Document:

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                                                                   EXHIBIT 10.52

                              INVESTMENT AGREEMENT

          THIS AGREEMENT dated as of March 15, 2001 (this "AGREEMENT") among
SecurityVillage.com Inc., a Delaware corporation ("SECURITYVILLAGE"),
SecurityVillage Technologies, Ltd., Security Associates International, Inc., a
Delaware corporation ("SAI"), KC Acquisition Corp., a New Jersey corporation
("KING"), TJS Partners, L.P., a New York limited partnership ("TJS"), James S.
Brannen, Ron Davis, the King Stockholders (as defined herein) (King and the King
Stockholders are parties hereto solely for the purposes of Article 2, Section
3.2, Article 5, Sections 6.1, 6.2, 6.5 and Article 7) and the SecurityVillage
Controlling Stockholders (as defined herein). Capitalized terms used but not
otherwise defined herein shall have the meanings set forth in Section 1.1
hereof.

                                    RECITALS

     1. Pursuant to a letter among SecurityVillage, SAI, King, TJS and certain
individuals dated April 21, 2000, as amended on May 10, 2000 (as so amended, the
"LETTER AGREEMENT"), the parties thereto agreed to negotiate in good faith the
terms and conditions of definitive agreements regarding the acquisition of
Monital Signal Corp. ("MONITAL") by King, the subsequent acquisition of King by
SAI, the making of certain direct investments in SAI by SecurityVillage, the
granting by SAI and by each of Thomas Few, Timothy McGinn and David Smith (the
"KING STOCKHOLDERS") of certain options to SecurityVillage to purchase
securities of SAI, and the proposed future business combination of SAI and
SecurityVillage under certain circumstances (collectively, the "TRANSACTIONS").

     2. On May 11, 2000:

     (a)  Pursuant to a Share Purchase Agreement dated as of May 11, 2000 and
          other related agreements, King became the direct and indirect owner of
          99% of Monital (collectively, the "MONITAL TRANSACTIONS").

     (b)  The King Stockholders entered into a Plan and Agreement of Merger (the
          "KING ACQUISITION AGREEMENT"), providing for the merger of King with
          and into a wholly owned subsidiary of SAI (the "King Acquisition").

     3. In response to intervening circumstances, all of the parties hereto have
agreed to supercede and restate the Letter Agreement in its entirety as set
forth herein.

     4. SAI provides monitoring and dispatch services on behalf of dealers and
directly to consumers relating to critical events, provides other remote
monitoring of electronic devices and provides ancillary services to those
dealers that may include but not be limited to marketing, financial, educational
business management, all as set forth in further detail in SAI's filings as made
with the Securities and Exchange Commission and in SAI's press releases.
Additionally, SAI intends to continue to develop and offer to its customers new
services which are compatible with, or complimentary to, the foregoing.

     5. SecurityVillage Technologies invests and develops strategic marketing
agreements with primary technology companies which develop products in the
security and

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related industries; and markets those products on a business-to-business basis
to distributors and other companies that utilize or sell those products to
consumers of those products or services.

                                    AGREEMENT

          In consideration of the premises and of the mutual covenants, terms
and conditions herein contained, the parties hereto agree as follows:

                             ARTICLE 1 DEFINITIONS

Section 1.1 Definitions

          The following terms, as used herein, have the following meanings:

          "AFFILIATE" means, with respect to any Person, any other Person
directly or indirectly controlling, controlled by, or under common control with
such Person. For the purpose of this definition, the term "CONTROL" (including
with correlative meanings, the terms "CONTROLLING", "CONTROLLED BY" and "UNDER
COMMON CONTROL WITH") means the possession of the power to direct or cause the
direction of the management and policies of a Person.

          "AGREEMENT PARTY" means each party to this Agreement, including any
Person who becomes a party to this Agreement after the date hereof.

          "ASSET PURCHASE AGREEMENT" means the Asset Purchase Agreement , dated
as of the date of the Investment Closing, between SAI and SecurityVillage, as
the same may be amended from time to time.

          "BUSINESS DAY" means any day except a Saturday, Sunday or other day on
which commercial banks in New York City or Chicago, Illinois are authorized by
law to close.

          "CONTRACT" means any contract, commitment, agreement, arrangement,
obligation, undertaking, instrument, permit, concession, franchise or license.

          "CORPORATE PARTIES" mean SecurityVillage, King and SAI.

          "EXCHANGE ACT" means the Securities Exchange Act of 1934, as amended.

          "GAAP" means United States generally accepted accounting principles,
consistently applied.

          "GOVERNMENTAL OR REGULATORY AUTHORITY" means any exchange, court,
tribunal, arbitrator, authority, agency, commission, official or other
instrumentality of the United States, any foreign country or any political
subdivision.

          "INVESTMENT CLOSING" has the meaning given to such term in Section
3.1.

          "INVESTOR LETTER" shall mean an investor letter in the form attached
hereto, including representations and agreements substantially similar to
Section 5.6.

          "KING SHARES" mean all of the outstanding common stock of King.

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          "KING STOCKHOLDERS" has the meaning set forth in Paragraph 1 of the
Recitals, including their successors and assigns.

          "LETTER AGREEMENT" has the meaning set forth in Paragraph 1 of the
Recitals.

          "MONITAL" has the meaning set forth in Paragraph 1 of the Recitals.

          "MONITORING SERVICES" means the provision of remote alarm monitoring
services to Subscribers, and all related remote security services.

          "PERSON" means an individual or entity.

          "SAI" has the meaning set forth in the introductory paragraph to this
Agreement.

          "SAI COMMON" means the common stock, par value $0.001 per share, of
SAI.

          "SAI CONTROLLING STOCKHOLDERS" means TJS, James S. Brannen and Ron
Davis.

          "SEC" means the Securities and Exchange Commission.

          "SECURITIES ACT" means the Securities Act of 1933, as amended.

          "SECURITYVILLAGE" has the meaning set forth in the introductory
paragraph to this Agreement.

          "SECURITYVILLAGE CONTROLLING STOCKHOLDERS" means each of St. Martins
Holdings II, Limited, Moshe Cohen, Audiogard International and 3K Digital
Limited.

          "SECURITYVILLAGE DESIGNEES" shall mean those person or persons to be
designated by SecurityVillage to acquire the shares of Series A Preferred and/or
Warrants hereunder or SAI Common under the Asset Purchase Agreement, each of
whom shall deliver an Investor Letter to SAI on or prior to the Investment
Closing, which may include an escrow agent so long as each of the beneficiaries
of the escrow arrangement have delivered an Investor Letter to SAI;

          "SECURITYVILLAGE TECHNOLOGIES" shall mean SecurityVillage
Technologies, Ltd., an Israeli corporation.

          "SERIES A PREFERRED" means the Series A Convertible Preferred Stock,
par value $10.00 per share, of SAI, of which there shall be 167,686 total
authorized shares, each having a liquidation value of $350 per share and
convertible into 100 shares of SAI Common, and otherwise having substantially
the terms, preferences and provisions set forth in the Certificate of
Designations therefore filed in the State of Delaware, as amended. The Series A
Preferred shall rank junior as to the Series C Preferred and Series D Preferred,
as to liquidation preference and dividends. Except as to liquidation and
dividend preference and their respective liquidation values, the Series A
Preferred, Series C Preferred and Series D Preferred shall be substantially
identical in all other material respects.

          "SERIES C PREFERRED" means the Series C Convertible Preferred Stock,
par value $10.00 per share, of SAI, of which there shall be 36,000 total shares
authorized, each having a

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liquidation value of $350 per share and convertible into 100 shares of SAI
Common, and otherwise having substantially the terms, preferences and provisions
set forth in the Certificate of Designations therefore filed in the State of
Delaware. The Series C Preferred and Series D Preferred shall rank pari pasu as
to each other, and collectively rank senior over the Series A Preferred, as to
liquidation preference and dividends. Except as to liquidation and dividend
preference and their respective liquidation values, the Series A Preferred,
Series C Preferred and Series D Preferred shall be substantially identical in
all other material respects.

          "SERIES D PREFERRED" means the Series D Convertible Preferred Stock,
par value $10.00 per share, of SAI, of which there shall be 9,000 total shares
authorized, each having a liquidation value of $450 per share and convertible
into 100 shares of SAI Common, and otherwise having substantially the terms,
preferences and provisions set forth in the Certificate of Designations therefor
filed in the State of Delaware. The Series C Preferred and Series D Preferred
shall rank pari passu as to each other, and collectively rank senior over the
Series A Preferred, as to liquidation preference and dividends. Except as to
liquidation and dividend preference and their respective liquidation values, the
Series A Preferred, Series C Preferred and Series D Preferred shall be
substantially identical in all other material respects.

          "SUBSCRIBER" means an individual or entity who has contracted to
obtain Monitoring Services.

          "SUBSIDIARY" means any entity of which securities or other ownership
interests having ordinary voting power to elect a majority of the board of
directors or other Persons performing similar functions are at the time directly
or indirectly owned by any Person.

          "TRANSACTIONS" has the meaning set forth in Paragraph 1 of the
Recitals.

Section 1.2 Interpretation, Etc.

          Unless the context of this Agreement otherwise requires, (a) words of
any gender include each other gender; (b) words using the singular or plural
number also include the plural or singular number, respectively; (c) the terms
"hereof," "herein," "hereby" and derivative or similar words refer to this
entire Agreement; and (d) the terms "Article" or "Section" refer to the
specified Article or Section of this Agreement. Whenever this Agreement refers
to a number of days, such number shall refer to calendar days unless Business
Days are specified. All accounting terms used herein and not expressly defined
herein shall have the meanings given to them under GAAP.

                    ARTICLE 2 KING ACQUISITION TRANSACTIONS

Section 2.1 King Acquisition

            (a) Consummation of King Acquisition. SAI, King and the King
Stockholders agree to take all commercially reasonable steps to cause the King
Acquisition to be consummated as soon as practicable on the terms set forth in
the King Acquisition Agreement, as amended by Amendment No.1 thereto dated as of
March ___, 2001 (collectively, the "AMENDED KING AGREEMENT"), subject to the
respective rights of each Agreement Party thereunder. The parties hereto consent
and agree to the execution, delivery and performance of the Amended

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King Agreement, together with such other changes as may hereafter be mutually
agreed by SAI, King and the King Stockholders (the "KING ACQUISITION").

          (b) Consideration. The consideration to be paid to the King
Stockholders in the King Acquisition, allocated as stated in the Amended King
Agreement, shall be as follows:

              (1) An aggregate of 36,000 shares of Series C Preferred.

              (2) An aggregate of 9,000 shares of Series D Preferred.

              (3) Cash in the aggregate amount of $6,500,000.

          (c) SAI Preferred Stock; Registration Rights. SAI, the King
Stockholders, SecurityVillage and the holders of the approximately 100,000
shares of outstanding Series A Preferred whose underlying SAI Common is not
already registered (the "UNREGISTERED SERIES A"), will enter into a Registration
Rights Agreement in the form attached hereto as Exhibit 2.1 (the "REGISTRATION
RIGHTS AGREEMENT").

Section 2.2 Simultaneous SV Transactions

            The parties hereto agree that, in addition to the transactions
contemplated by Section 3.1, simultaneously with the closing of the King
Acquisition, the following Transactions shall occur:

            (a) SecurityVillage Acquisition of SAI Common. SAI shall issue
1,000,000 shares of SAI Common to SecurityVillage or the SecurityVillage
Designees in consideration of SecurityVillage's services in connection with
King's acquisition of Monital; provided, that if SecurityVillage does not
consummate the SV Investment (as defined in Section 3.1), then SAI shall not
issue these shares to SecurityVillage.

            (b) SAI Common in Exchange for the Monital Note. SAI shall issue an
additional 300,000 shares of SAI Common in exchange and in full payment for the
$1,500,000 promissory note made by King in favor of SecurityVillage or its
designees, against receipt of the original note marked "cancelled."

            (c) SecurityVillage Technologies Warrants. At the closing of the
King Acquisition, SecurityVillage Technologies shall issue to SAI a stock
purchase warrant, entitling SAI to purchase fifteen percent (15%) of
SecurityVillage Technologies on a fully diluted basis (subject to customary
adjustments for stock splits and the like and subject to customary antidilution
provisions) (the "SV WARRANTS"). The SV Warrants shall have a term of ten (10)
years and shall have an exercise price reflecting a fully diluted enterprise
value equal to the lower of (i) the pre-money valuation at the time of
SecurityVillage Technologies' initial public offering, or (ii) $50,000,000.

                      ARTICLE 3 SECURITYVILLAGE INVESTMENT

Section 3.1 SecurityVillage Investment

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           (a) Within three (3) business days of the satisfaction of the
Financing Condition (defined below), but in no event later than March 30, 2001,
SecurityVillage or the SecurityVillage Designees shall purchase and SAI shall
issue to SecurityVillage or the SecurityVillage Designees, for a total cash
purchase price of $10,500,000: (i) 30,000 shares of Series A Preferred and (ii)
stock purchase warrants entitling the holder of such warrants to purchase
4,500,000 shares of SAI's common (the "WARRANTS"). The Warrants will have an
exercise price of $3.50 per share and otherwise have the terms and provisions
set forth on Exhibit 3.1 attached hereto.

           (b) Completion of the purchase and sale of the Series A Preferred and
the Warrants is subject to (i) the receipt by SecurityVillage of at least
$14,000,000 in new financing cash, or such lesser amount as SecurityVillage
deems sufficient to consummate the transactions contemplated hereunder (the
"FINANCING CONDITION") and (ii) the consummation of the Asset Purchase Agreement
("ASSET PURCHASE AGREEMENT CONDITION"). If the Financing Condition has not been
satisfied by March 30, 2001, then this Agreement shall terminate in accordance
with Section 3.1(c). If the Financing Condition and the Asset Purchase Agreement
Condition have been satisfied on or prior to March 30, 2001, then
SecurityVillage and SAI shall, within three days following the date that such
Financing Condition has been satisfied, but in no event later than March 30,
2001, consummate the purchase and sale of Series A Preferred and Warrants
contemplated by Section 3.1(a) at a closing (the "INVESTMENT CLOSING"), to occur
at the offices of Sachnoff & Weaver, Ltd., 30 South Wacker Drive, Suite 2900,
Chicago, Illinois, 60606, or at such other place as may be mutually agreed by
the parties. At the Investment Closing, SecurityVillage shall pay to SAI a total
of $10,500,000 by wire transfer of immediately available funds, against delivery
by SAI of the shares of Series A Preferred and Warrants contemplated hereby to
SecurityVillage and/or the SecurityVillage Designees; provided, that if at the
time of the Investment Closing the AMEX Approval (as defined in the Asset
Purchase Agreement) has not been obtained, then the Series A Preferred and
Warrants will be issued to an escrow agent mutually agreeable to SAI and
SecurityVillage (the "ESCROW AGENT"), to hold for the benefit of SecurityVillage
and the SecurityVillage Designees, pursuant to an escrow agreement to be
mutually agreed upon by SecurityVillage, SAI and the Escrow Agent. The
consummation of the issuance and sale of the Series A Preferred and the Warrants
either directly or in escrow, as contemplated hereby, is referred to herein as
the "SV INVESTMENT."

           (c) If SecurityVillage has not completed the SV Investment for
$10,500,000 on or prior to March 30, 2001, then (i) SAI and the King
Stockholders shall have the full and unfettered right to consummate the King
Acquisition without reference to, obligation or accounting to, or the need to
seek the agreement of, SecurityVillage whatsoever (other than issuing the shares
of SAI Common expressly contemplated by Sections 2.2(b), and 7.1), and (ii) this
Agreement shall be terminated and shall be of no further force and effect, other
than Sections 2.2(b) and 7.1, which shall remain in full force and effect and
enforceable by the parties.

Section 3.2 Stockholders Agreement; Board Representation

           In connection with the SV Investment, SecurityVillage, SAI, the King
Stockholders and the holders of the currently outstanding Series A Preferred
will enter into a Stockholders Agreement in the form attached hereto as Exhibit
3.2 (the "STOCKHOLDERS AGREEMENT").

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                 ARTICLE 4 ASSET PURCHASE WITH SECURITYVILLAGE

Section 4.1 Asset Purchase

            At or promptly after the consummation of the SV Investment in
accordance with Article 3, SAI and SecurityVillage shall enter into the Asset
Purchase Agreement in the form attached hereto as Exhibit 4.1 (the "ASSET
PURCHASE AGREEMENT").

Section 4.2 SecurityVillage Distribution Agreement

            Upon closing of the Asset Purchase Agreement, SAI and
SecurityVillage Technologies shall enter into an agreement, in the form attached
hereto as Exhibit 4.2.

Section 4.3 Video Domain Option

            In consideration for TJS renegotiating the Letter Agreement and
entering into this Agreement, SecurityVillage will assign to TJS or its
designees (the "HOLDER"), fifty percent (50%) of SecurityVillage's option (the
"VIDEO DOMAIN OPTION") to acquire ten percent (10%) of the fully diluted capital
stock of Video Domain, an Israeli corporation ("VIDEO DOMAIN"), at an aggregate
exercise price of $2,050,000 (the "VIDEO DOMAIN ASSIGNMENT"). The parties hereby
acknowledge and agree that the Video Domain Assignment is subject to
SecurityVillage receiving the consent of Video Domain to the Video Domain
Assignment (the "VIDEO DOMAIN CONSENT"). SecurityVillage shall use its best
efforts to obtain the Video Domain Consent. If SecurityVillage has not obtained
the Video Domain Consent prior to the closing of the Asset Purchase Agreement,
the Video Domain Assignment shall be made as soon thereafter as practicable
following the receipt by SecurityVillage of the Video Domain Consent. Unless and
until Video Domain provides to SecurityVillage the Video Domain Consent,
SecurityVillage shall (a) maintain the Video Domain Option in full force and
effect, and shall not amend, release or take any action to waive or otherwise
impair or exercise the Video Domain Option, except as contemplated herein, and
(b) (i) exercise the Video Domain Option upon the request of Holder and receipt
of payment of the exercise price from Holder and (ii) distribute to Holder the
securities received by SecurityVillage upon exercise of the Video Domain Option.
At the request of Holder, SecurityVillage shall give Holder copies of all
information it receives from Video Domain. SecurityVillage hereby grants to
Holder a security interest in the Video Domain Option, any securities issued
upon exercise of the Video Domain Option, and any proceeds therefrom or
substitutions thereof to secure its obligations under this Section 4.3 and
agrees to take such actions as reasonably requested to perfect the security
interest of Holder therein.

                    ARTICLE 5 REPRESENTATIONS AND WARRANTIES

            As a material inducement to the other Agreement Parties to enter
into this Agreement, each Agreement Party, as to itself, represents and warrants
to the others that:

Section 5.1 Organization

            Each Corporate Party is a corporation, duly organized, validly
existing and in good standing under the laws of the jurisdiction of its
incorporation and is authorized to do business in each jurisdiction where the
character or location of its assets or properties owned, leased or operated by
it or the nature of its activities makes such qualification necessary. TJS is

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a limited partnership, duly organized, validly existing and in good standing
under the laws of the jurisdiction of its formation.

Section 5.2 Authorization of Transactions

            Each Agreement Party has all requisite power, authority and legal
capacity to enter into this Agreement, subject to any stockholder approval that
may be required by AMEX. The execution, delivery and performance of this
Agreement by each of the Corporate Parties and the consummation of each of the
transactions contemplated hereby have been duly and validly approved by its
board of directors, and no other corporate proceedings on the part of any
Corporate Party are necessary to authorize the execution, delivery and
performance of this Agreement by Agreement Parties and the consummation by any
of them of the transactions contemplated hereby and thereby, other than in the
case of the Corporate Parties obtaining, where regulated, the approval of their
respective stockholders. This Agreement has been duly and validly executed and
delivered by each of the Agreement Parties and, subject (in the case of the
Corporate Parties) to the obtaining, where required by applicable laws and
regulations, of the approval of their respective stockholders, constitutes
legal, valid and binding obligations of each of the Agreement Parties
enforceable against each of the Agreement Parties in accordance with their
terms.

Section 5.3 Non-Contravention; Approvals and Consents

            (a) Except as set forth on each Agreement Party's Schedule 5.3(a),
the execution and delivery of this Agreement does not, and the performance by
each of them of its obligations hereunder and the consummation of the
transactions contemplated hereby will not, conflict with, result in a violation
or breach of, constitute (with or without notice or lapse of time or both) a
default under, result in or give to any Person any right of payment or
reimbursement, termination, cancellation, modification or acceleration of, or
result in the creation or imposition of any lien upon any of its assets or
properties or under any of the terms of (i) its certificate or articles of
incorporation or bylaws (or other comparable charter documents), or (ii) subject
to the obtaining of any necessary stockholders' approval and the taking of the
actions described in paragraph (b) of this Section, (x) any laws or orders of
any Governmental or Regulatory Authority, or (y) any contracts to which any of
them or their assets are bound, excluding those which, in the aggregate, could
not be reasonably expected to have a material adverse effect on any Agreement
Party or on the ability of any Agreement Party to consummate the transactions
contemplated by this Agreement.

            (b) Except: (i) as set forth on each Agreement Party's Schedule
5.3(b), (ii) for filings to be made with the SEC, the declaration of the
effectiveness of any such filings by the SEC and filings with, and stockholder
approvals required by, various Governmental and Regulatory Authorities that are
required in connection with the transactions contemplated by this Agreement, and
(iii) for the filing of a certificate of merger and other appropriate documents
with the relevant authorities of the states in which a Corporate Party is
incorporated or qualified to do business, no consent, approval or action of,
filing with or notice to any Governmental or Regulatory Authority or other third
party is necessary for the execution and delivery of this Agreement and the
performance of its obligations hereunder and the consummation of the
transactions contemplated hereby , other than those which the failure to make or
obtain, in the

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aggregate, could not be reasonably expected to have a material adverse effect on
an Agreement Party or on the ability of it to consummate the transactions
contemplated by this Agreement.

Section 5.4 Legal Proceedings

            There are no actions, suits, arbitrations or proceedings pending or,
to the knowledge of any Agreement Party, threatened against, relating to or
affecting, nor are there any Governmental or Regulatory Authority investigations
or audits pending or to the knowledge of any Agreement Party threatened against,
relating to or affecting, such Agreement Party or any of its assets which, in
the aggregate, could be reasonably expected to have a material adverse effect on
it or on its ability to consummate the transactions contemplated by this
Agreement, and there are no facts or circumstances known to any Agreement Party
that could be reasonably expected to give rise to any such action, suit,
arbitration, proceeding, investigation or audit, and none of the Agreement
Parties is subject to any order of any Governmental or Regulatory Authority
which, in the aggregate, is having or could be reasonably expected to have a
material adverse effect on such Agreement Party or on its ability to consummate
the transactions contemplated by this Agreement.

Section 5.5 Restricted Securities

            SecurityVillage understands that: (i) the SAI Common, Series A
Preferred and Warrants to be issued pursuant to this Agreement have not been
registered under the Securities Act or under any state securities laws; (ii)
such securities are being offered and issued in reliance upon federal and state
exemption for transactions not involving any public offering; and (iii) all
certificates representing securities of SAI issued pursuant to this Agreement,
and any SAI Common issued upon conversion or exercise of such securities
(collectively, "SAI SECURITIES") will bear on their face the following legend:

          The shares evidenced by this certificate have not been registered
          under the Securities Act of 1933, as amended, or any applicable state
          securities laws. No transfer or sale of these shares or any interest
          therein may be made without such registration and qualification unless
          the issuer has received an opinion of counsel satisfactory to it that
          a proposed transfer or sale does not require registration or
          qualification under applicable law.

Section 5.6 Private Offering

            SecurityVillage further represents that: (i) the SAI Securities are
being acquired by SecurityVillage for its own account, for investment purposes,
and not with a view to distribution thereof (except for those SAI Securities to
be distributed or designated for issuance to SecurityVillage Designees), (ii)
SecurityVillage is an "accredited investor" as defined in Rule 501 under the
Securities Act and is a sophisticated investor with knowledge and experience in
business and financial matters; (iii) SecurityVillage has had access to all SEC
Reports filed by SAI during the current year and the year preceding the current
year, and has had the opportunity to obtain additional information and ask
questions and receive answers as desired in order to evaluate the merits and
risks inherent in holding the SAI Securities; (iv) SecurityVillage has not been
offered the SAI Securities by any form of general advertising or general
solicitation; and

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(v) SecurityVillage is able to bear the economic risk and lack of liquidity
inherent in holding the SAI Securities.

Section 5.7 Capitalization.

            SecurityVillage hereby represents and warrants to SAI that set forth
on Schedule 5.7 is a list setting forth the authorized and issued capital stock,
by class, and all rights to acquire capital stock or securities convertible into
or exchangeable for capital stock, of each of SecurityVillage and
SecurityVillage Technologies as of the date hereof and after giving effect to
the transactions contemplated hereby, including the name of the record owner and
beneficial owner if known. SAI hereby represents and warrants to SecurityVillage
that set forth on Schedule 5.7(b) is a list setting forth the authorized and
issued capital stock, by class, and all rights to acquire capital stock or
securities convertible into or exchangeable for capital stock, of SAI as of the
date hereof and after giving effect to the transactions contemplated hereby,
including the name of the record owner and beneficial owner if known. The
SecurityVillage Controlling Stockholders collectively own approximately 47% of
the voting capital stock of SecurityVillage on a fully diluted basis, which is
sufficient under SecurityVillage's certificate of incorporation, bylaws and all
voting agreements to authorize the transactions contemplated hereby. Except for
the SecurityVillage Controlling Stockholders, no other person owns, directly or
indirectly, more than 5% of the voting capital stock of SecurityVillage on a
fully diluted basis.

Section 5.8 Disclosure

            The representations and warranties made by each Agreement Party
herein, and all statements made in any exhibit, schedule or certificate
furnished by any Agreement Party pursuant to this Agreement, do not contain, and
at the time of the closing of the respective Transactions will not contain, any
untrue statement of a material fact, or omit to state any material fact required
to be stated herein, or necessary in order to make the statements made, in light
of the circumstances under which they were made, not misleading.

                   ARTICLE 6 CERTAIN COVENANTS AND AGREEMENTS

Section 6.1 No Inconsistent Agreements

            Each of the Agreement Parties shall use its best efforts to ensure
that none of their respective Subsidiaries, Affiliates or shareholders enter
into any agreement or take any action with respect to the Transactions or any
other matter contemplated by this Agreement which is inconsistent with the
fulfillment of its obligations under this Agreement or which otherwise conflicts
with the provisions hereof.

Section 6.2 Fulfillment of Conditions

            Each of the Agreement Parties will proceed diligently to satisfy
each condition to the other's obligations contained in this Agreement and to
consummate the Transactions, and none will take or fail to take any action that
could be reasonably expected to result in the nonfulfillment of any such
condition or to cause any of the Transactions not to be consummated.

Section 6.3 Confidentiality

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            Each Corporate Party will hold, and will use its best efforts to
cause its Affiliates, and their respective representatives to hold, in strict
confidence from any Person (other than an Affiliate or representative) all
documents and information concerning any other Corporate Party or its Affiliates
furnished to it by the other Corporate Party or its representatives in
connection with this Agreement or the transactions contemplated hereby. The
provisions of this Section shall not apply to the extent that such documents or
information can be shown to have been (a) previously known by the party
receiving it, (b) in the public domain through no fault of the receiving party
or (c) acquired by the receiving party from another source if the source is not
under an obligation to another Corporate Party to keep such documents and
information confidential. The foregoing shall not apply: (a) if a party is
compelled to disclose by judicial or administrative process or by other
requirements of law; (b) if confidential information is disclosed in an action
or proceeding brought by a Corporate Party in pursuit of its rights or in the
exercise of its remedies; or (c) to a Corporate Party's use of documents and
information concerning the other Corporate Party after acquiring another
Corporate Party. In the event the King Acquisition or the merger contemplated by
the Merger Agreement is not consummated, upon the request of a disclosing
Corporate Party, each other Corporate Party to the transaction that was not
consummated will, and will cause its Affiliates and their respective
representatives to, promptly return all copies of confidential documents and
information furnished by the disclosing Corporate Party and destroy all writings
containing confidential information.

Section 6.4 Approvals

            Subject to the exercise of fiduciary obligations under applicable
law as advised in writing by independent legal counsel, each Corporate Party
shall deliver resolutions of its board of directors approving all necessary
corporate actions required to fulfill such Corporate Party's obligations
pursuant to this Agreement. Each Corporate Party shall take all commercially
reasonable steps to obtain the adoption and approval of such corporate actions
by such Corporate Party's stockholders where necessary.

Section 6.5 Voting Agreement

            In the event that SAI in its sole discretion determines that a vote
of its stockholders is required to approve any or all of the transactions
contemplated hereby, each of the parties to this Agreement hereby agree to vote
all shares they control and are entitled to vote in favor of the transactions
contemplated hereby at any meeting of stockholders or written consent requested
by SAI. SecurityVillage agrees to promptly call a meeting of its stockholders to
approve the transactions contemplated hereby, and each of the SecurityVillage
Controlling Stockholders agree to vote all shares of SecurityVillage's voting
capital stock held or controlled by them, in favor of all of the transactions
contemplated hereby.

Section 6.6 SecurityVillage Designees

            Prior to the Investment Closing, SecurityVillage will deliver to SAI
a schedule that sets forth the SecurityVillage Designees who will acquire the
SAI Securities contemplated by Section 2.2 and Articles 3 and 4 hereof and
specifies, for each such SecurityVillage Designee, the SAI securities they will
receive. The SAI securities may initially be held by an escrow agent on behalf
of SecurityVillage and the SecurityVillage Designees.

                                       11
<PAGE>   12

                            ARTICLE 7 MISCELLANEOUS

Section 7.1 Entire Agreement; Mutual Release

            This Agreement and any other agreements executed in connection
herewith, including without limitation, Amended King Agreement, constitute the
entire agreement between the parties with respect to the subject matter hereof
and supersede all prior agreements and understandings between the parties with
respect to the subject matter hereof, including without limitation, the Letter
Agreement. Without limiting the generality of the foregoing, this Agreement
supersedes the Letter Agreement in its entirety and the Letter Agreement is
hereby terminated and shall be of no further force and effect. Each party hereto
releases and forever discharges each other party hereto and its respective
agents, servants, members, managers, employees, directors, officers, attorneys,
affiliates, subsidiaries, successors and assigns and all persons, firms,
corporations, and organizations acting on their behalf, from all damage, loss,
claims, demands, liabilities, obligations, actions and causes of action
whatsoever, known or unknown, liquidated or unliquidated, certain or contingent,
that such Party hereto has had, now has, may now have or claim to have, or may
hereafter have, against each and every other party hereto, on account of, in
connection with, or in any way touching, concerning, relating to, arising out of
or founded upon, the Letter Agreement and any of the transactions contemplated
thereby, whether oral or written, including all such loss or damage of any kind
heretofore sustained, or that may otherwise arise as a consequence of the
dealings between the Parties hereto up to and including the date of this
Agreement, other than the obligations of a party under the express terms of this
Agreement or any definitive agreement executed by such party pursuant to this
Agreement or pursuant to the Letter Agreement (collectively, the "RELEASED
CLAIMS"). Each party hereby represents and warrants to the other parties that
such party has not sold, assigned or transferred any Released Claims (in whole
or in part), agrees not to bring any action with respect to any of the Released
Claims and agrees that this Section 7.1 may be plead as a complete defense and
bar to any such action.

Section 7.2 No Assignment; Binding Effect

            Neither this Agreement nor any right, interest or obligation
hereunder may be assigned by any party hereto without the prior written consent
of the other parties hereto and any attempt to do so will be void. Subject to
the preceding sentence, this Agreement is binding upon, inures to the benefit of
and is enforceable by the parties hereto and their respective permitted
successors and assigns.

Section 7.3 Amendment; Waiver; Termination

            No provision of this Agreement may be waived except by an instrument
in writing executed by the party against whom the waiver is to be effective. No
provision of this Agreement may be amended or otherwise modified except in
writing executed by each of the Agreement Parties.

Section 7.4 Public Announcements

            Except as otherwise required by law or the rules of any applicable
securities exchange or national market system, so long as this Agreement is in
effect, none of the

                                       12
<PAGE>   13

Agreement Parties will, or permit any of their representatives to, cause the
publication of any press release or other public announcement relating to the
Transactions without the consent of the Corporate Parties, which consent shall
not be unreasonably withheld, provided, however such consent will be deemed
given five (5) days after receipt of the material sought to be published if
consent is not withheld in writing. The Corporate Parties will cooperate with
each other in the development and distribution of all press releases and other
public announcements with respect to the Transactions, and will furnish the
other with drafts of any such releases and announcements as far in advance as
practicable, but in no event less than five (5) days prior to publication.

Section 7.5 No Third-Party Beneficiaries

            The terms and provisions of this Agreement are intended solely for
the benefit of each party hereto and their respective successors or permitted
assigns, and it is not the intention of the parties to confer third-party
beneficiary rights upon any other Person other than the SecurityVillage
Designees.

Section 7.6 Intentionally omitted.

Section 7.7 Notices

            All notices and other communications given or made pursuant hereto,
unless otherwise specified, shall be in writing and shall be deemed to have been
duly given or made if sent by fax (with confirmation in writing), delivered
personally or sent by registered or certified mail (postage prepaid, return
receipt requested) to the parties at the fax number or address set forth below
or at such other addresses as shall be furnished by the parties by like notice,
and such notice or communication shall be deemed to have been given or made upon
receipt:

if to SecurityVillage, to: SecurityVillage.com, Inc.
                           85 Nedinat Ha'yehudin
                           P.O. Box 4036
                           Herzliya Pitauch
                           46140 Israel
                           Facsimile: 972-9-955-7580

if to SAI, to:             Security Associates International, Inc.
                           2101 S. Arlington Heights Road, Suite 100
                           Arlington Heights, IL 60005-4142
                           Facsimile:  847-956-9360
                           Attn: President

with a copy to:            Sachnoff & Weaver, Ltd.
                           30 South Wacker Drive, Suite 2900
                           Chicago, IL 60606
                           Facsimile: 312-207-6400
                           Attn: Jeffrey Schumacher

                                       13
<PAGE>   14

if to TJS:                  TJS Partners, L.P.
                            115 East Putnam Avenue
                            Greenwich, CT 06830
                            Facsimile:  203-629-9594

if to King:                 KC Acquisition Corp.
                            P.O. Box 1943
                            South Hackensack, NJ 07606-0543

if to Thomas Few:           Mr. Thomas Few Sr.
                            C/o King Acquisition Corp.
                            325 South River Street
                            Hackensack, NJ 07601

if to Timothy McGinn:       Mr. Timothy McGinn
                            C/o McGinn Smith
                            99 Pine Street
                            Albany, NY 12207

if to David Smith:          Mr. David Smith
                            C/o McGinn Smith
                            99 Pine Street
                            Albany, NY 12207

for each of King, Few,
McGinn and Smith,
with a copy to:             Shapiro & Croland
                            411 Hackensack Avenue, 6th Floor
                            Hackensack, NJ 07601
                            Attn: Bruce J. Ackerman

if to any other Agreement Party, to the address set forth opposite its name on
the signature pages hereto.

Section 7.8 Headings

            The headings contained in this Agreement and in the Schedules and
Exhibits hereto are for convenience only and shall not affect the meaning or
interpretation of this Agreement.

Section 7.9 Counterparts

            This Agreement may be executed in any number of counterparts, each
of which shall be deemed to be an original and all of which together shall be
deemed to be one and the same instrument.

                                       14
<PAGE>   15

Section 7.10 Applicable Law

             This Agreement shall be governed by, and construed in accordance
with, the laws of the State of Delaware, without regard to the conflicts of law
rules of such state.

Section 7.11 Invalid Provisions

             If any provision of this Agreement is held to be illegal, invalid
or unenforceable and if the rights or obligations of any party hereto under this
Agreement will not be materially and adversely affected thereby, (i) such
provision will be fully severable, (ii) this Agreement will be construed and
enforced as if such illegal, invalid or unenforceable provision had never
comprised a part hereof, (iii) the remaining provisions of this Agreement will
remain in full force and effect and will not be affected by the legal, invalid
or unenforceable provision or by its severance herefrom and (iv) in lieu of such
illegal, invalid or unenforceable provision, there will be added automatically
as a part of this Agreement a legal, valid and enforceable provision as similar
in terms to such illegal, invalid or unenforceable provision as may be possible.

Section 7.12 Specific Enforcement

             The parties hereto agree and acknowledge that money damages would
not be a sufficient remedy for any breach of any provision of this agreement by
any of the parties hereto and that any such breach would constitute immediate
and irreparable harm, and that in addition to all other remedies which any party
hereto may have, each party will be entitled, without posting any bond, to
specific performance and injunctive relief, without showing any actual damage,
or other equitable relief as a remedy for any such breach.

Section 7.13 Mutual Drafting

                  This Agreement is the mutual product of the parties, and each
provision hereof has been subject to the mutual consultation, negotiation and
agreement of each of the Agreement Parties, and shall not be construed for or
against any Agreement Party hereto.

                                       15
<PAGE>   16

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed by their respective authorized officers as of the day and year
first above written.

                                         SECURITYVILLAGE.COM INC.

                                         By:____________________________________
                                            Name:_______________________________
                                            Title:______________________________

                                         SECURITYVILLAGE TECHNOLOGIES, LTD.

                                         By:____________________________________
                                            Name:_______________________________
                                            Title:______________________________

                                         SECURITY ASSOCIATES INTERNATIONAL, INC.

                                         By:____________________________________
                                            Name:_______________________________
                                            Title:______________________________

                                         KC ACQUISITION CORP.*

                                         By:____________________________________
                                            Name:_______________________________
                                            Title:______________________________

                                         TJS PARTNERS. L.P.

                                         By: TJS Management, L.P.
                                             General Partner

                                             By: TJS Corporation
                                                 General Partner

                                                 By:________________________
                                                 Thomas J. Salvatore
                                                 President

                                       16
<PAGE>   17

                                                --------------------------------
                                                       JAMES S. BRANNEN

                                                --------------------------------
                                                           RON DAVIS

                                                --------------------------------
                                                          THOMAS FEW*

                                                --------------------------------
                                                        TIMOTHY MCGINN*

                                                --------------------------------
                                                          DAVID SMITH*

                                                --------------------------------
                                                          MOSHE COHEN

                                                ST. MARTINS HOLDINGS II, LIMITED

                                                By:_____________________________

                                                Title:__________________________

                                                AUDIOGUARD INTERNATIONAL

                                                By:_____________________________

                                                Its:____________________________

                                                3K DIGITAL LIMITED

                                                By:_____________________________

                                                Its:____________________________

                                                * For purposes of Article 2,
                                                  Section 3.2, Article 5,
                                                  Section 6.1, 6.2, 6.5, and
                                                  Article 7 only.

                                       17<PAGE>   1
                                                                     EXHIBIT 4.2

                          REGISTRATION RIGHTS AGREEMENT

         THIS REGISTRATION RIGHTS AGREEMENT (the "AGREEMENT") is made and
entered into as of the __ day of March, 2001, by and among eResource Capital
Group, Inc., a Delaware corporation ("ERCG") and certain stockholders of LST,
Inc., a Delaware corporation d/b/a LifeStyle Technologies ("LST") listed on
Schedule 1 hereto (each such person a "SELLER" and, collectively, the
"SELLERS").

         NOW, THEREFORE, 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.

                  (a)      "Holder" shall mean any Seller 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.

                  (b)      "Other Stockholders" shall mean persons who, by
virtue of agreements with eRCG other than this Agreement, whether eRCG executed
such agreements prior to the date hereof or subsequent to such date, are
entitled to include their securities in certain registrations hereunder.

                  (c)      "Registrable Securities" shall mean shares of eRCG's
common stock, par value $.04 per share ("ERCG COMMON STOCK") issued to the
Sellers pursuant to those certain Stock Purchase Agreements that each Seller
entered into with eRCG of even date herewith (collectively, the "PURCHASE
AGREEMENTS"); provided that a Registrable Security ceases to be a Registrable
Security when (i) it is registered under the Securities Act of 1933, as amended
(the "SECURITIES ACT"), (ii) it is sold or transferred in accordance with the
requirements of Rule 144 (or similar provisions then in effect), (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.

                  (d)      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, and applicable rules and
regulations thereunder and the declaration or ordering of the effectiveness of
such registration statement.

<PAGE>   2

                  (e)      "Registration Expenses" shall mean all reasonable
expenses incurred in effecting any registration pursuant to this Agreement,
including, without limitation, all federal and state registration,
qualification, and filing fees, printing expenses, escrow fees, fees and
disbursements of counsel for eRCG, 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 eRCG, which shall be paid in any event by eRCG, (iii) disbursements
of counsel for any Holder, (iv) 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 only to the extent that eRCG shall otherwise be making no
offers or sales in such state, province or other jurisdiction in connection with
such registration and (v) any expenses of a registration for which the request
has been withdrawn by the Holder(s) unless the withdrawal is based upon material
adverse information concerning eRCG of which the Holder(s) were not aware at the
time of the request.

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

                  (g)      "Rule 144" shall mean Rule 144 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.

                  (h)      "SEC" shall mean the Securities and Exchange
Commission.

                  (i)      "Selling Expenses" shall mean all underwriting
discounts, selling commissions, brokers' fees and stock transfer taxes
applicable to the sale of Registrable Securities.

         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 eRCG in
writing of the proposed disposition and shall have furnished eRCG with a
detailed statement of the circumstances surrounding the proposed disposition and
the proposed transferee agrees in writing to be subject to all restrictions set
forth in this Agreement and (B) if reasonably requested by eRCG, such Holder
shall have furnished eRCG with an opinion of counsel, reasonably satisfactory to
eRCG, that such disposition will not require registration of such shares under
the Securities Act.

                  (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 (A) a partnership
to its partners in accordance with their partnership interests, (B) a limited
liability company to its members in accordance with their member interests, or
(C) to the Holder's family member or a trust for the benefit of an individual
Holder

                                       2
<PAGE>   3

or one or more of its family members; provided 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 SHARES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE
         SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE SOLD OR TRANSFERRED,
         ASSIGNED, PLEDGED OR HYPOTHECATED UNLESS AND UNTIL REGISTERED UNDER
         SUCH ACT OR UNLESS eRCG HAS RECEIVED AN OPINION OF COUNSEL OR OTHER
         EVIDENCE, SATISFACTORY TO eRCG AND ITS COUNSEL, THAT SUCH REGISTRATION
         IS NOT REQUIRED.

                  (d)      eRCG 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 eRCG)
reasonably acceptable to eRCG 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 eRCG 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 eRCG an opinion of
counsel reasonably acceptable to eRCG to the effect that such legend and/or
stop-transfer instructions are no longer required pursuant to applicable state
securities laws.

         1.3      ERCG REGISTRATION.

                  (a)      Registration Statement. eRCG hereby agrees that
within one-hundred and eighty days (180) from the closing of the transactions
contemplated in the Purchase Agreements, it shall cause to be filed with the SEC
a registration statement on Form S-3 (except if eRCG is not then eligible to
register for resale the Registrable Securities on Form S-3, in which case such
registration shall be on another appropriate form) and prior to such filing eRCG
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); and

                           (ii)     use its commercially reasonable efforts to
include in such registration (and any related filing or qualification under
applicable blue sky laws; provided, however, eRCG shall not be obligated to
effect any registration statement in any jurisdiction in which it would be
required to qualify to do business or execute a general consent to service of

                                       3
<PAGE>   4

process), 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 eRCG within ten (10) days after
the written notice from eRCG described in clause (i) above is mailed or
delivered by eRCG, provided that such Holders shall have requested for inclusion
in such registration at least twenty-five percent (25%) 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.

                  (b)      Underwriting. If the registration of which eRCG gives
notice is for a registered public offering involving an underwriting, eRCG 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 eRCG and the
other holders of securities of eRCG 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 eRCG.

                  Notwithstanding any other provision of this Section 1.3, if
the representative of the underwriters advises eRCG in writing that marketing
factors require a limitation on the number of shares to be underwritten, 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. eRCG 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 eRCG for securities being sold for its own account and
thereafter the Registrable Securities so included will be apportioned pro rata
among the selling Holders according to the total number of Registrable
Securities entitled to be included therein (without regard to the number of
Registrable Securities actually requested to be included therein) owned by each
selling Holder or in such other proportions as shall mutually be agreed to by
such selling Holders. For purposes of the preceding sentence, for any selling
Holder which is Holder of Registrable Securities and which is a partnership or
corporation, the partners, retired partners and shareholders of such Holder, or
the estates and family members of such partners and retired partners and any
trusts for the benefit of any of the foregoing persons shall be deemed to be a
single "selling Holder" and any pro rata reduction with respect to such "selling
Holder" shall be based upon the aggregate amount of share carrying registration
rights owned by all entities and individuals included in such "selling Holder,"
as defined in this sentence. If any person does not agree to the terms of any
such underwriting, it shall be excluded therefrom by written notice from eRCG or
the underwriter. Any Registrable Securities or other securities excluded or
withdrawn from such underwriting shall be withdrawn from such registration.

                  (c)      Rights of Other Stockholders. Each Holder
acknowledges that eRCG has granted or may grant similar or superior registration
rights to Other Stockholders and eRCG may or may not file with the SEC one or
more registration statements covering the resale of securities of eRCG held by
such Other Stockholders (including registration statements filed in

                                       4
<PAGE>   5

connection with private placements commenced by eRCG prior to the date hereof)
and eRCG may, but is not obligated to, offer to include in such registration
statement the Registrable Securities held by the Holders, provided that eRCG
does offer to include the Registrable Securities of the Holders in a
registration statement filed with the SEC within the one hundred and eighty day
(180) period discussed in Section 1.3(a) above.

         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 eRCG. 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.

         1.5      REGISTRATION PROCEDURES. In the case of each registration
affected by eRCG pursuant to Section 1.3 hereof, eRCG will keep each Holder
advised in writing as to the initiation of each registration. At its expense,
eRCG will use its commercially reasonable efforts to:

                  (a)      prepare and file with the SEC such amendments and
supplements to the 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 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, eRCG 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 eRCG has determined
that, for good business reasons, the disclosure of such material nonpublic
information at that time is contrary to the best interests of eRCG in the
circumstances and is not otherwise required under applicable law (including
applicable securities laws); and provided, further, such obligation shall
continue until the earlier of (i) the sale of all Registrable Securities
registered pursuant to the registration statement of which the prospectus forms
a part or (ii) withdrawal of such registration statement.

                                       5
<PAGE>   6

                  (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 eRCG 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 commercially reasonable 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 a period of at least twelve (12) months, but not more than
eighteen (18) 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.

         1.6      INDEMNIFICATION.

                  (a)      eRCG will indemnify each Holder and its officers,
directors, partners, legal counsel, accountants and each person controlling such
Holder within the meaning of Section 15 of the Securities Act, with respect to
which registration, qualification, or compliance has been effected pursuant to
this Article 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) 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 material violation by eRCG of the Securities Act
or any rule or regulation thereunder applicable to eRCG or relating to action or
inaction required of eRCG in connection with any such registration,
qualification, or compliance, and will reimburse each such Holder and its
officers, directors, partners, legal counsel, accountants and each person
controlling such Holder, each such underwriter, and each person who controls any
such underwriter, for legal and other expenses reasonably incurred in connection
with investigating and defending or settling any such claim, loss, damage,
liability, or action; provided that eRCG 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 eRCG by such Holder (or its officers, directors,
partners, legal counsel, accountants or a person controlling such Holder) or
underwriter 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 prior written consent of eRCG (which consent shall not be unreasonably
withheld). The indemnity agreement contained in this paragraph shall not apply
to the extent that any loss, claim, damage, liability or action results from the
fact that a current copy of the registration statement or prospectus was not
sent or given to a proposed transferee asserting any such expenses, loss, claim,
damage or liability at or prior to the written

                                       6
<PAGE>   7

confirmation of the Registrable Securities if it is determined that eRCG
provided such registration statement or prospectus to such selling Holder in a
timely manner prior to such sale and it was the responsibility of the selling
Holder under the Securities Act to provide the proposed transferee with a
current copy of the registration statement or prospectus and such registration
statement or prospectus would have cured the defect giving rise to such expense,
loss, claim, damage or liability.

                  (b)      Each Holder will, if Registrable Securities held by
it are included in the securities as to which such registration, qualification,
or compliance is being effected, indemnify eRCG, each of its directors,
officers, partners, legal counsel, accountants and each underwriter, if any, of
eRCG's securities covered by such a registration statement, each person who
controls eRCG or such underwriter within the meaning of Section 15 of the
Securities Act, each other such Holder and Other Stockholder, and each of their
officers, directors, and partners, and each person controlling such Holder or
Other Stockholder, 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
eRCG and such Holders, Other Stockholders, 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 eRCG by such Holder 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).

                  (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 one (1) 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

                                       7
<PAGE>   8

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.

         1.7      INFORMATION BY HOLDER. Each Holder of Registrable Securities
shall furnish to eRCG such information regarding such Holder and the
distribution proposed by such Holder as eRCG may reasonably request in writing
and the furnishing of such information shall be a condition precedent to the
obligations of eRCG to take action in connection with any registration,
qualification, or compliance referred to in this Section 1. eRCG shall have no
obligation with respect to a registration pursuant to Section 1, if, as a result
of the preceding sentence, the number of shares of Registrable Securities to be
included in the registration does not equal or exceed the percent of Registrable
Securities required to trigger eRCG's obligation to initiate registration
pursuant to Section 1.3(a)(ii) hereof.

         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, eRCG agrees to use
its commercially reasonable efforts to:

                  (a)      make and keep adequate public information regarding
eRCG available as those terms are understood and defined in Rule 144 after the
effective date of a registration statement;

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

                                       8
<PAGE>   9

                  (c)      so long as a Holder owns any Restricted Securities,
furnish to the Holder forthwith upon written request a written statement by eRCG
as to its compliance with the reporting requirements of Rule 144 (at any time
after ninety (90) days after the effective date of a registration statement
filed by eRCG) and of the Securities Act, a copy of the most recent annual or
quarterly report of eRCG, 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      DELAY OF REGISTRATION; CERTAIN NOTICES.

                  (a)      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 any provision of this Agreement.

                  (b)      Notice to Discontinue. Each Holder agrees by
acquisition of such securities that, upon receipt of any notice from eRCG 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 eRCG requests, the Holder will deliver to eRCG all copies of the prospectus
covering the Registrable Securities current at the time of receipt of such
notice.

                  (c)      Notice by Holders. Whenever the Holders have
requested that any Registrable Securities be registered pursuant to this
Agreement, those Holders shall notify eRCG, 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.

         1.10     "MARKET STAND-OFF" AGREEMENT.

                  (a)      Each Holder hereby agrees that, during the period of
duration (up to, but not exceeding, one hundred eighty (180) days) specified by
eRCG and an underwriter of eRCG Common Stock or other securities of eRCG,
following the effective date of a registration statement of eRCG filed under the
Securities Act, it shall not, to the extent requested by eRCG and such
underwriter, directly or indirectly sell, offer to sell, contract to sell
(including, without limitation, any short sale), grant any option to purchase or
otherwise transfer or dispose of (other than to donees who agree to be similarly
bound) any securities of eRCG held by it at any time during such period except
eRCG Common Stock included in such registration.

                  (b)      To enforce the foregoing covenant, eRCG may impose
stop-transfer instructions with respect to the Registrable Securities of each
Holder until the end of such period, and each Holder agrees that, if so
requested, such Holder will execute an agreement in

                                       9
<PAGE>   10

the form provided by the underwriter containing terms which are essentially
consistent with the provisions of this Section 1.10.

         1.11     TERMINATION OF REGISTRATION RIGHTS. The registration rights
granted under this Section 1 shall terminate and be of no further force and
effect if all Registrable Securities held by and issuable to such Holder (and
its affiliates, partners, former partners, members and former members) may be
sold under Rule 144 during any ninety (90) day period.

         2.       REPRESENTATIONS AND WARRANTIES

         2.1      REPRESENTATIONS AND WARRANTIES OF ERCG.  eRCG represents and
warrants to the Sellers as follows:

                  (a)      The execution, delivery and performance of this
Agreement by eRCG 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 eRCG, 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 eRCG, except as would not
reasonably be expected to result in a material adverse effect on eRCG.

                  (b)      This Agreement has been duly executed and delivered
by eRCG and constitutes the legal, valid and binding obligation of eRCG,
enforceable against eRCG 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.

         2.2      REPRESENTATIONS AND WARRANTIES OF THE SELLERS.  Each Seller
(severally and not jointly) represents and warrants to eRCG as follows:

                  (a)      The execution, delivery and performance of this
Agreement by such Seller has been duly authorized by all requisite corporate
action (if applicable) and will not violate any provision of law, any order of
any court or any agency or government, the Articles of Incorporation or Bylaws
of Seller (if applicable), or any provision of any material indenture or
agreement or other instrument to which it or any of its respective 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 Seller except as would not reasonably be expected to result in
a material adverse effect on such Seller.

                  (b)      This Agreement has been duly executed and delivered
by such Seller and constitutes the legal, valid and binding obligation of such
Seller, enforceable against such Seller in accordance with its terms, subject to
applicable bankruptcy, insolvency and other similar

                                       10
<PAGE>   11

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      INFORMATION CONFIDENTIAL. Each Holder acknowledges that the
information received by it pursuant hereto may be confidential and for its use
only, and it will not use such confidential information in violation of the
Securities 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, each of which are informed of
the confidential nature of such information), except in connection with the
exercise of rights under this Agreement, unless eRCG has made such information
available to the public generally or such Holder is required to disclose such
information by a governmental body and gives prior notice to eRCG.

         3.2      BINDING EFFECT. 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. This Agreement constitutes the
full and entire understanding and agreement between the parties with regard to
the subject hereof. Neither this Agreement nor any term hereof may be amended,
waived, discharged or terminated, except by a written instrument signed by eRCG
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. 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, delivered personally by hand, confirmed
facsimile transmission or nationally recognized overnight courier addressed (a)
if to a Holder, as indicated in the stock records of eRCG or at such other
address as such Holder shall have furnished to eRCG by like notice, or (b) if to
eRCG, at 3353 Peachtree Road, NE, Suite 130, Atlanta, Georgia 30326, Attention:
William L. Wortman or at such other address as eRCG shall have furnished to each
Holder by like notice with a copy to Rogers & Hardin LLP, 2700 International
Tower, 229 Peachtree Street, Atlanta, Georgia 30303, Attn: Edward J. Hardin,
Esq. All such notices and other written communications shall be effective on the
date of mailing or delivery.

         3.5      DELAYS OR OMISSIONS. No delay or omission to exercise any
right, power or remedy accruing to eRCG or to any Holder under this Agreement
shall impair any such right, power or remedy 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 of any breach or default under this Agreement or any
waiver of any provisions or conditions of this Agreement must be made in writing
and shall be effective only to the extent

                                       11
<PAGE>   12

specifically set forth in such writing. All remedies, either under this
Agreement or by law or otherwise, 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      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.

         3.8      GOVERNING LAW; JURISDICTION. This Agreement shall be governed
by and construed and enforced in accordance with the internal laws of the State
of Delaware without reference to Delaware'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 North Carolina.

         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.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

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<PAGE>   13

         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.

                           ERESOURCE CAPITAL GROUP, INC.

                           By:
                              ------------------------------------------------
                                Its:
                                    ------------------------------------------

                           SELLER

                           ---------------------------------------------------
                           Signature

                           ---------------------------------------------------
                           Printed Name

              [SIGNATURES OF ADDITIONAL SELLERS ON FOLLOWING PAGES]

                                       13

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