EX-10.9 6 ex10_10.htm

INTELLECTUAL PROPERTY SECURITY AGREEMENT

        This Intellectual Property Security Agreement is entered into as of June
26, 2002 by and between SILICON VALLEY BANK (“Secured Party”) and TEGAL
CORPORATION (“Grantor”).

RECITALS

        A. Secured Party and Borrower are entering into that certain Loan and
Security Agreement by dated of even date herewith (as the same may be amended,
modified or supplemented from time to time, the “Loan Agreement”; capitalized
terms used herein which are not defined, have the meanings set forth in the Loan
Agreement).

        B. Pursuant to the terms of the Loan Agreement, Grantor has granted to
Secured Party a security interest in all of Grantor’s right, title and interest,
whether presently existing or hereafter acquired, in, to all Intellectual
Property and all other Collateral.

        NOW, THEREFORE, as collateral security for the payment and performance
when due of all of the Obligations, Grantor hereby grants, represents, warrants,
covenants and agrees as follows:

AGREEMENT

        1. Grant of Security Interest. To secure all of the Obligations, Grantor
grants and pledges to Secured Party a security interest in all of Grantor’s
right, title and interest in, to and under its Intellectual Property (as defined
in the Loan Agreement), including without limitation the following:

                (a) All of present and future United States registered
copyrights and copyright registrations, including, without limitation, the
registered copyrights, maskworks, software, computer programs and other works of
authorship subject to United States copyright protection listed in Exhibit A-1
to this Agreement (and including all of the exclusive rights afforded a
copyright registrant in the United States under 17 U.S.C. §106 and any exclusive
rights which may in the future arise by act of Congress or otherwise) and all
present and future applications for copyright registrations (including
applications for copyright registrations of derivative works and compilations)
(collectively, the “Registered Copyrights”), and any and all royalties,
payments, and other amounts payable to Borrower in connection with the
Registered Copyrights, together with all renewals and extensions of the
Registered Copyrights, the right to recover for all past, present, and future
infringements of the Registered Copyrights, and all computer programs, computer
databases, computer program flow diagrams, source codes, object codes and all
tangible property embodying or incorporating the Registered Copyrights, and all
other rights of every kind whatsoever accruing thereunder or pertaining thereto.

                (b) All present and future copyrights, maskworks, software,
computer programs and other works of authorship subject to (or capable of
becoming subject to) United States copyright protection which are not registered
in the United States Copyright Office (the “Unregistered Copyrights”), whether
now owned or hereafter acquired, including without limitation the Unregistered
Copyrights listed in Exhibit A-2 to this Agreement, and any and all royalties,
payments, and other amounts payable to Borrower in connection with the
Unregistered Copyrights, together with all renewals and extensions of the
Unregistered Copyrights, the right to recover for all past, present, and future
infringements of the Unregistered Copyrights, and all computer programs,
computer databases, computer program flow diagrams, source codes, object codes
and all tangible property embodying or incorporating the Unregistered
Copyrights, and all other rights of every kind whatsoever accruing thereunder or
pertaining thereto. The Registered Copyrights and the Unregistered Copyrights
collectively are referred to herein as the “Copyrights.”

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                (c) All right, title and interest in and to any and all present
and future license agreements with respect to the Copyrights.

                (d) All present and future accounts, accounts receivable,
royalties, and other rights to payment arising from, in connection with or
relating to the Copyrights.

                (e) All patents, patent applications and like protections
including, without limitation, improvements, divisions, continuations, renewals,
reissues, extensions and continuations-in-part of the same, including without
limitation the patents and patent applications set forth on Exhibit B attached
hereto (collectively, the “Patents”);

                (f) All trademark and servicemark rights, whether registered or
not, applications to register and registrations of the same and like
protections, and the entire goodwill of the business of Borrower connected with
and symbolized by such trademarks, including without limitation those set forth
on Exhibit C attached hereto (collectively, the “Trademarks”);

                (g) Any and all claims for damages by way of past, present and
future infringements of any of the rights included above, with the right, but
not the obligation, to sue for and collect such damages for said use or
infringement of the rights identified above;

                (h) All licenses or other rights to use any of the Copyrights,
Patents or Trademarks, and all license fees and royalties arising from such use
to the extent permitted by such license or rights;

                (i) All amendments, extensions, renewals and extensions of any
of the Copyrights, Trademarks or Patents; and

                (j) All proceeds and products of the foregoing, including
without limitation all payments under insurance or any indemnity or warranty
payable in respect of any of the foregoing, and all license royalties and
proceeds of infringement suits, and all rights corresponding to the foregoing
throughout the world and all re-issues, divisions continuations, renewals,
extensions and continuations-in-part of the foregoing.

        2.     Loan Agreement. This security interest is granted in conjunction
with the security interest granted to Secured Party under the Loan Agreement.
The rights and remedies of Secured Party with respect to the security interest
granted hereby are in addition to those set forth in the Loan Agreement and the
other Loan Documents, and those which are now or hereafter available to Secured
Party as a matter of law or equity. Each right, power and remedy of Secured
Party provided for herein or in the Loan Agreement or any of the other Loan
Documents, or now or hereafter existing at law or in equity shall be cumulative
and concurrent and shall be in addition to every right, power or remedy provided
for herein and the exercise by Secured Party of any one or more of the rights,
powers or remedies provided for in this Agreement, the Loan Agreement or any of
the other Loan Documents, or now or hereafter existing at law or in equity,
shall not preclude the simultaneous or later exercise by any person, including
Secured Party, of any or all other rights, powers or remedies.

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        3.     Covenants and Warranties. Borrower represents, warrants,
covenants and agrees as follows:

              (a) Subject to Section 8 (4) of the Schedule to the Loan
Agreement, all of Borrower’s present and future maskworks, software, computer
programs and other works of authorship subject to (or capable of becoming
subject to) United States copyright protection, the sale, licensing or other
disposition of which results in royalties receivable, license fees receivable,
accounts receivable or other sums owing to Borrower (collectively, “Accounts”),
have been and shall be registered with the United States Copyright Office prior
to the date Borrower requests or accepts any Loan from Secured Party with
respect to such Accounts and prior to the date Borrower includes any such
Accounts in any accounts receivable aging, borrowing base report or certificate
or other similar report provided to Secured Party, and Borrower shall provide to
Secured Party copies of all such registrations promptly upon the receipt of the
same.

              (b) Borrower shall undertake all reasonable measures to cause its
employees, agents and independent contractors to assign to Borrower all rights
of authorship to any copyrighted material in which Borrower has or may
subsequently acquire any right or interest.

              (c) Borrower shall promptly advise Secured Party of any Trademark,
Patent or Copyright not specified in this Agreement, which is hereafter acquired
by Borrower.

              (d) Subject to Section 8 (4) of the Schedule to the Loan
Agreement, Borrower shall promptly register the most recent version of any of
Borrower’s Copyrights, which are not already so registered, and which are
referred to in Section 3(a) above or which are material to its business, and
shall, from time to time, execute and file such other instruments, and take such
further actions as Secured Party may reasonably request from time to time to
perfect or continue the perfection of Secured Party’s interest in the
Collateral.

       4. General. If any action relating to this Agreement is brought by either
party hereto against the other party, the prevailing party shall be entitled to
recover reasonable attorneys fees, costs and disbursements. This Agreement may
be amended only by a written instrument signed by both parties hereto. To the
extent that any provision of this Agreement conflicts with any provision of the
Loan Agreement, the provision giving Secured Party greater rights or remedies
shall govern, it being understood that the purpose of this Agreement is to add
to, and not detract from, the rights granted to Secured Party under the Loan
Agreement. This Agreement, the Loan Agreement, and the other Loan Documents
comprise the entire agreement of the parties with respect to the matters
addressed in this Agreement. This Agreement shall be governed by the laws of the
State of California, without regard for choice of law provisions. Borrower and
Secured Party consent to the nonexclusive jurisdiction of any state or federal
court located in Santa Clara County, California.

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       5.  WAIVER OF RIGHT TO JURY TRIAL. SECURED PARTY AND BORROWER EACH HEREBY
WAIVE THE RIGHT TO TRIAL BY JURY IN ANY ACTION OR PROCEEDING BASED UPON, ARISING
OUT OF, OR IN ANY WAY RELATING TO: (I) THIS AGREEMENT; OR (II) ANY OTHER PRESENT
OR FUTURE INSTRUMENT OR AGREEMENT BETWEEN SECURED PARTY AND BORROWER; OR (III)
ANY CONDUCT, ACTS OR OMISSIONS OF SECURED PARTY OR BORROWER OR ANY OF THEIR
DIRECTORS, OFFICERS, EMPLOYEES, AGENTS, ATTORNEYS OR ANY OTHER PERSONS
AFFILIATED WITH SECURED PARTY OR BORROWER; IN EACH OF THE FOREGOING CASES,
WHETHER SOUNDING IN CONTRACT OR TORT OR OTHERWISE.

        IN WITNESS WHEREOF, the parties have cause this Intellectual Property
Security Agreement to be duly executed by its officers thereunto duly authorized
as of the first date written above.

Address of Grantor: Grantor: 2201 South McDowell Blvd.
Petaluma, CA 94954
TEGAL CORPORATION     Executed 6/26/02 By /s/ Michael L.
Parodi                                                          Title Chairman,
President & CEO                                           Name: Michael L.
Parodi                                                            Address of
Secured Party: Secured Party:     3003 Tasman Drive
Santa Clara, California 95054 SILICON VALLEY BANK Executed 6/26/02 By /s/
Patrick J. O'Donnell                                                      Title
Vice President                                                                 
 

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EXHIBIT A-1

REGISTERED COPYRIGHTS
 (including copyrights that are the subject of an application for registration)

 

Description

Registration/
Application
Number Registration/
Application
Date

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V4.02C (PT/20) 26-041-006 U1   TX-4-222-674      

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MCFTASK.SRC  TX-4-222-675 

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MCFTASK.SRC  TX-4-222-676 

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V4.02G (PT/9) 26-041-016 U1  TX-4-222-677 

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RFTASK.SRC  TX-4-222-678 

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MFCTASK.SRC  TX-4-222-679 

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901e plasma production etcher: system manual: vol. 1-2  TX-4-222-689 

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T901e plasma production etcher: system manual: vol. 1-2  TX-4-222-690 

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T903e plasma production etcher: system manual: vol. 1-2  TX-4-222-691 

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903e plasma production etcher: system manual: vol. 1-2  TX-4-222-692 

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9XX SECs user's manual  TX-5-340-216 

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EXHIBIT A-2

UNREGISTERED COPYRIGHTS

None.

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September 25, 1996

EXHIBIT B

PATENTS

Description

Registration/
Application
Number Registration/
Application
Date

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See attached list.

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EXHIBIT C

TRADEMARKS

     Description
     
Registration/ 

 Application 

    Number 
     
Registration/ 

 Application 

    Date 

     

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     Mark: TEGAL COMPLETE CUSTOMER SATISFACTION
      
     1,493,986
      
     6/28/1988
      

     

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     Mark: TEGAL 
     -- 
     -- 

     

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     Mark: TEGAL 
     1,494,896 
     7/5/1988 

     

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     Mark: 
TEGAL AND AN UPWARD ARROW CONTAINED IN AN UNENCLOSED BOX 
     858993 
     6/23/1998 

     

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     Mark: 
TEGAL AND AN UPWARD ARROW CONTAINED IN AN UNENCLOSED BOX 
     2,495,626 
     10/9/2001 

     

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     Mark: 903G 
     76/201,864 
     1/30/2001 

     

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     Mark: 901G 
     76/201,857 
     1/30/2001 

     

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     Mark: i901 
     76/201,866 
     1/30/2001 

     

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     Mark: i903 
     76/201,861 
     1/30/2001 

     

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     Mark: 980 
     76/201,858 
     1/30/2001 

     

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     Mark: 981 
     76/201,854 
     1/30/2001 

     

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     Mark: 983 
     76/201,862 
     1/30/2001 

     

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     Mark: SPECTRA 
     -- 
     1/15/2002 

     

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