Document:

Corporate Formation Agreement, dated as of December 26, 2003

 Exhibit 10.17 
 CONFIDENTIAL TREATMENT REQUESTED 
 CORPORATE FORMATION AGREEMENT 
 This Corporate Formation Agreement (this “Agreement”) is made and entered into as of December 26, 2003 (the
“Effective Date”) by and between Asthmatx, Inc. (“Asthmatx”), a California corporation, and Broncus Technologies, Inc., a California corporation (“Broncus”). 
 RECITALS 
 A. Broncus has caused
Asthmatx to be incorporated and now wishes to contribute to Asthmatx cash and certain assets, agreements and obligations of Broncus relating to Broncus’ Alair Asthma Treatment System business (the “Alair Business”) in
exchange for the Asthmatx Shares (as defined herein) and other consideration described herein. 
 B. It is contemplated that, prior to
December 31, 2003, Broncus will distribute the Asthmatx Shares (as defined herein) on a pro rata basis as a dividend to its shareholders (such distribution and dividend being referred to herein as the “Spin-off”).
Asthmatx has been provided with a copy of an Information Statement prepared by Broncus which describes the Spin-off. 
 C. Broncus has
previously issued certain warrants to purchase shares of its Common Stock that are now outstanding and listed in Exhibit A attached hereto (the “Broncus Warrants”), and, after the occurrence of the Spin-off, Broncus
will be required by the terms of the Broncus Warrants to provide that the Warrant holders will receive shares of Asthmatx’s Common Stock upon exercise of their Broncus Warrants. In consideration of the agreements of Broncus contained herein,
Asthmatx is willing to agree to issue shares of its Common Stock as provided herein upon the exercise of Broncus Warrants in order to enable Broncus to satisfy its obligations under the Broncus Warrants. 
 D. In consideration of Broncus’ agreements herein, Asthmatx is also willing to agree to grant options to purchase shares of its Common Stock to
holders of Broncus stock options and to employees of Broncus who will become employees of Asthmatx as provided herein. 
 E. The parties also
desire to provide, in connection with the formation of Asthmatx, that they will enter into certain agreements between themselves as provided herein. 
 AGREEMENT 
 NOW, THEREFORE, in consideration of the premises and mutual agreements and covenants hereinafter set forth,
Asthmatx and Broncus hereby agree as follows: 
 1. CONTRIBUTION AND TRANSFER
OF ASSETS; ISSUANCE OF ASTHMATX SHARES. 
 1.1 Contribution and Transfer of Assets. Broncus hereby contributes, assigns, transfers, conveys and delivers to Asthmatx, as of the Effective Date, all of Broncus’ right, title and interest in, to
or under all of the assets and properties identified in the following subparagraphs of this Section 1.1 (collectively, the “Assigned Assets”): 
 (a) cash in the amount equal to forty percent (40%) of the cash held by Broncus on the Effective Date (which amount Broncus and Asthmatx
agree and acknowledge will take into account Broncus’ payment of those accounts payable paid on or before the Effective Date and which amount Broncus and Asthamtx estimate will be approximately $2,150,000); 
  

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sent to the Securities and Exchange Commission. 

 (b) the tangible personal property assets of Broncus that are identified on Schedule
1.1(b) attached hereto; 
 (c) the contracts and agreements that are identified on Schedule 1.1(c) attached hereto (the
“Assigned Contracts”); 
 (d) the patents and patent applications specifically listed on Schedule
1.1(d) attached hereto, all worldwide rights to the inventions described therein, and all rights to enforce such patents (and any patents that may be issued on any such patent applications) and all causes of action and rights of recovery for
past infringement of such patents, patent applications and inventions described therein (collectively, the “Assigned Patent Rights”); 
 (e) the trademarks and trademark registrations that are identified on Schedule 1.1(e) attached hereto, and all applications therefor, trade names and rights in trade dress and packaging associated
therewith (collectively, the “Assigned Trademark Rights”); 
 (f) the intangible assets, technologies,
properties and rights of Broncus that are associated exclusively with the Alair Asthma Treatment System (including the Alair Controller Software, the Alair Product Specification, training materials related to the Alair Program, publications
regarding the Alair procedure and all trade dress/design features for the Alair System), including all patent rights associated therewith, copyrights, copyright registrations and applications therefor, trade secrets, know-how and other intellectual
property rights recognized by the law of any applicable jurisdiction (collectively, “Intellectual Property Rights”) therein and thereto, all rights to enforce such Intellectual Property Rights, and all causes of action and
rights of recovery for past infringement of such Intellectual Property Rights; and 
 (g) the books and records of Broncus which
relate to the assets described in clauses (a) through (f) above and do not relate to the Excluded Assets (provided that Broncus shall be entitled to retain a copy of such books and records). 
 Notwithstanding the foregoing, the Assigned Assets shall not in any event include any of the assets, properties and rights owned or held by Broncus that are not
expressly identified in the preceding subparagraphs of this Section 1.1 (collectively, the “Excluded Assets”), such as, by way of illustration and not limitation, assets, properties, agreements, contracts, technologies
and Intellectual Property Rights associated with Broncus’ Exhale emphysema treatment system and not expressly defined as Assigned Assets herein. 
 1.2 Issuance of Asthmatx Shares and Grant of Asthmatx Options. In partial consideration for Broncus’ contribution and transfer to Asthmatx of the Assigned Assets and the commitments of Broncus
contained in this Agreement, and such other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Asthmatx hereby agrees with Broncus as follows: 
 (a) Issuance of Asthmatx Shares. Asthmatx hereby agrees with Broncus to, and hereby does, issue and sell to Broncus, and Broncus hereby
acquires from Asthmatx, an aggregate total of (i) 3,883,541 shares of Asthmatx’s Common Stock, (ii) 2,612,500 shares of Asthmatx’s Series A-1 Preferred Stock, (iii) 2,090,000 shares of Asthmatx’s Series A-2 Preferred
Stock, (iv) 1,045,000 shares of Asthmatx’s Series A-3 Preferred Stock, (v) 4,280,000 shares of Asthmatx’s Series B Preferred Stock, (vi) 9,619,528 shares of Asthmatx’s Series C Preferred Stock, and (vii) 9,271,159
shares of Asthmatx’s Series D Preferred Stock (all such shares of Asthmatx Common Stock and Asthmatx Preferred Stock being collectively referred to herein as the “Asthmatx Shares”). 
  

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 (b) Issuance of Common Shares Upon Exercise of Broncus Warrants. In addition to the
issuance to Broncus of the Asthmatx Shares pursuant to Section 1.1(a) above, Asthmatx hereby agrees with Broncus that, within a reasonable time after each exercise of a Broncus Warrant that occurs after the date of the Spin-off (a
“Broncus Warrant Exercise”), Asthmatx shall issue to the holder of such Broncus Warrant who has exercised such Broncus Warrant one (1) share of Asthmatx Common Stock, as presently constituted (the “Issue
Number”) for each share of Broncus Common Stock that is issued to and received by the holder of such Broncus Warrant as a result of such Broncus Warrant Exercise (with the Issue Number to be equitably and proportionally adjusted to
account for and reflect any stock splits, stock dividends, reverse stock splits or the like occurring after the date of the Spin-off and affecting the number of outstanding shares of the Common Stock of either Asthmatx or Broncus); provided,
however, that Asthmatx shall not be obligated to issue its Common Stock under this Section 1.2(b) with respect to a Broncus Warrant Exercise unless and until Broncus has provided Asthmatx with written notice of such Broncus Warrant
Exercise, which notice shall include (i) the name and address of the holder of the Broncus Warrant exercised in connection with such Broncus Warrant Exercise; (ii) the name and address of the person(s) in whose name the shares of
Asthmatx’s Common Stock issuable hereunder in respect of such Broncus Warrant Exercise are to be registered; and (iii) a statement of the number of Broncus shares purchased in connection with such Broncus Warrant Exercise, and
Broncus’ computation of the number of shares of Asthmatx’s Common Stock then issuable in respect of such Broncus Warrant Exercise in accordance with this Section 1.2(b). 
 (c) Grant of Asthmatx Stock Options to Broncus Optionees. Effective at a time prior to the time the Spin-off takes effect and during which
Asthmatx is a subsidiary of Broncus, Asthmatx shall grant to each Broncus Optionee (as defined below), with respect to each outstanding option to purchase Broncus Common Stock held by such Broncus Optionee (a “Broncus
Option”), an option to purchase shares of Asthmatx Common Stock (an “Asthmatx Option”) on the following basis and terms, except as otherwise noted below: 
 (i) the number of shares of Asthmatx Common Stock subject to each Asthmatx Option granted to a Broncus Optionee under this Section 1.2(c)
with respect to a Broncus Option will (except as may be otherwise specified in Schedule 1.2(c) attached hereto) be equal to the number of shares of Broncus Common Stock with respect to which such Broncus Option was vested and
exercisable on the date such Asthmatx Option is granted (or, if exercise 
  

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of such Broncus Option was not subject to a vesting condition, the number of shares of Broncus Common Stock subject to such Broncus Option that, on such date
of grant, is not subject to repurchase by Broncus at its original issue price upon termination of the Broncus Optionee’s services); 
 (ii) the exercise price per share of such Asthmatx Option shall be a price per share of Asthmatx Common Stock that is forty percent (40%) of the exercise price per share at which shares of Broncus Common Stock are purchasable
under such Broncus Option (computed before the effect of any modification or adjustment of such Broncus Option made in connection with the Spin-off); 
 (iii) such Asthmatx Option shall continue to be exercisable by such Broncus Optionee for so long as such Broncus Optionee continues to be employed by, or provide services to, Broncus or a parent or subsidiary
of Broncus (as those terms are defined in Broncus’ option plans) but in no event beyond the scheduled expiration date of the Broncus Option with respect to which such Asthmatx Option is granted; and 
 (iv) other terms not described in the foregoing clauses (i) through (iii) that are substantially the same as the terms of the Broncus
Option with respect to which such Asthmatx Option is granted; 
 provided, however, that solely for purposes of determining the number of
shares of Asthmatx Common Stock subject to an Asthmatx Option granted to a Broncus Optionee with respect to a Broncus Option that has not vested on the date of the Spin-off due to probationary “cliff” vesting provisions (“Cliff
Vesting”), such Broncus Option will be deemed to have been vested as of the date of the Spin-off as to that portion of the Broncus Option subject to Cliff Vesting that is proportional to the number of months elapsed between the
beginning of the Cliff Vesting period and the date of the Spin-off, but such Asthmatx Option will not actually become vested or exercisable until the Broncus Optionee has provided the number of months of service to Broncus required to satisfy the
original Cliff Vesting provision under such Broncus Option. For purposes of this Section 1.2, the term “Broncus Optionee” means an individual (other than an individual who entirely terminates his or her employment with
Broncus in order to become a full-time employee of Asthmatx) who on the date of the Spin-off holds at least one outstanding option to purchase shares of Broncus Common Stock. 
 (d) Grant of Asthmatx Stock Options to Transferring Optionee. On or before the time the Spin-off takes effect, Asthmatx shall grant to
each Broncus employee who has become an employee of Asthmatx on or before the date the Spin-off takes effect (each a “Transferring Optionee”), with respect to each Broncus Option held by such Transferring Optionee (a
“Broncus Option”), an Asthmatx Option on the following basis and terms, except as otherwise noted below: 
 (i)
the number of shares of Asthmatx Common Stock subject to each Asthmatx Option granted to a Transferring Optionee under this Section 1.2(d) with respect to a Broncus Option held by such Transferring Optionee will (except as may
be otherwise specified in Schedule 1.2(d) attached hereto) be equal to the total number of shares of Broncus Common Stock subject to such Broncus Option, whether or not vested (computed before the effect of any modification or adjustment of
such Broncus Option made in connection with the Spin-off); 
  

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 (ii) the exercise price per share of each such Asthmatx Option shall be a price per share of
Asthmatx Common Stock that is forty percent (40%) of the exercise price per share at which shares of Broncus Common Stock are purchasable under such Broncus Option (computed before the effect of any modification or adjustment of such Broncus
Option made in connection with the Spin-off); 
 (iii) each Asthmatx Option granted to such Continuing Broncus Optionee
(A) shall be vested on the date it is granted to the same extent that the Broncus Option with respect to which it was granted was vested on such date, and (B) shall vest and become exercisable on the same terms and vesting schedule as the
Broncus Option with respect to which it was granted, except that, for purposes of vesting, all applicable references to Broncus in such Broncus Option shall be references to Asthmatx in such Asthmatx Option; 
 (iv) each such Asthmatx Option shall continue to be exercisable by such Transferring Optionee for so long as such Transferring Optionee continues
to be employed by, or provide services to, Asthmatx or a Parent or Subsidiary of Asthmatx (as those terms are defined in Asthmatx’s option plan) but in no event beyond the scheduled expiration date of the Broncus Option with respect to which
such Asthmatx Option is granted; and 
 (v) other terms not described in the foregoing clauses (i) through (iv) that are
substantially the same as the terms of the Broncus Option with respect to which such Asthmatx Option is granted. 
 2.
ASSUMPTION OF OBLIGATIONS AND LIABILITIES. 
 2.1 Certain Defined Terms. As used herein, the following terms shall have the following meanings: 
 (a)
“Alair” means the Alair Asthma Treatment System which was originally developed by Broncus and which has been contributed and assigned by Broncus to Asthmatx pursuant to this Agreement. 
 (b) “Alair Business” shall have the meaning given to that term in Recital A of this Agreement and includes, without
limitation, the business of developing, testing, marketing, selling and otherwise commercially exploiting Alair and any associated services. 
 (c) “Exhale” means Broncus’ Exhale Airway Bypass System, which is used to treat emphysema in humans and which is owned and retained by Broncus. 
 (d) “Exhale Business” means Broncus’ business of developing, testing, marketing, selling and otherwise commercially
exploiting Exhale and any associated services. 
 (e) “Liabilities” means, collectively, any and all
liabilities, losses, claims, debts, duties, obligations (including but not limited to contractual obligations), expenses, claims, deficiencies or guaranties of any type, whether accrued, absolute, contingent, matured, unmatured or otherwise.

  

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 (f) “Loss” means, collectively, all Liabilities, loss, damages, expense,
cost, fines, fees, penalties, obligations or injuries, including without limitation those resulting from any and all claims, actions, suits, demands, assessments, investigations, judgments, awards, arbitrations or other proceedings, together with
reasonable costs and expenses including the reasonable attorneys’ fees and other legal costs and expenses relating thereto. 
 2.2
Assumption of Liabilities by Asthmatx. Except to the extent that Asthmatx is expressly entitled to be indemnified for any of such Liabilities by Broncus pursuant to the provisions of the Indemnification Agreement (as that term is defined
in Section 2.3 below), Asthmatx hereby assumes and agrees to faithfully and timely pay, perform, fulfill and satisfy in full all of the following Liabilities (collectively, the “Assumed Liabilities”): 
 (a) any and all Liabilities, to the extent that such Liabilities relate to, arise out of or result from the conduct or operation of the Alair
Business by any person or entity (including but not limited to Broncus, Asthmatx and/or by any other party or parties) at any time, whether before, on or after the Effective Date; and 
 (b) any Liability to the extent it relates to, arises out of, or results from, any of the Assigned Assets (including without limitation any of
the Assigned Contracts) whether such Liability arises before, on or after the Effective Date. 
 2.3 Indemnification
Agreement. The parties mutually agree, as soon as reasonably practicable, to enter into a separate written agreement between themselves (such agreement being referred to herein as the “Indemnification Agreement”).
The Indemnification Agreement will provide for and address the following matters: (a) the terms and conditions upon which Asthmatx will undertake to use good faith efforts to obtain certain liability insurance relating to the Alair Business;
(b) the terms and conditions upon which Asthmatx will indemnify Broncus for Loss related to the Alair Business (including the Assumed Liabilities); (c) the terms and conditions upon which Broncus will indemnify Asthmatx for Loss related to
the Exhale Business; and (d) the terms and conditions upon which the parties will have access to and may obtain coverage under, certain insurance policies held by Broncus providing coverage for certain third-party claims arising from the
treatment of individuals with Alair prior to the Effective Date (which may include provisions pursuant to which Broncus may, from the proceeds of such insurance policies, provide certain limited indemnification to Asthmatx with respect to such
third-party claims). 
 3. FURTHER ASSURANCES. The parties agree to
execute such further documents and instruments and to take such further actions as may be reasonably necessary to carry out the purposes and intent of this Agreement. Broncus further agrees, promptly upon request of Asthmatx, or any of its
successors or assigns, to, at Asthmatx’s expense, to execute, deliver and/or assist in the filing of (i) recordable patent assignments for each patent or patent application included in the Assigned Patent Rights, (ii) recordable
trademark assignments for each trademark, trademark application or similar right included in the Assigned Trademark Rights, and (iii) any power of attorney, assignment, application for copyright, patent or other 
  

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intellectual property right protection, or any other papers which may be necessary or desirable to fully secure to Asthmatx, its successors and assigns, all
right, title and interest in and to each of the Assigned Assets. In addition, Broncus agrees never to assert any claims, rights or moral rights in or to any of the Assigned Assets, except such rights, if any, as Broncus may hold under a separate
written agreement executed by Broncus and Asthmatx. 
 4. REPRESENTATIONS AND WARRANTIES
OF BRONCUS. Broncus represents and warrants to Asthmatx that, as of the Effective Date: 
 4.1 Corporate Organization. Broncus is a corporation duly organized, validly existing and in good standing under the laws of the State of California, and has the corporate power and authority to enter into and perform its
obligations under this Agreement. 
 4.2 Authority. The execution, delivery and performance of this Agreement, and the
performance by Broncus of the transactions contemplated hereby, have been duly and validly approved and authorized by all necessary action of Broncus’ Board of Directors. This Agreement is the valid and binding obligation of Broncus,
enforceable in accordance with its terms, except as to the effect, if any, of (i) applicable bankruptcy, insolvency, reorganization or other laws of general application relating to or affecting the enforcement of creditors’ rights
generally and (ii) rules of law governing specific performance, injunctive relief and other equitable remedies. 
 4.3 No
Conflict. Neither the execution and delivery of this Agreement, nor the consummation of the transactions contemplated hereby, will conflict with or violate any provision of the Articles of Incorporation or Bylaws of Broncus. 
 4.4 Securities Law Matters. Broncus is not acquiring the Asthmatx Shares with a view to, or for sale in connection with, any unlawful
distribution of the Asthmatx Shares within the meaning of the Securities Act of 1933, as amended (the “Securities Act”). Broncus has a preexisting business relationship with Asthmatx and/or certain of its officers and/or
directors of a nature and duration sufficient to make Broncus aware of the character, business acumen and general business and financial circumstances of Asthmatx and/or such officers and directors. By reason of Broncus’ business and financial
experience, Broncus is capable of evaluating the merits and risks of this investment, has the ability to protect Broncus’ own interests in this transaction and is financially capable of bearing a total loss of this investment. 
 4.5 Assigned Assets. To Broncus’ knowledge, (a) Broncus owns, and can grant exclusive right, title and interest in and to, each
of the Assigned Assets, (b) none of the Assigned Assets are presently subject to any dispute, claim, prior license or other agreement, assignment or rights of any third party, or any other rights that might interfere with Asthmatx’s use,
or exercise of ownership of, any Assigned Assets, nor is Broncus aware of any claims by any third party to any rights of any kind in or to any of the Assigned Assets, and (c) none of the Assigned Assets are subject to any lien, pledge,
mortgage, security interest or other encumbrance of any sort (other than such Liabilities as are assumed by Asthmatx pursuant to Section 2 of this Agreement and other than any lien that would have no material affect on Asthmatx’s ability
to use or transfer an Assigned Asset). 
  

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 5. ACKNOWLEDGMENT AND AGREEMENT BY BRONCUS AND ASTHMTAX REGARDING SPIN-OFF. Broncus
and Asthmatx acknowledge and agree that (i) the Asthmatx Shares are not being registered with the Securities and Exchange Commission under the Securities Act or being qualified under the California Corporate Securities Law of 1968, as amended,
or other applicable state securities laws, but instead are being issued under exemptions from the registration and qualification requirements of such securities laws which impose certain restrictions on the subsequent sale, transfer or other
disposition the Asthmatx Shares by Broncus and Broncus’ shareholders, and (ii) the stock certificates representing the Asthmatx Shares will bear restrictive legends as set forth in Section 6.1 to enable Asthmatx to enforce the
aforementioned transfer restrictions and such transfer restrictions will be noted in Asthmatx’s stock transfer books. Broncus and Asthmatx further acknowledge and agree that the aforementioned transfer restrictions will apply to the Asthmatx
Shares (and will continue to apply to the Asthmatx Shares in the hands of Broncus’ shareholders who receive them in the Spin-off). 
 6. RESTRICTIVE LEGENDS AND STOP-TRANSFER ORDERS. 
 6.1 Legends. Broncus understands and agrees that
Asthmatx will place the legends set forth below or similar legends on any stock certificate(s) evidencing the Asthmatx Shares, together with any other legends that may be required by state or federal securities laws, Asthmatx’s Articles of
Incorporation or Bylaws, any other applicable agreement between Broncus, Asthmatx and/or any third parties: 
 THE SECURITIES REPRESENTED
HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR UNDER THE SECURITIES LAWS OF CERTAIN STATES. THESE SECURITIES ARE SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND RESALE AND MAY NOT BE TRANSFERRED
OR RESOLD EXCEPT AS PERMITTED UNDER THE ACT AND APPLICABLE STATE SECURITIES LAWS, PURSUANT TO REGISTRATION OR EXEMPTION THEREFROM. INVESTORS SHOULD BE AWARE THAT THEY MAY BE REQUIRED TO BEAR THE FINANCIAL RISKS OF THIS INVESTMENT FOR AN INDEFINITE
PERIOD OF TIME. THE ISSUER OF THESE SECURITIES MAY REQUIRE AN OPINION OF COUNSEL IN FORM AND SUBSTANCE SATISFACTORY TO THE ISSUER TO THE EFFECT THAT ANY PROPOSED TRANSFER OR RESALE IS IN COMPLIANCE WITH THE ACT AND ANY APPLICABLE STATE SECURITIES
LAWS. 
 THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO A 180 DAY MARKET STANDOFF RESTRICTION AS SET FORTH IN A CERTAIN
AGREEMENT BETWEEN THE ISSUER AND THE ORIGINAL HOLDER OF THESE SHARES, A COPY OF WHICH MAY BE OBTAINED AT THE PRINCIPAL OFFICE OF THE ISSUER. AS A RESULT OF SUCH AGREEMENT, THESE SHARES MAY NOT BE TRADED PRIOR TO 180 DAYS AFTER THE EFFECTIVE DATE OF
A PUBLIC OFFERING OF THE COMMON STOCK OF THE ISSUER HEREOF. SUCH RESTRICTION IS BINDING ON TRANSFEREES OF THESE SHARES. 
 6.2
Stop-Transfer Instructions. Broncus agrees that, to ensure compliance with the restrictions imposed by this Agreement, Asthmatx may issue appropriate “stop-transfer” instructions to its transfer agent, if any, and if Asthmatx
transfers its own securities, it may make appropriate notations to the same effect in its own records. 
  

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 6.3 Refusal to Transfer. Asthmatx will not be required (a) to transfer on its books
any Asthmatx Shares that have been sold or otherwise transferred in violation of any of the provisions of this Agreement or (b) to treat as owner of such Asthmatx Shares, or to accord the right to vote or pay dividends, to any purchaser or
other transferee to whom such Asthmatx Shares have been so transferred; provided, however, that Broncus and Asthmatx acknowledge and agree that the transfer, distribution and dividend of the Asthmatx Shares to Broncus’
shareholders in connection with the Spin-off shall not constitute a transfer in violation of any of the provisions of this Agreement and this Section 6.3 shall not apply to any such transfer. 
 6.4 Market Stand Off Agreement. Broncus agrees, in connection with any registration of Asthmatx’s securities under the Securities Act
that, upon the request of Asthmatx or the underwriters managing any registered public offering of Asthmatx’s securities, Broncus will not sell or otherwise dispose of any Asthmatx Shares without the prior written consent of Asthmatx or such
underwriters, as the case may be, for such period of time (not to exceed one hundred eighty (180) days) after the effective date of such registration requested by such managing underwriters and subject to all restrictions as Asthmatx or the
managing underwriters may specify for employee-shareholders generally. Broncus further agrees to enter into any agreement reasonably required by the underwriters to implement the foregoing. 
 7. CERTAIN AGREEMENTS. 
 7.1
License and Manufacturing Agreements. To assist Asthmatx in commencing business as a separate entity following the Spin-off and to afford each other certain assurances regarding each party’s ability to use and practice certain
intellectual property rights, the parties agree that, concurrently with the Spin-off, they shall: (a) enter into a License Agreement having the principal terms summarized in the Term Sheet attached as Exhibit B hereto, under which each
party would grant the other a license to use certain of its intellectual property rights within a defined field of use (the “Cross-License Agreement”); and (b) a Manufacturing Service Agreement in substantially the form
attached hereto as Exhibit C (the “Manufacturing Agreement”), pursuant to which Broncus would agree to manufacture certain devices for Asthmatx in exchange for cash charges. The definitive forms of the Cross-License
Agreement and the Manufacturing Agreement executed by the parties shall be the sole and exclusive agreement and understanding of the parties with regard to the subject matter of such agreements. 
 8. GENERAL PROVISIONS. 
 8.1
Governing Law. This Agreement will be governed by and construed in accordance with the laws of the State of California, without giving effect to that body of laws pertaining to conflict of laws. 
 8.2 Further Assurances. The parties agree to execute such further documents and instruments and to take such further actions as may be
reasonably necessary to carry out the purposes and intent of this Agreement. 
 8.3 Counterparts; Facsimile Signatures. This
Agreement may be executed in any number of counterparts, each of which when so executed and delivered will be deemed an 
  

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original, and all of which together shall constitute one and the same agreement. This Agreement may be executed and delivered by facsimile and upon such
delivery the facsimile signature will be deemed to have the same effect as if the original signature had been delivered to the other party. 
 8.4 Severability. If any provision of this Agreement is determined by any court or arbitrator of competent jurisdiction to be invalid, illegal or unenforceable in any respect, such provision will be enforced to the maximum
extent possible given the intent of the parties hereto. If such clause or provision cannot be so enforced, then such provision shall be stricken from this Agreement and the remainder of this Agreement shall be enforced as if such invalid, illegal or
unenforceable clause or provision had (to the extent not enforceable) never been contained in this Agreement. 
 8.5 Notices.
Any and all notices required or permitted to be given to a party pursuant to the provisions of this Agreement will be in writing and will be effective and deemed to provide such party sufficient notice under this Agreement on the earliest of the
following: (i) at the time of personal delivery, if delivery is in person; (ii) one (1) business day after deposit with an express overnight courier for United States deliveries, or two (2) business days after such deposit for
deliveries outside of the United States, with proof of delivery from the courier requested; or (iii) three (3) business days after deposit in the United States mail by certified mail (return receipt requested) for United States deliveries.
All notices for delivery outside the United States will be sent by express courier. All notices not delivered personally will be sent with postage and/or other charges prepaid and properly addressed to the party to be notified at the address set
forth on the signature page to this Agreement (or at such other address as the party to be notified may have designated to the other party by one of the indicated means of notice herein). 
 8.6 Amendment and Waivers. This Agreement may not be altered or amended except by an instrument in writing executed by Broncus and
Asthmatx. No rights of a party under this Agreement may be waived, except by an instrument in writing executed by such party. No waiver of any terms, provision or condition of or failure to exercise or delay in exercising any rights or remedies
under this Agreement, in any one or more instances shall be deemed to be, or construed as, a further or continuing waiver of any such term, provision, condition, right or remedy or as a waiver of any other term, provision or condition of this
Agreement. 
 8.7 Entire Agreement. This Agreement and the documents referred to herein and exhibits hereto constitute the
entire agreement and understanding of the parties with respect to the subject matter of this Agreement, and supersede all prior understandings and agreements, whether oral or written, between or among the parties hereto with respect to the specific
subject matter hereof. 
 [Signature page follows] 
  

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 IN WITNESS WHEREOF, the parties hereto have executed
this CORPORATE FORMATION AGREEMENT as of the Effective Date set forth in the first paragraph hereof. 
 ASTHMATX, INC. 
  

			
	 By:
	 	 /s/ Glen French

		 	Glen French, President

  

			
	 Address:
	  	 1340 Space Park Way
 Mountain View, CA
94043

 IN WITNESS WHEREOF, the parties hereto have executed
this CORPORATE FORMATION AGREEMENT as of the Effective Date set forth in the first paragraph hereof. 
 BRONCUS TECHNOLOGIES, INC. 
  

			
	 By:
	 	 /s/ Cary Cole

		 	Cary Cole, President

  

			
	Address:	  	 1400 North Shoreline Blvd, Suite A8
 Mountain View, CA
94043

 Exhibit A 
 Broncus Warrants 
  

									
	 Broncus Warrant Holder
	  	 Warrant Number
	  	 Issue Date
	  	 Expiration Date
	  	 Number of Shares of Broncus

 Common Stock Issuable Upon

 Exercise in Full

	 ****
	  	CS-01	  	3/20/1998	  	3/19/2008	  	20,000
	 ****
	  	CS-02	  	1/24/2000	  	1/24/2005 or trans or IPO	  	48,077
	 ****
	  	CS-03	  	2/13/2002	  	2/13/2005 or IPO	  	519,143
	 ****
	  	CS-04	  	2/13/2002	  	2/13/2005 or IPO	  	58,118
	 ****
	  	CS-05	  	2/13/2002	  	2/13/2005 or IPO	  	2,325
	 ****
	  	CS-06	  	2/13/2002	  	2/13/2005 or IPO	  	37,082
	 ****
	  	CS-07	  	2/13/2002	  	2/13/2005 or IPO	  	371
	 ****
	  	CS-08	  	2/13/2002	  	2/13/2005 or IPO	  	1,854
	 ****
	  	CS-09	  	2/13/2002	  	2/13/2005 or IPO	  	2,225
	 ****
	  	CS-10	  	2/13/2002	  	2/13/2005 or IPO	  	2,225
	 ****
	  	CS-11	  	2/13/2002	  	2/13/2005 or IPO	  	27,440
	 ****
	  	CS-12	  	2/13/2002	  	2/13/2005 or IPO	  	37,082
	 ****
	  	CS-13	  	2/13/2002	  	2/13/2005 or IPO	  	46,352
	 ****
	  	CS-14	  	2/13/2002	  	2/13/2005 or IPO	  	6,675

  

	****	Certain portions of this exhibit have been omitted and confidential treatment has been requested for these omitted portions pursuant to an application for confidential treatment
sent to the Securities and Exchange Commission. 

 Schedule 1.1(b) 
 Tangible Personal Property 
  

										
	 Item
	  	 Model Number
	  	 Serial Number
	  	 QTY
	  	Price
	 Kelly Shriner’s computer
	  	Compaq Evo (P4 1800) Desktop	  	W233KN8ZB374	  	1	  	$	1,500
	 Gary Kaplan’s computer
	  	Dell Optiplex GX110 (866) Desktop	  	127-646-228-17 / 5V3Q601	  	1	  	$	1,500
	 Narinder Shargill’s computer
	  	Dell Latitude L400 (???) Laptop	  	19526848885 / 8YXS511	  	1	  	$	2,000
	 Debbie Brown’s computer
	  	Compaq Evo (P4 1500) Desktop	  	6X1CJYFZJ101	  	1	  	$	1,500
	 Bill Wizeman’s computer
	  	Compaq Evo (P4 1500) Desktop	  	6X1CJYFZJ0ZY	  	1	  	$	1,500
	 Steve Fermi’s computer
	  	Dell Optiplex GX100 (500) Desktop	  	286-394-149-55 / D5N620B	  	1	  	$	1,500
	 Glen French’s computer
	  	Compaq Evo N610c (?????) Laptop	  		  	1	  	$	2,000
	 Glen French—Fax
	  	HP 720	  		  	1	  	$	250
	 Chris Danek—computer
	  	Dell Dimension XPS R350 Desktop	  	273-964-89 / GB79L	  	1	  	$	1,500
	 Marilyn Foust—computer
	  	Dell Dimension XPS R350 Desktop	  	286-382-89 / H1TG1	  	1	  	$	1,500
	 Barrie Weeks—computer
	  	Compaq Evo (P4 1700) Desktop	  	6X24JYFZN05D	  	1	  	$	1,500
	 Grant Laptop
	  	Compaq Evo N610c (P4-2400) Laptop	  	7E35KT8ZD18Y	  	1	  	$	2,800
	 glen’s old laptop
	  	Compaq Evo N400c (P3 700) Laptop	  	1J16JMWZV62J	  	1	  	$	2,000
	 glen’s old desktop
	  	Compaq Deskpro EN (P3 866) Desktop	  	6125FR4ZB271	  	1	  	$	1,500
	 trudy’s old laptop
	  	Compaq Evo N800c (P4 2000) Laptop	  	9X2AKQFZJ08F	  	1	  	$	2,000
	 Copier (36 monthly payments of $287 starting December 2003)
	  	Imagistics DL37	  	2100049	  	1	  	$	9,000
	 Task Chairs
	  	Gray Office Master Chairs	  		  	8	  	$	200
	 File cabinets
	  	Hon 4 drawer letter size vertical	  		  	11	  	$	100
	 Microscope
	  	B&L Microscope - Stereo Zoom 6	  	Broncus Cal. C0269	  	1	  	$	1,500
	 RF Generators
	  	RF Generators at Clinical sites	  		  	14	  	$	72,800
	 RF Generators
	  	RF Generator	  	100302-012	  	1	  	$	5,200
	 RF Generators
	  	RF Generator	  	033097-001	  	1	  	$	5,200
	 Camera Source
	  	Pentax Endovision 3000 MSV-00120-20	  		  	1	  		
	 Camera Head
	  	Pentax	  	07-333	  	1	  		
	 Camera (goes with head above)
	  	Pentax	  	6-0822	  	1	  		
	 Pentax light source (old)
	  	Pentax LH-150A	  	AA00400	  	1	  		
	 LCD Projector
	  	Hitachi XGA / CP-X328T	  	RT31001393	  	1	  	$	2,000
	 Polycom
	  		  	12775478	  	1	  	$	500
	 Polycom
	  	Lucent	  	12259137	  	1	  	$	300
	 Fire Proof File Cabinet
	  	Schwab 1000	  		  	1	  	$	1,200
	 Supply cabinet (small)
	  		  		  	1	  	$	200
	 Printer
	  	HP laser jet 4200dtn	  		  	1	  	$	2,100
	 Printer
	  	HP inkjet 1100	  		  	1	  	$	325
	 Postage meter (22 quarterly payments of $112 start 12/03)
	  	Pitney Bowes Model E700	  		  	1	  	$	2,400
	 Postage scale
	  	Pitney Bowes Model N50R	  		  	1	  		
	 Conference Room tables
	  	AVA 8' x 4'	  		  	3	  	$	2,000
	 Servers
	  	 Purchased from Baypoint Tech
 nology
11/03
	  		  	2	  	$	18,000

  

	****	Certain portions of this exhibit have been omitted and confidential treatment has been requested for these omitted portions pursuant to an application for confidential treatment
sent to the Securities and Exchange Commission. 

										
	 Item
	  	 Model Number
	  	 Serial Number
	  	 QTY
	  	Price
	 KVM Switch
	  		  		  	1	  	$	250
	 UPS Power Supplies
	  		  		  	2	  	$	1,050
	 Cisco Router
	  		  		  	1	  	$	1,300
	 Watchguard firewall
	  		  		  	1	  	$	1,050
	 Cisco Switch
	  		  		  	1	  	$	575
	 Phone System – Aspire
	  	includes 19 phones, vm, main unit, door box, labor	  		  	1	  	$	15,900
	 Alarm Desktop computer
	  	Dell M200S	  		  	1	  	$	500
	 Refrigerator
	  	Kenmore	  		  	1	  	$	600
	 microwave
	  		  		  	1	  	$	90
	 Toaster Oven
	  		  		  	1	  		
	 Kitchen tables
	  	Ikea	  		  	4	  		
	 kitchen chairs
	  	Ikea	  		  	20	  		
	 Conference room chairs
	  	Ikea	  		  	12	  		

  

	****	Certain portions of this exhibit have been omitted and confidential treatment has been requested for these omitted portions pursuant to an application for confidential treatment
sent to the Securities and Exchange Commission. 

 Schedule 1.1(c) 
 Assigned Contracts 
  

									
	 Other Party to Contract
	  	 Legal Title of Contract
	  	 Description of Contract
	  	 Effective
Date
	  	 Expiration
Date

	 AT Cook Properties Trust1
	  	Standard Industrial/Commercial Single-Tenant Lease	  	Building Lease	  		  	
	 ****
	  	Subcontract Agreement between Johns Hopkins University and Broncus Technologies, Inc.	  	Grant work	  	9/30/2001	  	8/31/2006
	 ****
	  	Authorization to Proceed with: Broncus (Protocol Number: 0602-20)	  	Regulatory/Clinical	  	6/9/2003	  	
	 ****
	  	Authorization to Proceed with: Alair System for the Bronchial Thermoplasty Treatment of Asthmat	  	CRA training, etc.	  	6/1/2003	  	
	 ****
	  	Confidential Disclosure Agreement	  	clinical	  	6/5/2003	  	
	 ****
	  	Contract Services Agreement	  	technical writing	  	8/21/2003	  	8/31/2004
	 ****
	  	Clinical Work and Services Agreement	  	Denmark monitors	  	10/17/2003	  	
	 ****
	  	License Agreement	  	license agreement	  	10/15/1998	  	
					
	 Independent Consultant Agreements
	  		  		  		  	
	 ****
	  	Independent Consultant Agreement	  	reviews radiological sections	  	9/22/1998	  	1/1/2001
	 ****
	  	Independent Consultant Agreement	  	R&D	  	12/1/2003	  	1/15/2004
	 ****
	  	Independent Consultant Agreement	  	DSMB (ex member)	  	10/23/2001	  	10/23/2002
	 ****
	  	Independent Consultant Agreement	  	R&D (works at JHU)	  	10/22/1999	  	10/31/2000
	 ****
	  	Independent Consultant Agreement	  	Clinical	  	4/5/1999	  	1/1/2002
	 ****
	  	Independent Consultant Agreement	  	DSMB	  	9/18/2002	  	9/18/2003
	 ****
	  	Independent Consultant Agreement	  	Non/Standard Cons. Agree.	  	11/14/1998	  	
	 ****
	  	Independent Consultant Agreement	  	Clinical trial help/A. Griffiths	  	6/6/2001	  	
	 ****
	  	Independent Consultant Agreement	  	Dr. at Clinical site	  	7/16/2003	  	12/31/2008
	 ****
	  	Independent Consultant Agreement	  	regulatory & clinical	  	4/12/2001	  	12/31/2002
	 ****
	  	Independent Consultant Agreement	  	Clinical / Beth Israel Deaconess Medical Center	  	12/21/2001	  	12/31/2006
	 ****
	  	Independent Consultant Agreement	  	Regulatory consulting	  	8/1/2003	  	8/1/2008
	 ****
	  	Independent Consultant Agreement	  	Clinical & Regulatory	  	9/29/1997	  	1/1/2000
	 ****
	  	Independent Consultant Agreement	  	Clinical & Regulatory, Advisor, protocol Design Issues	  	7/9/2002	  	12/31/2007

	 1
	 Asthmatx and Broncus agree (i) that Broncus’ lease with AT Cook
Properties Trust shall not be assigned to Asthmatx unless and until any consent of AT Cook Properties Trust necessary for such assignment has been obtained, and (ii) if any such consent is necessary and cannot be obtained, that Broncus shall
attempt to sublet the premises covered by such lease to Asthmatx. 

  

	****	Certain portions of this exhibit have been omitted and confidential treatment has been requested for these omitted portions pursuant to an application for confidential treatment
sent to the Securities and Exchange Commission. 

									
	 Other Party to Contract
	  	 Legal Title of Contract
	  	 Description of Contract
	  	 Effective
Date
	  	 Expiration
Date

	 ****
	  	Independent Consultant Agreement	  	Biostatistics consult.	  	2/1/2002	  	2/1/2005
	 ****
	  	Independent Consultant Agreement	  	supports clinical sites	  	10/9/2001	  	12/31/2002
	 ****
	  	Independent Consultant Agreement	  	Clinical & Regulatory	  	6/24/2002	  	12/31/2007
	 ****
	  	Independent Consultant Agreement	  	Clinical & Regulatory	  	1/10/2003	  	3/31/2004
	 ****
	  	Independent Consultant Agreement	  	R&D (Dr. at JHU)	  	10/22/1999	  	10/31/2000
	 ****
	  	Independent Consultant Agreement	  	Designer for letterhead, etc	  	2/8/2002	  	
	 ****
	  	Independent Consultant Agreement	  	R&D, Clinical & Regul.	  	11/3/1999	  	12/31/2004
	 ****
	  	Independent Consultant Agreement	  	Research	  	2/26/2002	  	12/31/2002
	 ****
	  	Independent Consultant Agreement	  	R&D design & fabrication	  	12/10/1997	  	
	 ****
	  	Independent Consultant Agreement	  	Regulatory	  	10/13/2000	  	10/13/2001
	 ****
	  	Independent Consultant Agreement	  	Clinical help	  	12/13/2001	  	12/31/2004
	 ****
	  	Independent Consultant Agreement	  	DSMB	  	8/15/2003	  	8/15/2005
	 ****
	  	Independent Consultant Agreement	  	Regulatory	  	10/11/2001	  	
	 ****
	  	Independent Consultant Agreement	  	DSMB	  	8/20/2003	  	8/20/2005
	 ****
	  	Independent Consultant Agreement	  	QOL surveys for Clinical	  	8/7/2002	  	8/7/2005
					
	 Nondisclosure Agreements
	  		  		  		  	
	 ****
	  	Nondisclosure Agreement	  	Non Disclosure	  	6/19/2000	  	6/19/2005
	 ****
	  	Nondisclosure Agreement	  	Non Disclosure	  	3/21/2001	  	3/21/2006
	 ****
	  	Nondisclosure Agreement	  	Non Disclosure	  	1/27/2003	  	1/27/2008
	 ****
	  	Nondisclosure Agreement	  	NonDisclosure	  	9/15/2003	  	9/15/2008
	 ****
	  	Nondisclosure Agreement	  	NonDisclosure	  	4/10/2003	  	4/10/2008
	 ****
	  	Nondisclosure Agreement	  	NonDisclosure	  	2/17/2000	  	2/17/2005
	 ****
	  	Nondisclosure Agreement	  	Marketing Vendor-nondisc.	  	8/6/2001	  	8/6/2006
	 ****
	  	Nondisclosure Agreement	  	NonDisclosure	  	4/17/1998	  	4/17/2000
	 ****
	  	Nondisclosure Agreement	  	NonDisclosure	  	10/13/2000	  	10/13/2005
	 ****
	  	Nondisclosure Agreement	  	NonDisclosure	  	5/8/1998	  	5/8/2000
	 ****
	  	Nondisclosure Agreement	  	Quality Assurance, Keith Rohrbach	  	7/6/01	  	7/6/06
	 ****
	  	Mutual Nondisclosure Agreement	  	Vendor for Clinical kits, Andrew Gall	  	8/8/2002	  	
	 ****
	  	Nondisclosure Agreement	  	CFD Research	  	1/27/03	  	1/27/08
	 ****
	  	Nondisclosure Agreement	  	Cynthia Gail Royster	  	10/24/2003	  	10/24/2008
	 ****
	  	Nondisclosure Agreement	  	Potential investigator in Holland, Leiden Univ. Medical Center	  	3/13/2000	  	3/13/2005
	 ****
	  	Nondisclosure Agreement	  	Scott Summit	  	7/12/2002	  	7/12/2007
	 ****
	  	Nondisclosure Agreement	  	Tyler Baughman	  	11/18/2003	  	

  

	****	Certain portions of this exhibit have been omitted and confidential treatment has been requested for these omitted portions pursuant to an application for confidential treatment
sent to the Securities and Exchange Commission. 

									
	 Other Party to Contract
	  	 Legal Title of Contract
	  	 Description of Contract
	  	 Effective
 Date
	  	 Expiration
 Date

	 Clinical Trial Contracts
	  		  		  		  	
	 ****
	  	Clinical Trial Agreement	  	Protocol 0602-20	  	5/9/2003	  	
	 ****
	  	Clinical Trial Agreement	  	Protocol 0602-20	  	8/8/2003	  	
	 ****
	  	Clinical Trial Agreement	  	Protocol 0602-20	  	8/12/2003	  	
	 ****
	  	Clinical Trial Agreement	  	Portocol 0602-20	  	9/17/2002	  	
	 ****
	  	Clinical Trial Agreement	  		  	1/22/2003	  	
	 ****
	  	Clinical Trial Agreement	  	Protocol 0602-20	  	8/14/2002	  	
	 ****
	  	Clinical Trial Agreement	  	Protocol 0602-20	  	2/5/2003	  	
	 ****
	  	Clinical Trial Agreement	  	Protocol 0602-20	  	11/21/2002	  	
	 ****
	  	Clinical Trial Agreement	  	Protocol 0602-20	  	12/1/2002	  	
	 ****
	  	Clinical Trial Agreement	  	Protocol 0602-20	  	8/22/2002	  	
	 ****
	  	Clinical Trial Agreement	  	Protocol 0602-20	  	12/20/2002	  	
	 ****
	  	Clinical Trial Agreement	  	Protocol 1100-08	  	1/15/2001	  	

  

	****	Certain portions of this exhibit have been omitted and confidential treatment has been requested for these omitted portions pursuant to an application for confidential treatment
sent to the Securities and Exchange Commission. 

 Schedule 1.1(d) 
 Assigned Patents Rights 
 ACTIVE APPLICATIONS 
  

											
	Docket Number	  	 Country
	  	Application
Number	  	Application
Date	  	Patent Number	  	 Title

	43571-20001.00	  	United States	  	08/833,550	  	4/7/1997	  	6,273,907 B1	  	BRONCHIAL STENTER\n
	43571-20001.01	  	United States	  	10/232,909	  	8/30/2002	  		  	METHOD OF INCREASING GAS EXCHANGE OF A LUNG\n
	43571-20001.10	  	United States	  	09/176,899	  	10/22/1998	  	6,299,633 B1	  	BRONCHIAL STENTER\n
	43571-20001.11	  	United States	  	09/280,672	  	3/29/1999	  	6,283,989 B1	  	METHOD OF TREATING A BRONCHIAL TUBE WITH A BRONCHIAL\nSTENTER HAVING DIAMETRICALLY ADJUSTABLE ELECTR
	****	  	****	  	****	  	****	  		  	****
	43571-20001.20	  	United States	  	08/994,064	  	12/19/1997	  	6,083,255	  	BRONCHIAL STENTER\n
	43571-20001.21	  	United States	  	09/003,750	  	1/7/1998	  	5,972,026	  	BRONCHIAL STENTER HAVING DIAMETRICALLY ADJUSTABLE ELECTRODES\n
	43571-20001.22	  	United States	  	09/224,937	  	12/31/1998	  	6,200,333 B1	  	BRONCHIAL STENTER\n
	43571-20001.23	  	United States	  	09/260,401	  	3/1/1999	  	6,283,988 B1	  	BRONCHIAL STENTER HAVING EXPANDABLE ELECTRODES\n
	****	  	****	  	****	  	****	  		  	****
	43571-20001.25	  	United States	  	09/349,715	  	7/8/1999	  	6,488,673 B1	  	METHOD OF INCREASING GAS EXCHANGE OF A LUNG\n
	43571-20001.45	  	Australia	  	33903/00	  	3/1/2000	  		  	BRONCHIAL STENTER HAVING EXPANDABLE ELECTRODES\n
	43571-20001.46	  	Canada	  	2362782	  	3/1/2000	  		  	BRONCHIAL STENTER HAVING EXPANDABLE ELECTRODES\n
	43571-20001.47	  	European Patent Convention	  	9121211	  	3/1/2000	  	1164958	  	BRONCHIAL STENTER HAVING EXPANDABLE ELECTRODES\n
	43571-20001.48	  	Japan	  	2000601983	  	3/1/2000	  		  	BRONCHIAL STENTER HAVING EXPANDABLE ELECTRODES\n
	43571-20009.00	  	United States	  	09/095,323	  	6/10/1998	  		  	METHOD AND MEANS FOR TREATMENT OF PULMONARY MUSCLES\n
	43571-20009.01	  	United States	  	10/414,253	  	4/14/2003	  		  	MODIFICATION OF AIRWAYS BY APPLICATION OF ENERGY
	43571-20009.02	  	United States	  	10/414,411	  	4/14/2003	  		  	CONTROL SYSTEM AND PROCESS FOR APPLICATION OF ENERGY TO AIRWAY WALLS AND OTHER MEDIUMS
	43571-20009.20	  	United States	  	09/296,040	  	4/21/1999	  	6,411,852	  	MODIFICATION OF AIRWAYS BY APPLICATION OF ENERGY\n
	43571-20009.21	  	United States	  	09/436,455	  	11/8/1999	  		  	DEVICES FOR MODIFICATION OF AIRWAYS BY TRANSFER OF ENERGY\n
	43571-20009.22	  	United States	  	09/535,856	  	3/27/2000	  	6,634,363	  	METHODS OF TREATING LUNGS HAVING REVERSIBLE OBSTRUCTIVE PULMONARY DISEASE
	43571-20009.23	  	United States	  	09/999,851	  	10/25/2001	  		  	METHOD FOR TREATING AN ASTHMA ATTACK\n
	43571-20009.44	  	Japan	  	2000553172	  	6/9/1999	  		  	SMOOTH MUSCLE TREATMENT APPARATUS AND TREATMENT\n
	43571-20009.47	  	Australia	  	4800700	  	4/21/2000	  		  	MODIFICATION OF AIRWAYS BY APPLICATION OF ENERGY\n

  

	****	Certain portions of this exhibit have been omitted and confidential treatment has been requested for these omitted portions pursuant to an application for confidential treatment
sent to the Securities and Exchange Commission. 

											
	Docket Number	  	 Country
	  	Application
Number	  	Application
Date	  	Patent
Number	  	 Title

	43571-20009.48	  	Canada	  	2370223	  	4/21/2000	  		  	MODIFICATION OF AIRWAYS BY APPLICATION OF ENERGY\n
	43571-20009.49	  	Japan	  	2000611838	  	4/21/2000	  		  	MODIFICATION OF AIRWAYS BY APPLICATION OF ENERGY\n
	43571-20009.50	  	European Patent Convention	  	9301318	  	4/21/2000	  		  	MODIFICATION OF AIRWAYS BY APPLICATION OF ENERGY\n
	****	  	****	  	****	  	****	  		  	****
	43571-20009.52	  	Canada	  	2,400,276	  	9/19/2002	  		  	METHOD FOR TREATING AN ASTHMA ATTACK\n
	****	  	****	  	****	  	****	  		  	****
	43571-20009.54	  	Canada	  	2,426,167	  	10/17/2001	  		  	CONTROL SYSTEM AND PROCESS FOR APPLICATION OF ENERGY TO AIRWAY WALLS AND OTHER\nMEDIUMS\n
	43571-20009.55	  	Japan	  	2002-
535572	  	10/17/2001	  		  	CONTROL SYSTEM AND PROCESS FOR APPLICATION OF ENERGY TO AIRWAY WALLS AND OTHER\nMEDIUMS\n
	43571-20009.56	  	European Patent Convention	  	1979858.6	  	10/17/2001	  		  	CONTROL SYSTEM AND PROCESS FOR APPLICATION OF ENERGY TO AIRWAY WALLS AND OTHER\nMEDIUMS\n
	****	  	****	  	****	  	****	  		  	****
	43571-20009.58	  	Canada	  	2,426,144	  	10/17/2000	  		  	METHOD AND MEANS FOR TREATMENT OF PULMONARY MUSCLES\n
	43571-20009.59	  	European Patent Convention	  	973613.3	  	10/17/2000	  		  	METHOD AND MEANS FOR TREATMENT OF PULMONARY MUSCLES\n
	43571-20009.60	  	Hong Kong	  	3105480.3	  	7/3/2003	  		  	CONTROL SYSTEM AND PROCESS FOR APPLICATION OF ENERGY TO AIRWAY WALLS AND OTHER\nMEDIUMS\n
	A-004-001	  	United States	  	10/640,967	  	8/13/2003	  		  	METHODS OF TREATING ASTHMA

 INACTIVE APPLICATIONS 
  

											
	Docket Number	  	 Country
	  	 Application
 Number
	  	Application
Date	  	Patent
Number	  	 Title

	43571-20001.40	  	Patent Cooperation Treaty	  	PCT/US98/03759	  	2/27/1998	  		  	BRONCHIAL STENTER TO PREVENT AIRWAY COLLAPSE\n
	43571-20001.41	  	Patent Cooperation Treaty	  	PCT/US99/00232	  	1/7/1999	  		  	BRONCHIAL STENTER TO PREVENT AIRWAY COLLAPSE\n
	43571-20001.42	  	Patent Cooperation Treaty	  	PCT/US98/26227	  	12/21/1998	  		  	BRONCHIAL STENTER TO PREVENT AIRWAY COLLAPSE\n
	43571-20001.43	  	Patent Cooperation Treaty	  	PCT/US00/05412	  	3/1/2000	  		  	BRONCHIAL STENTER HAVING EXPANDABLE ELECTRODES\n
	43571-20001.44	  	Patent Cooperation Treaty	  	PCT/US00/18197	  	6/30/2000	  		  	METHOD OF INCREASING GAS EXCHANGE OF A LUNG\n
	43571-20009.40	  	Patent Cooperation Treaty	  	PCT/US99/12986	  	6/9/1999	  		  	METHOD AND APPARATUS FOR TREATING SMOOTH MUSCLES IN THE WALLS OF BODY CONDUITS\n
	43571-20009.41	  	Patent Cooperation Treaty	  	PCT/US00/10847	  	4/21/2000	  		  	MODIFICATION OF AIRWAYS BY APPLICATION OF ENERGY\n
	43571-20009.42	  	Patent Cooperation Treaty	  	PCT/US00/28745	  	10/17/2000	  		  	METHOD AND MEANS FOR TREATMENT OF PULMONARY MUSCLES\n
	43571-20009.43	  	Australia	  	PCT/US99/12986	  	6/9/1999	  		  	METHOD AND APPARATUS FOR TREATING SMOOTH MUSCLES IN THE WALLS OF BODY CONDUITS\n

  

	****	Certain portions of this exhibit have been omitted and confidential treatment has been requested for these omitted portions pursuant to an application for confidential treatment
sent to the Securities and Exchange Commission. 

											
	Docket Number	  	 Country
	  	 Application
 Number
	  	Application
Date	  	Patent
Number	  	 Title

	43571-20009.45	  	European Patent Convention	  	PCT/US99/12986	  	6/9/1999	  		  	METHOD AND APPARATUS FOR TREATING SMOOTH MUSCLES IN THE WALLS OF BODY CONDUITS\n
	43571-20009.46	  	Patent Cooperation Treaty	  	PCT/US01/32321	  	10/17/2001	  		  	CONTROL SYSTEM AND PROCESS FOR APPLICATION OF ENERGY TO AIRWAY WALLS AND OTHER\nMEDIUMS\n

  

	****	Certain portions of this exhibit have been omitted and confidential treatment has been requested for these omitted portions pursuant to an application for confidential treatment
sent to the Securities and Exchange Commission. 

 Schedule 1.1(e) 
 Assigned Trademark Rights 
  

													
	 Mark
	 	 Country
	 	 App.
 Number
	 	 App. Date
	 	 Reg. Number
	 	 Reg. Date
	 	 Status

	 ALAIR
	 	Canada	 	1,061,603	 	6/2/2000	 		 		 	Pending
	 ALAIR
	 	European Union	 	1,687,680	 	6/2/2000	 	1,687,680	 	7/18/2001	 	Registered
	 ALAIR
	 	United States	 	75/863,338	 	12/3/1999	 		 		 	Pending
	 ASTHMATX
	 	United States	 	78/309,332	 	10/3/03	 		 		 	Pending
	 The Asthmatx Logo
	 	United States	 	78/325,822	 	11/10/03	 		 		 	Pending

  

	****	Certain portions of this exhibit have been omitted and confidential treatment has been requested for these omitted portions pursuant to an application for confidential treatment
sent to the Securities and Exchange Commission. 

 Schedule 1.2(c) 
 Exceptions to Term of Grant of Asthmatx Options to Broncus Optionees 
 Notwithstanding Section 1.2(c),
for any Broncus Optionee who is a member of the board of directors of Asthmatx, and Sanjay Bagade, Charles Lombard, John Miller and Andrew Newman (collectively, “Continuing Broncus Optionees”), (A) the
provisions of Section 1.2(c)(i) (regarding the number of Asthmatx Options to be granted) shall not apply, and instead such Continuing Broncus Optionee shall be granted, with respect to each of his Broncus Options, an Asthmatx Option to purchase
a number of shares of Asthmatx Common Stock equal to the total number of shares of Broncus Common Stock subject to his Broncus Option (computed before the effect of any modification or adjustment of such Broncus Option made in connection with the
Spin-off); and (B) each Asthmatx Option granted to such Continuing Broncus Optionee (1) shall be vested on the date it is granted to the same extent that the Broncus Option with respect to which it was granted was vested on such date, and
(2) shall vest and become exercisable on the same terms and vesting schedule as such Broncus Option, except that, for purposes of vesting, all applicable references to Broncus in the Broncus Option shall be references to Asthmatx in such
Asthmatx Option. 
  

	****	Certain portions of this exhibit have been omitted and confidential treatment has been requested for these omitted portions pursuant to an application for confidential treatment
sent to the Securities and Exchange Commission. 

 Schedule 1.2(d) 
 Exceptions to Term of Grant of Asthmatx Options to Transferring Optionees 
 None. 
  

	****	Certain portions of this exhibit have been omitted and confidential treatment has been requested for these omitted portions pursuant to an application for confidential treatment
sent to the Securities and Exchange Commission.Cross-License Agreement, dated as of December 30, 2003

 Exhibit 10.18 
 CONFIDENTIAL TREATMENT REQUESTED 
 CROSS LICENSE AGREEMENT 
 THIS CROSS LICENSE AGREEMENT (this “Agreement”) is made and entered into effective as of December 30, 2003 (the
“Effective Date”) by and between Broncus Technologies, Inc., a California corporation having its principal place of business at 1400 N. Shoreline Blvd., Bldg. A, Suite 8, Mountain View, California 94303 (“Broncus”)
and Asthmatx, Inc., a California corporation having its principal place of business at 1340 Space Park Way, Mountain View, California 94043 (“Asthmatx”). 
 RECITALS 
 A. Broncus formed Asthmatx and, in exchange for the issuance to Broncus of all the
outstanding shares of Asthmatx’s capital stock, Broncus contributed to Asthmatx the assets, properties, technology and intellectual property owned by Asthmatx as of the Effective Date pursuant to a Corporate Formation Agreement dated as of
December 26, 2003 between Broncus and Asthmatx (the “Formation Agreement”). 
 B. On December 30, 2003, Broncus
distributed all the outstanding shares of Asthmatx’s capital stock to the shareholders of Broncus pursuant to a dividend that Broncus declared and paid to the Broncus shareholders. 
 C. The parties are entering into this Agreement pursuant to the Formation Agreement in order to grant each other certain licenses to rights under their
respective technologies and intellectual property rights in their respective defined fields of use, subject to all the terms and conditions of this Agreement. In addition, pursuant to this Agreement the parties are entering into a separate
Sublicense Agreement to set forth the terms and conditions on which Broncus will grant Asthmatx a sublicense to certain license rights Broncus holds under a license agreement between Broncus and Ntero Surgical, Inc. 
 NOW, THEREFORE, in consideration of the mutual covenants and obligations set forth herein, and for other good and valuable consideration, the
receipt and sufficiency of which is hereby acknowledged, Broncus and Asthmatx hereby agree as follows: 
 CERTAIN DEFINITIONS

 As used in this Agreement, the following terms shall have the meanings indicated below in this Section 1: 
 1.1 “Affiliate” shall mean any entity that is Controlled by, Controls, or is under common Control with Broncus or Asthmatx, as
applicable. 
 1.2 “Asthmatx Existing IP” means, collectively, the following assets and properties of Asthmatx, all of which
were contributed and assigned to Asthmatx by Broncus pursuant to the Formation Agreement: 
 (a) all those Patents (as defined below) that are
listed on Exhibit A attached hereto, which comprise all of the Patents owned by Asthmatx on the Effective Date (collectively, the “Existing Asthmatx Patents”), each of which has an actual filing date on or prior to the
Effective Date (as indicated on Exhibit A); 
  

 **** Certain portions of this exhibit have been omitted and confidential treatment has been requested for these omitted
portions pursuant to an application for confidential treatment sent to the Securities and Exchange Commission. 

 (b) any and all of the copyrightable works owned by Asthmatx on the Effective Date; and 
 (c) any and all trade secrets and proprietary information owned by Asthmatx on the Effective Date. 
 1.3 “Asthmatx Field” shall mean, and shall be limited to, the field consisting of devices and procedures for providing asthma therapy.

 1.4 “Asthmatx Future IP” means, collectively, and is limited to, the following: 
 (a) Patents (including but not limited to Improvement Patents as defined in Section 4 below) that (i) have an actual filing date that occurs
within and during the Sharing Period and (ii) are owned by Asthmatx or assigned to Asthmatx (collectively, “Future Asthmatx Patents”); provided however, that notwithstanding the foregoing, unless otherwise
expressly agreed by Asthmatx in writing, the term “Future Asthmatx Patents” shall not include any Patents that Asthmatx may acquire from a third party after the Effective Date pursuant to: (i) a purchase of such Patents by
Asthmatx or an Affiliate of Asthmatx (where, for purposes of this clause (i), the assignment of a Patent to Asthmatx by an employee or consultant of Asthmatx in connection with services performed by such employee or consultant for Asthmatx will
not be deemed to be a “purchase” of such Patent by Asthmatx); or (ii) a merger or consolidation of Asthmatx or an Affiliate of Asthmatx with such third party or an Affiliate of such third party; and 
 (b) trade secrets and proprietary information developed during the Sharing Period and owned by Asthmatx, but only if and to the extent that:

 (i) such trade secret or proprietary information is developed as a result of, or arises out of, a collaboration between employees of
Asthmatx and Broncus that is approved and authorized in writing by an officer of Asthmatx and an officer of Broncus; 
 (ii) such trade
secret or proprietary information (A) is developed as a result of, or in the course of, either Asthmatx or Broncus providing Contract Services (as defined below) to the other during the Sharing Period or (B) is required to be used to
enable Asthmatx or Broncus to provide Contract Services to the other during the Sharing Period; or 
 (iii) such trade secret or proprietary
information is identified as Asthmatx Future IP in a written instrument executed by Asthmatx’s Chief Executive Officer or President (or equivalent) that is delivered to Broncus by Asthmatx and has been approved by Asthmatx’s Board of
Directors. 
 1.5 “Broncus Existing IP” means, collectively, the following assets and properties of Broncus: 
 (a) all those Patents that are listed on Exhibit B attached hereto, which comprise all of the Patents owned by Broncus on the Effective Date
(collectively, the “Existing Broncus Patents”), each of which has an actual filing date prior to the Effective Date (as indicated on Exhibit B); 
 (b) any and all of the copyrightable works owned by Broncus on the Effective Date; and 
  

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portions pursuant to an application for confidential treatment sent to the Securities and Exchange Commission. 
 2 

 (c) any and all trade secrets and proprietary information owned by Broncus on the Effective Date.

 For purposes of clarification, the parties acknowledge and agree that the Existing Broncus Patents do not include any of the
Patents listed on Exhibit A hereto as “Existing Asthmatx Patents” which Broncus has assigned and contributed to Asthmatx but with respect to which such assignment has not yet been recorded with applicable governmental or patent authorities

 1.6 “Broncus Field” shall mean, and shall be limited to, the field consisting of devices and procedures for providing
emphysema therapy. 
 1.7 “Broncus Future IP” means, collectively, and is limited to, the following: 
 (a) Patents (including but not limited to Improvement Patents as defined in Section 4 below) that (i) have an actual filing date that occurs
within and during the Sharing Period and (ii) are owned by Broncus or assigned to Broncus (collectively, “Future Broncus Patents”); provided however, that notwithstanding the foregoing, unless otherwise
expressly agreed by Broncus in writing, the term “Future Broncus Patents” shall not include any Patents that Broncus may acquire from a third party after the Effective Date pursuant to: (i) a purchase of such Patents by Broncus
or an Affiliate of Broncus (where, for purposes of this clause (i), the assignment of a Patent to Broncus by an employee or consultant of Broncus in connection with services performed by such employee or consultant for Broncus will not be
deemed to be a “purchase” of such Patent by Broncus); or (ii) a merger or consolidation of Broncus or an Affiliate of Broncus with such third party or an Affiliate of such third party; and 
 (b) trade secrets and proprietary information developed during the Sharing Period and owned by Broncus, but only if and to the extent that:

 (i) such trade secret or proprietary information is developed as a result of, or arises out of, a collaboration between employees of
Asthmatx and Broncus that is approved and authorized in writing by an officer of Asthmatx and an officer of Broncus; 
 (ii) such trade
secret or proprietary information is (A) developed as a result of, or in the course of, either Asthmatx or Broncus providing Contract Services to the other during the Sharing Period or (B) necessary to be used to enable Asthmatx or Broncus
to provide Contract Services to the other during the Sharing Period; or 
 (iii) such trade secret or proprietary information is identified
as Broncus Future IP in a written instrument executed by Broncus’ Chief Executive Officer or President (or equivalent) that is delivered to Asthmatx by Broncus and has been approved by Broncus’ Board of Directors. 
 1.8 “Change In Control Transaction” shall mean, with respect to Broncus or Asthmatx, as applicable: (a) the consummation of any
statutory merger or consolidation of such party with or into one or more other corporations or other entities if the shareholders of such party immediately prior to such merger or consolidation (other than any such shareholder that is
an “Excluded Shareholder,” as defined below) do not together own, immediately after consummation of such merger or consolidation, voting securities of the Ultimate Survivor (as defined below) of such merger or consolidation
that possess at least a majority of the total voting 

  

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portions pursuant to an application for confidential treatment sent to the Securities and Exchange Commission. 
 3 

 
power (as defined below) of all the voting stock and other voting securities of such Ultimate Survivor that are outstanding immediately after such merger or
consolidation; (b) the sale or exchange by shareholders of such party, in a single transaction or in a series of related transactions, of outstanding shares of such party’s capital stock that together possess more than fifty percent
(50%) of the voting power of all outstanding shares of such party’s capital stock; or (c) the sale or other disposition (whether in a single transaction or in a series of related transactions) of all or substantially of such
party’s assets and properties. As used in this Section, the “Ultimate Survivor” of a merger or consolidation means the corporation or other entity that is the survivor of such merger or consolidation, unless its stock is not
publicly traded and fifty percent (50%) or more of its outstanding stock or other ownership interest is ultimately owned, directly or indirectly, by another corporation or other entity (“Parent Entity”), in which case the term
“Ultimate Survivor” shall instead mean such Parent Entity. With respect to any merger or consolidation involving either Broncus or Asthmatx as described in clause (a) of this Section 1.8, the term “Excluded
Shareholder” means any shareholder of such party that: (i) merges or consolidates with such party in such merger or consolidation; (ii) owns or controls a majority of the voting power of another corporation or other entity
that merges or consolidates with such party in such merger or consolidation; or (iii) is directly or indirectly Controlled by, Controls, or is under common Control with, the Ultimate Survivor of such merger or consolidation. 
 1.9 “Confidential Information” shall have the meaning set forth for such term in Section 11 below. 
 1.10 “Contract Services” means manufacturing or other services provided by Asthmatx or Broncus to the other pursuant to a written
agreement between them that is entered into prior to or during the Sharing Period. 
 1.11 “Control” (including
“Controlled,” “Controls” and other forms) shall mean, as to an entity, direct or indirect ownership of more than fifty percent (50%) of the voting interest in the entity in question. 
 1.12 “Joint Invention” shall mean any patentable invention, idea, process, method, composition of matter, computer software program or
database, which, in connection with the parties’ performance under a joint effort pursuant to, and as defined by, a written agreement executed by each of Asthmatx and Broncus (other than this Agreement), is jointly invented, as determined under
United States patent law, by at least one (1) Broncus employee or person contractually required to assign or license patent rights covering such invention to Broncus and at least one (1) Asthmatx employee or person contractually required
to assign or license patent rights covering such invention to Asthmatx. 
 1.13 “Ntero License Agreement” shall mean that
certain License Agreement dated as of March 29, 2001 between Broncus and Ntero Surgical, Inc., a Delaware corporation (“Ntero”) pursuant to which Ntero has licensed Broncus under certain patents and other technology owned by
Ntero relating to the use of thermal energy in modulating the healing response in biological tissues. 
 1.14 “Patents” for
the purposes of this Agreement shall mean, collectively, in any jurisdiction throughout the world: (a) all patents, patent applications, provisional applications, design patents, design patent applications, and applications under the Patent
Cooperation Treaty and any certificates of invention issued thereon; (b) any and all renewals, divisions, continuations, continued prosecution applications or continuations-in-part of any patents, certificates and 

  

 **** Certain portions of this exhibit have been omitted and confidential treatment has been requested for these omitted
portions pursuant to an application for confidential treatment sent to the Securities and Exchange Commission. 
 4 

 
applications described in clause (a) of this Section 1.14, and any and all certificates of invention issuing thereon; (c) any and all
reissues, reexaminations, extensions, continuations, divisions, renewals, substitutions, confirmations, registrations, revalidations, revisions, and any foreign counterparts of any of the foregoing described in clause (a) and/or clause
(b) of this Section 1.14; and (d) any and all inventions and claims that are the subject of, or are contained or set out in, any of the foregoing described in clauses (a), (b) and/or (c) of this Section 1.14.

 1.15 A “Qualified Public Offering” means, with respect to a party to this Agreement, a firm commitment
underwritten public offering pursuant to an effective registration statement filed under the Securities Act of 1933, as amended, covering the offer and sale of shares of such party’s common stock for the account of such party and/or any of its
shareholders in which the aggregate public offering price (before deduction of underwriters’ discounts and commissions) equals or exceeds Twenty Million Dollars ($20,000,000). 
 1.16 “Respective Field” shall mean, with respect to Broncus, the Broncus Field, and with respect to Asthmatx, the Asthmatx Field, and
collectively shall refer to and mean each party’s respective Field as defined herein. 
 1.17 “Sharing Period” shall
mean that period of time which begins on the Effective Date and which terminates and expires on the earliest to occur of the following dates or events: 
 (a) June 30, 2005; 
 (b) the first date upon which either Broncus or Asthmatx consummates a Change of
Control Transaction; 
 (c) the first date upon which either Broncus or Asthmatx closes and consummates a Qualified Public Offering;

 (d) the first date upon which the Sharing Period is explicitly terminated by the parties pursuant to a written agreement executed by both
Broncus and Asthmatx that is approved by the Board of Directors of Broncus and the Board of Directors of Asthmatx; or 
 (e) the first date
upon which the Sharing Period is terminated by a party to this Agreement pursuant to the provisions of Section 10 of this Agreement due to the material breach of this Agreement by the other party to this Agreement. 
 1.18 “**** Agreement” means that certain **** 
 2. GRANTS OF LICENSES 
 2.1 Broncus License Grant to Asthmatx. 
 (a) Grant. Subject to the terms and conditions of this Agreement, Broncus hereby grants to Asthmatx, a perpetual, irrevocable, royalty-free,
fully paid up and (except as otherwise expressly provided in Section 2.1(e) below) non-transferable and non-assignable license, limited to the Asthmatx Field, to develop, make, have made, reproduce, use, market, sell, have sold, license,
distribute, offer to sell, provide, perform, import or export, any product or service that is both (i) within the Asthmatx Field and (ii) which, in the absence of this license, would infringe any Broncus Existing IP and/or any Broncus
Future IP. 
  

 **** Certain portions of this exhibit have been omitted and confidential treatment has been requested for these omitted
portions pursuant to an application for confidential treatment sent to the Securities and Exchange Commission. 
 5 

 (b) Limited Exclusivity. The foregoing license granted by Broncus to Asthmatx under
Section 2.1(a) above will be exclusive to Asthmatx, but only to the following limited extent: (i) so long as the license granted to Asthmatx under Section 2.1(a) remains in effect,
Broncus will not itself exercise or practice within the Asthmatx Field any of the rights with respect to Broncus Existing IP that Broncus has granted to Asthmatx under Section 2.1(a); and (ii) so long as the license granted to Asthmatx
under Section 2.1(a) remains in effect, Broncus will not license any third party to any of the rights with respect to Broncus Existing IP or Broncus Future IP within the Asthmatx Field that Broncus has granted to Asthmatx under
Section 2.1(a). However, it is expressly acknowledged and agreed that nothing shall restrict or prevent Broncus from transferring or assigning any and all of its right, title and interest in and to this Agreement, any and all Broncus Existing
IP, Broncus Future IP or any other assets pursuant to, or in connection with (a) any merger or consolidation to which Broncus is a party or is a constituent corporation or (b) any sale or other disposition of all or substantially all of
Broncus’ assets, in either case so long as the survivor of such merger or consolidation or such acquiror or successor (as applicable) agrees, in a writing signed by such acquiror or successor, to be bound by, and to comply with, all
Broncus’ obligations under this Agreement and to assume all Broncus’ liabilities and obligations under this Agreement. 
 (c)
Ownership; Reservation of Rights. Asthmatx acknowledges and agrees that: (i) Broncus shall retain its ownership of all Broncus Existing IP and all Broncus Future IP, and all other assets of Broncus, subject only to the rights and
licenses expressly granted by Broncus to Asthmatx in this Section 2.1; (ii) except for the license rights expressly granted under this Section 2.1, no right, title, or interest is granted by Broncus to Asthmatx in, to or under any of
the Broncus Existing IP or any of the Broncus Future IP; and (iii) Asthmatx is not acquiring ownership of any asset or property of Broncus under this Agreement nor any right, title or interest (including but not limited to any license or
similar right) to any asset or property of Broncus other than the license rights in and to the Broncus Existing IP and Broncus Future IP expressly granted in this Section 2.1. In addition, Asthmatx acknowledges and agrees that Broncus retains,
and nothing herein shall prevent Broncus from itself exercising or practicing, any and all rights with respect to Broncus Existing IP or Broncus Future IP that Broncus has not expressly granted to Asthmatx hereunder including, but not limited to:
(i) the right to exercise, use and practice any and all Broncus Existing IP and/or Broncus Future IP for any purpose, application, use or function outside the Asthmatx Field; (ii) the right of Broncus to itself exercise, practice and use
any and all Broncus Future IP within the Asthmatx Field; and (iii) the right of Broncus to license any third party to any right or rights with respect to any Broncus Existing IP or Broncus Future IP that are (A) not expressly granted to
Asthmatx on an exclusive basis under this Agreement or (B) not within the Asthmatx Field. 
 (d) Sublicenses. Asthmatx shall be
entitled to sublicense third parties to exercise any of the rights that are licensed to Asthmatx under Section 2.1(a), provided that (i) such sublicense is restricted such that it can be exercised by the sublicensee only
within the Asthmatx Field and (ii) such sublicense cannot be assigned or otherwise transferred by the sublicensee, including but not limited to any transfer by operation of law. 
 (e) Restrictions on Transfer. The license and rights granted by Broncus to Asthmatx herein shall not be transferable or assignable by Asthmatx;
provided, however, that notwithstanding the foregoing, Asthmatx may transfer or assign the license and rights granted to Asthmatx by Broncus herein only as a whole and only: (i) to a corporation or other entity that
succeeds to all Asthmatx’s assets and liabilities by operation of law pursuant to a merger or consolidation in which Asthmatx is merged or consolidated with or into one or more other 

  

 **** Certain portions of this exhibit have been omitted and confidential treatment has been requested for these omitted
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 6 

 
corporations or entities, provided that such corporation or other entity first agrees with Broncus, in a writing signed by such corporation or other
entity, to be bound by and to comply with, all Asthmatx’s obligations under this Agreement and to assume all Asthmatx’s liabilities and obligations under this Agreement; or (ii) to a purchaser or acquiror who acquires all or
substantially all of Asthmatx’s assets in a single transaction; provided that such purchaser or acquiror first agrees with Broncus, in a writing signed by such purchaser or acquirer, to be bound by and to comply with, all Asthmatx’s
obligations under this Agreement and to assume all Asthmatx’s liabilities and obligations under this Agreement. 
 (f) Disclosure of
Certain Broncus Future IP. Subject to the confidentiality provisions of Section 11 of this Agreement, Broncus will disclose in confidence to Asthmatx any Broncus Future IP that is described in Section 1.7(b)(ii) above that may be
developed by Broncus. Such disclosure will be made within a reasonable time after such Broncus Future IP has been developed and reduced to practice. 
 2.2 Asthmatx License Grant to Broncus. 
 (a) Grant. Subject to the terms and conditions
of this Agreement, Asthmatx hereby grants to Broncus, a perpetual, irrevocable, royalty-free, fully paid up and (except as otherwise expressly provided in Section 2.2(e) below) non-transferable and non-assignable license, limited to the Broncus
Field, to develop, make, have made, reproduce, use, market, sell, have sold, license, distribute, offer to sell, provide, perform, import or export any product or service that is both (i) within the Broncus Field and (ii) which, in the
absence of this license, would infringe any Asthmatx Existing IP and/or any Asthmatx Future IP. 
 (b) Limited Exclusivity. The
foregoing license granted by Asthmatx to Broncus under Section 2.2(a) above will be exclusive to Broncus, but only to the following limited extent: (i) so long as the license granted to
Broncus under Section 2.2(a) remains in effect, Asthmatx will not itself exercise or practice within the Broncus Field any of the rights with respect to Asthmatx Existing IP that Asthmatx has granted to Broncus under Section 2.2(a); and
(ii) so long as the license granted to Asthmatx under Section 2.2(a) remains in effect, Asthmatx will not license any third party to any of the rights with respect to Asthmatx Existing IP or Asthmatx Future IP within the Broncus Field that
Asthmatx has granted to Broncus under Section 2.2(a). However, it is expressly acknowledged and agreed that nothing shall restrict or prevent Asthmatx from transferring or assigning any and all of its right, title and interest in and to this
Agreement, any and all Asthmatx Existing IP, Asthmatx Future IP or any other assets pursuant to, or in connection with (a) any merger or consolidation to which Asthmatx is a party or is a constituent corporation or (b) any sale or other
disposition of all or substantially all of Asthmatx’s assets, in either case so long as the survivor of such merger or consolidation or such acquiror or successor (as applicable) agrees, in a writing signed by such acquiror or successor, to be
bound by, and to comply with, all Asthmatx’s obligations under this Agreement and to assume all Asthmatx’s liabilities and obligations under this Agreement. 
 (c) Ownership; Reservation of Rights. Broncus acknowledges and agrees that: (i) Asthmatx shall retain its ownership of all Asthmatx Existing IP and all Asthmatx Future IP, and all other assets of Asthmatx,
subject only to the rights and licenses granted by Asthmatx to Broncus in this Section 2.2; (ii) except for the license rights expressly granted under this Section 2.2, no right, title, or interest is granted by Asthmatx to Broncus
in, to or under the Asthmatx Existing IP or any of the Asthmatx Future IP; and (iii) Broncus is not acquiring ownership of any asset or property of Asthmatx under this Agreement nor any right, title or 

  

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 7 

 
interest (including but not limited to any license or similar right) to any asset or property of Asthmatx other than the license rights in and to the
Asthmatx Existing IP and Asthmatx Future IP expressly granted in this Section 2.2. In addition, Broncus acknowledges and agrees that Asthmatx retains, and nothing herein shall prevent Asthmatx from itself exercising or practicing, any and all
rights with respect to Asthmatx Existing IP or Asthmatx Future IP that Asthmatx has not expressly granted to Broncus hereunder including, but not limited to: (i) the right to exercise, use and practice any and all Asthmatx Existing IP and/or
Asthmatx Future IP for any purpose, application, use or function outside the Broncus Field; (ii) the right of Asthmatx to itself exercise, practice and use any and all Asthmatx Future IP within the Broncus Field; and (iii) the right of
Asthmatx to license any third party to any right or rights with respect to any Asthmatx Existing IP or Asthmatx Future IP that are (A) not expressly granted to Broncus on an exclusive basis under this Agreement or (B) not within the
Broncus Field. 
 (d) Sublicenses. Broncus shall be entitled to sublicense third parties to exercise any of the rights that are
licensed to Broncus under Section 2.2(a), provided that (i) such sublicense is restricted such that it can be exercised by the sublicensee solely within the Broncus Field and (ii) such sublicense cannot be assigned or
otherwise transferred by the sublicensee, including but not limited to any transfer by operation of law. 
 (e) Restrictions on
Transfer. The license and rights granted by Asthmatx to Broncus herein shall not be transferable or assignable by Broncus; provided, however, that notwithstanding the foregoing, Broncus may transfer or assign the
license and rights granted to Broncus by Asthmatx herein only: (i) to a corporation or other entity that succeeds to all Broncus’ assets and liabilities by operation of law pursuant to a merger or consolidation in which Broncus is merged
or consolidated with or into one or more other corporations or entities, provided that such corporation or other entity first agrees with Asthmatx, in a writing signed by such corporation or other entity, to be bound by and to comply with,
all Broncus’ obligations under this Agreement and to assume all Broncus’ liabilities and obligations under this Agreement; or (ii) to a purchaser or acquiror who acquires all or substantially all of Broncus’ assets in a single
transaction; provided that such purchaser or acquiror first agrees with Asthmatx, in a writing signed by such purchaser or acquiror, to be bound by and to comply with, all Broncus’ obligations under this Agreement and to assume all
Broncus’ liabilities and obligations under this Agreement. 
 (f) Disclosure of Certain Asthmatx Future IP. Subject to the
confidentiality provisions of Section 11 of this Agreement, Asthmatx will disclose in confidence to Broncus any Asthmatx Future IP that is described in Section 1.7(b)(ii) that may be developed by Asthmatx. Such disclosure will be made
within a reasonable time after such Asthmatx Future IP has been developed and reduced to practice. 
 3. OTHER MATTERS 
 3.1 Ntero Sublicense. Concurrently with their execution of this Agreement, Broncus and Asthmatx will enter into a separate Sublicense Agreement in
the form attached hereto as Exhibit C, pursuant to which Broncus will sublicense Asthmatx to certain rights held by Broncus under its existing License Agreement with Ntero Surgical, Inc. 
 3.2 Agreements Regarding **** Agreement. Under Section **** of the **** Agreement, **** has agreed with **** not to **** and certain other parties
who are collectively referred to in Section **** of the **** Agreement as **** Parties”. In the event that **** 

  

 **** Certain portions of this exhibit have been omitted and confidential treatment has been requested for these omitted
portions pursuant to an application for confidential treatment sent to the Securities and Exchange Commission. 
 8 

 
should **** that would be a **** if it was made or **** Party (as defined in Section **** of the **** Agreement), then the parties will use good faith
efforts, to the extent reasonably practicable, to negotiate and attempt to establish a business relationship between themselves, on fair and commercially reasonable terms, with the objective of enabling **** to become a **** Party (within the
meaning of Section **** of the **** Agreement) able to enjoy the benefits of **** covenants and agreements in Section **** of the **** Agreement. 
 4.
IMPROVEMENT PATENTS 
 4.1 Improvement Patents. During the Sharing Period, a party to this Agreement (“Requesting
Party”) shall have the right to request to have filed, have prosecuted, and/or maintained, at the Requesting Party’s sole expense, additional continuing Patents (each, an “Improvement Patent”) based upon
(a) Broncus Existing IP and/or Broncus Future IP (if the Requesting Party is Asthmatx) or (b) Asthmatx Existing IP and/or Asthmatx Future IP (if the Requesting Party is Broncus). 
 4.2 Ownership of Improvement Patents. Ownership of an Improvement Patent that is based on or derived from Broncus Existing IP or Broncus
Future IP shall reside with Broncus. Ownership of an Improvement Patent that is based on or derived from Asthmatx Existing IP or Asthmatx Future IP shall reside with Asthmatx. 
 4.3 Prosecution of Improvement Patents. Unless otherwise agreed, the owner of an Improvement Patent (the “Owner Party”) shall
have the sole right and power to manage or direct prosecution of such Improvement Patent with reasonable direction from the Requesting Party. The Owner Party shall reasonably cooperate with the Requesting Party to execute such documents and provide
such assistance as is reasonably necessary to accomplish the foregoing, all at the Requesting Party’s sole expense. The Owner Party shall provide the Requesting Party with all material documentation and correspondence from, sent to or filed
with patent offices regarding such Improvement Patent and shall provide the Requesting Party with a reasonable opportunity to review and comment in advance upon all filings with such patent offices made with respect to such Improvement Patent. The
Requesting Party shall reasonably cooperate with and assist the Owner Party in connection with any filing, prosecution and maintenance activities undertaken by the Owner Party with respect to an Improvement Patent. 
 4.4 Failure to Maintain Improvement Patents. All services, costs, fees (including but not limited to maintenance fees, etc.) for an
Improvement Patent shall be directly paid or reimbursed by the Requesting Party. The Owner Party shall not take any action or inaction that results in the abandonment of the Improvement Patent unless required to do so by court order or the terms of
a bona fide settlement agreement. In the event the Requesting Party fails to directly pay or reimburse the Owner Party for any service, costs, fees, etc for an Improvement Patent, then (a) the Requesting Party shall thereafter no longer be
licensed under this Agreement to use or practice the inventions, technologies or claims that are the subject of such Improvement Patent, and (b) the Owner Party of such Improvement Patent shall have the option to maintain, prosecute or pursue
such Improvement Patent or to abandon and terminate prosecution and maintenance of such Improvement Patent, without the need for such Owner Party to comply with the provisions of Section 4.5, which shall be inapplicable to such abandonment of
such Improvement Patent. 
 4.5 Abandonment Notice. Except as otherwise provided in Section 4.4, the Owner Party shall give the
Requesting Party written notice (“Abandonment Notice”) of its intention to take or not take an action that results in the abandonment of any Improvement Patent 

  

 **** Certain portions of this exhibit have been omitted and confidential treatment has been requested for these omitted
portions pursuant to an application for confidential treatment sent to the Securities and Exchange Commission. 
 9 

 
(“Abandoned Improvement Patent”) that is under the scope of this Agreement. For this purpose, “abandonment” of an
Improvement Patent will include explicit abandonment thereof, the failure to pay fees (including maintenance fees) with respect thereto, failure to pay annuities, failure to take action required before the patent and trademark office with respect to
the Improvement Patent, and/or failure to continue prosecution of a pending application for such Improvement Patent. Such Abandonment Notice shall be in writing and shall be given to the Requesting Party at least three (3) months prior to the
date the Abandoned Improvement Patent would be considered “abandoned” by the respective patent office. The Requesting Party shall thereafter have the right (but not the obligation), at its option and expense, to prosecute and maintain such
Abandoned Improvement Patents. The Owner Party giving the Abandonment Notice shall reasonably cooperate with and assist the Requesting Party, at the Requesting Party’s sole expense, in connection with any filing, prosecution and maintenance
activities undertaken in accordance with this sub-section with respect to such Abandoned Improvement Patent. The Requesting Party receiving such Abandonment Notice agrees to consult with the Owner Party with respect to such filing, prosecution and
maintenance activities. 
 5. INTELLECTUAL PROPERTY OBLIGATIONS 
 5.1 Filing, Maintenance and Prosecution of Patents. Subject to the provisions of Section 4.5 and Section 5.3, each party shall have the right to file, prosecute and maintain all of such party’s
respective Patents. 
 5.2 Obligations Regarding Unpublished Applications. Neither party shall have any obligation to inform the other
of any patent applications, provisional applications, or applications under the Patent Cooperation Treaty so long as such items are unpublished. 
 5.3 Obligation Regarding Abandonment of Published Patents. Each party shall have an obligation to provide written notice (a “Section 5.3 Notice”) of their intent to take or not take an action that results in the
abandonment of any published Patent owned by that party under which the other party is licensed under this Agreement, other than Improvement Patents (“Abandoned Patent”). Abandonment includes explicit abandonment,
failure to pay fees, failure to pay annuities, failure to take action required before the patent and trademark office, and/or failure to continue prosecution of a pending application. Such Section 5.3 Notice shall be provided at least three
(3) months prior to the date the Patent would be considered abandoned by the respective patent office. The party receiving the Section 5.3 Notice shall have the right but not the obligation, at its sole option and expense, to prosecute and
maintain such Abandoned Patent. The party providing such Section 5.3 Notice shall reasonably cooperate with and assist the other party in connection with any filing, prosecution and maintenance activities undertaken in accordance with this
Section. The party receiving such Section 5.3 Notice agrees to consult with the other with respect to such filing, prosecution and maintenance activities. 
 6. TRADE SECRETS, PROPRIETARY INFORMATION; JOINT INVENTIONS 
 6.1 Post-Effective Date Trade Secrets. Neither party
shall have any obligation to disclose any trade secrets or proprietary information that it develops during the Sharing Period except (a) in the case of Broncus, to the extent such trade secret or proprietary information is required to be
disclosed by Broncus pursuant to the provisions of Section 2.1(f); and (b) in the case of Asthmatx, to the extent such trade secret or proprietary information is required to be disclosed by Asthmatx pursuant to the provisions of
Section 2.2(f). 
  

 **** Certain portions of this exhibit have been omitted and confidential treatment has been requested for these omitted
portions pursuant to an application for confidential treatment sent to the Securities and Exchange Commission. 
 10 

 6.2 Joint Development: Maintenance and Prosecution. Ownership of any Joint Invention shall
be determined in accordance with a separate agreement entered into by Broncus and Asthmatx governing the terms of the joint development. 
 7. ENFORCEMENT

 7.1 No Duty to Enforce. This Agreement does not impose any obligation on Broncus to enforce any Broncus Existing IP or any
Broncus Future IP against any third party or parties party at the request of Asthmatx or otherwise, or to be joined as a party to any action by Asthmatx to enforce any Broncus Existing IP or any Broncus Future IP against a third party. This
Agreement does not impose any obligation on Asthmatx to enforce any Asthmatx Existing IP or any Asthmatx Future IP against any third party or parties at the request of Broncus or otherwise, or to be joined as a party to any action by Broncus to
enforce any Asthmatx Existing IP or any Asthmatx Future IP against a third party. 
 7.2 Right to Bring Infringement Action. Each
party shall have the right, but not the obligation, at its sole option and discretion, to initiate and maintain legal action against any infringement of its Existing IP or its Future IP and/or Improvement Patents owned by that party
(“Enforcing Party”). The other party to this Agreement shall have no claim or right to any recovery obtained by the Enforcing Party, whether by judgment, award, decree or settlement. 
 8. REPRESENTATIONS, WARRANTIES AND COVENANTS 
 8.1
Representations, Warranties and Covenants of Broncus. Broncus represents and warrants to Asthmatx that, as of the Effective Date: 
 (a) The execution, delivery and performance of this Agreement by Broncus have been duly authorized by all necessary corporate action on the part of Broncus; 
 (b) Broncus has not granted any right, license or interest in, to or under the Broncus Existing IP or Broncus Future IP that is in conflict with, or that is inconsistent with, the rights and licenses granted by
Broncus to Asthmatx in this Agreement; and 
 (c) To the best of Broncus’ knowledge, without investigation of any particular matter,
there are no actions, suits, investigations, claims or proceedings, either pending or threatened, relating to the Broncus Existing IP. 
 8.2 Representations, Warranties and Covenants of Asthmatx. Asthmatx represents, warrants and covenants that, as of the Effective Date: 
 (a) The execution, delivery and performance of this Agreement by Asthmatx have been duly authorized by all necessary corporate action on the part of Asthmatx; 
 (b) Asthmatx has not granted any right, license or interest in, to or under the Asthmatx Existing IP or Asthmatx Future IP that is in conflict with, or
that is inconsistent with, the rights and licenses granted by Asthmatx to Broncus under this Agreement; and 
 (c) To the best of
Asthmatx’s knowledge, without investigation of any particular matter, there are no actions, suits, investigations, claims or proceedings, either pending or threatened, relating to the Asthmatx Existing IP. 
  

 **** Certain portions of this exhibit have been omitted and confidential treatment has been requested for these omitted
portions pursuant to an application for confidential treatment sent to the Securities and Exchange Commission. 
 11 

 8.3 Disclaimer of Warranties. EXCEPT AS EXPRESSLY SET FORTH IN SECTION 8.1 OR SECTION 8.2 OF THIS
AGREEMENT, NEITHER PARTY MAKES, AND EACH PARTY HEREBY AFFIRMATIVELY AND EXPRESSLY DISCLAIMS, ANY AND ALL REPRESENTATIONS AND WARRANTIES OF ANY KIND, WHETHER EXPRESS OR IMPLIED, WITH RESPECT TO THE SUBJECT MATTER OF THIS AGREEMENT, INCLUDING WITHOUT
LIMITATION, WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND NON-INFRINGEMENT. 
 8.4 No Intellectual Property Warranty
or Representations. Each party is providing license rights to the other on an “as is” basis without warranty. Neither party is making any express or implied warranty to the other (including but not limited to any warranty of
non-infringement) regarding its Existing IP or Future IP. 
 9. NO OBLIGATION FOR SERVICES 
 Nothing in this Agreement shall obligate any party hereto to provide any manufacturing or other Contract Services or any other services to the other
party. Neither party shall have any obligation to perform services for the other party not expressly contemplated by this Agreement except as may be provided in a separate written agreement executed by both Broncus and Asthmatx. 
 10. TERM AND TERMINATION 
 10.1 Term. Subject
to earlier termination of this Agreement pursuant to Section 10.3 below, this Agreement and the licenses granted herein will remain in effect with respect to any intellectual property licensed hereunder until that intellectual property has
expired (such as, for example, with an expired patent) or otherwise ceased to be legally protectable (such as, for example, a trade secret which is put in the public domain by its owner). 
 10.2 Termination of the Sharing Period. Except as provided in Section 10.3 below, termination of the Sharing Period will not, in and of
itself, terminate this Agreement. 
 10.3 Termination of Agreement and Sharing Period. If a party to this Agreement
(“Breaching Party”) materially breaches this Agreement, then the other party (the “Terminating Party”) may give the Breaching Party written notice of such breach, setting forth the nature of such breach in
reasonable detail. If the Breaching Party fails to cure such breach within thirty (30) days of its receipt of such notice of breach from the Terminating Party, then the Terminating Party may, at its option, either (i) terminate this
Agreement or (ii) terminate only the Sharing Period, effective immediately upon giving the Breaching Party a written notice of termination. .Nothing in this Section 10 is intended to limit any other rights or remedies that a party to this
Agreement may have at law or equity for a breach of this Agreement by the other party. 
 11. CONFIDENTIAL INFORMATION 
 11.1 Confidentiality. In connection with this Agreement, the parties will provide to each other certain Confidential Information, including but not
limited to each party’s know-how, invention disclosures, proprietary materials and/or technologies, trade secrets and material embodiments thereof. As used herein, “Confidential Information” means (a) any information of a
confidential or proprietary nature disclosed by a party to this Agreement to the other party (i) in written form marked “confidential,” or (ii) in oral form if summarized in a writing marked 

  

 **** Certain portions of this exhibit have been omitted and confidential treatment has been requested for these omitted
portions pursuant to an application for confidential treatment sent to the Securities and Exchange Commission. 
 12 

 
“confidential” delivered to the receiving party within thirty (30) days after the oral disclosure and (b) any non-public information
regarding a disclosing party’s Existing IP or Future IP that a reasonable person familiar with the disclosing party’s business would reasonably expect to be confidential or proprietary information. 
 11.2 Confidentiality and Non-Use. The recipient of a disclosing party’s Confidential Information shall maintain such Confidential
Information in confidence, and shall disclose such Confidential Information only to its employees, agents, consultants, Affiliates, sublicensees, attorneys’, accountants and advisors who have a reasonable need to know such Confidential
Information and who are bound by obligations of confidentiality and non-use no less restrictive then those set forth herein or (in the case of attorneys) have fiduciary duties of confidentiality. The recipient of the disclosing party’s
Confidential Information shall use such Confidential Information solely to exercise its rights and perform its obligations under this Agreement (including, without limitation, the right to use and disclose such Confidential Information in regulatory
applications and filings contemplated by this Agreement), unless otherwise mutually agreed in writing. The recipient of the other party’s Confidential Information shall take the same degree of care that it uses to protect its own confidential
and proprietary information of a similar nature and importance (but in any event no less than reasonable care). Notwithstanding the foregoing, each party may disclose only the terms of this agreement to bona fide investors, merger partners, or
funding sources in connection with due diligence activities. 
 11.3 Exclusions. Confidential Information shall not include
information that: (a) is in the recipient’s possession prior to receipt from the disclosing party (it being understood however, that no information shall be disqualified from being Confidential Information of party solely because such
information may have been in the possession of an employee of Broncus or Asthmatx on or prior to December 30, 2003 as a result of such employee’s employment with Broncus on or prior to December 30, 2003); (b) is or becomes,
through no fault of the recipient, publicly known; (c) is furnished to the recipient by a third party without breach of a duty to the disclosing party; (d) is independently developed by the recipient without use of, application of or
reference to the disclosing party’s Confidential Information. 
 11.4 Legally Mandated Disclosures. It shall not be a violation
of this Section 11 to disclose Confidential Information required to be disclosed under applicable law, including applicable securities law, but such disclosure shall be only for the sole purpose of and solely to the extent required by such law,
provided that the recipient, to the extent possible, shall give the disclosing party prior written notice of the proposed disclosure and cooperate fully with the disclosing party to minimize the scope of any such required disclosure, to the
extent possible and in accordance with applicable law. 
 11.5 Publication. Neither party will publish or otherwise disclose
(except subject to appropriate confidentiality agreements) any Confidential Information regarding the other’s technology, Existing IP or Future IP that is covered under this Agreement without the prior written approval from the other party,
which approval will not be unreasonably withheld. 
 12. MISCELLANEOUS 
 12.1 Governing Law. This Agreement shall be governed by, and construed and interpreted in accordance with, the internal laws of the State of California without giving effect to any choice of law rule that would
cause the application of the laws of any jurisdiction other than the internal laws of the State of California to the rights and duties of the parties under this Agreement. 
  

 **** Certain portions of this exhibit have been omitted and confidential treatment has been requested for these omitted
portions pursuant to an application for confidential treatment sent to the Securities and Exchange Commission. 
 13 

 12.2 Limitation of Liability. EXCEPT WITH RESPECT TO EACH PARTY’S CONFIDENTIALITY OBLIGATIONS
UNDER SECTION 11, IN NO EVENT SHALL EITHER PARTY BE LIABLE FOR INCIDENTAL, CONSEQUENTIAL, INDIRECT, PUNITIVE OR SPECIAL DAMAGES OF THE OTHER PARTY ARISING OUT OF OR RELATED TO THIS AGREEMENT, HOWEVER CAUSED, UNDER ANY THEORY OF LIABILITY.

 12.3 Force Majeure. Neither party shall be held responsible for any delay or failure in performance hereunder caused by strikes,
embargoes, unexpected government requirements, civil or military authorities, acts of God, earthquake, or by the public enemy or other causes reasonably beyond such party’s control and without such party’s fault or negligence;
provided that the affected party notifies the unaffected party as soon as reasonably possible, and resumes performance hereunder as soon as reasonably possible following cessation of such force majeure event. 
 12.4 Notices. Any notice, report, communication or consent required or permitted by this Agreement shall be in writing and shall be sent
(a) by prepaid registered or certified mail, return receipt requested, (b) by overnight express delivery service by a nationally recognized courier, or (c) via confirmed facsimile or telecopy, followed within five (5) days by a
copy mailed in the preceding manner, addressed to the other party at the address shown below or at such other address for which such party gives notice hereunder. Such notice will be deemed to have been given when delivered or, if delivery is not
accomplished by some fault of the addressee, when tendered. 
 If to Broncus: 
 Broncus Technologies, Inc. 
 1400 N. Shoreline Blvd. 
 Bldg. A, Suite 8 
 Mountain View, CA 94043

 Facsimile: (650) 428-1542 
 If to
Asthmatx: 
 Asthmatx, Inc. 
 1340
Space Park Way 
 Mountain View, CA 94043 
 Facsimile: (650) 810-1112 
 12.5 Modification; Waiver. This Agreement may not be altered, amended or modified in any
way except by a writing signed by both Broncus and Asthmatx. The failure of a party to enforce any rights or provisions of the Agreement shall not be construed to be a waiver of such rights or provisions, or a waiver by such party to thereafter
enforce such rights or provision or any other rights or provisions hereunder. No waiver shall be effective unless made in writing and signed by the waiving party. 
  

 **** Certain portions of this exhibit have been omitted and confidential treatment has been requested for these omitted
portions pursuant to an application for confidential treatment sent to the Securities and Exchange Commission. 
 14 

 12.6 Severability. If any provision of this Agreement shall be found by a court to be void,
invalid or unenforceable, the same shall be modified to comply with applicable law or stricken if not so conformable, so as not to affect the validity or enforceability of this Agreement; provided that no such reformation or striking
shall be effective if the result materially changes the economic benefit of this Agreement to either Broncus or Asthmatx. In the event that any provision of this Agreement becomes or is declared by a court of competent jurisdiction to be void,
invalid or unenforceable, and reformation or striking of such provision would materially change the economic benefit of this Agreement to either Broncus or Asthmatx, Broncus and Asthmatx shall modify such provision in accordance with this
Section 12.6 to obtain a legal, valid and enforceable provision and provide an economic benefit to Broncus and Asthmatx that most nearly effects Broncus’ and Asthmatx’ intent on entering into this Agreement. 
 12.7 Entire Agreement. The parties hereto acknowledge that this Agreement, together with the exhibits attached hereto, set forth the entire
agreement and understanding of the parties hereto as to the subject matter hereof, and supersedes all prior and contemporaneous discussions, agreements and writings in respect hereto. 
 12.8 Headings. The article, section and paragraph headings contained herein are for the purposes of convenience only and are not intended to
define or limit the contents of the articles, sections or paragraphs to which such headings apply. 
 12.9 Counterparts. This
Agreement may be executed in two or more counterparts, each of which shall be deemed an original and all of which together shall constitute one instrument. 
 IN WITNESS WHEREOF, Broncus and Asthmatx have each executed this Cross License Agreement by their respective duly authorized representatives. 
  

									
	ASTHMATX, INC	 		 	BRONCUS TECHNOLOGIES, INC.
					
	By:	 	 /s/ Glen French
	 		 	By:	 	 /s/ Cary Cole

		 	Glen French, Chief Executive Officer	 		 		 	Cary Cole, President

 Attachments: 
  

			
	Exhibit A:	 	Existing Asthmatx Patents
	Exhibit B:	 	Existing Broncus Patents
	Exhibit C:	 	Sublicense Agreement

  

 **** Certain portions of this exhibit have been omitted and confidential treatment has been requested for these omitted
portions pursuant to an application for confidential treatment sent to the Securities and Exchange Commission. 
 15 

 EXHIBIT A 
 Existing Asthmatx Patents 
  

											
	 Docket Number
	  	 Case Type
	  	 Application
 Number
	 	Application
Date	 	 Patent
 Number
	  	 Title

	 43571-20001.00
	  	Regular	  	08/833,550	 	04/07/97	 	6,273,907 B1	  	BRONCHIAL STENTER\n
						
	 43571-20001.01
	  	Regular	  	10/232,909	 	08/30/02	 		  	METHOD OF INCREASING GAS EXCHANGE OF A LUNG\n
						
	 43571-20001.10
	  	Regular	  	09/176,899	 	10/22/98	 	6,299,633 B1	  	BRONCHIAL STENTER\n
						
	 43571-20001.11
	  	Regular	  	09/280,672	 	03/29/99	 	6,283,989 B1	  	METHOD OF TREATING A BRONCHIAL TUBE WITH A BRONCHIAL\nSTENTER HAVING DIAMETRICALLY ADJUSTABLE ELECTR
						
	 ****
	  	****	  	****	 	****	 		  	****
						
	 43571-20001.13
	  	Regular	  		 		 		  	METHOD OF INCREASING GAS EXCHANGE OF A LUNG\n
						
	 43571-20001.20
	  	Regular	  	08/994,064	 	12/19/97	 	6,083,255	  	BRONCHIAL STENTER\n
						
	 43571-20001.21
	  	Regular	  	09/003,750	 	01/07/98	 	5,972,026	  	BRONCHIAL STENTER HAVING DIAMETRICALLY ADJUSTABLE ELECTRODES\n
						
	 43571-20001.22
	  	Regular	  	09/224,937	 	12/31/98	 	6,200,333 B1	  	BRONCHIAL STENTER\n
						
	 43571-20001.23
	  	Regular	  	09/260,401	 	03/01/99	 	6,283,988 B1	  	BRONCHIAL STENTER HAVING EXPANDABLE ELECTRODES\n
						
	 ****
	  	****	  		 		 		  	****
						
	 43571-20001.25
	  	Regular	  	09/349,715	 	07/08/99	 	6,488,673 B1	  	METHOD OF INCREASING GAS EXCHANGE OF A LUNG\n
						
	 43571-20002.00
	  	Regular	  	08/887,206	 	07/02/97	 	5,957,919	  	BLEB REDUCER\n
						
	 43571-20009.00
	  	Regular	  	09/095,323	 	06/10/98	 		  	METHOD AND MEANS FOR TREATMENT OF PULMONARY MUSCLES\n
						
	 43571-20009.01
	  	Regular	  	10/414,253	 	04/14/03	 		  	MODIFICATION OF AIRWAYS BY APPLICATION OF ENERGY

											
	 Docket Number
	  	 Case Type
	  	 Application
 Number
	  	Application
Date	  	 Patent
 Number
	  	 Title

	 43571-20009.02
	  	Regular	  	10/414,411	  	04/14/03	  		  	CONTROL SYSTEM AND PROCESS FOR APPLICATION OF ENERGY TO AIRWAY WALLS AND OTHER MEDIUMS
						
	 43571-20009.20
	  	Regular	  	09/296,040	  	04/21/99	  	6,411,852	  	MODIFICATION OF AIRWAYS BY APPLICATION OF ENERGY\n
						
	 43571-20009.21
	  	Regular	  	09/436,455	  	11/08/99	  		  	DEVICES FOR MODIFICATION OF AIRWAYS BY TRANSFER OF ENERGY\n
						
	 43571-20009.22
	  	Regular	  	09/535,856	  	03/27/00	  	6,634,363	  	METHODS OF TREATING LUNGS HAVING REVERSIBLE OBSTRUCTIVE PULMONARY DISEASE
						
	 43571-20009.23
	  	Regular	  	09/999,851	  	10/25/01	  		  	METHOD FOR TREATING AN ASTHMA ATTACK\n
						
	 A-004-001
	  	Regular	  	10/640,967	  	08/13/03	  		  	METHODS OF TREATING LUNGS HAVING REVERSIBLE OBSTRUCTIVE PULMONARY DISEASE
						
	 43571-20002.41
	  	Australia	  	8287198	  	07/02/98	  	730013	  	
						
	 43571-20002.42
	  	Japan	  	11507425	  	07/02/98	  		  	
						
	 43571-20002.43
	  	European Patent Convention	  	989331392	  	07/02/98	  	998233	  	
						
	 43571-20009.43
	  	Australia	  	PCT/US99/12986	  	06/09/99	  		  	
						
	 43571-20009.44
	  	Japan	  	2000553172	  	06/09/99	  		  	
						
	 43571-20009.45
	  	European Patent Convention	  	PCT/US99/12986	  	06/09/99	  		  	
						
	 43571-20009.47
	  	Australia	  	4800700	  	04/21/00	  		  	
						
	 43571-20009.48
	  	Canada	  	2370223	  	04/21/00	  		  	
						
	 43571-20009.49
	  	Japan	  	2000611838	  	04/21/00	  		  	
						
	 43571-20009.50
	  	European Patent Convention	  	9301318	  	04/21/00	  		  	

  

 **** Certain portions of this exhibit have been omitted and confidential treatment has been requested for these omitted
portions pursuant to an application for confidential treatment sent to the Securities and Exchange Commission. 
 17 

											
	 Docket Number
	  	 Case Type
	  	 Application
 Number
	  	Application
Date	  	 Patent
 Number
	  	 Title

	 43571-20009.54
	  	Canada	  	2426167	  	10/17/01	  		  	
						
	 43571-20009.55
	  	Japan	  	2002-535572	  	10/17/2001	  		  	
						
	 43571-20009.56
	  	European Patent Convention	  	1979858.6	  	10/17/2001	  		  	
						
	 43571-20009.58
	  	Canada	  	2426144	  	10/17/2000	  		  	
						
	 43571-20009.59
	  	European Patent Convention	  	973613.3	  	10/17/2000	  		  	

  

 **** Certain portions of this exhibit have been omitted and confidential treatment has been requested for these omitted
portions pursuant to an application for confidential treatment sent to the Securities and Exchange Commission. 
 18 

 EXHIBIT B 
 Existing Broncus Patents 
  

											
	 Docket Number
	  	 Case Type
	  	 Application
 Number
	  	Application
Date	  	 Patent
 Number
	  	 Title

	 43571-20010.00
	  	Regular	  	09/680,645	  	10/06/00	  	6,514,290 B1	  	LUNG ELASTIC RECOIL RESTORING OR TISSUE COMPRESSING DEVICE AND METHOD\n
						
	 43571-20011.00
	  	Regular	  	09/092,727	  	06/05/98	  	6,174,323B1	  	METHOD AND ASSEMBLY FOR LUNG VOLUME REDUCTION\n
						
	 43571-20011.20
	  	Regular	  	09/576,786	  	05/23/00	  	6,599,311	  	METHOD AND ASSEMBLY FOR LUNG VOLUME REDUCTION\n
						
	 43571-20032.00
	  	Regular	  	09/633,651	  	08/07/00	  		  	METHODS AND DEVICES FOR CREATING COLLATERAL CHANNELS IN THE LUNGS\n
						
	 43571-20032.01
	  	Regular	  	09/908,087	  	07/18/01	  		  	DEVICES FOR CREATING COLLATERAL CHANNELS IN THE LUNGS\n
						
	 43571-20032.02
	  	Regular	  	09/908,008	  	07/18/01	  	6,629,951	  	DEVICES FOR CREATING COLLATERAL CHANNELS IN THE LUNGS\n
						
	 43571-20032.03
	  	Regular	  	09/908,177	  	07/18/01	  		  	CONDUITS FOR MAINTAINING OPENINGS IN TISSUE\n
						
	 43571-20033.00
	  	Regular	  	09/947,144	  	09/04/01	  		  	DEVICES AND METHODS FOR MAINTAINING COLLATERAL CHANNELS IN TISSUE\n
						
	 43571-20034.00
	  	Regular	  	10/235,240	  	09/04/02	  		  	CONDUITS HAVING DISTAL CAGE STRUCTURE FOR MAINTAINING\nCOLLATERAL CHANNELS IN TISSUE AND RELATED MET
						
	 43571-20035.00
	  	Regular	  	09/946,706	  	09/04/01	  		  	DEVICES FOR CREATING COLLATERAL CHANNELS\n
						
	 43571-20035.20
	  	Regular	  	10/080,344	  	02/21/02	  		  	DEVICES FOR APPLYING ENERGY TO TISSUE\n
						
	 43571-20035.21
	  	Regular	  	10/079,605	  	02/21/02	  		  	DEVICES FOR APPLYING ENERGY TO TISSUE\n

  

 **** Certain portions of this exhibit have been omitted and confidential treatment has been requested for these omitted
portions pursuant to an application for confidential treatment sent to the Securities and Exchange Commission. 
 19 

											
	 Docket Number
	  	 Case Type
	  	 Application
 Number
	 	Application
Date	 	 Patent
 Number
	  	 Title

	 43571-20035.22
	  	Regular	  	10/280,851	 	10/25/02	 		  	DEVICES FOR APPLYING ENERGY TO TISSUE\n
						
	 43571-20036.00
	  	Regular	  	09/947,126	 	09/04/01	 		  	DEVICES FOR CREATING COLLATERAL CHANNELS\n
						
	 43571-20037.00
	  	Regular	  	10/615,491	 	07/07/03	 		  	EXTRAPLEURAL AIRWAY DEVICE AND METHOD\n
						
	 43571-20038.00
	  	Regular	  	10/458,085	 	06/09/03	 		  	METHODS AND DEVICES FOR MAINTAINING PATENCY OF SURGICALLY CREATED CHANNELS IN TISSUE\n
						
	 E-001-004
	  	Regular	  	10/633,902	 	08/04/03	 		  	METHODS AND DEVICES FOR CREATING COLLATERAL CHANNELS IN THE LUNGS
						
	 ****
	  	****	  		 		 		  	****
						
	 E-008-000-P
	  	Provisional Filing	  	60/488,332	 	07/18/03	 		  	DEVICES FOR MAINTAINING PATENCY OF SURGICALLY CREATED CHANNELS IN TISSUE
						
	 P-003-000
	  	Regular	  	10/628,971	 	07/28/03	 		  	METHOD AND ASSEMBLY FOR LUNG VOLUME REDUCTION\n
						
	 ****
	  	****	  		 		 		  	****
						
	 ****
	  	****	  	****	 	****	 		  	****
						
	 ****
	  	****	  	****	 	****	 		  	
						
	 ****
	  	****	  	****	 	****	 		  	
						
	 43571-20032.42
	  	European Patent Convention	  	11137361	 	08/07/00	 		  	
						
	 43571-20032.43
	  	Australia	  	6530800	 	08/07/00	 		  	
						
	 43571-20032.44
	  	Canada	  	2393898	 	08/07/00	 		  	
						
	 43571-20032.45
	  	Japan	  	2001514843	 	08/07/00	 		  	
						
	 43571-20032.46
	  	Patent Cooperation Treaty	  	PCT/US03/12323	 	04/21/03	 		  	
						
	 43571-20032.47
	  	Patent Cooperation Treaty	  	PCT/US03/15609	 	05/16/03	 		  	

  

 **** Certain portions of this exhibit have been omitted and confidential treatment has been requested for these omitted
portions pursuant to an application for confidential treatment sent to the Securities and Exchange Commission. 
 20 

											
	 Docket Number
	  	 Case Type
	  	 Application
 Number
	  	Application
Date	  	 Patent
 Number
	  	 Title

	 43571-20033.40
	  	Patent Cooperation Treaty	  	PCT/US02/04610	  	02/14/02	  		  	
						
	 43571-20034.40
	  	Patent Cooperation Treaty	  	PCT/US02/28237	  	09/04/02	  		  	
						
	 43571-20035.40
	  	Patent Cooperation Treaty	  	PCT/US02/04612	  	02/14/02	  		  	
						
	 43571-20035.41
	  	Patent Cooperation Treaty	  	PCT/US03/04970	  	02/21/03	  		  	
						
	 43571-20035.42
	  	Patent Cooperation Treaty	  	PCT/US03/04971	  	02/21/03	  		  	
						
	 43571-20036.40
	  	Patent Cooperation Treaty	  	PCT/US02/04494	  	02/14/02	  		  	
						
	 43571-20038.40
	  	Patent Cooperation Treaty	  	PCT/US03/18182	  	06/09/03	  		  	

  

 **** Certain portions of this exhibit have been omitted and confidential treatment has been requested for these omitted
portions pursuant to an application for confidential treatment sent to the Securities and Exchange Commission. 
 21 

 Exhibit C 
 SUBLICENSE AGREEMENT 
 THIS SUBLICENSE AGREEMENT (this “Agreement”) is made
and entered into effective as of December 30, 2003 (the “Effective Date”) by and between Broncus Technologies, Inc., a California corporation having its principal place of business at 1400 N. Shoreline Blvd., Bldg. A, Suite 8,
Mountain View, California 94303 (“Broncus”) and Asthmatx, Inc., a California corporation having its principal place of business at 1340 Space Park Way, Mountain View, California 94043 (“Asthmatx”). 
 RECITALS 
 A. Broncus formed
Asthmatx and, in exchange for the issuance to Broncus of all the outstanding shares of Asthmatx’s capital stock, Broncus contributed to Asthmatx certain assets, properties, technology and intellectual property pursuant to a Corporate Formation
Agreement dated as of December 26,, 2003 between Broncus and Asthmatx (the “Formation Agreement”). On December 30, 2003, Broncus distributed all the outstanding shares of Asthmatx’s capital stock to the shareholders
of Broncus pursuant to a dividend that Broncus declared and paid to the Broncus shareholders. 
 B. Broncus is a party to a certain License
Agreement with Ntero Surgical, Inc. that is defined herein as the Ntero License Agreement. Pursuant to the terms of a Cross License Agreement being entered into by Broncus and Asthmatx concurrently herewith, the parties have agreed to enter into
this Agreement to set forth the terms and conditions on which Broncus will grant Asthmatx a sublicense to certain license rights Broncus holds under its License Agreement with Ntero Surgical, Inc. 
 NOW, THEREFORE, in consideration of the mutual covenants and obligations set forth herein, and for other good and valuable consideration, the
receipt and sufficiency of which is hereby acknowledged, Broncus and Asthmatx hereby agree as follows: 
 1. CERTAIN DEFINITIONS. As used in this
Agreement, the following terms shall have the meanings indicated below in this Section 1: 
 1.1 “Affiliate” shall mean
any entity that is Controlled by, Controls, or is under common Control with Broncus or Asthmatx, as applicable. 
 1.2 “Asthmatx
Field” shall mean, and shall be limited to, the field consisting of devices and procedures for providing asthma therapy. 
 1.3
“Broncus Field” shall mean, and shall be limited to, the field consisting of devices and procedures for providing emphysema therapy. 
 1.4 “Control” (including “Controlled,” “Controls” and other forms) shall mean, as to an entity, direct or indirect ownership of more than fifty percent (50%) of the voting interest in the
entity in question. 
 1.5 “Ntero License Agreement” shall mean that certain License Agreement dated as of March 29,
2001 between Broncus and Ntero Surgical, Inc., a Delaware corporation (“Ntero”) pursuant to which Ntero has licensed Broncus under certain patents and other technology owned by Ntero relating to the use of thermal energy in
modulating the healing response in biological tissues. A copy of the Ntero License Agreement is attached hereto as Exhibit A. 
  

 **** Certain portions of this exhibit have been omitted and confidential treatment has been requested for these omitted
portions pursuant to an application for confidential treatment sent to the Securities and Exchange Commission. 
 22 

 1.6 “Ntero Field” shall mean the diagnosis or treatment of lung disease. 
 1.7 “Ntero Licensed Patents” shall mean the “Licensed Patents” as defined in the Ntero License Agreement. 

1.8 “Ntero Licensed Product” means a “Licensed Product” as defined in the Ntero License Agreement. 
 1.9 “Ntero Technology” shall mean the “Ntero Technology” as that term is defined in the Ntero License Agreement.

 1.10 “Asthmatx Net Sales” shall mean the gross amount billed or invoiced by Asthmatx and/or any Affiliate of
Asthmatx for the sale or other disposition of any Ntero Licensed Products less the following deductions: (a) discounts, chargebacks, allowances for bad debts or uncollectible amounts, Medicaid/Medicare rebates (other than as described in
(d) below) and allowances actually taken; (b) sales, use, value added and excise taxes, import and customs duties, tariffs, and any other similar taxes, duties or tariffs, to the extent actually paid by the selling party; (c) freight,
insurance, packaging costs and other transportation charges to the extent added to the sales price; and (d) amounts repaid or credits taken by reason of rejections, defects or returns or because of retroactive price reductions or due to recalls
or government laws or regulations requiring rebates. “Asthmatx Net Sales” shall not include amounts for any Ntero Licensed Product furnished to a third party for which payment is not intended to be received, including, but not limited to,
Ntero Licensed Products used in clinical trials and Ntero Licensed Products distributed as promotional and free goods. 
 Capitalized terms
used in this Agreement and not otherwise defined herein will have the meanings given to such terms in the Ntero License Agreement. 
 2. SUBLICENSE.

 2.1 Grant. Subject to all of the terms and conditions of the Ntero License Agreement and this Agreement, to the fullest extent
permitted under the Ntero License Agreement, Broncus hereby grants to Asthmatx, a worldwide sublicense: 
 (a) to use and practice the Ntero
Technology solely within the Asthmatx Field (but only to the extent that the Asthmatx Field is within the Ntero Field), including without limitation the right to use, copy, modify, distribute, make derivative works of and otherwise exploit the Ntero
Technology within the Asthmatx Field to the extent it is within the Ntero Field; and 
 (b) under the Ntero Licensed Patents to make, use,
sell, distribute, offer to sell, import and practice products and processes solely within the Asthmatx Field (but only to the extent that it is within the Ntero Field); 
 provided however, that notwithstanding the foregoing, (a) in no event shall the foregoing sublicense provide, or be deemed to provide, Asthmatx with any greater rights than Broncus is
entitled to grant by way of sublicense to Asthmatx under the Ntero License Agreement, and (b)

  

 **** Certain portions of this exhibit have been omitted and confidential treatment has been requested for these omitted
portions pursuant to an application for confidential treatment sent to the Securities and Exchange Commission. 
 23 

 
Asthmatx is not hereby granted any right or license to sublicense any of the rights which it is granted under this Section 2.1. Asthmatx agrees not to
exercise any rights with respect to the Ntero Technology or any Ntero Licensed Patents that are not expressly sublicensed to Asthmatx by Broncus under this Agreement. 
 2.2 Duration of Sublicense. The foregoing sublicense shall remain in effect only for so long as (a) Broncus is entitled under the terms of the Ntero License Agreement to grant such sublicense to Asthmatx
and to keep such sublicense in effect; (b) the Ntero License Agreement and Broncus’ rights thereunder have not been terminated; and (c) neither this Agreement nor such sublicense has been terminated pursuant to the provisions of
Section 6.1. 
 2.3 Retention of Rights. Notwithstanding anything herein to the contrary, the sublicense granted by Broncus to
Asthmatx under this Section 2 shall be non-exclusive and it is the agreement, understanding and intention of the parties that nothing in this Agreement will modify, adversely affect, restrict or limit Broncus’ right to exercise any and all
of the license rights granted to Broncus under the Ntero License Agreement. Except for the sublicense rights expressly granted by Broncus to Asthmatx herein, nothing herein is intended to convey any right, title or interest in or to the Ntero
Technology or any of the Ntero Licensed Patents. 
 3. PAYMENT OF ROYALTIES TO BRONCUS. 
 3.1 Royalty Obligation. As a material inducement and consideration to Broncus to grant the sublicense to Asthmatx pursuant to Section 2, for
so long as Broncus has any obligation to pay royalties to Ntero under the Ntero License Agreement, Asthmatx shall pay to Broncus, with respect to any Asthmatx Net Sales in such calendar quarter, the full amount payable by Broncus to Ntero with
respect to such Asthmatx Net Sales under the terms of the Ntero License Agreement. As of the Effective Date, the amount payable by Broncus with respect to such Asthmatx Net Sales is: 
 (a) in the event that the relevant Ntero Licensed Product performs the Primary Function (as that term is defined in the Ntero License Agreement) but does
not perform any other material function, **** percent (****%) of the aggregate Asthmatx Net Sales of such Ntero Licensed Product; and 
 (b)
in the event that a Ntero Licensed Product performs other material functions in addition to the Primary Function (as that term is defined in the Ntero License Agreement), **** percent (****%) of the aggregate Asthmatx Net Sales of such Ntero
Licensed Product. 
 3.2 Royalty Stacking; Credits. If Asthmatx is required (in Asthmatx’s good faith judgment) to make any
Third-Party Payment (as defined below) then such Third-Party Payment or Payments shall be creditable against royalties otherwise owed by Asthmatx to Broncus under Section 3.1 to the extent permitted by this Section 3.2;
provided that in no one year shall such expenses be credited by Asthmatx against more than **** percent (****%) of the royalty payments otherwise owed by Asthmatx to Broncus under this Agreement. As used herein, the term
“Third-Party Payment” means a payment made by a party to this Agreement (including but not limited to, royalties or other license fees) to one or more third parties to obtain a license or similar right, in the absence of which such
party could not legally make, import, use, sell or offer for sale Ntero Licensed Products. The Ntero License Agreement provides that in no one year shall Third-Party Expenses be credited against more than **** percent (****%) of the royalty 

  

 **** Certain portions of this exhibit have been omitted and confidential treatment has been requested for these omitted
portions pursuant to an application for confidential treatment sent to the Securities and Exchange Commission. 
 24 

 
payments otherwise owed to Ntero by Broncus. Accordingly, as among themselves, Broncus and Asthmatx agree to allocate the right to receive a credit for
Third-Party Payments made by them (i) against royalties payable by Asthmatx under this Agreement as provided herein (in the case of Asthmatx) and (ii) against royalties payable by Broncus under the Ntero License Agreement (in the case of
Broncus) so that, if Broncus and Asthmatx have royalty obligations against which it can use such credits for Third-Party Payments and the total amount of such Third-Party Payments by Asthmatx and Broncus exceeds the amount that can be credited by
Broncus against royalties under the Ntero License Agreement, the parties will allocate such available credits pro rata according to the total amounts of their respective Third-Party Payments; provided that Asthmatx may not credit
Third-Party Payment in any one year against more than **** percent (****%) of the royalty payments otherwise owed by Asthmatx to Broncus under this Agreement. 
 3.3 Payment Terms. 
 (a) Time for Payment. Asthmatx shall pay all royalties due and payable on
Asthmatx Net Sales pursuant to this Section 3 within forty-five (45) days after the last day of each quarter in which the applicable Asthmatx Net Sales underlying such royalties were billed or invoiced by Asthmatx or an Affiliate of
Asthmatx. 
 (b) Payment Currency. All payments made by Asthmatx to Broncus under this Agreement shall be made in United States
dollars, and such payments shall be made by check or wire transfer to one or more bank accounts to be designated in writing by Broncus. In the event that Ntero Licensed Products are sold or licensed by Asthmatx in currencies other than United States
dollars, Asthmatx Net Sales shall be calculated by conversion of foreign currency to U.S. dollars at the conversion rate existing in the United States (referencing the “U.S. dollar noon buying rates”, or its equivalent, published in the
Wall Street Journal) on the last working day of each period during which royalties are calculated, net of applicable exchange related charges, or otherwise in accordance with generally accepted accounting principles consistently applied. 

(c) Taxes. All applicable taxes levied on account of the royalties and other payments accruing or made to Broncus pursuant to this Agreement,
other than taxes on Broncus’ net income, shall be paid by Asthmatx. If provision is made in law or regulation for withholding of taxes of any type, levies or other charges with respect to any royalty or other amounts due and payable under this
Agreement by Asthmatx to Broncus, then Asthmatx shall be entitled to deduct such tax, levy or charge from the royalty or other payment to be made by it and shall pay such tax, levy or charge to the proper taxing authority. A receipt of payment of
the tax, levy or charge shall be promptly delivered to Broncus, together with copies of all pertinent communications from or with such governmental authorities with respect thereto. At Broncus’ reasonable request and at Asthmatx’s expense,
Asthmatx shall reasonably assist Broncus in any effort by Broncus in claiming any exemption from such deductions or withholdings under any double taxation or similar agreement or treaty from time to time in force, and in minimizing the amount
required to be so withheld or deducted. 
 (d) Records and Reports. All payments made to Broncus by Asthmatx hereunder shall be
accompanied by a written statement setting forth in reasonable detail the calculation thereof, including the amount of any credits Asthmatx claims for Third-Party Payments pursuant to Section 3.2 (in which case Asthmatx shall provide Broncus
with reasonable written verification of such Third-Party Payments). Asthmatx shall maintain complete and accurate records sufficient to enable accurate calculation of royalties and other payments due to Broncus 

  

 **** Certain portions of this exhibit have been omitted and confidential treatment has been requested for these omitted
portions pursuant to an application for confidential treatment sent to the Securities and Exchange Commission. 
 25 

 
hereunder. Asthmatx shall preserve such records and books of account for a period of three (3) years after the end of the period covered by such records
and books of account, which obligation shall survive expiration or termination of this Agreement. 
 3.4 Audit Rights. Asthmatx shall
permit an independent public accountant designated by Broncus and reasonably acceptable to Asthmatx, to have access, no more than once in each calendar year during the term of this Agreement and no more than twice during the three (3) calendar
years following the expiration or termination of Asthmatx’s royalty obligations hereunder, during regular business hours and upon at least ten (10) days prior written notice, to Asthmatx’s records and books relating to royalties
payable hereunder, for the purpose of determining the accuracy of Asthmatx Net Sales reported, and royalty payments made, by Asthmatx to Broncus within the one (1) year period immediately preceding such an audit. The independent public
accountant shall be under a confidentiality obligation to Asthmatx to disclose to Broncus only (a) the accuracy of Asthmatx Net Sales reported and the basis for royalty payments made to Broncus under this Agreement, and (b) the difference,
if any, by which such reported and paid amounts vary from amounts determined as a result of the audit. If such examination results in a determination that Asthmatx Net Sales or royalty payments have been understated or overstated, unpaid amounts or
refund of overstatement due shall be paid promptly. The fees and expenses of such accountant shall be paid by Broncus, unless the accountant’s examination results in a determination that Asthmatx Net Sales have been understated, or that
payments have been underpaid, by more than ten percent (10%) for the period examined, in which case Asthmatx shall pay all reasonable costs and expenses incurred by Broncus in the course of making such determination, including the fees and
expenses of such accountant. 
 3.5 Intent. The parties acknowledge and agree that under the terms of the Ntero License Agreement,
Broncus has certain obligations to pay royalties to Ntero with respect to Asthmatx Net Sales, and therefore it is important to Broncus that Asthmatx correctly compute, and timely pay to Broncus, the royalties payable by Asthmatx under this
Agreement. 
 4. ASTHMATX COMPLIANCE AND INDEMNIFICATION. 
 4.1 Compliance. Asthmatx acknowledges and agrees that it has received and reviewed a true copy of the Ntero License Agreement. Asthmatx hereby agrees with Broncus not to take any action or omit to take any
action, that would cause, or result in, a breach, violation or default by Broncus under the Ntero License Agreement. 
 4.2
Indemnification. As a material inducement to Broncus to grant the sublicense granted under Section 2.1 of this Agreement, Asthmatx hereby agrees, as Asthmatx’s expense, to defend Broncus, its directors, officers, employees, and agents,
against all third party claims, demands, damages, liabilities, losses, costs and expenses, including without limitation attorney’s fees (“Claims’) resulting from or arising out of: (a) any breach or violation by Asthmatx
of its obligations under Section 2 hereof or Sections 3.1 through 3.3 above, (b) any act or omission by Asthmatx that causes, or results in, a breach, violation or default by Broncus under the Ntero License Agreement; and/or (c) the
development, testing, manufacture, use, sale, offer for sale, license, importation, exportation, storage, handling, transportation, marketing, distribution or any other disposition of any Ntero Licensed Product by Asthmatx or any Affiliate of
Asthmatx; provided, however, that Asthmtax’s indemnification obligations under the preceding clause (c) of this Section 4.2 shall not apply to the extent that any such Claim results from or arises out of
any claim that the Ntero Technology infringes or misappropriates the intellectual property rights of a third party or results from or arises out of any breach by Ntero of any of Ntero’s representations, 

  

 **** Certain portions of this exhibit have been omitted and confidential treatment has been requested for these omitted
portions pursuant to an application for confidential treatment sent to the Securities and Exchange Commission. 
 26 

 
warranties or covenants to Broncus under the Ntero License Agreement (collectively “Excluded Claims”). Asthmatx will pay any liability,
damage, loss or expenses (including reasonable attorneys’ fees and court costs) imposed upon Broncus in any judgment, award or settlement attributable to a Claim for which Asthmatx has agreed to indemnify Broncus under this Section 4.2
except for Excluded Claims. 
 4.3 Indemnification Procedure. For purposes of Section 4.2 above, Broncus shall give prompt
written notice to Asthmatx of any Claims for which indemnification may be required under Section 4.2; provided, however, that failure to give such notice shall not relieve Asthmatx of its obligation to provide
indemnification hereunder except, if and to the extent that such failure materially and adversely affects the ability of Asthmatx to defend the applicable Claim. Asthmatx shall be entitled to assume the defense and control of any such Claim for
which it is obligated to provide indemnification hereunder at its own cost and expense; provided, however, that Broncus shall have the right to be represented by its own counsel at its own cost in connection with the
defense of such Claim. Neither Asthmatx nor Broncus shall settle or dispose of any such Claim in any manner which would adversely affect the rights or interests of the other party (including the obligation to indemnify hereunder) without the prior
written consent of the other party, which shall not be unreasonably withheld or delayed. Each party shall cooperate with the other party and its counsel in the course of the defense of any such suit, claim or demand, such cooperation to include
without limitation using reasonable efforts to provide or make available documents, information and witnesses. 
 5. COOPERATION AND OTHER MATTERS. 

 5.1 Generally. Asthmatx agrees that it will in good faith exercise reasonable efforts to cooperate with Broncus so that actions
taken by Asthmatx pursuant to Section 2 of this Agreement, will not result in breaches or violations by Broncus of the Ntero License Agreement and will not result in Claims by Ntero against Broncus under the Ntero License Agreement. 

5.2 Confidentiality. Asthmatx agrees to comply with and faithfully observe and perform, all of the provisions of Section 10 of the Ntero
License Agreement regarding confidential information. 
 5.3 Patent Enforcement. Asthmatx will notify Broncus promptly in writing of
any infringement of any Ntero Licensed Patent by a third party in the Ntero Field which becomes known to Asthmatx and shall cooperate in any suit, proceeding or dispute involving the infringement of any Licensed Patent to the same extent Broncus is
required to do so under Section 6.4 of the Ntero License Agreement. Nothing in this Agreement will obligate Broncus or Ntero to initiate or maintain any infringement action or other suit or proceeding with respect to any Ntero Licensed Patent
or other Ntero Technology. 
 5.4 Broncus Improvements. Without limiting Asthmatx’s obligations under Sections 4.1 and 5.1 above,
in the event that any technology, assets, invention, copyright, trade secret, proprietary information or other asset owned by Asthmatx on the Effective Date constitutes a “Broncus Improvement” (as defined in the Ntero License Agreement),
then Asthmatx shall cooperate with Broncus and grant to Ntero the license rights with respect thereto as provided in, and subject to the terms of, Section 5 of the Ntero License Agreement. 
 5.5 Abandoned Patents. Broncus shall promptly notify Asthmatx of any notice Broncus receives from Ntero with respect to “Abandoned
Patents” (as that term is defined in 

  

 **** Certain portions of this exhibit have been omitted and confidential treatment has been requested for these omitted
portions pursuant to an application for confidential treatment sent to the Securities and Exchange Commission. 
 27 

 
Section 6 of the Ntero License Agreement). If Broncus declines to take any action to file for, prosecute or maintain any such Abandoned Patent, then, to
the extent permitted by the Ntero License Agreement, if Asthmatx requests Broncus in writing to do so, Broncus shall, at Asthmatx’s sole cost and expense, take action to file for, prosecute and maintain such Abandoned Patent, but Broncus shall
have no obligation to incur any cost, expense or liability in connection therewith and may cease any activity to file for, prosecute or maintain any Abandoned Patent if Asthmatx does not timely pay in full all costs (such as, without limitation,
filing fees, attorneys’ fees and maintenance fees) associated therewith. 
 5.6 Joint Patents. Broncus shall have no obligation
whatsoever to Asthmatx to file, prosecute or maintain any Joint Patent (as that term is defined in Section 6 of the Ntero License Agreement) and Asthmatx acknowledges that it shall have no rights with respect to any Joint Patent. 
 6. TERMINATION. 
 6.1 Termination of Agreement and
Sublicense. If Asthmatx materially breaches any of its obligations, duties or covenants under this Agreement, then Broncus may give Asthmatx written notice of such breach, setting forth the nature of the breach in reasonable detail. If Asthmatx
fails to cure such breach within thirty (30) days of its receipt of such notice from Broncus, then Broncus may terminate this Agreement and the sublicense granted to Asthmatx under Section 2 effective immediately upon giving Asthmatx a
written notice of such termination. 
 6.2 Effect of Termination. Termination of this Agreement and/or Asthmatx’s sublicense
granted under Section 2.1 shall not release or relieve Asthmatx from any obligation it has accrued under this Agreement (including but not limited to obligations to pay to Broncus any amount which became due and payable under this Agreement
prior to such termination, such as royalties payable by Asthmatx under Section 3) or Asthmatx’s obligations to defend and indemnify Broncus under Section 4.2. 
 7. MISCELLANEOUS 
 7.1 Governing Law. This Agreement shall be governed by, and construed and
interpreted, in accordance with the internal laws of the State of California without giving effect to any choice of law rule that would cause the application of the laws of any jurisdiction other than the internal laws of the State of California to
the rights and duties of the parties. 
 7.2 Further Assurances. From time to time on and after the Effective Date, each party shall
at the reasonable request of the other party (a) deliver to such other party such records, data or other documents consistent with the provisions of this Agreement, (b) execute, and deliver or cause to be delivered, all such assignments,
consents, documents or further instruments of transfer or license, and (c) take or cause to be taken all such other actions, as such other party may reasonably deem necessary or desirable in order for such party to obtain the full benefits of
this Agreement and the transactions contemplated thereby. 
 7.3 Limitation of Liability. EXCEPT WITH RESPECT TO ASTHMATX’S
INDEMNIFICATION OBLIGATIONS UNDER SECTION 4.2 AND ASTHMATX’S CONFIDENTIALITY OBLIGATIONS UNDER SECTION 5.2, IN NO EVENT SHALL EITHER PARTY BE LIABLE FOR INCIDENTAL, CONSEQUENTIAL, INDIRECT, PUNITIVE OR SPECIAL DAMAGES OF THE OTHER PARTY ARISING
OUT OF OR RELATED TO THIS AGREEMENT, HOWEVER CAUSED, UNDER ANY THEORY OF LIABILITY. 
  

 **** Certain portions of this exhibit have been omitted and confidential treatment has been requested for these omitted
portions pursuant to an application for confidential treatment sent to the Securities and Exchange Commission. 
 28 

 7.4 Force Majeure. Neither party shall be held responsible for any delay or failure in performance
hereunder caused by strikes, embargoes, unexpected government requirements, civil or military authorities, acts of God, earthquake, or by the public enemy or other causes reasonably beyond such party’s control and without such party’s
fault or negligence; provided that the affected party notifies the unaffected party as soon as reasonably possible, and resumes performance hereunder as soon as reasonably possible following cessation of such force majeure event. 
 7.5 Notices. Any notice, report, communication or consent required or permitted by this Agreement shall be in writing and shall be sent
(a) by prepaid registered or certified mail, return receipt requested, (b) by overnight express delivery service by a nationally recognized courier, or (c) via confirmed facsimile or telecopy, followed within five (5) days by a
copy mailed in the preceding manner, addressed to the other party at the address shown below or at such other address for which such party gives notice hereunder. Such notice will be deemed to have been given when delivered or, if delivery is not
accomplished by some fault of the addressee, when tendered. 
 If to Broncus: 
 Broncus Technologies, Inc. 
 1400 N. Shoreline Blvd. 
 Bldg. A, Suite 8 
 Mountain View, CA 94043

 Facsimile: (650) 428-1542 
 If to
Asthmatx: 
 Asthmatx, Inc. 
 1340
Space Park Way. 
 Mountain View, CA 94043 
 Facsimile: (650) 810-1112 
 7.6 Modification; Waiver. This Agreement may not be altered, amended
or modified in any way except by a writing signed by both parties. The failure of a party to enforce any rights or provisions of the Agreement shall not be construed to be a waiver of such rights or provisions, or a waiver by such party to
thereafter enforce such rights or provision or any other rights or provisions hereunder. No waiver shall be effective unless made in writing and signed by the waiving party. 
 7.7 Severability. If any provision of any article of this Agreement shall be found by a court to be void, invalid or unenforceable, the same shall
be reformed to comply with applicable law or stricken if not so conformable, so as not to affect the validity or enforceability of this 

  

 **** Certain portions of this exhibit have been omitted and confidential treatment has been requested for these omitted
portions pursuant to an application for confidential treatment sent to the Securities and Exchange Commission. 
 29 

 
Agreement; provided that no such reformation or striking shall be effective if the result materially changes the economic benefit of this
Agreement to either Broncus or Asthmatx. In the event that any provision of this Agreement becomes or is declared by a court of competent jurisdiction to be void, invalid or unenforceable, and reformation or striking of such provision would
materially change the economic benefit of this Agreement to either Broncus or Asthmatx, then Broncus and Asthmatx shall modify such provision in accordance with this Section 7.7 to obtain a legal, valid and enforceable provision and provide an
economic benefit to Broncus and Asthmatx that most nearly effects Broncus’ and Asthmatx’ intent on entering into this Agreement. 
 7.8 Entire Agreement. The parties hereto acknowledge that this Agreement, together with the exhibit attached hereto, sets forth the entire agreement and understanding of the parties hereto as to the subject matter hereof, and
supersedes all prior and contemporaneous discussions, agreements and writings in respect hereto. 
 7.9 Headings. The article, section
and paragraph headings contained herein are for the purposes of convenience only and are not intended to define or limit the contents of the articles, sections or paragraphs to which such headings apply. 
 7.10 Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original and all of which together
shall constitute one instrument. 
 IN WITNESS WHEREOF, Broncus and Asthmatx have each executed this Sublicense Agreement by their
respective duly authorized representatives. 
  

									
	ASTHMATX, INC	 		 	BRONCUS TECHNOLOGIES, INC.
					
	By:	 	 /s/ Glen French
  
	 		 	By:	 	 /s/ Cary Cole
  

		 	Glen French, Chief Executive Officer	 		 		 	Cary Cole, President

 Attachment: 
  

			
	Exhibit A:	  	Ntero License Agreement

  

 **** Certain portions of this exhibit have been omitted and confidential treatment has been requested for these omitted
portions pursuant to an application for confidential treatment sent to the Securities and Exchange Commission. 
 30

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