Document:

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                                                                   EXHIBIT 10.37
                           COLLATERAL AGENT AGREEMENT

          COLLATERAL AGENT AGREEMENT (this "Agreement") dated as of February 6,
2004, among Wachovia Bank, National Association (the "Collateral Agent") and the
parties identified on SCHEDULE A hereto (each, individually, a "Lender" and
collectively, the "Lenders"), who hold or have subscribed for Secured Promissory
Notes in the principal amounts set forth on SCHEDULE A hereto (collectively, the
"Notes") issued or to be issued by Genius Products, Inc., a Nevada corporation
("Genius").

         WHEREAS, the Lenders are making loans to Genius to be secured by
certain Collateral (as defined below); and

         WHEREAS, it is desirable to provide for the orderly administration of
such Collateral by requiring each Lender to appoint the Collateral Agent, and
the Collateral Agent has agreed to accept such appointment and to receive, hold
and deliver such Collateral, all upon the terms and subject to the conditions
hereinafter set forth; and

          WHEREAS, it is desirable to allocate the enforcement of certain rights
of the Lenders under the Notes for the orderly administration thereof.

          NOW, THEREFORE, in consideration of the premises set forth herein and
for other good and valuable consideration, the parties hereto agree as follows:

          1. COLLATERAL.

              (a) Contemporaneously with the execution and delivery of this
Agreement by the Collateral Agent and the Lenders, (i) the Collateral Agent has
or will have entered into a Security Agreement between the Collateral Agent and
Genius (the "Security Agreement"), regarding the grant of a security interest in
and lien on assets owned by Genius (such assets are referred to herein as the
"Collateral") to the Collateral Agent, for the benefit of the Lenders, and (ii)
Genius has or will have issued the Notes to the Lenders.

              (b) For purposes solely of perfection of the security interests
granted to the Collateral Agent, as agent on behalf of the Lenders, and on its
own behalf under the Security Agreement, the Collateral Agent hereby
acknowledges that any Collateral held by the Collateral Agent is held for the
benefit of the Lenders in accordance with this Agreement and the Security
Agreement. No reference to the Security Agreement or any other instrument or
document shall be deemed to incorporate any term or provision thereof into this
Agreement unless expressly so provided.

              (c) The Collateral Agent is to distribute in accordance with the
Security Agreement any proceeds received from the Collateral which are
distributable to the Lenders in proportion to their respective interests in the
Obligations (as defined in the Security Agreement).

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          2. APPOINTMENT OF THE COLLATERAL AGENT.

              The Lenders hereby appoint the Collateral Agent (and the
Collateral Agent hereby accepts such appointment) to take any action upon the
occurrence of an Event of Default (as defined in the Notes) that is not cured,
including, without limitation, the application of any cash collateral received
by the Collateral Agent to the payment of the Obligations and the exercise of
any remedies given to the Collateral Agent pursuant to the Security Agreement
that the Collateral Agent deems necessary or proper for the administration of
the Collateral pursuant to the Security Agreement. Upon disposition of the
Collateral in accordance with the Security Agreement, the Collateral Agent shall
promptly distribute any cash or Collateral in accordance with Section 9.3 of the
Security Agreement.

          3. ACTION BY THE MAJORITY IN INTEREST.

              (a) CERTAIN ACTIONS. Each of the Lenders covenants and agrees that
only a Majority in Interest shall have the right, but not the obligation, to
undertake the following actions (it being expressly understood that less than a
Majority in Interest hereby expressly waive the following rights that they may
otherwise have under the Notes, but only insofar as such waiver affects their
right to receive proceeds from the Collateral):

                        (i) ACCELERATION. If an Event of Default occurs, after
the expiration of any applicable grace and/or cure period, a Majority in
Interest may, on behalf of all the Lenders, instruct the Collateral
Agent to provide to Genius notice to cure such default and/or declare the unpaid
principal amount of the Notes to be due and payable, together with any and all
accrued interest thereon and all costs payable pursuant to such Notes;

                        (ii) ENFORCEMENT. Upon the occurrence of any Event of
Default after the expiration of any applicable grace and/or cure period during
which such period Genius fails to cure such Event of Default, a
Majority in Interest may instruct the Collateral Agent to proceed to protect,
exercise and enforce against Genius, on behalf of all the Lenders, their rights
and remedies under the Notes, and such other rights and remedies as are provided
by law or equity;

                        (iii) WAIVER OF PAST DEFAULTS. A Majority in Interest
may instruct the Collateral Agent to waive any Event of Default by written
notice to Genius, and the other Lenders; and

                        (iv) AMENDMENT. A Majority in Interest may instruct the
Collateral Agent to waive, amend, supplement or modify any term, condition or
other provision in the Notes or Security Agreement in accordance with the terms
of the Notes or Security Agreement so long as such waiver, amendment, supplement
or modification is made with respect to all of the Notes and with the same force
and effect with respect to each of the Notes.

                                       2

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              (b) PERMITTED SUBORDINATION. A Majority in Interest may instruct
the Collateral Agent to agree to subordinate any Collateral to any claim and may
enter into any agreement with Genius to evidence such subordination; provided,
however, that subsequent to any such subordination, each Note shall remain pari
passu with the other Notes held among the Lenders.

              (c) FURTHER ACTIONS. A Majority in Interest may instruct the
Collateral Agent to take any action that it may take under this Agreement by
instructing the Collateral Agent in writing to take such action on behalf of all
the Lenders.

              (d) MAJORITY IN INTEREST. For so long as any obligations remain
outstanding on the Notes, Majority in Interest shall mean Lenders who hold not
less than seventy-five percent (75%) of the Obligations.

         4. POWER OF ATTORNEY.

              (a) To effectuate the terms and provisions hereof, the Lenders
hereby appoint the Collateral Agent as their attorney-in-fact (and the
Collateral Agent hereby accepts such appointment) for the purpose of carrying
out the provisions of this Agreement including, without limitation, taking any
action on behalf of, or at the instruction of, the Majority in Interest at the
written direction of the Majority in Interest and executing any consent
authorized pursuant to this Agreement and taking any action and executing any
instrument that the Collateral Agent may deem necessary or advisable (and
lawful) to accomplish the purposes hereof.

              (b) All acts done under the foregoing authorization are hereby
ratified and approved and neither the Collateral Agent nor any designee nor
agent thereof shall be liable for any acts of commission or omission, for any
error of judgment, for any mistake of fact or law except for acts of gross
negligence or willful misconduct as determined by a court of competent
jurisdiction.

              (c) This power of attorney, being coupled with an interest, is
irrevocable while this Agreement remains in effect.

         5. EXPENSES OF THE COLLATERAL AGENT. Genius shall pay any and all costs
and expenses incurred by the Collateral Agent in connection with the
transactions contemplated hereby, including, without limitation, any and all
costs and expenses arising from or in connection with (a) the preparation of
this Agreement and all waivers, releases, discharges, satisfactions,
modifications and amendments of this Agreement, (b) the administration and
holding of the Collateral, (c) insurance expenses, and (d) the enforcement,
protection and adjudication of the parties' rights hereunder by the Collateral
Agent, including, without limitation, the reasonable disbursements, expenses and
fees of the attorneys the Collateral Agent may retain, if any.

                                       3

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         6. RELIANCE ON DOCUMENTS AND EXPERTS. The Collateral Agent shall be
entitled to rely upon any notice, consent, certificate, affidavit, statement,
paper, document, writing or communication (which may be by telegram, cable,
telex, telecopier, or telephone) reasonably believed by it to be genuine and to
have been signed, sent or made by the proper person or persons, and upon
opinions and advice of its own legal counsel, independent public accountants and
other experts selected by the Collateral Agent.

         7. DUTIES OF THE COLLATERAL AGENT; STANDARD OF CARE.

              (a) The Collateral Agent's duties are only those expressly set
forth in this Agreement, and the Collateral Agent hereby is authorized to
perform those duties in accordance with commercially reasonable practices. The
Collateral Agent shall have no duty or responsibility to (i) determine whether
the Collateral is sufficient to secure Genius's liabilities under the Notes, or
(ii) inquire as to the provisions of any other agreement or instrument. The
Collateral Agent may be liable only for its own gross negligence or willful
misconduct, when a court of competent jurisdiction determines that the
Collateral Agent has acted in such manner. The Collateral Agent may exercise or
otherwise enforce any of its rights, powers, privileges, remedies and interests
under this Agreement and applicable law or perform any of its duties under this
Agreement by or through its officers, employees, attorneys, or agents.

              (b) The Collateral Agent shall act in good faith and with that
degree of care that an ordinarily prudent person in a like position would use
under similar circumstances.

              (c) Any funds held by the Collateral Agent hereunder need not be
segregated from other funds except to the extent required by law. The Collateral
Agent shall be under no liability for interest on any funds received by it
hereunder.

              (d) The Collateral Agent may rely upon any notice, instruction,
request or other instrument, not only as to its due execution, validity and
effectiveness, but also as to the truth and accuracy of any information
contained therein, which the Collateral Agent shall believe to be genuine and to
have been signed or presented by the person or parties purporting to sign the
same, including, without limitation, instructions given by letter, facsimile
transmission, telegram, teletype, cablegram, or electronic media, such
instructions appear on their face to have been signed, sent or presented by the
proper party or parties. The Collateral Agent shall not incur any liability to
anyone resulting from actions taken by the Collateral Agent in reliance in good
faith on such instructions.

               (e) Notwithstanding anything contained herein to the contrary, no
provision of this Agreement shall require the Collateral Agent to take any
action which, in the Collateral Agent's reasonable judgment, would result in (i)
any violation of this Agreement or any provision of law, or (ii) any potential
liability to the Collateral Agent.

               (f) The Collateral Agent may confer with counsel of its own
choice in relation to matters arising under this Agreement and shall have full
and complete authorization from the other parties hereunder for any action taken
or suffered by it under this Agreement or under any transaction contemplated
hereby in good faith and in accordance with opinion of such counsel.

                                       4

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            (g) The Collateral Agent shall not be charged with knowledge or
notice of any fact or circumstance not specifically set forth herein. In no
event shall Collateral Agent be liable for incidental, indirect, special,
consequential or punitive damages (including, but not limited to lost profits),
even if the Collateral Agent has been advised of the likelihood of such loss or
damage and regardless of the form of action. The Collateral Agent shall not be
obligated to take any legal action or commence any proceeding in connection with
the Collateral, any account in which Collateral is deposited, this Agreement,
the Notes or the Security Agreement, or to appear in, prosecute or defend any
such legal action or proceeding.

               (h) The Collateral Agent is authorized, in its sole discretion,
to comply with orders issued or process entered by any court with respect to the
Collateral, without determination by the Collateral Agent of such court's
jurisdiction in the matter. If any portion of the Collateral is at any time
attached, garnished or levied upon under any court order, or in case the
payment, assignment, transfer, conveyance or delivery of any such property shall
be stayed or enjoined by any court order, or in case any order, judgment or
decree shall be made or entered by any court affecting such property or any part
thereof, then and in any such event, the Collateral Agent is authorized, in its
sole discretion, to rely upon and comply with any such order, writ, judgment or
decree which it is advised by legal counsel selected by it is binding upon it
without the need for appeal or other action; and if the Collateral Agent
complies with any such order, writ, judgment or decree, it shall not be liable
to any of the parties hereto or to any other person or entity by reason of such
compliance even though such order, writ, judgment or decree may be subsequently
reversed, modified, annulled, set aside or vacated.

               (i) The Collateral Agent shall have no obligation to monitor,
ensure or enforce compliance by Genius or the Lenders with any covenant or
agreement in this Agreement, the Notes, the Security Agreement or any other
agreement or instrument delivered in connection herewith. Further, the
Collateral Agent shall have no responsibility relative to compliance by any
party with the insurance, tax or other laws or regulations of any jurisdiction.

               (j) Any reference in this Agreement to the Collateral Agent
having access to the Collateral or any other fund or source for payment of fees,
expenses, indemnification or other amounts required to be paid by a party
hereunder shall not operate to limit the Collateral Agent's recourse to such
Collateral, fund or source and, to the extent the same is not sufficient to
satisfy the applicable obligation to the Collateral Agent, the same shall remain
a general full recourse obligation of the applicable party to the Collateral
Agent until paid in full.

              (k) Any review by the Collateral Agent of the Notes, the Security
Agreement or any separate undertaking between Genius and the Lenders shall be
solely for the Collateral Agent's own purposes. THE COLLATERAL AGENT HAS NO
RESPONSIBILITY RELATIVE TO THE TERMS OF ANY NOTE, SECURITY AGREEMENT, OR
SEPARATE UNDERTAKING, MAKES NO REPRESENTATION AS TO THE EFFECT OR ADEQUACY
THEREOF AND SHALL HAVE NO OBLIGATION TO ENSURE THAT THIS AGREEMENT OR ANY ACTION
RELATIVE TO THIS AGREEMENT CONFORMS THEREWITH.

                                       5

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         8. RESIGNATION. The Collateral Agent may resign and be discharged of
its duties hereunder at any time by giving written notice of such resignation to
the other parties hereto, stating the date such resignation is to take effect.
Within 15 days of the giving of such notice, a successor collateral agent shall
be appointed by the Majority in Interest; provided, however, that if the Lenders
are unable so to agree upon a successor within such time period, the successor
collateral agent may be a person designated by the Collateral Agent, and any and
all fees of such successor collateral agent shall be the joint and several
obligation of the Lenders. The Collateral Agent shall continue to serve until
the effective date of the resignation or until its successor accepts the
appointment and receives the Collateral held by the Collateral Agent but shall
not be obligated to take any action hereunder. The Collateral Agent may deposit
any Collateral with any court in New York that accepts such Collateral.

          9. EXCULPATION. The Collateral Agent and its officers, employees,
attorneys and agents, shall not incur any liability whatsoever for the holding
or delivery of documents or the taking of any other action in accordance with
the terms and provisions of this Agreement, for any mistake or error in
judgment, for compliance with instructions of the Majority in Interest and any
applicable law or any attachment, order or other directive of any court or other
authority (irrespective of any conflicting term or provision of this Agreement),
or for any act or omission of any other person engaged by the Collateral Agent
in connection with this Agreement, unless occasioned by the exculpated person's
gross negligence or willful misconduct, when a court of competent jurisdiction
determines that the exculpated party has acted in such manner; and each party
hereto hereby waives any and all claims and actions whatsoever against the
Collateral Agent and its officers, employees, attorneys and agents, arising out
of or related directly or indirectly to any or all of the foregoing acts,
omissions and circumstances.

         10. INDEMNIFICATION. The Lenders hereby agree to indemnify, reimburse
and hold harmless the Collateral Agent and its directors, officers, employees,
attorneys and agents, jointly and severally, from and against any and all
claims, liabilities, losses and expenses that may be imposed upon, incurred by,
or asserted against any of them, arising out of or related directly or
indirectly to this Agreement or the Collateral, including, without limitation,
(a) any loss, liability, costs or expenses arising out of or in connection with
the status of the Collateral Agent, (b) the reasonable fees and expenses of
counsel of the Collateral Agent, and (iii) any circumstance relating to any
insurance, tax or other laws or regulations of any jurisdiction pertaining to
the Collateral or the other parties hereto, except such as are occasioned by the
indemnified person's own gross negligence or willful misconduct, as determined
by a court of competent jurisdiction. The Lenders hereby acknowledge that the
foregoing indemnities shall survive the resignation or removal of the Collateral
Agent or the termination of this Agreement [and hereby grant the Collateral
Agent a lien, right of set-off and security interest in the Collateral for
paying compensation to, or reimbursement or indemnification of, the Collateral
Agent].

                                       6

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         11. MISCELLANEOUS.

              (a) RIGHTS AND REMEDIES NOT WAIVED. No act, omission or delay by
the Collateral Agent shall constitute a waiver of the Collateral Agent's rights
and remedies hereunder or otherwise. No single or partial waiver by the
Collateral Agent of any default hereunder or right or remedy that it may have
shall operate as a waiver of any other default, right or remedy or of the same
default, right or remedy on a future occasion.

              (b) GOVERNING LAW. This Agreement shall be governed by, and
construed in accordance with, the laws of the State of New York without regard
to principles of conflicts or choice of law (or any other law that would make
any substantive laws of any state other than the State of New York applicable
hereto).

              (c) WAIVER OF JURY TRIAL AND SETOFF; CONSENT TO JURISDICTION; ETC.

                  (i) In any litigation in any court with respect to, in
connection with, or arising out of this Agreement or any instrument or document
delivered pursuant to this Agreement, or the validity, protection,
interpretation, collection or enforcement hereof or thereof, or any other claim
or dispute howsoever arising, between the Collateral Agent and the Lenders or
any Lender, then each Lender, to the fullest extent it may legally do so, (i)
waives the right to interpose any setoff, recoupment, counterclaim or
cross-claim in connection with any such litigation, irrespective of the nature
of such setoff, recoupment, counterclaim or cross-claim, unless such setoff,
recoupment, counterclaim or cross-claim could not, by reason of any applicable
federal or state procedural laws, be interposed, pleaded or alleged in any other
action; and (ii) WAIVES TRIAL BY JURY IN CONNECTION WITH ANY SUCH LITIGATION AND
ANY RIGHT IT MAY HAVE TO CLAIM OR RECOVER IN ANY SUCH LITIGATION ANY SPECIAL,
EXEMPLARY, PUNITIVE OR CONSEQUENTIAL DAMAGES OR ANY DAMAGES OTHER THAN, OR IN
ADDITION TO, ACTUAL DAMAGES. EACH LENDER AGREES THAT THIS SECTION 11(c) IS A
SPECIFIC AND MATERIAL ASPECT OF THIS AGREEMENT AND ACKNOWLEDGE THAT THE
COLLATERAL AGENT WOULD NOT ENTER THIS AGREEMENT IF THIS SECTION 11(c) WERE NOT
PART OF THIS AGREEMENT.

                  (ii) Each Lender irrevocably consents to the exclusive
jurisdiction of any State or Federal Court located within the County of New
York, State of New York, in connection with any action or proceeding arising out
of or relating to this Agreement or any document or instrument delivered
pursuant to this Agreement or otherwise. In any such litigation, each Lender
waives, to the fullest extent it may effectively do so, personal service of any
summons, complaint or other process and agree that the service thereof may be
made by certified or registered mail directed to such Lender at its address for
notice determined in accordance with Section 11(e) hereof. Each Lender hereby
waives, to the fullest extent it may effectively do so, the defenses of forum
non conveniens and improper venue.

                                       7

<PAGE>

              (d) ADMISSIBILITY OF THIS AGREEMENT. Each of the Lenders agrees
that any copy of this Agreement signed by it and transmitted by telecopier for
delivery to the Collateral Agent shall be admissible in evidence as the original
itself in any judicial or administrative proceeding, whether or not the original
is in existence.

              (e) ADDRESS FOR NOTICES. Any notice or other communication under
the provisions of this Agreement shall be given in writing and delivered in
person, by reputable overnight courier or delivery service, by facsimile machine
(receipt confirmed) with a copy sent by first class mail on the date of
transmissions, or by registered or certified mail, return receipt requested,
directed to its addresses set forth below (or to any new address of which any
party hereto shall have informed the others by the giving of notice in the
manner provided herein):

              In the case of the Collateral Agent, to it at:

              Wachovia Bank, National Association
              1426 Main St., 17th Floor
              Mail Code SC 8358
              Columbia, SC 29201
              Phone:  (803) 765-3585
              Fax: (803) 765-3588
              Attention:  Toni B. Shumpert

              In the case of the Lenders, to the addresses and fax numbers set
              forth on SCHEDULE A hereto.

              In the case of Genius, to:

              Genius Products, Inc.
              11250 El Camino Real, Suite 100
              San Diego, CA 92130
              Phone: (858) 793-8840
              Fax:  (858) 793-8842
              Attn:  Klaus Moeller, CEO

              (f) AMENDMENTS AND MODIFICATION; ADDITIONAL LENDER. No provision
hereof shall be modified, altered, waived or limited except by written
instrument expressly referring to this Agreement and to such provision, and
executed by the parties hereto. Any transferee of a Note who acquires a Note
after the date hereof will become a party hereto by signing the signature page
and sending an executed copy of this Agreement to the Collateral Agent.

              (g) FEE. Upon the occurrence of an Event of Default the Collateral
Agent will charge an hourly rate for performing extraordinary services in
addition to the services covered by its Administration Fee. The Lenders
collectively shall pay the Collateral Agent the sum of $2,000 to apply against
hourly rates as published in the Fee Section of the Collateral Agent's Bond
Administration Policy at the time the default. All payments due to the

                                       8

<PAGE>

Collateral Agent under this Agreement including reimbursements must be paid when
billed. The Collateral Agent may refuse to act on behalf of or make a
distribution to any Lender who is not current in payments to the Collateral
Agent. Payments required pursuant to this Agreement shall be pari passu to the
Lenders' interests in the Notes. The Collateral Agent is hereby authorized to
deduct any sums due the Collateral Agent from Collateral in the Collateral
Agent's possession.

              (h) COUNTERPARTS. This Agreement may be executed by the parties
hereto individually or in any combination, in one or more counterparts, and by
facsimile signature and transmission, each of which shall be an original and all
of which shall together constitute one and the same agreement.

              (i) SUCCESSORS AND ASSIGNS. Whenever in this Agreement reference
is made to any party, such reference shall be deemed to include the successors,
assigns, heirs and legal representatives of such party. Subject to the
assignment provisions set forth in Section 4.4 of the Notes, Lenders may
transfer any rights under this Agreement so long as the transferee agrees to be
bound by, and comply with all of the terms and provisions of this Agreement, as
if an original signatory hereto on the date hereof. Subject to the resignation
provisions set forth in Section 8 above, Collateral Agent and Genius may not
transfer any rights under this Agreement.

              (j) CAPTIONS; CERTAIN DEFINITIONS. The captions of the various
sections and paragraphs of this Agreement have been inserted only for the
purposes of convenience; such captions are not a part of this Agreement and
shall not be deemed in any manner to modify, explain, enlarge or restrict any of
the provisions of this Agreement. As used in this Agreement the term "person"
shall mean and include an individual, a partnership, a joint venture, a
corporation, a limited liability company, a trust, an unincorporated
organization and a government or any department or agency thereof.

               (k) SEVERABILITY. In the event that any term or provision of this
Agreement shall be finally determined to be superseded, invalid, illegal or
otherwise unenforceable pursuant to applicable law by an authority having
jurisdiction and venue, that determination shall not impair or otherwise affect
the validity, legality or enforceability (i) by or before that authority of the
remaining terms and provisions of this Agreement, which shall be enforced as if
the unenforceable term or provision were deleted, or (ii) by or before any other
authority of any of the terms and provisions of this Agreement.

              (l) ENTIRE AGREEMENT. This Agreement contains the entire agreement
of the parties and supersedes all other agreements and understandings, oral or
written, with respect to the matters contained herein.

              (m) SCHEDULES. The Collateral Agent is authorized to annex hereto
any schedules referred to herein.

                                       9

<PAGE>

            IN WITNESS WHEREOF, the parties hereto have caused this Collateral
Agent Agreement to be signed, by their respective duly authorized officers or
directly, as of the date first written above.

WACHOVIA BANK, NATIONAL ASSOCIATION - "THE COLLATERAL AGENT"

By:
     -------------------------------------------------------------------

Its:
       -----------------------------------------

                                                             - "LENDER"
------------------------------------------------------------

By:
    --------------------------------------------------------------------

Its:
      ------------------------------------------

                                                             - "LENDER"
------------------------------------------------------------

By:
    --------------------------------------------------------------------

Its:
      ------------------------------------------

                                                             - "LENDER"
------------------------------------------------------------

By:
    --------------------------------------------------------------------

Its:
      ------------------------------------------

                                                             - "LENDER"
------------------------------------------------------------

By:
    --------------------------------------------------------------------

Its:
      ------------------------------------------

GENIUS PRODUCTS, INC.,
a Nevada corporation

By:
    --------------------------------------------------------------------
       Klaus Moeller
Its:  Chief Executive Officer

                                       10

<PAGE>

                     COLLATERAL AGENT AGREEMENT - SCHEDULE A

LENDERS                                            PRINCIPAL AMOUNT OF
                                                   SECURED PROMISSORY NOTES

[Name                                              $
                                                    -----------------------
Address
Phone/Fax]

[Name                                              $
                                                    -----------------------
Address
Phone/Fax]

[Name                                              $
                                                    -----------------------
Address
Phone/Fax]

[Name                                              $
                                                    -----------------------
Address
Phone/Fax]

[Name                                              $
                                                    -----------------------
Address
Phone/Fax]

[Name                                              $
                                                    -----------------------
Address
Phone/Fax]

[Name                                              $
                                                    -----------------------
Address
Phone/Fax]

[Name                                              $
                                                    -----------------------
Address
Phone/Fax]<PAGE>

                                                                   EXHIBIT 10.38

THIS WARRANT HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED, OR THE SECURITIES LAWS OF ANY STATE. THIS WARRANT HAS BEEN ACQUIRED FOR
INVESTMENT AND MAY NOT BE SOLD, OFFERED FOR SALE OR TRANSFERRED IN THE ABSENCE
OF AN EFFECTIVE REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND
ANY APPLICABLE STATE SECURITIES LAWS OR AN OPINION OF COUNSEL THAT THE
TRANSACTION SHALL NOT RESULT IN A VIOLATION OF FEDERAL OR STATE SECURITIES LAWS.

                                 WARRANT TO PURCHASE
                      __________ SHARES OF COMMON STOCK OF
                                 GENIUS PRODUCTS, INC.

For value received, Genius Products, Inc., a Nevada corporation (the
"Corporation"), hereby grants the following rights to _______________________
and such party's successors and assigns (the "Registered Owner"):

a.          ISSUE. Upon tender to the Corporation (in accordance with paragraph
            (e) below), the Corporation shall issue to the Registered Owner up
            to the number of shares specified in paragraph (b) below of fully
            paid and non-assessable shares of Common Stock of the Corporation.
            This Warrant may be exercised in whole or in part and at one or more
            times. The Corporation represents and warrants that it has the power
            and authority to issue this Warrant and that it is a valid and
            binding obligation of the Corporation, fully enforceable according
            to its terms. The Corporation further represents and warrants that
            the shares of Common Stock obtainable by the exercise of this
            Warrant have been duly authorized and reserved for issuance.

b.          NUMBER OF SHARES. The Registered Owner is entitled to receive shares
            of Common Stock of the Corporation upon exercise of this Warrant.
            The Corporation shall at all times reserve and hold available
            sufficient shares of Common Stock to satisfy all conversion and
            purchase rights represented by outstanding convertible securities,
            options and warrants, including this Warrant. The Corporation
            covenants and agrees that all shares of Common Stock that may be
            issued upon the execution of this Warrant shall, upon issuance, be
            duly and validly issued, fully paid and non-assessable, and free
            from all taxes, liens and charges with respect to the purchase and
            the issuance of the shares.

c.          EXERCISE PRICE. The exercise price of this Warrant, the price at
            which the shares of stock purchasable upon exercise of this Warrant
            may be purchased, is US[$1.00/$3.00] per share.

d.          EXERCISE PERIOD. This Warrant may be exercised at any time prior to
            December 31, 2005, and also at any time prior to (i) a consolidation
            or merger of the Corporation with or into one or more other
            corporations or other business organizations, (ii) the sale, lease
            or transfer of all or substantially all of the assets of the
            Corporation or (iii) any other form of corporate reorganization in
            which outstanding shares of the Corporation are exchanged for or
            converted into cash, securities of another corporation or business
            organization, or other property, unless, in each case, the
            Corporation's stockholders of record immediately prior to such event
            will (by virtue of the securities issued as a part of such event)
            hold at least a majority of the voting power of the surviving or
            acquiring person immediately following such event. The Corporation
            shall provide the Registered Owner fifteen (15) business days' prior

<PAGE>

            written notice of (1) any such event in the preceding sentence, (2)
            if the Corporation desires to declare or pay a dividend upon its
            Common Stock payable other than out of earnings, and (3) if the
            Corporation distributes pro rata to holders of its Common Stock any
            shares of its capital stock, or options to purchase, rights to
            subscribe for, or securities convertible into or exchangeable for,
            capital stock, or options to purchase or rights to subscribe for
            such convertible or exchangeable securities, so that the Registered
            Owner may exercise this Warrant within such 15 business-day period.

e.          TENDER. The exercise of this Warrant must be accomplished by the
            actual delivery of the exercise price and by the actual delivery of
            a duly executed exercise form, a copy of which is attached to this
            Warrant as Exhibit A, properly executed by the Registered Owner, and
            by surrender of this Warrant, in each case to the Corporation. The
            exercise form must be delivered, personally, by reputable overnight
            courier or by first class mail, to the office of the Corporation at
            its principal corporate office, or such other address as the
            Corporation may furnish by notice to the Registered Owner from time
            to time. If Registered Owner of this Warrant exercises the purchase
            rights granted hereunder in part but not in whole, the Corporation
            agrees that it will deliver to Registered Owner a replacement
            warrant which will entitle Registered Owner thereof to purchase the
            number of shares of Common Stock that remain as yet unpurchased
            under this Warrant on the terms and condition set forth herein. With
            respect to a tender made in response to a notice from the
            Corporation described in clause (1), (2) or (3) of paragraph d.
            above, the Registered Owner may make the Registered Owner's tender
            and exercise of this Warrant (or any portion hereof) conditional on
            the actual completion of the action that warranted such notice from
            the Corporation in the first place, and in the event such action is
            not completed substantially as contemplated in such notice, then
            such tender and exercise by may be reversed by the Registered Owner
            by delivery of written notice to the Corporation within fifteen (15)
            business days of such Registered Owner receiving information that
            the contemplated action did not take place.

f.          NOTICE TO REGISTERED OWNER. Any and all notices given to the
            Registered Owner must be given personally, by reputable overnight
            courier or by first class mail, postage prepaid, addressed to the
            Registered Owner at the address of the Registered Owner appearing in
            the records of the Corporation.

g.          RESTRICTED STOCK; REGISTRATION. This Warrant is not a registered
            security. The Corporation represents and warrants that this Warrant
            is exempt from registration under Section 4(2) of the Securities Act
            of 1933, as amended (the "Act"). The Registered Owner represents and
            warrants that it is an accredited investor as that term is defined
            in Rule 501 under the Act. The shares of Common Stock of the
            Corporation (or the shares into which the Common Stock has been
            changed or converted) obtained upon exercise of this Warrant shall
            not be transferable except upon the conditions stated below, which
            are intended to ensure compliance with federal and state securities
            laws. The certificates representing these shares of stock, unless
            the same are registered prior to the exercise of this Warrant, shall
            be stamped or otherwise imprinted with a legend in substantially the
            following form:

                        "THE SECURITIES REPRESENTED IN THIS CERTIFICATE HAVE NOT
                        BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
                        AMENDED, OR THE SECURITIES LAWS OF ANY STATE. THE
                        SECURITIES HAVE BEEN ACQUIRED FOR INVESTMENT AND MAY NOT
                        BE SOLD, OFFERED FOR SALE OR TRANSFERRED IN THE ABSENCE

                                       2

<PAGE>

                        OF AN EFFECTIVE REGISTRATION UNDER THE SECURITIES ACT OF
                        1933, AS AMENDED, AND ANY APPLICABLE STATE SECURITIES
                        LAWS OR AN OPINION OF COUNSEL THAT THE TRANSACTION SHALL
                        NOT RESULT IN A VIOLATION OF FEDERAL OR STATE SECURITIES
                        LAWS."

h.          EFFECT OF STOCK CHANGES. If, at any time, or from time to time the
            Corporation, by stock dividend, stock split, subdivision, reverse
            split, consolidation, reclassification of shares, or otherwise,
            changes as a whole its outstanding Common Stock into a different
            number or class of shares, then, immediately upon the occurrence of
            the change,

            (1)         the class of shares into which the Common Stock has been
                        changed shall replace the Common Stock, for the purposes
                        of this Warrant and the terms and conditions thereof, so
                        that the Registered Owner shall be entitled to receive,
                        and shall receive upon exercise of this Warrant, shares
                        of the class of stock into which the Common Stock had
                        been changed;

            (2)         the number of shares received upon the exercise of this
                        Warrant and the exercise price shall be proportionately
                        adjusted for such event (for example, if the outstanding
                        Common Stock of the Corporation is converted into X
                        stock at a rate of one share of Common Stock into three
                        shares of X stock, and prior to the change the
                        Registered Owner was entitled, upon exercise of this
                        Warrant, to receive 100 shares of Common Stock, then the
                        registered owner shall, after the change, be entitled to
                        receive 300 shares of X stock at an exercise price of
                        [$0.33/$1.00] per share); and

            (3)         irrespective of any adjustment or change in the number
                        or class of shares to be received under this Warrant,
                        this Warrant may continue to express the number and
                        class of shares to be received upon exercise of this
                        Warrant as if the number and class of shares to be
                        received were expressed in this Warrant when it was
                        initially issued.

i.          NOTICE OF ADJUSTMENT. On the happening of an event requiring an
            alteration or adjustment of the shares obtainable upon exercise of
            this Warrant, the exercise price, or an alteration or adjustment of
            their number or designation, the Corporation shall give written
            notice to the Registered Owner stating the adjusted number,
            designation and kind of securities or other property obtainable upon
            exercise of this Warrant as a result of and following such event.
            The notice shall set forth in reasonable detail the method of
            calculation determining the securities or property obtainable after
            such event, and the facts upon which the calculation is based. The
            Corporation's Board of Directors, acting in good faith, shall
            determine the calculation.

j.          CLOSING OF BOOKS. The Corporation will at no time close its transfer
            books against the transfer of this Warrant or of any shares of
            Common Stock issued or issuable upon the exercise of this Warrant in
            any manner that interferes with the timely exercise of the rights
            evidenced hereby.

k.          NO DILUTION OR IMPAIRMENT. The Corporation shall not undertake or
            participate in any action whatsoever for the purpose, or having the
            result, of avoiding or seeking to avoid the observance or

                                       3

<PAGE>

            performance of any of its obligations pursuant to this Warrant, or
            diluting, impairing or adversely affecting whatsoever the Registered
            Owner's right and entitlement to acquire, by exercise hereof, the
            maximum number of shares of Common Stock obtainable upon exercise of
            this Warrant in accordance with its terms.

l.          REPLACEMENT. Upon receipt by the Corporation of evidence reasonably
            satisfactory to it of the loss, theft, destruction or mutilation of
            this Warrant, and, in the case of loss, theft or destruction, or an
            indemnity or security reasonably satisfactory to it, and
            reimbursement to the Corporation of all reasonable expenses
            incidental thereto, and upon surrender and cancellation of this
            Warrant, if mutilated, the Corporation will make and deliver a
            replacement warrant of like tenor, in lieu of this Warrant.

m.          NO FRACTIONAL SHARES. The Corporation shall not be required to issue
            any fractional shares of Common Stock, but may, at its option, in
            respect of any such fraction make a payment in cash based on the
            then-current exercise price.

n.          REPRESENTATIONS AND WARRANTIES OF THE REGISTERED OWNER. Registered
            Owner hereby represents and warrants to the Corporation and agrees
            that:

            (1) This Warrant is made with Registered Owner in reliance upon
            Registered Owner's representation to the Corporation, which is
            confirmed by Registered Owner's acceptance of this Warrant, that
            this Warrant and the shares of Common Stock underlying this Warrant
            will be acquired for investment for Registered Owner's own account,
            not as a nominee or agent, and not with a view to the resale or
            distribution of any part thereof, and that Registered Owner has no
            present intention of selling, granting any participation in, or
            otherwise distributing the same. By acceptance of this Warrant,
            Registered Owner further represents that Registered Owner does not
            presently have any contract, undertaking, agreement or arrangement
            with any person to sell, transfer or grant participations to such
            person or to any third person, with respect to all or any portion of
            this Warrant or the Common Stock. Registered Owner understands that
            subject to the Registered Owner's rights under this Warrant and such
            Common Stock, when issued, will not be registered under the
            Securities Act, or any state securities laws, and will be issued in
            reliance upon available exemptions from registration.

            (2) This Warrant may not be transferred. The Common Stock underlying
            this Warrant may not be sold, transferred assigned or otherwise
            disposed of without an effective registration statement covering the
            Common Stock under the Securities Act and any applicable state
            securities laws, or an opinion of counsel satisfactory to the
            Corporation that registration is not required under the Securities
            Act and/or any applicable state securities laws. Registered Owner
            may be required to hold such shares of Common Stock indefinitely
            unless such shares are subsequently registered under the Securities
            Act and/or any applicable state securities laws, or an exemption
            from such registration is available. Registered Owner acknowledges
            that if an exemption from registration or qualification is
            available, it may be conditioned on various requirements including,
            but not limited to, the time and manner of sale, the holding period
            for this Warrant and the Common Stock underlying this Warrant, and
            on requirements relating to the Corporation which are outside of
            Registered Owner's control, and which the Corporation is under no
            obligation and may not be able to satisfy.

                                       4

<PAGE>

            (3) Registered Owner shall have no rights as a shareholder with
            respect to any shares of Common Stock purchasable under this Warrant
            until the date of issuance of a certificate for the Common Stock so
            purchased in accordance with the terms hereof. Except as expressly
            set forth in this Warrant, no adjustment shall be made for dividends
            or other rights for which the record date occurs prior to the date
            of such issuance.

            (4) Registered Owner has had an opportunity to discuss the
            Corporation's business, management, financial affairs and the terms
            and conditions of this Warrant with the Corporation's management and
            has also had access to all of the Corporation's publicly filed
            documents, including, without limitation, the Corporation's most
            recent Forms 10-KSB, 10-QSB and 8-K.

o.          GOVERNING LAWS. This Warrant shall be construed and enforced in
            accordance with and governed by the laws of the State of California
            without regard to the choice of law principles thereof.

            IN WITNESS WHEREOF, the Corporation has signed this Warrant by its
duly authorized officers effective as of the of , 2003.

                                 Genius Products, Inc.

                                 By:
                                      ------------------------------------------
                                        Klaus Moeller, Chief Executive Officer

                                 REGISTERED OWNER:

                                      ------------------------------------------

                                      ------------------------------------------

                                 SSN:
                                       -----------------------------------------

                                 Address:
                                           -------------------------------------

                                       5

<PAGE>

                                    EXHIBIT A

    (TO BE COMPLETED AND EXECUTED BY THE REGISTERED OWNER OF THE WARRANT TO
     WHICH THIS EXHIBIT IS ATTACHED TO EXERCISE THE WARRANT AND TO RECEIVE
              THE STOCK OBTAINABLE UPON EXERCISE OF THE WARRANT.)

                              GENIUS PRODUCTS, INC.
                              11250 EL CAMINO REAL
                                    SUITE 100
                               SAN DIEGO, CA 92130

The undersigned hereby: (1) [irrevocably] [conditionally - THE SUBSCRIPTION MAY
BE MADE CONDITIONAL IF WARRANT EXERCISED IN RESPONSE TO NOTICE OF AN
EXTRAORDINARY TRANSACTION FROM CORPORATION LISTED IN CLAUSE (1), (2) OR (3) OF
PARAGRAPH D. OF THE WARRANT ] subscribes for and offers to purchase shares of
Common Stock of Genius Products, Inc., pursuant to, and in accordance with all
the terms of, the Warrant to which this Exhibit is attached; (2) encloses
payment of US$ for these shares at a price of US$ per share; and (3) requests
that a certificate for the shares be issued in the name of the undersigned and
delivered to the undersigned at the address specified below.

Date:       _____________________           Name:
                                                  ------------------------------

Address:
          ------------------------------------------
          ------------------------------------------

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