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                                                                 EXHIBIT 10.10.2


                   INTELLECTUAL PROPERTY SECURITY AGREEMENT
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     This Intellectual Property Security Agreement (the "Agreement") is made as
of September 14, 2001, by and between LOGICVISION, INC., a Delaware corporation
("Grantor"), and COMERICA BANK-CALIFORNIA ("Secured Party").

                                   RECITALS
                                   --------

     A.  Secured Party has agreed to make certain advances of money and to
extend certain financial accommodations to Grantor (the "Loans") in the amounts
and manner set forth in that certain Loan and Security Agreement, dated of even
date herewith (the "Loan Agreement"). All capitalized terms used herein without
definition shall have the meanings ascribed to them in the Loan Agreement.

     B.  Secured Party is willing to make the Loans to Grantor, but only upon
the condition, among others, that Grantor shall grant to Secured Party a
security interest in certain of the Copyrights, Trademarks and Patents to secure
the obligations of Grantor under the Loan Agreement and any other agreement now
existing or hereafter arising between Secured Party and Grantor.

     C.   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
in, whether presently existing or hereafter acquired, in, to and under all of
the Collateral upon the occurrence of an Event of Default. Secured Party will
not publicly file this Agreement until and upon the occurrence of an Event of
Default.

     NOW, THEREFORE, THE PARTIES HERETO AGREE AS FOLLOWS:

     1.   Grant of Security Interest.  As collateral security for the prompt and
          --------------------------
complete payment and performance of all of Grantor's present or future
indebtedness, obligations and liabilities to Secured Party, Grantor hereby
grants a security interest and mortgage to Secured Party, as security, in and to
Grantor's entire right, title and interest in, to and under all of its
intellectual property, including without limitation the following (all of which
shall collectively be called the "Collateral"):

          (a)  Any and all copyright rights, copyright applications, copyright
registrations and like protections in each work or authorship and derivative
work thereof, whether published or unpublished and whether or not the same also
constitutes a trade secret, now or hereafter existing, created, acquired or
held, including without limitation those set forth on Exhibit A attached hereto
                                                      ---------
(collectively, the "Copyrights");

          (b)  Any and all trade secrets, and any and all intellectual property
rights in computer software and computer software products now or hereafter
existing, created, acquired or held;

          (c)  Any and all design rights which may be available to Grantor now
or hereafter existing, created, acquired or held;

          (d)  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");

          (e)  Any 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 Grantor connected with and symbolized by
such trademarks, including without limitation those set forth on Exhibit C
                                                                 ---------
attached hereto (collectively, the "Trademarks");

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          (f)  Any and all claims for damages by way of past, present and future
infringement 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 intellectual property rights identified above;

          (g)  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;

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

          (i)  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.

     2.   Covenants and Warranties.  Grantor represents, warrants, covenants and
          ------------------------
agrees as follows:

          (a)  Grantor is now the sole owner of the Collateral, except for
licenses granted by Grantor to its customers in the ordinary course of business;

          (b)  Except as set forth in the Schedule, Grantor's rights as a
licensee of intellectual property do not give rise to more than five percent
(5%) of its gross revenue in any given month, including without limitation
revenue derived from the sale, licensing, rendering or disposition of any
product or service;

          (c)  Performance of this Agreement does not conflict with or result in
a breach of any agreement to which Grantor is party or by which Grantor is
bound;

          (d)  During the term of this Agreement, Grantor will not transfer or
otherwise encumber any interest in the Collateral, except for licenses granted
by Grantor in the ordinary course of business or as set forth in this Agreement;

          (e)  To its knowledge, each of the Patents is valid and enforceable,
and no part of the Collateral has been judged invalid or unenforceable, in whole
or in part, and no claim has been made that any part of the Collateral violates
the rights of any third party;

          (f)  Grantor shall deliver to Secured Party within thirty (30) days of
the last day of each fiscal quarter, a report signed by Grantor, in form
reasonably acceptable to Secured Party, listing any applications or
registrations that Grantor has made or filed in respect of any patents,
copyrights or trademarks and the status of any outstanding applications or
registrations. Grantor shall promptly advise Secured Party of any material
change in the composition of the Collateral, including but not limited to any
subsequent ownership right of the Grantor in or to any Trademark, Patent or
Copyright not specified in this Agreement;

          (g)  Grantor shall (i) protect, defend and maintain the validity and
enforceability of the Trademarks, Patents and Copyrights (ii) use its best
efforts to detect infringements of the Trademarks, Patents and Copyrights and
promptly advise Secured Party in writing of material infringements detected and
(iii) not allow any Trademarks, Patents or Copyrights to be abandoned, forfeited
or dedicated to the public without the written consent of Secured Party, which
shall not be unreasonably withheld;

          (h)  Grantor shall apply for registration on an expedited basis (to
the extent not already registered) with the United States Patent and Trademark
Office or the United States Copyright Office, as applicable: (i) those
intellectual property rights listed on Exhibits A, B and C hereto within thirty
(30) days of the date of this Agreement; (ii) all registerable intellectual
property rights Grantor has developed as of the date of this Agreement but
heretofore failed to register, within thirty (30) days of the date of this
Agreement; and (iii) those additional intellectual property rights developed or
acquired by Grantor from time to time in connection with any product or service,
prior to the sale or licensing of such product or the rendering of such service
to any third party and prior to Grantor's use of such product (including without
limitation revisions or additions to the intellectual property rights listed on
such Exhibits A, B and C). Grantor 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

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perfection of Secured Party's interest in the Collateral. Grantor shall give
Secured Party notice of all such applications or registrations;

          (i)  This Agreement creates, and in the case of after acquired
Collateral, this Agreement will create at the time Grantor first has rights in
such after acquired Collateral, in favor of Secured Party a valid and perfected
first priority security interest in the Collateral in the United States securing
the payment and performance of the obligations evidenced by the Loan Agreement;

          (j)  All information heretofore, herein or hereafter supplied to
Secured Party by or on behalf of Grantor with respect to the Collateral is
accurate and complete in all material respects;

          (k)  Grantor shall not enter into any agreement that would materially
impair or conflict with Grantor's obligations hereunder without Secured Party's
prior written consent, which consent shall not be unreasonably withheld. Grantor
shall not permit the inclusion in any material contract to which it becomes a
party of any provisions that could or might in any way prevent the creation of a
security interest in Grantor's rights and interests in any property included
within the definition of the Collateral acquired under such contracts; and

          (l)  Upon any executive officer of Grantor obtaining actual knowledge
thereof, Grantor will promptly notify Secured Party in writing of any event that
materially adversely affects the value of any Collateral, the ability of Grantor
to dispose of any Collateral or the rights and remedies of Secured Party in
relation thereto, including the levy of any legal process against any of the
Collateral.

     3.   Secured Party's Rights. Secured Party shall have the right, but not
          ----------------------
the obligation, to take, at Grantor's sole expense, any actions that Grantor is
required under this Agreement to take but which Grantor fails to take, after
fifteen (15) days' notice to Grantor. Grantor shall reimburse and indemnify
Secured Party for all reasonable costs and reasonable expenses incurred in the
reasonable exercise of its rights under this section 3.

     4.   Inspection Rights.  Grantor hereby grants to Secured Party and its
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employees, representatives and agents the right to visit, during reasonable
hours upon prior reasonable written notice to Grantor, any of Grantor's plants
and facilities that manufacture, install or store products (or that have done so
during the prior six-month period) that are sold utilizing any of the
Collateral, and to inspect the products and quality control records relating
thereto upon reasonable written notice to Grantor and as often as may be
reasonably requested.

     5.   Further Assurances; Attorney in Fact.
          ------------------------------------

          (a)  On a continuing basis, Grantor will make, execute, acknowledge
and deliver, and file and record in the proper filing and recording places in
the United States, all such instruments, including appropriate financing and
continuation statements and collateral agreements and filings with the United
States Patent and Trademark Office and the Register of Copyrights, and take all
such action as may reasonably be deemed necessary or advisable, or as requested
by Secured Party, to perfect Secured Party's security interest in all
Copyrights, Patents and Trademarks and otherwise to carry out the intent and
purposes of this Agreement, or for assuring and confirming to Secured Party the
grant or perfection of a security interest in all Collateral.

          (b)  Grantor hereby irrevocably appoints Secured Party as Grantor's
attorney-in-fact, with full authority in the place and stead of Grantor and in
the name of Grantor, from time to time in Secured Party's discretion, to take
any action and to execute any instrument which Secured Party may deem necessary
or advisable to accomplish the purposes of this Agreement, including (i) to
modify, in its sole discretion, this Agreement without first obtaining Grantor's
approval of or signature to such modification by amending Exhibit A, Exhibit B
and Exhibit C, hereof, as appropriate, to include reference to any right, title
or interest in any Copyrights, Patents or Trademarks acquired by Grantor after
the execution hereof or to delete any reference to any right, title or interest
in any Copyrights, Patents or Trademarks in which Grantor no longer has or
claims any right, title or interest, (ii) to file, in its sole discretion, one
or more financing or continuation statements and amendments thereto, relative to
any of the Collateral without the signature of Grantor where permitted by law
and (iii) after the occurrence of an Event of Default, to transfer the
Collateral into the name of Secured Party or a third party to the extent
permitted under the California Uniform Commercial Code.

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     6.   Events of Default. The occurrence of any of the following shall
          -----------------
constitute an Event of Default under the Agreement:

          (a)  An Event of Default occurs under the Loan Agreement; or

          (b)  Grantor breaches any warranty or agreement made by Grantor in
this Agreement and, as to any breach that is capable of cure, Grantor fails to
cure such breach within five (5) days of the occurrence of such breach.

     7.   Remedies. Upon the occurrence and continuance of an Event of Default,
          --------
Secured Party shall have the right to exercise all the remedies of a secured
party under the California Uniform Commercial Code, including without limitation
the right to require Grantor to assemble the Collateral and any tangible
property in which Secured Party has a security interest and to make it available
to Secured Party at a place designated by Secured Party. Secured Party shall
have a nonexclusive, royalty free license to use the Copyrights, Patents and
Trademarks to the extent reasonably necessary to permit Secured Party to
exercise its rights and remedies upon the occurrence of an Event of Default.
Grantor will pay any expenses (including reasonable attorneys' fees) incurred by
Secured Party in connection with the exercise of any of Secured Party's rights
hereunder, including without limitation any expense incurred in disposing of the
Collateral. All of Secured Party's rights and remedies with respect to the
Collateral shall be cumulative.

     8.   Indemnity. Grantor agrees to defend, indemnify and hold harmless
          ---------
Secured Party and its officers, employees, and agents against: (a) all
obligations, demands, claims, and liabilities claimed or asserted by any other
party in connection with the transactions contemplated by this Agreement, and
(b) all losses or expenses in any way suffered, incurred, or paid by Secured
Party as a result of or in any way arising out of, following or consequential to
transactions between Secured Party and Grantor, whether under this Agreement or
otherwise (including without limitation reasonable attorneys' fees and
reasonable expenses), except for losses arising from or out of Secured Party's
gross negligence or willful misconduct.

     9.   Course of Dealing. No course of dealing, nor any failure to exercise,
          -----------------
nor any delay in exercising any right, power or privilege hereunder shall
operate as a waiver thereof.

     10.  Attorneys' Fees. 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.

     11.  Amendments. This Agreement may be amended only by a written instrument
          ----------
signed by both parties hereto.

     12.  Counterparts. This Agreement may be executed in two or more
          ------------
counterparts, each of which shall be deemed an original but all of which
together shall constitute the same instrument.

     13.  California Law and Jurisdiction; Jury Waiver. This Agreement shall be
          --------------------------------------------
governed by the laws of the State of California, without regard for choice of
law provisions. Grantor and Secured Party consent to the exclusive jurisdiction
of any state or federal court located in Santa Clara County, California. GRANTOR
AND SECURED PARTY EACH WAIVE THEIR RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY
CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THE LOAN AGREEMENT, THIS
AGREEMENT, OR ANY OF THE TRANSACTIONS CONTEMPLATED HEREIN, INCLUDING CONTRACT
CLAIMS, TORT CLAIMS, BREACH OF DUTY CLAIMS, AND ALL OTHER COMMON LAW OR
STATUTORY CLAIMS.

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     IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the
day and year first above written.

                                           GRANTOR:

                                           LOGICVISION, INC.
Address of Grantor:

101 Metro Drive, Third Floor               By:   /s/ John H. Barnet
San Jose, CA 95110                            ------------------------------
                                           Title:   Chief Financial Officer
Attn:  Chief Executive Officer                   ---------------------------


                                           BANK:

                                           COMERICA BANK-CALIFORNIA
Address of Bank:

800 Oak Grove Avenue, M/C 4297             By:   /s/ Guy Simpson
Menlo Park, CA 94025                          ------------------------------
                                           Title:   A.V.P.
Attn:  Mr. Guy Simpson, A.V.P.                   ---------------------------


This Intellectual Property Security Agreement is intended to be implemented only
after a default has been declared and such default has not been waived or cured.
GS  JHB

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