible to be granted Purchase Rights unless, on the Offering Date, the Employee has been in the employ of the Company or the Related Corporation, as the case may be, for such continuous period preceding such Offering Date as the Board may require, but in no event will the required period of continuous employment be equal to or greater than two (2) years.  In addition, the Board may provide that no Employee will be eligible to be granted Purchase Rights unless, on the Offering Date, such Employee’s customary employment with the Company or the Related Corporation is more than twenty (20) hours per week and more than five (5) months per calendar year or such other criteria as the Board may determine consistent with Section 423 of the Code.
(b)The Board may provide that each person who, during the course of an Offering, first becomes an Eligible Employee will, on a date or dates specified in the Offering which coincides with the day on which such person becomes an Eligible Employee or which occurs thereafter, receive a Purchase Right under that Offering, which Purchase Right will thereafter be deemed to be a part of that Offering.  Such Purchase Right will have the same characteristics as any Purchase Rights originally granted under that Offering, as described herein, except that:
(i)the date on which such Purchase Right is granted will be the “Offering Date” of such Purchase Right for all purposes, including determination of the exercise price of such Purchase Right;
(ii)the period of the Offering with respect to such Purchase Right will begin on its Offering Date and end coincident with the end of such Offering; and
 

(iii)the Board may provide that if such person first becomes an Eligible Employee within a specified period of time before the end of the Offering, he or she will not receive any Purchase Right under that Offering.
(c)No Employee will be eligible for the grant of any Purchase Rights if, immediately after any such Purchase Rights are granted, such Employee owns stock possessing five percent (5%) or more of the total combined voting power or value of all classes of stock of the Company or of any Related Corporation.  For purposes of this Section 5(c), the rules of Section 424(d) of the Code will apply in determining the stock ownership of any Employee, and stock which such Employee may purchase under all outstanding Purchase Rights and options will be treated as stock owned by such Employee.
(d)As specified by Section 423(b)(8) of the Code, an Eligible Employee may be granted Purchase Rights only if such Purchase Rights, together with any other rights granted under all Employee Stock Purchase Plans of the Company and any Related Corporations, do not permit such Eligible Employee’s rights to purchase stock of the Company or any Related Corporation to accrue at a rate which exceeds twenty-five thousand dollars ($25,000) of Fair Market Value of such stock (determined at the time such rights are granted, and which, with respect to the Plan, will be determined as of their respective Offering Dates) for each calendar year in which such rights are outstanding at any time.
(e)Officers of the Company and any designated Related Corporation, if they are otherwise Eligible Employees, will be eligible to participate in Offerings under the Plan.  Notwithstanding the foregoing, the Board may provide in an Offering that Employees who are highly compensated Employees within the meaning of Section 423(b)(4)(D) of the Code will not be eligible to participate.
6.Purchase Rights; Purchase Price.
(a)On each Offering Date, each Eligible Employee, pursuant to an Offering made under the Plan, will be granted a Purchase Right to purchase up to that number of shares of Common Stock purchasable either with a percentage or with a maximum dollar amount, as designated by the Board, but in either case not exceeding fifteen percent (15%) of such Employee’s earnings (as defined by the Board in each Offering) during the period that begins on the Offering Date (or such later date as the Board determines for a particular Offering) and ends on the date stated in the Offering, which date will be no later than the end of the Offering.
(b)The Board will establish one (1) or more Purchase Dates during an Offering on which Purchase Rights granted pursuant to that Offering will be exercised and shares of Common Stock will be purchased in accordance with such Offering.
(c)In connection with each Offering made under the Plan, the Board may specify (i) a maximum number of shares of Common Stock that may be purchased by any Participant pursuant to such Offering, (ii) a maximum number of shares of Common Stock that may be purchased by any Participant on any Purchase Date pursuant to such Offering, (iii) a maximum aggregate number of shares of Common Stock that may be purchased by all Participants pursuant 
 

to such Offering, and/or (iv) a maximum aggregate number of shares of Common Stock that may be purchased by all Participants on any Purchase Date pursuant to such Offering.  If the aggregate purchase of shares of Common Stock issuable upon exercise of Purchase Rights granted under such Offering would exceed any such maximum aggregate number, then, in the absence of any Board action otherwise, a pro rata (based on each Participant’s accumulated Contributions) allocation of the shares of Common Stock available will be made in as nearly a uniform manner as will be practicable and equitable.
(d)The purchase price of shares of Common Stock acquired pursuant to Purchase Rights will be not less than the lesser of:
(i)an amount equal to eighty-five percent (85%) of the Fair Market Value of the shares of Common Stock on the Offering Date; or
(ii)an amount equal to eighty-five percent (85%) of the Fair Market Value of the shares of Common Stock on the applicable Purchase Date.
7.Participation; Withdrawal; Termination.
(a)An Eligible Employee may elect to authorize payroll deductions as the means of making Contributions by completing and delivering to the Company, within the time specified in the Offering, an enrollment form provided by the Company.  The enrollment form will specify the amount of Contributions not to exceed the maximum amount specified by the Board.  Each Participant’s Contributions will be credited to a bookkeeping account for such Participant under the Plan and will be deposited with the general funds of the Company except where applicable law requires that Contributions be deposited with a third party.  To the extent provided in the Offering, a Participant may begin such Contributions on or after the Offering Date.  To the extent provided in the Offering, a Participant may thereafter decrease (including to zero) or increase his or her Contributions.  To the extent specifically provided in the Offering, in addition to or instead of making Contributions by payroll deductions, a Participant may make Contributions through payment by cash or check prior to a Purchase Date.
(b)During an Offering, a Participant may cease making Contributions and withdraw from the Offering by delivering to the Company a withdrawal form provided by the Company.  The Company may impose a deadline before a Purchase Date for withdrawing.  Upon such withdrawal, such Participant’s Purchase Right in that Offering will immediately terminate and the Company will distribute to such Participant all of his or her accumulated but unused Contributions without interest.  A Participant’s withdrawal from an Offering will have no effect upon his or her eligibility to participate in any other Offerings under the Plan, but such Participant will be required to deliver a new enrollment form to participate in subsequent Offerings.
(c)Purchase Rights granted pursuant to any Offering under the Plan will terminate immediately if the Participant either (i) is no longer an Employee for any reason or for no reason (subject to any post-employment participation period required by law) or (ii) is otherwise no 
 

longer eligible to participate.  The Company will distribute to such individual all of his or her accumulated but unused Contributions without interest.
(d)Purchase Rights will not be transferable by a Participant except by will, by the laws of descent and distribution, or, if permitted by the Company, by a beneficiary designation as described in Section 10.  During a Participant’s lifetime, Purchase Rights will be exercisable only by such Participant.
(e)Unless otherwise specified in an Offering, the Company will have no obligation to pay interest on Contributions.
8.Exercise of Purchase Rights.
(a)On each Purchase Date, each Participant’s accumulated Contributions will be applied to the purchase of shares of Common Stock, up to the maximum number of shares of Common Stock permitted by the Plan and the applicable Offering, at the purchase price specified in the Offering.  No fractional shares will be issued upon the exercise of Purchase Rights unless specifically provided for in the Offering.
(b)If any amount of accumulated Contributions remains in a Participant’s account after the purchase of shares of Common Stock and such remaining amount is less than the amount required to purchase one share of Common Stock on the final Purchase Date of an Offering, then such remaining amount will be held in such Participant’s account for the purchase of shares of Common Stock under the next Offering under the Plan, unless such Participant withdraws from or is not eligible to participate in such next Offering, in which case such amount will be distributed to such Participant after the final Purchase Date without interest.  If the amount of Contributions remaining in a Participant’s account after the purchase of shares of Common Stock is at least equal to the amount required to purchase one (1) whole share of Common Stock on the final Purchase Date of an Offering, then such remaining amount will be distributed in full to such Participant after the final Purchase Date of such Offering without interest.
(c)No Purchase Rights may be exercised to any extent unless the shares of Common Stock to be issued upon such exercise under the Plan are covered by an effective registration statement pursuant to the Securities Act and the Plan is in material compliance with all applicable federal, state, foreign and other securities and other laws applicable to the Plan.  If, on a Purchase Date, the shares of Common Stock are not so registered or the Plan is not in such compliance, no Purchase Rights will be exercised on such Purchase Date, and the Purchase Date will be delayed until the shares of Common Stock are subject to such an effective registration statement and the Plan is in such compliance, except that the Purchase Date will not be delayed more than twelve (12) months and the Purchase Date will in no event be more than twenty-seven (27) months from the Offering Date.  If, on the Purchase Date, as delayed to the maximum extent permissible, the shares of Common Stock are not so registered or the Plan is not in such compliance, no Purchase Rights will be exercised and all accumulated but unused Contributions will be distributed to the Participants without interest.
 

9.Covenants of the Company.
The Company will seek to obtain from each federal, state, foreign or other regulatory commission or agency having jurisdiction over the Plan such authority as may be required to grant Purchase Rights and issue and sell shares of Common Stock thereunder.  If, after commercially reasonable efforts, the Company is unable to obtain the authority that counsel for the Company deems necessary for the grant of Purchase Rights or the lawful issuance and sale of Common Stock under the Plan, and at a commercially reasonable cost, the Company will be relieved from any liability for failure to grant Purchase Rights and/or to issue and sell Common Stock upon exercise of such Purchase Rights.
10.Designation of Beneficiary.
(a)The Company may, but is not obligated to, permit a Participant to submit a form designating a beneficiary who will receive any shares of Common Stock and/or Contributions from the Participant’s account under the Plan if the Participant dies before such shares and/or Contributions are delivered to the Participant.  The Company may, but is not obligated to, permit the Participant to change such designation of beneficiary.  Any such designation and/or change must be on a form approved by the Company.
(b)If a Participant dies, and in the absence of a valid beneficiary designation, the Company will deliver any shares of Common Stock and/or Contributions to the executor or administrator of the estate of the Participant.  If no executor or administrator has been appointed (to the knowledge of the Company), the Company, in its sole discretion, may deliver such shares of Common Stock and/or Contributions to the Participant’s spouse, dependents or relatives, or if no spouse, dependent or relative is known to the Company, then to such other person as the Company may designate.
11.Adjustments upon Changes in Common Stock; Corporate Transactions.
(a)In the event of a Capitalization Adjustment, the Board will appropriately and proportionately adjust: (i) the class(es) and maximum number of securities subject to the Plan pursuant to Section 3(a); (ii) the class(es) and number of securities subject to, and the purchase price applicable to outstanding Offerings and Purchase Rights; and (iii) the class(es) and number of securities that are the subject of the purchase limits under each ongoing Offering.  The Board will make these adjustments, and its determination will be final, binding and conclusive.  
(b)In the event of a Corporate Transaction, (i) any surviving or acquiring corporation (or its parent company) may assume or continue outstanding Purchase Rights or may substitute similar rights (including a right to acquire the same consideration paid to the stockholders in the Corporate Transaction) for outstanding Purchase Rights, or (ii) if any surviving or acquiring corporation (or its parent company) does not assume or continue outstanding Purchase Rights or does not substitute similar rights for outstanding Purchase Rights, then the Participants’ accumulated Contributions will be used to purchase shares of Common Stock within ten (10) business days prior to the Corporate Transaction under such Purchase Rights, and such Purchase Rights will terminate immediately after such purchase.
 

12.Amendment, Suspension or Termination of the Plan.
(a)The Board may amend the Plan at any time in any respect the Board deems necessary or advisable.  However, except as provided in Section 11(a) relating to Capitalization Adjustments, stockholder approval will be required for any amendment of the Plan for which stockholder approval is required by applicable law or listing requirements, including any amendment that either (i) materially increases the number of shares of Common Stock available for issuance under the Plan, (ii) materially expands the class of individuals eligible to become Participants and receive Purchase Rights, (iii) materially increases the benefits accruing to Participants under the Plan or materially reduces the price at which shares of Common Stock may be purchased under the Plan, (iv) materially extends the term of the Plan, or (v) expands the types of awards available for issuance under the Plan, but in each of (i) through (v) above only to the extent stockholder approval is required by applicable law or listing requirements.
(b)The Board may suspend or terminate the Plan at any time.  No Purchase Rights may be granted under the Plan while the Plan is suspended or after it is terminated.
(c)Any benefits, privileges, entitlements and obligations under any outstanding Purchase Rights granted before an amendment, suspension or termination of the Plan will not be materially impaired by any such amendment, suspension or termination except (i) with the consent of the person to whom such Purchase Rights were granted, (ii) as necessary to comply with any laws, listing requirements, or governmental regulations (including, without limitation, the provisions of Section 423 of the Code and the regulations and other interpretive guidance issued thereunder relating to Employee Stock Purchase Plans) including, without limitation, any such regulations or other guidance that may be issued or amended after the Adoption Date, or (iii) as necessary to obtain or maintain favorable tax, listing, or regulatory treatment.  To be clear, the Board may amend outstanding Purchase Rights without a Participant’s consent if such amendment is necessary to ensure that the Purchase Right and/or the Plan complies with the requirements of Section 423 of the Code.
        Notwithstanding anything in the Plan or any Offering Document to the contrary, the Board will be entitled to: (i) establish the exchange ratio applicable to amounts withheld in a currency other than U.S. dollars; (ii) permit Contributions in excess of the amount designated by a Participant in order to adjust for mistakes in the Company’s processing of properly completed Contribution elections; (iii) establish reasonable waiting and adjustment periods and/or accounting and crediting procedures to ensure that amounts applied toward the purchase of Common Stock for each Participant properly correspond with amounts withheld from the Participant’s Contributions; (iv) amend any outstanding Purchase Rights or clarify any ambiguities regarding the terms of any Offering to enable the Purchase Rights to qualify under and/or comply with Section 423 of the Code; and (v) establish other limitations or procedures as the Board determines in its sole discretion advisable that are consistent with the Plan.  The actions of the Board pursuant to this paragraph will not be considered to alter or impair any Purchase Rights granted under an Offering as they are part of the initial terms of each Offering and the Purchase Rights granted under each Offering.

 

13.Effective Date of Plan.
The Plan will become effective on the Effective Date.  No Purchase Rights will be exercised unless and until the Plan has been approved by the stockholders of the Company, which approval must be within 12 months before or after the date the Plan is adopted (or if required under Section 12(a), materially amended) by the Board. 
14.Miscellaneous Provisions.
(a)Proceeds from the sale of shares of Common Stock pursuant to Purchase Rights will constitute general funds of the Company.
(b)A Participant will not be deemed to be the holder of, or to have any of the rights of a holder with respect to, shares of Common Stock subject to Purchase Rights unless and until the Participant’s shares of Common Stock acquired upon exercise of Purchase Rights are recorded in the books of the Company (or its transfer agent).
(c)The Plan and Offering do not constitute an employment contract.  Nothing in the Plan or in the Offering will in any way alter the at will nature of a Participant’s employment or  be deemed to create in any way whatsoever any obligation on the part of any Participant to continue in the employ of the Company or a Related Corporation, or on the part of the Company or a Related Corporation to continue the employment of a Participant.
(d)The provisions of the Plan will be governed by the laws of the State of Delaware without resort to that state’s conflicts of laws rules.
15.Definitions.
As used in the Plan, the following definitions will apply to the capitalized terms indicated below:
(a)“Adoption Date” means April 7, 2020, which is the date the Plan was adopted by the Board.
(b)“Board” means the Board of Directors of the Company.
(c)“Capitalization Adjustment” means any change that is made in, or other events that occur with respect to, the Common Stock subject to the Plan or subject to any Purchase Right after the Adoption Date without the receipt of consideration by the Company through merger, consolidation, reorganization, recapitalization, reincorporation, stock dividend, dividend in property other than cash, large nonrecurring cash dividend, stock split, reverse stock split, liquidating dividend, combination of shares, exchange of shares, change in corporate structure or other similar equity restructuring transaction, as that term is used in Statement of Financial Accounting Standards Board Accounting Standards Codification Topic 718 (or any successor thereto).  Notwithstanding the foregoing, the conversion of any convertible securities of the Company will not be treated as a Capitalization Adjustment.
 

(d)“Code” means the Internal Revenue Code of 1986, as amended, including any applicable regulations and guidance thereunder.
(e)“Committee” means a committee of one (1) or more members of the Board to whom authority has been delegated by the Board in accordance with Section 2(c).
(f)“Common Stock” means the common stock of the Company.
(g)“Company” means Luna Innovations Incorporated, a Delaware corporation.
(h)“Contributions” means the payroll deductions and other additional payments specifically provided for in the Offering that a Participant contributes to fund the exercise of a Purchase Right.  A Participant may make additional payments into his or her account if specifically provided for in the Offering, and then only if the Participant has not already had the maximum permitted amount withheld during the Offering through payroll deductions.
(i)“Corporate Transaction” means the consummation, in a single transaction or in a series of related transactions, of any one or more of the following events:
(i)a sale or other disposition of all or substantially all, as determined by the Board, in its sole discretion, of the consolidated assets of the Company and its Subsidiaries;
(ii)a sale or other disposition of at least fifty percent (50%) of the outstanding securities of the Company;
(iii)a merger, consolidation or similar transaction following which the Company is not the surviving corporation; or
(iv)a merger, consolidation or similar transaction following which the Company is the surviving corporation but the shares of Common Stock outstanding immediately preceding the merger, consolidation or similar transaction are converted or exchanged by virtue of the merger, consolidation or similar transaction into other property, whether in the form of securities, cash or otherwise.
(j)“Director” means a member of the Board.
(k)“Effective Date” means the effective date of this Plan document, which is the date of the annual meeting of stockholders of the Company held in 2020, provided that this Plan is approved by the Company’s stockholders at such meeting.
(l)“Eligible Employee” means an Employee who meets the requirements set forth in the document(s) governing the Offering for eligibility to participate in the Offering, provided that such Employee also meets the requirements for eligibility to participate set forth in the Plan.
(m)“Employee” means any person, including an Officer or Director, who is “employed” for purposes of Section 423(b)(4) of the Code by the Company or a Related 
 

Corporation.  However, service solely as a Director, or payment of a fee for such services, will not cause a Director to be considered an “Employee” for purposes of the Plan.  
(n)“Employee Stock Purchase Plan” means a plan that grants Purchase Rights intended to be options issued under an “employee stock purchase plan,” as that term is defined in Section 423(b) of the Code.
(o)“Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.
(p)“Fair Market Value” means, as of any date, the value of the Common Stock determined as follows:
(i)If the Common Stock is listed on any established stock exchange or traded on any established market, the Fair Market Value of a share of Common Stock will be, unless otherwise determined by the Board, the closing sales price for such stock as quoted on such exchange or market (or the exchange or market with the greatest volume of trading in the Common Stock) on the date of determination, as reported in a source the Board deems reliable.
(ii)Unless otherwise provided by the Board, if there is no closing sales price for the Common Stock on the date of determination, then the Fair Market Value will be the closing sales price on the last preceding date for which such quotation exists.  
(iii)In the absence of such markets for the Common Stock, the Fair Market Value will be determined by the Board in good faith in compliance with applicable laws and in a manner that complies with Section 409A of the Code.
(q)“Offering” means the grant to Eligible Employees of Purchase Rights, with the exercise of those Purchase Rights automatically occurring at the end of one or more Purchase Periods.  The terms and conditions of an Offering will generally be set forth in the “Offering Document” approved by the Board for that Offering.
(r)“Offering Date” means a date selected by the Board for an Offering to commence.
(s)“Officer” means a person who is an officer of the Company or a Related Corporation within the meaning of Section 16 of the Exchange Act.
(t)“Participant” means an Eligible Employee who holds an outstanding Purchase Right. 
(u)“Plan” means this Luna Innovations Incorporated 2020 Employee Stock Purchase Plan.
(v)“Purchase Date” means one or more dates during an Offering selected by the Board on which Purchase Rights will be exercised and on which purchases of shares of Common Stock will be carried out in accordance with such Offering.
 

(w)“Purchase Period” means a period of time specified within an Offering, generally beginning on the Offering Date or on the first Trading Day following a Purchase Date and ending on a Purchase Date.  An Offering may consist of one or more Purchase Periods.
(x)“Purchase Right” means an option to purchase shares of Common Stock granted pursuant to the Plan.
(y)“Related Corporation” means any “parent corporation” or “subsidiary corporation” of the Company whether now or subsequently established, as those terms are defined in Sections 424(e) and (f), respectively, of the Code.
(z)“Securities Act” means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.
(aa)“Subsidiary” means, with respect to the Company, (i) any corporation of which more than fifty percent (50%) of the outstanding capital stock having ordinary voting power to elect a majority of the board of directors of such corporation (irrespective of whether, at the time, stock of any other class or classes of such corporation will have or might have voting power by reason of the happening of any contingency) is at the time, directly or indirectly, Owned by the Company, and (ii) any partnership, limited liability company or other entity in which the Company has a direct or indirect interest (whether in the form of voting or participation in profits or capital contribution) of more than fifty percent (50%).  For purposes of the foregoing clause (i), the Company will be deemed to “Own” or have “Owned” such securities if the Company, directly or indirectly, through any contract, arrangement, understanding, relationship or otherwise, has or shares voting power, which includes the power to vote or to direct the voting, with respect to such securities.
(ab)“Trading Day” means any day on which the exchange(s) or market(s) on which shares of Common Stock are listed (including, but not limited to, the Nasdaq Global Select Market, the Nasdaq Global Market, the Nasdaq Capital Market, the NYSE, or any successors thereto) is open for trading.Document

COMMERCIAL LEASE

This Commercial Lease (the ··Iease"), made the 26th day of May 2020 by and between Canvasback Real Estate & Investments LLC ("Lessor"), and Luna Innovations Incorporated ("Lessee").

WITNESSETH

WHEREAS, Lessor and Lessee entered into that Certain Commercial Lease dated March 15, 2017 , as amended by that Amendment to Commercial Lease dated March 18, 2018, that Second Amendment to Commercial Lease dated October 7, 2009, that Third Amendment to Commercial Lease dated June 21 , 2010, that Fourth Amendment to Commercial Lease dated April 15, 2012 that Fifth Amendment to Commercial Lease dated August 5, 2015, that Sixth Amendment to Commercial Lease dated November 10, 2018 and the Seventh Amendment to Commercial Lease dated January 30,2019 (collectively , the "Original Lease").

WHEREAS, pursuant to the Original Lease, Lessee leased from Lessor approximately 19,620 square feet in the building located at 706 Forest Street , Charlottesville, VA 22903 (the "building").

WHEREAS, Lessee desires to lease from Lessor roughly 30,000 more square feet in the building and the Lessor Desires to lease the space to Lessee.

WHEREAS, Lessor and Lessee desire to terminate the Original Lease and enter into this lease, subject to the terms and conditions set forth herein.

That Lessor, for and in consideration of the covenants and agreements hereinafter set forth and further consideration of the rent which Lessee agrees to pay, hereby leases and demises unto Lessee, and the Lessee hereby takes, accepts and rents from Lessor, the premises hereinafter set forth for the period, at the rental, and upon the terms and conditions hereinafter set forth:

I. Premises.
The demised premises, description as follows:
46,654 SF(+/-) of space in the Building as shown on Exhibit A incorporated herein (the
"premises"). In the event the actual square footage of the premises is more or less than that reflected , there shall be no adjustment to the rent in Section 5.

2.Existing Conditions.
Lessee accepts the premises, excluding the space currently  occupied (the "Occupied Space"), in its condition as of the execution  of the lease.  Lessee shall have the right to inspect the Occupied Space prior to the signing of this lease. In the event that the condition of the Occupied Space is not acceptable to Lessee at the time of its inspection, Lessee shall have the right to exclude the square footage in the Occupied Space from this lease. In such event, the rent and other applicable sections of this lease shall be adjusted to reflect the exclusion of the square footage in the Occupied Space.

3.Permitted Uses and Manner of Use.
Lessee shall use premises solely as Office, research and laboratory space.

4.Term.
The lease shall be for a term of one hundred twenty-four (124) months beginning on the first day of June 2020 and shall end at 5 00 pm on the 30th day of September 2030 . Lessee shall have the option to extend the lease for five (5) years at the same terms and conditions, with an annual percentage rate increase of 3%. Lessee is granted permission to start the remodeling of the space in the upper level and in the lower level adjacent to EC LINC's space. upon the signing of the lease.

1.Rent.
Lessee shall have no obligation to pay rent under this lease commencing on June 1, 2020 until October 1, 2020. Rent shall be paid on the dates and in the amounts set forth below, subject to the possible adjustment as provided in this Section 5 below:

												
	Period	Monthly Rent	Annual Rent	Per Square Foot
				
	10/1/20 - 9/30/21
	$55,165.25	$661,983.00
	$14.50
	10/1/21 - 9/30/22
	$56,820.21	$681,842.49	$14.94

	10/1/22 - 9/30/23
	$58,524.81	$702,297.76	$15.39
	10/1/23 - 9/30/24	$60,280.56	$723,366.70	$15.85

	10/1/24 - 9/30/25
	$62,088.97	$745,067.70	$16.33
	10/1/25 - 9/30/26
	$63,951.64
	$767,419.73	$16.82
	10/1/26 - 9/30/27	$65,870.19	$790 ,442.32
	$17.32
	10/1/27 - 9/30/28
	$67,846.30	$814,155.59	$17.84
	10/1/28 - 9/30/29
	$69,881.69	$838,580.26	$18.38
	10/1/29 - 9/30/30
	$71, 978.14
	$863,737.67	$18.93

Notwithstanding the foregoing, in the event Lessor is unable to provide Lessee possession of the premises, including the Occupied Space, on or before October 1, 2020, the rent start date set forth in the table above shall be adjusted and shall begin on the date Lessor receives possession of the premises. In the event the rent commencement date changes, each of the dates set forth above shall be adjusted accordingly and the parties agree to execute a memorandum reflecting the changed dates.

2.Common Area Maintenance.
The Lessor shall maintain, in good and clean condition, the exterior common areas, including parking lot and sidewalks and shall provide a common dumpster for Lessee's use (Not to exceed one pick up per week).

3.Security Deposit.
Lessee has deposited with the Lessor the amount of $15,000.00 to be held by Lessor as security for performance by the Lessee of all covenants, terms, conditions, and provisions required to be kept and performed by Tenant under this lease. Lessor, upon written notice to Lessee, may apply all or part of the security deposit to any unpaid rent or other charges due from Lessee, or to cure any other defaults of the Lessee. If the Lessor uses any part of the security deposit, Lessee shall restore the security deposit to its full amount with ten (1O) days after Lessee's receipt of Lessor's written request. No interest shall be paid on the security deposit. The Lessor shall not be required to keep the security deposit separate from its other accounts and no trust relationship is created with respect to the security  deposit.  Lessee shall not be entitled to apply the security deposit to any rent or other sum due under this lease. Within thirty (30) days following the expiration of the lease, Lessor shall return the deposit to Lessee minus the costs of any un-repaired damage or outstanding charges which costs or outstanding charges shall be itemized by Lessor when the deposit is returned.

1.Late Fees.
In the event the Lessor does not receive from Lessee any installment of rent within five (5) business days of the date for which such installment is due, a late fee of five percent (5%) of the monthly rent installment shall be due as additional rent. Any rental payment amounts, which are past due more than thirty (30) days shall bear interest at the rate of ten percent (10%) per year.

2.Cost of Enforcement of the Lease.
A defaulting party under this lease hereby agrees to pay all reasonable costs, expenses , fees, and charges incurred by the non-defaulting party in enforcing by legal action or otherwise, any provisions, covenants, conditions of the lease including reasonable attorney's fees. Lessee hereby waves the benefit of any homestead or similar exemption laws with respect to the obligations of this lease.

3.Property Taxes.
Lessor will be responsible for real estate property taxes on the building and those improvements made or installed in the premises. Lessee shall be responsible for all property and business taxes due on its business property, fixtures, materials, and equipment.

4.Improvements by Lessee.
The Lessee shall have the right, from time to time, to make such alterations and improvements to, and decoration of, the interior of the premises as shall be reasonably necessary or appropriate for the conduct of Lessee 's business therein ; provided that prior to the commencement of any such alterations or improvements the Lessee shall have submitted to Lessor plans in writing of the proposed alterations and/or improvements. If within fifteen
(15) days after such plans are submitted by the Lessee to the Lessor for approval, Lessor shall not have given Lessee notice in writing of Lessor's disapproval, stating the reasons for such disapproval, such plans and specifications shall be considered approved by Lessor. Any alteration, addition or improvement made by the Lessee after such consent shall have been given (including consent obtained due to Lessor's failure to respond within the fifteen
(15) day period), and any fixtures which have been installed and which would damage the building if removed , shall remain the property of Lessee provided that in the event Lessee elects to remove the same prior to the expiration of the lease term Lessee shall repair any damage caused in connection with the removal of the same. Lessee shall submit a request  to the Lessor prior to bringing any radioactive or toxic material on the premises for his review and approval. Notwithstanding the foregoing, Lessor hereby acknowledges that it has approved the plans previously provided by Lessee showing the improvements to be made by Lessee to the premises.

In the event that the leasehold improvements by the Lessee are extensive and at the option of the Lessor, the Lessor may require the Lessee to post a construction completion bond for the work. The Lessor following satisfaction of all materials shall release such bond and labor suppliers as evidenced by lien waivers for the completed construction.

Lessor requires that all plans for alterations or improvements to the premises meet applicable building code and utility company requirements and shall fit with the overall aesthetics of the building, as reasonably determined by the Lessor.

5.Intentionally Deleted.

6.Repairs and Maintenance.
Lessee shall at its sole expense keep the interior of the premises in good working order and repair as it was at the commencement of this lease agreement, reasonable wear and tear expected. A walk through shall be made by representatives of Lessee and Lessor with ten
(10) days of the commencement of this lease and a checklist shall be prepared which states the condition of all leased property. Both representatives shall sign this checklist at the time of the walk through. The Lessor shall complete any repairs noted as required to be made by the Lessor within a reasonable time. The second walk through shall be made immediately following the expiration of this lease and the vacation of the premises by the Lessee and any repairs noted as required by the Lessor. Lessee shall, in the usual occupancy of the

premises , conform to all laws, orders and regulations of federal,  state, municipal governments have jurisdiction and further agrees to maintain the interior of said leased premises in good and safe condition. Lessee shall not place equipment with a weight greater than 250 lbs. per square foot on the top floor of the building without the written consent of the Lessor and agrees to indemnify the Lessor for all damages resulting from the moving, use or placement of any such equipment.

Lessor agrees to maintain and keep in good repair the heating/cooling systems, plumbing, electrical systems, roof, the exterior of the building, the grounds, and the common areas, including the parking areas. Notwithstanding the foregoing, Lessee agrees to maintain any of the plumbing or electrical systems installed by the Lessee.  Lessee  shall not make or cause to be made any roof penetrations without the prior written consent of Lessor.

Lessee agrees to operate all heating/cooling systems, plumbing and electrical systems in accordance with their operating instructions if provided and consistent with normal operating for such systems. Lessee will continue to maintain a semi-annual maintenance contract for the HVAC and exhaust fans utilized by the Lessee. Lessee agrees to maintain any of the plumbing and electrical systems installed by the Lessee as well as maintain the roof seal around any new roof penetrations required by the Lessee after the execution of this lease.

1.Utilities and Services.
Lessor and Lessee agree to evenly share in the electricity, water and sewer costs associated with the building of which the premises are a part to the extent that the annual aggregate  costs of the electricity, water and sewer exceeds those costs incurred for the building in 2019. Lessee 's obligation to share in the excess electricity, water and sewer costs as provided in the preceding sentence  shall be calculated on a calendar year beginning in 2021.  In the event the annual costs for a given calendar year exceed the annual aggregate costs incurred for the building in 2019, Lessor shall provide Lessee with notice of such reimbursement request on or before March 31 of the following calendar year and the written request shall be accompanied with sufficient documentation so that Lessee shall be able to confirm the requested amount. Prior to execution of this lease, the parties shall agree on the annual aggregate costs incurred during 2019 for electricity,  water  and sewer.  Lessee shall reimburse Lessor within thirty (30) days following Lessee's receipt of the written request from Lessor, provided that in the event Lessee disputes the amount owed the parties shall work in good faith to resolve the dispute. In the event Lessor does not make a request of Lessee on  or before March 31, Lessor shall be deemed to have waived any right to request that Lessee share in the aggregate excess costs for the prior calendar year. Lessee shall pay for its gas, telephone, data lines, security systems, including removal of any waste materials, which are hazardous in nature, all pallets, excessive packaging material, and janitorial services upon Lessee's occupancy of the premises.

2.Lessor's Insurance.
Lessor shall maintain replacement property insurance on the building and general liability insurance for the building and premises.

3.Destruction by Casualty.

a.Lessee's Responsibilities.
Lessee shall not be responsible for the destruction or damage to the premises caused by fire, the elements, casualty or other cause. unless such damage or destruction is caused by the intentional or gross negligence of Lessee or Lessee's agents, servants, visitors, licenses. Lessee shall notify the Lessor immediately in writing upon the occurrence of any material damage to the premises.

b.Restoration of Damaged Premises.
If the premises are partially damaged and of the proceeds received by the Lessor from the insurance policies required to be maintained by Lessor are sufficient to pay for the necessary repairs , this lease shall remain in effect and the Lessor shall repair the property as soon as reasonably  possible.  Lessor may elect to repair any damage to the Lessee's fixtures, equipment. or improvements. If the insurance available to the Lessor is not sufficient to pay the entire cost of the repair, or if the

cause of the damage is not covered by the insurance policies which the owner maintains, the Lessor may elect to either repair the damage as soon as possible, in which case the lease shall remain in full force and effect, or terminate the lease as of the date that the damage occurred. The Lessor shall notify the Lessee within thirty
(30) days after receipt of notice of damage whether Lessor will repair the damage or terminate the lease. If the Lessor elects to repair the damage, and if damage is the result of the acts of intentional or gross negligence of Lessee, then Lessee shall pay the Lessor the "deductible amount" (if any) under Lessor's insurance policies, and of the damage which was solely caused by the intentional or gross negligence of the Lessee, the difference between the actual cost of the repair and any insurance proceeds received by the Lessor. If the Lessor elects to terminate this lease, Lessee may elect to continue this lease in full force and effect. in which case Lessee shall repair any damage to the property. Lessee shall pay the cost of such repairs, except that, upon satisfactory completion of such repairs, the Lessor shall deliver to the Lessee any insurance proceeds received by the Lessor for the damage repaired by the Lessee. Lessee shall give Lessor written notice of election within ten (10) days after receiving Lessor's notice of termination. If the damage to the property occurs during the last six (6) months of the lease term. the Lessor may elect to terminate  this as of the date the damage occurred, regardless of the sufficiency of any insurance proceeds. In such event, Lessor shall not be obligated to repair or restore the property and the Lessee shall have no right to continue the lease. Lessor shall notify Lessee of its election within thirty (30) after receipt of notice of the occurrence of the damage. Notwithstanding anything in this subsection B to the contrary , in the event Lessor does not restore the premises (unless Lessee elects to rebuild) and possession given to Lessee within one hundred twenty (120) days following the damage, Lessee may terminate the lease upon written notice to Lessor.

a.Destruction of Premises.
If the premises are totally or substantially destroyed by any cause whatsoever, this lease shall terminate as of the date the destruction.

b.Rent Abatement.
If the premises are damaged or destroyed and the Lessor or the Lessee repairs or restores the property pursuant to the provisions of this Article, the rent payable  during the period of such damage, repair and/or restoration shall be abated. Except for the abatement of rent, Lessee shall not be entitled to any compensation, reduction, or reimbursement from Lessor as a result of any damage, destruction, repair, or restoration of or to the premises. Notwithstanding the foregoing provisions, in the event the premises shall be damaged by fire or other insured casualty due to the intentional or gross neglect of the Lessee, of the Lessee's servants, employees, contractors, agents,  visitors or licenses, then, without prejudicing  any other rights and remedies of the Lessor, there shall be no apportionment or abatement of any rent.

1.Eminent Domain.
If, the premises or any part thereof or any estate therein, or any other part of the building materially affecting Lessee's use of the premises, be taken by virtue of eminent domain, this lease shall terminate on the date when title vests pursuant to such taking, and no additional rent shall be owing by Lessee from that date forward. Lessee shall not be entitled to any part of any award or any payment in lieu thereof; but Lessee may file a claim for any taking of fixtures and improvements owned by the Lessee with authority taking said property by virtue of eminent domain.

2.Insurance.
Upon request by Lessor, the Lessee shall provide Lessor with verification from Lessee's insurance company showing compliance with the requirement that it obtain insurance coverage and shall maintain such insurance coverage necessary to cover the value of Lessee's property located on or about the premises. Lessee agrees that Lessor shall not be responsible for any damage to Lessee's property located on or about the demised premises caused by fire, water, or other casualty, unless such damage is caused the intentional or gross negligence of Lessor, its employees or agents. Lessee shall maintain in force

insurance against liability for personal injury and/or property damage with limits of no less than $500,000 per occurrence. All insurance required by this paragraph (18) shall be carried in favor  of Lessor  and Lessee as their respective interests may appear and all insurance must be written with companies reasonably acceptable to Lessor and shall require ten (10) business days' notice to Lessor by registered mail of any cancellation or change affecting any interest  of Lessor.  Lessee will provide Lessor with its certificate  of insurance in lieu of naming Lessor as an additional secured.

1.Entry by Lessor.
Lessor may enter and have access to the demised premises at any reasonable time, on at least forty eight (48) hours prior written notice to Lessee (except that no notice need be given in the case of emergency) for the purpose of showing the property to potential buyers, investors, tenants , or other parties, or for the purpose of inspecting or the making of such repairs, replacements, and additions necessary or desirable either for the Lessee or for other tenants in the building.

2.Assignment and Subletting.
Lessee shall not assign this lease agreement, sublet the premises, or allow other to use the premises or any portion thereof without the prior written consent of Lessor , which consent shall not be unreasonably withheld. Notwithstanding the foregoing, Lessor may assign this lease to any entity provided Lessor is a stockholder or member thereof.

3.Default or Breach.
Each of the following events shall constitute a default or breach of this lease by Lessee:

a.Lessee, or any successor assignee of Lessee while in possession, shall file a voluntary petition in bankruptcy or shall voluntarily take advantage of any act by answer or otherwise, or shall make an assignment for the benefit of creditors. Similarly, if involuntary proceedings under any bankruptcy law or insolvency act be instituted against Lessee or if a received or trustee shall be appointed for all or substantially all of the property of Lessee, and such proceedings shall not be dismissed if the receivership or trusteeship vacated within thirty (30) days after the institution of this agreement or appointment.
b.If five (5) business days have elapsed after Lessee has received written notice from Lessor that the Lessee has failed to pay any rent or portion thereof when due under this lease.
c.If Lessee fails to conform or comply with any of the conditions of this lease and if a non-performance shall continue for a period of fifteen (15) business days after written notice thereof from Lessor is received by Lessee. If performance cannot be reasonably completed within the fifteen (15) business day period, Lessee  shall have failed to make a good faith commencement of performance within the fifteen (15) business day period and shall have failed to diligently proceed to completion of performance.
d.If this lease shall be transferred to or shall pass to or default to any other person except in the manner herein permitted.

4.Effect of Default.
In the event of any default hereunder, as set forth in the immediately preceding paragraph, the rights of the Lessor shall be as follows

a.Lessor shall have the right to cancel and terminate this lease as well as the right, title and interest in Lessee hereunder giving Lessee at least ten (10) business days' notice of the cancellation and termination. Upon the expiration of the time affixed in the notice in accordance with this paragraph , this lease and the right, title and interest in Lessee hereunder, shall terminate in the same manner and with the same force and effect. except as to Lessee's liability, as if the date fixed in the notice of cancellation and termination were the end of the term herein originally determined and Lessee had not exercised any right to renew said lease there under. As of the date fixed in said notice of termination and cancellation, Lessor shall have the right to re-enter the premises and take possession thereof.

a.Lessor may elect. but shall not be obligated, to make any payment required of Lessee and to comply with agreement, term or condition required hereby to be performed by Lessee. and Lessor shall have the right to re-enter the demised premises for the purpose of correcting or remedying any such default and to remain until the default has been corrected or remedied, but any expenditure or the correction by Lessor shall not be deemed waive payments due to the Lessor or release the default of Lessee or the right of Lessor to take any action as otherwise would be permissible hereunder in the case of any default.
b.After the time period mentioned in paragraph 22A has elapsed, Lessor may remove the property and personnel of Lessee, and restore the premises at the cost of and for the account of Lessee. Such restoration of premises by Lessor shall be to a like condition.
c.Lessee's liability to Lessor shall survive Lessee's eviction and Lessor shall be entitled to recover the rent reserved for the full lease term. Lessor's remedies hereunder are in addition to any remedies allowed by law.

1.Subordination.
This lease shall be subordinate to all mortgages or deeds of trust which may now or hereinafter affect the real estate of which the premises form a part, and also to all renewals, modification, consolidations and replacements of said mortgages or deed of trust. Lessee shall on demand execute, acknowledge, and deliver to Lessor without expense to Lessor any and all instruments that may be necessary or proper to subordinate this lease and all rights therein to any such deeds of trust or renewals, modifications , extensions and of Lessee shall fail at any time to execute, acknowledge and deliver any such subordinations, Lessor in addition to any other remedies available in consequence thereof, may execute. acknowledge and deliver the same as Lessee's attorney and in Lessee's name.

2.Constructive Eviction.
Lessee shall not be entitled to claim constructive eviction from the premises until Lessee shall first notify Lessor in writing of the condition or conditions giving rise thereto, and, if the complaints be justified and sufficient to make out a claim of construction eviction, unless Lessor shall have failed within fifteen (15) business days after Lessor's receipt of notice to remedy such conditions. In the event Lessor breaches any term and condition hereunder and fails to cure the same within fifteen (15) business days following receipt of notice from Lessee. Lessee may (i) remedy the breach and Lessor shall be responsible for the costs thereof which payment shall be made by Lessor to Lessee within ten (10) days following Lessor's receipt of notice thereof or (ii) terminate this lease.
Lessor may show premises to prospective purchasers and mortgagees at any time, and, during the four months prior to termination of this lease, to prospective tenants, during business hours upon reasonable notice to Lessee, which said notice shall not be subject to the requirement of paragraph 27 herein.
All property of Lessee remaining on the premises at the expiration of the lease, or any renewal thereto shall conclusively be deemed abandoned and may be removed by the Lessor, and Lessee hereby agrees to reimburse the Lessor the costs of such removal. Lessor may have any such property stored at Lessee's risk and expense.

3.Quiet Possession.
Lessor covenants that so long as Lessee pays the rent and performs the covenants herein, Lessee shall peaceably and quietly have, hold and enjoy the premises for the term herein mentioned subject to the provisions of this lease.

4.Public Areas.
Except as otherwise herein provided, Lessor will keep all entry ways, sidewalks, parking areas in a clean and presentable condition, and will as soon as is reasonably possible. remove all snow and ice from the parking lots and other public areas.

1.Notice.
All notices to be given with respect to this lease shall be in writing. Each notice shall be sent by registered or certified mail. postage prepaid and return receipt requested, or overnight delivery by a national recognized carrier. to the party to be notified at the address set forth herein, or at such address as the party may from time to time designate in writing. Any notice shall be deemed to have been given at the time it shall be sent. Use of electronic  transmission of notices is acceptable, provided that any notice sent electronically shall be simultaneously mailed to the respective party or parties. Nothing contained herein shall be construed to preclude personal service of summons or other legal process. 

2.Waiver.
No waiver of any breach or default under this agreement shall be deemed to be a waiver of any subsequent breach or default of the same or similar nature.

3.Miscellaneous.
This lease contains the entire agreement between the parties and cannot be changed or terminate except by written instrument subsequently executed by the parties hereto. This lease and the terms and conditions hereof apply to and are binding on the heirs, legal representatives, successors and assigns of both parties.

4.Other Provision s.

a.Signage. The Lessee shall be entitled to install identification signage at  Lessee's expense on the exterior of the building. Such signage shall conform to the requirements of the Charlottesville signage ordinance and approval of the Lessor. Upon termination of the lease Lessee shall have the sign removed and the building restored to its original condition.

b.Parking. The Lessee shall be entitled to the exclusive use of the 92 parking spaces to be assigned by Lessor.

c.Lessor and Lessee agree that Lessee shall have the use of all lab cabinetry, vented hood(s), vacuum pump, sinks, back up generators distributing power to their space, air compressor , and partitions, and none of the items listed above as of the date hereof shall be removed by Lessor. Lessee agrees to service and maintain the hood(s) in the leased space.

d.Lessee agrees to contract with a cleaning company to clean the interior of their space on a weekly base.

e.Lessee will maintain counter tops in good condition, normal wear and tear accepted.

f.As of the date hereof, the Original Lease shall be deemed terminated and neither party shall have any further duties or obligations there under except for outstanding invoices.

g.Notwithstanding the rent required to be paid hereunder, Lessor acknowledges and agrees that Lessee has the right to terminate this lease, with no penalty, effective as of September 30, 2025, provided Lessee provides Lessor with written notice of Lessee election to terminate the lease prior to April 1, 2025. Lessee shall pay Lessor a lease termination fee equal to $372,764.94 and Lessee agrees that this amount shall be paid in full prior to vacating the premises., If all funds are not received, as agreed. Lessor shall be entitled to be paid the entire amount of the original lease.

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