Document:

<PAGE>   1
                                                                   EXHIBIT 10.38

                           RECAPITALIZATION AGREEMENT

      THIS RECAPITALIZATION AGREEMENT ("Agreement") is made and entered into
this 25th day of June 2001 by and among Gunther International, Ltd., a
Delaware Corporation with its principal place of business located at One
Winnenden Road, Norwich, Connecticut 06360 (the "Company"); June H. Geneen,
Phil E. Gilbert, Jr. and The United States Trust Company of New York, as
Co-Executors of the Estate of Harold S. Geneen, late of New York, New York
(the "Estate"); Gunther Partners, LLC, a Delaware limited liability company
("Gunther Partners"); Park Investment Partners, Inc., a Delaware corporation
("Park"); and Gerald H. Newman ("Newman").

                                    RECITALS:

      A. On October 2, 1998, the Company effectuated a recapitalization
transaction (the "1998 Recapitalization Transaction") pursuant to the terms and
conditions set forth in an Agreement, dated as of such date (the "1998
Recapitalization Agreement"), by and among the Company, BankBoston, N.A, the
Estate, and Gunther Partners.

      B. In connection with the 1998 Recapitalization Transaction, the Company
borrowed $4 million from Gunther Partners pursuant to a Loan and Security
Agreement, dated such date (the "Loan and Security Agreement"), entered into by
and between the Company and Gunther Partners. The indebtedness incurred under
the Loan and Security Agreement is evidenced by a Term Note, originally dated as
of October 2, 1998 (the "Gunther Partners Term Note"), in the original principal
amount of $4 million.

      C. In order to induce Gunther Partners to enter into the 1998
Recapitalization Agreement and participate in the 1998 Recapitalization
Transaction, the Company and Gunther Partners also entered into a Warrant
Agreement, dated as of October 2, 1998 (the "Warrant Agreement"), pursuant to
which the Company issued warrants (the "Warrants") to purchase up to thirty-five
percent (35%) of the pro forma, fully diluted number of shares (the "Warrant
Shares") of the common stock, par value $.001 per share ("Common Stock"), of the
Company at an exercise price of $1.50 per share at any time on or before October
1, 2003 (the "Warrant Expiration Date").

      D. The Company and Gunther Partners also entered into a Registration
Rights Agreement, dated as of October 2, 1998 (the "Registration Rights
Agreement"), pursuant to which the Company agreed to register the Warrant Shares
under the Securities Act of 1933, as amended (the "Securities Act"). In
addition, the Company, Gunther Partners, the Estate, Park, Newman, Robert
Spiegel ("Spiegel") and Four Partners, a New York general partnership entered
into a Voting Agreement, dated as of October 2, 1998 (the "Voting Agreement"),
pursuant to which the parties each agreed to vote all shares of the Company's
Common Stock held by them in favor of persons nominated as directors of the
Company by Gunther Partners, the Estate and Park.

      E. In connection with the 1998 Recapitalization Transaction, the Company
executed and issued to the Estate a Promissory Note, dated as of October 2, 1998
(the "Estate Note"), in
<PAGE>   2
the original principal amount of $1,701,168.75. The Company already owed the
Estate $150,000.00, pursuant to the terms of a borrowing (the "Geneen Note")
effectuated by Mr. Harold S. Geneen prior to his death. The Estate Note and the
Geneen Note are sometimes hereinafter collectively referred to as the "Estate
Notes."

      F. On November 17, 1998, Gunther Partners distributed the Warrants to its
members on a pro-rata basis, and each such member agreed to be bound by the
Warrant Agreement, the Voting Agreement and the Registration Rights Agreement.
The members of Gunther Partners are (i) Four Partners, New York general
partnership, (ii) Spiegel, (iii) the Richard Spiegel 1987 Trust, and (iv) Thomas
M. Steinberg. Subsequently, on November 24, 1998, Four Partners distributed its
Warrants to Four-Fourteen Partners, LLC, a Delaware limited liability company.

      G. On April 4, 2000, the Company borrowed an additional $500,000 from
Gunther Partners under and pursuant to a promissory note, dated as of such date
(the "Gunther Partners Demand Note"), which indebtedness was originally due and
payable on demand on or after April 1, 2001.

      H. On November 30, 2000, the Company borrowed an additional $500,000 from
Spiegel under and pursuant to a promissory note, dated as of such date (the
"Spiegel Note"), which principal indebtedness is due and payable on November 30,
2001.

      I. The Estate is the beneficial owner of 919,568.5 shares of Common Stock
of the Company (the "Estate Shares"), 225,824 of which are owned of record by
the Estate (the "Estate's Record Shares") and 693,744.5 of which are owned of
record by Park (the "Estate's Beneficial Shares"). The issued and outstanding
common stock of Park is 50% owned by the Estate and 50% owned by Newman.

      J. The Estate has offered to sell the Estate Notes and the Estate Shares
to the Company for an aggregate purchase price of $637,935, provided that the
closing for such transaction occurs as soon as practicable, but no later than
the date which is thirty (30) days following the date of this Agreement.

      K. The Company desires to repurchase from the Estate the Estate Notes and
the Estate Shares and to pay in full the principal and accrued interest
outstanding under the Gunther Partners Term Note, the Gunther Partners Demand
Note and the Spiegel Note (such transactions being sometimes hereinafter
collectively referred to as the "Debt Transactions").

      L. In order to generate the funds necessary to effectuate the Debt
Transactions, the Company intends to engage in a rights offering registered
under the Securities Act (the "Rights Offering"), pursuant to which the Company
will offer and sell to its stockholders up to 16,000,000 shares of its Common
Stock at a purchase price of $.50 per share (the "Subscription Price").

      M. The Debt Transactions and the Rights Offering are sometimes
hereinafter collectively referred to as the "Recapitalization Transactions."

                                     - 2 -
<PAGE>   3
      N. In order to enable the Company to effectuate the repurchase of the
Estate Shares and the Estate Notes within the time-frame specified by the
Estate, Gunther Partners is willing to purchase from the Estate for the benefit
of the Company the Estate Shares and the Estate Notes and then, after the
consummation of the Rights Offering, to resell, at cost, the Estate Shares and
the Estate Notes to the Company.

      O. The parties hereto desire to enter into this Agreement evidencing their
commitment to effectuate the Recapitalization Transactions, all on the terms and
subject to the conditions hereinafter set forth.

      NOW, THEREFORE, the parties hereto, for good and valuable consideration,
each to the other paid, the receipt and sufficiency of which are hereby
acknowledged, do hereby agree as follows:

      1.    Rights Offering; Registration Statement; Use of Proceeds.

            (a) Offering. The Company shall use its reasonable best efforts to
effectuate a registered public offering of up to 16,000,000 million shares of
its Common Stock (the "Offered Shares") to its existing stockholders by
subscription right on a pro-rata basis. The rights to subscribe to the Offered
Shares shall be granted at a ratio (e.g. 3.728-for-1) to be determined by the
Board of Directors of the Company in its sole discretion (the "Basic
Subscription Right"). In addition, the Company's stockholders shall be granted
the right to "oversubscribe" for additional shares not purchased by other
stockholders, up to the total amount of the Offered Shares (the
"Oversubscription Right"). The number of shares available for purchase by means
of the Oversubscription Rights shall be the total number of Offered Shares minus
the number of shares purchased upon exercise of all stockholders' Basic
Subscription Rights. If sufficient shares are available, the Company will honor
the stockholders' oversubscription requests in full. If the oversubscription
requests exceed the number of shares available, then the Company shall allocate
the available shares among the oversubscribing stockholders, other than Gunther
Partners, in proportion to the number of shares purchased by each such
stockholder through the exercise of his Basic Subscription Rights.

            (b) Purchase Commitment of Gunther Partners. In the event that the
Company's stockholders other than Gunther Partners do not subscribe for and
purchase all 16,000,000 of the Offered Shares through the exercise of their
Basic Subscription Rights and their Oversubscription Rights, Gunther Partners
shall subscribe for and purchase from the Company in the Rights Offering through
the exercise of its Basic Subscription Rights and/or its Oversubscription Rights
a number of shares equal to 16,000,000 less the number of shares subscribed for
and purchased by stockholders other than Gunther Partners, up to a maximum of
14,000,000 shares.

            (c) Preparation of Registration Statement. The Company shall prepare
and file, and use its reasonable best efforts to have declared effective, a
registration statement on Form S-3 (or any such other Form as may be available
for use by the Company) (the "Registration Statement") with the Securities and
Exchange Commission (the "Commission") pursuant to the Securities Act and the
rules and regulations promulgated thereunder for the

                                     - 3 -
<PAGE>   4
purpose of registering for sale under the Securities Act the Offered Shares. The
Company shall consult with Gunther Partners, the Estate, Park, Newman and
Spiegel (and their respective legal and financial advisers, as the case may be)
regarding the preparation of the Registration Statement. The Company shall use
its reasonable best efforts to complete the Rights Offering no later than
September 30, 2001.

            (d) Application of Net Proceeds. The net proceeds of the Rights
Offering (estimated to range from $7 to $8 million before expenses) shall be
utilized to fund the payment in full of the Gunther Partners Term Note, the
Gunther Partners Demand Note and the Spiegel Note and the purchase of the Estate
Notes and the Estate Shares. The balance of funds raised in the Rights Offering
in excess of the amounts required to consummate the Debt Transactions as
described in the preceding sentence shall be utilized by the Company for its
general working capital purposes, the specific determination of which shall be
in the sole and absolute discretion of the Board of Directors and management of
the Company.

            (e) Effect on Gunther Partners Warrant Agreement. The parties to the
Warrant Agreement and the holders of the Warrants hereby acknowledge and agree
that, pursuant to Section 3.01(a) of the Warrant Agreement, the issuance and
sale by the Company of the Offered Shares shall have no effect on the number of
shares of the Company's Common Stock into which the Warrants are exercisable
(because the Rights Offering is a bona fide public offering registered under the
applicable provisions of the Securities Act of 1933, as amended). The parties
further agree that, pursuant to the terms of the Spiegel Note, the Warrant
Expiration Date shall be extended for one calendar day for each calendar day
from and after April 1, 2001 until the repayment in full by the Company of all
principal and interest due under the Spiegel Note.

      2.    Repurchase of the Estate Shares and the Estate Notes by the
Company.

            (a) General. The Estate hereby agrees to sell to the Company, and,
subject to applicable law and the terms and provisions of this Agreement, the
Company hereby agrees to purchase from the Estate, the Estate Shares for an
aggregate purchase price of one hundred thirty-seven thousand nine hundred
thirty-five dollars ($137,935.00) (or $.15 per share) and the Estate Notes for
an aggregate purchase price of five hundred thousand dollars ($500,000.00). The
aggregate, combined purchase price of the Estate Shares and the Estate Notes is
sometimes hereinafter referred to as the "Aggregate Repurchase Price."

            (b) Financial Condition of the Company; Financial Assistance from
Gunther Partners. Prior to the consummation of the Rights Offering and the
receipt of the net proceeds generated thereby, the Company will not be in a
financial position legally to effectuate the repurchase of the Estate Shares and
the Estate Notes (the "Repurchase Transactions"). To facilitate the consummation
of the Repurchase Transactions prior to the consummation of the Rights Offering,
Gunther Partners hereby agrees to effectuate the Repurchase Transactions itself
for the benefit of the Company, on the terms and conditions set forth in this
Section 2, and the Estate hereby agrees to sell the Estate Shares and the Estate
Notes to Gunther Partners for the benefit of the Company.

                                     - 4 -
<PAGE>   5
            (c) The Repurchase Closing. The closing of the Repurchase
Transactions (the "Repurchase Closing") shall be held at the principal executive
offices of Gunther Partners (or any other mutually convenient place) at such
time and on such date as may be mutually determined by Gunther Partners and the
Estate (the "Repurchase Closing Date"), provided, however, that, unless
otherwise agreed between Gunther Partners and the Estate, the Repurchase Closing
shall be held on a date which is no more than thirty (30) days after the date of
this Agreement. Upon consummation of the sale of the Estate Shares and the
Estate Notes by the Estate to Gunther Partners at the Repurchase Closing, the
Estate shall be deemed to have fulfilled its obligations under this Agreement
(except for the obligations of the Estate under Section 13 hereof).

            (d) Closing Deliveries. At the Repurchase Closing, the Estate shall
deliver to Gunther Partners the certificate or certificates representing the
Estate Shares, duly endorsed or accompanied by stock powers executed in blank,
and the Estate Notes (assigned to the order of Gunther Partners), both in form
and substance satisfactory to Gunther Partners, together with any and all other
documents reasonably requested by Gunther Partners to document the purchase and
sale of the Estate Shares and the Estate Notes. The Estate shall also represent
to Gunther Partners that the Estate Shares and the Estate Notes are being
transferred free and clear of all liens and encumbrances created by the Estate.
In exchange, Gunther Partners shall pay to the Estate the Aggregate Repurchase
Price in immediately available funds by wire transfer or previously cleared
check, unless other means of payment shall have been agreed upon by the Estate
and Gunther Partners.

            (e) Distribution by Park. In order to facilitate the Repurchase
Transactions, Park shall take whatever actions are necessary to distribute the
Estate's Beneficial Shares to the Estate as soon as practicable, but in any
event no later than five (5) business days prior to the Repurchase Closing Date.

            (f) Resale by Gunther Partners to the Company. Following the
consummation of the Rights Offering, Gunther Partners shall sell to the Company,
and the Company shall purchase from Gunther Partners, the Estate Shares for a
total purchase price of one hundred thirty-seven thousand nine hundred
thirty-five dollars ($137,935.00) (or $.15 per share) and the Estate Notes for a
total purchase price of five hundred thousand dollars ($500,000.00).

            (g) The GP Closing. The closing of the purchase transactions
contemplated by the preceding paragraph (the "GP Closing") shall consist of
Gunther Partners' sale and the Company's purchase of the Estate Shares and the
Estate Notes on the same terms and conditions as the repurchase by Gunther
Partners. The GP Closing shall be held at the principal offices of the Company
(or any other mutually convenient place) at such time and date selected by
Gunther Partners and the Company, provided that the GP Closing shall occur no
later than thirty (30) days following the completion of the Rights Offering.

            (h) GP Closing Deliverables. At the GP Closing, Gunther Partners
shall deliver to the Company the certificates representing the Estate Shares
duly endorsed or accompanied by stock powers executed in blank and the Estate
Notes (assigned to the order of

                                     - 5 -
<PAGE>   6
the Company), both in form and substance satisfactory to the Company, together
with all other documents reasonably requested by the Company to document the
purchase and sale of the Estate Shares and the Estate Note. Gunther Partners
shall also represent that the Estate Shares and the Estate Note are being
transferred free and clear of all liens and encumbrances created by Gunther
Partners. At the GP Closing, the Company shall pay the purchase price in
immediately available funds by wire transfer or previously cleared check, unless
other means of payment shall have been agreed upon by the Company and Gunther
Partners.

      3.    Forbearance Under Gunther Partners Demand Note. Gunther Partners
hereby ratifies and confirms its agreement, effective as of March 31, 2001, to
forebear on the demand of repayment of principal and interest under the Gunther
Demand Note until the date which is the earlier of (a) the date which is thirty
(30) days following the expiration of the Rights Offering or (b) December 31,
2001.

      4.    Amendment to the Company's Restated Certificate of Incorporation.

            (a) As of the date hereof, the Company has (i) an authorized class
of Common Stock of 16,000,000 shares and (ii) 4,291,769 shares of Common Stock
issued and outstanding and 3,044,285 shares reserved for issuance under the
Company's outstanding stock options and warrant agreements.

            (b) The Company's planned sale of the Offered Shares requires that
the Restated Certificate of Incorporation of the Company (the "Certificate of
Incorporation") be amended to increase the number of authorized shares of Common
Stock of the Company.

            (c) The Company shall prepare, and submit to the stockholders of the
Company for their approval in accordance with Delaware law an amendment to the
Company's Certificate of Incorporation increasing the number of authorized
shares of Common Stock by sixteen (16) million shares, to a total of thirty-two
(32) million shares of Common Stock.

      5.    Registration Rights Agreement. In order to facilitate the Rights
Offering, Gunther Partners hereby waives its right to receive any required
notices and the right to exercise its "piggyback registration" rights to cause
the Company to include the Warrant Shares in the Registration Statement to be
filed in connection with the Rights Offering, as set forth in Section 4(a) of
the Registration Rights Agreement.

      6.    Voting Agreement. Upon the completion of the Repurchase described in
Section 2 of this Agreement, the completion of the Rights Offering, and the
retirement of the Company's outstanding debt obligations referred to in Section
1(d) of this Agreement, the Voting Agreement shall terminate and be of no
further legal force or effect, as provided in Section 3.3 of the Voting
Agreement.

      7.    Termination.

            (a) General. This Agreement may be terminated, and the
Recapitalization Transactions contemplated hereby may be abandoned (to the
extent that any particular

                                     - 6 -
<PAGE>   7
transactions have not already been consummated) at any time prior to the time
such Recapitalization Transactions are consummated:

                (i)      by the unanimous written consent of the parties to
this Agreement; or

                (ii)     by the Company, if the Rights Offering shall not have
been consummated on or before December 31, 2001.

            (b) Effect of Termination. In the event of any termination of this
Agreement pursuant to the provisions of paragraph (a) above, the parties shall
have no further obligation or liability to each other with respect to the
subject matter hereof; provided, however, that no termination pursuant to
paragraph (a) above shall (i) relieve any party from liability for any breach of
any covenant or agreement of such party contained in this Agreement; (ii) affect
or impair any rights the parties may have under, or by virtue of, any other
documents and agreements among the parties; or (iii) unless otherwise set forth
in a written termination document signed by Gunther Partners and the Company,
relieve Gunther Partners of its obligation to resell the Estate Shares and the
Estate Notes to the Company on the terms and conditions set forth in Section 2
above as soon as the Company is financially able, and legally authorized, to
effectuate such repurchase transactions.

      8.    Notices. All notices, consents, waivers, and other communications
under this Agreement must be in writing and will be deemed to have been duly
given when (a) delivered by hand, (b) sent by facsimile, provided that a copy is
mailed by registered mail, return receipt requested, or (c) when received by the
addressee, if sent by a nationally recognized overnight delivery service
(receipt requested), in each case to the appropriate addresses and facsimile
numbers set forth below (or to such other addresses and facsimile numbers as a
party may designate by notice to the other parties):

      If to the Company:                Gunther International, Ltd.
                                        One Winnenden Road
                                        Norwich, CT  06360
                                        Attn:  Marc I. Perkins, CEO
                                        Facsimile No.:  (860) 886-8889

                  with a copy to:       Murtha Cullina, LLP
                                        CityPlace I, 185 Asylum Street
                                        Hartford, CT  06103-3469
                                        Attention: Richard S. Smith, Jr.
                                        Facsimile: (860) 240-6150

                                     - 7 -
<PAGE>   8
If to the Estate:                 Co-Executors of the Estate of Harold S. Geneen
                                  c/o United States Trust Company of New York
                                  114 West 47th Street
                                  New York, N.Y.  10036
                                  Attention:  Steven S. Kirkpatrick
                                  Facsimile No.: (212) 852-3852

                with a copy to:   Cameron & Hornbostel LLP
                                  866 United Nations Plaza, Suite 249
                                  New York, N.Y.  10017
                                  Attention:  Thomas Silbiger
                                  Facsimile: (646) 735-3759

If to Gunther Partners:           Gunther Partners, LLC
                                  c/o Thomas M. Steinberg, President
                                  Tisch Family Interests
                                  667 Madison Avenue
                                  New York, N.Y.  10021
                                  Attention: Thomas M. Steinberg
                                  Facsimile No.: (212) 521-2540

                with a copy to:   Rice & Ravitch LLP
                                  610 Fifth Avenue, Suite 420
                                  New York, N.Y. 10020
                                  Attention: Donald S. Rice, Esq.
                                  Facsimile No.: (212) 218-7888

If to Spiegel:                    Robert Spiegel
                                  60 Sachem Road
                                  Weston, CT 06883
                                  Facsimile No.: (203) 227-2680

                with a copy to:   Rice & Ravitch LLP
                                  610 Fifth Avenue
                                  Suite 420
                                  New York, NY 10020
                                  Attention: Donald S. Rice, Esq.
                                  Facsimile No.: (212) 218-7888

If to Park:                       Park Investment Partners, Inc.
                                  17161 Coral Cove Way
                                  Boca Raton, FL 33496
                                  Attention: Gerald H. Newman
                                  Facsimile No.: (561) 997-6601

If to Newman:                     Gerald H. Newman

                                     - 8 -
<PAGE>   9
                                  17161 Coral Cove Way
                                  Boca Raton, FL 33496
                                  Facsimile No.: (561) 997-6601

      8.    Modification. This Agreement may not be amended, changed or
terminated orally, and no attempted amendment, change, termination or waiver of
any of the provisions hereof shall be binding unless in writing and signed by
each of the parties to be charged thereby. Without limiting the generality of
the foregoing, the other parties to this Agreement acknowledge and agree that
the Company and Gunther Partners, acting alone without the consent or
concurrence of any other party to this Agreement, may amend, change, terminate
or waive any of the provisions hereof pertaining to (a) the Rights Offering (and
the participation in the Rights Offering of Gunther Partners), (b) the Company's
repurchase of the Estate Shares and the Estate Notes from Gunther Partners, (c)
the payment of, and forbearance under, the Gunther Partners Term Note, the
Gunther Partners Demand Note, the Spiegel Note and the Estate Notes (from and
after the time the Estate Notes are purchased by Gunther Partners for the
benefit of the Company), and (d) the amendments to the Certificate of
Incorporation contemplated by Section 4 hereof.

      9.    Governing Law.  This Agreement shall be governed by and construed
in accordance with the laws of the State of Connecticut, without regard to
the conflict of laws provisions thereof.

      10.   Severability. The provisions of this Agreement are independent of
and severable from each other. If any provision hereof shall for any reason be
held invalid or unenforceable, such invalidity or unenforceability shall not
affect the validity or enforceability of any other provision hereof, and this
Agreement shall be construed as if such invalid or unenforceable provision had
never been contained herein.

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

      12.   Execution by Telefacsimile Transmission. Telefacsimile transmissions
of any executed original document and/or retransmission of any executed
telefacsimile transmission shall be deemed to be the same as the delivery of an
executed original. At the request of any party hereto, the other parties shall
confirm telefacsimile transmissions by executing duplicate original documents
and delivering the same to the requesting party or parties.

      13.   Further Assurances. Each of the parties hereto shall execute such
additional documents and perform such further acts (including, without
limitation, obtaining any consents, exemptions, authorizations, or other actions
by, or giving any notices to, or making any filings with, any governmental
authority or any other person) as may be reasonably required or desirable to
carry out or to perform the provisions of this Agreement.

                [Rest of This Page Intentionally Left Blank.]

                                     - 9 -
<PAGE>   10
      IN WITNESS WHEREOF, the parties have hereunto set their hands and executed
this Agreement as of the day and year first above written.

                                    GUNTHER INTERNATIONAL, LTD.

                                    By:    /s/ Marc Perkins
                                           -------------------------------------
                                        Name:  Marc Perkins
                                        Title: President & CEO

                                    ESTATE OF HAROLD S. GENEEN

                                    By:    /s/ June H. Geneen
                                           -------------------------------------
                                               June H. Geneen, Co-Executor

                                    By:    /s/ Phil E. Gilbert, Jr.
                                           -------------------------------------
                                               Phil E. Gilbert, Jr., Co-Executor

                                    By:    UNITED STATES TRUST COMPANY
                                           OF NEW YORK, Co-Executor

                                    By:    /s/ Steven S. Kirkpatrick
                                           -------------------------------------
                                        Name:  Steven S. Kirkpatrick
                                        Title: Senior Vice President

                                    GUNTHER PARTNERS, LLC

                                    By:    /s/ Thomas J. Tisch
                                           -------------------------------------
                                        Name:  Thomas J. Tisch
                                        Title: Managing Member

                                    PARK INVESTMENT PARTNERS, INC.

                                    By:    /s/ Gerald Newman
                                           -------------------------------------
                                        Name:  Gerald Newman
                                        Title: President

                                           /s/ Gerald H. Newman
                                           -------------------------------------
                                               GERALD H. NEWMAN

                                 ACKNOWLEDGEMENT

                                     - 10 -
<PAGE>   11
      The undersigned, to the extent that they are (i) members of Gunther
Partners, LLC, (ii) parties to the Warrant Agreement, the Registration Rights
Agreement and the Voting Agreement, and (iii) holders of Warrants, hereby
acknowledge the covenants and agreements set forth in Sections 1(e), 5 and 6 of
this Agreement and hereby agree to be bound by same.

                                    FOUR PARTNERS

                                    By:    /s/ Thomas J. Tisch
                                           ---------------------------
                                        Name:  Thomas J. Tisch
                                        Title: Managing Partner

                                           /s/ Robert Spiegel
                                           ---------------------------
                                              ROBERT SPIEGEL

                                    RICHARD SPIEGEL 1987 TRUST

                                    By:    /s/ Robert Spiegel, Trustee
                                           ---------------------------
                                        Name:
                                        Title:

                                           /s/ Thomas M. Steinberg
                                           ---------------------------
                                    THOMAS M. STEINBERG

                                    FOUR-FOURTEEN PARTNERS, LLC

                                    By:    /s/ Thomas J. Tisch
                                           ---------------------------
                                        Name:  Thomas J. Tisch
                                        Title: Managing Member

                                     - 11 -Exhibit 10.58

                                     FORM OF
                          REGISTRATION RIGHTS AGREEMENT

         REGISTRATION RIGHTS AGREEMENT (this "Agreement"), dated as of _______,
2001, by and between ATLANTIC TECHNOLOGY VENTURES, INC., a Delaware corporation,
(the "Company"), and FUSION CAPITAL FUND II, LLC, an Illinois limited liability
company (the "Buyer"). Capitalized terms used herein and not otherwise defined
herein shall have the respective meanings set forth in the Common Stock Purchase
Agreement by and between the parties hereto dated as of May 03, 2001 (as
amended, restated, supplemented or otherwise modified from time to time, the
"Purchase Agreement").

                                    WHEREAS:

         A. The Company has agreed, upon the terms and subject to the conditions
of the Purchase Agreement, to issue to the Buyer (i) up to Six Million Dollars
($6,000,000) of the Company's common stock, par value $0.001 per share (the
"Common Stock") (the "Purchase Shares"), and (ii) such number of shares of
Common Stock as is required pursuant to Section 4(f) of the Purchase Agreement
(the "Commitment Shares"); and

         B. To induce the Buyer to enter into the Purchase Agreement, the
Company has agreed to provide certain registration rights under the Securities
Act of 1933, as amended, and the rules and regulations thereunder, or any
similar successor statute (collectively, the "1933 Act"), and applicable state
securities laws.

         NOW, THEREFORE, in consideration of the premises and the mutual
covenants contained herein and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the Company and the
Buyer hereby agree as follows:

         1.       DEFINITIONS.

                  As used in this Agreement, the following terms shall have the
following meanings:

                  a. "Investor" means the Buyer, any transferee or assignee
thereof to whom a Buyer assigns its rights under this Agreement and who agrees
to become bound by the provisions of this Agreement in accordance with Section 9
and any transferee or assignee thereof to whom a transferee or assignee assigns
its rights under this Agreement and who agrees to become bound by the provisions
of this Agreement in accordance with Section 9.

                  b. "Person" means any person or entity including any
corporation, a limited liability company, an association, a partnership, an
organization, a business, an individual, a governmental or political subdivision
thereof or a governmental agency.

                  c. "Register," "registered," and "registration" refer to a
registration effected by preparing and filing one or more registration
statements of the Company in compliance with the 1933 Act and pursuant to Rule
415 under the 1933 Act or any successor rule providing for offering securities
on a continuous basis ("Rule 415"), and the declaration or ordering of
effectiveness of such registration statement(s) by the United States Securities
and Exchange Commission (the "SEC").

<PAGE>

                  d. "Registrable Securities" means the Purchase Shares which
have been, or which may from time to time be, issued or issuable upon purchases
of the Available Amount under the Purchase Agreement (without regard to any
limitation or restriction on purchases) and the Commitment Shares issued to the
Investor at or prior to the Commencement and any shares of capital stock issued
or issuable with respect to the Purchase Shares, the Commitment Shares or the
Purchase Agreement as a result of any stock split, stock dividend,
recapitalization, exchange or similar event or otherwise, without regard to any
limitation on purchases under the Purchase Agreement.

                  e. "Registration Statement" means the registration statement
of the Company which the Company has agreed to file pursuant to Section 4(a) of
the Purchase Agreement with respect to the sale of the Registrable Securities.

         2.       REGISTRATION.

                  a. Mandatory Registration. The Company shall use best efforts
to keep the Registration Statement effective pursuant to Rule 415 promulgated
under the 1933 Act and available for sales of all of the Registrable Securities
at all times until the earlier of (i) the date as of which the Investor may sell
all of the Registrable Securities without restriction pursuant to Rule 144(k)
promulgated under the 1933 Act (or successor thereto) or (ii) the date on which
(A) the Investor shall have sold all the Registrable Securities and no Available
Amount remains under the Purchase Agreement (the "Registration Period"). The
Registration Statement (including any amendments or supplements thereto and
prospectuses contained therein) shall not contain any 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, in light of the circumstances in which
they were made, not misleading.

                  b. Rule 424 Prospectus. The Company shall, as required by
applicable securities regulations, from time to time file with the SEC, pursuant
to Rule 424 promulgated under the 1933 Act, the prospectus and prospectus
supplements, if any, to be used in connection with sales of the Registrable
Securities under the Registration Statement. The Investor and its counsel shall
have a reasonable opportunity to review and comment upon such prospectus prior
to its filing with the SEC. The Investor shall use its reasonable best efforts
to comment upon such prospectus within one (1) Trading Day from the date the
Investor receives the final version of such prospectus.

                  c. Sufficient Number of Shares Registered. In the event the
number of shares available under the Registration Statement is insufficient to
cover all of the Registrable Securities, the Company shall amend the
Registration Statement or file a new registration statement (a "New Registration
Statement"), so as to cover all of such Registrable Securities as soon as
practicable, but in any event not later than ten (10) Trading Days after the
necessity therefor arises. The Company shall use it best efforts to cause such
amendment and/or New Registration Statement to become effective as soon as
practicable following the filing thereof.

         3.       RELATED OBLIGATIONS.

         With respect to the Registration Statement and whenever any Registrable
Securities are to be registered pursuant to Section 2(b) including on any New
Registration Statement, the Company shall use its reasonable best efforts to
effect the registration of the Registrable Securities in accordance with the
intended method of disposition thereof and, pursuant thereto, the Company shall
have the following obligations:

                                       2
<PAGE>

                  a. The Company shall prepare and file with the SEC such
amendments (including post-effective amendments) and supplements to any
registration statement and the prospectus used in connection with such
registration statement, which prospectus is to be filed pursuant to Rule 424
promulgated under the 1933 Act, as may be necessary to keep the Registration
Statement or any New Registration Statement effective at all times during the
Registration Period, and, during such period, comply with the provisions of the
1933 Act with respect to the disposition of all Registrable Securities of the
Company covered by the Registration Statement or any New Registration Statement
until such time as all of such Registrable Securities shall have been disposed
of in accordance with the intended methods of disposition by the seller or
sellers thereof as set forth in such registration statement.

                  b. The Company shall permit the Investor to review and comment
upon the Registration Statement or any New Registration Statement and all
amendments and supplements thereto at least two (2) Trading Days prior to their
filing with the SEC, and not file any document in a form to which Investor
reasonably objects. The Investor shall use its reasonable best efforts to
comment upon the Registration Statement or any New Registration Statement and
any amendments or supplements thereto within two (2) Trading Days from the date
the Investor receives the final version thereof. The Company shall furnish to
the Investor, without charge any correspondence from the SEC or the staff of the
SEC to the Company or its representatives relating to the Registration Statement
or any New Registration Statement.

                  c. The Company shall furnish to the Investor, (i) promptly
after the same is prepared and filed with the SEC, at least one copy of such
registration statement and any amendment(s) thereto, including financial
statements and schedules, all documents incorporated therein by reference and
all exhibits, (ii) upon the effectiveness of any registration statement, ten
(10) copies of the prospectus included in such registration statement and all
amendments and supplements thereto (or such other number of copies as the
Investor may reasonably request) and (iii) such other documents, including
copies of any preliminary or final prospectus, as the Investor may reasonably
request from time to time in order to facilitate the disposition of the
Registrable Securities owned by the Investor.

                  d. The Company shall use reasonable best efforts to (i)
register and qualify the Registrable Securities covered by a registration
statement under such other securities or "blue sky" laws of such jurisdictions
in the United States as the Investor reasonably requests, (ii) prepare and file
in those jurisdictions, such amendments (including post-effective amendments)
and supplements to such registrations and qualifications as may be necessary to
maintain the effectiveness thereof during the Registration Period, (iii) take
such other actions as may be necessary to maintain such registrations and
qualifications in effect at all times during the Registration Period, and (iv)
take all other actions reasonably necessary or advisable to qualify the
Registrable Securities for sale in such jurisdictions; provided, however, that
the Company shall not be required in connection therewith or as a condition
thereto to (x) qualify to do business in any jurisdiction where it would not
otherwise be required to qualify but for this Section 3(d), (y) subject itself
to general taxation in any such jurisdiction, or (z) file a general consent to
service of process in any such jurisdiction. The Company shall promptly notify
the Investor who holds Registrable Securities of the receipt by the Company of
any notification with respect to the suspension of the registration or
qualification of any of the Registrable Securities for sale under the securities
or "blue sky" laws of any jurisdiction in the United States or its receipt of
actual notice of the initiation or threatening of any proceeding for such
purpose.

                  e. As promptly as practicable after becoming aware of such
event or facts, the Company shall notify the Investor in writing of the
happening of any event or existence of such facts as a result of which the
prospectus included in any 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

                                       3
<PAGE>

make the statements therein, in light of the circumstances under which they were
made, not misleading, and promptly prepare a supplement or amendment to such
registration statement to correct such untrue statement or omission, and deliver
ten (10) copies of such supplement or amendment to the Investor (or such other
number of copies as the Investor may reasonably request). The Company shall also
promptly notify the Investor in writing (i) when a prospectus or any prospectus
supplement or post-effective amendment has been filed, and when a registration
statement or any post-effective amendment has become effective (notification of
such effectiveness shall be delivered to the Investor by facsimile on the same
day of such effectiveness and by overnight mail), (ii) of any request by the SEC
for amendments or supplements to any registration statement or related
prospectus or related information, and (iii) of the Company's reasonable
determination that a post-effective amendment to a registration statement would
be appropriate.

                  f. The Company shall use its reasonable best efforts to
prevent the issuance of any stop order or other suspension of effectiveness of
any registration statement, or the suspension of the qualification of any
Registrable Securities for sale in any jurisdiction and, if such an order or
suspension is issued, to obtain the withdrawal of such order or suspension at
the earliest possible moment and to notify the Investor of the issuance of such
order and the resolution thereof or its receipt of actual notice of the
initiation or threat of any proceeding for such purpose.

                  g. The Company shall (i) cause all the Registrable Securities
to be listed on each securities exchange on which securities of the same class
or series issued by the Company are then listed, if any, if the listing of such
Registrable Securities is then permitted under the rules of such exchange, or
(ii) secure designation and quotation of all the Registrable Securities on the
Nasdaq SmallCap System. The Company shall pay all fees and expenses in
connection with satisfying its obligation under this Section.

                  h. The Company shall cooperate with the Investor to facilitate
the timely preparation and delivery of certificates (not bearing any restrictive
legend) representing the Registrable Securities to be offered pursuant to any
registration statement and enable such certificates to be in such denominations
or amounts as the Investor may reasonably request and registered in such names
as the Investor may request.

                  i. The Company shall at all times provide a transfer agent and
registrar with respect to its Common Stock.

                  j. If reasonably requested by the Investor, the Company shall
(i) immediately incorporate in a prospectus supplement or post-effective
amendment such information as the Investor believes should be included therein
relating to the sale and distribution of Registrable Securities, including,
without limitation, information with respect to the number of Registrable
Securities being sold, the purchase price being paid therefor and any other
terms of the offering of the Registrable Securities; (ii) make all required
filings of such prospectus supplement or post-effective amendment as soon as
notified of the matters to be incorporated in such prospectus supplement or
post-effective amendment; and (iii) supplement or make amendments to any
registration statement.

                  k. The Company shall use its reasonable best efforts to cause
the Registrable Securities covered by the any registration statement to be
registered with or approved by such other governmental agencies or authorities
as may be necessary to consummate the disposition of such Registrable
Securities.

                                       4
<PAGE>

                  l. Within one (1) Trading Day after any registration statement
which includes the Registrable Securities is ordered effective by the SEC, the
Company shall deliver, and shall cause legal counsel for the Company to deliver,
to the transfer agent for such Registrable Securities (with copies to the
Investor) confirmation that such registration statement has been declared
effective by the SEC in the form attached hereto as Exhibit A.

                  m. The Company shall take all other reasonable actions
necessary to expedite and facilitate disposition by the Investor of Registrable
Securities pursuant to any registration statement.

         4.       OBLIGATIONS OF THE INVESTOR.

                  a. The Company shall notify the Investor in writing of the
information the Company reasonably requires from the Investor in connection with
any registration statement hereunder. The Investor shall furnish to the Company
such information regarding itself, the Registrable Securities held by it and the
intended method of disposition of the Registrable Securities held by it as shall
be reasonably required to effect the registration of such Registrable Securities
and shall execute such documents in connection with such registration as the
Company may reasonably request.

                  b. The Investor agrees to cooperate with the Company as
reasonably requested by the Company in connection with the preparation and
filing of any registration statement hereunder.

                  c. The Investor agrees that, upon receipt of any notice from
the Company of the happening of any event or existence of facts of the kind
described in Section 3(f) or the first sentence of 3(e), the Investor will
immediately discontinue disposition of Registrable Securities pursuant to any
registration statement(s) covering such Registrable Securities until the
Investor's receipt of the copies of the supplemented or amended prospectus
contemplated by Section 3(f) or the first sentence of 3(e). Notwithstanding
anything to the contrary, the Company shall cause its transfer agent to promptly
deliver shares of Common Stock without any restrictive legend in accordance with
the terms of the Purchase Agreement in connection with any sale of Registrable
Securities with respect to which an Investor has entered into a contract for
sale prior to the Investor's receipt of a notice from the Company of the
happening of any event of the kind described in Section 3(f) or the first
sentence of 3(e) and for which the Investor has not yet settled.

         5.       EXPENSES OF REGISTRATION.

                  All reasonable expenses, other than sales or brokerage
commissions, incurred in connection with registrations, filings or
qualifications pursuant to Sections 2 and 3, including, without limitation, all
registration, listing and qualifications fees, printers and accounting fees, and
fees and disbursements of counsel for the Company, shall be paid by the Company.

         6.       INDEMNIFICATION.

                  a. To the fullest extent permitted by law, the Company will,
and hereby does, indemnify, hold harmless and defend the Investor, each Person,
if any, who controls the Investor, the members, the directors, officers,
partners, employees, agents, representatives of the Investor and each Person, if
any, who controls the Investor within the meaning of the 1933 Act or the
Securities Exchange Act of 1934, as amended (the "1934 Act") (each, an
"Indemnified Person"), against any losses, claims, damages, liabilities,
judgments, fines, penalties, charges, costs, attorneys' fees, amounts paid in
settlement or expenses, joint or several, (collectively, "Claims") incurred in
investigating, preparing or

                                       5
<PAGE>

defending any action, claim, suit, inquiry, proceeding, investigation or appeal
taken from the foregoing by or before any court or governmental, administrative
or other regulatory agency, body or the SEC, whether pending or threatened,
whether or not an indemnified party is or may be a party thereto ("Indemnified
Damages"), to which any of them may become subject insofar as such Claims (or
actions or proceedings, whether commenced or threatened, in respect thereof)
arise out of or are based upon: (i) any untrue statement or alleged untrue
statement of a material fact in the Registration Statement, any New Registration
Statement or any post-effective amendment thereto or in any filing made in
connection with the qualification of the offering under the securities or other
"blue sky" laws of any jurisdiction in which Registrable Securities are offered
("Blue Sky Filing"), or the omission or alleged omission to state a material
fact required to be stated therein or necessary to make the statements therein
not misleading, (ii) any untrue statement or alleged untrue statement of a
material fact contained in any preliminary prospectus if used prior to the
effective date of such registration statement, or contained in the final
prospectus (as amended or supplemented, if the Company files any amendment
thereof or supplement thereto with the SEC) or the omission or alleged omission
to state therein any material fact necessary to make the statements made
therein, in light of the circumstances under which the statements therein were
made, not misleading, (iii) any violation or alleged violation by the Company of
the 1933 Act, the 1934 Act, any other law, including, without limitation, any
state securities law, or any rule or regulation thereunder relating to the offer
or sale of the Registrable Securities pursuant to the Registration Statement or
any New Registration Statement or (iv) any material violation by the Company of
this Agreement (the matters in the foregoing clauses (i) through (iv) being,
collectively, "Violations"). The Company shall reimburse each Indemnified Person
promptly as such expenses are incurred and are due and payable, for any legal
fees or other reasonable expenses incurred by them in connection with
investigating or defending any such Claim. Notwithstanding anything to the
contrary contained herein, the indemnification agreement contained in this
Section 6(a): (i) shall not apply to a Claim by an Indemnified Person arising
out of or based upon a Violation which occurs in reliance upon and in conformity
with information furnished in writing to the Company by such Indemnified Person
expressly for use in connection with the preparation of the Registration
Statement, any New Registration Statement or any such amendment thereof or
supplement thereto, if such prospectus was timely made available by the Company
pursuant to Section 3(c) or Section 3(e); (ii) with respect to any preliminary
prospectus, shall not inure to the benefit of any such person from whom the
person asserting any such Claim purchased the Registrable Securities that are
the subject thereof (or to the benefit of any person controlling such person) if
the untrue statement or omission of material fact contained in the preliminary
prospectus was corrected in the prospectus, as then amended or supplemented, if
such prospectus was timely made available by the Company pursuant to Section
3(c) or Section 3(e), and the Indemnified Person was promptly advised in writing
not to use the incorrect prospectus prior to the use giving rise to a violation
and such Indemnified Person, notwithstanding such advice, used it; (iii) shall
not be available to the extent such Claim is based on a failure of the Investor
to deliver or to cause to be delivered the prospectus made available by the
Company, if such prospectus was timely made available by the Company pursuant to
Section 3(c) or Section 3(e); and (iv) shall not apply to amounts paid in
settlement of any Claim if such settlement is effected without the prior written
consent of the Company, which consent shall not be unreasonably withheld. Such
indemnity shall remain in full force and effect regardless of any investigation
made by or on behalf of the Indemnified Person and shall survive the transfer of
the Registrable Securities by the Investor pursuant to Section 9.

                  b. In connection with the Registration Statement or any New
Registration Statement, the Investor agrees to severally and not jointly
indemnify, hold harmless and defend, to the same extent and in the same manner
as is set forth in Section 6(a), the Company, each of its directors, each of its
officers who signs the Registration Statement or any New Registration Statement,
each Person, if any, who controls the Company within the meaning of the 1933 Act
or the 1934 Act

                                       6
<PAGE>

(collectively and together with an Indemnified Person, an "Indemnified Party"),
against any Claim or Indemnified Damages to which any of them may become
subject, under the 1933 Act, the 1934 Act or otherwise, insofar as such Claim or
Indemnified Damages arise out of or are based upon any Violation, in each case
to the extent, and only to the extent, that such Violation occurs in reliance
upon and in conformity with written information furnished to the Company by the
Investor expressly for use in connection with such registration statement; and,
subject to Section 6(d), the Investor will reimburse any legal or other expenses
reasonably incurred by them in connection with investigating or defending any
such Claim; provided, however, that the indemnity agreement contained in this
Section 6(b) and the agreement with respect to contribution contained in Section
7 shall not apply to amounts paid in settlement of any Claim if such settlement
is effected without the prior written consent of the Investor, which consent
shall not be unreasonably withheld; provided, further, however, that the
Investor shall be liable under this Section 6(b) for only that amount of a Claim
or Indemnified Damages as does not exceed the net proceeds to the Investor as a
result of the sale of Registrable Securities pursuant to such registration
statement. Such indemnity shall remain in full force and effect regardless of
any investigation made by or on behalf of such Indemnified Party and shall
survive the transfer of the Registrable Securities by the Investor pursuant to
Section 9.

                  c. Promptly after receipt by an Indemnified Person or
Indemnified Party under this Section 6 of notice of the commencement of any
action or proceeding (including any governmental action or proceeding) involving
a Claim, such Indemnified Person or Indemnified Party shall, if a Claim in
respect thereof is to be made against any indemnifying party under this Section
6, deliver to the indemnifying party a written notice of the commencement
thereof, and the indemnifying party shall have the right to participate in, and,
to the extent the indemnifying party so desires, jointly with any other
indemnifying party similarly noticed, to assume control of the defense thereof
with counsel mutually satisfactory to the indemnifying party and the Indemnified
Person or the Indemnified Party, as the case may be; provided, however, that an
Indemnified Person or Indemnified Party shall have the right to retain its own
counsel with the fees and expenses to be paid by the indemnifying party, if, in
the reasonable opinion of counsel retained by the indemnifying party, the
representation by such counsel of the Indemnified Person or Indemnified Party
and the indemnifying party would be inappropriate due to actual or potential
differing interests between such Indemnified Person or Indemnified Party and any
other party represented by such counsel in such proceeding. The Indemnified
Party or Indemnified Person shall cooperate fully with the indemnifying party in
connection with any negotiation or defense of any such action or claim by the
indemnifying party and shall furnish to the indemnifying party all information
reasonably available to the Indemnified Party or Indemnified Person which
relates to such action or claim. The indemnifying party shall keep the
Indemnified Party or Indemnified Person fully apprised at all times as to the
status of the defense or any settlement negotiations with respect thereto. No
indemnifying party shall be liable for any settlement of any action, claim or
proceeding effected without its written consent, provided, however, that the
indemnifying party shall not unreasonably withhold, delay or condition its
consent. No indemnifying party shall, without the consent of the Indemnified
Party or Indemnified Person, consent to entry of any judgment or enter into any
settlement or other compromise which does not include as an unconditional term
thereof the giving by the claimant or plaintiff to such Indemnified Party or
Indemnified Person of a release from all liability in respect to such claim or
litigation. Following indemnification as provided for hereunder, the
indemnifying party shall be subrogated to all rights of the Indemnified Party or
Indemnified Person with respect to all third parties, firms or corporations
relating to the matter for which indemnification has been made. The failure to
deliver written notice to the indemnifying party within a reasonable time of the
commencement of any such action shall not relieve such indemnifying party of any
liability to the Indemnified Person or Indemnified Party under this Section 6,
except to the extent that the indemnifying party is prejudiced in its ability to
defend such action.

                                       7
<PAGE>

                  d. The indemnification required by this Section 6 shall be
made by periodic payments of the amount thereof during the course of the
investigation or defense, as and when bills are received or Indemnified Damages
are incurred.

                  e. The indemnity agreements contained herein shall be in
addition to (i) any cause of action or similar right of the Indemnified Party or
Indemnified Person against the indemnifying party or others, and (ii) any
liabilities the indemnifying party may be subject to pursuant to the law.

         7.       CONTRIBUTION.

                  To the extent any indemnification by an indemnifying party is
prohibited or limited by law, the indemnifying party agrees to make the maximum
contribution with respect to any amounts for which it would otherwise be liable
under Section 6 to the fullest extent permitted by law; provided, however, that:
(i) no seller of Registrable Securities guilty of fraudulent misrepresentation
(within the meaning of Section 11(f) of the 1933 Act) shall be entitled to
contribution from any seller of Registrable Securities who was not guilty of
fraudulent misrepresentation; and (ii) contribution by any seller of Registrable
Securities shall be limited in amount to the net amount of proceeds received by
such seller from the sale of such Registrable Securities.

         8.       REPORTS AND DISCLOSURE UNDER THE SECURITIES ACTS.

                  With a view to making available to the Investor the benefits
of Rule 144 promulgated under the 1933 Act or any other similar rule or
regulation of the SEC that may at any time permit the Investor to sell
securities of the Company to the public without registration ("Rule 144"), the
Company agrees to:

                  a. make and keep public information available, as those terms
are understood and defined in Rule 144;

                  b. file with the SEC in a timely manner all reports and other
documents required of the Company under the 1933 Act and the 1934 Act so long as
the Company remains subject to such requirements and the filing of such reports
and other documents is required for the applicable provisions of Rule 144; and

                  c. furnish to the Investor so long as the Investor owns
Registrable Securities, promptly upon request, (i) a written statement by the
Company that it has complied with the reporting and or disclosure provisions of
Rule 144, the 1933 Act and the 1934 Act, (ii) a copy of the most recent annual
or quarterly report of the Company and such other reports and documents so filed
by the Company, and (iii) such other information as may be reasonably requested
to permit the Investor to sell such securities pursuant to Rule 144 without
registration.

         9.       ASSIGNMENT OF REGISTRATION RIGHTS.

                  The Company shall not assign this Agreement or any rights or
obligations hereunder without the prior written consent of the Investor,
including by merger or consolidation. The Investor may not assign its rights
under this Agreement without the written consent of the Company, other than to
an affiliate of the Investor controlled by Steven G. Martin or Joshua B.
Scheinfeld.

                                       8
<PAGE>

         10.      AMENDMENT OF REGISTRATION RIGHTS.

                  Provisions of this Agreement may be amended and the observance
thereof may be waived (either generally or in a particular instance and either
retroactively or prospectively), only with the written consent of the Company
and the Investor.

         11.      MISCELLANEOUS.

                  a. A Person is deemed to be a holder of Registrable Securities
whenever such Person owns or is deemed to own of record such Registrable
Securities. If the Company receives conflicting instructions, notices or
elections from two or more Persons with respect to the same Registrable
Securities, the Company shall act upon the basis of instructions, notice or
election received from the registered owner of such Registrable Securities.

                  b. Any notices, consents, waivers or other communications
required or permitted to be given under the terms of this Agreement must be in
writing and will be deemed to have been delivered: (i) upon receipt, when
delivered personally; (ii) upon receipt, when sent by facsimile (provided
confirmation of transmission is mechanically or electronically generated and
kept on file by the sending party); or (iii) one (1) Trading Day after deposit
with a nationally recognized overnight delivery service, in each case properly
addressed to the party to receive the same. The addresses and facsimile numbers
for such communications shall be:

         If to the Company:
                  Atlantic Technology Ventures, Inc.
                  150 Broadway, Suite 1009
                  New York, NY 10038
                  Telephone:        212-267-2503
                  Facsimile:        212-267-2159
                  Attention:        Frederic P. Zotos

         With a copy to:
                  Kramer Levin Naftalis & Frankel  LLP
                  919 Third Avenue
                  New York, NY  10022
                  Telephone:        212-715-9100
                  Facsimile:        212-715-8000
                  Attention:        Ezra G. Levin, Esq.

         If to the Investor:
                  Fusion Capital Fund II, LLC
                  222 Merchandise Mart Plaza, Suite 9-112
                  Chicago, IL 60654
                  Telephone:        312-644-6644
                  Facsimile:        312-644-6244
                  Attention:        Steven G.  Martin

or at such other address and/or facsimile number and/or to the attention of such
other person as the recipient party has specified by written notice given to
each other party three (3) Trading Days prior to the effectiveness of such
change. Written confirmation of receipt (A) given by the recipient of such
notice, consent, waiver or other communication, (B) mechanically or
electronically generated by the

                                       9
<PAGE>

sender's facsimile machine containing the time, date, recipient facsimile number
and an image of the first page of such transmission or (C) provided by a
nationally recognized overnight delivery service, shall be rebuttable evidence
of personal service, receipt by facsimile or receipt from a nationally
recognized overnight delivery service in accordance with clause (i), (ii) or
(iii) above, respectively.

                  c. Failure of any party to exercise any right or remedy under
this Agreement or otherwise, or delay by a party in exercising such right or
remedy, shall not operate as a waiver thereof.

                  d. The corporate laws of the State of Delaware shall govern
all issues concerning the relative rights of the Company and its stockholders.
All other questions concerning the construction, validity, enforcement and
interpretation of this Agreement shall be governed by the internal laws of the
State of Illinois, without giving effect to any choice of law or conflict of law
provision or rule (whether of the State of Illinois or any other jurisdictions)
that would cause the application of the laws of any jurisdictions other than the
State of Illinois. Each party hereby irrevocably submits to the exclusive
jurisdiction of the state and federal courts sitting the City of Chicago, for
the adjudication of any dispute hereunder or in connection herewith or with any
transaction contemplated hereby or discussed herein, and hereby irrevocably
waives, and agrees not to assert in any suit, action or proceeding, any claim
that it is not personally subject to the jurisdiction of any such court, that
such suit, action or proceeding is brought in an inconvenient forum or that the
venue of such suit, action or proceeding is improper. Each party hereby
irrevocably waives personal service of process and consents to process being
served in any such suit, action or proceeding by mailing a copy thereof to such
party at the address for such notices to it under this Agreement and agrees that
such service shall constitute good and sufficient service of process and notice
thereof. Nothing contained herein shall be deemed to limit in any way any right
to serve process in any manner permitted by law. If any provision of this
Agreement shall be invalid or unenforceable in any jurisdiction, such invalidity
or unenforceability shall not affect the validity or enforceability of the
remainder of this Agreement in that jurisdiction or the validity or
enforceability of any provision of this Agreement in any other jurisdiction.
EACH PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO
REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN
CONNECTION HEREWITH OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION
CONTEMPLATED HEREBY.

                  e. This Agreement, and the Purchase Agreement constitute the
entire agreement among the parties hereto with respect to the subject matter
hereof and thereof. There are no restrictions, promises, warranties or
undertakings, other than those set forth or referred to herein and therein. This
Agreement and the Purchase Agreement supersede all prior agreements and
understandings among the parties hereto with respect to the subject matter
hereof and thereof.

                  f. Subject to the requirements of Section 9, this Agreement
shall inure to the benefit of and be binding upon the permitted successors and
assigns of each of the parties hereto.

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

                  h. This Agreement may be executed in identical counterparts,
each of which shall be deemed an original but all of which shall constitute one
and the same agreement. This Agreement, once executed by a party, may be
delivered to the other party hereto by facsimile transmission of a copy of this
Agreement bearing the signature of the party so delivering this Agreement.

                                       10
<PAGE>

                  i. Each party shall do and perform, or cause to be done and
performed, all such further acts and things, and shall execute and deliver all
such other agreements, certificates, instruments and documents, as the other
party may reasonably request in order to carry out the intent and accomplish the
purposes of this Agreement and the consummation of the transactions contemplated
hereby.

                  j. The language used in this Agreement will be deemed to be
the language chosen by the parties to express their mutual intent and no rules
of strict construction will be applied against any party.

                  k. This Agreement is intended for the benefit of the parties
hereto and their respective permitted successors and assigns, and is not for the
benefit of, nor may any provision hereof be enforced by, any other Person.

                                   * * * * * *

                                       11
<PAGE>

         IN WITNESS WHEREOF, the parties have caused this Registration Rights
Agreement to be duly executed as of day and year first above written.

                                  THE COMPANY:

                                  ATLANTIC TECHNOLOGY VENTURES, INC.

                                  By:______________________
                                  Name:
                                  Title:

                                  BUYER:

                                  FUSION CAPITAL FUND II, LLC
                                  BY: FUSION CAPITAL PARTNERS, LLC
                                  BY: SGM HOLDINGS CORP.

                                  By:_______________________
                                  Name: Steven G. Martin
                                  Title: President

<PAGE>

                                    EXHIBIT A

                        TO REGISTRATION RIGHTS AGREEMENT

                         FORM OF NOTICE OF EFFECTIVENESS
                            OF REGISTRATION STATEMENT

[Date]

[TRANSFER AGENT]
________________________

________________________

Re: [__________]

Ladies and Gentlemen:

          We are counsel to ATLANTIC TECHNOLOGY VENTURES, INC., a Delaware
corporation (the "Company"), and have represented the Company in connection with
that certain Common Stock Purchase Agreement (the "Purchase Agreement") entered
into by and among the Company and Fusion Capital Fund II, LLC (the "Holder")
pursuant to which the Company has agreed to issue to the Holder up to Six
Million Dollars ($6,000,000) of the Company's Common Stock, par value $0.001 per
share (the "Common Stock") (the "Purchase Shares"), in accordance with the terms
of the Purchase Agreement, and (ii) the Company issued to the Holder _______
shares of Common Stock (the "Commitment Shares"). Pursuant to the Purchase
Agreement, the Company also has entered into a Registration Rights Agreement
with the Holder (the "Registration Rights Agreement") pursuant to which the
Company agreed, among other things, to register the Purchase Shares and the
Commitment Shares under the Securities Act of 1933, as amended (the "1933 Act").
In connection with the Company's obligations under the Purchase Agreement and
the Registration Rights Agreement, on _____________, the Company filed a
Registration Statement (File No. 333-_____________) (the "Registration
Statement") with the Securities and Exchange Commission (the "SEC") relating to
the sale of the Purchase Shares and the Commitment Shares.

          In connection with the foregoing, we advise you that a member of the
SEC's staff has advised us by telephone that the SEC has entered an order
declaring the Registration Statement effective under the 1933 Act at [ENTER TIME
OF EFFECTIVENESS] on [ENTER DATE OF EFFECTIVENESS] and we have no knowledge,
after telephonic inquiry of a member of the SEC's staff, that any stop order
suspending its effectiveness has been issued or that any proceedings for that
purpose are pending before, or threatened by, the SEC and the Purchase Shares
and the Commitment Shares are available for sale under the 1933 Act pursuant to
the Registration Statement.

          The Buyer has confirmed it shall comply with all securities laws and
regulations applicable to it including applicable prospectus delivery
requirements upon sale of the Commitment Shares or the Purchase Shares.

                                                     Very truly yours,
                                                     [Company Counsel]
                                                     By:____________________
cc:       Fusion Capital Fund II, LLC

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00027-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00027-of-00352.parquet"}]]