PATENT SECURITY AGREEMENT

 

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                                                                     Exhibit 4.5

 

                                                               EXECUTION VERSION

 

                            PATENT SECURITY AGREEMENT

 

     This PATENT SECURITY AGREEMENT (this "Patent Security Agreement") is made

this 9th day of September, 2004, among the Grantors listed on the signature

pages hereof (the "Grantors"), and The Bank of New York Trust Company, N.A., in

its capacity as trustee under the Indenture (as defined below) (the "Trustee").

 

                                   WITNESSETH:

 

     WHEREAS, pursuant to (a) that certain Indenture dated as of September 9,

2004 (as amended, restated, supplemented or otherwise modified from time to

time, the "Indenture") among Securus Technologies, Inc., a Delaware corporation,

as issuer (the "Company"), the subsidiaries of the Company party thereto as

guarantors (the "Guarantors") and the Trustee, and (b) the Purchase Agreement

dated as of August 18, 2004 (the "Purchase Agreement"), among the Company, the

Guarantors, Credit Suisse First Boston LLC and Morgan Stanley & Co. Incorporated

(the "Initial Purchasers"), the Company is issuing $154,000,000 aggregate

principal amount of its Second-Priority Senior Secured Notes Due 2011 (the

"Notes") which will be guaranteed on a senior secured basis by the Guarantors;

 

     WHEREAS, in order to induce the Initial Purchasers to enter into the

Purchase Agreement and to induce the Initial Purchasers to purchase the Notes,

the Grantors have agreed to grant a continuing Lien on the Collateral in order

to secure the prompt and complete payment, observance and performance of the

Secured Obligations, by the granting of the security interest contemplated by

the Security Agreement (as defined below);

 

     WHEREAS, the Trustee is willing to enter into the Indenture, but only upon

the condition, among others, that the Grantor shall have executed and delivered

to the Trustee, for the benefit of the Noteholders, that certain Security

Agreement dated as of September 9, 2004 (including all annexes, exhibits or

schedules thereto, as from time to time amended, restated, supplemented or

otherwise modified, the "Security Agreement"); and

 

     WHEREAS, pursuant to the Security Agreement, the Grantor is required to

execute and deliver to the Trustee, for the benefit of the Noteholders, this

Patent 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 Grantor hereby agrees as

follows:

 

     1. DEFINED TERMS. All capitalized terms used but not otherwise defined

herein have the meanings given to them in the Security Agreement.

 

     2. GRANT OF SECURITY INTEREST IN PATENT COLLATERAL. The Grantor hereby

grants to the Trustee, for the benefit of the Noteholders, a continuing security

interest in all of the Grantor's right, title and interest in, to and under the

following, whether presently existing or hereafter created or acquired

(collectively, the "Patent Collateral"):

 

     (a) all of its Patents and Patent Intellectual Property Licenses to which

it is a party including those referred to on Schedule I hereto;

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

 

     (c) all products and proceeds of the foregoing, including, without

limitation, any claim by the Grantor against third parties for past, present or

future infringement of any Patent or any Patent licensed under any Intellectual

Property License.

 

     3. SECURITY AGREEMENT. The security interests granted pursuant to this

Patent Security Agreement are granted in conjunction with the security interests

granted to the Trustee, for the benefit of the Noteholders, pursuant to the

Security Agreement. The Grantor hereby acknowledges and affirms that the rights

and remedies of the Trustee with respect to the security interest in the Patent

Collateral made and granted hereby 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.

 

     4. AUTHORIZATION TO SUPPLEMENT. If any Grantor shall obtain rights to any

new patentable inventions or become entitled to the benefit of any patent

application or patent for any reissue, division, or continuation, of any patent,

the provisions of this Patent Security Agreement shall automatically apply

thereto. The Grantors shall give prompt notice in writing to the Trustee with

respect to any such new patent rights. Without limiting the Grantors'

obligations under this Section 4, the Grantors hereby authorize the Trustee

unilaterally to modify this Patent Security Agreement by amending Schedule I to

include any such new patent rights of such Grantor. Notwithstanding the

foregoing, no failure to so modify this Patent Security Agreement or amend

Schedule I shall in any way affect, invalidate or detract from the Trustee's

continuing security interest in all Collateral, whether or not listed on

Schedule I.

 

     5. COUNTERPARTS. This Patent Security Agreement may be executed in any

number of counterparts, each of which shall be deemed to be an original, but all

such separate counterparts shall together constitute but one and the same

instrument. In proving this Patent Security Agreement or any other Note Document

in any judicial proceedings, it shall not be necessary to produce or account for

more than one such counterpart signed by the party against whom such enforcement

is sought. Any signatures delivered by a party by facsimile transmission or by

e-mail transmission shall be deemed an original signature hereto.

 

     6. Notwithstanding anything herein to the contrary, (i) the liens and

security interests granted to the Trustee pursuant to this Patent Security

Agreement are expressly subject and subordinate to the liens and security

interests granted to the Administrative Agent (and its permitted successors and

assigns), for the benefit of the credit parties, pursuant to the Credit

Agreement and the related security documents dated as of September 9, 2004 (as

further amended, restated, refinanced, replaced, supplemented or otherwise

modified from time to time), by and among the Company, the Administrative Agent,

the lenders and the other credit parties party thereto and the other parties

party thereto and (ii) the exercise of any right or remedy by the Trustee

hereunder is subject to the limitations and provisions of the Intercreditor

Agreement. In the event of any conflict between the terms of the Intercreditor

Agreement and the terms of this Patent Security Agreement, the terms of the

Intercreditor Agreement shall govern.

 

                            [SIGNATURE PAGE FOLLOWS]

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     IN WITNESS WHEREOF, each Grantor has caused this Patent Security Agreement

to be executed and delivered by its duly authorized officer as of the date first

set forth above.

 

GRANTORS:                              SECURUS TECHNOLOGIES, INC., a Delaware

                                       corporation

 

 

                                       By: /s/ Lewis Schoenwettek

                                           ------------------------------------

                                           Name: Lewis Schoenwettek

                                           Title: Vice President

 

 

                                       T-NETIX, INC., a Delaware corporation

 

 

                                       By: /s/ Lewis Schoenwettek

                                           -------------------------------------

                                           Name: Lewis Schoenwettek

                                           Title: Vice President

 

 

                                       TELEQUIP LABS, INC., a Nevada corporation

 

 

                                       By: /s/ Lewis Schoenwettek

                                           -------------------------------------

                                           Name: Lewis Schoenwettek

                                           Title: Vice President

 

 

                                       T-NETIX TELECOMMUNICATIONS

                                       SERVICES, INC., a Texas corporation

 

 

                                       By: /s/ Lewis Schoenwettek

                                           -------------------------------------

                                           Name: Lewis Schoenwettek

                                           Title: Vice President

 

 

                                       SPEAKEZ, INC., a Colorado corporation

 

 

                                       By: /s/ Lewis Schoenwettek

                                           -------------------------------------

                                           Name: Lewis Schoenwettek

                                           Title: Vice President

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                                       T-NETIX MONITORING CORPORATION, a

                                       Colorado corporation

 

 

                                       By: /s/ Lewis Schoenwettek

                                           -------------------------------------

                                           Name: Lewis Schoenwettek

                                           Title: Vice President

 

 

                                       EVERCOM HOLDINGS, INC., a Delaware

                                       corporation

 

 

                                       By: /s/ Lewis Schoenwettek

                                           -------------------------------------

                                           Name: Lewis Schoenwettek

                                           Title: Vice President

 

 

                                       EVERCOM, INC., a Delaware corporation

 

 

                                       By: /s/ Lewis Schoenwettek

                                           -------------------------------------

                                           Name: Lewis Schoenwettek

                                           Title: Vice President

 

 

                                       EVERCOM SYSTEMS, INC., a Delaware

                                       corporation

 

 

                                       By: /s/ Lewis Schoenwettek

                                           -------------------------------------

                                           Name: Lewis Schoenwettek

                                           Title: Vice President

 

 

                                       FORTUNELINX, INC., a Delaware corporation

 

 

                                       By: /s/ Lewis Schoenwettek

                                           -------------------------------------

                                           Name: Lewis Schoenwettek

                                           Title: Vice President

 

 

                                       EVERCONNECT, INC., a Delaware corporation

 

 

                                       By: /s/ Lewis Schoenwettek

                                           -------------------------------------

                                           Name: Lewis Schoenwettek

                                           Title: Vice President

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                                       ACCEPTED AND ACKNOWLEDGED

                                       BY:

 

                                       THE BANK OF NEW YORK TRUST

                                       COMPANY, N.A., as Trustee

 

 

                                       By: /s/ George W. Bemister

                                           -------------------------------------

                                       Name: George W. Bemister

                                       Title: ASSISTANT VICE PRESIDENT

<PAGE>

                                   SCHEDULE I

                                       TO

                            PATENT SECURITY AGREEMENT

 

                       PATENT REGISTRATIONS/ APPLICATIONS

 

T-NETIX, INC. AND SUBSIDIARIES:

 

<TABLE>

<CAPTION>

                                                                                               APPLICATN /

  OWNER     COUNTRY  TYPE       CATEGORY                          NAME/TITLE                    REGSTRN #     DATE INIT.  DATE ISS.

----------  -------  ----  ------------------  ---------------------------------------------  -------------   ----------  ---------

<S>         <C>      <C>   <C>                 <C>                                             <C>            <C>         <C>

T-NETIX     Canada   P     Attomated Phone     Automatic Generation of Billing Records at a       2,007,838                12/14/99

                           Attendant           Telephone Paystation

T-NETIX     Canada   P     Three Way Call      Method and Apparatus for Detecting a               2,291,678     05/29/98

                           Detection           Secondary Destination of a Telephone Call

                                               Based on Changes in Telephone Signal Path

                                               ("Dolphin")

T-NETIX     US       P     Automated Phone     Automatic Validation of Telephone Account          4,890,317     01/23/89   12/26/89

                           Attendant           Numbers

T-NETIX     US       P     Automated Phone     Method and Apparatus for Altering the Access       4,908,852     01/23/89   03/13/90

                           Attendant           Format of Telephone Calls

T-NETIX     US       P     Automated Phone