EX – 10.7

 

PATENT, TRADEMARK AND COPYRIGHT SECURITY AGREEMENT

 

PATENT, TRADEMARK AND COPYRIGHT SECURITY AGREEMENT (as the same may be amended,
restated, supplemented or otherwise modified from time to time, the
“Agreement”), dated as of March 30, 2004, is made by DYNAMIC DETAILS,
INCORPORATED, a California corporation (“Details”), DYNAMIC DETAILS
INCORPORATED, VIRGINIA, a Delaware corporation (“Virginia”), DYNAMIC DETAILS
INCORPORATED, SILICON VALLEY, a Delaware corporation (“Valley”), LAMINATE
TECHNOLOGY CORP., a Delaware corporation (“Laminate”), DYNAMIC DETAILS
INCORPORATED, COLORADO SPRINGS, a Colorado corporation (“Colorado”), DDI SALES
CORP., a Delaware corporation (“Sales”), DYNAMIC DETAILS TEXAS, LLC, a Delaware
limited liability company (“Texas”), DDI-TEXAS INTERMEDIATE PARTNERS II, L.L.C.,
a Delaware limited liability company (“DTIP”), DDI-TEXAS INTERMEDIATE HOLDINGS
II, L.L.C., a Delaware limited liability company (“DTIH”), DYNAMIC DETAILS,
L.P., a Delaware limited partnership (“DDLP”) (Details, Virginia, Valley,
Laminate, Colorado, Sales, Texas, DTIP, DTIH and DDLP are sometimes collectively
referred to herein as “Grantors” and individually as a “Grantor”), in favor of
GENERAL ELECTRIC CAPITAL CORPORATION, a Delaware corporation, as agent (in such
capacity, “Agent”) for the lenders (“Lenders”) from time to time party to the
Credit Agreement (as defined below).

 

RECITALS

 

A. Pursuant to that certain Credit Agreement dated as of the date hereof by and
among Grantors, the other Credit Parties party thereto, Agent and Lenders
(including all annexes, exhibits and schedules thereto, as the same may be
amended, restated, supplemented or otherwise modified from time to time, the
“Credit Agreement”), Lenders have agreed to extend certain financial
accommodations to or for the direct or indirect benefit of Grantors.

 

B. In order to induce Agent and Lenders to extend such financial accommodations
as provided for in the Credit Agreement, Grantors have agreed to execute and
deliver to Agent, for the benefit of Agent and Lenders, that certain Security
Agreement of even date herewith made by Grantors in favor of Agent, for the
benefit of Agent and Lenders (as amended, restated, supplemented or otherwise
modified from time to time, the “Security Agreement”).

 

C. Pursuant to the Security Agreement, Grantors are required to execute and
deliver to Agent, for the benefit of Agent and Lenders, this Patent, Trademark
and Copyright Security Agreement.

 

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, each Grantor and Agent hereby
agree as follows:

 

1. Definitions. Unless otherwise defined herein, capitalized terms or matters of
construction defined or established in Annex A to the Credit Agreement shall be
applied herein as defined or established therein. All other undefined terms
contained in this Agreement, unless the context indicates otherwise, shall have
the meanings provided for by the Code to the extent the same are used or defined
therein.

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2. Grant of Security Interest in Intellectual Property Collateral. To secure the
prompt and complete payment, performance and observance of all of the
Obligations, each Grantor hereby grants, assigns, conveys, mortgages, pledges,
hypothecates and transfers to Agent, for the benefit of Agent and Lenders, a
Lien upon all its right, title and interest in, to and under the following
property, whether now owned by or owing to, or hereafter acquired by or arising
in favor of, such Grantor (including under any trade names, styles or divisions
of such Grantor), and regardless of where located (collectively, the
“Intellectual Property Collateral”):

 

(a) all of such Grantor’s Patents and Patent Licenses to which it is a party,
including those referred to in Part A to Schedule I hereto;

 

(b) all of such Grantor’s Trademarks and Trademark Licenses to which it is a
party, including those referred to in Part B to Schedule I hereto;

 

(c) all of such Grantor’s Copyrights and Copyright Licenses to which it is a
party, including those referred to in Part C to Schedule I hereto;

 

(d) all reissues, continuations or extensions of the foregoing;

 

(e) all goodwill, trade secrets, proprietary or confidential information,
technical information, procedures, formulae, quality control standards, designs,
operating and training manuals, customer lists, and other General Intangibles
with respect to the foregoing; and

 

(f) all Proceeds of the foregoing, including (i) any and all proceeds of any
insurance, indemnity, warranty or guaranty payable to any Person from time to
time with respect to any of the foregoing, (ii) any and all payments (in any
form whatsoever) made or due and payable to any Person from time to time in
connection with any requisition, confiscation, condemnation, seizure or
forfeiture of all or any part of the foregoing by any Governmental Authority (or
any Person acting under color of Governmental Authority), (iii) any claim of any
Person against third parties for (A) past, present or future infringement of any
Patent or Patent License, (B) past, present or future infringement of any
Copyright or Copyright License, (C) past, present or future infringement or
dilution of any Trademark or Trademark License, or (D) injury to the goodwill
associated with any Trademark or Trademark License, (iv) any recoveries by any
Person against third parties with respect to any litigation or dispute
concerning any of the foregoing, and (v) any and all other amounts from time to
time paid or payable under or in connection with any of the foregoing, upon
disposition or otherwise.

 

3. Security Agreement. The Lien granted pursuant to this Agreement is granted in
conjunction with the Liens granted to Agent, for the benefit of Agent and
Lenders, pursuant to the Security Agreement. Each Grantor hereby acknowledges
and affirms that the rights and remedies of Agent with respect to the Liens
granted under this Agreement are more fully set forth in the Security Agreement,
the terms and provisions of which are incorporated by reference herein as if
fully set forth herein.

 

[Remainder of Page Intentionally Left Blank]

 

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IN WITNESS WHEREOF, the parties have executed this Patent, Trademark and
Copyright Security Agreement as of the date first set forth above.

 

“Grantors”     DYNAMIC DETAILS, INCORPORATED   DYNAMIC DETAILS, INCORPORATED,
VIRGINIA By:  

/S/ TIMOTHY DONNELLY

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  By:  

/S/ TIMOTHY DONNELLY

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Name:   Timothy Donnelly   Name:   Timothy Donnelly Title:   Vice President and
Secretary   Title:   Vice President and Secretary DYNAMIC DETAILS INCORPORATED,
SILICON VALLEY   LAMINATE TECHNOLOGY CORP. By:  

/S/ TIMOTHY DONNELLY

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  By:  

/S/ TIMOTHY DONNELLY

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Name:   Timothy Donnelly   Name:   Timothy Donnelly Title:   Vice President and
Secretary   Title:   Vice President and Secretary DYNAMIC DETAILS TEXAS, LLC  
DDi SALES CORP. By:  

/S/ TIMOTHY DONNELLY

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  By:  

/S/ TIMOTHY DONNELLY

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Name:   Timothy Donnelly   Name:   Timothy Donnelly Title:   Vice President and
Secretary   Title:   Vice President and Secretary DDi-TEXAS INTERMEDIATE
HOLDINGS II, L.L.C.   DDi-TEXAS INTERMEDIATE PARTNERS II, L.L.C. By:  

/S/ TIMOTHY DONNELLY

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  By:  

/S/ TIMOTHY DONNELLY

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Name:   Timothy Donnelly   Name:   Timothy Donnelly Title:   Vice President and
Secretary   Title:   Vice President and Secretary DYNAMIC DETAILS, L.P.  
DYNAMIC DETAILS INCORPORATED, COLORADO SPRINGS By:  

DDi-TEXAS INTERMEDIATE PARTNERS II, L.L.C.,

its General Partner

        By:  

/S/ TIMOTHY DONNELLY

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  By:  

/S/ TIMOTHY DONNELLY

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Name:   Timothy Donnelly   Name:   Timothy Donnelly Title:   Vice President and
Secretary   Title:   Vice President and Secretary

 

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Agreed and Acknowledged by: “Agent” GENERAL ELECTRIC CAPITAL CORPORATION By:  

/S/ E. J. HESS

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    E. J. Hess     Duly Authorized Signatory

 

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SCHEDULE I

 

to

 

PATENT, TRADEMARK AND

COPYRIGHT SECURITY AGREEMENT

 

  I. DYNAMIC DETAILS, INCORPORATED

 

  A. Patents

 

1. DDi Corp. has granted to Dynamic Details, Incorporated certain rights to use
the following Patents owned by DDi Corp. (collectively, the “DDi Patents”):

 

  • United States Patent Application No. 10104262, “Inverted Microvias.”

 

  • Republic of China Patent Application No. 91113923, “Inverted Microvias”;
Patent Issued July 1, 2003.

 

  • Patent Cooperation Treaty Patent Application No. 2002-156949, “Inverted
Microvias.”

 

  • Japan Patent Application No. 2002-156949, “Inverted Microvias.”

 

  B. Trademarks

 

1. Service Mark “Dynamic Details” (Reg. No. 2,409,371 - USPTO).

 

2. Trademark “Dynamic Details” (Reg. No. 2,517,988 - USPTO).

 

3. Trademark “Dynamic Details” (Reg. No. 1219617 – European Community).

 

4. Trademark “DDi” (Reg. No. 2,370,315 – USPTO).

 

5. Trademark “DDi” (and Design) (Reg. No. 1219260 – European Community).

 

6. Service mark “DDi” (Reg. No. 2,409,942 – USPTO).

 

7. Application for “DDI” in Canada (App. No. 2370315).

 

8. Application for “Dynamic Details Canada” in Canada (App. No. 1119581, 1119582
CDN).

 

  C. Copyrights. None.

 

  II. DYNAMIC DETAILS, INCORPORATED, VIRGINIA

 

  A. Patents. DDi Corp. has granted to Dynamic Details, Incorporated, Virginia
certain rights to use the DDi Patents.

 

  B. Trademarks. None.

 

  C. Copyrights. None.

 

  III. DYNAMIC DETAILS INCORPORATED, SILICON VALLEY

 

  A. Patents. DDi Corp. has granted to Dynamic Details Incorporated, Silicon
Valley certain rights to use the DDi Patents.

 

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  B. Trademarks. None.

 

  C. Copyrights. None.

 

  IV. LAMINATE TECHNOLOGY CORP.

 

  A. Patents. DDi Corp. has granted to Laminate Technology Corp. certain rights
to use the DDi Patents.

 

  B. Trademarks. None.

 

  C. Copyrights. None.

 

  V. DYNAMIC DETAILS INCORPORATED, COLORADO SPRINGS

 

  A. Patents. DDi Corp. has granted to Dynamic Details Incorporated, Colorado
Springs certain rights to use the DDi Patents.

 

  B. Trademarks. None.

 

  C. Copyrights. None.

 

  VI. DDI SALES CORP.

 

  A. Patents. DDi Corp. has granted to DDi Sale Corp. certain rights to use the
DDi Patents.

 

  B. Trademarks. None.

 

  C. Copyrights. None.

 

  VII. DYNAMIC DETAILS TEXAS, LLC

 

  A. Patents. DDi Corp. has granted to Dynamic Details Texas, LLC certain rights
to use the DDi Patents.

 

  B. Trademarks. None.

 

  C. Copyrights. None.

 

  VII. DDI-TEXAS INTERMEDIATE PARTNERS II, L.L.C.

 

  A. Patents. DDi Corp. has granted to DDi-Texas Intermediate Partners II,
L.L.C. certain rights to use the DDi Patents.

 

  B. Trademarks. None.

 

  C. Copyrights. None.

 

  IX. DDI-TEXAS INTERMEDIATE HOLDINGS II, L.L.C.

 

  A. Patents. DDi Corp. has granted to DDi-Texas Intermediate Holdings II,
L.L.C. certain rights to use the DDi Patents.

 

  B. Trademarks. None.

 

  C. Copyrights. None.

 

  X. DYNAMIC DETAILS, L.P.

 

  A. Patents. DDi Corp. has granted to Dynamic Details, L.P. certain rights to
use the DDi Patents.

 

  B. Trademarks. None.

 

  C. Copyrights. None.

 

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