Contract
Exhibit 10.6
PATENT SECURITY AGREEMENT (this “Agreement”) dated as of July
20, 2007, between NETWORK COMMUNICATIONS, INC., a Georgia
corporation (the “Grantor”) and TORONTO DOMINION (TEXAS) LLC, as
the Collateral Agent (as defined below).
PRELIMINARY STATEMENT
Reference is made to (a) the Revolving Loan Credit Agreement dated as of July 20, 2007 (as
amended, restated, supplemented or otherwise modified from time to time, the “Revolving Loan Credit
Agreement”), among the Grantor, Gallarus Media Holdings, Inc., a Delaware corporation (“Holdings”),
the lenders from time to time party thereto (the “Revolving Lenders”) and Toronto Dominion (Texas)
LLC, as administrative agent, (b) the Term Loan Credit Agreement dated as of July 20, 2007 (as
amended, restated, supplemented or otherwise modified from time to time, the “Term Loan Credit
Agreement” and, together with the Revolving Loan Credit Agreement, the “Credit Agreements”), among
the Grantor, Holdings, the lenders from time to time party thereto (the “Term Lenders” and,
together with the Revolving Lenders, the “Lenders”) and Toronto Dominion (Texas) LLC, as
administrative agent, and (c) the Guarantee, Collateral and Intercreditor Agreement dated as of
July 20, 2007 (as amended, restated, supplemented or otherwise modified from time to time, the
“Guarantee, Collateral and Intercreditor Agreement”), among the Grantor, Holdings, the subsidiaries
party thereto and Toronto Dominion (Texas) LLC, in its separate capacities as collateral agent (in
such capacity, the “Collateral Agent”) for the Secured Parties (as defined in the Guarantee,
Collateral and Intercreditor Agreement), and as administrative agent under each of the Credit
Agreements.
The Revolving Lenders and the Issuing Bank have agreed to extend credit to the Grantor subject
to the terms and conditions set forth in the Revolving Loan Credit Agreement, and the Term Lenders
have agreed to make term loans to the Grantor subject to the terms and conditions set forth in the
Term Loan Credit Agreement. The obligations of the Lenders and the Issuing Bank to extend such
credit are conditioned upon, among other things, the execution and delivery of this Agreement.
Accordingly, 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:
SECTION 1. DEFINED TERMS. All capitalized terms used but not otherwise defined herein
have the meanings given to them in the Revolving Loan Credit Agreement, the Term Loan Credit
Agreement or the Guarantee, Collateral and Intercreditor Agreement, as applicable.
SECTION 2. GRANT OF SECURITY INTEREST IN PATENT COLLATERAL. The Grantor hereby
grants to the Collateral Agent (and its successors
and assigns), for the ratable benefit of the Secured Parties, 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, including, without limitation, those referred to on
Schedule I hereto;
(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 or dilution of any Patent.
SECTION 3. GUARANTEE AND COLLATERAL AGREEMENT. The security interests granted
pursuant to this Agreement are granted in conjunction with the security interests granted to the
Collateral Agent (and its successors and assigns), for the ratable benefit of the Secured Parties,
pursuant to the Guarantee, Collateral and Intercreditor Agreement. The Grantor hereby acknowledges
and affirms that the rights and remedies of the Collateral Agent with respect to the security
interest in the Patent Collateral made and granted hereby are more fully set forth in the
Guarantee, Collateral and Intercreditor Agreement, the terms and provisions of which are
incorporated by reference herein as if fully set forth herein, and in the event of any conflict
between the terms and/or conditions of this Agreement and the terms of the Guarantee, Collateral
and Intercreditor Agreement, the terms and/or conditions of the Guarantee, Collateral and
Intercreditor Agreement shall control.
SECTION 4. COUNTERPARTS. This Agreement may be executed in any number of
counterparts, each of which when so executed shall be deemed to be an original and all of which
taken together shall constitute one and the same instrument.
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IN WITNESS WHEREOF, the Grantor has caused this Agreement to be executed and delivered by its
duly authorized officer as of the date first set forth above.
| NETWORK COMMUNICATIONS, INC., | ||||||||
| by | ||||||||
| /s/ Xxxxxx Xxxxxx | ||||||||
Title: Chief Financial Officer |
||||||||
ACCEPTED AND ACKNOWLEDGED BY:
TORONTO DOMINION (TEXAS) LLC,
as Collateral Agent,
as Collateral Agent,
By |
||||
| /s/ Xxx Xxxxxx | ||||
Title: Authorized Signatory |
