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TABLE OF CONTENTS
 Page No.SECTION 1 DEFINITIONS
    
    
    11.1 Definitions
    
    
    1SECTION 2  PREMISES
    
    
    32.1 Lease Grant
    
    
    32.2 Improvements
    
    
    42.3 WAIVER OF WARRANTIES; ACCEPTANCE OF CONDITION.
    
    
    42.4 Option to Lease Additional Space
    
    
    4SECTION 3 LEASE TERM
    
    
    43.1 Lease Term
    
    
    43.2 Confirmation of Commencement Date
    
    
    43.3 Delay in Commencement Date
    
    
    53.4 Holding Over
    
    
    5SECTION 4 RENT
    
    
    54.1 Payment of Rent.
    
    
    54.2 Basic Operating Costs.
    
    
    54.3 Other Amounts Owing to Landlord
    
    
    84.4 Late Payments; Dishonored Checks
    
    
    84.5 Net Lease
    
    
    8SECTION 5 CREDIT ENHANCEMENT
    
    
    85.1 Security Deposit
    
    
    85.2 Guaranty
    
    
    8SECTION 6 LEGAL AND CONTRACTUAL LIMITATIONS ON USE OF PREMISES
    
    
    96.1 Use
    
    
    96.2 Compliance with Laws
    
    
    96.3 Building Rules and Regulations; No Nuisance
    
    
    106.4 Quiet Enjoyment
    
    
    10SECTION 7 OPERATIONAL MATTERS
    
    
    107.1 Services to be Furnished by Landlord
    
    
    107.2 Parking
    
    
    117.3 Signage
    
    
    117.4 Repairs and Maintenance by Landlord
    
    
    117.5 Maintenance by Tenant
    
    
    117.6 Repairs by Tenant
    
    
    127.7 Alterations, Improvements
    
    
    127.8 Telecommunications
    
    
    137.9 Change of Name or Common Areas
    
    
    137.10 Entry by Landlord
    
    
    13SECTION 8 TRANSFER OF LEASEHOLD RIGHTS
    
    
    138.1 Transfers by Tenant
    
    
    138.2 Affiliate Transfers
    
    
    148.3 Transfer Requirements
    
    
    148.4 Transfers by Landlord
    
    
    158.5 Sublease of Offer Space
    
    
    15SECTION 9 INSURANCE; CASUALTY; ALLOCATION OF LIABILITY
    
    
    159.1 Property Insurance
    
    
    159.2 Liability and Other Insurance
    
    
    159.3 Casualty Damage
    
    
    16
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Page No.9.4 INDEMNITY BY TENANT
    
    
    169.5 INDEMNITY BY LANDLORD
    
    
    179.6 Waiver of Claims and Subrogation Rights
    
    
    179.7 Damages from Certain Causes
    
    
    17SECTION 10  CONDEMNATION
    
    
    1810.1 Condemnation
    
    
    1810.2 Condemnation Award
    
    
    18SECTION 11 TITLE ENCUMBRANCES
    
    
    1811.1 Subordination to Mortgage; Lender Rights
    
    
    1811.2 Landlords Lien; Security Interest
    
    
    1911.3 Mechanics Liens
    
    
    19SECTION 12 DEFAULT; DISPUTES; REMEDIES
    
    
    1912.1 Default by Tenant
    
    
    1912.2 Landlords Remedies
    
    
    1912.3 Default by Landlord
    
    
    2012.4 Limitation on Landlords Liability
    
    
    2112.5 Attorneys Fees
    
    
    21SECTION 13  MISCELLANEOUS
    
    
    2113.1 Notices
    
    
    2113.2 Estoppel Agreements
    
    
    2113.3 No Implied Waiver
    
    
    2113.4 Independent Obligations
    
    
    2113.5 Severability
    
    
    2113.6 Recording
    
    
    2113.7 Governing Law
    
    
    2113.8 Force Majeure
    
    
    2113.9 Time of Performance
    
    
    2213.10 Commissions
    
    
    2213.11 Merger of Estates
    
    
    2213.12 Survival of Indemnities and Covenants
    
    
    2213.13 Headings
    
    
    2213.14 Entire Agreement
    
    
    2213.15 Amendment
    
    
    2213.16 Joint and Several Liability
    
    
    2213.17 Multiple Counterparts
    
    
    2213.18 Effect of Delivery of this Lease
    
    
    2213.19 Property Code
    
    
    22
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LEASE AGREEMENT
 Lease Effective Date Landlord Tenant
 
 SECTION 1  DEFINITIONS
 
 Definitions
 Base Rent
 Base Rent perSquare Foot ofFloor Space (perLease Year
    
    year)
    
    Annual Base Rent
    
    Monthly Base Rent1-2
    
    $
    12.12
    *
    
    $
    587,820.00
    *
    
    $
    48,985.00
    *3-6
    
    $
    12.78
    
    
    $
    619,830.00
    
    
    $
    51,652.507-10
    
    $
    13.10
    
    
    $
    635,350.00
    
    
    $
    52,945.83
 
 *
    
    Base Rent for the first 7 months of the Lease Term will be abated pursuant to Section
4.1(c). Basic Operating Costs Section 4.2
 Broker
 Building
 Building 1 Exhibit B
 Building 2 Exhibit B
 Building 3 Exhibit B
 Building 4 Exhibit B
 Buildings
 Building Standard
 Commencement Date
 Common Areas Common Areas Common Areas




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Complex
 Default Rate
 Improvements
 Landlord-Related Party
 Lease Term
 Lease Year
 Market Area
 Notice Address
 With respect to Landlord:
    
    c/o Champion Partners Group, Ltd.8401 N. Central ExpresswaySuite 410Dallas, Texas 75225Attn: Barney SinclairTel.: 214.365.8523Fax: 972.490.5599With a copy to:
    
    Winstead Sechrest & Minick P.C.1201 Elm Street, Suite 5400Dallas, Texas 75270Attn: T. Andrew Dow, Esq.Tel.: 214.745.5387Fax: 214.745.5390With respect to Tenant:
    
    FUNimation Productions, LTD(Prior to the Commencement Date)
    
    6851 N.E. Loop 820, Ste. 400Fort Worth, TX 76180Attn: Ward ThomasTel.: 817-788-0627 ext 300Fax: 817-788-0628With a copy to:
    
    Navarre Corporation7400 49th Avenue NorthNew Hope, MN 55428Attn: General CounselTel.: 763-535-8333Fax: 763-504-1107With respect to Tenant:
    
    FUNimation Productions, LTD(After the Commencement Date)
    
    1200 Lakeside Parkway, Building 1Flower Mound, Texas 75028Attn: Ward ThomasTel.:Fax:With a copy to:
    
    Navarre Corporation7400 49th Avenue NorthNew Hope, MN 55428Attn: General CounselTel.: 763-535-8333Fax: 763-504-1107




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Parking Areas
 Parking Spaces Exhibit B
 Premises Exhibit B
 Property Exhibit A
 Punchlist Items
 Ready for Occupancy
 Rent Section 4
 Rules and Regulations Exhibit C
 Security Deposit
 Service Areas
 State
 Substantially Complete Section 6.1
 Taxes Taxes Taxes
 Tenant Improvements Agreement Exhibit D
 Tenant-Related Party
 Tenants Share
 
 SECTION 2  PREMISES
 
 Lease Grant




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Improvements
 
 WAIVER OF WARRANTIES; ACCEPTANCE OF CONDITION
 DISCLAIMED WARRANTIES
  Section 2.3(c)
 
 Option to Lease Additional Space Right of First Offer Offer Space Offer Section 2.4
 
 SECTION 3  LEASE TERM
 
 Lease Term
 
 Confirmation of Commencement Date Exhibit
E




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Delay in Commencement Date Section 13.8
 
 Holding Over
 
 SECTION 4  RENT
 
 Payment of Rent
   Section 4.1(c) th
  
 Basic Operating Costs
 Section 4.1 Controllable Costs




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##### Table of Contents



Statement Section 1.1 Section 1.1
 Dispute Section 4.2(e) Section 4.2(d) Section 4.2(e)




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Section 4.2(c) Section 4.2(d)
 Basic Operating Costs Section 4.2(g) Basic Operating Costs
 Basic Operating Costs
 Section 4.2(f)
 Section 4.2(f)
   Section 4.2(f)




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Other Amounts Owing to Landlord
 
 Late Payments; Dishonored Checks
  Section 4.4(a)
   
 Net Lease
 
 SECTION 5  CREDIT ENHANCEMENT
 
 Security Deposit
 
 Guaranty Guarantor




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Guaranty Exhibit G
 
 SECTION 6  LEGAL AND CONTRACTUAL LIMITATIONS ON USE OF PREMISES
 
 Use
 
 Compliance with Laws
  Section 6.2(a) Environmental Laws
 Hazardous Substances
 Authorities
  Section 6.2(b) Section
6.2(b)
 Section 6.2(b)




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Section 6.2(b)
 Section 6.2(b)
 Section 6.2(b)
 Accessibility Laws Accessibility Laws . Section 6.2(c)
 
 Building Rules and Regulations; No Nuisance
   
 Quiet Enjoyment
 
 SECTION 7  OPERATIONAL MATTERS
 
 Services to be Furnished by Landlord.




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Parking
   
 Signage Exhibit D Exhibit D Exhibit D
 
 Repairs and Maintenance by Landlord Section 7.4 Section 4.2(g)
 
 Maintenance by Tenant
 Section 7.4 Section 7.4




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Repairs by Tenant
  Section 7.6(a) Section 7.6
  
 Alterations, Improvements
 Alterations Non-Structural Alterations




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Telecommunications Telecommunications Provider
 
 Change of Name or Common Areas
   
 Entry by Landlord
 
 SECTION 8  TRANSFER OF LEASEHOLD RIGHTS
 
 Transfers by Tenant
 Section 8 Transfer
 Review Fee




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##### Table of Contents



option (iii) option (i) option
(i) th
  Transfer Section 8.3
 
 Affiliate Transfers Section 8.3 Affiliate Transfer control
 
 Transfer Requirements




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Transfers by Landlord
 
 Sublease of Offer Space Section 2.4
 
 SECTION 9  INSURANCE; CASUALTY; ALLOCATION OF LIABILITY
 
 Property Insurance
  Section 9.1
 
 Liability and Other Insurance




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Section 9.2


Section 9.2





Casualty Damage










Section 9.1













INDEMNITY BY TENANT






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TENANT-RELATED CLAIMS SECTION 7.7 SECTION 9.4
 
 INDEMNITY BY LANDLORD LANDLORD-RELATED CLAIMS SECTION 9.5 SECTION 12.4
 
 Waiver of Claims and Subrogation Rights Section 9.6 Defaulting Party
 
 Damages from Certain Causes Section 9.6




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Section 9.7





SECTION 10  CONDEMNATION





Condemnation





Condemnation Award





SECTION 11  TITLE ENCUMBRANCES





Subordination to Mortgage; Lender Rights









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Section 13.1





Landlords Lien; Security Interest





Mechanics Liens





SECTION 12  DEFAULT; DISPUTES; REMEDIES





Default by Tenant Event of Default















Landlords Remedies







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Section
11.2




Section 12.2(e) Fair Market Rental Value Prime Rate


Section 12.2(c) Section 12.2(d)


Section 12.2(c)









Default by Landlord




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Limitation on Landlords Liability
 
 Attorneys Fees Section 12.5
 
 SECTION 13  MISCELLANEOUS
 
 Notices
 
 Estoppel Agreements
 
 No Implied Waiver
 
 Independent Obligations
 
 Severability
 
 Recording
 
 Governing Law
 
 Force Majeure




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Force Majeure Event Section 13.8
 
 Time of Performance
 
 Commissions
 
 Merger of Estates
 
 Survival of Indemnities and Covenants
 
 Headings
 
 Entire Agreement Section
13.14
 Exhibit A
    
    
    
    Property DescriptionExhibit B
    
    
    
    Site PlanExhibit C
    
    
    
    Rules and RegulationsExhibit D
    
    
    
    Tenant Improvements AgreementExhibit E
    
    
    
    Acceptance of Premises MemorandumExhibit F
    
    
    
    Moving AllowanceExhibit G
    
    
    
    Guaranty
 
 Amendment
 
 Joint and Several Liability
 
 Multiple Counterparts
 
 Effect of Delivery of this Lease
 
 Property Code




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[Signature page follows.]




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LANDLORD:FMBP INDUSTRIAL I LP,
a Delaware limited partnershipBy:
    FMBP Industrial I GP LLC, a Delaware limited liability
company, its General PartnerBy:Name:Title:TENANT:
FUNIMATION PRODUCTIONS, LTD,
a Texas limited partnershipBy:
    Navarre CP, LLC, a Minnesota
limited liability company, its General PartnerBy:Name:Title: