Document:

Patent, Trademark and Copyright Security Agreement

 Exhibit 10.5 
  
 PATENT, TRADEMARK AND COPYRIGHT SECURITY AGREEMENT 
  
 THIS PATENT, TRADEMARK AND COPYRIGHT SECURITY AGREEMENT
(“Agreement”), dated as of August 12, 2005, by CARDIMA, INC., a Delaware corporation (the “Borrower”), in favor of APIX INTERNATIONAL LIMITED (the “Secured Party”) is made with reference to the
following: 
  
 A. Pursuant to that certain Term Sheet
(“Term Sheet”) dated as of August 12, 2005 and that certain Promissory Note (the “Bridge Promissory Note”) dated as of August 12, 2005 between the Borrower and the Secured Party, each of which the parties hereto
propose to cause to be superseded by a Loan Agreement (the “Loan Agreement”) and Promissory Note (the “Promissory Note”) by and among the Borrower and the Lender (the Bridge Promissory Note, the Term Sheet, the Loan
Agreement and the Promissory Note, including all annexes, exhibits or schedules thereto, as from time to time amended, restated, supplemented or otherwise modified, collectively, the “Funding Documents”), the Lender has agreed to
make certain loans to the Borrower subject to and in accordance with the terms and conditions of the Funding Documents. 
  
 B. Pursuant to a Security Agreement, dated as of the date hereof (referred to as the “Borrower Security Agreement”), the Borrower has
granted a lien upon all of its assets, whether now owned or hereafter acquired, to the Secured Party, including all of its now owned or hereafter acquired intellectual property (the “Intellectual Property”), in order to secure the
prompt and complete payment and performance of all obligations in favor of the Secured Party arising under the Loan Documents. 
  
 C. The Borrower owns the patents, trademarks and copyrights, and has rights under the patent licenses, trademark licenses and copyright licenses listed in
Schedule 1, and may hereafter own various patents, trademarks, and copyrights, file various patent, trademark, or copyright applications, or be a party to, or an assignee of a party to, various patent, trademark or copyright licenses. Any
reference to “Schedule 1” in this Agreement shall refer to Schedule 1 attached hereto, which schedule is incorporated by reference into this Agreement. 
  
 D. The parties are entering into this Agreement, in addition to the Borrower Security Agreement, in order to more fully
describe the rights and remedies of the Secured Party with respect to the Intellectual Property, and to ensure that the Secured Party will realize the full benefits of the rights and remedies that the parties intend to confer upon the Secured Party
in connection with the Intellectual Property. Nothing contained herein shall be construed to limit the Secured Party’s rights or remedies under the Borrower Security Agreement. 
  
 NOW, THEREFORE, in consideration of the premises and mutual covenants herein contained and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the Borrower hereby agrees as follows: 
  
 1. DEFINED TERMS. As used in this Agreement, the following terms shall have the following meanings: 
  
 1.1 “Copyright Licenses” shall mean all rights under any written
agreement granting any right to any third party under any Copyright now or hereafter owned by the Borrower, or granting any right to the Borrower under any Copyright now or hereafter owned by any third party, including the copyright licenses listed
in Schedule 1. 

 1.1 “Copyrights” shall mean all of the following: 
  
 (a) all copyrights, including the copyrights listed in Schedule 1,
in any original work of authorship fixed in any tangible medium of expression, now known or later developed, all registrations and applications for registration of any such copyrights in the United States or any other country, including
registrations, recordings and applications, and supplemental registrations, recordings, and applications in the United States Copyright Office; and 
  
 (b) all proceeds of the foregoing, including license royalties and proceeds of infringement suits, the right to sue for past, present and future
infringements, all rights corresponding thereto throughout the world and all reissues, extensions or renewals thereof. 
  
 1.2 “Goodwill” shall mean all goodwill, trade secrets, proprietary or confidential information, technical information, procedures, formulae,
quality control standards, designs, operation and training manuals, customer lists, distribution agreements and general intangibles now or hereafter owned by the Borrower. 
  
 1.3 “Patent Licenses” shall mean all rights now owned or hereafter acquired by the Borrower under any written
agreement granting any right with respect to any invention on which a Patent is in existence, including the patent licenses listed in Schedule 1. 
  
 1.4 “Patents” shall mean all of the following: 
  
 (a) all letters patent of the United States or any other country, all registrations and recordings thereof, and all applications in the United States
Patent and Trademark Office or in any similar office or agency of the United States or any state or territory thereof, or any other country, including the patents listed in Schedule 1; and 
  
 (b) all proceeds of the foregoing, including license royalties and proceeds
of infringement suits, the right to sue for past, present and future infringements, all rights corresponding thereto throughout the world and all reissues, divisions, continuations, renewals, extensions and continuations-in-part thereof. 

 
 1.5 “Trademark Licenses” shall mean all rights now owned or
hereafter acquired by the Borrower under any written agreement granting any right to use any Trademark or Trademark registration, including the trademark licenses listed in Schedule 1. 
  
 1.6 “Trademarks” shall mean all of the following: 
  
 (a) all trademarks, trade names, corporate names, business names, trade
styles, service marks, logos, other source or business identifiers, proprietary product names 
  

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 or descriptions, prints and labels on which any of the foregoing have appeared or appear, designs and general intangibles
of like nature, now existing or hereafter adopted or acquired, all registrations and recordings thereof, and all applications in connection therewith, including registrations, recordings and applications in the United States Patent and Trademark
Office or in any similar office or agency of the United States, any state or territory thereof, or any other country or any political subdivision thereof, including the trademarks listed in Schedule 1; 
  
 (b) all proceeds of the foregoing, including license royalties and proceeds
of infringement suits, the right to sue for past, present and future infringements, all rights corresponding thereto throughout the world and all renewals thereof. 
  
 In this Agreement, unless otherwise indicated, the singular includes the plural and plural the singular; words importing any gender include
the other gender; references to statutes or regulations are to be construed as including all statutory or regulatory provisions consolidating, amending or replacing the statute or regulation referred to; references to “writing” include
printing, typing, lithography and other means of reproducing words in a tangible visible form; the words “including,” “includes” and “include shall be deemed to be followed by the words “without limitation”;
references to articles, sections (or subdivisions of sections), exhibits, annexes or schedules are to this Agreement; references to agreements and other contractual instruments shall be deemed to include all subsequent amendments, extensions and
other modifications to such instruments (without, however, limiting any prohibition on any such amendments, extensions and other modifications by the terms of this Agreement); and references to persons include their respective permitted successors
and assigns and, in the case of any governmental entity, persons succeeding to their respective functions and capacities. 
  
 2. GRANT OF SECURITY INTEREST. The Borrower hereby grants the Secured Party a continuing first priority security interest in all of the
Borrower’s right, title and interest in, to and under the following, whether presently existing or hereafter created or acquired (collectively, the “Intellectual Property”): 
  
 (a) each Patent in which the Borrower now or hereafter has any interest,
including each Patent (and patent application) listed in Schedule 1; 
  
 (b) each Patent License to which the Borrower now or hereafter is a party (or the assignee of a party), including each Patent License listed in Schedule 1; 
  
 (c) each Trademark in which the Borrower now or hereafter has any interest,
including each Trademark (and trademark application) listed in Schedule 1; 
  
 (d) each Trademark License to which the Borrower now or hereafter is a party (or the assignee of a party), including each Trademark License listed in Schedule 1; 
  
 (e) each Copyright in which the Borrower now or hereafter has any interest,
including each Copyright (and copyright application) listed in Schedule 1; 
  
 (f) each Copyright License to which the Borrower now or hereafter is a party, including each Copyright License listed in Schedule 1; 
  

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 (g) the Goodwill associated with: (i) each such Patent, Trademark, and Copyright; and (ii) each such
Patent licensed under any Patent License, each such Trademark licensed under any Trademark License, and each such Copyright licensed under any Copyright License; and 
  
 (h) all products and proceeds of the foregoing, including any claim of the Borrower against third parties for any (i) past,
present or future infringement or dilution of any Patent, Trademark or Copyright or of any Patent License, Trademark License or Copyright License and (ii) injury to the Goodwill associated with the foregoing. 
  
 3. SECURITY FOR OBLIGATIONS. This Agreement secures, and the
Intellectual Property is collateral security for, the prompt payment or performance in full when due, whether at stated maturity, by acceleration or otherwise (including the payment of amounts which would become due but for the operation of the
automatic stay under Section 362(a) of the Bankruptcy Code, 11 U.S.C. § 362(a)), of all obligations now or hereafter arising under any of the Funding Documents or any other agreement now of at anytime hereafter entered into between the Borrower
and the Secured Party, including for principal or interest (including, without limitation, interest which, but for the filing of a petition in bankruptcy with respect to the Borrower, would accrue on such obligations), fees, expenses or otherwise,
and all obligations of Borrower now or hereinafter arising under this Agreement (all such obligations being the “Secured Obligations”).. 
  
 It is the intention of the Borrower that the continuing grant of security interests provided for herein shall remain as security for the payment and
performance of the Secured Obligations, whether now existing or hereinafter incurred by future advances or otherwise, and whether or not contemplated by the parties at the date hereof. No notice of the continuing grant of such security interests,
therefore, shall be required to be stated on the face of any document representing any such Secured Obligation nor shall it otherwise be necessary to identify any such Secured Obligation as being secured hereby. Any such Secured Obligation shall be
deemed to have been made pursuant to Section 9204 of the Uniform Commercial Code of the State of California, as applicable (the “Code”). 
  
 4. REPRESENTATIONS AND WARRANTIES. The Borrower represents and warrants to the Secured Party that as of the date of this Agreement: 
  
 4.1 The Borrower does not own or have any interest in any Patent, Trademark,
or Copyright that is registered with the United States Patent and Trademark Office, the United States Copyright Office, or any similar offices or agencies of the United States, any state or territory thereof, or any other country or political
subdivision, other than the Patents, Trademarks and Copyrights listed in Schedule 1, nor does the Borrower have any interest in any Patent, Trademark or Copyright Application, other than those listed in Schedule 1; 
  
 4.2 The Borrower is not a party to, or an assignee of a party to, any Patent
License, Trademark License or Copyright License other than each of the Patent Licenses, Trademark Licenses and Copyright Licenses listed in Schedule 1; 
  

4.3 The Borrower has not granted any license, rights or privileges in or to the Intellectual Property to any party, except as otherwise set forth
herein; 
  

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 4.4 The Borrower has notified the Secured Party, in writing, of all prior art (including public uses and
sales) with respect to its Patents; 
  
 4.5 The Patents, Trademark
registrations and Copyright registrations listed in Schedule 1 have been duly and properly issued, and are valid and enforceable; 
  
 4.6 The Patents, Trademark registrations and Copyright registrations listed in Schedule 1 have not been adjudged invalid or unenforceable, in whole
or in part, by any court of competent jurisdiction; 
  
 4.7 The
Borrower may practice the inventions described and claimed in the Patents listed in Schedule 1, free and clear of the infringement of or interference with the rights of others; 
  
 4.8 The Borrower has not received any threats of action and has not commenced and is not about to commence any suit or
action against others in connection with the violation or enforcement of its rights in any of the Intellectual Property; 
  
 4.9 The Borrower is and shall at all times remain the sole and exclusive owner of the entire and unencumbered right, title and interest in and to each of
the Patents, Trademark registrations and Copyright registrations listed in Schedule 1, free and clear of any liens or encumbrances, including licenses and covenants by the Borrower not to sue third persons except for liens of the Secured
Party under this Agreement and under any other security agreement by and among the Borrower and the Secured Party; and 
  
 4.10 The Borrower has the unqualified right and power to enter into this Agreement and perform its terms and has entered and will enter into written
agreements as necessary with each of its present and future employees, agents and consultants that will enable it to comply with the covenants herein contained. 
  

5. COVENANTS. 
  
 5.1 In no event shall the Borrower, either by itself or through any agent, employee, licensee or designee, file an application for the registration of any
Intellectual Property with the United States Patent and Trademark Office, the United States Copyright Office or any similar office or agency in the United States, or any other country or any political subdivision thereof, without giving the Secured
Party prior written notice thereof and, upon the request of the Secured Party, the Borrower shall execute and deliver, for filing with any such office or agency as the Secured Party may deem appropriate, (a) an Amendment to this Agreement adding a
description of such Intellectual Property to Schedule 1 and (b) any other agreements, instruments, documents and papers as the Secured Party may request to evidence the Secured Party’s lien on such Intellectual Property. 
  
 5.2 Subject to Section 5.1 hereof, the Borrower shall take all necessary
actions to maintain and pursue each application, to obtain the relevant registration, and to maintain the registration of all of the Intellectual Property that is material to the conduct of the Borrower’s business with the United States Patent
and Trademark Office, the United States Copyright 
  

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 Office, or other appropriate filing office or agency in which registration is necessary to protect its rights therein,
including the filing of applications for renewal, affidavits of use, affidavits of noncontestability and opposition and interference and cancellation proceedings. 
  
 5.3 In the event that any of the Borrower’s rights under any Intellectual Property are infringed, misappropriated or
diluted by a third party, the Borrower (a) shall notify the Secured Party promptly after it learns thereof, (b) unless the Borrower shall reasonably determine that such Intellectual Property is not material to the conduct of its business, shall
promptly sue such party for infringement, misappropriation or dilution and recover any and all damages for such infringement, misappropriation or dilution, and (c) shall take such other actions as the Borrower shall reasonably deem appropriate under
the circumstances to protect such Intellectual Property. 
  
 5.4
The Borrower shall promptly notify the Secured Party, in writing, of any suit, action or proceeding brought against it relating to, concerned with or affecting the Intellectual Property or infringement of or interference with another patent,
trademark or copyright which, if determined adversely, is likely to have a material adverse effect and shall, upon request by the Secured Party, deliver to the Secured Party a copy of all pleadings, papers, orders, or decrees theretofore or
thereafter filed in any such suit, action or proceeding, and shall keep the Secured Party fully advised and informed, in writing, of the progress of any such suit, action or proceeding. 
  
 5.5 The Borrower shall notify the Secured Party immediately if it knows or has reason to know (a) that any application or
registration relating to any Intellectual Property that is material to the conduct of its business may become abandoned or dedicated or (b) that there has been or likely may be an adverse determination or development (including the institution of,
or any adverse determination or development in, any proceeding in the United States Patent and Trademark Office, the United States Copyright Office, or any court) regarding (i) its ownership of any Intellectual Property that is material to the
conduct of its business, (ii) its right to register such Intellectual Property, or (iii) its right to keep and maintain such Intellectual Property. 
  
 5.6 The Borrower hereby consents to the filing of this Agreement or a short form thereof, and of any financing statement reflecting the terms of this
Agreement, with the United States Patent and Trademark Office, the United States Copyright Office or any office or agency in the United States, or any other country or any political subdivision thereof, including the State of Delaware, for the
purpose of giving notice of, and perfecting, Secured Party’s security interest in and to the Intellectual Property. The Borrower shall also execute short forms of this Agreement with respect to each of Patents and Trademarks, in substantially
the form attached hereto as Exhibits A-1 and A-2. The Borrower shall, upon Secured Party’s request, pay and reimburse to Secured Party all of Secured Party’s reasonable fees and expenses incurred in connection with any such filing and any
required amendments thereto (including applicable filing fees and professional costs). 
  
 5.7 The Borrower shall promptly notify Secured Party of any material new Intellectual Property that is acquired by the Borrower after the date hereof, which notice shall specify the nature and identity of such
Intellectual Property with such detail as is reasonably necessary for the Borrower to make additional filings of the type contemplated herein. 
  

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 5.8 The Borrower hereby agrees to indemnify and hold harmless Secured Party, and each of its officers,
directors, employees, agents and affiliates (collectively, the “Indemnified Parties”) from any and all costs, liabilities, or expenses (including reasonable attorneys’ fees) (collectively, “Losses”) that any of
such Indemnified Parties may incur as a result of, or arising out of (i) any breach by the Borrower of its representations, warranties or covenants hereunder, or (ii) any of the rights granted to Secured Party hereunder, including without
limitation, any Losses that any Indemnified Party may incur as a result of being named as a necessary party to any lawsuit challenging the validity of any of the Intellectual Property. 
  
 5.9 The Borrower shall not directly or indirectly, whether voluntarily, involuntarily, by operation of law or otherwise (i)
sell, assign, transfer, exchange, lease, lend, grant any option with respect to or dispose of any of the Intellectual Property or any of the Borrower’s rights therein, nor (ii) create or permit to exist any lien on or with respect to any of the
Intellectual Property, except for the lien in favor of the Secured Party. The inclusion of “proceeds” as a component of the Intellectual Property shall not be deemed a consent by the Secured Party to any sale, assignment, transfer,
exchange, lease, loan, granting of an option with respect to or disposition of all or any part of the Intellectual Property. 
  
 5.10 The Borrower shall not cause or allow anything to be done which might impair, or fail to do anything necessary or advisable in order to preserve, the
value of any item of Intellectual Property, unless the Borrower shall reasonably determine that such item of Intellectual Property is not material to the conduct of its business, and the security interests of the Secured Party therein. 

 
 6. AGENT’S APPOINTMENT AS ATTORNEY-IN-FACT. Upon the
occurrence and during the continuance of an Event of Default (as described in Section 7 below), the Borrower hereby authorizes and empowers the Secured Party to make, constitute and appoint any officer or agent of the Secured Party, as the Secured
Party may select in its exclusive discretion, as the Borrower’s true and lawful attorney-in-fact, with the power to endorse its name on all applications, documents, papers and instruments necessary for the Secured Party (a) to use the
Intellectual Property, (b) to grant or issue to any third party a license or, to the extent permitted by an applicable License, a sublicense, whether general, specifically or otherwise and whether on an exclusive or non-exclusive basis, of any
Intellectual Property throughout the world on such terms and conditions and in such manner as the Secured Party shall, in its sole discretion, determine, or (c) to assign, pledge, convey or otherwise transfer title in or dispose of the Intellectual
Property to any third person. The Borrower hereby ratifies all that such attorney shall lawfully do or cause to be done by virtue hereof. This power of attorney shall be irrevocable for the terms of this Agreement. 
  
 7. Events of Default. The breach of this Agreement or occurrence of
any Event of Default (as defined in any Funding Document) (an “Event of Default”), which Event of Default is not cured within the applicable cure period provided herein or therein, if any, shall constitute an event of default
hereunder. 
  

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 8. Remedies upon Default. Upon the occurrence of any Event of Default hereunder, the Secured Party
may exercise, in addition to all other rights and remedies of the Secured Party hereunder or at law or in equity, any and all of the following rights and remedies, all of which shall be cumulative and not mutually exclusive: 
  
 8.1 Use of Trade Names, Etc. The Secured Party may use in connection
with any assembly or disposition of the Intellectual Property, any trademark, trade name, trade style, copyright, patent right, technical process or other proprietary right used or utilized by Borrower. 
  
 8.2 Other Rights Against Borrower Hereunder. The Secured Party may
exercise in respect of the Intellectual Property, in addition to other rights and remedies provided for herein or otherwise available to it, all the rights and remedies of a secured party under the Code, and the Secured Party may, but shall not be
required to, also without notice except as specified below sell the Intellectual Property or any part thereof in one or more parcels at public or private sale, for cash, on credit or for future delivery, and upon such other terms as the Secured
Party in its sole and absolute discretion may deem commercially reasonable. The Borrower agrees that, to the extent notice of sale shall be required by law, at least ten (10) days’ notice to Borrower of the time and place of any public sale or
the time after which any private sale is to be made shall constitute reasonable notification. The Secured Party shall not be obligated to make any sale of Intellectual Property regardless of notice of sale having been given. The Secured Party may
adjourn any public or private sale from time to time by announcement at the time and place fixed therefor, and such sale may, without further notice, be made at the time and place to which it was so adjourned. The Borrower hereby waives any claims
against the Secured Party arising by reason of the fact that the price at which any Intellectual Property may have been sold at such a private sale was less than the price which might have been obtained at a public sale, even if the Secured Party
accepts the first offer received and does not offer such Intellectual Property to more than one offeree, and in all events such sale shall be deemed to be commercially reasonable. At any such public or private sale, the Secured Party may be the
purchaser of the Intellectual Property. 
  
 9. Application of
Proceeds. All cash proceeds received by the Secured Party in respect of any sale of, collection from, or other realization upon all or any part of the Intellectual Property may, in the direction of the Secured Party, be held by the Secured Party
as collateral for, and/or then or at any time thereafter applied in whole or in part by the Secured Party against all or any part of the Secured Obligations in such order as the Secured Party shall elect. Any surplus of such cash or cash proceeds
held by the Secured Party and remaining after payment in full of all the Secured Obligations shall be paid over to the Borrower or to whomsoever may be lawfully entitled to receive such surplus. In a like manner, the Borrower shall pay to the
Secured Party, without demand, whatever amount of the Secured Obligations remains unpaid after the Intellectual Property has been sold and the proceeds applied as aforesaid. 
  
 10. GRANT OF LICENSE TO USE INTELLECTUAL PROPERTY. For the purpose of enabling the Secured Party to exercise rights
and remedies hereunder or under the Borrower Security Agreement at such time as the Secured Party shall be lawfully entitled to do so, the Borrower hereby grants to the Secured Party an irrevocable, non-exclusive license (exercisable without payment
of royalty or other compensation to the Borrower) (a) to use, license or sublicense any of the Intellectual Property now owned or hereafter acquired by the 
  

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 Borrower and wherever the same may be located and (b) to have access to all media in which any of the licensed items may
be recorded or stored and all computer and automatic machinery software and programs used for the compilation or printout thereof. 
  
 11. USE AND PROTECTION OF INTELLECTUAL PROPERTY. Notwithstanding anything to the contrary contained herein, unless an Event of Default has occurred
and is continuing, the Borrower may continue to use, exploit, license, enjoy and protect the Intellectual Property in the ordinary course of its business, and the Secured Party shall from time to time execute and deliver, upon the reasonable written
request of the Borrower, any and all instruments, certificates or other documents, in the form so requested, that in the reasonable judgment of the Borrower are necessary or appropriate to permit the Borrower to continue to do so. 
  
 12. TERMINATION AND RELEASE. On the payment and performance in full of
all of the Secured Obligations, the rights of the Secured Party hereunder shall terminate and the Secured Party shall execute and deliver to the Borrower, at the Borrower’s sole expense, all releases, powers of attorney other instruments as may
be necessary or proper to terminate the lien granted to the Secured Party hereunder and to revest in the Borrower full title to the Intellectual Property, subject to any disposition thereof which may have been made by the Secured Party pursuant
thereto, all without recourse or warranty. 
  
 13.
INCORPORATION OF SECURITY AGREEMENTS. The security interests granted pursuant to this Agreement are granted in conjunction with the security interests granted to the Secured Party pursuant to the Borrower Security Agreement. The Borrower
hereby acknowledges and affirms that the rights and remedies of the Secured Party with respect to the continuing first priority security interest in the Intellectual Property made and granted hereby are more fully set forth in the Borrower Security
Agreement, the terms and provisions of which are incorporated by reference herein as if fully set forth herein. In the event of any conflict between the terms hereof and the Borrower Security Agreement, the terms set forth in the Borrower Security
Agreement shall control. 
  
 14. MISCELLANEOUS. 

 
 14.1 Counterparts. This Agreement may be executed in any number of
counterparts, all of which taken together shall constitute one and the same instrument and any of the parties to this Agreement may execute this Agreement by signing any such counterpart. Facsimile and electronically copied signatures on this
Agreement shall be deemed the equivalent of original signatures. 
  
 14.2 Governing Law. This Agreement shall be governed by and construed under the internal laws of the State of California without regard to the conflicts of laws provisions. 
  

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 14.3 Jurisdiction. 
  
 14.3.1 The Borrower hereby: 
  
 (a) irrevocably submits to the jurisdiction of the courts within the County of Los Angeles, California and to the jurisdiction of the United States
District Court for the Central District of California for the purposes of any action or proceeding arising out of or relating to this Agreement or the subject matter hereof and brought by any other party; 
  
 (b) waives and agrees not to assert, by way of motion, as a defense or
otherwise, in any such action or proceeding, any claim that (A) it is not personally subject to the jurisdiction or such courts, (B) the action or proceeding is brought in an inconvenient forum or (C) the venue of the action or proceeding is
improper; and 
  
 (c) agrees that, notwithstanding any right or
privilege it may possess at any time, such party and its property are generally subject to suit on account of the obligations assumed by it hereunder. 
  
 14.3.2 Any party may at its option bring any action or other proceeding arising out of or relating to this Agreement or the subject matter hereof against
any other party or any of its assets in the courts of any jurisdiction or place where such other party or such assets may be found or where such other party may be subject to personal jurisdiction, and may effect service of process as provided under
any applicable law. 
  
 14.3.3 Each party hereby acknowledges that
this is a commercial transaction, that the foregoing provisions for consent to jurisdiction and service of process have been read, understood and voluntarily agreed to by each party and that by agreeing to such provisions each party is waiving
important legal rights. 
  
 15. Notices. All payments,
notices, requests, demands or other communications to the respective parties hereto shall be in writing and shall be deemed to have been given when received by the party to which sent either by facsimile or ten (10) days after deposit in the mail by
certified or registered mail with postage prepaid and shall be addressed to Secured Party at Flat 2A, Palm Court, 55 Robinson Road, Mid-Levels, Hong Kong, SAR, China, Fax: 852-2964-0458, Attn: Robert Cheney with a courtesy copy to Loeb & Loeb,
10100 Santa Monica Blvd., Suite 2200, Los Angeles, California, 90067, Fax: (310) 282-2200, Attn: Curtis Bajak, Esq. and to Borrower at 47266 Benecia Street, Fremont, California 94538-7330, Fax: (510) 657-4476, Attn: Gabriel B. Vegh, Chairman &
CEO with a courtesy copy to Sichenzia Ross Friedman Ference LLP, 1065 Avenue of the Americas, New York, New York, 10018, Fax: (212) 930-9725, Attn: Richard A. Friedman, Esq. 
  

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 IN WITNESS WHEREOF, the Borrower has executed this Agreement for Security of Patents, Trademarks and
Copyrights as of the date first set forth above. 
  

			
	BORROWER:
	
	CARDIMA, INC.
		
	By:	 	 /s/ Gabriel B. Vegh

	Name:	 	Gabriel B. Vegh
	Title:	 	Chief Executive Officer
	
	SECURED PARTY:
	
	APIX INTERNATIONAL LIMITED
		
	By:	 	 /s/ Victor Lee

	Name:	 	Victor Lee
	Title:	 	Director

  

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 SCHEDULE 1 
  

Copyrights 
  

					
	     Title    

	 	 Registration Number

	 	 Registration Date

	 NONE
	 	 	 	 

  

 12 

 SCHEDULE 1 (CONTINUED) 
  
 Patents 
  

					
	 TITLE

	  	 SERIAL/PATENT
 NO.

	  	 APPLICATION/ISSUE
 DATE

	INTRAVASCULAR SENSING DEVICE	  	5509411	  	04/23/1996
			
	METHOD AND SYSTEM FOR USING MULTIPLE INTRAVASCULAR SENSING DEVICES TO DETECT ELECTRICAL ACTIVITY	  	5706809	  	01/13/1998
			
	INTRAVASCULAR METHOD AND SYSTEM FOR TREATING ARRHYTHMIA	  	5645082	  	07/08/1997
			
	CATHETER WITH DEFLECTABLE DISTAL SECTION	  	5882333	  	03/16/1999
			
	SHEATHED MULTIPOLAR CATHETER AND MULTIPOLAR GUIDEWIRE FOR SENSING CARDIAC ELECTRICAL ACTIVITY	  	5549109	  	08/27/1996
			
	HIGH RESOLUTION INTRAVASCULAR SIGNAL DETECTION	  	5699796	  	12/23/1997
			
	OVER-THE-WIRE EP CATHETER	  	5782760	  	07/21/1998
			
	INTRAVASCULAR SYSTEM FOR TREATING ARRHYTHMIA	  	5685322	  	11/11/1997
			
	HIGH RESOLUTION INTRAVASCULAR SIGNAL DETECTION	  	5957842	  	09/28/1999
			
	INTRAVASCULAR RF OCCLUSION CATHETER	  	6120499	  	09/19/2000
			
	LINEAR ABLATION ASSEMBLY	  	5863291	  	01/26/1999
			
	INTRAVASCULAR SENSING DEVICE	  	5682885	  	11/04/1997
			
	LINEAR ABLATION DEVICE AND ASSEMBLY	  	6063077	  	05/16/2000
			
	INTRAVASCULAR METHOD AND SYSTEM FOR TREATING ARRHYTHMIA	  	5881732	  	03/16/1999
			
	INTRALUMINAL DELIVERY OF TISSUE LYSING MEDIUM	  	5766152	  	06/16/1998
			
	INTRAVASCULAR SENSING DEVICE	  	6141576	  	10/31/2000
			
	HIGH RESOLUTION INTRAVASCULAR SIGNAL DETECTION	  	5711298	  	01/27/1998
			
	OVER-THE-WIRE EP CATHETER	  	5895355	  	04/20/1999
			
	GUIDING CATHETER FOR THE CORONARY SINUS	  	5775327	  	07/07/1998
			
	A METHOD OF TREATING USING AN OVER-THE-WIRE EP CATHETER	  	6002956	  	12/04/1999

  

 13 

					
	 TITLE

	  	 SERIAL/PATENT
 NO.

	  	 APPLICATION/ISSUE
 DATE

	INTRAVASCULAR SENSING DEVICE	  	5967978	  	10/19/1999
			
	INTRAVASCULAR METHOD AND DEVICE FOR OCCLUDING A BODY LUMEN	  	5960796	  	10/05/1999
			
	PROTECTED PIN CONNECTOR FOR AN ELECTROPHYSIOLOGY CATHETER	  	6167291	  	12/26/2000
			
	EP CATHETER	  	6251107	  	06/26/2001
			
	LINEAR ABLATION ASSEMBLY	  	6302880	  	10/16/2001
			
	SURGICAL ABLATION TOOL	  	6332881	  	12/25/2001
			
	ELECTROPHYSIOLOGICAL DEVICE FOR THE ISTHMUS	  	6746446	  	06/08/2004
			
	LINEAR ABLATION ASSEMBLY	  	6814732	  	11/09/2004
			
	INTRALUMINAL DELIVERY OF TISSUE LYSING MEDIUM	  	6113584	  	09/05/2000
			
	METHOD AND SYSTEM FOR USING MULTIPLE INTRAVASCULAR SENSING DEVICES TO DETECT ELECTRICAL ACTIVITY	  	6088610	  	07/11/2000
			
	GUIDING CATHETER FOR THE CORONARY SINUS	  	6021340	  	02/01/2000
			
	HIGH RESOLUTION INTRAVASCULAR SIGNAL DETECTION	  	5645064	  	07/08/1997
			
	HELICALLY SHAPED ELECTROPHYSIOLOGY CATHETER	  	09/847181	  	05/01/2001
			
	TI-CHANNNEL RF ENERGY DELIVERY WITH COAGULUM REDUCTION	  	10/333113	  	01/14/2003
			
	SYSTEM AND METHOD FOR MULTI-CHANNEL RF ENERGY DELIVERY WITH COAGULUM REDUCTION	  	10/846260	  	05/14/2004
			
	LINEAR ABLATION ASSEMBLY	  	10/980699	  	11/03/2004
			
	HELICALLY SHAPED ELECTROPHYSIOLOGY CATHETER	  	09/901856	  	07/09/2001
			
	LINEAR ABLATION ASSEMBLY	  	10/909668	  	08/02/2004

  

 14 

 SCHEDULE 1 (CONTINUED) 
  
 Trademarks 
  

					
	 Description

	 	 Registration/
 Serial Number

	 	 Registration/
 Application Date

	 REVELATION HELIX
	 	76/236378	 	04/06/2001
	 ITEMP
	 	78/419932	 	05/17/2004
	 ACORE
	 	78/494919	 	10/05/2004
	 HEARTCORE
	 	78/494925	 	10/05/2004
	 C CARDIMA
	 	2163922	 	06/09/1998
	 VUEPORT
	 	2219436	 	01/19/1999
	 NAVIPORT
	 	2257539	 	06/29/1999
	 EP SELECT
	 	2448063	 	05/01/2001
	 REVELATION
	 	2536925	 	02/05/2002
	 INTELLITEMP
	 	2678410	 	01/21/2003
	 PATHFINDER
	 	2806629	 	01/20/2004
	 NAVABLATOR
	 	2919209	 	01/18/2005

  

 15 

 Exhibit A-1 
  
 Short Form Patent Security Agreement 
  

 16 

 Exhibit A-2 
  
 Short Form Trademark Security Agreement 
  

 17Restricted Stock Agreement - Jeffrey S. Stauffer

 Exhibit 10.1 
  
 RESTRICTED STOCK AGREEMENT 
  
 THIS AGREEMENT is made between Jeffrey S. Stauffer (the “Employee”) and Pan Pacific Retail Properties, Inc. (the “Company”) as of
August 15, 2005. 
  
 RECITALS 
  
 (1) Pursuant to the Company’s 2000 Stock Incentive Plan, the Company has
granted to Employee an award of 15,000 shares of common stock of the Company (the “Shares”) effective as of January 1, 2005 (the “Effective Date”). 
  
 (2) As a condition to Employee’s grant of the Shares, Employee must execute this Restricted Stock Agreement (this
“Agreement”), which sets forth the rights and obligations of the parties with respect to the Shares. 
  
 1. Forfeiture; Vesting. 
  
 (a) If Employee’s employment or consulting relationship with the Company is terminated for any reason other than (i) by the Company
without “cause” (as defined in the Second Amended and Restated Employment Agreement between Employee and the Company, dated as of October 30, 2001, as amended on March 24, 2005 (the “Employment Agreement”)), or (ii) by Employee
for “good reason” (as defined in the Employment Agreement), including, but not limited to, for cause, death, or disability, all unvested Shares as of the date of such termination shall immediately be forfeited and shall be transferred to
the Company; provided that as to Shares that would have vested at the subsequent Vesting Date (as hereinafter defined), such Shares shall vest on a prorated basis based on the number of days elapsed from the prior Vesting Date through the date of
termination and rounding down to the nearest Share, provided that the Company has met the requisite Performance Goal (as hereinafter defined). After the third Vesting Date, any unvested Shares remaining that would have vested on January 1, 2015
pursuant to Subsection 1(e) shall vest on a prorated basis based on the number of days elapsed from the third Vesting Date through the date of termination and rounding down to the nearest Share. 
  
 (b) Subject to Subsections 1(c), (d), (e) and (f), the
Shares issued hereunder shall become vested over three (3) years in one-third installments on each of the first three anniversaries of the Effective Date (each such anniversary, a “Vesting Date” and each twelve-month period between the
Effective Date and the first Vesting Date, or the twelve-month period between Vesting Dates, a “Vesting Period”), conditioned upon (i) Employee’s continued employment as of each such Vesting Date and (ii) the Company achieving its
Performance Goal (as hereinafter defined). 
  
 (c) Notwithstanding Subsection 1(b), upon the attainment of the Performance Goal for a particular Vesting Date, one-third of the Shares (assuming Employee’s continued employment as of such Vesting Date) shall become vested. 

 (d) Any unvested Shares subject to vesting on a prior Vesting Date shall become vested on
a subsequent Vesting Date if the Company has met the Performance Goal, measured on a cumulative average basis, for each of the prior Vesting Dates. 
  
 For example, if on the first and second Vesting Dates, the Performance Goal for each of these Vesting Dates is not met, the Shares subject to vesting on
each of these Vesting Dates (1/3 of the Shares per Vesting Date) will remain unvested. If, on the third Vesting Date the Performance Goal for this Vesting Date is met, the Shares subject to vesting on this Vesting Date (1/3 of the Shares) will vest.
In addition, if on the third Vesting Date, the Company’s cumulative average increase in two of the three following measures is in the top 25% and cumulative average increase in one of the three following measures is in the top 50%, of the
cumulative average increase of the companies listed on Schedule A, the unvested Shares subject to Vesting on the first and second Vesting Dates will become vested: 
  

	 	1.	Funds From Operations (“FFO”) growth per share for the three prior Vesting Periods; 

  

	 	2.	Same-store net operating income for the three prior Vesting Periods; and 

  

	 	3.	Total Return (as hereinafter defined) for the three prior Vesting Periods. 

  
 “Performance Goal” shall mean the achievement by the Company for a Vesting Period of placement in the top 25% with respect to two of the three
following measures and placement in the top 50% with respect to one of the three following measures, of the companies listed on Schedule A hereto: 
  

	 	1.	Increase in FFO growth per share over the Vesting Period; 

  

	 	2.	Percentage increase in same-store net operating income for the Vesting Period; and 

  

	 	3.	Total Return for the Vesting Period. 

  
 “Total Return” for a specified period shall mean (a) the amount of appreciation of Company common stock and dividends paid on Company common
stock (including the re-investment of dividends on the ex-dates) during such period divided by (b) the closing price on the day prior to the beginning of the current Vesting Period. 
  
 (e) Notwithstanding Subsections 1(b), (c), (d) and (f), in the event any portion of the Shares remain
unvested on January 1, 2015, such unvested Shares will become vested on such date (assuming Employee’s continued employment as of such date). 
  
 (f) Notwithstanding Subsections 1(b), (c), (d) and (e), in the case of a “Change in Control” (as hereinafter defined), the
Shares shall become fully vested and shall cease to be subject to forfeiture under Subsection 1(a) after such event. For 

  

 2 

 
purposes of this Agreement, “Change in Control” shall mean the occurrence of any of the following events: 
  
 (i) the individuals constituting the Board as of the date of
the initial public offering of common stock of the Company (the “Incumbent Board”) cease for any reason to constitute at least a majority of the Board; provided, however, that if the election, or nomination for election by the
Company’s stockholders, of any new director was approved by a vote of at least a majority of the Incumbent Board, such new director shall be considered a member of the Incumbent Board; 
  
 (ii) an acquisition of any voting securities of the Company
(the “Voting Securities”) by any “person” (as the term “person” is used for purposes of Section 13(d) or Section 14(d) of the Securities Exchange Act of 1934, as amended (the “1934 Act”)), immediately after
which such person has “beneficial ownership” (within the meaning of Rule 13d-3 promulgated under the 1934 Act) of 20% or more of the combined voting power of the Company’s then outstanding Voting Securities; or 
  
 (iii) approval by the stockholders of the Company of:

  
 (A) a merger, consolidation, share exchange
or reorganization of the Company, unless the stock holders of the Company, immediately before such merger, consolidation, share exchange or reorganization, own, directly or indirectly immediately following such merger, consolidation, share exchange
or reorganization, at least 80% of the combined voting power of the outstanding voting securities of the corporation that is the successor in such merger, consolidation, share exchange or reorganization (the “Surviving Company”) in
substantially the same proportion as their ownership of the Voting Securities immediately before such merger, consolidation, share exchange or reorganization; provided, however, that a merger, consolidation, share exchange or reorganization of the
Company shall not constitute a “Change in Control” if such merger, consolidation, share exchange or reorganization of the Company is approved by the Board and is recommended by the Chief Executive Officer to the Board for its approval; or

  
 (B) a complete liquidation or dissolution of
the Company; or 
  
 (iv) an agreement for the
sale or other disposition of all or substantially all of the assets of the Company. 
  
 2. Transferability of the Shares; Escrow. 
  
 (a) With the exception of Shares which have been forfeited and required to be transferred to the Company pursuant to this Agreement, no
unvested Shares nor any interest or right therein or part thereof shall be liable for the debts, contracts or engagements of Employee or his successors in interest or shall be subject to disposition by transfer, alienation, anticipation, pledge,
encumbrance, assignment or any other means 

  

 3 

 
whether such disposition be voluntary or involuntary or by operation of law by judgment, levy, attachment, garnishment or any other legal or equitable
proceedings (including bankruptcy), and any attempted disposition thereof shall be null and void and of no effect. Employee hereby authorizes and directs the secretary of the Company, or such other person designated by the Company, to transfer the
unvested Shares that have been forfeited to the Company pursuant to this Agreement. 
  
 (b) To insure the availability for delivery of Employee’s unvested Shares upon forfeiture to the Company, Employee hereby appoints
the secretary of the Company, or any other person designated by the Company as escrow agent, as his attorney-in-fact to assign and transfer unto the Company, such unvested Shares, if any, forfeited to the Company pursuant to Section 1 and shall,
upon execution of this Agreement, deliver and deposit with the secretary of the Company, or such other person designated by the Company, the Share certificates representing the unvested Shares, together with the stock assignment duly endorsed in
blank, attached hereto as Exhibit 1. The unvested Shares and stock assignment shall be held by the secretary in escrow, pursuant to the Joint Escrow Instructions of the Company and Employee attached as Exhibit 2 hereto, until such
unvested Shares are vested, or until such time as this Agreement no longer is in effect. As a further condition to the Company’s obligations under this Agreement, the spouse of the Employee, if any, shall execute and deliver to the Company the
Consent of Spouse attached hereto as Exhibit 3. Upon vesting of the unvested Shares, the escrow agent shall promptly deliver to the Employee the certificate or certificates representing such Shares in the escrow agent’s possession
belonging to the Employee, and the escrow agent shall be discharged of all further obligations hereunder; provided, however, that the escrow agent shall nevertheless retain such certificate or certificates as escrow agent if so required pursuant to
other restrictions imposed pursuant to this Agreement. 
  
 (c) The Company, or its designee, shall not be liable for any act it may do or omit to do with respect to holding the Shares in escrow and while acting in good faith and in the exercise of its judgment. 
  
 (d) Transfer or sale of the Shares is subject to
restrictions on transfer imposed by any applicable state and federal securities laws. Any transferee shall hold such Shares subject to all the provisions hereof and shall acknowledge the same by signing a copy of this Agreement. 
  
 3. Termination. This Agreement shall terminate upon the later of (i)
an event of forfeiture, as described in Subsection 1(a) herein, or (ii) the third anniversary of the Effective Date. 
  
 4. Ownership, Voting Rights, Duties. This Agreement shall not affect in any way the ownership, voting rights or other rights or duties of Employee,
except as specifically provided herein. Employee shall have the rights and privileges of a stockholder of the Company in respect of the Shares (including any dividends paid on shares of Company common stock), until termination of this Agreement. The
grant to Employee of the Shares shall be subject to the 

  

 4 

 
restrictions on ownership and transfer set forth in the Company’s Amended and Restated Articles of Incorporation. 
  
 5. Legends. The Share certificate evidencing the Shares issued
hereunder shall be endorsed with the following legend (in addition to any legend required under applicable federal and state securities laws and the Company’s charter): 
  
 THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO CERTAIN RESTRICTIONS UPON TRANSFER AND FORFEITURE AS SET FORTH IN
AN AGREEMENT BETWEEN THE COMPANY AND THE HOLDER OF THE SHARES, A COPY OF WHICH IS ON FILE WITH THE SECRETARY OF THE COMPANY. 
  
 6. Adjustment for Stock Split. All references to the number of Shares in this Agreement shall be appropriately adjusted to reflect any stock split,
stock dividend or other change in the Shares which may be made by the Company after the date of this Agreement. 
  
 7. Notices. Notices required hereunder shall be given in person or by registered mail to the address of Employee shown on the records of the
Company, and to the Company at its principal executive office. 
  
 8. Survival of Terms. This Agreement shall apply to and bind Employee and the Company and their respective permitted assignees and transferees, heirs, legatees, executors, administrators and legal successors. 
  
 9. No Section 83(b) Elections. Because such election could have an
impact on the Company’s ability to continue as a real estate investment trust under the Internal Revenue Code of 1986, as amended (the “Code”), Employee agrees that Employee will not file an election under Section 83(b) of the Code
with respect to the Shares. If Employee does file a Section 83(b) election then such election shall cause the immediate forfeiture of all of the Shares, without proration (notwithstanding anything in Section 1 to the contrary). 
  
 10. Representations. Employee has reviewed with his own tax advisors
the federal, state, local and foreign tax consequences of the grant to him of the Shares and the transactions contemplated by this Agreement. Employee is relying solely on such advisors and not on any statements or representations of the Company or
any of its agents. Employee understands that he (and not the Company) shall be responsible for his own tax liability that may arise as a result of the grant of the Shares or the transactions contemplated by this Agreement. 
  
 11. Governing Law. This Agreement shall be governed by and construed
and enforced in accordance with California law. 
  
 12.
Resolution of Disputes. It is understood and agreed between the Employee and the Company that, any and all claims, grievances, demands, controversies, causes of actions or disputes of any nature whatsoever (including but not limited to
interpretation of this Agreement or any provision contained herein) (hereinafter “Disputes”), arising out of, in connection with, or in relation to the arbitrability of any Disputes under this Agreement shall be resolved in 

  

 5 

 
accordance with a two-step dispute resolution process administered by the San Diego, California office of Judicial Administration & Mediation Services,
Inc. (“JAMS”) involving, first, mediation before a retired judge from the JAMS panel, followed, if necessary by final and binding arbitration before the same, or if requested by either the Employee or the Company, another JAMS panelist.
Such dispute resolution process shall be confidential and shall be conducted in accordance with California Evidence Code Section 1119. In the event the Dispute is resolved through mediation, the parties shall bear their respective costs incurred in
connection with the mediation procedures, except that the parties shall equally share the fees and expenses of the mediator and the costs of the facility for the hearing. In the event the Dispute is resolved through arbitration, the costs incurred
in connection with the arbitration procedures, including the costs incurred by the prevailing party (including reasonable attorneys’ fees) will be borne by the non-prevailing party. The arbitrator will determine which party is the
non-prevailing party for purposes of this Section 12. 
  
 Employee
represents that he has read this Agreement and is familiar with its terms and provisions. 
  
 IN WITNESS WHEREOF, this Agreement is deemed made as of the date first set forth above. 
  

			
	 “COMPANY”

	
	 PAN PACIFIC RETAIL PROPERTIES, INC.

	
	 /s/ JOSEPH B. TYSON

	By:	 	 JOSEPH B. TYSON

		
	 Title:
	 	Executive Vice President, Chief Financial
Officer and Secretary
	
	 “EMPLOYEE”

	
	 /S/ JEFFREY S. STAUFFER

	 JEFFREY S. STAUFFER

	
	 Address:

	 
	 
	 

  

 6 

 SCHEDULE A 

	1.	Kimco Realty Corporation 

  

	2.	Developers Diversified Realty 

  

	3.	Regency Realty Corporation 

  

	4.	Equity One, Inc. 

  

	5.	Weingarten Realty Investors 

  

	6.	Federal Realty Investment Trust 

  

	7.	New Plan Excel Realty Trust 

  

	8.	Heritage Property Investment Trust, Inc. 

  
 EXHIBIT 1 

 
 ASSIGNMENT SEPARATE FROM CERTIFICATE 
  
 FOR VALUE RECEIVED I, Jeffrey S. Stauffer, hereby sell, assign and transfer
unto
                                        
                                        
                                
(                            ) Shares of the Common Stock of Pan Pacific Retail Properties, Inc.
standing in my name on the books of said corporation represented by Certificate No.                          herewith and
do hereby irrevocably constitute and appoint                              to transfer the said stock
on the books of the within named corporation with full power of substitution in the premises. 
  
 This Stock Assignment may be used only in accordance with the Restricted Stock Agreement between Pan Pacific Retail Properties, Inc. and the undersigned dated
                            , 2005. 
  

									
				
	 Dated:
                    , 2005
	 	 	 	 Signature:
	 	 
	 	 	 	 	 	 	 	 	 JEFFREY S. STAUFFER

  
 INSTRUCTIONS: Please do not fill in
any blanks other than the signature line. The purpose of this assignment is to enable the Company to transfer the Shares upon forfeiture as set forth in the Agreement, without requiring additional signatures on the part of the Employee. 

  
 EXHIBIT 2 

 
 JOINT ESCROW INSTRUCTIONS 
  
                     , 2005 
  
 Corporate Secretary 
 Pan Pacific Retail Properties, Inc. 
 1631-B South Melrose Drive 
 Vista, California 92081 
  
 Dear Corporate Secretary: 
  
 As Escrow Agent for both Pan Pacific Retail Properties, Inc. (the “Company”), and the undersigned employee of the
Company (the “Employee”), you are hereby authorized and directed to hold the documents delivered to you pursuant to the terms of that certain Restricted Stock Agreement (“Agreement”) between the Company and the undersigned, in
accordance with the following instructions: 
  
 1. In the event
the Company and the Employee jointly advise you that a forfeiture has occurred as set forth in the Agreement (a “Forfeiture”), the Company shall give to Employee and you a written notice specifying the number of Shares to be transferred to
the Company. In the event the Company and Employee are in disagreement as to whether a Forfeiture has occurred, you shall retain in escrow the Shares subject to such disagreement, pending the results of the mediation or arbitration proceedings
provided for in Section 12 of the Agreement. Upon resolution of such disagreement pursuant to Section 12 of the Agreement, the Company shall provide you with a copy of any written decision or order by the mediator or arbitrator. Employee and the
Company hereby irrevocably authorize and direct you to effect the transfer contemplated by such notice, written decision or order. 
  
 2. Upon receipt of such notice, written decision or order you are directed (a) to date the stock assignments necessary for the transfer in question, (b)
to fill in the number of Shares being transferred, and (c) to deliver the same, together with the certificate evidencing the Shares of stock to be transferred to the Company. 
  
 3. Employee irrevocably authorizes the Company to deposit with you any certificates evidencing Shares of stock to be held by
you hereunder and any additions and substitutions to said Shares as defined in the Agreement. Employee does hereby irrevocably constitute and appoint you as Employee’s attorney-in-fact and agent for the term of this escrow to execute with
respect to such securities all documents necessary or appropriate to make such securities negotiable and to complete any transfer herein contemplated, including but not limited to the filing with any applicable state blue sky authority of any
required applications for consent to, or notice of transfer of, the securities. Subject to the provisions of this paragraph 3, Employee shall exercise all rights and privileges of a stockholder of the Company while the stock is held by you.

 4. Upon written request of the Employee, on any vesting date as of which the Company has attained the
performance goals set forth in the Agreement, you will deliver to Employee a certificate or certificates representing so many Shares of stock as are not then subject to forfeiture. Within 120 days after cessation of Employee’s continuous
employment by or services to the Company, or any parent or subsidiary of the Company, you will deliver to Employee a certificate or certificates representing the aggregate number of Shares held or issued pursuant to the Agreement and not forfeited
to the Company. 
  
 5. If at the time of termination of this
escrow you should have in your possession any documents, securities, or other property belonging to Employee, you shall deliver all of the same to Employee and shall be discharged of all further obligations hereunder. 
  
 6. Your duties hereunder may be altered, amended, modified or revoked only by
a writing signed by all of the parties hereto. 
  
 7. You shall be
obligated only for the performance of such duties as are specifically set forth herein and may rely and shall be protected in relying or refraining from acting on any instrument reasonably believed by you to be genuine and to have been signed or
presented by the proper party or parties. You shall not be personally liable for any act you may do or omit to do hereunder as Escrow Agent or as attorney-in-fact for Employee while acting in good faith, and any act done or omitted by you pursuant
to the advice of your own attorneys shall be conclusive evidence of such good faith. 
  
 8. You are hereby expressly authorized to disregard any and all warnings given by any of the parties hereto or by any other person or corporation, accepting only orders or process of courts of law or of any mediator
or arbitrator provided for in Section 12 of the Agreement, and are hereby expressly authorized to comply with and obey orders, judgments or decrees of any court or such mediator or arbitrator. In case you obey or comply with any such order, judgment
or decree, you shall not be liable to any of the parties hereto or to any other person, firm or corporation by reason of such compliance, notwithstanding any such order, judgment or decree being subsequently reversed, modified, annulled, set aside,
vacated or found to have been entered without jurisdiction. 
  
 9.
You shall not be liable in any respect on account of the identity, authorities or rights of the parties executing or delivering or purporting to execute or deliver the Agreement or any documents or papers deposited or called for hereunder.

  
 10. You shall not be liable for the lapse or curtailment of
any rights relating to these Joint Escrow Instructions, the Shares of stock held by you hereunder or any documents deposited with you as a result of any applicable statute of limitations or similar provision of state or federal law. 
  
 11. You shall be entitled to employ such legal counsel and other experts as
you may deem necessary properly to advise you in connection with your obligations hereunder, may rely upon the advice of such counsel, and may pay such counsel reasonable compensation therefor. 
  

 2 

 12. Your responsibilities as Escrow Agent hereunder shall terminate upon the earlier of (i) an event of
forfeiture or (ii) the third anniversary of the Effective Date of the Agreement or such later date as extended by mediation or arbitration as provided for in Section 12 of the Agreement, or the date upon which you shall cease to be an officer or
agent of the Company or upon which you shall resign by written notice to each party. In the event of the latter, the Company shall appoint a successor Escrow Agent. 
  
 13. If you reasonably require other or further instruments in connection with these Joint Escrow Instructions or obligations
in respect hereto, the necessary parties hereto shall join in furnishing such instruments. 
  
 14. It is understood and agreed that should any dispute arise with respect to the delivery and/or ownership or right of possession of the securities held by you hereunder, you are authorized and directed to retain in
your possession without liability to anyone all or any part of said securities until such disputes shall have been settled either by mutual written agreement of the parties concerned or by a final order, decree or judgment of a mediator or
arbitrator as provided for in Section 12 of the Agreement, or a court of competent jurisdiction after the time for appeal has expired and no appeal has been perfected, but you shall be under no duty whatsoever to institute or defend any such
proceedings. 
  
 15. Any notice required or permitted hereunder
shall be given in writing and shall be deemed effectively given upon personal delivery or upon deposit in the United States Post Office, by registered or certified mail with postage and fees prepaid, addressed to each of the other parties thereunto
entitled at the following addresses or at such other addresses as a party may designate by ten days’ advance written notice to each of the other parties hereto. 
  

			
	 COMPANY:
	 	Pan Pacific Retail Properties, Inc.
	 	 	1631-B South Melrose
	 	 	Vista, California 92081
	 	 	Attn: President
		
	EMPLOYEE:	 	 
	 	 	Jeffrey S. Stauffer
	 	 	_______________________________
	 	 	_______________________________
	 	 	_______________________________
		
	 ESCROW AGENT:
	 	Corporate Secretary
	 	 	Pan Pacific Retail Properties, Inc.
	 	 	1631-B South Melrose
	 	 	Vista, California 92081

  
 16. By signing these
Joint Escrow Instructions, you become a party hereto only for the purpose of said Joint Escrow Instructions; you do not become a party to the Agreement. 
  
 17. This instrument shall be binding upon and inure to the benefit of the parties hereto, and their respective successors and permitted assigns.

  

 3 

 18. These Joint Escrow Instructions shall be governed by, and construed and enforced in accordance with,
the laws of the State of California. 
  

			
	 PAN PACIFIC RETAIL PROPERTIES, INC.

		
	 By:
	 	 
		
	 Title:
	 	 
	
	 EMPLOYEE:

	
	 
	 JEFFREY S. STAUFFER

	
	 ESCROW AGENT:

	
	 
	 Corporate Secretary

  

 4 

  
 EXHIBIT 3 

 
 CONSENT OF SPOUSE 
  
 I,
                                , spouse of Jeffrey S. Stauffer, have read and
approve the foregoing Restricted Stock Agreement. In consideration of granting of the Shares to my spouse, set forth in the Restricted Stock Agreement, I hereby appoint my spouse as my attorney-in-fact in respect to the exercise of any rights under
the Restricted Stock Agreement and agree to be bound by the provisions of the Restricted Stock Agreement insofar as I may have any rights in said Restricted Stock Agreement or any Shares issued pursuant thereto under the community property laws or
similar laws relating to marital property in effect in the state of our residence as of the date of the signing of the foregoing Restricted Stock Agreement. 
  

					
	Dated:                     , 2005

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