Document:

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                                                                    Exhibit 10.4

                              GENIUS PRODUCTS, INC.
                           RESALE AND VOTING AGREEMENT

      THIS RESALE AND VOTING AGREEMENT (this "Agreement") is made as of March
21, 2005 by and among GENIUS PRODUCTS, INC., a Delaware corporation (the
"Company"), and the Investor (as defined below).

                                    RECITALS

      A. The Company is issuing to American Vantage Companies, a Nevada
corporation ("AVC"), on the date hereof (i) 7,000,000 shares of Company Common
Stock (the "Initial Shares") and (ii) warrants to purchase in the aggregate
1,400,000 shares of Company Common Stock (the "Warrants"), in connection with
that certain Agreement and Plan of Merger, dated March 21, 2005 (the "Merger
Agreement"), to which each of the Company and AVC are parties.

      B. The obligations of the Company and AVC to consummate the transactions
contemplated by the Merger Agreement are conditioned, among other things, upon
the execution and delivery of this Agreement by each of them.

      NOW, THEREFORE, in consideration of the mutual premises and covenants set
forth herein, the parties hereto agree as follows:

      1. Definitions. Capitalized terms used and not otherwise defined herein
that are defined in the Merger Agreement shall have the meanings given such
terms in the Merger Agreement. In addition, for purposes of this Agreement:

            "Affiliate" has the meaning specified in Rule 13e-3 promulgated
under the Securities Exchange Act of 1934, as amended.

            "Company" has the meaning shown above.

            "Company Common Stock" means the Company's common stock, par value
$0.0001 per share.

            "Expiration Date" means, with respect to any Investor, the earlier
of (i) the date on which such Investor ceases to constructively or beneficially
own less than 5% of the issued and outstanding shares of Company Common Stock or
(ii) March 21, 2010.

            "Investor Shares" means (a) the Initial Shares issued to AVC on the
date hereof, (b) any shares of Company Common Stock issued upon exercise of any
of the Warrants (the "Warrant Shares") and (c) any securities distributed in
respect of the Initial Shares or the Warrant Shares prior to the Expiration Date
by reason of a stock dividend, split-up, recapitalization, reclassification,
combination, merger, exchange of shares or otherwise.

            "Investor" means AVC and its Affiliates.

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            "QIB" means a qualified institutional buyer, as such term is defined
Rule 144A under the Securities Act of 1933, as amended, but who are not required
to file as an investment adviser under the Investment Advisers Act of 1940
pursuant to SEC Release No. IA-2333.

            "Transfer Restrictions" has the meaning specified in Section 2.2.

      2. Resale Agreement.

            2.1 Agreement. The Investor agrees that, except in compliance with
the Transfer Restrictions or with the prior written consent of the Company, from
the date hereof through the Expiration Date, Investor will not (a) offer,
pledge, sell, contract to sell, sell any option or contract to purchase,
purchase any option or contract to sell, grant any option, right or warrant to
purchase, or otherwise transfer or dispose of, directly or indirectly, any of
the Investor Shares or Warrants, or any securities convertible into or
exercisable or exchangeable for any of the Investor Shares or Warrants, or (b)
enter into any swap or other arrangement that transfers to another, in whole or
in part, any of the economic consequences of ownership of any of the Investor
Shares or Warrants, whether any such transaction described in clause (a) or (b)
above (in each case, a "Sale") is to be settled by delivery of any Investor
Shares or Warrants, other securities, in cash or otherwise.

            2.2 Transfer Restrictions. For purposes of this Section 2, the
"Transfer Restrictions" are as follows:

                  (a) Sales in open market transactions, including sales
pursuant to an effective registration statement or Rule 144, may only be made
(i) at a price per share that is no less than 85% of the volume weighted-average
closing price per share of the Company Common Stock on its primary trading
market or exchange during the ten (10) trading days prior to the date that the
Investor agrees to make such sale; and (ii) in such volume that, when combined
with all other sales of Investor Shares during the immediately preceding ten
(10) trading days, is no more than 15% of the aggregate volume of trading in
Company Common Stock on all exchanges during the ten (10) trading days
immediately preceding the date of such sale.

                  (b) Private Sales to a QIB may only be made (i) to those
entities listed on Schedule A to this Agreement (which has been provided to the
Company at least one day prior to the date hereof); (ii) at a price per share
(in the case of Warrants that are detached from Investor Shares at a price which
when combined with the Warrant exercise price) that is no less than 85% of the
volume weighted-average closing price per share of the Company Common Stock on
its primary trading market or exchange during the ten (10) trading days prior to
the date that the Investor agrees to make such sale; and (iii) in such volume
(in the case of the Warrants such volume shall include the shares then issuable
upon exercise of the Warrants) which, when combined with all other sales of
Investor Shares or Warrants by the Investor to such QIB or its Affiliates, does
not exceed 3,100,000 shares. The Company agrees that (x) except as may otherwise
be required by law or judicial process, it will hold Schedule A and its contents
in strict confidence and will not divulge the names of the entities listed on
Schedule A to any other party, except for its CEO and CFO, directors, and such
employees, investment bankers and attorneys with a need to know the contents of
Schedule A, and (y) until the one-year anniversary of the date hereof, it will
not contact any party set forth on Schedule A for any debt or equity financing

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without the prior approval of Jefferies & Company, Inc., unless at the time of
such contact (1) such party is a stockholder of the Company and such contact
relates to a debt or equity financing being offered to all stockholders of the
Company (e.g., a rights offering) or (2) the Investor then holds less than 10%
of the Initial Shares.

                  (c) Private Sales to a non-QIB purchaser may only be made (i)
at a price per share (in the case of Warrants that are detached from Investor
Shares at a price which when combined with the Warrant exercise price) that is
no less than 85% of the volume weighted-average closing price per share of the
Company Common Stock on its primary trading market or exchange during the ten
(10) trading days prior to the date that the Investor agrees to make such sale;
and (ii) in such volume (in the case of the Warrants such volume shall include
the shares then issuable upon exercise of the Warrants) which, when combined
with all other sales of Investor Shares or Warrants by the Investor to such
purchaser or its Affiliates, does not exceed (A) 1,000,000 shares or (B) such
amount which, combined with all other holdings of Company Common Stock by such
purchaser or its Affiliates, does not exceed 3.0% of the then issued and
outstanding shares of Company Common Stock. The Investor will be permitted to
rely on a written representation by the purchaser of its holdings of Company
Common Stock and that of its Affiliates in complying with the foregoing
restriction.

                  (d) Sales (i) may only be made, directly or indirectly, in
accordance with applicable federal and state securities laws or exemptions to
such laws, and (ii) will not cause the Company to violate any federal or state
securities laws with respect to the original issuance of Investor Shares or
Warrants to the Investor. The Investor agrees to indemnify and hold harmless the
Company, together with its officers, directors, employees and agents, from and
against any and all losses, claims, actions, damages, liabilities and expenses
arising out of or resulting from any Sales in violation of this Section 2.2(d).

                  (e) Upon a Sale made in accordance with the Transfer
Restrictions, each of the Investor Shares and Warrants subject to such Sale and
the purchaser/transferee of such Investor Shares and Warrants shall no longer be
subject to this Agreement.

            2.3 Exceptions. The Transfer Restrictions in Section 2.2 shall not
apply to Sales to an Affiliate of the Investor if such Affiliate shall have
executed a written agreement, substantially in the form of this Agreement,
pursuant to which such Affiliate becomes a party to this Agreement and agrees to
be bound by all the provisions hereof as if such Affiliate were the Investor.

            2.4 Escrowed Shares and Pledged Shares. For so long as any of the
Escrowed Shares or Pledged Shares are being held pursuant to the Escrow
Agreement or Assumption Agreement, as applicable, the Investor agrees not to (a)
offer, pledge, sell, contract to sell, sell any option or contract to purchase,
purchase any option or contract to sell, grant any option, right or warrant to
purchase, or otherwise transfer or dispose of, directly or indirectly, any of
such Escrowed Shares or Pledged Shares or any securities convertible into or
exercisable or exchangeable for any of them, or (b) enter into any swap or other
arrangement that transfers to another, in whole or in part, any of the economic
consequences of ownership of any of such Escrowed Shares or Pledged Shares,
whether any such transaction described in clause (a) or (b) above is to be
settled by delivery of any shares of Company Common Stock, other securities, in

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cash or otherwise.

            2.5 Cooperation of the Company in Connection with All Sales. The
Company shall reasonably cooperate with Investor in the transfer (each, a
"Transfer") of all Investor Shares and Warrants subject to Sales made in
accordance with the Transfer Restrictions. Such cooperation shall include, but
not be limited to, (a) instructing the transfer agent for the Company Common
Stock to recognize each Transfer and (b) either (i) instructing the Company's
counsel to issue appropriate opinions to the transfer agent for the Company
Common Stock with respect to each Transfer that is permitted under applicable
law (with the actual fees and expenses of such counsel reimbursed by the
Investor) or (ii) instructing the transfer agent for the Company Common Stock to
recognize and accept reasonable opinions of counsel to Investor with respect to
each Transfer.

      3. Voting Agreement. Until the Expiration Date, Investor shall, at any
meeting of the holders of Company Common Stock, however such meeting is called
and regardless of whether such meeting is a special or annual meeting of
stockholders of the Company, or at any adjournment thereof, or in connection
with any written consent of stockholders of the Company, vote, or cause to be
voted, the Investor Shares in the same proportion that the Company's other
stockholders vote, abstain from voting (including "broker non-votes") or fail to
vote their shares of Company Common Stock with respect to any proposal or action
submitted to the Company's stockholders for a vote or consent, so that, as a
result, (i) the percentage of Investor Shares that are voted in favor of such
proposal will equal the percentage of outstanding shares of Company Common Stock
held by all other Company stockholders voted in favor of such proposal and (ii)
the percentage of the Investor Shares that are voted against such proposal or
abstained from voting on such proposal will equal the percentage of outstanding
shares of Company Common Stock held by all other Company stockholders voted
against such proposal or abstained from voting on such proposal. Should the
provisions of this Section 3 be construed to constitute the granting of proxies,
such proxies shall be deemed coupled with an interest and are irrevocable for
the term of this Agreement. The provisions of this Section 3 shall not apply to
any tender offer involving Company Common Stock, proposal involving the merger
of the Company with any other entity, or any proposal in which AVC or any other
Investor shall have a direct interest in such proposal, whether or not such
tender offer, merger or other proposal has been approved by the Company's Board
of Directors.

      4. Covenants of Investor. The Investor agrees to use its best efforts to
ensure that the rights granted hereunder are effective and that the parties
hereto enjoy the benefits thereof. The Investor will not, by any voluntary
action, nor will it permit its Affiliates to, avoid or seek to avoid the
observance or performance of any of the terms to be performed hereunder by the
Investor, but will at all times in good faith assist in the carrying out of all
of the provisions of this Agreement. Without limiting the generality of the
foregoing, the Investor hereby agrees and covenants that, during the period from
the date of this Agreement until the Expiration Date, the Investor will not (i)
grant any proxy, power-of-attorney or other authorization in or with respect to
the Investor Shares inconsistent with the provisions of Section 2 or (ii)
deposit any of the Investor Shares into a voting trust or enter into a voting
agreement or arrangement with respect to any of the Investor Shares.

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      5. Representations and Warranties of Company and Investor.

            5.1 Investor hereby represents and warrants to the Company as
follows:

                  (a) No Inconsistent Proxies, Voting Trusts, Etc. Investor has
not (i) entered into any agreement with respect to the Investor Shares which
would be covered by Section 2 if entered into after the date hereof, (ii)
granted any proxy, power-of-attorney or other authorization in or with respect
to the Investor Shares or (iii) deposited any of the Investor Shares into a
voting trust or entered into a voting agreement or arrangement with respect to
any of the Investor Shares.

                  (b) Power; Binding Agreement. Investor has the corporate power
and authority to enter into and perform all of its obligations hereunder,
including, without limitation, the power and authority to vote the Investor
Shares in accordance with Section 2 hereof. The execution, delivery and
performance of this Agreement by Investor will not violate any other agreement
to which Investor is a party including, without limitation, any voting
agreement, proxy arrangement, pledge agreement, stockholders agreement, voting
trust or trust agreement. This Agreement has been duly and validly executed and
delivered by Investor, and constitutes a valid and binding agreement of
Investor, enforceable against the Investor in accordance with its terms, except
that (A) such enforcement may be subject to applicable bankruptcy, insolvency,
moratorium, or other similar laws, now or hereafter in effect, affecting
creditors' rights generally and (B) the remedy of specific performance and
injunctive and other forms of equitable relief may be subject to equitable
defenses and to the discretion of the court before which any proceeding therefor
may be brought. There is no beneficiary or holder of a voting trust certificate
or other interest of any trust of which Investor is a trustee whose consent is
required for the execution and delivery of this Agreement or the compliance by
Investor with the terms hereof, other than such consents as have been obtained.

                  (c) No Conflicts. None of the execution and delivery of this
Agreement by Investor, the consummation by Investor of the transactions
contemplated hereby or compliance by Investor with any of the provisions hereof
shall (A) conflict with, or result in any breach of, any organizational
documents applicable to Investor, (B) result in a violation or breach of, or
constitute (with or without due notice or lapse of time or both) a default (or
give rise to any third party right of termination, cancellation, material
modification or acceleration) under any of the terms, conditions or provisions
of any note, loan agreement, bond, mortgage, indenture, license, contract,
commitment, arrangement, understanding, agreement or other instrument or
obligation of any kind to which Investor is a party or by which Investor or any
of the Investor Shares may be bound, or (C) violate any order, writ, injunction,
decree, judgment, order, statute, arbitration award, rule or regulation
applicable to Investor or any of the Investor Shares, in each case, in a manner
that could reasonably be expected to materially hinder or impede Investor's
ability to perform their obligations hereunder.

            5.2 The Company represents and warrants to the Investor as follows:

                  (a) Power; Binding Agreement. The Company has the corporate
power and authority to enter into and perform all of its obligations under this
Agreement. This Agreement has been duly and validly executed and delivered by
the Company and constitutes a

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valid and binding agreement of the Company, enforceable in accordance with its
terms, except that (A) such enforcement may be subject to applicable bankruptcy,
insolvency, moratorium, or other similar laws, now or hereafter in effect,
affecting creditors' rights generally and (B) the remedy of specific performance
and injunctive and other forms of equitable relief may be subject to equitable
defenses and to the discretion of the court before which any proceeding therefor
may be brought.

      6. Specific Enforcement. Each party hereto agrees that its obligations
hereunder are necessary and reasonable in order to protect the other parties to
this Agreement, and each party expressly agrees and understands that monetary
damages would inadequately compensate an injured party for the breach of this
Agreement by any party, that this Agreement shall be specifically enforceable,
and that, in addition to any other remedies that may be available at law, in
equity or otherwise, any breach or threatened breach of this Agreement shall be
the proper subject of a temporary or permanent injunction or restraining order,
without the necessity of proving actual damages. Further, each party hereto
waives any claim or defense that there is an adequate remedy at law for such
breach or threatened breach.

      7. Termination. This Agreement and the covenants, representations,
warranties, and agreements contained herein shall terminate upon the earlier of
the mutual agreement of the parties or the Expiration Date. Upon any termination
of this Agreement, this Agreement shall thereupon become void and of no further
force and effect, and there shall be no liability in respect of this Agreement
on the part of any party hereto or any of its directors, officers, partners,
stockholders, employees, agents, advisors, representatives or Affiliates;
provided, however, that nothing contained herein shall relieve any party from
any liability for such party's willful breach of this Agreement prior to
termination.

      8. Amendments and Waivers. Any term hereof may be amended and the
observance of any term hereof may be waived (either generally or in a particular
instance and either retroactively or prospectively) only with the written
consent of each of the parties hereto. The parties agree that the Investor may
add one or more entities to Schedule A upon written notice as provided below and
failure of the Company to object within 24 hours (falling only on business days)
following delivery of such notice to the Company, with such objection to not be
unreasonably given. Such notice shall be given with sufficient detail to
identify the entity being added to Schedule A (and its fund manager if not
internally managed) and, notwithstanding Section 14 hereof, such notice shall be
given via email to the Chief Financial Officer of the Company, Bruce Pompan
(bp@cappellocorp.com) and Rob Deutschman (rd@cappellocorp.com), with telephone
confirmation to the Chief Financial Officer of the Company upon sending of such
notice.

      9. Stock Splits, Stock Dividends, etc. In the event of any issuance of
shares of the Company's voting securities hereafter to any of the parties hereto
(including, without limitation, in connection with any stock split, stock
dividend, recapitalization, capital reorganization, or the like), such shares
shall become subject to this Agreement and shall be endorsed with the legend(s)
appearing on the original certificate.

      10. Successors and Assigns. The provisions of this Agreement shall be
binding upon any transferee, successor in interest, heir or assignee of the
Investor or any of the Investor

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Shares, except for transfers of Investor Shares in open market transactions,
including sales pursuant to an effective registration statement or Rule 144, to
a non-Affiliate of the Investor.

      11. Governing Law; Venue. This Agreement is to be construed in accordance
with and governed by the internal laws of the State of Delaware without giving
effect to any choice of law rule that would cause the application of the laws of
any jurisdiction other than the internal laws of the State of Delaware to the
rights and duties of the parties. All disputes and controversies arising out of
or in connection with this Agreement shall be resolved exclusively by the state
and federal courts located in the State of Delaware, and each party hereto
agrees to submit to the jurisdiction of said courts and agrees that venue shall
lie exclusively with such courts.

      12. Counterparts. This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.

      13. Titles and Subtitles. The titles and subtitles used in this Agreement
are used for convenience only and are not to be considered in construing or
interpreting this Agreement.

      14. Notices. Except as may be otherwise provided herein, all notices,
requests, waivers and other communications made pursuant to this Agreement shall
be in writing and shall be conclusively deemed to have been duly given (a) when
hand delivered to the other party against written receipt therefor; (b) three
business days after deposit in the U.S. mail with first class or certified mail
receipt requested postage prepaid and addressed to the other party at the
address set forth below; or (c) the next business day after deposit with a
national overnight delivery service, postage prepaid, addressed to the parties
as set forth below with next business day delivery guaranteed, provided that the
sending party receives a confirmation of delivery from the delivery service
provider. A party may change or supplement the addresses given above, or
designate additional addresses, for purposes of this Section 14 by giving the
other party written notice of the new address in the manner set forth above.

      15. Expenses. If any action at law or in equity is necessary to enforce or
interpret the terms of this Agreement, the prevailing party shall be entitled to
reasonable attorney's fees, costs and necessary disbursements in addition to any
other relief to which such party may be entitled as shall be determined by a
court of competent jurisdiction.

      16. Severability. The parties hereto agree that each provision of this
Agreement shall be interpreted in such a manner as to be effective and valid
under applicable law. If any provision of this Agreement shall nevertheless be
held to be prohibited by or invalid under applicable law, (a) such provision
shall be effective only to the extent of such prohibition or invalidity, without
invalidating the remainder of such provision or the remaining provisions of this
Agreement, and (b) the parties shall, to the extent permissible by applicable
law, amend this Agreement, or enter into a voting trust agreement under which
the Investor Shares shall be transferred to the voting trust created thereby, so
as to make effective and enforceable the intent of this Agreement.

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      17. Entire Agreement. This Agreement and the documents referred to herein
constitute the entire agreement among the parties with respect to the subject
matter hereof and no party shall be liable or bound to any other party in any
manner by any warranties, representations or covenants except as specifically
set forth herein or therein.

                        [SIGNATURES FOLLOW ON NEXT PAGE]

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      IN WITNESS WHEREOF, the parties hereto have executed this Resale and
Voting Agreement as of the date first above written.

                                    COMPANY:

                                    GENIUS PRODUCTS, INC.

                                    By: /s/ Trevor Drinkwater
                                        ----------------------------------------
                                    Name: Trevor Drinkwater, President
                                    Address: 740 Lomas Santa Fe, Suite 210
                                             Solana Beach, CA 92075

                                    INVESTOR:

                                    AMERICAN VANTAGE COMPANIES

                                    By: /s/ Ronald J. Tassinari
                                        ----------------------------------------
                                    Name: Ronald J. Tassinari, President
                                    Address: 4735 South Durango Drive, Suite 105
                                             Las Vegas, Nevada  89147

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                                                                    Exhibit 10.5

                          REGISTRATION RIGHTS AGREEMENT

            This Registration Rights Agreement (this "Agreement") is made and
entered into as of March 21, 2005, by and between Genius Products, Inc., a
Delaware corporation (the "Company"), and American Vantage Companies, a Nevada
corporation (the "Stockholder").

            This Agreement is made pursuant to the Agreement and Plan of Merger,
dated as of the date hereof, between the Company and the Stockholder (the
"Merger Agreement").

            The Company and the Stockholder hereby agree as follows:

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

            "Advice" shall have the meaning set forth in Section 6(c).

            "Effectiveness Date" means, with respect to the Registration
      Statement required to be filed hereunder, the earlier of (a) the 120th
      calendar day (165 in the event of a full review of the Registration
      Statement by the Commission) following the date of the Merger Agreement,
      and (b) the fifth Trading Day following the date on which the Company is
      notified by the Commission that the Registration Statement will not be
      reviewed or is no longer subject to further review and comments.

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

            "Event" shall have the meaning set forth in Section 2(b).

            "Event Date" shall have the meaning set forth in Section 2(b).

            "Filing Date" means, with respect to the Registration Statement
      required to be filed hereunder, the 60th calendar day following the date
      of the Merger Agreement.

            "Holder" or "Holders" means the holder or holders, as the case may
      be, from time to time of 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).

            "Losses" shall have the meaning set forth in Section 5(a).

            "Plan of Distribution" shall have the meaning set forth in Section
      2(a).

            "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.

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            "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 all of the shares of Purchaser Common
      Stock comprising the Merger Consideration, and the shares of Purchaser
      Common Stock issuable upon exercise of the Warrants, together with any
      shares of Purchaser Common Stock issued or issuable upon any stock split,
      dividend or other distribution, recapitalization or similar event with
      respect to the foregoing.

            "Registration Statement" means the registration statements required
      to be filed hereunder, including (in each case) the Prospectus, amendments
      and supplements to the 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 the
      registration statement.

            "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 purpose and 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 purpose and effect as such Rule.

            "Trading Day" means a day on which the Common Stock is traded on the
      following markets or exchanges on which the Common Stock is listed or
      quoted for trading on the date in question: the OTC Bulletin Board, the
      American Stock Exchange, the New York Stock Exchange, the Nasdaq National
      Market or the Nasdaq SmallCap Market

      2. Registration.

            (a) On or prior to the Filing Date, the Company shall prepare and
file with the Commission the Registration Statement covering the resale of all
of the Registrable Securities for an offering to be made on a continuous basis
pursuant to Rule 415. The Registration Statement required hereunder 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 the Registration shall be on
another appropriate form in accordance herewith). The Registration Statement
required hereunder shall contain (except if otherwise directed by the Holders)
substantially the "Plan of Distribution" attached hereto as Annex A. Subject to
the terms of this Agreement, the Company

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shall use its best 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 not later than the Effectiveness Date, and shall use
its best efforts to keep the Registration Statement continuously effective under
the Securities Act until the date when all Registrable Securities covered by the
Registration Statement have been sold or may be sold 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").
The Company shall promptly notify the Holders via facsimile of the effectiveness
of the Registration Statement on the same day that the Company receives
notification of the effectiveness from the Commission. Failure to so notify the
Holder within one Trading Day shall be deemed an Event under Section 2(b). The
Company shall, within 1 Trading Day of the day that the Company receives
notification of the effectiveness from the Commission, file a Form 424(b)(5)
with the Commission. After the date hereof, if the Company becomes eligible to
use Form S-3 for the resale of the Registrable Securities, the Company will use
commercially reasonable efforts to amend or file a new registration statement on
Form S-3 for the resale of the Registrable Securities.

            (b) If: (i) a Registration Statement is not filed on or prior to the
Filing Date (if the Company files a Registration Statement without affording the
Holder the opportunity to review and comment on the same as required by Section
3(a), the Company shall not be deemed to have satisfied this clause (i)), or
(ii) the Company fails to file with the Commission a request for acceleration in
accordance with Rule 461 promulgated under the Securities Act, within five
Trading Days of the date that the Company is notified (orally or in writing,
whichever is earlier) by the Commission that a Registration Statement will not
be "reviewed," or is not subject to further review, or (iii) prior to the date
when such Registration Statement is first declared effective by the Commission,
the Company fails to file a pre-effective amendment and otherwise respond in
writing to comments made by the Commission in respect of such Registration
Statement within 10 calendar days after the receipt of comments by or notice
from the Commission that such amendment is required in order for a Registration
Statement to be declared effective, or (iv) a Registration Statement filed or
required to be filed hereunder is not declared effective by the Commission on or
before the Effectiveness Date, or (v) after a Registration Statement is first
declared effective by the Commission, it ceases for any reason to remain
continuously effective as to all Registrable Securities for which it is required
to be effective, or the Holders are not permitted to utilize the Prospectus
therein to resell such Registrable Securities, for in any such case 10
consecutive calendar days but no more than an aggregate of 15 Trading Days
during any 12 month period (which need not be consecutive Trading Days)(any such
failure or breach being referred to as an "Event," and for purposes of clause
(i) or (iv) the date on which such Event occurs, or for purposes of clause (ii)
the date on which such five Trading Day period is exceeded, or for purposes of
clause (iii) the date which such 10 calendar day period is exceeded, or for
purposes of clause (v) the date on which such 10 calendar day period or 15
Trading Day period, as applicable, is exceeded being referred to as "Event
Date"), then in addition to any other rights the Holders may have hereunder or
under applicable law, then, on each such Event Date and on each monthly
anniversary of each such Event Date (if the applicable Event shall not have been
cured by such date) until the applicable Event is cured, the Company shall pay
to each Holder an amount in cash, as partial liquidated damages and not as a
penalty, equal to 1.0% of the aggregate purchase price paid by such Holder
pursuant to the Purchase Agreement for any Registrable Securities then held by
such Holder. If

                                        3
<PAGE>

the Company fails to pay any partial liquidated damages pursuant to this Section
in full within seven days after the date payable, the Company will pay interest
thereon at a rate of 18% per annum (or such lesser maximum amount that is
permitted to be paid by applicable law) to the Holder, accruing daily from the
date such partial liquidated damages are due until such amounts, plus all such
interest thereon, are paid in full. The partial liquidated damages pursuant to
the terms hereof shall apply on a daily pro-rata basis for any portion of a
month prior to the cure of an Event.

      3. Registration Procedures

            In connection with the Company's registration obligations hereunder,
the Company shall:

            (a) Not less than five Trading Days prior to the filing of the
      Registration Statement or any related Prospectus or any amendment or
      supplement thereto, the Company shall, (i) furnish to the Holders copies
      of all such documents proposed to be filed (including documents
      incorporated or deemed incorporated by reference to the extent requested
      by such Person) which documents will be subject to the review of such
      Holders, and (ii) cause its officers and directors, counsel and
      independent certified public accountants to respond to such inquiries as
      shall be necessary, in the reasonable opinion of respective counsel to
      conduct a reasonable investigation within the meaning of the Securities
      Act. The Company shall not file the Registration Statement or any such
      Prospectus or any amendments or supplements thereto to which the Holders
      of a majority of the Registrable Securities shall reasonably object in
      good faith, provided that the Company is notified of such objection in
      writing no later than 5 Trading Days after the Holders have been so
      furnished copies of such documents. Each Holder agrees to furnish to the
      Company a completed questionnaire in the form attached to this Agreement
      as Annex B not less than two Trading Days prior to the Filing Date or by
      the end of the fourth Trading Day following the date on which such Holder
      receives draft materials in accordance with this Section.

            (b) (i) Prepare and file with the Commission such amendments,
      including post-effective amendments, to the Registration Statement and the
      Prospectus used in connection therewith as may be necessary to keep the
      Registration Statement continuously effective as to the applicable
      Registrable Securities for the Effectiveness Period and prepare and file
      with the Commission such additional Registration Statements in order to
      register for resale under the Securities Act all of the Registrable
      Securities; (ii) cause the related Prospectus to be amended or
      supplemented by any required Prospectus supplement, and as so supplemented
      or amended to be filed pursuant to Rule 424; (iii) respond as promptly as
      reasonably possible to any comments received from the Commission with
      respect to the Registration Statement or any amendment thereto and, as
      promptly as reasonably possible, upon request, provide the Holders true
      and complete copies of all correspondence from and to the Commission
      relating to the Registration Statement; and (iv) comply in all material
      respects with the provisions of the Securities Act and the Exchange Act
      with respect to the disposition of all Registrable Securities covered by
      the Registration Statement during the applicable period in accordance with

                                        4
<PAGE>

      the intended methods of disposition by the Holders thereof set forth in
      the Registration Statement as so amended or in such Prospectus as so
      supplemented.

            (c) Notify the Holders of Registrable Securities to be sold as
      promptly as reasonably possible and (if requested by any such Person)
      confirm such notice in writing promptly following the day (i)(A) when a
      Prospectus or any Prospectus supplement or post-effective amendment to the
      Registration Statement is proposed to be filed; (B) when the Commission
      notifies the Company whether there will be a "review" of the Registration
      Statement and whenever the Commission comments in writing on the
      Registration Statement (the Company shall upon request provide true and
      complete copies thereof and all written responses thereto to each of the
      Holders); and (C) with respect to the Registration Statement or any
      post-effective amendment, when the same has become effective; (ii) of any
      request by the Commission or any other Federal or state governmental
      authority during the period of effectiveness of the Registration Statement
      for amendments or supplements to the Registration Statement or Prospectus
      or for additional information; (iii) of the issuance by the Commission or
      any other federal or state governmental authority of any stop order
      suspending the effectiveness of the Registration Statement covering any or
      all of the Registrable Securities or the initiation of any Proceedings for
      that purpose; (iv) of 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 (v) of the occurrence of any event or passage of time that
      makes the financial statements included in the Registration Statement
      ineligible for inclusion therein or any statement made in the 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 the Registration Statement, Prospectus or other
      documents so that, in the case of the Registration Statement or the
      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.

            (d) Use best efforts to avoid the issuance of, or, if issued, obtain
      the withdrawal of (i) any order suspending the effectiveness of the
      Registration Statement, or (ii) any suspension of the qualification (or
      exemption from qualification) of any of the Registrable Securities for
      sale in any jurisdiction, at the earliest practicable moment.

            (e) Furnish to each Holder, without charge, at least one conformed
      copy of the Registration Statement and each amendment thereto, including
      financial statements and schedules, all documents incorporated or deemed
      to be incorporated therein by reference to the extent requested by such
      Person, and all exhibits to the extent requested by such Person (including
      those previously furnished or incorporated by reference) promptly after
      the filing of such documents with the Commission.

            (f) Promptly deliver to each Holder, without charge, as many copies
      of the Prospectus or Prospectuses (including each form of prospectus) and
      each amendment or supplement thereto as such Persons may reasonably
      request in connection with resales by

                                        5
<PAGE>

      the Holder of Registrable Securities. Subject to the terms of this
      Agreement, the Company hereby consents to the use of such Prospectus and
      each amendment or supplement thereto by each of the selling Holders in
      connection with the offering and sale of the Registrable Securities
      covered by such Prospectus and any amendment or supplement thereto, except
      after the giving on any notice pursuant to Section 3(c).

            (g) Prior to any resale of Registrable Securities by a Holder, use
      its commercially reasonable efforts to register or qualify or cooperate
      with the selling Holders in connection with the registration or
      qualification (or exemption from the Registration or qualification) of
      such Registrable Securities for the resale by the Holder under the
      securities or Blue Sky laws of such jurisdictions within the United States
      as any Holder reasonably requests in writing, to keep the Registration or
      qualification (or exemption therefrom) effective during the Effectiveness
      Period and to do any and all other acts or things reasonably necessary to
      enable the disposition in such jurisdictions of the Registrable Securities
      covered by the Registration Statement; provided, that the Company --------
      shall not be required to qualify generally to do business in any
      jurisdiction where it is not then so qualified, subject the Company to any
      material tax in any such jurisdiction where it is not then so subject or
      file a general consent to service of process in any such jurisdiction.

            (h) If NASDR Rule 2710 requires any broker-dealer to make a filing
      prior to executing a sale by a Holder, make an Issuer Filing with the
      NASDR, Inc. Corporate Financing Department pursuant to NASDR Rule
      2710(b)(10)(A)(i) and respond within five Trading Days to any comments
      received from NASDR in connection therewith, and pay the filing fee
      required in connection therewith.

            (i) If requested by the Holders, cooperate with the Holders to
      facilitate the timely preparation and delivery of certificates
      representing Registrable Securities to be delivered to a transferee
      pursuant to the Registration Statement, which certificates shall be free,
      to the extent permitted by the Merger Agreement, of all restrictive
      legends, and to enable such Registrable Securities to be in such
      denominations and registered in such names as any such Holders may
      request.

            (j) Upon the occurrence of any event contemplated by Section
      3(c)(v), as promptly as reasonably possible, prepare a supplement or
      amendment, including a post-effective amendment, to the Registration
      Statement or a supplement to the related Prospectus or any document
      incorporated or deemed to be incorporated therein by reference, and file
      any other required document so that, as thereafter delivered, neither the
      Registration Statement nor such Prospectus will contain an untrue
      statement of a material fact or omit to state a material fact required to
      be stated therein or necessary to make the statements therein, in light of
      the circumstances under which they were made, not misleading. If the
      Company notifies the Holders in accordance with clauses (ii) through (v)
      of Section 3(c) above to suspend the use of any Prospectus until the
      requisite changes to such Prospectus have been made, then the Holders
      shall suspend use of such Prospectus. The Company will use its best
      efforts to ensure that the use of the Prospectus may be resumed as
      promptly as is practicable. The Company shall be entitled to exercise its
      right under this Section 3(j) to suspend the availability of a
      Registration Statement and

                                        6
<PAGE>

      Prospectus for a period not to exceed 60 days (which need not be
      consecutive days) in any 12 month period.

            (k) Comply with all applicable rules and regulations of the
      Commission.

            (l) The Company may require each selling Holder to furnish to the
      Company a certified statement as to the number of shares of Common Stock
      beneficially owned by such Holder and, if required by the Commission, the
      person thereof that has voting and dispositive control over the shares.
      During any periods that the Company is unable to meet its obligations
      hereunder with respect to the registration of the Registrable Securities
      solely because any Holder fails to furnish such information within three
      Trading Days of the Company's request, any liquidated damages that are
      accruing at such time as to such Holder only shall be tolled and any Event
      that may otherwise occur solely because of such delay shall be suspended
      as to such Holder only, until such information is delivered to the
      Company.

      4. Registration Expenses. All fees and expenses incident to the
performance of or compliance with this Agreement by the Company shall be borne
by the Company whether or not any Registrable Securities are sold pursuant to
the Registration Statement. The fees and expenses referred to in the foregoing
sentence shall include, without limitation, (i) all registration and filing fees
(including, without limitation, fees and expenses (A) with respect to filings
required to be made with the primary trading market on which the Common Stock is
then listed for trading, (B) in compliance with applicable state securities or
Blue Sky laws reasonably agreed to by the Company in writing (including, without
limitation, fees and disbursements of counsel for the Company in connection with
Blue Sky qualifications or exemptions of the Registrable Securities and
determination of the eligibility of the Registrable Securities for investment
under the laws of such jurisdictions as requested by the Holders) and (C) if not
previously paid by the Company in connection with an Issuer Filing, with respect
to any filing that may be required to be made by any broker through which a
Holder intends to make sales of Registrable Securities with NASD Regulation,
Inc. pursuant to the NASD Rule 2710, so long as the broker is receiving no more
than a customary brokerage commission in connection with such sale, (ii)
printing expenses (including, without limitation, expenses of printing
certificates for Registrable Securities and of printing prospectuses if the
printing of prospectuses is reasonably requested by the holders of a majority of
the Registrable Securities included in the Registration Statement), (iii)
messenger, telephone and delivery expenses, (iv) fees and disbursements of
counsel for the Company, (v) Securities Act liability insurance, if the Company
so desires such insurance, and (vi) fees and expenses of all other Persons
retained by the Company in connection with the consummation of the transactions
contemplated by this Agreement. In addition, the Company shall be responsible
for all of its internal expenses incurred in connection with the consummation of
the transactions contemplated by this Agreement (including, without limitation,
all salaries and expenses of its officers and employees performing legal or
accounting duties), the expense of any annual audit and the fees and expenses
incurred in connection with the listing of the Registrable Securities on any
securities exchange as required hereunder. In no event shall the Company be
responsible for any broker or similar commissions or, except to the extent
provided for in the Transaction Documents, any legal fees or other costs of the
Holders.

                                        7
<PAGE>

      5. Indemnification

            (a) Indemnification by the Company. The Company shall,
      notwithstanding any termination of this Agreement, indemnify and hold
      harmless each Holder, the officers, directors, agents, brokers (including
      brokers who offer and sell Registrable Securities as principal as a result
      of a pledge or any failure to perform under a margin call of Common
      Stock), investment advisors and employees of each of them, each Person who
      controls any such Holder (within the meaning of Section 15 of the
      Securities Act or Section 20 of the Exchange Act) and the officers,
      directors, agents and employees of each such controlling Person, to the
      fullest extent permitted by applicable law, from and against any and all
      losses, claims, damages, liabilities, costs (including, without
      limitation, reasonable attorneys' fees) and expenses (collectively,
      "Losses"), as incurred, arising out of or relating to any ------ untrue or
      alleged untrue statement of a material fact contained in the Registration
      Statement, any Prospectus or any form of prospectus or in any amendment or
      supplement thereto or in any preliminary prospectus, or arising out of or
      relating to any omission or alleged omission of a material fact required
      to be stated therein or necessary to make the statements therein (in the
      case of any Prospectus or form of prospectus or supplement thereto, in
      light of the circumstances under which they were made) not misleading,
      except to the extent, but only to the extent, that (i) such untrue
      statements or omissions are based solely upon information regarding such
      Holder furnished in writing to the Company by such Holder expressly for
      use therein, or to the extent that such information relates to such Holder
      or such Holder's proposed method of distribution of Registrable Securities
      and was reviewed and expressly approved in writing by such Holder
      expressly for use in the Registration Statement, such Prospectus or such
      form of Prospectus or in any amendment or supplement thereto (it being
      understood that the Holder has approved Annex A hereto for this purpose)
      or (ii) in the case of an occurrence of an event of the type specified in
      Section 3(c)(ii)-(v), the use by such Holder of an outdated or defective
      Prospectus after the Company has notified such Holder in writing that the
      Prospectus is outdated or defective and prior to the receipt by such
      Holder of the Advice contemplated in Section 6(c). The Company shall
      notify the Holders promptly of the institution, threat or assertion of any
      Proceeding of which the Company is aware in connection with the
      transactions contemplated by this Agreement.

            (b) Indemnification by Holders. Each Holder shall, severally and not
      jointly, indemnify and hold harmless the Company, its directors, officers,
      agents and employees, each Person who controls the Company (within the
      meaning of Section 15 of the Securities Act and Section 20 of the Exchange
      Act), and the directors, officers, agents or employees of such controlling
      Persons, to the fullest extent permitted by applicable law, from and
      against all Losses, as incurred, to the extent arising out of or based
      solely upon: (x) such Holder's failure to comply with the prospectus
      delivery requirements of the Securities Act or (y) any untrue or alleged
      untrue statement of a material fact contained in any Registration
      Statement, any Prospectus, or any form of prospectus, or in any amendment
      or supplement thereto or in any preliminary prospectus, or arising out of
      or relating to any omission or alleged omission of a material fact
      required to be stated therein or necessary to make the statements therein
      not misleading (i) to the extent, but only to the extent, that such untrue
      statement or omission is contained in any information so furnished in
      writing by such Holder to the Company specifically for inclusion in the

                                        8
<PAGE>

      Registration Statement or such Prospectus or (ii) to the extent that (1)
      such untrue statements or omissions are based solely upon information
      regarding such Holder furnished in writing to the Company by such Holder
      expressly for use therein, or to the extent that such information relates
      to such Holder or such Holder's proposed method of distribution of
      Registrable Securities and was reviewed and expressly approved in writing
      by such Holder expressly for use in the Registration Statement (it being
      understood that the Holder has approved Annex A hereto for this purpose),
      such Prospectus or such form of Prospectus or in any amendment or
      supplement thereto or (2) in the case of an occurrence of an event of the
      type specified in Section 3(c)(ii)-(v), the use by such Holder of an
      outdated or defective Prospectus after the Company has notified such
      Holder in writing that the Prospectus is outdated or defective and prior
      to the receipt by such Holder of the Advice contemplated in Section 6(c).
      In no event shall the liability of any selling Holder hereunder be greater
      in amount than the dollar amount of the net proceeds received by such
      Holder upon the sale of the Registrable Securities giving rise to such
      indemnification obligation.

            (c) Conduct of Indemnification Proceedings. If any Proceeding shall
      be brought or asserted against any Person entitled to indemnity hereunder
      (an "Indemnified Party"), such Indemnified Party shall promptly notify the
      Person from whom indemnity is sought (the "Indemnifying Party") in
      writing, and the Indemnifying Party shall have the right to assume the
      defense thereof, including the employment of counsel reasonably
      satisfactory to the Indemnified Party and the payment of all fees and
      expenses incurred in connection with defense thereof; provided, that the
      failure of any Indemnified Party to give such notice shall not relieve the
      Indemnifying Party of its obligations or liabilities pursuant to this
      Agreement, except (and only) to the extent that it shall be finally
      determined by a court of competent jurisdiction (which determination is
      not subject to appeal or further review) that such failure shall have
      prejudiced the Indemnifying Party.

            An Indemnified Party shall have the right to employ separate counsel
      in any such Proceeding and to participate in the defense thereof, but the
      fees and expenses of such counsel shall be at the expense of such
      Indemnified Party or Parties unless: (1) the Indemnifying Party has agreed
      in writing to pay such fees and expenses; (2) the Indemnifying Party shall
      have failed promptly to assume the defense of such Proceeding and to
      employ counsel reasonably satisfactory to such Indemnified Party in any
      such Proceeding; or (3) the named parties to any such Proceeding
      (including any impleaded parties) include both such Indemnified Party and
      the Indemnifying Party, and such Indemnified Party shall reasonably
      believe that a material conflict of interest is likely to exist if the
      same counsel were to represent such Indemnified Party and the Indemnifying
      Party (in which case, if such Indemnified Party notifies the Indemnifying
      Party in writing that it elects to employ separate counsel at the expense
      of the Indemnifying Party, the Indemnifying Party shall not have the right
      to assume the defense thereof and the reasonable fees and expenses of one
      separate counsel shall be at the expense of the Indemnifying Party). The
      Indemnifying Party shall not be liable for any settlement of any such
      Proceeding effected without its written consent, which consent shall not
      be unreasonably withheld. No Indemnifying Party shall, without the prior
      written consent of the Indemnified Party, effect any settlement of any
      pending Proceeding in respect of which any Indemnified Party is a party,
      unless such settlement includes an unconditional

                                        9
<PAGE>

      release of such Indemnified Party from all liability on claims that are
      the subject matter of such Proceeding.

            Subject to the terms of this Agreement, all reasonable fees and
      expenses of the Indemnified Party (including reasonable fees and expenses
      to the extent incurred in connection with investigating or preparing to
      defend such Proceeding in a manner not inconsistent with this Section)
      shall be paid to the Indemnified Party, as incurred, within ten Trading
      Days of written notice thereof to the Indemnifying Party; provided, that
      the Indemnified Party shall promptly reimburse the Indemnifying Party for
      that portion of such fees and expenses applicable to such actions for
      which such Indemnified Party is not entitled to indemnification hereunder,
      determined based upon the relative faults of the parties.

            (d) Contribution. If the indemnification under Section 5(a) or 5(b)
      is unavailable to an Indemnified Party or insufficient to hold an
      Indemnified Party harmless for any Losses, then each Indemnifying Party
      shall contribute to the amount paid or payable by such Indemnified Party,
      in such proportion as is appropriate to reflect the relative fault of the
      Indemnifying Party and Indemnified Party in connection with the actions,
      statements or omissions that resulted in such Losses as well as any other
      relevant equitable considerations. The relative fault of such Indemnifying
      Party and Indemnified Party shall be determined by reference to, among
      other things, whether any action in question, including any untrue or
      alleged untrue statement of a material fact or omission or alleged
      omission of a material fact, has been taken or made by, or relates to
      information supplied by, such Indemnifying Party or Indemnified Party, and
      the parties' relative intent, knowledge, access to information and
      opportunity to correct or prevent such action, statement or omission. The
      amount paid or payable by a party as a result of any Losses shall be
      deemed to include, subject to the limitations set forth in this Agreement,
      any reasonable attorneys' or other reasonable fees or expenses incurred by
      such party in connection with any Proceeding to the extent such party
      would have been indemnified for such fees or expenses if the
      indemnification provided for in this Section was available to such party
      in accordance with its terms.

            The parties hereto agree that it would not be just and equitable if
      contribution pursuant to this Section 5(d) were determined by pro rata
      allocation or by any other method of allocation that does not take into
      account the equitable considerations referred to in the immediately
      preceding paragraph. Notwithstanding the provisions of this Section 5(d),
      no Holder shall be required to contribute, in the aggregate, any amount in
      excess of the amount by which the proceeds actually received by such
      Holder from the sale of the Registrable Securities subject to the
      Proceeding exceeds the amount of any damages that such Holder has
      otherwise been required to pay by reason of such untrue or alleged untrue
      statement or omission or alleged omission, except in the case of fraud by
      such Holder.

            The indemnity and contribution agreements contained in this Section
      are in addition to any liability that the Indemnifying Parties may have to
      the Indemnified Parties.

                                       10
<PAGE>

      6. Miscellaneous

            (a) Remedies. In the event of a breach by the Company or by a
      Holder, of any of their 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. The Company and each Holder agree that monetary damages would
      not provide adequate compensation for any losses incurred by reason of a
      breach by it of any of the provisions of this Agreement and hereby further
      agrees that, in the event of any action for specific performance in
      respect of such breach, it shall waive the defense that a remedy at law
      would be adequate.

            (b) 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.

            (c) 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 any event of the kind described in Section
      3(c), such Holder will forthwith discontinue disposition of such
      Registrable Securities under the 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 will
      use its best efforts to ensure that the use of the Prospectus may be
      resumed as promptly as it practicable. The Company agrees and acknowledges
      that any periods during which the Holder is required to discontinue the
      disposition of the Registrable Securities hereunder shall be subject to
      the provisions of Section 2(b).

            (d) 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 the stock option or other employee
      benefit plans, then the Company shall send to each Holder a written notice
      of such determination and, if within fifteen days after the date 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, subject to customary
      underwriter cutbacks applicable to all holders of registration rights.

            (e) 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

                                       11
<PAGE>

      same shall be in writing and signed by the Company and the Holder's of a
      majority of the Registrable Securities then outstanding. 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 Holders
      and that does not directly or indirectly affect the rights of other
      Holders may be given by Holders of 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.

            (f) Notices. Any and all notices or other communications or
      deliveries required or permitted to be provided hereunder shall be
      delivered as set forth in the Merger Agreement.

            (g) 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 all of the Holders of the then-outstanding
      Registrable Securities. Each Holder may assign their respective rights
      hereunder in the manner and to the Persons as permitted under the Merger
      Agreement.

            (h) No Inconsistent Agreements. Neither the Company nor any of its
      subsidiaries has entered, as of the date hereof, nor shall the Company or
      any of its subsidiaries, on or after the date of this Agreement, enter
      into any agreement with respect to its securities, that would have the
      effect of impairing the rights granted to the Holders in this Agreement or
      otherwise conflicts with the provisions hereof.

            (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
      determined with the provisions of the Merger Agreement.

            (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 commercially reasonable efforts to find and
      employ an alternative means to achieve the same or substantially the same
      result as

                                       12
<PAGE>

      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.

            (n) Independent Nature of Holders' Obligations and Rights. The
      obligations of each Holder hereunder are several and not joint with the
      obligations of any other Holder hereunder, and no Holder shall be
      responsible in any way for the performance of the obligations of any other
      Holder hereunder. Nothing contained herein or in any other agreement or
      document delivered at any closing, and no action taken by any Holder
      pursuant hereto or thereto, shall be deemed to constitute the Holders as a
      partnership, an association, a joint venture or any other kind of entity,
      or create a presumption that the Holders are in any way acting in concert
      with respect to such obligations or the transactions contemplated by this
      Agreement. Each Holder shall be entitled to protect and enforce its
      rights, including without limitation the rights arising out of this
      Agreement, and it shall not be necessary for any other Holder to be joined
      as an additional party in any proceeding for such purpose.

                            *************************

                                       13
<PAGE>

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

                              GENIUS PRODUCTS, INC.

                              By: /s/ Trevor Drinkwater
                                  --------------------------------
                                  Name: Trevor Drinkwater
                                  Title: CEO

                       [SIGNATURE PAGE OF HOLDERS FOLLOWS]

<PAGE>

                      [HOLDER'S SIGNATURE PAGE TO GNPI RRA]

Name of Holder: American Vantage Companies

Signature of Authorized Signatory of Holder: /s/ Ronald J. Tassinari
                                             --------------------------
Name of Authorized Signatory: Ronald J. Tassinari
Title of Authorized Signatory: CEO

                           [SIGNATURE PAGES CONTINUE]

                                       15
<PAGE>

                                     ANNEX A

                              Plan of Distribution

      The selling stockholders (the "Selling Stockholders") of the common stock
("Common Stock") of Genius Products, Inc. a Delaware corporation (the "Company")
and any of their pledgees, assignees and successors-in-interest may, from time
to time, sell any or all of their shares of Common Stock on any stock exchange,
market or trading facility on which the shares are traded or in private
transactions. These sales may be at fixed or negotiated prices. The Selling
Stockholders may use any one or more of the following methods when selling
shares:

         -  ordinary brokerage transactions and transactions in which the
            broker-dealer solicits Stockholders;

         -  block trades in which the broker-dealer will attempt to sell the
            shares as agent but may position and resell a portion of the block
            as principal to facilitate the transaction;

         -  purchases by a broker-dealer as principal and resale by the
            broker-dealer for its account;

         -  an exchange distribution in accordance with the rules of the
            applicable exchange;

         -  privately negotiated transactions;

         -  settlement of short sales entered into after the date of this
            prospectus;

         -  broker-dealers may agree with the Selling Stockholders to sell a
            specified number of such shares at a stipulated price per share;

         -  a combination of any such methods of sale;

         -  through the writing or settlement of options or other hedging
            transactions, whether through an options exchange or otherwise; or

         -  any other method permitted pursuant to applicable law.

      The Selling Stockholders may also sell shares under Rule 144 under the
Securities Act of 1933, as amended (the "Securities Act"), if available, rather
than under this prospectus.

      Broker-dealers engaged by the Selling Stockholders may arrange for other
brokers-dealers to participate in sales. Broker-dealers may receive commissions
or discounts from the Selling Stockholders (or, if any broker-dealer acts as
agent for the Stockholder of shares, from the Stockholder) in amounts to be
negotiated, but, except as set forth in a supplement to this Prospectus, in the
case of an agency transaction not in excess of a customary brokerage commission
in compliance with NASDR Rule 2440; and in the case of a principal transaction a
markup or markdown in compliance with NASDR IM-2440.

                                       16
<PAGE>

      In connection with the sale of the Common Stock or interests therein, the
Selling Stockholders may enter into hedging transactions with broker-dealers or
other financial institutions, which may in turn engage in short sales of the
Common Stock in the course of hedging the positions they assume. The Selling
Stockholders may also sell shares of the Common Stock short and deliver these
securities to close out their short positions, or loan or pledge the Common
Stock to broker-dealers that in turn may sell these securities. The Selling
Stockholders may also enter into option or other transactions with
broker-dealers or other financial institutions or the creation of one or more
derivative securities which require the delivery to such broker-dealer or other
financial institution of shares offered by this prospectus, which shares such
broker-dealer or other financial institution may resell pursuant to this
prospectus (as supplemented or amended to reflect such transaction).

      The Selling Stockholders and any broker~dealers or agents that are
involved in selling the shares may be deemed to be "underwriters" within the
meaning of the Securities Act in connection with such sales. In such event, any
commissions received by such broker~dealers or agents and any profit on the
resale of the shares purchased by them may be deemed to be underwriting
commissions or discounts under the Securities Act. Each Selling Stockholder has
informed the Company that it does not have any written or oral agreement or
understanding, directly or indirectly, with any person to distribute the Common
Stock. In no event shall any broker-dealer receive fees, commissions and markups
which, in the aggregate, would exceed eight percent (8%).

      The Company is required to pay certain fees and expenses incurred by the
Company incident to the registration of the shares. The Company has agreed to
indemnify the Selling Stockholders against certain losses, claims, damages and
liabilities, including liabilities under the Securities Act.

      Because Selling Stockholders may be deemed to be "underwriters" within the
meaning of the Securities Act, they will be subject to the prospectus delivery
requirements of the Securities Act. In addition, any securities covered by this
prospectus which qualify for sale pursuant to Rule 144 under the Securities Act
may be sold under Rule 144 rather than under this prospectus. Each Selling
Stockholder has advised us that they have not entered into any written or oral
agreements, understandings or arrangements with any underwriter or broker-dealer
regarding the sale of the resale shares. There is no underwriter or coordinating
broker acting in connection with the proposed sale of the resale shares by the
Selling Stockholders.

      We agreed to keep this prospectus effective until the earlier of (i) the
date on which the shares may be resold by the Selling Stockholders without
registration and without regard to any volume limitations by reason of Rule
144(e) under the Securities Act or any other rule of similar effect or (ii) all
of the shares have been sold pursuant to the prospectus or Rule 144 under the
Securities Act or any other rule of similar effect. The resale shares will be
sold only through registered or licensed brokers or dealers if required under
applicable state securities laws. In addition, in certain states, the resale
shares may not be sold unless they have been registered or qualified for sale in
the applicable state or an exemption from the registration or qualification
requirement is available and is complied with.

                                       17
<PAGE>

      Under applicable rules and regulations under the Exchange Act, any person
engaged in the distribution of the resale shares may not simultaneously engage
in market making activities with respect to the Common Stock for a period of two
business days prior to the commencement of the distribution. In addition, the
Selling Stockholders will be subject to applicable provisions of the Exchange
Act and the rules and regulations thereunder, including Regulation M, which may
limit the timing of purchases and sales of shares of the Common Stock by the
Selling Stockholders or any other person. We will make copies of this prospectus
available to the Selling Stockholders and have informed them of the need to
deliver a copy of this prospectus to each Stockholder at or prior to the time of
the sale.

                                       18
<PAGE>

                                                                         ANNEX B

                              GENIUS PRODUCTS, INC.

                 SELLING SECURITYHOLDER NOTICE AND QUESTIONNAIRE

      The undersigned beneficial owner of common stock, par value $0.0001 per
share (the "Common Stock"), of Genius Products, Inc. a Delaware corporation (the
"Company"), (the "Registrable Securities") understands that the Company has
filed or intends to file with the Securities and Exchange Commission (the
"Commission") a registration statement on an appropriate form (the "Registration
Statement") for the registration and resale under Rule 415 of the Securities Act
of 1933, as amended (the "Securities Act"), of the Registrable Securities, in
accordance with the terms of the Registration Rights Agreement, dated as of
March 21, 2005 (the "Registration Rights Agreement"), among the Company and the
Stockholders named therein. A copy of the Registration Rights Agreement is
available from the Company upon request at the address set forth below. All
capitalized terms not otherwise defined herein shall have the meanings ascribed
thereto in the Registration Rights Agreement.

      Certain legal consequences arise from being named as a selling
securityholder in the Registration Statement and the related prospectus.
Accordingly, holders and beneficial owners of Registrable Securities are advised
to consult their own securities law counsel regarding the consequences of being
named or not being named as a selling securityholder in the Registration
Statement and the related prospectus.

                                     NOTICE

      The undersigned beneficial owner (the "Selling Securityholder") of
Registrable Securities hereby elects to include the Registrable Securities owned
by it and listed below in Item 3 (unless otherwise specified under such Item 3)
in the Registration Statement.

                                       19
<PAGE>

The undersigned hereby provides the following information to the Company and
represents and warrants that such information is accurate:

                                  QUESTIONNAIRE

1. NAME.

      (a)   Full Legal Name of Selling Securityholder

            ____________________________________________________________________

      (b)   Full Legal Name of Registered Holder (if not the same as (a) above)
            through which Registrable Securities Listed in Item 3 below are
            held:

            ____________________________________________________________________

      (c)   Full Legal Name of Natural Control Person (which means a natural
            person who directly or indirectly alone or with others has power to
            vote or dispose of the securities covered by the questionnaire):

            ____________________________________________________________________

2. ADDRESS FOR NOTICES TO SELLING SECURITYHOLDER:

________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
Telephone: _____________________________________________________________________
Fax: ___________________________________________________________________________
Contact Person: ________________________________________________________________

3. BENEFICIAL OWNERSHIP OF REGISTRABLE SECURITIES:

      (a)   Type and Number of Registrable Securities beneficially owned:

            ____________________________________________________________________
            ____________________________________________________________________
            ____________________________________________________________________

                                       20
<PAGE>

4. BROKER-DEALER STATUS:

      (a)   Are you a broker-dealer?

                                 Yes [ ] No [ ]

      Note: If yes, the Commission's staff has indicated that you should be
            identified as an underwriter in the Registration Statement.

      (b)   Are you an affiliate of a broker-dealer?

                                 Yes [ ] No [ ]

      (c)   If you are an affiliate of a broker-dealer, do you certify that you
            bought the Registrable Securities in the ordinary course of
            business, and at the time of the purchase of the Registrable
            Securities to be resold, you had no agreements or understandings,
            directly or indirectly, with any person to distribute the
            Registrable Securities?

                                 Yes [ ] No [ ]

      Note: If no, the Commission's staff has indicated that you should be
            identified as an underwriter in the Registration Statement.

5. BENEFICIAL OWNERSHIP OF OTHER SECURITIES OF THE COMPANY OWNED BY THE SELLING
   SECURITYHOLDER.

      Except as set forth below in this Item 5, the undersigned is not the
      beneficial or registered owner of any securities of the Company other than
      the Registrable Securities listed above in Item 3.

      (a)   Type and Amount of Other Securities beneficially owned by the
            Selling Securityholder:

            ____________________________________________________________________
            ____________________________________________________________________

                                       21
<PAGE>

6. RELATIONSHIPS WITH THE COMPANY:

      Except as set forth below, neither the undersigned nor any of its
      affiliates, officers, directors or principal equity holders (owners of 5%
      of more of the equity securities of the undersigned) has held any position
      or office or has had any other material relationship with the Company (or
      its predecessors or affiliates) during the past three years.

      State any exceptions here:

      __________________________________________________________________________
      __________________________________________________________________________

      The undersigned agrees to promptly notify the Company of any inaccuracies
or changes in the information provided herein that may occur subsequent to the
date hereof at any time while the Registration Statement remains effective.

      By signing below, the undersigned consents to the disclosure of the
information contained herein in its answers to Items 1 through 6 and the
inclusion of such information in the Registration Statement and the related
prospectus and any amendments or supplements thereto. The undersigned
understands that such information will be relied upon by the Company in
connection with the preparation or amendment of the Registration Statement and
the related prospectus.

      IN WITNESS WHEREOF the undersigned, by authority duly given, has caused
this Notice and Questionnaire to be executed and delivered either in person or
by its duly authorized agent.

Dated: ______________________       Beneficial Owner: __________________________

                                    By: ________________________________________
                                        Name:
                                        Title:

PLEASE FAX A COPY OF THE COMPLETED AND EXECUTED NOTICE AND QUESTIONNAIRE, AND
RETURN THE ORIGINAL BY OVERNIGHT MAIL, TO:

                                       22

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