Document:

ex4-75.htm

    
      

    

    EXHIBIT 4.75

     

    REGISTRATION RIGHTS
AGREEMENT

     

    (February
2008 Private Placement)

     

    This
REGISTRATION RIGHTS AGREEMENT
(the “Agreement”) is made
and entered into as of the ____ day of February, 2008, by and among VERSO TECHNOLOGIES, INC., a
Minnesota corporation (the “Company”), and each
of the shareholders signing a counterpart signature page hereto (each a “Shareholder” and,
collectively, the “Shareholders”), with
the Agreement being effective as to each Shareholder as of the date of its
signature.

     

    IN CONSIDERATION of the mutual
promises and covenants set forth herein, and intending to be legally bound, the
parties hereto hereby agree as follows:

     

    
      	
              1.

            	
              RESTRICTIONS
      ON TRANSFERABILITY OF SECURITIES; REGISTRATION
  RIGHTS.

            

    

     

    1.1           Certain
Definitions.  As used in this Agreement, the following terms
shall have the meanings set forth below:

     

    (a)          “Common Stock” shall
mean the Company’s common stock, $.01 par value per share.

     

    (b)          “Exchange Act” shall
mean the Securities Exchange Act of 1934, as amended.

     

    (c)          “Holder” shall mean
any Shareholder who holds Registrable Securities and any holder of Registrable
Securities to whom the rights conferred by this Agreement have been transferred
in compliance with Section 1.2 hereof.

     

    (d)          “Other Shareholders”
shall mean persons who, by virtue of agreements with the Company other than this
Agreement, are entitled to include their securities in certain registrations
hereunder.

     

    (e)          “Registrable
Securities” shall mean the shares of Common Stock held by the
Shareholders listed on the signature pages hereto in the amount set forth
thereon, the Warrants held by the Shareholders listed on the signature pages
hereto and any shares of Common Stock that such Shareholder has the right to
acquire, or does acquire, upon the exercise of the Warrants or, in either case,
their permitted transferees, provided that a Registrable Security ceases to be a
Registrable Security when (i) it is registered under the Securities Act;
(ii) it is sold or transferred in accordance with the requirements of
Rule 144 (or similar provisions then in effect) promulgated by the SEC
under the Securities Act (“Rule 144”); (iii) it is eligible to be sold
or transferred under Rule 144 without holding period or volume limitations;
or (iv) it is sold in a private transaction in which the transferor’s
rights under this Agreement are not assigned.

     

    (f)           The
terms “register,” “registered” and
“registration”
shall refer to a registration effected by preparing and filing a registration
statement in compliance with the Securities Act of 1933, as amended (the
“Securities Act”), and applicable rules and regulations thereunder and the
declaration or ordering of the effectiveness of such registration
statement.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (g)          “Registration
Expenses” shall mean all expenses incurred in effecting any registration
pursuant to this Agreement, including, without limitation, all registration,
qualification, and filing fees, printing expenses, escrow fees, fees and
disbursements of counsel for the Company and one counsel selected to represent
the Holders, which counsel shall be reasonably satisfactory to the Company, blue
sky fees and expenses, and expenses of any regular or special audits incident to
or required by any such registration, but shall not include (i) Selling
Expenses; (ii) the compensation of regular employees of the Company, which
shall be paid in any event by the Company; and (iii) blue sky fees and
expenses incurred in connection with the registration or qualification of any
Registrable Securities in any state, province or other jurisdiction in a
registration pursuant to Section 1.3 hereof to the extent that the Company
shall otherwise be making no offers or sales in such state, province or other
jurisdiction in connection with such registration.

     

    (h)          “Restricted
Securities” shall mean any Registrable Securities required to bear the
legend set forth in Section 1.2(c) hereof.

     

    (i)           “Rule 145” shall
mean Rule 145 as promulgated by the SEC under the Securities Act, as such
Rule may be amended from time to time, or any similar successor rule that
may be promulgated by the SEC.

     

    (j)           “SEC” shall mean the
Securities and Exchange Commission.

     

    (k)         “Selling Expenses”
shall mean all underwriting discounts, selling commissions and stock transfer
taxes applicable to the sale of Registrable Securities.

     

    (l)           “Warrantholder” shall
mean any holder of a Warrant.

     

    (m)         “Warrant Shares” shall
mean the shares of Common Stock issuable by the Company upon exercise of the
Warrants.

     

    (n)          “Warrants” shall mean
the warrants to purchase shares of Common Stock issued in connection with the
Company’s February 2008 private equity financing.

     

    1.2           Restrictions
on Transfer.

     

    (a)           Each
Holder agrees not to make any disposition of all or any portion of the
Registrable Securities unless and until (i) there is then in effect a
registration statement under the Securities Act covering such proposed
disposition and such disposition is made in accordance with such registration
statement; or (ii) (A) such Holder shall have notified the Company of the
proposed disposition and shall have furnished the Company with a detailed
statement of the circumstances surrounding the proposed disposition and (B) if
reasonably requested by the Company, such Holder shall have furnished the
Company with an opinion of counsel, reasonably satisfactory to the Company, that
such disposition will not require registration of such shares under the
Securities Act, it being understood that the Company will not require opinions
of counsel for transactions made pursuant to Rule 144 except in unusual
circumstances.

     

    
      
        
        

      

      
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    (b)           Notwithstanding
the provisions of subparagraphs (i) and (ii) of paragraph (a) above,
no such registration statement or opinion of counsel shall be necessary for a
transfer by a Holder which is (i) a partnership to its partners in
accordance with their partnership interests; (ii) a limited liability
company to its members in accordance with their member interests; or
(iii) to the Holder’s family member or a trust for the benefit of an
individual Holder or one or more of his family members, provided that the
transferee will be subject to the terms of this Section 1.2 to the same
extent as if it were an original Holder hereunder.

     

    (c)           Each
certificate representing Registrable Securities shall (unless otherwise
permitted by the provisions of this Agreement) be stamped or otherwise imprinted
with a legend substantially similar to the following (in addition to any legend
required under applicable state securities laws):

     

    THE
SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, OR UNDER ANY APPLICABLE STATE SECURITIES
LAWS, AND MAY NOT BE SOLD OR OFFERED FOR SALE OR OTHERWISE TRANSFERRED EXCEPT
PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER SAID ACT AND ANY
APPLICABLE STATE SECURITIES LAWS OR AN OPINION OF COUNSEL REASONABLY
SATISFACTORY TO THE ISSUER THAT SUCH REGISTRATION IS NOT REQUIRED.

     

    (d)           The
Company shall be obligated to promptly reissue unlegended certificates at the
request of any Holder thereof if the Holder shall have obtained an opinion of
counsel (which counsel may be counsel to the Company) reasonably acceptable to
the Company to the effect that the securities proposed to be disposed of may
lawfully be so disposed of in compliance with the Securities Act without
registration, qualification or legend.

     

    (e)           Any
legend endorsed on an instrument pursuant to applicable state securities laws
and the stop-transfer instructions with respect to such securities shall be
removed upon receipt by the Company of an order of the appropriate blue sky
authority authorizing such removal or if the Holder shall request such removal
and shall have obtained and delivered to the Company an opinion of counsel
reasonably acceptable to the Company to the effect that such legend and/or
stop-transfer instructions are no longer required pursuant to applicable state
securities laws.

     

    1.3           Company
Registration.

     

    (a)           Right to
Piggyback.  If at any time prior to the five (5) year
anniversary of the date hereof the Company shall determine to register any
shares of Common Stock for its own account, other than a registration relating
solely to employee benefit plans, or a registration relating solely to a
Rule 145 transaction, or a registration on any registration form that does
not permit secondary sales, then the Company will:

     

    (i)          promptly
give to each Holder written notice thereof, which notice briefly describes the
Holders’ rights under this Section 1.3 (including notice
deadlines);

     

    
      
        
        

      

      
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    (ii)         use
its best efforts to include in such registration (and any related filing or
qualification under applicable blue sky laws), except as set forth in
Section 1.3(b) below, and in any underwriting involved therein, all the
Registrable Securities specified in a written request or requests, made by any
Holder and received by the Company within ten (10) days after the written notice
from the Company described in clause (i) above is mailed or delivered by
the Company, provided that such
Holders shall have requested for inclusion in such registration at least ten
percent (10%) of the aggregate number of the Registrable Securities which have
been issued to the Holders prior to the date of such written
request.  Such written request may specify all or a part of a Holder’s
Registrable Securities; and

     

    (iii)       keep
such registration effective for a period of one hundred twenty (120) days or until the Holder
or Holders have completed the distribution described in the registration
statement relating thereto, whichever first occurs.

     

    (b)           Underwriting.  If
the registration of which the Company gives notice is for a registered public
offering involving an underwriting, the Company shall so advise the Holders as a
part of the written notice given pursuant to
Section 1.3(a)(i).  In such event, the right of any Holder to
registration pursuant to this Section 1.3 shall be conditioned upon such
Holder’s participation in such underwriting and the inclusion of such Holder’s
Registrable Securities in the underwriting to the extent provided
herein.  All Holders proposing to distribute their securities through
such underwriting shall (together with the Company and the other holders of
securities of the Company with registration rights to participate therein
distributing their securities through such underwriting) enter into an
underwriting agreement in customary form with the representative of the
underwriter or underwriters selected by the Company.  Notwithstanding
any other provision of this Section 1.3, if the representative of the
underwriters advises the Company in writing that marketing factors require a
limitation on the number of shares to be underwritten, then the representative
may (subject to the limitations set forth below) exclude all Registrable
Securities from, or limit the number of Registrable Securities to be included
in, the registration and underwriting.  The Company shall so advise
all Holders of securities requesting registration, and the number of shares of
securities that are entitled to be included in the registration and underwriting
shall be allocated first to the Company for securities being sold for its own
account and thereafter as set forth in Section 1.10 hereof.  If
any person does not agree to the terms of any such underwriting, then such
person shall be excluded therefrom by written notice from the Company or the
underwriter.  Any Registrable Securities or other securities excluded
or withdrawn from such underwriting shall be withdrawn from such
registration.  If shares are so withdrawn from the registration and if
the number of shares of Registrable Securities to be included in such
registration was previously reduced as a result of marketing factors, then the
Company shall then offer to all persons who have retained the right to include
securities in the registration the right to include additional securities in the
registration in an aggregate amount equal to the number of shares so withdrawn,
with such shares to be allocated among the persons requesting additional
inclusion in accordance with Section 1.10 hereof.

     

    1.4           Expenses
of Registration.  All Registration
Expenses incurred in connection with any registration, qualification or
compliance pursuant to Section 1.3 hereof shall be borne by the
Company.  All Selling Expenses relating to securities so registered
shall be borne by the Holders of such securities pro rata on the basis of the
number of shares of securities so registered on their behalf.

     

    
      
        
        

      

      
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    1.5           Registration
Procedures.  In the case of
each registration effected by the Company pursuant to Section 1.3 hereof,
the Company will keep each Holder advised in writing as to the initiation of
each registration and as to the completion thereof.  At its expense,
the Company will use its best efforts to:

     

    (a)           prepare
and file with the SEC such amendments and supplements to such registration
statement and the prospectus used in connection with such registration statement
as may be necessary to comply with the provisions of the Securities Act with
respect to the disposition of all securities covered by such registration
statement;

     

    (b)           furnish
such number of prospectuses and other documents incident thereto, including any
amendment of or supplement to the prospectus, as a Holder from time to time may
reasonably request;

     

    (c)           notify
each Holder of Registrable Securities covered by such registration statement at
any time when a prospectus relating thereto is required to be delivered under
the Securities Act of the happening of any event as a result of which the
prospectus included in such registration statement, as then in effect, includes
an untrue statement of a material fact or omits to state a material fact
required to be stated therein or necessary to make the statements therein not
misleading or incomplete in the light of the circumstances then existing, and at
the request of any such Holder, prepare and furnish to such Holder a reasonable
number of copies of a supplement to or an amendment of such prospectus as may be
necessary so that, as thereafter delivered to the purchasers of such Registrable
Securities, such prospectus shall not include an untrue statement of a material
fact or omit to state a material fact required to be stated therein or necessary
to make the statements therein not misleading or incomplete in the light of the
circumstances then existing; provided, however, the Company
shall not be obligated to prepare and furnish any such prospectus supplements or
amendments relating to any material nonpublic information at any such time as
the Board of Directors of the Company has determined that, for good business
reasons, the disclosure of such material nonpublic information at that time is
contrary to the best interests of the Company in the circumstances and is not
otherwise required under applicable law (including applicable securities
laws);

     

    (d)           cause
all such Registrable Securities registered pursuant hereunder to be listed on
each securities exchange and/or included in any national quotation system on
which similar securities issued by the Company are then listed or
included;

     

    (e)           provide
a transfer agent and registrar for all Registrable Securities registered
pursuant to such registration statement and a CUSIP number for all such
Registrable Securities, in each case not later than the effective date of such
registration; and

     

    (f)           otherwise
use its best efforts to comply with all applicable rules and regulations of the
SEC, and make available to its security holders, as soon as reasonably
practicable, an earnings statement covering the period of at least twelve (12)
months, but not more than eighteen months, beginning with the first month after
the effective date of the registration statement, which earnings statement shall
satisfy the provisions of Section 11(a) of the Securities Act.

     

    
      
        
        

      

      
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    1.6           Indemnification.

     

    (a)           The
Company will indemnify each Holder, each of such Holder’s officers, directors,
partners, legal counsel and accountants and each person controlling such Holder
within the meaning of Section 15 of the Securities Act, as applicable, with
respect to which registration, qualification, or compliance has been effected
pursuant to this Section 1, and each underwriter, if any, and each person
who controls within the meaning of Section 15 of the Securities Act any
underwriter, against all expenses, claims, losses, damages, and liabilities (or
actions, proceedings, or settlements in respect thereof) arising out of or based
on any untrue statement (or alleged untrue statement) of a material fact
contained in any prospectus, offering circular, or other document (including any
related registration statement, notification, or the like) incident to any such
registration, qualification, or compliance, or based on any omission (or alleged
omission) to state therein a material fact required to be stated therein or
necessary to make the statements therein not misleading, or any violation by the
Company of the Securities Act or any rule or regulation thereunder applicable to
the Company or relating to action or inaction required of the Company in
connection with any such registration, qualification, or compliance, and will
reimburse each such Holder, each of its officers, directors, partners, legal
counsel and accountants and each person controlling such Holder, each such
underwriter, and each person who controls any such underwriter, for any legal
and any other expenses reasonably incurred in connection with investigating and
defending or settling any such claim, loss, damage, liability, or action,
provided that the Company will not be liable in any such case to the extent that
any such claim, loss, damage, liability, or expense arises out of or is based on
any untrue statement or omission based upon written information furnished to the
Company by such Holder or underwriter and stated to be specifically for use
therein.  It is agreed that the indemnity agreement contained in this
Section 1.6(a) shall not apply to amounts paid in settlement of any such
loss, claim, damage, liability, or action if such settlement is effected without
the consent of the Company (which consent shall not be unreasonably
withheld).

     

    (b)           Each
Holder will, if Registrable Securities held by him are included in the
securities as to which such registration, qualification, or compliance is being
effected, indemnify the Company, each of its directors, officers, partners,
legal counsel and accountants and each underwriter, if any, of the Company’s
securities covered by such a registration statement, each person who controls
the Company or such underwriter within the meaning of Section 15 of the
Securities Act, each other such Holder and Other Shareholder, and each of their
officers, directors, and partners, and each person controlling such Holder or
Other Shareholder, against all claims, losses, damages and liabilities (or
actions in respect thereof) arising out of or based on any untrue statement (or
alleged untrue statement) of a material fact contained in any such registration
statement, prospectus, offering circular, or other document, or any omission (or
alleged omission) to state therein a material fact required to be stated therein
or necessary to make the statements therein not misleading, and will reimburse
the Company and such Holders, Other Shareholders, directors, officers, partners,
legal counsel, and accountants, persons, underwriters, or control persons for
any legal or any other expenses reasonably incurred in connection with
investigating or defending any such claim, loss, damage, liability, or action,
in each case to the extent, but only to the extent, that such untrue statement
(or alleged untrue statement) or omission (or alleged omission) is made in such
registration statement, prospectus, offering circular or other document in
reliance upon and in conformity with written information furnished to the
Company by such Holder and stated to be specifically for use therein; provided, however,
(i) that the obligations of such Holder hereunder shall not apply to
amounts paid in settlement of any such claims, losses, damages, or liabilities
(or actions in respect thereof) if such settlement is effected without the
consent of such Holder (which consent shall not be unreasonably withheld) and
(ii) that in no event shall any indemnity under this Section 1.6(b)
exceed the gross proceeds from the offering received by such
Holder.

     

    
      
        
        

      

      
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    (c)           Each
party entitled to indemnification under this Section 1.6 (the “Indemnified Party”)
shall give notice to the party required to provide indemnification (the “Indemnifying Party”)
promptly after such Indemnified Party has actual knowledge of any claim as to
which indemnity may be sought, and shall permit the Indemnifying Party to assume
the defense of such claim or any litigation resulting therefrom, provided that
counsel for the Indemnifying Party, who shall conduct the defense of such claim
or any litigation resulting therefrom, shall be approved by the Indemnified
Party (whose approval shall not unreasonably be withheld), and the Indemnified
Party may participate in such defense at such party’s expense, and provided
further that the failure of any Indemnified Party to give notice as provided
herein shall not relieve the Indemnifying Party of its obligations under this
Section 1.6, to the extent such failure is not prejudicial.  No
Indemnifying Party, in the defense of any such claim or litigation, shall,
except with the consent of each Indemnified Party, consent to entry of any
judgment or enter into any settlement that does not include as an unconditional
term thereof the giving by the claimant or plaintiff of a release to such
Indemnified Party from all liability in respect to such claim or
litigation.  Each Indemnified Party shall furnish such information
regarding itself or the claim in question as an Indemnifying Party may
reasonably request in writing and as shall be reasonably required in connection
with defense of such claim and litigation resulting therefrom.

     

    (d)           If
the indemnification provided for in this Section 1.6 is held by a court of
competent jurisdiction to be unavailable to an Indemnified Party with respect to
any loss, liability, claim, damage, or expense referred to therein, then the
Indemnifying Party, in lieu of indemnifying such Indemnified Party hereunder,
shall contribute to the amount paid or payable by such Indemnified Party as a
result of such loss, liability, claim, damage, or expense in such proportion as
is appropriate to reflect the relative fault of the Indemnifying Party on the
one hand and of the Indemnified Party on the other in connection with the
conduct, statements or omissions that resulted in such loss, liability, claim,
damage, or expense as well as any other relevant equitable
considerations.  The relative fault of the Indemnifying Party and of
the Indemnified Party shall be determined by reference to, among other things,
whether the untrue or alleged untrue statement of a material fact or the
omission to state a material fact relates to information supplied by the
Indemnifying Party or by the Indemnified Party and the parties’ relative intent,
knowledge, access to information, and opportunity to correct or prevent such
statement or omission.

     

    (e)           Notwithstanding
the foregoing, to the extent that the provisions on indemnification and
contribution contained in the underwriting agreement entered into by the
Indemnifying Party and the Indemnified Party in connection with the underwritten
public offering are in conflict with the foregoing provisions, the provisions in
the underwriting agreement shall control.

     

    
      
        
        

      

      
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    1.7           Information
by Holder.  Each Holder of
Registrable Securities shall furnish to the Company such information regarding
such Holder and the distribution proposed by such Holder as the Company may
reasonably request in writing and as shall be reasonably required in connection
with any registration, qualification, or compliance referred to in this
Section 1.

     

    1.8           Rule 144
Reporting.  With a view to
making available the benefits of certain rules and regulations of the SEC that
may permit the sale of the Restricted Securities to the public without
registration, the Company agrees to use its best efforts to:

     

    (a)           make
and keep adequate public information regarding the Company available as those
terms are understood and defined in Rule 144;

     

    (b)           file
with the SEC in a timely manner all reports and other documents required of the
Company under the Securities Act and the Exchange Act; and

     

    (c)           so
long as a Holder owns any Restricted Securities, furnish to the Holder forthwith
upon written request a written statement by the Company as to its compliance
with the reporting requirements of Rule 144 and of the Securities Act and
the Exchange Act, a copy of the most recent annual or quarterly report of the
Company, and such other reports and documents so filed as a Holder may
reasonably request in availing itself of any rule or regulation of the SEC
allowing a Holder to sell any such securities without registration.

     

    1.9           Notice to Discontinue;
Notice by Holders.

     

    (a)           Notice to
Discontinue.  Each Holder agrees by acquisition of such
securities that, upon receipt of any notice from the Company of any event of the
kind described in Section 1.5(c), the Holder will discontinue disposition
of Registrable Securities until the Holder receives copies of the supplemented
or amended prospectus contemplated by Section 1.5(c).  In
addition, if the Company requests, the Holder will deliver to the Company (at
the Company’s expense) all copies, other than permanent file copies then in the
Holder’s possession, of the prospectus covering the Registrable Securities
current at the time of receipt of such notice.  If the Company gives
any such notice, then the time period mentioned in
Section 1.3(a)(iii) shall be extended by the number of days elapsing
between the date of notice and the date that each Holder who has included
Registrable Securities in such registration receives the copies of the
supplemented or amended prospectus contemplated in
Section 1.5(c).

     

    (b)           Notice by
Holders.  Whenever the Holders have requested that any
Registrable Securities be registered pursuant to this Agreement, those Holders
shall notify the Company, at any time when a prospectus relating thereto is
required to be delivered under the Securities Act, of the happening of any
event, which as to any Holder is (i) to its respective knowledge;
(ii) solely within its respective knowledge; and (iii) solely as to
matters concerning that Holder, as a result of which the prospectus included in
the registration statement, then in effect, contains an untrue statement of a
material fact or omits to state any material fact necessary to make the
statements therein, in light of the circumstances then existing, not
misleading.

     

    
      
        
        

      

      
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    1.10         Allocation
of Registration Opportunities.  In any circumstance in which
all of the Registrable Securities and other shares of the Company with
registration rights (the “Other Shares”)
requested to be included in a registration contemplated by Section 1.3(a)
cannot be so included as a result of limitations of the aggregate number of
shares of Registrable Securities and Other Shares that may be so included, the
number of shares of Registrable Securities and Other Shares that may be so
included shall be allocated, subject to the registration rights applicable to
the Other Shares which shall control in event of a conflict with provisions
hereof, among the Holders and Other Shareholders requesting inclusion of shares
pro rata on the basis of the number of shares of Registrable Securities and
Other Shares held by such Holders and Other Shareholders; provided, however, that such
allocation shall not operate to reduce the aggregate number of Registrable
Securities and Other Shares to be included in such registration, if any Holder
or Other Shareholder does not request inclusion of the maximum number of shares
of Registrable Securities and Other Shares allocated to such Holder or Other
Shareholder pursuant to the above-described procedure, then the remaining
portion of such allocation shall be reallocated among those requesting Holders
and Other Shareholders whose allocations did not satisfy their requests pro rata
on the basis of the number of shares of Registrable Securities and Other Shares
which would be held by such Holders and Other Shareholders, assuming conversion,
and this procedure shall be repeated until all of the shares of Registrable
Securities and Other Shares which may be included in the registration on behalf
of the Holders and Other Shareholders have been so allocated.

     

    
      	
              2.

            	
              REPRESENTATIONS
      AND WARRANTIES OF THE COMPANY AND THE
  SHAREHOLDERS

            

    

     

    2.1           Representations
and Warranties of the Company.  The Company
represents and warrants to the Shareholders as follows:

     

    (a)           The
execution, delivery and performance of this Agreement by the Company have been
duly authorized by all requisite corporate action and will not violate any
provision of law, any order of any court or other agency of government, the
Articles of Incorporation or Bylaws of the Company, each as amended, or any
provision of any material indenture, agreement or other instrument to which it
or any of its properties or assets is bound, or conflict with, result in a
breach of or constitute (with due notice or lapse of time or both) a default
under any such material indenture, agreement or other instrument, or result in
the creation or imposition of any lien, charge or encumbrance of any nature
whatsoever upon any of the properties or assets of the Company.

     

    (b)           This
Agreement has been duly executed and delivered by the Company and constitutes
the legal, valid and binding obligation of the Company, enforceable against the
Company in accordance with its terms, subject to applicable bankruptcy,
insolvency and other similar laws affecting the enforceability of creditors’
rights generally, general equitable principles, the discretion of courts in
granting equitable remedies and public policy considerations.

     

    
      
        
        

      

      
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    2.2           Representations
and Warranties of the Shareholders.  Each Shareholder
(severally as to itself and not jointly) represents and warrants to the Company
as follows:

     

    (a)           The
execution, delivery and performance of this Agreement by the Shareholder will
not violate any provision of law, any order of any court or any agency or
government, or any provision of any material indenture or agreement or other
instrument to which it or any of its properties or assets is bound, or conflict
with, result in a breach of or constitute (with due notice or lapse of time or
both) a default under any such material indenture, agreement or other
instrument, or result in the creation or imposition of any lien, charge, or
encumbrance of any nature whatsoever upon any of the properties or assets of the
Shareholder.

     

    (b)           This
Agreement has been duly executed and delivered by the Shareholder and
constitutes the legal, valid and binding obligation of the Shareholder,
enforceable against the Shareholder in accordance with its terms, subject to
applicable bankruptcy, insolvency and other similar laws affecting the
enforceability of creditors’ rights generally, general equitable principles, the
discretion of courts in granting equitable remedies and public policy
considerations.

     

    
      	
              3.

            	
              MISCELLANEOUS

            

    

     

    3.1           Delay of
Registration.  No Holder shall have any right to take any
action to restrain, enjoin, or otherwise delay any registration as the result of
any controversy that might arise with respect to the interpretation or
implementation of Section 1 hereof.

     

    3.2           Successors
and Assigns.  Except as
otherwise expressly provided herein, the provisions hereof shall inure to the
benefit of, and be binding upon, the successors, assigns, heirs, executors and
administrators of the parties hereto.

     

    3.3           Entire
Agreement; Amendment; Waiver.  This Agreement
constitutes the full and entire understanding and agreement between the parties
with regard to the subject hereof, provided that nothing herein affects the
Subscription Agreement by and between the Company and a Shareholder pursuant to
which such Shareholder subscribed for and purchased the Common Stock and
Warrants which are the subject hereof.  Neither this Agreement nor any
term hereof may be amended, waived, discharged or terminated, except by a
written instrument signed by the Company and the Holders of at least fifty-one
percent (51%) of the Registrable Securities and any such amendment, waiver,
discharge or termination shall be binding on all the Holders, but in no event
shall the obligation of any Holder hereunder be materially increased, except
upon the written consent of such Holder.

     

    3.4           Notices,
etc.  All notices and other communications required or
permitted hereunder shall be in writing and shall be mailed by United States
first-class mail, postage prepaid, or delivered personally by hand or nationally
recognized courier addressed (a) if to a Holder, as indicated in the stock
records of the Company or at such other address as such Holder shall have
furnished to the Company in writing, or (b) if to the Company, at
400 Galleria Parkway, Suite 200, Atlanta, Georgia 30339, Attn: Chief
Financial Officer, or at such other address as the Company shall have furnished
to each Holder in writing, together with a copy to Rogers & Hardin LLP,
2700 International Tower, 229 Peachtree Street, Atlanta, Georgia
30303, Attn:  Robert C. Hussle, Esq.  All such notices and
other written communications shall be effective on the date of mailing or
delivery.

     

    
      
        
        

      

      
        -10-

        
          

        

      

      
        
        

      

    

     

    3.5           Delays or
Omissions.  No delay or
omission to exercise any right, power or remedy accruing to any Holder, upon any
breach or default of the Company under this Agreement shall impair any such
right, power or remedy of such Holder nor shall it be construed to be a waiver
of any such breach or default, or an acquiescence therein, or of or in any
similar breach or default thereafter occurring; nor shall any waiver of any
single breach or default be deemed a waiver of any other breach or default
therefore or thereafter occurring.  Any waiver, permit, consent or
approval of any kind or character on the part of any Holder of any breach or
default under this Agreement or any waiver on the part of any Holder of any
provisions or conditions of this Agreement must be made in writing and shall be
effective only to the extent specifically set forth in such
writing.  All remedies, either under this Agreement or by law or
otherwise afforded to any Holder, shall be cumulative and not
alternative.

     

    3.6           Rights;
Severability.  Unless otherwise
expressly provided herein, a Holder’s rights hereunder are several rights, not
rights jointly held with any of the other Holders.  In case any
provision of the Agreement shall be invalid, illegal or unenforceable, the
validity, legality and enforceability of the remaining provisions shall not in
any way be affected or impaired thereby.

     

    3.7           Information
Confidential.  Each Holder
acknowledges that the information received by them pursuant hereto may be
confidential and for its use only, and it will not use such confidential
information in violation of the Exchange Act or reproduce, disclose or
disseminate such information to any other person (other than its employees or
agents having a need to know the contents of such information, and its
attorneys), except in connection with the exercise of rights under this
Agreement, unless the Company has made such information available to the public
generally or such Holder is required to disclose such information by a
governmental body.

     

    3.8           Titles
and Subtitles.  The titles of the
paragraphs and subparagraphs of this Agreement are for convenience of reference
only and are not to be considered in construing this Agreement.

     

    3.9           Counterparts.  This Agreement
may be executed and delivered (including by facsimile transmission) in any
number of counterparts, and by the different parties hereto in separate
counterparts, each of which when executed and delivered shall be deemed to be an
original, but all of which together shall constitute one and the same
instrument.

     

    3.10      
  Governing
Law; Jurisdiction.  This Agreement shall be governed by and
construed and enforced in accordance with the internal laws of the State of
Georgia without reference to Georgia’s choice of law rules and each of the
parties hereto hereby consents to personal jurisdiction in any federal or state
court in the State of Georgia.

     

     

    [Signature
Page Follows]

    
      
        
        

      

      
        -11-

        
          

        

      

      
        
        

      

    

     

    IN WITNESS WHEREOF, the
parties hereto have duly executed this Agreement or have caused this Agreement
to be duly executed on its behalf by an officer or representative thereto duly
authorized, all as of the date first above written.

     

     

    
      	 
      	VERSO
      TECHNOLOGIES, INC.	 
      
	 	 	 
	 
      	 
      	 
      	 
      
	 
      	
              By:

            	  	 
      
	 
      	 
      	
              Steven
      A. Odom

            	 
      
	 
      	 
      	
              Chief
      Executive Officer

            	 
      

    

    

    

     [Signatures
Continued]

    
      
        
        

      

      
        -12-

        
          

        

      

      
        
        

      

    

     

    SHAREHOLDER:

     

    

     

    
      	 
      	 
        	 
      
	 
      	 
      	 
      
	 
      	
              Number
      of Shares: ___________

            	 
      
	 	 	 
	 
      	
              Number
      of Warrants:_________

            	 
      

    

    

     

     

    -13-ex4-76.htm

    
      

    

    EXHIBIT
4.76

     

    REGISTRATION
RIGHTS AGREEMENT

     

    This
Registration Rights Agreement (this “Agreement”) is made and entered into as of
February 25, 2008, by and between Verso Technologies, Inc., a Minnesota
corporation (the “Company”), and Valens Offshore SPV II, Corp. (the
“Purchaser”).

     

    This
Agreement is made pursuant to (i) the Security Agreement, dated as of September
20, 2006, by and among Laurus Master Fund, Ltd. (“Laurus”), Valens U.S. SPV I,
LLC (as partial assignee)(“Valens US”), the Company and various subsidiaries of
the Company (as amended, modified or supplemented from time to time, the
“Security Agreement”), as such Security Agreement and Ancillary Agreements (as
defined in the Security Agreement) have been assigned in part by Laurus to
Valens US pursuant to that certain Assignment of Loans, Liens and Documents
dated as of December 21, 2007 (the “Assignment”) between Laurus, Valens US and
Purchaser and (ii) the Letter Agreement dated as of the date hereof by and among
the Company, Laurus, Valens US and the Purchaser (the “Consent”).

     

    The
Company and the Purchaser hereby agree as follows:

     

    1.            
Definitions.  Capitalized
terms used and not otherwise defined herein that are defined in the Security
Agreement shall have the meanings given such terms in the Security
Agreement.  As used in this Agreement, the following terms shall have
the following meanings:

     

    “Closing Shares” means
173,717 shares of Common Stock issued by the Company to the Purchaser pursuant
to the Consent.

     

    “Commission” means the
Securities and Exchange Commission.

     

    “Common Stock” means shares
of the Company’s common stock, par value $0.01 per share.

     

    “Effectiveness Date” means a
date no later than one hundred twenty (120) days following the date
hereof.

     

    “Effectiveness Period” has
the meaning set forth in Section 2(a).

     

    “Exchange Act” means the
Securities Exchange Act of 1934, as amended, and any successor
statute.

     

    “Filing Date” means April 15,
2008.

     

    “Holder” or “Holders” means the Purchaser
or any of its affiliates or transferees to the extent any of them hold Closing
Shares, other then those purchasing Closing Shares in a market
transaction.

     

    “Indemnified Party” has the
meaning set forth in Section 5(c).

     

    “Indemnifying Party” has the
meaning set forth in Section 5(c).

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    “Proceeding” means an action,
claim, suit, investigation or proceeding (including, without limitation, an
investigation or partial proceeding, such as a deposition), whether commenced or
threatened.

     

    “Prospectus” means the
prospectus included in the Registration Statement (including, without
limitation, a prospectus that includes any information previously omitted from a
prospectus filed as part of an effective registration statement in reliance upon
Rule 430A promulgated under the Securities Act), as amended or supplemented by
any prospectus supplement, with respect to the terms of the offering of any
portion of the Closing Shares covered by such Registration Statement, and all
other amendments and supplements to the Prospectus, including post-effective
amendments, and all material incorporated by reference or deemed to be
incorporated by reference in such Prospectus.

     

    “Registration Statement”
means the registration statement required to be filed hereunder, including the
Prospectus therein, amendments and supplements to such registration statement or
Prospectus, including pre- and post-effective amendments, all exhibits thereto,
and all material incorporated by reference or deemed to be incorporated by
reference in such registration statement.

     

    “Rule 144” means Rule 144
promulgated by the Commission pursuant to the Securities Act, as such Rule may
be amended from time to time, or any similar rule or regulation hereafter
adopted by the Commission having substantially the same effect as such
Rule.

     

    “Rule 415” means Rule 415
promulgated by the Commission pursuant to the Securities Act, as such Rule may
be amended from time to time, or any similar rule or regulation hereafter
adopted by the Commission having substantially the same effect as such
Rule.

     

    “Securities Act” means the
Securities Act of 1933, as amended, and any successor statute.

     

    “Security Agreement” has the
meaning given to such term in the Preamble hereto.

     

    “Trading Market” means any of
the NASD Over The Counter Bulletin Board, the NASDAQ Capital Market, the NASDAQ
National Market, the American Stock Exchange or the New York Stock
Exchange.

     

    2.        
    Registration.

     

    (a)         
  On or prior to the Filing Date, the Company shall prepare and file
with the Commission a Registration Statement covering the Closing Shares for a
selling stockholder resale offering to be made on a continuous basis pursuant to
Rule 415.  The Registration Statement shall be on Form S-3 (except if
the Company is not then eligible to register for resale the Closing Shares on
Form S-3, in which case such registration shall be on another appropriate form
in accordance herewith).  The Company shall use its commercially
reasonable efforts to cause the Registration Statement to become effective and
remain effective as provided herein.  The Company shall use its
commercially reasonable efforts to cause the Registration Statement to be
declared effective no later than the Effectiveness Date.  The Company
shall use its commercially reasonable efforts to keep the Registration Statement
continuously effective under the Securities Act until the date which is the
earlier date of when (i) all Closing Shares covered by such Registration
Statement have been sold or (ii) all Closing Shares covered by such Registration
Statement may be sold immediately without registration under the Securities Act
and without volume restrictions pursuant to Rule 144(k), as determined by the
counsel to the Company pursuant to a written opinion letter to such effect,
addressed and acceptable to the Company’s transfer agent and the affected
Holders (each, an “Effectiveness Period”).

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    (b)          
Within three business days of the Effectiveness Date, the Company shall cause
its counsel to issue a blanket opinion in substantially the form attached hereto
as Exhibit A, to the transfer agent stating that the shares are subject to an
effective registration statement and can be reissued free of restrictive legend
upon notice of a sale by the Purchaser and confirmation by the Purchaser that it
has complied with the prospectus delivery requirements, provided that the
Company has not advised the transfer agent orally or in writing that the opinion
has been withdrawn. Copies of the blanket opinion required by this Section 2(b)
shall be delivered to the Purchaser within the time frame set forth
above.

     

    3.         
   Registration
Procedures.  If and whenever the Company is required by the
provisions hereof to effect the registration of any Closing Shares under the
Securities Act, the Company will, as expeditiously as possible:

     

    (a)      
     prepare and file with the Commission a
Registration Statement with respect to such Closing Shares, respond as promptly
as possible to any comments received from the Commission, and use its
commercially reasonable efforts to cause such Registration Statement to become
and remain effective for the Effectiveness Period with respect thereto, and
promptly provide to the Purchaser copies of all filings and Commission letters
of comment relating thereto;

     

    (b)        
   prepare and file with the Commission such amendments and
supplements to such Registration Statement and the Prospectus used in connection
therewith as may be necessary to comply with the provisions of the Securities
Act with respect to the disposition of all Closing Shares covered by such
Registration Statement and to keep such Registration Statement effective until
the expiration of the Effectiveness Period applicable to such Registration
Statement;

     

    (c)       
    furnish to the Purchaser such number of copies of the
Registration Statement and the Prospectus included therein (including each
preliminary Prospectus) as the Purchaser reasonably may request to facilitate
the public sale or disposition of the Closing Shares covered by such
Registration Statement;

     

    (d)      
     use its commercially reasonable efforts to
register or qualify the Purchaser’s Closing Shares covered by such Registration
Statement under the securities or “blue sky” laws of such jurisdictions within
the United States as the Purchaser may reasonably request, provided, however,
that the Company shall not for any such purpose be required to qualify generally
to transact business as a foreign corporation in any jurisdiction where it is
not so qualified or to consent to general service of process in any such
jurisdiction;

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    (e)    
       list the Closing Shares covered by
such Registration Statement with any securities exchange on which the Common
Stock of the Company is then listed;

     

    (f)   
        immediately notify the Purchaser
at any time when a Prospectus relating thereto is required to be delivered under
the Securities Act, of the happening of any event of which the Company has
knowledge as a result of which the Prospectus contained in such Registration
Statement, as then in effect, includes an untrue statement of a material fact or
omits to state a material fact required to be stated therein or necessary to
make the statements therein not misleading in light of the circumstances then
existing; and

     

    (g)           make
available for inspection by the Purchaser and any attorney, accountant or other
agent retained by the Purchaser, all publicly available, non-confidential
financial and other records, pertinent corporate documents and properties of the
Company, and cause the Company’s officers, directors and employees to supply all
publicly available, non-confidential information reasonably requested by the
attorney, accountant or agent of the Purchaser.

     

    Notwithstanding
anything herein to the contrary, upon written notice from the Company, the
Company may require that the Holders suspend offers and sales of Closing Shares
pursuant to Section 7 hereof due to the fact that (1) (a) there is material
non-public information regarding the Company which the Company’s Board of
Directors (the “Board”), after advice of legal counsel, reasonably determines
not to be in the Company’s best interest to disclose and which the Company is
not otherwise required to then disclose or (b) there is a significant business
opportunity (including, but not limited to, the acquisition or disposition of
assets (other than in the ordinary course of business) or any merger,
consolidation, tender offer or other similar transaction available to the
Company which the Board reasonably determines would be seriously detrimental to
the Company and its shareholders to then disclose, and which the Company would
be required to disclose in a Registration Statement; provided that such period (a
“Blackout Period”) shall end on the earlier to occur of (i) the date upon which
the circumstances that give rise to the commencement of the period would no
longer cause the registration and distribution of the Closing Shares to be
seriously detrimental to the Company and its shareholders and (ii) such time as
the Company (A) notifies the Holders that the Company will no longer delay such
filing of the registration statement, (B) recommences steps to make such
registration statement effective or (c) allows sales pursuant to such
registration statement to resume; provided further in no event shall the
aggregate Blackout Periods in any rolling 12-month period exceed 60 days in the
aggregate for such 12-month period.

     

    4.          
  Registration
Expenses.  All expenses relating to the Company’s compliance
with Sections 2 and 3 hereof, including, without limitation, all registration
and filing fees, printing expenses, fees and disbursements of counsel and
independent public accountants for the Company, fees and expenses (including
reasonable counsel fees) incurred in connection with complying with state
securities or “blue sky” laws, fees of the NASD, transfer taxes, fees of
transfer agents and registrars, fees of, and disbursements incurred by, one
counsel for the Holders are called “Registration Expenses”. All selling
commissions applicable to the sale of Closing Shares, including any fees and
disbursements of any special counsel to the Holders beyond those included in
Registration Expenses, are called “Selling Expenses.”  The Company
shall only be responsible for all Registration Expenses.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    5.         
   Indemnification.

     

    (a)            In
the event of a registration of any Closing Shares under the Securities Act
pursuant to this Agreement, the Company will indemnify and hold harmless each
Holder, and its officers, directors and each other person, if any, who controls
such Holder within the meaning of the Securities Act, against any losses,
claims, damages or liabilities, joint or several, to which such Holder, or such
persons may become subject under the Securities Act or otherwise, insofar as
such losses, claims, damages or liabilities (or actions in respect thereof)
arise out of or are based upon any untrue statement or alleged untrue statement
of any material fact contained in the Registration Statement under which such
Closing Shares were registered under the Securities Act pursuant to this
Agreement, any preliminary Prospectus or final Prospectus contained therein, or
any amendment or supplement thereof, or arise out of or are based upon the
omission or alleged omission to state therein a material fact required to be
stated therein or necessary to make the statements therein not misleading, and
will reimburse such Holder, and each such person for any reasonable legal or
other expenses incurred by them in connection with investigating or defending
any such loss, claim, damage, liability or action; provided, however, that the
Company will not be liable in any such case if and to the extent that any such
loss, claim, damage or liability arises out of or is based upon an untrue
statement or alleged untrue statement or omission or alleged omission so made in
conformity with information furnished by or on behalf of the Purchaser or any
such person in writing specifically for use in any such document.

     

    (b)       
    In the event of a registration of the Closing Shares
under the Securities Act pursuant to this Agreement, the Purchaser will
indemnify and hold harmless the Company, and its officers, directors and each
other person, if any, who controls the Company within the meaning of the
Securities Act, against all losses, claims, damages or liabilities, joint or
several, to which the Company or such persons may become subject under the
Securities Act or otherwise, insofar as such losses, claims, damages or
liabilities (or actions in respect thereof) arise out of or are based upon any
untrue statement or alleged untrue statement of any material fact which was
furnished in writing by the Purchaser to the Company expressly for use in (and
such information is contained in) the Registration Statement under which such
Closing Shares were registered under the Securities Act pursuant to this
Agreement, any preliminary Prospectus or final Prospectus contained therein, or
any amendment or supplement thereof, or arise out of or are based upon the
omission or alleged omission to state therein a material fact required to be
stated therein or necessary to make the statements therein not misleading, and
will reimburse the Company and each such person for any reasonable legal or
other expenses incurred by them in connection with investigating or defending
any such loss, claim, damage, liability or action, provided, however, that the
Purchaser will be liable in any such case if and only to the extent that any
such loss, claim, damage or liability arises out of or is based upon an untrue
statement or alleged untrue statement or omission or alleged omission so made in
conformity with information furnished in writing to the Company by or on behalf
of the Purchaser specifically for use in any such
document.  Notwithstanding the provisions of this paragraph, the
Purchaser shall not be required to indemnify any person or entity in excess of
the amount of the aggregate net proceeds received by the Purchaser in respect of
Closing Shares in connection with any such registration under the Securities
Act.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    (c)       
    Promptly after receipt by a party entitled to claim
indemnification hereunder (an “Indemnified Party”) of notice of the commencement
of any action, such Indemnified Party shall, if a claim for indemnification in
respect thereof is to be made against a party hereto obligated to indemnify such
Indemnified Party (an “Indemnifying Party”), notify the Indemnifying Party in
writing thereof, but the omission so to notify the Indemnifying Party shall not
relieve it from any liability which it may have to such Indemnified Party other
than under this Section 5(c) and shall only relieve it from any liability which
it may have to such Indemnified Party under this Section 5(c) if and to the
extent the Indemnifying Party is prejudiced by such omission. In case any such
action shall be brought against any Indemnified Party and it shall notify the
Indemnifying Party of the commencement thereof, the Indemnifying Party shall be
entitled to participate in and, to the extent it shall wish, to assume and
undertake the defense thereof with counsel satisfactory to such Indemnified
Party, and, after notice from the Indemnifying Party to such Indemnified Party
of its election so to assume and undertake the defense thereof, the Indemnifying
Party shall not be liable to such Indemnified Party under this Section 5(c) for
any legal expenses subsequently incurred by such Indemnified Party in connection
with the defense thereof; if the Indemnified Party retains its own counsel, then
the Indemnified Party shall pay all fees, costs and expenses of such counsel,
provided, however, that, if the
defendants in any such action include both the Indemnified Party and the
Indemnifying Party and the Indemnified Party shall have reasonably concluded
that there may be reasonable defenses available to it which are different from
or additional to those available to the Indemnifying Party or if the interests
of the Indemnified Party reasonably may be deemed to conflict with the interests
of the Indemnifying Party, the Indemnified Party shall have the right to select
one separate counsel and to assume such legal defenses and otherwise to
participate in the defense of such action, with the reasonable expenses and fees
of such separate counsel and other expenses related to such participation to be
reimbursed by the Indemnifying Party as incurred.

     

    (d)     
      In order to provide for just and equitable
contribution in the event of joint liability under the Securities Act in any
case in which either (i) the Purchaser, or any officer, director or controlling
person of the Purchaser, makes a claim for indemnification pursuant to this
Section 5 but it is judicially determined (by the entry of a final judgment or
decree by a court of competent jurisdiction and the expiration of time to appeal
or the denial of the last right of appeal) that such indemnification may not be
enforced in such case notwithstanding the fact that this Section 5 provides for
indemnification in such case, or (ii) contribution under the Securities Act may
be required on the part of the Purchaser or such officer, director or
controlling person of the Purchaser in circumstances for which indemnification
is provided under this Section 5; then, and in each such case, the Company and
the Purchaser will contribute to the aggregate losses, claims, damages or
liabilities to which they may be subject (after contribution from others) in
such proportion so that the Purchaser is responsible only for the portion
represented by the percentage that the public offering price of its securities
offered by the Registration Statement bears to the public offering price of all
securities offered by such Registration Statement, provided, however, that, in any
such case, (A) the Purchaser will not be required to contribute any amount in
excess of the public offering price of all such securities offered by it
pursuant to such Registration Statement; and (B) no person or entity guilty of
fraudulent misrepresentation (within the meaning of Section 10(f) of the Act)
will be entitled to contribution from any person or entity who was not guilty of
such fraudulent misrepresentation.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    6.            
Representations and
Warranties.

     

    (a)        
   The Common Stock is registered pursuant to Section 12(b) or
12(g) of the Exchange Act and, except with respect to certain matters which the
Company has disclosed to the Purchaser on Schedule 12(u) to the
Security Agreement, the Company has timely filed all proxy statements, reports,
schedules, forms, statements and other documents required to be filed by it
under the Exchange Act since December 31, 2006.  The Company has filed
(i) its Annual Report on Form 10-K for the fiscal year ended December 31, 2006
and (ii) its Quarterly Report on Form 10-Q for the fiscal quarters ended March
31, 2007, June 30, 2007 and September 30, 2007 (collectively, the “SEC
Reports”).  Each SEC Report was, at the time of its filing, in
substantial compliance with the requirements of its respective form and none of
the SEC Reports, nor the financial statements (and the notes thereto) included
in the SEC Reports, as of their respective filing dates, contained any untrue
statement of a material fact or omitted to state a material fact required to be
stated therein or necessary to make the statements therein, in light of the
circumstances under which they were made, not misleading.  The
financial statements of the Company included in the SEC Reports comply as to
form in all material respects with applicable accounting requirements and the
published rules and regulations of the Commission or other applicable rules and
regulations with respect thereto.  Such financial statements have been
prepared in accordance with generally accepted accounting principles (“GAAP”)
applied on a consistent basis during the periods involved (except (i) as may be
otherwise indicated in such financial statements or the notes thereto or (ii) in
the case of unaudited interim statements, to the extent they may not include
footnotes or may be condensed) and fairly present in all material respects the
financial condition, the results of operations and the cash flows of the Company
and its subsidiaries, on a consolidated basis, as of, and for, the periods
presented in each such SEC Report.

     

    (b)        
   Except as set forth in Schedule 6(b) hereto, the Common Stock
is listed for trading on the NASDAQ Capital Market and satisfies all
requirements for the continuation of such listing, and the Company shall do all
things necessary for the continuation of such listing.  Except as set
forth on Schedule 6(b) hereto, the Company has not received any notice that its
Common Stock will be delisted from the NASDAQ Capital Market (except for prior
notices which have been fully remedied) or that the Common Stock does not meet
all requirements for the continuation of such listing

     

    (c)      
     Neither the Company, nor any of its affiliates,
nor any person acting on its or their behalf, has directly or indirectly made
any offers or sales of any security or solicited any offers to buy any security
under circumstances that would cause the offering of the Securities pursuant to
the Security Agreement to be integrated with prior offerings by the Company for
purposes of the Securities Act which would prevent the Company from selling the
Common Stock pursuant to Rule 506 under the Securities Act, or any applicable
exchange-related stockholder approval provisions, nor will the Company or any of
its affiliates or subsidiaries take any action or steps that would cause the
offering of the Common Stock to be integrated with other offerings (other than
such concurrent offering to the Purchaser).

     

    (d)    
       The Closing Shares are restricted
securities under the Securities Act as of the date of this
Agreement.  The Company will not issue any stop transfer order or
other order impeding the sale and delivery of any of the Closing Shares at such
time as such Closing Shares are registered for public sale or an exemption from
registration is available, except as required by federal or state securities
laws.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    (e)           The
Company understands the nature of the Closing Shares and recognizes that the
issuance of such Closing Shares may have a potential dilutive
effect.  The Company specifically acknowledges that its obligation to
issue the Closing Shares is binding upon the Company and enforceable regardless
of the dilution such issuance may have on the ownership interests of other
shareholders of the Company.

     

    (f)     
      Except for agreements made in the ordinary
course of business, there is no agreement that has not been filed with the
Commission as an exhibit to a registration statement or to a form required to be
filed by the Company under the Exchange Act, the breach of which could
reasonably be expected to have a material and adverse effect on the Company and
its subsidiaries, or would prohibit or otherwise interfere with the ability of
the Company to enter into and perform any of its obligations under this
Agreement in any material respect.

     

    (g)    
       The Company shall have authorized and
reserved a sufficient number of shares of Common Stock to issue to the Purchaser
the Closing Shares.

     

    7.       
     Miscellaneous.

     

    (a)  
         Remedies.  In the
event of a breach by the Company or by a Holder, of any of their respective
obligations under this Agreement, each Holder or the Company, as the case may
be, in addition to being entitled to exercise all rights granted by law and
under this Agreement, including recovery of damages, will be entitled to
specific performance of its rights under this Agreement.

     

    (b)      
     No Piggyback on
Registrations.  Except as and to the extent set forth on
Schedule 7(b) hereto, neither the Company nor any of its security holders (other
than the Holders in such capacity pursuant hereto) may include securities of the
Company in the Registration Statement other than the Closing Shares, and the
Company shall not after the date hereof enter into any agreement providing any
such right for inclusion of shares in the Registration Statement to any of its
security holders; provided, however, that the Company may include in the
Registration Statement any of the Company’s securities held by Laurus, Valens US
or the Purchaser which are entitled to registration rights pursuant to
agreements with the Company other than this Agreement.  Except as and
to the extent specified in Schedule 7(b) hereto,
the Company has not previously entered into any agreement granting any
registration rights with respect to any of its securities to any Person that
have not been fully satisfied.

     

    (c)        
   Obligations
of Holders.  Each Holder covenants and agrees that it will
comply with the prospectus delivery requirements of the Securities Act as
applicable to it in connection with sales of Closing Shares pursuant to the
Registration Statement.  In connection with the registration of
Closing Shares pursuant to the Registration Statement, each Holder
shall:  (i) timely furnish to the Company a completed shareholder
questionnaire in a form reasonably acceptable to the Company and such
information in writing regarding itself and the intended method of disposition
of such Closing Shares as the Company shall reasonably request in order to
effect the registration thereof; (ii)  notify the Company when it has
sold all of the Closing Shares held by it; and (iii) notify the Company in the
event that any information supplied by such Holder in writing for inclusion in
such Registration Statement or related Prospectus is untrue or omits to state a
material fact required to be stated therein or necessary to make such
information not misleading in light of the circumstances then
existing.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    (d)       
    Discontinued
Disposition.  Each Holder agrees by its acquisition of such
Closing Shares that, upon receipt of a notice from the Company of the occurrence
of a Discontinuation Event (as defined below), such Holder will forthwith
discontinue disposition of such Closing Shares under the Registration Statement
until such Holder’s receipt of the copies of the supplemented Prospectus and/or
amended Registration Statement or until it is advised in writing (the “Advice”)
by the Company that the use of the applicable Prospectus may be resumed, and, in
either case, has received copies of any additional or supplemental filings that
are incorporated or deemed to be incorporated by reference in such Prospectus or
Registration Statement.  The Company may provide appropriate stop
orders to enforce the provisions of this paragraph.  For purposes of
this Agreement, a “Discontinuation Event” shall mean (i) when the Commission
notifies the Company whether there will be a “review” of such Registration
Statement and whenever the Commission comments in writing on such Registration
Statement (the Company shall provide true and complete copies thereof and all
written responses thereto to each of the Holders); (ii) any request by the
Commission or any other Federal or state governmental authority for amendments
or supplements to such Registration Statement or Prospectus or for additional
information; (iii) the issuance by the Commission of any stop order suspending
the effectiveness of such Registration Statement covering any or all of the
Closing Shares or the initiation of any Proceedings for that purpose; (iv) the
receipt by the Company of any notification with respect to the suspension of the
qualification or exemption from qualification of any of the Closing Shares for
sale in any jurisdiction, or the initiation or threatening of any Proceeding for
such purpose; (v) the occurrence of any event or passage of time that makes the
financial statements included in such Registration Statement ineligible for
inclusion therein or any statement made in such Registration Statement or
Prospectus or any document incorporated or deemed to be incorporated therein by
reference untrue in any material respect or that requires any revisions to such
Registration Statement, Prospectus or other documents so that, in the case of
such Registration Statement or Prospectus, as the case may be, it will not
contain any untrue statement of a material fact or omit to state any material
fact required to be stated therein or necessary to make the statements therein,
in light of the circumstances under which they were made, not misleading; (vii)
the occurrence or existence of a Blackout Period and/or (vii) the occurrence of
an event described in Section 7(c)(iii) hereof.

     

    (e)        
   Piggy-Back
Registrations.  If at any time during any Effectiveness Period
there is not an effective Registration Statement covering all of the Closing
Shares required to be covered during such Effectiveness Period and the Company
shall determine to prepare and file with the Commission a registration statement
relating to an offering for its own account or the account of others under the
Securities Act of any of its equity securities, other than on Form S-4 or
Form S-8 (each as promulgated under the Securities Act) or their then
equivalents relating to equity securities to be issued solely in connection with
any acquisition of any entity or business or equity securities issuable in
connection with stock option or other employee benefit plans, then the Company
shall send to each Holder written notice of such determination and, if within
fifteen (15) days after receipt of such notice, any such Holder shall so request
in writing, the Company shall include in such registration statement all or any
part of such Closing Shares such Holder requests to be registered, to the extent
the Company may do so without violating registration rights of others which
exist as of the date of this Agreement, subject to customary underwriter
cutbacks applicable to all holders of registration rights and subject to
obtaining any required consent of any selling stockholder(s) to such inclusion
under such registration statement.

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    (f)   
        Amendments and
Waivers.  The provisions of this Agreement, including the
provisions of this sentence, may not be amended, modified or supplemented, and
waivers or consents to departures from the provisions hereof may not be given,
unless the same shall be in writing and signed by the Company and the Holders of
the then outstanding Closing Shares.  Notwithstanding the foregoing, a
waiver or consent to depart from the provisions hereof with respect to a matter
that relates exclusively to the rights of certain Holders and that does not
directly or indirectly affect the rights of other Holders may be given by
Holders of at least a majority of the Closing Shares to which such waiver or
consent relates; provided, however, that the
provisions of this sentence may not be amended, modified, or supplemented except
in accordance with the provisions of the immediately preceding
sentence.

     

    (g)  
         Notices.  Any notice
or request hereunder may be given to the Company or the Purchaser at the
respective addresses set forth below or as may hereafter be specified in a
notice designated as a change of address under this Section 7(g).  Any
notice or request hereunder shall be given by registered or certified mail,
return receipt requested, hand delivery, overnight mail, Federal Express or
other national overnight next day carrier (collectively, “Courier”) or telecopy
(confirmed by mail).  Notices and requests shall be, in the case of
those by hand delivery, deemed to have been given when delivered to any party to
whom it is addressed, in the case of those by mail or overnight mail, deemed to
have been given three (3) business days after the date when deposited in the
mail or with the overnight mail carrier, in the case of a Courier, the next
business day following timely delivery of the package with the Courier, and, in
the case of a telecopy, when confirmed.  The address for such notices
and communications shall be as follows:

     

    
      	
              If
      to the Company:

            	
              Verso
      Technologies, Inc.

            
	 
      	
              400
      Galleria Parkway

            
	 
      	
              Suite
      200

            
	 
      	
              Atlanta,
      Georgia  30339

            
	 
      	
              Attention:  Chief
      Financial Officer

            
	 
      	
              Facsimile:  (678)
      589-3780

            
	 	 
	 	
              with
      a copy to:

            
	 
      	 
      
	 
      	
              Rogers
      & Hardin LLP

            
	 
      	
              2700
      International Tower

            
	 
      	
              229
      Peachtree Street, NE

            
	 
      	
              Atlanta,
      Georgia  30303

            
	 
      	
              Attention:  Robert
      C. Hussle, Esq.

            
	 
      	
              Facsimile:  (404)
      525-2224

            

    

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    
      	
              If
      to a Purchaser:

            	
              To
      the address set forth under such Purchaser name on the signature pages
      hereto.

            
	 	 
	
              If
      to any other Person who is

            	 
      
	
              then
      the registered Holder:

            	
              To
      the address of such Holder as it appears in the stock transfer books of
      the Company

            

    

     

    or such
other address as may be designated in writing hereafter in accordance with this
Section 7(g) by such Person.

     

    (h)           Successors and
Assigns.  This Agreement shall inure to the benefit of and be
binding upon the successors and permitted assigns of each of the parties and
shall inure to the benefit of each Holder.  The Company may not assign
its rights or obligations hereunder without the prior written consent of each
Holder.  Each Holder may assign their respective rights hereunder in
the manner and to the Persons as permitted under the Security
Agreement.

     

    (i)           Execution and
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
agreement.  In the event that any signature is delivered by facsimile
transmission, such signature shall create a valid binding obligation of the
party executing (or on whose behalf such signature is executed) the same with
the same force and effect as if such facsimile signature were the original
thereof.

     

    (j)           Governing Law, Jurisdiction and
Waiver of Jury Trial.  THIS AGREEMENT SHALL BE GOVERNED BY AND
CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK
APPLICABLE TO CONTRACTS MADE AND PERFORMED IN SUCH STATE, WITHOUT REGARD TO
PRINCIPLES OF CONFLICTS OF LAW.  The Company hereby consents and
agrees that the state or federal courts located in the County of New York, State
of New York shall have exclusion jurisdiction to hear and determine any
Proceeding between the Company, on the one hand, and the Purchaser, on the other
hand, pertaining to this Agreement or to any matter arising out of or related to
this Agreement; provided, that the
Purchaser and the Company acknowledge that any appeals from those courts may
have to be heard by a court located outside of the County of New York, State of
New York, and further provided, that
nothing in this Agreement shall be deemed or operate to preclude the Purchaser
from bringing a Proceeding in any other jurisdiction to collect the obligations,
to realize on the Collateral or any other security for the obligations, or to
enforce a judgment or other court order in favor of the
Purchaser.  The Company expressly submits and consents in advance to
such jurisdiction in any Proceeding commenced in any such court, and the Company
hereby waives any objection which it may have based upon lack of personal
jurisdiction, improper venue or forum non
conveniens.  The Company hereby waives personal service of the
summons, complaint and other process issued in any such Proceeding and agrees
that service of such summons, complaint and other process may be made by
registered or certified mail addressed to the Company at the address set forth
in Section 7(g) and that service so made shall be deemed completed upon the
earlier of the Company’s actual receipt thereof or three (3) days after deposit
in the U.S. mails, proper postage prepaid.  The parties hereto desire
that their disputes be resolved by a judge applying such applicable
laws.  Therefore, to achieve the best combination of the benefits of
the judicial system and of arbitration, the parties hereto waive all rights to
trial by jury in any Proceeding brought to resolve any dispute, whether arising
in contract, tort, or otherwise between the Purchaser and/or the Company arising
out of, connected with, related or incidental to the relationship established
between then in connection with this Agreement.  If either party
hereto shall commence a Proceeding to enforce any provisions of this Agreement,
the Security Agreement or any other Ancillary Agreement, then the prevailing
party in such Proceeding shall be reimbursed by the other party for its
reasonable attorneys’ fees and other costs and expenses incurred with the
investigation, preparation and prosecution of such Proceeding.

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    (k)           Cumulative
Remedies.  The remedies provided herein are cumulative and not
exclusive of any remedies provided by law.

     

    (l)           Severability.  If
any term, provision, covenant or restriction of this Agreement is held by a
court of competent jurisdiction to be invalid, illegal, void or unenforceable,
the remainder of the terms, provisions, covenants and restrictions set forth
herein shall remain in full force and effect and shall in no way be affected,
impaired or invalidated, and the parties hereto shall use their reasonable
efforts to find and employ an alternative means to achieve the same or
substantially the same result as that contemplated by such term, provision,
covenant or restriction. It is hereby stipulated and declared to be the
intention of the parties that they would have executed the remaining terms,
provisions, covenants and restrictions without including any of such that may be
hereafter declared invalid, illegal, void or unenforceable.

     

    (m)           Headings.  The
headings in this Agreement are for convenience of reference only and shall not
limit or otherwise affect the meaning hereof.

     

    [Balance
of page intentionally left blank; signature page follows]

    

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

    IN
WITNESS WHEREOF, the parties have executed this Registration Rights Agreement as
of the date first written above.

     

     

    
      	 
      	
              VERSO
      TECHNOLOGIES, INC.

            	 
	 	 	 
	 	 	 
	 
      	
              By:
      /s/ Martin D. Kidder

            	 
	 
      	
              Name:
      Martin D. Kidder

            	 
	 
      	
              Title:  
      CFO

            	 
	 	 	 
	 	 	 
	 
      	
              VALENS
      OFFSHORE SPV II, CORP.

            	 
	 	 	 
	 	 	 
	 
      	
              By:  Valens
      Capital Management, LLC, its Investment Manager

            
	 	 	 
	 	 	 
	 
      	
              By:
      /s/ Scott Bluestein

            	 
	 
      	
              Name:
      Scott Bluestein

            	 
	 
      	
              Title:   
      Authorized Signatory

            	 
	 	 	 
	 	 	 
	 
      	
              Address
      for Notices:

            	 
	 	 	 
	 
      	
              c/o
      Valens Capital Management, LLC

            	 
	 
      	
              335
      Madison Ave., 10th Floor

            	 
	 
      	
              New
      York, New York 10017

            	 
	 
      	
              Attention:  Portfolio
      Services

            	 
	 
      	
              Facsimile:  212-541-4410

            	 

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
A

     

    ____________,
200___

     

    American
Stock Transfer & Trust Company

    Corporate
Trust Department

    59 Maiden
Lane

    New York,
New York  10038

    Attn:  Joe
Wolf

     

    
      	
              Re:    Verso Technologies, Inc. Registration Statement on
      Form [S-3] (No.
333-_________)

            

    

     

    Ladies
and Gentlemen:

     

    As
counsel to Verso Technologies, Inc., a Minnesota (the “Company”), we have been
requested to render our opinion to you in connection with the resale by the
individuals or entitles listed on Schedule A attached
hereto (the “Selling Shareholders”), of an aggregate of __________ shares (the
“Shares”) of the Company’s common stock.

     

    A
Registration Statement on Form [S-3] (No. 333-________) under the Securities Act
of 1933, as amended (the “Act”), with respect to the resale of the Shares was
declared effective by the Securities and Exchange Commission on
[date].  Enclosed is the Prospectus dated [date].  We
understand that the Shares are to be offered and sold in the manner described in
the Prospectus.

     

    Based
upon the foregoing, upon request by any Selling Shareholder at any time while
the registration statement remains effective, and provided such shareholder
represents to you that (i) such shareholder has sold the Shares registered by
the registration statement for such shareholder’s account in accordance with the
plan of distribution set forth in the Prospectus and (ii) a copy of the
Prospectus and all supplements thereto were delivered to the purchaser of the
Shares in accordance with the Act, then it is our opinion that the Shares have
been registered for resale under the Act and new certificates evidencing the
Shares upon their transfer or re-registration by the Selling Stockholders may be
issued without restrictive legend.  We will advise you if the
registration statement is not available or effective at any point in the
future.

     

    
      	 
      	
              Very
      truly yours,

            	 
      
	 	 	 
	 	 	 
	 
      	
              [Company
      counsel]

            	 
      

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

     

    Schedule
A to Exhibit A

     

    
      	
              Selling
      Stockholder

            	
              R/N/O

            	
              Shares

              Being
      Offered

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