VERSO TECHNOLOGIES, INC. 400 Galleria Parkway Suite 200 Atlanta, Georgia 30339 September 20, 2006
Exhibit 99.5
VERSO TECHNOLOGIES, INC.
000 Xxxxxxxx Xxxxxxx
Xxxxx 000
Xxxxxxx, Xxxxxxx 00000
000 Xxxxxxxx Xxxxxxx
Xxxxx 000
Xxxxxxx, Xxxxxxx 00000
September 20, 2006
Laurus Master Fund, LTD.
c/o Laurus Capital Management, LLC
000 Xxxxx Xxxxxx, 00xx Xxxxx
Xxx Xxxx, Xxx Xxxx 00000
c/o Laurus Capital Management, LLC
000 Xxxxx Xxxxxx, 00xx Xxxxx
Xxx Xxxx, Xxx Xxxx 00000
RE: | Security Agreement dated the date hereof among Verso Technologies, Inc., Verso Verilink, LLC, Xxxxxxxx.Xxx Software, Inc. and Laurus Master Fund, LTD. (the “Agreement”; all capitalized terms used herein but not otherwise defined herein shall have the meanings ascribed to such terms in the Agreement). |
Ladies and Gentlemen:
This letter will confirm our agreement with respect to the issuance of an additional warrant
to purchase shares of Common Stock of the Parent in connection with the Agreement. The Parent will
issue to Laurus upon the earlier of (1) the date that is 18 months from the date hereof and (2) the
date upon which the Tranche B Availability Amount equals $6,000,000 (without regard to the monthly
reductions thereto commencing on February 1, 2007) a Common Stock Purchase Warrant exercisable for
660,939 shares of Common Stock of the Parent during a five year period following the date of
issuance thereof (and otherwise on the same terms (including, without limitation, the exercise
price) as the Warrant issued by the Parent to Laurus on the date hereof exercisable for 1,321,877
shares of Common Stock of the Parent).
If the foregoing accurately reflects our agreement with respect to the matters addressed
herein, then please execute this letter in the space below and return a copy to the undersigned by
facsimile to (000) 000-0000.
[Signatures on following page]
Laurus Master Fund, LTD.
September 20, 2006
Page 2
September 20, 2006
Page 2
Sincerely, VERSO TECHNOLOGIES, INC. |
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By: | /s/ Xxxxxx X. Xxxxxxx | |||
Name: | Xxxxxx X. Xxxxxxx | |||
Title: | Chief Financial Officer | |||
AGREED AND ACCEPTED BY: | ||||||
LAURUS MASTER FUND, LTD. | ||||||
By: |
/s/ Xxxxx Grin | |||||
Name: | Xxxxx Grin | |||||
Title: | Director | |||||