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EXHIBIT 10.36

                           COMMERCIAL LEASE AGREEMENT

THIS LEASE is made this 1st day of May, 2003, by and between Ekelund Properties,
LLC (hereinafter called "Lessor") and Genius Products, Inc. (hereinafter called
"Lessee").

                                   WITNESSETH:

1.       PREMISES:
         Lessor does hereby lease to Lessee that certain portion of the building
         known as 270 Water Street, Excelsior, Minnesota presently occupied by
         Lessee ("Premises").

2.       TERM:
         Lessee is hereby entitled to lease the Premises on a one-year basis
         until this Lease is terminated by either party. Lessor and Lessee shall
         each be entitled to terminate this Lease at any time, for any or no
         reason, by providing written notice of the termination to the other
         party at least 60 days prior to the termination date.

3.       RENT, DEPOSIT AND LATE PAYMENT:
         Lessee covenants and agrees to pay Lessor, at the offices of Lessor, or
         to such other party or at such other place as Lessor may hereafter
         designate in writing, a base monthly rent in the amount of Eight
         Hundred dollars ($800.00). The base monthly rent for each month of the
         Lease term shall be paid in advance on the first day of each month.

         Lessee acknowledges that late payment by Lessee to Lessor of any rent
         or other sum due hereunder will cause Lessor to incur costs not
         contemplated by this Lease, the exact amount of which would be
         extremely difficult to ascertain. Such costs include, but are not
         limited to, processing and accounting charges, and late charges imposed
         on Lessor by the terms of any mortgage or trust deed covering the
         Premises. Therefore, in the event Lessee should fail to pay any
         installment of rent or any other sum due hereunder after such amount is
         due, Lessee shall pay to Lessor on the first day of each month, in
         addition to rent and any other sum due hereunder, a late charge equal
         to five percent (5%) of all unpaid amounts due and owing. A fifty
         dollar ($50.00) charge will also be paid by Lessee to the Lessor for
         each returned check.

                                                                   Lessor /s/ JE
                                                                   Lessee /s/ MM



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4.       COMMON AREAS:
         If the Premises is part of a building occupied by other tenants, Lessee
         agrees to conform to Lessor's rules and regulations pertaining to the
         parts of the building that are in common use by other tenants.

5.       REPAIRS AND MAINTENANCE:
         Lessee shall, at its own expense and at all times, keep the Premises
         neat, clean and in a sanitary condition, and keep and use the Premises
         in accordance with applicable laws, ordinances, rules, regulations and
         requirements of any governmental authorities. Lessee shall permit no
         waste, damage or injury to the Premises.

         Except for the roof, exterior walls and foundations, which are the
         responsibility of the Lessor, Lessee shall make such repairs as
         necessary to maintain the Premises in as good condition as it is now,
         reasonable use and wear and damage by fire and other casualty excepted.
         Lessee shall make all repairs to the Premises reasonably requested by
         the Lessor.

6.       ACCIDENTS AND LIABILITY:
         Lessor and its agents shall not be liable for any injury or damage to
         person or property sustained, by Lessee or others, in and about the
         Premises. Lessee agrees to defend and hold Lessor and its agents
         harmless from any claim, action, award, settlement and/or judgment for
         damages to property or injury to person suffered or alleged to be
         suffered on the Premises by any person, firm or corporation.

7.       USE:
         Lessee shall use the Premises for its general business operations, and
         for no other purposes without written consent of Lessor. In the event
         Lessee's use of the Premises increases Lessor's fire or other liability
         insurance rates on the building of which the Premises is a part, Lessee
         agrees to pay for such increase.

8.       LIENS AND SOLVENCY:
         Lessee shall keep the Premises free from any liens arising out of any
         work performed for, materials furnished to or obligations incurred by
         Lessee and shall defend and hold Lessor harmless against the same. In
         the event Lessee becomes insolvent or bankrupt, or if a receiver,
         assignee or other liquidating officer is appointed for the business of
         Lessee, Lessor may immediately terminate this Lease at its option.

                                                                   Lessor /s/ JE
                                                                   Lessee /s/ MM
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9.       SUBLETTING OR ASSIGNMENT:
         Lessee shall not sublet the whole or any part of the Premises, nor
         assign this Lease, without the written consent of Lessor. This Lease
         shall not be assignable by operation of law.

10.      ACCESS:
         Lessor shall have the right to enter the Premises at all reasonable
         times for the purpose of inspection or of making repairs, additions or
         alterations and shall have the right to enter and show the Premises to
         prospective tenants during the sixty (60) days prior to the termination
         of the Lease.

         Lessor shall at all times have and retain a key with which to unlock
         all of the doors in, upon and about the Premises, excluding Lessee's
         vaults, safes and files, and Lessor shall have the right to use any and
         all means which Lessor may deem proper to open said doors in an
         emergency in order to obtain entry to the Premises without liability to
         Lessee, and any entry to the Premises obtained by Lessor by such means,
         or otherwise, shall not under any circumstances be construed or deemed
         to be a forceable or unlawful entry, or a detainer of the Premises, or
         an eviction of Lessee from the Premises or any portion thereof.

11.      DAMAGE OR DESTRUCTION:
         In the event the Premises is rendered untenantable in whole or in part
         by fire, elements, or other casualty, Lessor may elect, at its option,
         not to restore or rebuild the Premises and shall so notify Lessee, in
         which event Lessee shall vacate the Premises and this Lease shall be
         immediately terminated; or in the alternative, Lessor shall notify
         Lessee, within thirty (30) days after such casualty, that Lessor will
         undertake to restore or rebuild the Premises, in which event the Lease
         may be immediately terminated at Lessee's option by written notice to
         Lessor within ten (10) days after receiving such notice from the
         Lessor. During the period of untenantability, Lessee's rent shall abate
         in the same ratio as the portion of the Premises rendered untenantable
         bears to the whole of the Premises.

12.      SIGNS:
         All signs or symbols placed by Lessee upon the windows and doors of the
         Premises, or upon any exterior part of the Premises, shall be subject
         to Lessor's prior written consent. Lessor may demand the removal of
         signs which are not so approved, and Lessee's failure to comply with
         said request within five (5) days of Lessor's demand will constitute a
         breach of this paragraph and will entitle Lessor to immediately
         terminate this Lease, or in lieu thereof, to cause the sign to be
         removed and the Premises repaired at the sole expense of the Lessee. At
         the termination of this Lease, Lessee will remove all signs placed by
         it upon the Premises, and will repair at its sole expense any damage
         caused by such removal.

                                                                   Lessor /s/ JE
                                                                   Lessee /s/ MM
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13.      ALTERATIONS:
         After prior written consent of Lessor, Lessee may make alterations,
         additions and improvements in and to the Premises, at its sole expense.
         As a part of Lessor's consent, Lessor may require Lessee to store
         during the term of this Lease, at Lessee's sole expense, any part of
         the Premises that is removed by Lessee in order to make any alteration,
         addition or improvement. In the performance of such work, Lessee agrees
         to comply with all laws, ordinances, rules and regulations of any
         proper public authority, and to defend and hold Lessor harmless from
         damage, loss or expense related to or arising from such work. Upon
         Lessor's request, or with Lessor's written consent, Lessee shall remove
         such alterations, additions and improvements and restore the Premises
         to its original condition not later than the termination date, at
         Lessee's sole expense. Any alterations, additions and improvements not
         so removed shall remain in and be surrendered with the Premises as a
         part thereof. Trade fixtures may be removed at Lessee's sole expense,
         provided that Lessee shall restore the Premises to its original
         condition or pay for any damage caused by such removal.

14.      CONDEMNATION:
         In the event a substantial part of the Premises is taken by the right
         of eminent domain, or is purchased by the condemnor in lieu thereof, so
         as to render the remaining Premises untenantable, then this Lease shall
         be terminated as of the time of taking at the option of either party.
         In the event of a partial taking which does not render the whole
         Premises untenantable, Lessee's rent shall be reduced in direct
         proportion to the taking. Lessee shall have no claim to any portion of
         the compensation for the taking of the land or building.

15.      TAXES, INSURANCE, MAINTENANCE:

16.      DEFAULT AND RE-ENTRY:
         If Lessee shall fail to keep and perform any of the covenants and
         agreements herein contained and such failure continues for thirty (30)
         days after Lessee receives written notice from Lessor, unless
         appropriate action has been taken by Lessee in good faith to cure such
         failure, Lessor may immediately terminate this Lease and re-enter the
         Premises.

17.      REMOVAL OF PROPERTY:
         In the event Lessor lawfully re-enters the Premises as provided herein,
         Lessor shall have the right, but not the obligation, to remove all
         personal property located therein and to place such property in storage
         at the sole expense and risk of Lessee.

                                                                   Lessor /s/ JE
                                                                   Lessee /s/ MM
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18.      COST AND ATTORNEYS' FEES:
         If, by reason of any default or breach on the part of either party in
         the performance of any of the provisions of this Lease, a legal action
         is instituted, the losing party agrees to pay all reasonable costs and
         attorneys' fees of the prevailing party in connection therewith. It is
         agreed that the venue of any legal action brought under the terms of
         this Lease shall be in the county in which the Premises is situated.

19.      SUBORDINATION:
         Lessee agrees that this Lease shall be subordinated to any mortgages or
         deeds of trust placed on the land on which the Premises is situated,
         provided that in the event of foreclosure, if Lessee is not then in
         default and agrees to attorn to the mortgagee or the beneficiary under
         any deed of trust, such mortgagee or beneficiary shall recognize
         Lessee's right of possession under the terms of this Lease.

20.      NO WAIVER OF COVENANTS:
         Any waiver by either party of any breach of this Lease by the other
         party shall not be considered a waiver of any future similar breach.
         This Lease contains all the agreements between the parties, and there
         shall be no modification of this Lease or the agreements contained
         herein except by written instrument signed by both parties.

21.      SURRENDER OF PREMISES:
         Lessee agrees, upon termination of this Lease, to peacefully quit and
         surrender the Premises without notice, to leave the Premises neat and
         clean and to deliver all keys to the Premises to Lessor.

22.      HOLDING OVER:
         If Lessee shall hold over after the termination of this Lease by
         Lessor, Lessee shall remain bound by all the covenants and agreements
         herein, with increased rent to be determined by Lessor.

23.      BINDING ON HEIRS, SUCCESSORS AND ASSIGNS:
         The covenants and agreements of this Lease shall be binding upon the
         heirs, executors, administrators, successors and assigns of both
         parties, except as hereinabove provided.

                                                                   Lessor /s/ JE
                                                                   Lessee /s/ MM

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24.      NOTICE:
         Any notice required to be given by either party to the other party
         shall be personally delivered or deposited in the United States mail,
         postage prepaid, addressed to the Lessor at:
                           Ekelund Properties, LLC
                           Attn: Julie Ekelund
                           5135 Meadville Street
                           Greenwood, MN  55331

         or to Lessee at:

                           Genius Products, Inc.
                           Attn:  Michael Meader
                           11250 El Camino Real, Suite 100
                           San Diego, CA 92130

         or at such other address as either party may designate to the other
         party in writing from time to time.

25.      PARKING:
         Parking in the back of 274 Water Street is restricted to two-hour
         parking. For long-term parking (more than two-hour) Lessee is required
         to park across the parking lot, near the library.

26.      TIME IS OF THE ESSENCE FOR THIS LEASE.

IN WITNESS WHEREOF, the parties hereto have executed this Lease effective as of
the date first above written.

LESSOR                                         LESSEE

Ekelund Properties, LLC                        GENIUS PRODUCTS, INC.

/s/ Julie Ekelund                              /s/ Michael Meader
-------------------------------------          ---------------------------------
By: Julie Ekelund, Authorized Officer          By:  Michael Meader, President

                                                                   Lessor /s/ JE
                                                                   Lessee /s/ MM

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