Document:

<PAGE>
                                                                    EXHIBIT 10.3

                         STOCKHOLDERS' RIGHTS AGREEMENT

                                  by and among

                              ACORN PRODUCTS, INC.,

                                       and

                     OCM PRINCIPAL OPPORTUNITIES FUND, L.P.,
                   HOULIHAN LOKEY HOWARD & ZUKIN CAPITAL, LLC

                                       AND

                           CAPITALSOURCE HOLDINGS LLC

                            DATED AS OF JUNE 28, 2002

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<S>             <C>                                                                                  <C>
Section 1.1     Certain Definitions...................................................................1
Section 1.2     Restrictions on Transfer..............................................................3
Section 1.3     Right of First Offer..................................................................4
Section 1.4     Drag-Along and Tag-Along Rights.......................................................5
Section 1.5     Termination...........................................................................7
Section 1.6     Governing Law.........................................................................7
Section 1.7     Successors and Assigns................................................................8
Section 1.8     Entire Agreement; Amendment; Waiver...................................................8
Section 1.9     Notices, etc..........................................................................8
Section 1.10    Delays or Omissions...................................................................8
Section 1.11    Rights; Separability..................................................................8
Section 1.12    Titles and Subtitles..................................................................9
Section 1.13    Counterparts..........................................................................9
</TABLE>

                                       i

<PAGE>

                              ACORN PRODUCTS, INC.
                         STOCKHOLDERS' RIGHTS AGREEMENT

This Stockholders' Rights Agreement (this "Agreement") is made and entered into
as of the 28th day of June, 2002 by and among Acorn Products, Inc., a Delaware
corporation (the "Company"), OCM Principal Opportunities Fund, L.P., a Delaware
limited partnership ("POF"), CapitalSource Holdings LLC, a Delaware limited
liability company ("CapitalSource"), and Houlihan Lokey Howard & Zukin Capital,
LLC ("HLHZ" and, together with CapitalSource, the "Investors" and, together with
CapitalSource and POF, the "Stockholders").

                                    RECITALS

         WHEREAS, the Company has issued to HLHZ a 12% Convertible Note in the
principal amount of $1,200,000 (the "HLHZ Note");

         WHEREAS, pursuant to that certain Revolving Credit, Term Loan and
Security Agreement dated June 28, 2002 by and among the Company, UnionTools,
Inc., the Borrower Subsidiaries as named therein and CapitalSource (the "Loan
Agreement") and the other Loan Documents (as defined in the Loan Agreement)
related thereto, the Company (i) has issued the Issued Shares (as defined in the
Loan Agreement) to CapitalSource and (ii) is committed to issue to CapitalSource
the New Shares (as defined in the Loan Documents) upon the occurrence of certain
events (collectively, the "CapitalSource Shares" and, together with the HLHZ
Note and the Common Stock issuable upon conversion or exercise thereof, the
"Securities");

         WHEREAS, such HLHZ Note is convertible into shares of the Company's
Common Stock on the terms and subject to the conditions set forth in such HLHZ
Note; and

         WHEREAS, each of the Stockholders and the Company desires to enter into
this Agreement to regulate certain aspects of their relationship, to make
certain provisions for the governance of the Company and to provide for, among
other things, restrictions on the transfer or other disposition of their
securities;

         NOW, THEREFORE, the parties hereto hereby agree as follows:

                  Section 1.1       Certain Definitions. As used in this
Agreement, the following terms shall have the meanings set forth below:

                  "Affiliate" of any party means any Person (or group of
Persons) that controls, is controlled by or is under common control with such
party, or, in the case of a natural person, any family members of such person.

                  "Common Stock" shall mean the common stock of the Company, par
value $0.001 per share.

                  "Control" and "Controlled" means the possession, direct or
indirect, of the power to direct or cause the direction of the management and
policies of a person, whether through ownership of voting securities or
otherwise.

                                       1
<PAGE>

                  "Exchange Act" shall mean the Securities Exchange Act of 1934,
as amended, or any similar successor federal statute and the rules and
regulations thereunder, all as the same shall be in effect from time to time.

                  "Person" means any individual, partnership, association,
corporation, limited liability company, trust or other entity.

                  The terms "register," "registered" and "registration" shall
refer to a registration effected by preparing and filing a registration
statement in compliance with the Securities Act and applicable rules and
regulations thereunder, and the declaration or ordering of the effectiveness of
such registration statement.

                  "Securities Act" shall mean the Securities Act of 1933, as
amended, or any successor federal statute, and the rules and regulations
thereunder, all as the same shall be in effect from time to time.

                  "TCW/POF Stockholders" shall collectively include TCW Special
Credits Fund III, a California limited partnership ("TCW Fund III"), TCW Special
Credits Fund IIIB, a California limited partnership ("TCW Fund IIIB"), TCW
Special Credits Trust IIIB, a California collective investment trust ("TCW Trust
IIIB"), The Common Fund for Bond Investments, Inc., a New York corporation
("Common Fund"), Delaware State Employees' Retirement Fund ("DSERF"),
Weyerhaeuser Company Master Retirement Trust (TCW) ("Weyerhaeuser"), TCW Special
Credits Trust, a California collective investment trust ("TCW Special Trust"),
TCW Special Credits Trust IV, a California collective investment trust ("TCW
Special Trust IV"), TCW Special Credits Trust IV-A, a California collective
investment trust ("TCW Special Trust IV-A"), TCW Special Credits Fund IV, a
California limited partnership ("TCW Special Fund IV"), TCW Special Credits Plus
Fund, a California limited partnership ("TCW Special Fund" and, collectively
with TCW Fund III, TCW Fund IIIB, TCW Trust IIIB, Common Fund, DSERF,
Weyerhaeuser, TCW Special Trust, TCW Special Trust IV, TCW Special Trust IV-A
and TCW Special Fund IV, the "TCW Entities"), POF, and any other entity
affiliated with or managed by Oaktree Capital Management, LLC.

                  "Transfer" and "Transferred" shall mean a sale, conveyance,
exchange, assignment, pledge, encumbrance, gift, bequest, hypothecation or other
transfer or disposition by any other means, whether for value or no value and
whether voluntary or involuntary (including, without limitation, by realization
upon any encumbrance or by operation of law or by judgment, levy, attachment,
garnishment, bankruptcy or other legal or equitable proceedings) or an agreement
to do any of the foregoing (any Person who effects a Transfer being referred to
as a "Transferor" and any Person to whom a Transfer is effected being referred
to as a "Transferee").

                  "Transferring Investor" shall mean any Stockholder, other than
a TCW/POF Stockholder, who Transfers its shares of Common Stock pursuant to
Section 1.3 hereof.

                                       2
<PAGE>

                  Section 1.2       Restrictions on Transfer

         (a) An Investor shall be permitted to Transfer all or any portion of
the Securities held by it only:

                  (i)      if (A) it shall have given 15 days prior written
         notice to POF and the Company of the proposed Transfer and shall have
         furnished the Company with a reasonably detailed statement of the
         circumstances surrounding the proposed Transfer, (B) the Transferee has
         agreed in writing for the benefit of the Company to be bound by the
         terms and provisions of this Agreement, (C) if reasonably requested by
         the Company, such Stockholder shall have furnished the Company with an
         opinion of counsel, reasonably satisfactory to the Company, that such
         Transfer will not require registration of such shares under the
         Securities Act and (D) such Transfer is a Transfer of all or any
         portion of the Securities held by such Investor to an Affiliate of such
         Investor and is made to not more than two Transferees (such Transfer is
         referred to herein as a "Permitted Transfer");

                  (ii)     in connection with any one of the following
         transactions: (A) the dissolution or liquidation of the Company; (B)
         the merger of the Company into another person or entity, or any
         consolidation, share exchange, combination, reorganization or like
         transaction, in each case the consummation of which has been approved
         by the stockholders of the Company in accordance with applicable law,
         (C) the sale or other transfer of all or substantially all of the
         Company's assets, the consummation of which has been approved by the
         stockholders of the Company in accordance with applicable law; (D) the
         exercise by such Investor of any put or similar rights granted to such
         Investor by the Company; (E) the exercise by POF of the drag-along
         rights granted to it pursuant to Section 1.4(a); (F) the exercise by
         such Investor of the tag-along rights granted to such Investor pursuant
         to Section 1.4(b); or

                  (iii)    in strict compliance with applicable securities laws
         and, to the extent applicable, the provisions of Section 1.3.

         (b) Any attempt by any Investor to Transfer Securities in violation of
this Section 1.2 shall be void, and the Company agrees it will not effect such a
Transfer nor will it treat any alleged Transferee as the holder of such shares
without the written consent of the Board of Directors of the Company.

         (c) The Company agrees to use its best efforts to cause the
registration of (i) the shares of Common Stock issuable upon the conversion of
the HLHZ Note and (ii) the resale of the CapitalSource Shares and the shares of
Common Stock issuable upon conversion of the HLHZ Note (to the extent not
registered upon issuance pursuant to the preceding clause (i)) to be included in
any registration statement filed in connection with the Rights Offering
contemplated in that certain Purchase Agreement dated as of June 26, 2002 by and
among the Company, UnionTools, Inc. and the TCW/POF Stockholders. The Common
Stock issued or issuable to the Investors is further subject to that certain
Registration Rights Agreement dated as of the date hereof by and among the
Company, POF and the Investors.

                                       3
<PAGE>

         (d) Each certificate representing Securities shall (to the extent
applicable and unless otherwise permitted by the provisions of this Agreement)
be stamped or otherwise imprinted with a legend substantially similar to the
following (in addition to any legend required under applicable state securities
laws):

         THE SHARES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE
         SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE SOLD OR TRANSFERRED,
         ASSIGNED, PLEDGED OR HYPOTHECATED UNLESS AND UNTIL REGISTERED UNDER
         SUCH ACT OR UNLESS THE COMPANY HAS RECEIVED AN OPINION OF COUNSEL OR
         OTHER EVIDENCE, SATISFACTORY TO THE COMPANY AND ITS COUNSEL, THAT SUCH
         REGISTRATION IS NOT REQUIRED.

                  Section 1.3       Right of First Offer

         (a) Transfer by an Investor.

                  (i)      At such time, and from time to time, as any Investor
         (in such capacity, the "Transferring Investor") owns not less than 2%
         of the issued and outstanding shares of Common Stock of the Company, on
         an as converted or other contractual basis, and such Investor desires
         to sell all or any part of its Securities (other than pursuant to a
         Permitted Transfer), such Investor shall give written notice ("Sale
         Notice") to each of the Company and POF at least three (3) business
         days prior to any such proposed Transfer of Securities. The Sale Notice
         shall describe in reasonable detail the number of Securities proposed
         to be Transferred (the "Notice Securities"), and, if an offer has been
         received by the Transferring Investor with respect to the Transfer of
         such Securities, the cash and non-cash consideration to be paid and the
         name and address of each prospective Transferee.

                  (ii)     Each of the Company, POF and their respective
         Affiliates or designees (collectively, the "Offerees") shall have the
         right, exercisable within three (3) business days after receipt of the
         Sale Notice, to make an offer to purchase all or any portion of the
         Notice Securities (the "Offered Securities") at the price specified in
         a written notice delivered to the Transferring Investor by the Offerees
         specifying the cash price (the "Offer Price") at which the Offerees, or
         any one of them, are willing to purchase all or a specified portion of
         the Notice Securities (the "Offer Notice"). Within three (3) business
         days following receipt of the Offer Notice, the Transferring Investor
         shall have the right to accept the offer made in the Offer Notice as to
         all, but not less than all, of the Offered Securities by delivering
         written notice of such acceptance to each Offeree that delivered the
         Offer Notice (the "Acceptance Notice").

                  (iii)    If any one or a combination of the Offerees elects to
         make an offer to purchase Offered Securities that is accepted pursuant
         to an Acceptance Notice, such Offeree, or its respective Affiliates or
         designees (the "Purchasing Offeree"), shall purchase the Offered
         Securities by delivering the Offer Price in cash to be paid for the
         Offered Securities to the Transferring Investor on a date mutually
         agreed to by the parties as soon as practicable following the notice
         provided pursuant to clause (ii) above but no later than fifteen (15)
         days following the date of the Acceptance Notice.

                                       4
<PAGE>

                  (iv)     Simultaneously upon receipt of the Offer Price
         specified in the Offer Notice and delivered pursuant to the foregoing
         paragraph (a)(iii) of this Section 1.3, a Transferring Investor shall
         deliver to the Purchasing Offeree a stock certificate or certificates
         representing the Offered Securities in consummation of the sale of such
         shares pursuant to the terms and conditions specified in the Offer
         Notice.

                  (v)      In the event that (a) the Offerees do not elect to
         deliver an Offer Notice, (b) the Offerees deliver an Offer Notice as to
         only a portion of the Notice Securities or (c) the Transferring
         Investor does not elect to deliver an Acceptance Notice, the
         Transferring Investor shall have the right to Transfer such portion of
         the Notice Securities that were not subject to an Acceptance Notice
         (the "Transferrable Securities") without further restriction under this
         Section 1.3 provided that such Transfer is consummated no later than
         ninety (90) days following the date of the Notice and at a price that
         is no less than the Offer Price. In the event that the Transferrable
         Securities are not so Transferred within such ninety (90) day period at
         a price that is no less than the Offer Price, Transferring Investor
         shall be obligated to comply with the provisions of this Section 1.3 in
         connection with any future Transfer of such Securities.

                  (vi)     The exercise or non-exercise of the rights of any
         Offeree hereunder (or their respective Affiliates acting on their
         behalf) to participate as a purchaser in one or more sales of
         Securities made by a Transferring Investor shall not adversely affect
         their rights to participate as purchasers in subsequent sales of
         Securities subject to paragraph (a)(i) of this Section 1.3.

         (b) Prohibited Transfers. Any attempt by a Transferring Investor to
Transfer Securities in violation of this Section 1.3 hereof shall be void and
the Company agrees it will not effect such a Transfer nor will it treat any
alleged Transferee as the holder of such shares without the written consent of
the Board of Directors of the Company.

                  Section 1.4       Drag-Along and Tag-Along Rights

         (a) Drag-Along Rights.

                  (i)      If POF (the "Drag Stockholder") desires to sell Notes
         and/or Common Stock representing 80% or more of the then outstanding
         shares of the Common Stock, determined on an as converted basis,
         beneficially or legally owned by POF (the "POF Shares") to any third
         party or third parties, other than an Affiliate of POF, in a
         transaction or series of related transactions that results in a Change
         of Control (a "Drag Sale"), then, if requested by POF, the Investors
         and their respective permitted Transferees, if any (each, a "Drag
         Seller"), shall sell all of the outstanding shares of Common Stock held
         by the Drag Seller, to such third party purchaser, in accordance with
         the terms and provisions of this Section 1.4(a). All shares of Stock
         sold or transferred pursuant to this Section 1.4(a) shall be sold at
         the same price and upon the same terms and conditions as the shares of
         Common Stock being sold by the Drag Stockholders. As used herein
         "Change of Control" means (i) the sale, lease, transfer, conveyance or
         other disposition (other than by way of a merger or consolidation), in
         one transaction or a series of related transactions, of all or
         substantially all of the assets of the Company and its subsidiaries,
         taken as a whole, to any person (other than a TCW/POF Stockholder) or
         any group (as

                                       5
<PAGE>

         such term is used in Section 13d-5 of the Exchange Act) that does not
         include a TCW/POF Stockholder and (ii) the consummation of any
         transaction or series of related transactions, including by way of
         merger or consolidation, in which any person, other than a TCW/POF
         Stockholder, or any group (as such term is used in Section 13d-5 of the
         Exchange Act) that does not include a TCW/POF Stockholder acquires,
         directly or indirectly, more than 50% of the voting power of the
         Company or any entity that survives any such merger or consolidation.

                  (ii)     The Drag Stockholder shall give each Drag Seller at
         least fifteen (15) days prior written notice of any Drag Sale,
         containing a description of all material terms and conditions of such
         Drag Sale. In connection with any Drag Sale, each Drag Seller shall
         take such actions as may be reasonably required by the Drag Stockholder
         and shall otherwise cooperate in good faith with the Drag Stockholder.
         At the closing of a Drag Sale, each Drag Seller shall deliver to the
         purchaser the certificates for all shares of the Common Stock being
         sold or transferred by such Drag Seller, duly endorsed for transfer,
         against payment of the appropriate purchase price.

                  (iii)    Upon consummation of a Drag Sale, if a Drag Seller
         has not delivered its certificates as contemplated by this Section
         1.4(a), such Drag Seller shall no longer be considered a stockholder of
         the Company with respect to all shares of Common Stock required to be
         sold or transferred by such Drag Seller pursuant to this Section 1.4(a)
         and such Drag Seller's sole rights shall be to receive the
         consideration receivable in connection with such Drag Sale upon
         delivery of the certificates held by such Drag Seller, as contemplated
         by this Section 1.4(a).

                  (iv)     Notwithstanding any other provision of this Agreement
         to the contrary, if holders of a majority of the TCW/POF Shares desire
         to approve a sale of all or substantially all of the assets of the
         Company or a merger or consolidation of the Company, whether or not the
         Company is the surviving entity, then POF shall be entitled to require
         each Investor to vote all of its shares of Common Stock to approve such
         transaction. If such transaction is structured as a merger or
         consolidation, each Investor hereby waives any dissenter's rights,
         appraisal rights or similar rights in connection with such merger or
         consolidation. Each Investor shall take any and all action necessary
         (including, without limitation, voting its shares of Common Stock and
         executing and delivering written consents) to approve and effect the
         consummation of such transaction. Nothing contained herein shall be
         construed as a limitation on the rights of CapitalSource or its
         Affiliates pursuant to the Loan Agreement.

         (b) Tag-Along Rights. If POF (the "Selling Stockholder") desires to
sell or transfer, directly or indirectly, any of the then outstanding POF Shares
to any third party, other than an Affiliate (the "Buyer"), in a transaction or
series of related transactions other than a sale effected through a broker on
any securities exchange or automated quotation system on which the Company's
Common Stock is then quoted or listed (a "Tag Sale"), then, at least fifteen
(15) days prior to any such sale, the Selling Stockholder shall provide to the
Investors and their respective permitted Transferees, if any (each, a "Tag
Seller") a notice (a "Tag-Along Notice") explaining the terms of such sale and
identifying the name and address of the Buyer. Upon the written request of any
Tag Seller made within fifteen (15) days after the day the Tag-Along Notice is
received by such Tag Seller, the Selling Stockholder proposing to make the sale
shall cause the

                                       6
<PAGE>

Buyer to purchase from such Tag Seller such portion of the outstanding shares of
Common Stock owned by such Tag Seller as the number of POF Shares subject to the
Tag Sale bears to the number of then outstanding POF Shares. Such purchase shall
be made on the same date and at the same price and on terms and conditions at
least as favorable to such Tag Seller as the terms and conditions contained in
the Tag-Along Notice delivered in connection with such proposed transaction.
Notwithstanding the foregoing, POF shall be permitted to distribute POF Shares
pursuant to an in-kind distribution to its limited partners, general partners,
investment advisors and any affiliates, employees or designees thereof without
restriction and any of such POF Shares so distributed (and any such holder or
subsequent transferee thereof) shall not be subject to the foregoing provisions.
POF agrees that it will notify the Investors no later than seven (7) business
days prior to effecting any sale of POF Shares on a securities exchange or
automated quotation system that, when aggregated with all such other sales of
POF Shares on a securities exchange or automated quotation system within the
immediately preceding four week period, represents 10% or more of the
outstanding shares of Common Stock of the Company, on an as converted basis.

         (c) Going Private and Similar Transactions. Each Investor hereby agrees
that it shall not transfer any Securities or accept any offer to purchase its
Securities for cash in connection with any "Going Private Transaction" unless,
and then only to the extent that and in the same proportion (based on their
respective number of shares tendered or purchased, as the case may be) as, POF
or any Affiliate of POF tenders or has purchased any shares of Common Stock
owned thereby. For purposes of this Agreement, "Going Private Transaction" shall
mean any transaction (i) in which the Company, POF or any Affiliate of POF (or
any combination thereof) acquires or otherwise obtains all of the outstanding
shares of Common Stock of the Company and, in connection therewith, the other
stockholders of the Company receive cash for their shares of Common Stock, (ii)
as a result of which the Company is no longer subject to the reporting
obligations of Section 13 or 15 of the Exchange Act and (iii) in which all of
the cash used to effect such transaction is provided or paid to such other
stockholders by POF or any Affiliate of POF (or any combination thereof) or by
the Company out of the proceeds of a debt or equity financing transaction with
POF or any Affiliate of POF (or any combination thereof). For purposes of
clarity, it is expressly acknowledged and agreed that the TCW Entities are not
Affiliates of POF.

                  Section 1.5       Termination

         This Agreement shall terminate and be of no force and effect upon the
earlier to occur of(i) the effective date of a written agreement signed by all
of the parties hereto providing for the termination of this Agreement, (ii) with
respect to each Investor, the date upon which such Investor shall cease to own
any Securities and (iii) with respect to any Securities, the date upon which
such Securities are Transferred by the applicable Investor pursuant to the
provisions of Sections 1.2(a)(ii) and 1.2(a)(iii).

                  Section 1.6       Governing Law

         This Agreement shall be governed in all respects by the laws of the
State of Delaware, as applied to agreements among Delaware residents entered
into and to be performed entirely within Delaware.

                                       7
<PAGE>

                  Section 1.7       Successors and Assigns

         Except as otherwise expressly provided herein, the provisions hereof
shall inure to the benefit of, and be binding upon, the successors, assigns,
heirs, executors and administrators of the parties hereto; provided, however,
that neither this Agreement nor the provisions hereof shall be binding upon any
third party that is Transferred Securities pursuant to Sections 1.2(a)(ii) or
1.2(a)(iii).

                  Section 1.8       Entire Agreement; Amendment; Waiver

         This Agreement, together with that certain Registration Rights
Agreement dated as of even date herewith by and among the parties hereto,
constitutes the full and entire understanding and agreement between the parties
with regard to the subjects hereof. Neither this Agreement nor any term hereof
may be amended, waived, discharged or terminated, except by a written instrument
signed by the Company and the parties hereto and any such amendment, waiver,
discharge or termination shall be binding on all the Stockholders, but in no
event shall the obligation of any Stockholder hereunder be materially increased,
except upon the written consent of such Stockholder.

                  Section 1.9       Notices, etc.

         All notices and other communications required or permitted hereunder
shall be in writing and shall be mailed by United States first-class mail,
postage prepaid, sent by facsimile or delivered personally by hand or nationally
recognized courier addressed (a) if to a Stockholder, as indicated below such
Stockholder's name on the signature page hereto, or at such other address or
facsimile number as such Stockholder or permitted Transferee shall have
furnished to the Company and each other Stockholder in writing, or (b) if to the
Company, as indicated below the Company's name on the signature page hereto, or
at such address or facsimile number as the Company shall have furnished to each
Stockholder in writing. All such notices and other written communications shall
be effective on the date of mailing, confirmed facsimile transfer or delivery.

                  Section 1.10      Delays or Omissions

         No delay or omission to exercise any right, power or remedy accruing to
any Stockholder, upon any breach or default of the Company under this Agreement
shall impair any such right, power or remedy of such Stockholder nor shall it be
construed to be a waiver of any such breach or default, or an acquiescence
therein, or of or in any similar breach or default thereafter occurring; nor
shall any waiver of any single breach or default be deemed a waiver of any other
breach or default therefore or thereafter occurring. Any waiver, permit, consent
or approval of any kind or character on the part of any Stockholder of any
breach or default under this Agreement or any waiver on the part of any
Stockholder of any provisions or conditions of this Agreement must be made in
writing and shall be effective only to the extent specifically set forth in such
writing. All remedies, either under this Agreement or by law or otherwise
afforded to any Stockholder, shall be cumulative and not alternative.

                  Section 1.11      Rights; Separability

                                       8
<PAGE>

         Unless otherwise expressly provided herein, a Stockholder's rights
hereunder are several rights, not rights jointly held with any of the other
Stockholders. In case any provision of the Agreement shall be invalid, illegal
or unenforceable, the validity, legality and enforceability of the remaining
provisions shall not in any way be affected or impaired thereby.

                  Section 1.12      Titles and Subtitles

         The titles of the paragraphs and subparagraphs of this Agreement are
for convenience of reference only and are not to be considered in construing or
interpreting this Agreement.

                  Section 1.13      Counterparts

         This Agreement may be executed in any number of counterparts, each of
which shall be an original, but all of which together shall constitute one
instrument.

                                       9
<PAGE>

         IN WITNESS WHEREOF, the parties hereto have executed this Stockholders'
Rights Agreement effective as of the day and year first above written.

                              ACORN PRODUCTS, INC.

                              By:     /s/ A. Corydon Meyer
                                   ---------------------------------------------
                                   Name:  A. Corydon Meyer
                                   Title:  President and Chief Executive Officer

                              Address for Notices:
                              390 West Nationwide Boulevard
                              Columbus, Ohio  43215
                              Attention:  A. Corydon Meyer
                              Telephone:  (614) 222-4460
                              Facsimile:  (614) 222-4437

                              with a copy to:

                              Porter, Wright, Morris & Arthur LLP
                              41 South High Street, Suite 2800
                              Columbus, Ohio  43215
                              Attention:  Robert J. Tannous
                              Telephone:  (614) 227-1953
                              Facsimile:  (614) 227-2100

                              OCM PRINCIPAL OPPORTUNITIES FUND, L.P.

                              By:  Oaktree Capital Management, LLC, Its
                                   General Partner

                              By:     /s/ Vincent J. Cebula
                                   ---------------------------------------------
                                   Name:    Vincent J. Cebula
                                   Title:   Managing Director

                              By:     /s/ Ronald N. Beck
                                   ---------------------------------------------
                                   Name:    Ronald N. Beck
                                   Title:   Managing Director

                              Address for Notices:
                              Oaktree Capital Management, LLC
                              333 South Grand Avenue, 28th floor
                              Los Angeles, CA 90071
                              Attention:  General Counsel
                              Telephone:  (213) 830-6300
                              Facsimile:  (213) 830-8522

<PAGE>

                              HOULIHAN LOKEY HOWARD & ZUKIN
                              CAPITAL, LLC

                              By:     /s/ Saul E. Burian
                                   ---------------------------------------------
                                   Name: Saul E. Burian
                                   Title: Sr. VP

                              Address for Notices:
                              685 Third Avenue
                              New York, New York  10017
                              Attention:  Saul E. Burian
                              Telephone:  (212) 497-4245
                              Facsimile:  (212) 661-3070

                              CAPITALSOURCE HOLDINGS LLC

                              By:     /s/ Steven A. Museles
                                   ---------------------------------------------
                                   Name:    Steven A. Museles
                                   Title:   Senior Vice President

                              Address for Notices:
                              4445 Willard Avenue, 12th Floor
                              Chevy Chase, Maryland  20815
                              Attention:  Corporate Finance Group,
                              Portfolio Manager
                              Telephone:  (301) 841-2700
                              Facsimile:  (301) 841-2340<PAGE>

                                                                    Exhibit 10.4

                          REGISTRATION RIGHTS AGREEMENT

         REGISTRATION RIGHTS AGREEMENT (this "Agreement"), dated as of June 28,
2002 by and among Acorn Products, Inc., a Delaware corporation (the "Company"),
and the Shareholders listed on Exhibit A to this Agreement (the "Shareholders").

                               W I T N E S S E T H

         WHEREAS, the Shareholders are holders of shares of unregistered Common
Stock;

         WHEREAS, the Company believes that unorganized sales of shares of
Common Stock by the Shareholders in the public market could have an adverse
effect on prevailing market prices for the Common Stock and could adversely
impact the Company's ability to participate in the capital markets;

         WHEREAS, in order to provide for the orderly distribution of the shares
of Common Stock held by the Shareholders, the Company has agreed to grant
registration rights to the Shareholders with respect to the shares of Common
Stock as set forth herein.

         NOW, THEREFORE, the parties hereto agree as follows:

         1.       Definitions.

                  (a)      As used in this Agreement the following terms shall
have the following meanings:

         "Act": the Securities Act of 1933, as amended, and the rules and
regulations of the Commission thereunder.

         "Additional Registration Rights Holder": as defined in Section 3(c).

         "Additional Securities": as defined in Section 4(d).

         "Agreement": as defined in the preamble.

         "Commission": the Securities and Exchange Commission or any other
federal agency at the time administering the Act.

         "Common Stock": the common stock, $0.001 par value, of the Company.

         "Company": as defined in the preamble.

         "Demand Notice": as defined in Section 4(b).

         "Estimated Effective Date": as defined in Section 2.

<PAGE>

         "Exchange Act": the Securities Exchange Act of 1934, as amended, and
the rules and regulations of the Commission thereunder.

         "GAAP": generally accepted accounting principles in the United States
of America in effect from time to time.

         "Holder": a Shareholder or a Permitted Transferee.

         "Initiating Holders": means one or more Holders who, singularly or in
the aggregate, hold 25% or more of the Registrable Securities.

         "Indemnified Person": as defined in Section 8(a).

         "Permitted Transferee": any transferee that receives Registrable
Securities who agrees in writing to become bound by the terms of this Agreement.

         "Person": an individual, partnership, joint venture, corporation,
trust, unincorporated organization or a government or any department or agency
thereof.

         "Piggyback Notice": as defined in Section 2.

         "Prospective Seller": with respect to any registration, a Holder that
proposes to include shares of Registrable Securities in such registration.

         "Register," "Registered" and "Registration": a registration effected by
preparing and filing a registration statement in compliance with the Act, the
declaration or ordering of effectiveness of such registration statement by the
Commission and the compliance with all applicable state securities or blue sky
laws which will permit the sale of Registrable Securities to the public.

         "Registrable Securities": those shares of Common Stock now owned or
hereafter acquired by the Shareholders. Each share of Registrable Securities
shall cease to be Registrable Securities when (a) a registration statement with
respect to the sale of such stock shall have become effective under the Act and
such stock shall have been disposed of in accordance with such registration
statement, (b) such stock ceases to be outstanding, (c) such stock has been sold
pursuant to Rule 144(k) or (d) such stock is no longer held by a Holder.

         "Registration Expenses": as defined in Section 7.

         "Shareholders": as defined in the preamble.

         "Underwritten Offering": a registration in which securities of the
Company are sold to an underwriter for reoffering to the public.

                  (b)      Unless otherwise specified herein, all terms defined
in this Agreement shall have the defined meanings when used in any certificate
or document made or delivered pursuant hereto.

2

<PAGE>

                  (c)      As used herein and in any certificate or other
documents made or delivered pursuant hereto, accounting terms not defined in
Section l(a) and accounting terms partly defined in Section l(a) to the extent
not defined, shall have the respective meanings given to them under GAAP.

                  (d)      Any reference to any provision of or rule under the
Act or the Exchange Act shall encompass any successor provision or rule.

                  (e)      The words "hereof", "herein" and "hereunder" and
words of similar import when used in this Agreement shall refer to this
Agreement as a whole and not to any particular provision of this Agreement, and
section, subsection, schedule and exhibit references are to this Agreement
unless otherwise specified.

                  (f)      The meanings given to terms defined herein shall be
equally applicable to the singular and plural forms of such terms.

         2.       Incidental Registration. If the Company proposes to register
any of its securities for sale (other than a registration relating to the sale
of securities to employees of the Company pursuant to a stock option, stock
purchase or similar plan including a registration statement on Form S-8, an
exchange offer, a transaction subject to Rule 145 of the Act or in connection
with the acquisition of the assets or shares of or merger or consolidation with
another company), and the registration form to be used also may be used for the
registration of the Registrable Securities, then it shall give written notice (a
"Piggyback Notice"), at its expense, to all Holders of Registrable Securities of
its intention to do so at least 10 business days prior to the initial filing of
a registration statement with respect to such registration with the Commission.
The Company shall specify in the Piggyback Notice the form and manner of, and
the other relevant facts involved in, such proposed registration, including the
estimated effective date of the registration statement for such registration
(the "Estimated Effective Date"). If any Holder desires to dispose of all or
part of its Registrable Securities in such registration, it shall deliver to the
Company, within 10 business days after receipt of the Piggyback Notice, written
notice of such request stating the number of shares of Registrable Securities so
proposed to be sold by such Holder. Any Holder may withdraw its request for
inclusion at any time prior to 15 business days prior to the Estimated Effective
Date. The Company shall use its commercially reasonable efforts to cause all
shares of Registrable Securities specified in such written notice to be included
in such registration, subject, however, to the limitations set forth in Section
3 and provided that, for purposes of this sentence, commercially reasonable
efforts shall not require the Company or any other seller of securities of the
Company (other than a Holder of Registrable Securities), to reduce the amount or
sale price of such securities proposed to be so registered.

         3.       Limitations on Incidental Registration.

                  (a)      If the registration for which the Company gives
notice pursuant to Section 2 is for the purpose of permitting a disposition of
securities pursuant to an Underwritten Offering, the Piggyback Notice shall so
state, and, if requested to do so by the managing underwriter of the offering,
the Company shall have the right to limit the aggregate size of the offering or
the number of shares of Registrable Securities to be included therein by the
Holders in accordance with the provisions of Section 3(b) below.

3
<PAGE>

                  (b)      Whenever the number of shares of Registrable
Securities that may be registered pursuant to Section 2 is limited by the
provisions of Section 3(a) above, the Company or any other seller of securities
of the Company for whom such registration was initiated, as the case may be,
shall have priority as to sales over the Holders, and each Holder hereby agrees
that it shall withdraw its securities from such registration to the extent
necessary to allow the Company or such other seller of securities of the Company
to include all the shares it desires to include in such registration, and
thereafter the number of shares of Registrable Securities to be included in such
registration shall be allocated pro rata among Holders of Registrable Securities
(with such allocation to be made on the basis of the number of shares requested
to be included in such registration by such Holders) and any person other than a
Holder who holds registration rights with respect to securities of the Company
(each such person, an "Additional Registration Rights Holder") to the extent
provided in the relevant agreement between the Company and the Additional
Registration Rights Holder.

                  (c)      Nothing in this Section 3 shall be construed as
creating an obligation on the part of the Company to register Registrable
Securities if the Board of Directors of the Company shall have determined in its
sole discretion not to proceed with a registration of its securities whether or
not a Piggyback Notice shall have previously been sent by the Company.

         4.       Registration on Request.

                  (a)      The Initiating Holders may by written notice make a
request that the Company effect the registration under the Act of all or part of
such Initiating Holders' Registrable Securities, specifying the intended method
or methods of disposition thereof, including, without limitation, on a delayed
or continuous basis pursuant to Rule 415 of the Act; provided that the
Shareholders, collectively, are entitled to an aggregate of four such
registrations pursuant to this Section 4(a). Notwithstanding the provisions of
this Section 4(a), the Company shall not be obligated to effect a registration
under the Act of the designated Registrable Securities if in the preceding 180
days the Company shall have previously effected a registration under the Act of
the Company's securities.

                  (b)      Upon receipt of the request of the Initiating Holders
pursuant to Section 4(a), the Company shall give written notice of the requested
registration (a "Demand Notice"), at its expense, to all Holders of Registrable
Securities within 15 business days of receipt of such Initiating Holders'
request and thereupon shall use its commercially reasonable efforts to effect
the registration under the Act of:

                           (i)      the Registrable Securities that the Company
         has been so requested to register by the Initiating Holders for
         disposition in accordance with the intended method or methods of
         disposition stated in such request; and

                           (ii)     all other Registrable Securities that the
         Company has been requested to register by the Holders thereof by
         written request delivered to the Company within 15 business days after
         the giving of the Demand Notice (which request shall specify the
         intended method or methods of disposition of such Registrable
         Securities);

4
<PAGE>
all to the extent required to permit the disposition (in accordance with the
intended methods thereof as aforesaid) of the Registrable Securities so to be
registered.

                  (c)      Whenever the Company shall effect a registration of
Registrable Securities pursuant to this Section 4, subject to Section 4(d)
below, (i) any Additional Registration Rights Holder shall have the right to
include in the registration made pursuant to this Section 4, to the extent
provided in the relevant agreement between the Company and the Additional
Registration Rights Holder, the securities held by such Additional Registration
Rights Holders to which such registration rights relate and (ii) the Company
shall have the right to include in the registration made pursuant to this
Section 4 any securities to be issued by the Company (the securities referred to
in clause (i) and (ii) above are hereinafter referred to as "Additional
Securities").

                  (d)      Each registration requested pursuant to this Section
4 shall be effected by the filing of a registration statement on the applicable
form, as reasonably determined by the Company.

                  (e)      If the managing underwriter of any Underwritten
Offering undertaken pursuant to this Section 4 shall advise the Company in
writing (with a copy to each holder of Registrable Securities requesting
registration) that, in its opinion, the number or type of securities requested
to be included in such registration (including any Additional Securities) is a
number or type which would adversely affect such offering, then the number of
shares of Registrable Securities to be included in such registration shall be
allocated pro rata among Holders of Registrable Securities (with such allocation
to be made on the basis of the number of shares requested to be included in such
registration by such Holders) and, thereafter, pro rata among the Company and
the Additional Registration Rights Holders (such limited number to be allocated
between the Company and the affected Additional Registration Rights Holders as
the Company shall determine).

                  (f)      If the Company determines, in its reasonable
judgment, that a registration requested pursuant to this Section 4 would
interfere with or require public disclosure of any financing, acquisition,
disposition, corporate reorganization or other transaction involving the Company
or its subsidiaries which would have a material adverse effect on such
transaction, the Company shall be entitled to postpone for a reasonable period
of time (not to exceed 90 days) the filing, supplementing or amending of any
such registration statement. Upon such determination, the Company shall give the
holders of Registrable Securities requesting registration written notice of such
determination and an estimate of the anticipated delay. The Company shall not,
within 120 days of the expiration of any such postponement, exercise again its
right of postponement pursuant to this Section 4(f). If the Company shall so
postpone the filing of a registration statement, such holders of Registrable
Securities may withdraw their request for registration by giving written notice
to the Company within 15 days of receipt of the notice of postponement and such
withdrawn request shall not constitute a request for registration pursuant to
Section 4(a).

                  (g)      Notwithstanding anything in this Section 4 to the
contrary, in no event shall the Company be required to effect a registration
pursuant to this Section 4 in which

5
<PAGE>

the estimated aggregate gross proceeds from the sale of Registrable Securities
included therein is less than $3 million.

         5.       Underwritten Offerings.

                  (a)      Selection of Underwriters. Whenever a registration
requested pursuant to Section 4 hereof is for an Underwritten Offering, the
Initiating Holders shall select managing underwriter(s) of recognized standing
to administer the offering, subject to approval by the Company with such
approval not to be unreasonably withheld, and each Holder requesting
registration of its Registrable Securities for disposition in an Underwritten
Offering agrees to include such Registrable Securities such Underwritten
Offering and shall be bound by the provisions of this Section 5.

                  (b)      Underwriting Agreement. If requested by the
underwriters for any Underwritten Offering of Registrable Securities pursuant to
a registration requested under Section 4 hereof, the Company shall enter into an
underwriting agreement with such underwriters for such offering, such agreement
to contain representations and warranties by the Company and other terms and
provisions not inconsistent with this Agreement as are customarily contained in
underwriting agreements with respect to secondary distributions, including,
without limitation, indemnities to the effect and to the extent provided in
Section 8 hereof; and the Company will cooperate with such Holders of
Registrable Securities to the end that the conditions precedent to the
obligations of such Holders of Registrable Securities under such underwriting
agreement shall not include conditions that are not customary in underwriting
agreements with respect to secondary distributions and shall be otherwise
reasonably satisfactory to such Holders. The Holders on whose behalf shares of
Registrable Securities are to be distributed by such underwriters shall be
parties to any such underwriting agreement and the representations and
warranties by, and the other agreements on the part of the Company to and for
the benefit of such underwriters, shall also be made to and for the benefit of
such Holders selling Registrable Securities. Such Holders shall not be required
by the Company to make any representations or warranties to or agreements with
the Company or the underwriters (including any restrictions on sales
inconsistent with Section 5(c) hereof) other than reasonable representations,
warranties or agreements regarding such Holder, such Holder's Registrable
Securities and such Holder's intended method or methods of disposition and any
other representation required by law. If requested by the underwriters for any
Underwritten Offering of Registrable Securities pursuant to a registration under
Section 2 hereof, the Holders on whose behalf shares of Registrable Securities
are to be distributed by such underwriters shall execute and deliver to such
underwriters and the Company an Underwriting Agreement, subject to the
limitations set forth in the preceding two sentences.

                  (c)      Restrictions on Sales by Holders. If any registration
subject to Section 2 or 4 shall be in connection with an Underwritten Offering
on a firm commitment basis, each Holder agrees, if and to the extent requested
in writing by the managing underwriter, not to effect any public sales or
distribution (other than as part of such Underwritten Offering pursuant to
Section 2 or 4, respectively) of Common Stock, any securities of the Company
similar to Common Stock or any securities of the Company convertible,
exchangeable or exercisable for Common Stock, including a sale pursuant to Rule
144 or pursuant to a registered offering not being distributed on a firm
commitment basis by or through one or more underwriters, within the

6
<PAGE>

period from seven days prior to the effective date of such registration
statement up to 90 days after the effective date of such registration statement
or such other period not to exceed 120 days after the effective date of such
registration statement as may be required by such managing underwriter.

                  (d)      Restrictions on Sales by the Company. The Company
agrees not to effect any public sale or distribution of any Common Stock, any
securities of the Company similar to Common Stock or any securities of the
Company convertible, exchangeable or exercisable for Common Stock (including
pursuant to a registered offering not being distributed on a firm commitment
basis by or through one or more underwriters) within the period from seven days
prior to the effective date of any registration statement that includes
Registrable Securities to be distributed by or through one or more underwriters
on a firm commitment basis up to 90 days after the effective date of such
registration statement or such other period not to exceed 180 days after the
effective date of such registration statement as may be required by such
managing underwriter unless such sale or distribution is pursuant to such
registration statement (or a separate registration statement filed
concurrently); provided, however, that the foregoing shall not prevent the
conversion or exchange of any securities pursuant to their terms into or for
other securities or the offer or sale of securities by the Company pursuant to a
dividend reinvestment plan or to its employees or directors pursuant to an
employee benefit plan.

         6.       Registration Procedures.

                  (a)      Each Prospective Seller shall furnish to the Company
such information as the Company may reasonably require for inclusion in the
registration statement (and the prospectus included therein).

                  (b)      The Prospective Sellers shall not (until further
notice) effect sales of the shares covered by the registration statement after
receipt of telegraphic or written notice from the Company to suspend sales to
permit the Company to correct or update a registration statement or prospectus.

         7.       Expenses of Registration. All expenses of registration
pursuant to either Section 2 or 4, including, without limitation, all
registration and filing fees, printing expenses (including reasonable expenses
of printing prospectuses), expenses of compliance with securities or blue sky
laws (including reasonable fees and disbursements of counsel in connection with
blue sky qualifications or registrations (or the obtaining of exemptions
therefrom) of Registrable Securities), fees and disbursements of counsel,
auditors or experts for the Company, expenses of any audits incidental to or
required by any such registration, expenses of all marketing and promotional
efforts requested by the managing underwriter (collectively, "Registration
Expenses") shall be borne by the Company; provided, however, that each
Prospective Seller shall bear all underwriting discounts, commissions or fees
and all brokerage fees or commissions relating to the sale of its Registrable
Securities and the fees and expenses of counsel for such Prospective Seller.

7
<PAGE>

         8.       Indemnification.

                  (a)      Indemnification by the Company. In connection with
any registration statement filed pursuant to Section 2 or 4 hereof, the Company
shall indemnify and hold harmless each Holder selling Registrable Securities
covered by such registration statement, its directors, officers, employees,
agents, each other Person who participates as an underwriter in the offering or
sale of such securities and each other Person, if any, who controls such Holder
or such underwriter within the meaning of Section 15 of the Act or Section 20 of
the Exchange Act (each, an "Indemnified Person"), against any losses, claims,
damages, liabilities or expenses (including reasonable costs of investigation
and reasonable legal expenses), joint or several, to which such Person may
become subject, insofar as such losses, claims, damages, liabilities or expenses
(or actions or proceedings in respect thereof) arise out of or are based upon
(i) any untrue statement or alleged untrue statement of any material fact
contained in any registration statement under which such securities were
registered under the Act, any preliminary prospectus, final prospectus or
summary prospectus contained therein, or any amendment thereof or supplement
thereto, or any document incorporated by reference therein, or (ii) any omission
or alleged omission to state therein a material fact required to be stated
therein or necessary to make the statements therein not misleading, or (iii) any
violation by the Company of any federal, state or common law rule or regulation
applicable to the Company and relating to action required of or inaction by the
Company in connection with any such registration, and the Company shall
reimburse such Indemnified Person for any legal or other expenses reasonably
incurred by them in connection with investigating or defending any such loss,
claim, liability, action or proceeding, provided that the Company shall not be
liable in any such case to the extent that any such loss, claim, damage,
liability or expense (or action or proceeding in respect thereof) arises out of
or is based upon an untrue statement or alleged untrue statement or omission or
alleged omission made in such registration statement, any such preliminary
prospectus, final prospectus, summary prospectus, amendment or supplement in
reliance upon and in conformity with written information about such Indemnified
Person furnished to the Company through an instrument duly executed by such
Indemnified Person specifically stating that it is for use in the preparation of
such registration statement, preliminary prospectus, final prospectus, summary
prospectus, amendment or supplement. Such indemnity shall remain in full force
and effect regardless of any investigation made by or on behalf of such
Indemnified Person and shall survive the transfer of such securities by such
seller. The Company shall agree to a provision for contribution relating to such
indemnity as shall be reasonably requested by any seller of Registrable Shares
or the underwriters.

                  (b)      Indemnification by the Prospective Sellers. The
Company may require, as a condition to including any Registrable Securities in
any registration statement filed pursuant to Section 2 or 4 hereof, that the
Company shall have received an undertaking satisfactory to it from each
Prospective Seller to indemnify and hold harmless such Person, each director of
such Person, each officer of such Person who shall sign such registration
statement, each Person who participates as an underwriter (if such underwriter
so requests) in the offering or sale of such securities and each other Person,
if any, who controls the Company or any such underwriter within the meaning of
Section 15 of the Act or Section 20 of the Exchange Act, against any losses,
claims, damages, liabilities or expenses (including reasonable costs of
investigation and reasonable legal expenses), to which such Person may become
subject, insofar as such losses, claims, damages, liabilities or expenses (or
actions or proceedings in respect

8
<PAGE>

thereof) arise out of or are based upon (i) any untrue statement or alleged
untrue statement of any material fact contained in any registration statement
under which such securities were registered under the Act, any preliminary
prospectus, final prospectus or summary prospectus contained therein, or any
amendment thereof or supplement thereto, or any document incorporated by
reference therein, or (ii) any omission or alleged omission to state therein a
material fact required to be stated therein or necessary to make the statements
therein not misleading, if such actual or alleged statement or omission
described in (i) or (ii) above was made in reliance upon and in conformity with
written information about such Prospective Seller furnished to such Person
through an instrument duly executed by such Prospective Seller specifically
stating that it is for use in the preparation of such registration statement,
preliminary prospectus, final prospectus, summary prospectus, amendment or
supplement. The indemnification obligations of any Prospective Seller shall not
be greater than the dollar amount of the net proceeds received by such
Prospective Seller upon the sale of the Registrable Securities giving rise to
such obligation. Such indemnity shall remain in full force and effect regardless
of any investigation made by or on behalf of such Person or any such director,
officer, participating Person or controlling Person and shall survive the
transfer of such securities by such Prospective Seller.

                  (c)      Notice of Claims, etc. Promptly after receipt by an
indemnified party of notice of the commencement of any action, proceeding,
investigation or threat involving a claim referred to in Section 8(a) or 8(b),
such indemnified party shall, if a claim in respect thereof is to be made
against an indemnifying party, give written notice to the latter of the
commencement of such action, proceeding, investigation or threat; provided that
the failure of any indemnified party to give notice as provided herein shall not
relieve the indemnifying party of its obligations under the preceding
subdivisions of this Section 8 except to the extent that the indemnifying party
is actually prejudiced by such failure to give notice. In case any such action
is brought against an indemnified party, unless a conflict of interest between
such indemnified and indemnifying parties exists in respect of such claim, the
indemnifying party shall be entitled to participate in and to assume the defense
thereof, jointly with any other indemnifying party similarly notified, to the
extent that it may wish, and after notice from the indemnifying party to such
indemnified party of its elections so to assume the defense thereof, the
indemnifying party shall not be liable to such indemnified party for any legal
or other expenses subsequently incurred by the latter in connection with the
defense thereof other than reasonable costs of investigation. No indemnifying
party shall, without the consent of the indemnified party, which consent shall
not be unreasonably withheld or delayed, consent to entry of any judgment or
enter into any settlement that does not include as an unconditional term thereof
the giving by the claimant or plaintiff to such indemnified party of a release
from all liability in respect to such claim or litigation.

                  (d)      Other Indemnification. Indemnification similar to
that specified in the preceding subdivisions of this Section 8 (with appropriate
modifications) shall be given by the Company and each seller of Registrable
Securities with respect to any required registration or other qualification of
such Registrable Securities under any state securities or blue sky law or
regulation of a governmental authority other than the Act.

                  (e)      Contribution. If the indemnification provided for in
Section 8(a) or 8(b) above is unavailable or insufficient to hold harmless an
indemnified party in respect of any losses, claims, damages or liabilities
referred to therein, then each indemnifying party, in lieu of

9
<PAGE>

indemnifying such indemnified party thereunder, shall contribute to the amount
paid or payable by such indemnified party as a result of such losses, claims,
damages or liabilities, in such proportion as is appropriate to reflect the
relative fault of the indemnifying party on the one hand and of the indemnified
parties on the other in connection with the statements or omissions which
resulted in such losses, claims, damages or liabilities, as well as any other
relevant equitable considerations.

Such relative fault shall be determined by reference to, among other things,
whether any untrue or alleged untrue statement of a material fact or any
omission or alleged omission to state a material fact relates to information
supplied by the indemnifying party, or by the indemnified parties, and the
parties' relative intent, knowledge, access to information and opportunity to
correct or prevent such statement or omission.

         The Company and the Holders agree that it would not be just and
equitable if contribution pursuant to this Section 8(e) 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; provided that the Company and each holder of Registrable Securities
shall agree with each other and the underwriters of the Registrable Securities,
if requested by such underwriters, that the underwriter's portion of such
contribution shall not exceed the underwriting discount. The amount paid or
payable by an indemnified party as a result of the losses, claims, damages and
liabilities or actions in respect thereof referred to in the immediately
preceding paragraph shall be deemed to include, subject to the limitations set
forth above, any legal or other expenses reasonably incurred by such indemnified
party in connection with investigating or defending any such action or claim.
The contribution obligations of any Prospective Seller shall not be greater than
the excess of (i) the dollar amount of the net proceeds received by such
Prospective Seller upon the sale of the Registrable Securities giving rise to
such contribution obligation over (ii) the dollar amount of any damages that
such Holder has otherwise been required to pay by reason of the untrue or
alleged untrue statement or omission or alleged omission giving rise to such
obligation. No Person guilty of fraudulent misrepresentations (within the
meaning of Section 11(f) of the Act) shall be entitled to contribution from any
Person who was not guilty of such fraudulent misrepresentation.

                  (f)      Indemnification Payments. The indemnification
required by this Section 8 shall be made by periodic payments of the amount
thereof during the course of the investigation or defense, as and when bills are
received or expense, loss, damage or liability is incurred.

         9.       Miscellaneous.

                  (a)      Notices. Any notice or other communication required
or permitted to be given hereunder shall be in writing and shall be sent by
overnight courier service; or delivered (in person or by telecopy) against
receipt, in each case to the party to whom it is given: (i) if to the Company,
to it at 390 West Nationwide Boulevard, Columbus, Ohio 43125, with a copy to
John G. Jacob, Chief Financial Officer and (ii) if to the Holders, to such
address indicated below such Holder's name on the signature page hereto, or at
such other address or facsimile number as such Holder shall have furnished to
the Company and each other Holder in writing.

10
<PAGE>

         Any notice or other communication given hereunder shall be deemed given
when sent, except for a notice changing a party's address, which shall be deemed
given at the time of receipt thereof.

                  (b)      Assignment. Except with respect to Permitted
Transferees, neither this Agreement nor any of the rights, interests or
obligations hereunder shall be assigned by the Company or the Holders without
the prior written consent of the other party, and any purported assignment shall
be void.

                  (c)      Binding Effect. The provisions of this Agreement
shall be binding upon and inure to the benefit of the Company and the Holders
and their respective successors and permitted assigns.

                  (d)      Third-Party Beneficiaries. This Agreement does not
create, and shall not be construed as creating, any rights enforceable by any
Person not a party to this Agreement other than any assignee with respect to
whom the respective assignment was made in accordance with the terms hereof.

                  (e)      Effectiveness. This Agreement shall be effective as
of the date first written above.

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

                  (g)      Governing Law. This Agreement and the rights and
obligations of the parties under this Agreement shall be governed by, and
construed and interpreted in accordance with, the substantive law of the State
of Delaware without regard to principles of choice or conflicts of laws.

                  (h)      Attorney's Fees. In the event of litigation arising
between the parties respecting the subject matter hereof, the prevailing party
shall be entitled to recover its reasonable attorney's fees and costs.

                  (i)      Expenses. Except as otherwise specifically set forth
herein, each party shall bear its own costs and expenses incurred in connection
with this Agreement or the transactions herein contemplated.

11
<PAGE>

         IN WITNESS WHEREOF, the parties hereto have duly executed this
Agreement or caused this Agreement to be executed by their respective officers
thereunto duly authorized as of the day and year first written above.

                             ACORN PRODUCTS, INC.

                             By:  /s/ A. Corydon Meyer
                                  ----------------------------------------------
                                  Name:  A. Corydon Meyer
                                  Title:  President and Chief Executive Officer

                             OCM PRINCIPAL OPPORTUNITIES FUND, L.P.

                             By:  Oaktree Capital Management, LLC,
                                  Its General Partner

                             By:  /s/ Vincent J. Cebula
                                  ----------------------------------------------
                                  Name:  Vincent J. Cebula
                                  Title:   Managing Director

                             By:  /s/ Stephen A. Kaplan
                                  ----------------------------------------------
                                  Name:  Stephen A. Kaplan
                                  Title:   Principal

                             Address for Notices:

                             c/o Oaktree Capital Management, LLC
                             1301 Avenue of the Americas, 34th Floor
                             New York, New York 10019
                             Attention: Vincent J. Cebula.

12
<PAGE>

                             HOULIHAN LOKEY HOWARD & ZUKIN
                             CAPITAL, LLC.

                             By:  /s/ Saul E. Burian
                                  ----------------------------------------------
                                  Name: Saul E. Burian
                                  Title: Sr. VP

                                  Address for Notices:
                                  685 Third Avenue
                                  New York, New York  10017
                                  Attention: Saul E. Burian

                             CAPITALSOURCE HOLDINGS LLC

                             By:  /s/ Steven A. Museles
                                  ----------------------------------------------
                                  Name: Steven A. Museles
                                  Title: Senior Vice President

                                  Address for Notices:
                                  4445 Willard Avenue, 12th Floor
                                  Chevy Chase, Maryland 20815
                                  Attention: Corporate Finance Group
                                  Portfolio Manager
                                  Telephone: (301) 841-2700
                                  Facsimile: (301) 841-2340

13
<PAGE>

                                    EXHIBIT A

                            SCHEDULE OF SHAREHOLDERS

OCM PRINCIPAL OPPORTUNITIES FUND, L.P.

HOULIHAN LOKEY HOWARD & ZUKIN CAPITAL, LLC

CAPITALSOURCE HOLDINGS LLC

14
<PAGE>

                                   EXHIBIT B

                           SCHEDULE OF FUND INVESTORS

15

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00040-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00040-of-00352.parquet"}]]