Document:

EXHIBIT 10.4

REGISTRATION RIGHTS AGREEMENT 

           This Registration Rights Agreement (this
"Agreement") is made and entered into as of April 28, 2004, by and between Magic Lantern
Group, Inc., a New York corporation (the "Company"), and Laurus Master Fund, Ltd. (the
"Purchaser").

           This Agreement is made pursuant to the
Securities Purchase Agreement, dated as of the date hereof, by and between the Purchaser
and the Company (the "Securities Purchase Agreement"), and pursuant to the Note and the
Warrants referred to therein.

           The Company and the Purchaser hereby agree as
follows:

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

                         "Commission" means the
Securities and Exchange Commission.

                         "Common Stock" means
shares of the Company's common stock, par value $0.01 per share.

                         "Effectiveness Date" means
the 105th day following the date hereof.

                         "Effectiveness Period"
shall have the meaning set forth in Section 2(a).

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

                         "Filing Date" means, with
respect to the Registration Statement required to be filed hereunder, a date no later than
thirty (30) days following the date hereof and with respect to shares of Common Stock
issuable to the Holder as a result of adjustments to the Fixed Conversion Price made
pursuant to Section 3.4 of the Secured Convertible Term Note or Section 4 of the Warrant
or otherwise, thirty (30) days after the occurrence such event or the date of the
adjustment of the Fixed Conversion Price.

                         "Holder" or "Holders"
means the Purchaser or any of its affiliates or transferees to the extent any of them hold
Registrable Securities.

                         "Indemnified Party" shall
have the meaning set forth in Section 5(c).

                         "Indemnifying Party" shall
have the meaning set forth in Section 5(c).

                         "Note" has the meaning set
forth in the Securities Purchase Agreement.

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

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

                         "Registrable Securities"
means the shares of Common Stock issued upon the conversion of the Note and issuable upon
exercise of the Warrants. 

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

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

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

                         "Rule 424" means Rule 424
promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended
from time to time, or any similar rule or regulation hereafter adopted by the Commission
having substantially the same effect as such Rule. 

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

                         "Securities Purchase Agreement"
means the agreement between the parties hereto calling for the issuance by the Company of
$1,500,000 convertible Note plus Warrants.

                         "Trading Market" means any
of the NASD OTC Bulletin Board, NASDAQ SmallCap Market, the Nasdaq National Market, the
American Stock Exchange or the New York Stock Exchange. 

                         "Warrants" means the
Common Stock purchase warrants issued pursuant to the Securities Purchase Agreement.

           2.          Registration.

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

                        (b)     If: (i) the Registration
Statement is not filed on or prior to the Filing Date; (ii) the Registration Statement is
not declared effective by the Commission by the Effectiveness Date; (iii) after the
Registration Statement is filed with and declared effective by the Commission, the
Registration Statement ceases to be effective (by suspension or otherwise) as to all
Registrable Securities to which it is required to relate at any time prior to the
expiration of the Effectiveness Period (without being succeeded immediately by an
additional registration statement filed and declared effective) for a period of time which
shall exceed 30 days in the aggregate per year or more than 20 consecutive calendar days
(defined as a period of 365 days commencing on the date the Registration Statement is
declared effective); or (iv) the Common Stock is not listed or quoted, or is suspended
from trading on any Trading Market for a period of five (5) consecutive Trading Days
(provided the Company shall not have been able to cure such trading suspension within 30
days of the notice thereof or list the Common Stock on another Trading Market); (any such
failure or breach being referred to as an "Event," and for purposes of clause (i) or (ii)
the date on which such Event occurs, or for purposes of clause (iii) the date which such
30 day or 20 consecutive day period (as the case may be) is exceeded, or for purposes of
clause (iv) the date on which such five (5) Trading Day period is exceeded, being referred
to as "Event Date"), then until the applicable Event is cured, the Company shall pay to
each Holder an amount in cash, as liquidated damages and not as a penalty, equal to 1.50 %
for each thirty (30) day period (prorated for partial periods) on a daily basis of the
original principal amount of the Note. While such Event continues, such liquidated damages
shall be paid not less often than each thirty (30) days. Any unpaid liquidated damages as
of the date when an Event has been cured by the Company shall be paid within three (3)
days following the date on which such Event has been cured by the Company.

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

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

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

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

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

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

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

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

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

           4.          Registration Expenses. All
expenses relating to the Company's compliance with Sections 2 and 3 hereof, including,
without limitation, all registration and filing fees, printing expenses, fees and
disbursements of counsel and independent public accountants for the Company, fees and
expenses (including reasonable counsel fees) incurred in connection with complying with
state securities or "blue sky" laws, fees of the NASD, transfer taxes, fees of transfer
agents and registrars, fees of, and disbursements incurred by, one counsel for the Holders
(to the extent such counsel is required due to Company's failure to meet any of its
obligations hereunder), are called "Registration Expenses". All selling commissions
applicable to the sale of Registrable Securities, including any fees and disbursements of
any special counsel to the Holders beyond those included in Registration Expenses, are
called "Selling Expenses." The Company shall only be responsible for all Registration
Expenses.

           5.          Indemnification.

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

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

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

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

           6.          Representations and Warranties.

                        (a)     The Common Stock of the
Company is registered pursuant to Section 12(b) or 12(g) of the Exchange Act and, except
with respect to certain matters which the Company has disclosed to the Purchaser on
Schedule 4.21 to the Securities Purchase Agreement, the Company has timely filed all proxy
statements, reports, schedules, forms, statements and other documents required to be filed
by it under the Exchange Act. The Company has filed (i) its Annual Report on Form 10-K for
its fiscal year ended December 31, 2003 and (ii) its Quarterly Report on Form 10-Q for the
fiscal periods ended March 30, 2003, June 30, 2003 and September 31, 2003 (collectively,
the "SEC Reports"). Each SEC Report was, at the time of its filing, in substantial
compliance with the requirements of its respective form and none of the SEC Reports, nor
the financial statements (and the notes thereto) included in the SEC Reports, as of their
respective filing dates, contained any untrue statement of a material fact or omitted to
state a material fact required to be stated therein or necessary to make the statements
therein, in light of the circumstances under which they were made, not misleading. The
financial statements of the Company included in the SEC Reports comply as to form in all
material respects with applicable accounting requirements and the published rules and
regulations of the Commission or other applicable rules and regulations with respect
thereto. Such financial statements have been prepared in accordance with generally
accepted accounting principles ("GAAP") applied on a consistent basis during the periods
involved (except (i) as may be otherwise indicated in such financial statements or the
notes thereto or (ii) in the case of unaudited interim statements, to the extent they may
not include footnotes or may be condensed) and fairly present in all material respects the
financial condition, the results of operations and the cash flows of the Company and its
subsidiaries, on a consolidated basis, as of, and for, the periods presented in each such
SEC Report.

                        (b)     The Common Stock is listed
for trading on the American Stock Exchange and satisfies all requirements for the
continuation of such listing. The Company has not received any notice that its Common
Stock will be delisted from the American Stock Exchange (except for prior notices which
have been fully remedied) or that the Common Stock does not meet all requirements for the
continuation of such listing.

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

                        (d)     The Warrants, the Note and
the shares of Common Stock which the Purchaser may acquire pursuant to the Warrants and
the Note are all restricted securities under the Securities Act as of the date of this
Agreement. The Company will not issue any stop transfer order or other order impeding the
sale and delivery of any of the Registrable Securities at such time as such Registrable
Securities are registered for public sale or an exemption from registration is available,
except as required by federal or state securities laws.

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

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

                        (g)     The Company will at all
times have authorized and reserved a sufficient number of shares of Common Stock for the
full conversion of the Note and exercise of the Warrants.

           7.          Miscellaneous.

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

                        (b)     No Piggyback on
Registrations. Except as and to the extent specified in Schedule 7(b) hereto, neither
the Company nor any of its security holders (other than the Holders in such capacity
pursuant hereto) may include securities of the Company in any Registration Statement other
than the Registrable Securities, and the Company shall not after the date hereof enter
into any agreement providing any such right for inclusion of shares in the Registration
Statement to any of its security holders. Except as and to the extent specified in
Schedule 7(b) hereto, the Company has not previously entered into any agreement granting
any registration rights with respect to any of its securities to any Person that have not
been fully satisfied. 

                        (c)     Compliance. Each
Holder covenants and agrees that it will comply with the prospectus delivery requirements
of the Securities Act as applicable to it in connection with sales of Registrable
Securities pursuant to the Registration Statement.

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

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

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

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

	 	If to the Company:	Magic Lantern Group, Inc.
    

    1075 North Service Road West

    Suite 27

    Oakville, Ontario L6M 2G2

    Attention:Robert A. Goddard

    President and CEO

    Facsimile: 
	 	 	 
	 	 	with a copy to:
    Hodgson Russ LLP

    150 King Street West Suite 2039

    Toronto, Ontario M5H 1J9

	 	 	 
	 	 	Attention: Joseph P. Galda
    

    Facsimile: 416-595-5021 
	 		 
	 	If to a Purchaser:	To the address set forth
    under such Purchaser name on the signature pages hereto.
	 		 
	 	If to any other Person
    who is then the registered Holder:	To the address of such
    Holder as it appears in the stock transfer books of the Company

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

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

                        (i)     Execution and
Counterparts. This Agreement may be executed in any number of counterparts, each of
which when so executed shall be deemed to be an original and, all of which taken together
shall constitute one and the same Agreement. In the event that any signature is delivered
by facsimile transmission, such signature shall create a valid binding obligation of the
party executing (or on whose behalf such signature is executed) the same with the same
force and effect as if such facsimile signature were the original thereof.

                        (j)     Governing Law. All
questions concerning the construction, validity, enforcement and interpretation of this
Agreement shall be governed by and construed and enforced in accordance with the internal
laws of the State of New York, without regard to the principles of conflicts of law
thereof. Each party agrees that all Proceedings concerning the interpretations,
enforcement and defense of the transactions contemplated by this Agreement shall be
commenced exclusively in the state and federal courts sitting in the City of New York,
Borough of Manhattan. Each party hereto hereby irrevocably submits to the exclusive
jurisdiction of the state and federal courts sitting in the City of New York, Borough of
Manhattan 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 Proceeding, any claim that it is not personally subject to
the jurisdiction of any such court, that such Proceeding is improper. Each party hereto
hereby irrevocably waives personal service of process and consents to process being served
in any such Proceeding by mailing a copy thereof via registered or certified mail or
overnight delivery (with evidence of delivery) to such party at the address in effect for
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. Each party
hereto hereby irrevocably waives, to the fullest extent permitted by applicable law, any
and all right to trial by jury in any legal proceeding arising out of or relating to this
Agreement or the transactions contemplated hereby. If either party shall commence a
Proceeding to enforce any provisions of a Transaction Document, then the prevailing party
in such Proceeding shall be reimbursed by the other party for its reasonable attorneys
fees and other costs and expenses incurred with the investigation, preparation and
prosecution of such Proceeding. 

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

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

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

[BALANCE OF PAGE INTENTIONALLY LEFT
BLANK;

SIGNATURE PAGE FOLLOWS]

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

	Magic Lantern
    Group, Inc.	 	Laurus Master
    Fund, Ltd.
	 	 	 
	 	 	 
	By:	 	 	By:	 
	Name:	 	 	Name:	 
	Title:	 	 	Title:	 
	 	 	 
	 	 	Address for
    Notices:
	 	 	 
	 	 	825 Third Avenue
    − 14th Floor
	 	 	New York, NY
    10022
	 	 	Attention: David
    Grin
	 	 	Facsimile:
    212-541-4434

 

 

 

EXHIBIT A

[Month __, 2004]

	
    [Continental Stock Transfer

    & Trust Company

    Two Broadway

    New York, NY 10004

    Attn: William Seegraber]	 

	Re:	[Company
    Name]. Registration Statement on Form [S-3]

Ladies and Gentlemen:

        As counsel
to[company name] , a Delaware corporation (the "Company"), we have been requested to
render our opinion to you in connection with the resale by the individuals or entitles
listed on Schedule A attached hereto (the "Selling Stockholders"), of an aggregate of [amount]shares
(the "Shares") of the Company's Common Stock.

           A Registration Statement on
Form [S-3] under the Securities Act of 1933, as amended (the "Act"), with respect to the
resale of the Shares was declared effective by the Securities and Exchange Commission on
[date]. Enclosed is the Prospectus dated [date]. We understand that the Shares are to be
offered and sold in the manner described in the Prospectus.

           Based upon the foregoing, upon
request by the Selling Stockholders at any time while the registration statement remains
effective, it is our opinion that the Shares have been registered for resale under the Act
and new certificates evidencing the Shares upon their transfer or re-registration by the
Selling Stockholders may be issued without restrictive legend. We will advise you if the
registration statement is not available or effective at any point in the future.

Very truly
                        yours,

                         

                        [Company counsel]EXHIBIT 10.5

MAGIC LANTERN GROUP, INC. AND CERTAIN OF ITS SUBSIDIARIES

MASTER SECURITY AGREEMENT

 

 

To:     Laurus Master Fund, Ltd.

     c/o Ironshore Corporate Services, Ltd.

     P.O. Box 1234 G.T.

     Queensgate House

     South Church Street

     Grand Cayman, Cayman Islands

Date: April 28, 2004

To Whom It May Concern:

           1.     To secure the payment of all Obligations (as
hereafter defined), Magic Lantern Group, Inc., a New York corporation (the "Company"),
each of the other undersigned parties (other than Laurus Master Fund, Ltd, "Laurus")) and
each other entity that is required to enter into this Master Security Agreement (each an
"Assignor" and, collectively, the "Assignors") hereby charges, mortgages and grants and
grants to Laurus a first priority and continuing security interest in all of the following
property now owned or at any time hereafter acquired by any Assignor, or in which any
Assignor now have or at any time in the future may acquire any right, title or interest
(the "Collateral"): all cash, cash equivalents, accounts, inventory, equipment, goods,
records, documents, instruments (including, without limitation, promissory notes),
contract rights, general intangibles (including, without limitation, payment intangibles
and an absolute right to license on terms no less favorable than those current in effect
among our affiliates, but not own intellectual property), chattel paper, supporting
obligations, investment property (including, without limitation, all equity interests
owned by any Assignor), letter--of--credit rights, trademarks and tradestyles in which any
Assignor now have or hereafter may acquire any right, title or interest, all proceeds and
products thereof (including, without limitation, proceeds of insurance) and all additions,
accessions and substitutions thereto or therefore. In the event any Assignor wishes to
finance the acquisition in the ordinary course of business of any hereafter acquired
equipment and have obtained a commitment from a financing source to finance such equipment
from an unrelated third party, Laurus agrees to release its security interest on such
hereafter acquired equipment so financed by such third party financing source. Except as
otherwise defined herein, all capitalized terms used herein shall have the meaning
provided such terms in the Securities Purchase Agreement referred to below.

           2.     Notwithstanding anything to the contrary set forth in
Section 1 above, the types of Collateral described in such Section shall not include the
last day of the term of any lease or agreement to which any Assignor is a party but upon
enforcement of the security interest, such Assignor shall stand possessed of such last day
in trust to assign the same to any person acquiring the term of the lease or agreement
therefor.

The term "Obligations" as used herein shall mean and include all debts, liabilities and
obligations owing by each Assignor to Laurus arising under, out of, or in connection with:
(i) that certain Securities Purchase Agreement dated as of the date hereof by and between
the Company and Laurus (the "Securities Purchase Agreement"), (ii) that certain Secured
Convertible Note dated as of the date hereof made by the Company in favor of Laurus (the
"Term Note"), (iii) that certain Warrant dated as of the date hereof made by the Company
in favor of Laurus (the " Warrant"), (iv) that certain Subsidiary Guaranty dated as of the
date hereof made by certain Subsidiaries of the Company, (the "Subsidiary Guaranty"), (v)
that certain Registration Rights Agreement dated as of the date hereof by and between the
Company and Laurus (the "Registration Rights Agreement"), (vi) this Master Security
Agreement, (vii) that certain Stock Pledge Agreement dated as of the date hereof among the
Company, certain subsidiaries of the Company and Laurus (the "Stock Pledge Agreement"),
and (viii) that certain Escrow Agreement dated as of the date hereof among the Company,
Laurus and the escrow agent referred to therein (the "Escrow Agreement") (the Securities
Purchase Agreement, the Term Note, the Warrant, the Registration Rights Agreement, the
Subsidiary Guaranty, this Master Security Agreement, the Stock Pledge Agreement, and the
Escrow Agreement, as each may be amended, modified, restated or supplemented from time to
time, are collectively referred to as the "Documents"), and in connection with any
documents, instruments or agreements relating to or executed in connection with the
Documents or any documents, instruments or agreements referred to therein or otherwise,
and in connection with any other indebtedness, obligations or liabilities of any Assignor
to Laurus, whether now existing or hereafter arising, direct or indirect, liquidated or
unliquidated, absolute or contingent, due or not due and whether under, pursuant to or
evidenced by a note, agreement, guaranty, instrument or otherwise, in each case,
irrespective of the genuineness, validity, regularity or enforceability of such
Obligations, or of any instrument evidencing any of the Obligations or of any collateral
therefor or of the existence or extent of such collateral, and irrespective of the
allowability, allowance or disallowance of any or all of the Obligations in any case
commenced by or against any Assignor under Title 11, United States Code, 
the Bankruptcy and Insolvency Act (Canada), or the Companies'' Creditors Arrangement Act
(Canada) (or any similar legislation), including, without limitation,
obligations or indebtedness of each Assignor for post--petition interest, fees, costs and
charges that would have accrued or been added to the Obligations but for the commencement
of such case, whether or not such amounts are allowed or allowable in
whole or in part in any such case.

           3.     Each Assignor hereby jointly and severally represents, warrants and
covenants to Laurus that:

	 	(a)	it is a corporation, partnership or limited liability
    company, as the case may be, validly existing, in good standing and organized under
    the respective laws of its jurisdiction of organization set forth on Schedule A, and
    each Assignor will provide Laurus thirty (30) days'' prior written notice of any
    change in any of its respective jurisdiction of organization;
	 	(b)	its legal name is as set forth in its respective
    Certificate of Incorporation or other organizational document (as applicable) as
    amended through the date hereof and as set forth on Schedule A, and it will provide
    Laurus thirty (30) days'' prior written notice of any change in its legal name;

2

	 	(c)	its organizational identification number (if
    applicable) is as set forth on Schedule A hereto, and it will provide Laurus thirty
    (30) days'' prior written notice of any change in any of its organizational
    identification number;
	 	(d)	it is the lawful owner of the respective
    Collateral and it has the sole right to grant a security interest therein and will
    defend the Collateral against all claims and demands of all persons and entities
    (other than Permitted Encumbrances (as defined below);
	 	(e)	it will keep its respective Collateral free
    and clear of all attachments, levies, taxes, liens, hypothecs, security interests and
    encumbrances of every kind and nature ("Encumbrances"), except Permitted Encumbrances.
    "Permitted Encumbrances" shall mean (i) Encumbrances securing the Obligations and (ii)
    any Encumbrance that secures indebtedness of $100,000 or less, in the aggregate, if
    such Encumbrance is removed or otherwise released within ten (10) days of the creation
    thereof; (iii) any Encumbrance that is being contested in good faith by proceedings
    diligently conducted that does not subject any material portion of the Collateral to a
    risk of forfeiture; (iv) trade debt and debt incurred to finance the purchase of
    equipment (not in excess of five percent (5%) per annum of the book value of the
    Company''s assets whether secured or unsecured and (v) any Encumbrance in favor of
    Laurus ;
	 	(f)	it will, at its and the other Assignors joint
    and several cost and expense keep the Collateral in good state of repair (ordinary
    wear and tear excepted) and will not waste or destroy the same or any part thereof
    other than ordinary course discarding of items no longer used or useful in its or such
    other Assignors'' business;
	 	(g)	it will not without Laurus'' prior written
    consent, sell, exchange, lease or otherwise dispose of the Collateral, whether by
    sale, lease or otherwise, except for the sale of inventory in the ordinary course of
    business and for the disposition or transfer in the ordinary course of business during
    any fiscal year of obsolete and worn--out equipment or equipment no longer necessary
    for its ongoing needs, having an aggregate fair market value of not more than $40,000
    and only to the extent that:
	 	(i)	the proceeds of any such disposition are used to acquire
    replacement Collateral which is subject to Laurus'' first priority perfected security
    interest, or are used to repay Obligations or for working capital in the ordinary
    course of business ; and
	 	(ii)	following the occurrence of an Event of Default which
    continues to exist the proceeds of which are remitted to Laurus to be held as cash
    collateral for the Obligations;

	 	(h)	it will insure or cause the Collateral to be insured in
    Laurus'' name against loss or damage by fire, theft, burglary, pilferage, loss in
    transit and such other hazards as  

3

	 	 	Laurus shall specify in amounts and under policies by
    insurers acceptable to Laurus and all premiums thereon shall be paid by such Assignor
    and the policies delivered to Laurus. If any such Assignor fails to do so, Laurus may
    procure such insurance and the cost thereof shall be promptly reimbursed by the
    Assignors, jointly and severally, and shall constitute Obligations;
	 	(i)	it will at all reasonable times allow Laurus or Laurus''
    representatives free access to and the right of inspection of the Collateral;
	 	(j)	such Assignor (jointly and severally with each other
    Assignor) hereby indemnifies and saves Laurus harmless from all loss, costs, damage,
    liability and/or expense, including reasonable attorneys'' fees, that Laurus may
    sustain or incur to enforce payment, performance or fulfillment of any of the
    Obligations and/or in the enforcement of this Master Security Agreement or in the
    prosecution or defense of any action or proceeding either against Laurus or any
    Assignor concerning any matter growing out of or in connection with this Master
    Security Agreement, and/or any of the Obligations and/or any of the Collateral except
    to the extent caused by Laurus'' own gross negligence or willful misconduct (as
    determined by a court of competent jurisdiction in a final and nonappealable
    decision).

               4.     The occurrence of any of the following events or
    conditions shall constitute an "Event of Default" under this Master Security
    Agreement:

  

	 	(a)	Breach of any covenant, warranty,
    representation or statement made or furnished to Laurus by any Assignor or on any
    Assignor''s benefit was false or misleading in any material respect when made or
    furnished, and if subject to cure, shall not be cured for a period of fifteen (15)
    days from the occurrence of the breach;
	 	(b)	the loss, theft, substantial damage,
    destruction, sale or encumbrance to or of any of the Collateral or the making of any
    levy, seizure or attachment thereof or thereon except to the extent:
	 	(i)	such loss is covered by insurance proceeds which are used
    to replace the item or repay Laurus; or
	 	(ii)	said levy, seizure or attachment does not secure
    indebtedness in excess of $100,000 and such levy, seizure or attachment has not been
    removed or otherwise released within ten (10) days of the creation or the assertion
    thereof;
	 	(c)	any Assignor shall become insolvent, cease
    operations, dissolve, terminate our business existence, make an assignment for the
    benefit of creditors, suffer the appointment of a receiver, trustee, liquidator or
    custodian of all or any part of Assignors'' property;
	 	(d)	any proceedings under any bankruptcy or
    insolvency law shall be commenced by or against any Assignor and if commenced against
    any Assignor shall not be dismissed within sixty (60) days;

4

	 	(e)	the Company shall repudiate, purport to revoke or fail to
    perform any or all of its obligations under the Note (after passage of applicable cure
    period, if any); or
	 	(f)	an Event of Default shall have occurred under and as
    defined in any Document.

          5.     Upon the occurrence of any Event of Default and at any time
thereafter, Laurus may declare all Obligations immediately due and payable and Laurus
shall have the remedies of a secured party provided in the Documents, the Uniform
Commercial Code as in effect in the State of New York, and the Personal Property Security
Act as in effect in each of the Province of Ontario, the province of New Brunswick and any
other applicable Canadian or provincial personal property security or similar legislation
and other applicable law (collectively, the "PPSA"). Upon the occurrence of any Event of
Default and at any time thereafter, Laurus will have the right to take possession of the
Collateral and to maintain such possession on our premises or to remove the Collateral or
any part thereof to such other premises as Laurus may desire. Upon Laurus'' request, each
of the Assignors shall assemble or cause the Collateral to be assembled and make it
available to Laurus at a place designated by Laurus. If any notification of intended
disposition of any Collateral is required by law, such notification, if mailed, shall be
deemed properly and reasonably given if mailed at least ten (10) days before such
disposition, postage prepaid, addressed to any Assignor either at such Assignor''s address
shown herein or at any address appearing on Laurus'' records for such Assignor. Any
proceeds of any disposition of any of the Collateral shall be applied by Laurus to the
payment of all expenses in connection with the sale of the Collateral, including
reasonable attorneys'' fees and other legal expenses and disbursements and the reasonable
expense of retaking, holding, preparing for sale, selling, and the like, and any balance
of such proceeds may be applied by Laurus toward the payment of the Obligations in such
order of application as Laurus may elect, and each Assignor shall be liable for any
deficiency.

          6.     If any Assignor defaults in the performance or fulfillment of any of
the terms, conditions, promises, covenants, provisions or warranties on such Assignor''s
part to be performed or fulfilled under or pursuant to this Master Security Agreement,
Laurus may, at its option without waiving its right to enforce this Master Security
Agreement according to its terms, immediately or at any time thereafter and without notice
to any Assignor, perform or fulfill the same or cause the performance or fulfillment of
the same for each Assignor''s joint and several account and at each Assignor''s joint and
several cost and expense, and the cost and expense thereof (including reasonable
attorneys'' fees and other legal fees and expenses) shall be added to the Obligations and
shall be payable on demand with interest thereon at the highest rate permitted by
applicable law.

          7.     Upon the occurrence and during the continuance of an Event of Default,
each Assignor appoints Laurus, any of Laurus'' officers, employees or any other person or
entity whom Laurus may designate as our attorney, with power to execute such documents in
each of our behalf and to supply any omitted information and correct patent errors in any
documents executed by any Assignor or on any Assignor''s behalf; to file financing
statements against us covering the Collateral; to sign our name on public records; and to
do all other things Laurus deem necessary to carry out this Master Security Agreement.
Each Assignor hereby ratifies and approves all acts of the attorney and neither Laurus nor
the attorney will be liable for any acts of commission or omission, nor for any error of
judgment or mistake of fact or law other than gross  

5

negligence or willful misconduct (as determined by a court of competent jurisdiction in
a final and non--appealable decision). This power being coupled with an interest, is
irrevocable so long as any Obligations remains unpaid.  

          8.     No delay or failure on Laurus'' part in exercising any right,
privilege or option hereunder shall operate as a waiver of such or of any other right,
privilege, remedy or option, and no waiver whatever shall be valid unless in writing,
signed by Laurus and then only to the extent therein set forth, and no waiver by Laurus of
any default shall operate as a waiver of any other default or of the same default on a
future occasion. Laurus'' books and records containing entries with respect to the
Obligations shall be admissible in evidence in any action or proceeding, shall be binding
upon each Assignor for the purpose of establishing the items therein set forth and shall
constitute prima facie proof thereof. Laurus shall have the right to enforce any one or
more of the remedies available to Laurus, successively, alternately or concurrently. Each
Assignor agrees to join with Laurus in executing financing statements or other instruments
to the extent required by the Uniform Commercial Code in form satisfactory to Laurus and
in executing such other documents or instruments as may be required or deemed necessary by
Laurus for purposes of affecting or continuing Laurus'' security interest in the
Collateral.

          9.     Laurus may appoint, remove and reappoint any person or persons,
including an employee or agent of Laurus to be a receiver (the "Receiver") which term
shall include a receiver and manager of, or agent for, all or any part of the Collateral.
Any such Receiver shall, as far as concerns responsibility for his acts, be deemed to be
the agent of Assignors and not of Laurus, and Laurus shall not in any way be responsible
for any misconduct, negligence or non--feasance of such Receiver, his employees or agents.
Except as otherwise directed by Laurus, all money received by such Receiver shall be
received in trust for and paid to Laurus. Such Receiver shall have all of the powers and
rights of Laurus described in Sections, 6, 7, 8 and 9 of this Master Security Agreement or
such other powers and rights granted in writing by Laurus to the Receiver from time to
time. Laurus may, either directly or through its agents or nominees, exercise any or all
powers and rights of a Receiver.

          10.     Each Assignor shall pay all costs, charges and expenses incurred by
Laurus or any Receiver, whether directly or for services rendered (including, solicitor''s
costs on a solicitor and his own client basis, auditor''s costs, other legal expenses and
Receiver remuneration) in enforcing this Agreement and in enforcing or collecting
Obligations and all such expenses together with any money owing as a result of any
borrowing permitted hereby shall be a charge on the proceeds of realization and shall be
secured hereby.

          11.     Each Assignor acknowledges that its business and financial
relationships with Laurus are unique from its relationship with any other of its
creditors, and agrees that it shall not file any plan of arrangement under Title 11,
United States Code, the Companies'' Creditors Arrangement Act (Canada) or make any
proposal under the Bankruptcy and Insolvency Act (Canada) which provides for, or would
permit directly or indirectly, Laurus to be classified with any other creditor for
purposes of such plan or proposal or otherwise.

          12.     If any provision of this Master Security Agreement is held to be
invalid or unenforceable, such invalidity or unenforceability shall not invalidate this
Master Security Agreement as a whole, but this Master Security Agreement shall be
construed as though it did not  

6

contain the particular provision held to be invalid or unenforceable and the rights and
obligations of the parties shall be construed and enforced only to such extent as shall be
permitted by applicable law.

          13.     This Master Security Agreement shall be governed by and construed in
accordance with the laws of the State of New York and cannot be terminated orally. All of
the rights, remedies, options, privileges and elections given to Laurus hereunder shall
inure to the benefit of Laurus'' successors and assigns. The term "Laurus" as herein used
shall include Laurus, any parent of Laurus'', any of Laurus'' subsidiaries and any
co--subsidiaries of Laurus'' parent, whether now existing or hereafter created or
acquired, and all of the terms, conditions, promises, covenants, provisions and warranties
of this Agreement shall inure to the benefit of and shall bind the representatives,
successors and assigns of each Assignor and each of the foregoing. Laurus and each
Assignor hereby (a) waive any and all right to trial by jury in litigation relating to
this Agreement and the transactions contemplated hereby and each Assignor agrees not to
assert any counterclaim in such litigation, (b) submit to the nonexclusive jurisdiction of
any New York State court sitting in the borough of Manhattan, the city of New York or
Ontario Superior Court of Justice, in each case, whichever Laurus at its sole discretion
may elect, and (c) waive any objection Laurus or each Assignor may have as to the bringing
or maintaining of such action with any such court.

          14.     All notices from Laurus to any Assignor shall be sufficiently given
if sent by overnight courier or delivered to such Assignor''s address set forth below.

	 	Very truly yours,
	 	MAGIC LANTERN GROUP, INC.
    By: ____________________

    Name:

    Title:

    Address:

	 	TUTORBUDDY INC.
    By: ____________________

    Name:

    Title:

    Address:

7

	 	SONOPTIC TECHNOLOGIES INC.
    By: ____________________

    Name:

    Title:

    Address:

    MAGICVISION MEDIA INC.

	 	By: ____________________
    Name:

    Title:

    Address:

    MAGIC LANTERN COMMUNICATIONS LTD.

    By: ____________________

    Name:

    Title:

    Address:

     

    ACKNOWLEDGED:

    LAURUS MASTER FUND, LTD.

    By:______________________

    Name:

    Title

 

 

8

                          
                        
                      
                    
                  
                
              
            
          
        
      
    
  

	 	 
	 	 
	 	
	 	 
	 	 
	
    
      SCHEDULE A

    

	
    
      Entity

    	
    Jurisdiction of Organization
	
    Identification Number

	

    Magic Lantern Group Inc.

    
	 

    New York
	

    13--3016967

	Magicvision Media, Inc.

    
	Ontario
	1490681

	Magic Lantern Communications Ltd.

    
	Canada
	324397--4

	Tutorbuddy Inc.

    
	Canada
	373591--5

	Synoptic Technologies Inc.
	Canada
	063732--7

 

9

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00065-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00065-of-00352.parquet"}]]