Five Million Dollars Uses in Asthmatx; Alair Insurance Clause

Asthmatx; Alair Insurance from Indemnification Agreement

This Indemnification Agreement (this Agreement) is made and entered into effective as of February 17, 2004 (the Effective Date) by and between Asthmatx, Inc., a California corporation (Asthmatx), and Broncus Technologies, Inc., a California corporation (Broncus).

Asthmatx; Alair Insurance. Asthmatx shall use diligent, good faith efforts to purchase and obtain the Alair Insurance, and to have the Alair Insurance become effective, as soon as reasonably practicable after the Effective Date of this Agreement. Asthmatx shall also use diligent, good faith efforts to cause the Alair Insurance to: (a) have an aggregate coverage limit of Five Million Dollars ($5,000,000); (b) make both Asthmatx and Broncus named insureds of the Alair Insurance; and (c) cause the Alair Insurance to have a coverage period of at least five (5) years from the date it is issued. Asthmatx shall consult with Broncus regarding the specific terms of such Alair Insurance. Asthmatx shall, at its sole expense, (a) pay all premiums and other charges required to obtain the Alair Insurance and maintain it in effect at all times during the coverage period of the Alair Insurance and (b) take all other actions reasonably necessary or appropriate to maintain such Alair Insurance in effect at all times during its coverage period.