Document:

Form of stock option vesting acceleration letter agreement

 Exhibit 10.7 
 [DATE] 
 [Name of Employee]

 [Address] 
  

	Re:	Vesting Acceleration on Acquisition – Amendment of Option Agreements. 

 Dear __________; 
 The Board of Directors of Broncus Technologies, Inc. (the “Company”) at its May, 2007
meeting, undertook a review of its policies regarding employee equity compensation in connection with any possible acquisition of the Company. Based on that review and in order to provide its employees with appropriate equity compensation in the
event that they are terminated in connection with an acquisition, the Board has concluded that all existing and future stock option agreements with certain employees under the Company’s 2007 Stock Option Plan (each an “Option
Agreement”) should be amended to provide employees with a specified amount of vesting acceleration in such a situation. 
 Summary of the Acceleration Amendment. 
 A description of the acceleration amendment is as follows. However, this
description is only a summary and the actual terms shall be as set forth below under “Acceleration Amendment.” 
 As amended, each
of your existing and any future Option Agreements that may be awarded to you will provide that, in the event that your employment is terminated without cause (including poor performance) or you otherwise resign for certain specified reasons (all as
described below) within 12 months after the Company is acquired, then vesting under each Option Agreement you have will automatically accelerate so that the total percentage of vested shares will be equal to the sum of (i) 50% of all option
shares, plus (ii) 50% of all option shares multiplied by a fraction, the numerator of which is the number of whole months that you have been continuously employed by the Company (and the Company’s successor, if applicable) and the
denominator of which is 48 months, all on the terms and conditions set forth in more detail below. Such vesting acceleration will also be automatically provided in the event that the corporation that acquires the Company elects not to assume or
otherwise substitute equivalent options for the Option Agreement. 
 An example of the operation of this accelerated vesting is as follows:
Assume that an employee who was hired on January 1, 2001 has an option exercisable for a total of 10,000 shares, the Company is acquired on November 30, 2001 and the employee is terminated without cause on February 28, 2002. In that
hypothetical case, 14 months would have passed from the date that the employee was hired until his/her termination. Without vesting acceleration, the option would (assuming vesting commenced effective 

 
as of the employee’s hire date) be vested as to 2,916 of the original 10,000 shares (14/48ths (29.16%) of 10,000 = 2,916). However, as a result of
the vesting acceleration provided for here (and in lieu of regular vesting) the option will instead be vested upon termination as to 6,458 shares (i.e., (50% x 10,000) + (14/48 x (50% x 10,000)) = 6,458). 
 Acceleration Amendment 
 In order to
implement the foregoing, each existing Option Agreement you have and any future Option Agreements that may be awarded to you are hereby amended to provide that, in the event that (i) you are “Terminated” (as defined below) or
“Resign for a Specified Reason” (as defined below) within twelve (12) months after a “Corporate Transaction” (as defined below), or (ii) the successor entity of any such “Corporate Transaction” or its parent
fails to assume the Option Agreement or substitute a similar option, then in lieu of the existing vesting provided for in the Option Agreement, the aggregate total number of shares issued and issuable under the Option Agreement that are vested and
exercisable shall automatically be accelerated to a number that is equal to (50% x A) + [(B / 48) x (50% x A)]. 
 For purposes of the foregoing formula: 
  

	 	A =	The total number of shares originally issuable upon exercise in full of the Option Agreement on the date it was granted (as such number may be adjusted for any subsequent stock
splits, reverse stock splits, stock dividends, or like events). 

  

	 	B =	The total number of full months that you have been continuously employed by the Company (including any successor of the Company following the Corporate Transaction).

 As used herein, a “Corporate Transaction” means (i) a consolidation, merger, reorganization or
other transaction or series of related transactions involving the Company in which the holders of the Company’s outstanding voting stock immediately prior to such transaction or series of related transactions own, immediately after such
transaction or series of related transactions, securities representing less than fifty percent (50%) of the voting power of the corporation or other entity surviving such transaction or series of related transactions, as a result of voting stock of
the Company held by them immediately prior to such transaction or series of related transactions (excluding any transaction whose primary purpose is to raise funds for the Company through the sale of stock or other securities), (ii) a
dissolution or liquidation of the Company, or (iii) the sale of substantially all of the assets of the Company. 
 As used herein,
“Terminated” means a termination of your employment for any reason other than (1) “Cause” (as defined in the 1997 Stock Option 

 
Plan that was provided to you with your Option Agreement), or (2) because your job performance is below the level of performance reasonably expected by
your employer for your position (as determined by your employer in good faith). “Terminated” does not include your employment merely being transferred to any parent, subsidiary or affiliate of the corporation employing you.

 As used herein, “Resign for a Specified Reason” means a voluntary resignation by you as a result of (and within
thirty (30) days of) being notified by the Company, the successor corporation or its parent of (1) a material reduction in your base salary from your base salary prior to the Corporate Transaction, or (2) of a relocation of the
Company’s offices that you are required to work at to a location more than thirty (30) miles from the Company’s principal offices immediately prior to the closing of the Corporate Transaction. 
 Please sign below where indicated to confirm your acceptance of the foregoing amendment to each existing and any future Option Agreement held by you. By
signing below, you and the Company also agree that: 
 (a) Other than as expressly amended in this letter agreement, the terms and conditions
of each Option Agreement remain in full force and effect. 
 (b) This letter, together with each Option Agreement held by you (or that may be
awarded to you in the future) and the “Plan” (as defined in the Option Agreement) sets forth the entire agreement of the parties with respect to the subject matter hereof and supercedes any and all prior agreements and undertakings with
respect to the subject matter hereof. 
 Very Truly Yours, 
 Agreed and Accepted 
 _________________________ 
 EMPLOYEE NAMEForm of change of control severance letter agreement

 Exhibit 10.8 
 [DATE] 
 [Name of Officer] 
 [Address] 
  

	Re:	Severance Letter Agreement – Broncus Technologies, Inc. 

 Dear
                    : 
 This
letter sets forth our agreement with respect to the severance you will be entitled to receive under specified circumstances set forth below following any acquisition of Broncus Technologies, Inc. (the “Company”) that takes
place after the closing of the company’s initial public offering registered with the SEC (“IPO”). This letter agreement will not be in effect until after the Company’s IPO, if any. 
 In the event that your employment is terminated by the Company (which means and includes any successor entity for purposes of this letter agreement)
without Cause (as defined below) in connection with, or at any time during the 12 months period following, an Acquisition (as defined below), or you resign for a Good Reason (as defined below) at any time during the 12 month period following an
Acquisition, then you will be entitled to the following: 
 (a) Salary continuation at your then-current base salary rate (less applicable
withholding) for the 6 month [12 months for CEO] period following such termination or resignation (the “Severance Period”); 
 (b) If you elect to continue your medical, dental and/or vision insurance under COBRA, the Company will reimburse you for the COBRA continuation expenses applicable to the Severance Period. 
 (c) If you are permitted by the Company’s insurance carrier(s) to convert or continue your existing Company life insurance and/or disability
insurance, the continuation expenses incurred by you with respect to such policies that are applicable to the Severance Period will be reimbursed by the Company up to a maximum equal to the amount the Company would have paid on your behalf for such
insurance applicable to the Severance Period had you remained an employee of the Company. The Company will have no obligation if you are unable to convert or otherwise continue your existing life and/or disability insurance. 
 Notwithstanding the foregoing, if you commence new employment during the Severance Period, then the amount of salary continuation paid to you will be reduced by the
amount you earn during the Severance Period in such new employment. You will give the Company notice within five (5) days of starting any such new employment. 
 It will be a condition of your receiving any such salary continuation or expense reimbursement that you sign a full release of claims against the Company and its agents, directors, shareholders, successors, assigns and affiliates in a form
satisfactory to the Company. 
  

 As used in this letter agreement: 
 “Cause” means termination of your employment on the basis of any of the following: (i) your conviction for, or guilty plea
to, a felony involving moral turpitude; (ii) a willful refusal by you to comply with the lawful and reasonable instructions of the Company, or to otherwise perform your duties as lawfully and reasonably determined by the Company, in each case
that is not cured by you (if such refusal is of a type that is capable of being cured) within 15 days of written notice being given to you of such refusal; (iii) any willful act or acts of dishonesty undertaken by you and intended to result in
your (or any other person’s) gain or personal enrichment at the expense of the Company or any of its customers, partners, affiliates, or employees; (iv) any willful act of gross misconduct by you which is injurious to the Company; or
(v) your job performance being materially below the level of performance reasonably expected by the Company (as determined by the Company in good faith), if such poor performance is not cured by you within 30 days of written notice being given
to you of such poor performance. 
 “Good Reason” shall mean (i) a reduction in your then-current annual salary;
(ii) the offices of the Company that you are required to report to being moved more than 30 miles; or (iii) a material and adverse change in the duties you are asked to perform (it being agreed that changes to your duties and reporting
responsibilities that are inherent in the Company becoming a division or business unit of a much larger organization shall not be deemed to constitute such a material and adverse change). 
 “Acquisition” means and includes each of the following transactions: (i) a consolidation, reorganization or merger of the
Company with or into any other entity or entities in which the holders of the Company’s outstanding shares immediately before such consolidation, reorganization or merger do not, immediately after such consolidation, reorganization or merger,
own stock or other ownership interests representing a majority of the voting power of the surviving entity or entities as a result of their shareholdings in the Company immediately before such consolidation, reorganization or merger;
(ii) acquisition of a majority of the Company’s voting stock by one or more related persons or entities in one transaction or a series of related transactions; or (iii) a sale or all or substantially all of the Company’s assets.

 This letter agreement will form the complete and exclusive agreement between you and the Company with respect to the subject matter
hereof. It supersedes any other agreements or promises with respect to such subject matter made to you by anyone, whether oral or written, and it can only be modified in a written agreement signed by you and by another officer of the Company.

 Please sign this letter agreement in the space indicated and return it to the Company. Your signature will acknowledge that you have read
and understood and agreed to the terms and conditions of this letter agreement. 
  

	
	Very truly yours,
	
	 /s/ Cary Cole

	Cary Cole
	Chief Executive Officer
	Broncus Technologies, Inc.

 I have read and understood this offer letter and hereby acknowledge, accept and agree to the terms as set forth above.

  

	
	  

	[Name of Officer]

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