Document:

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                                                                    EXHIBIT 10.2

                                  VIALTA, INC.

                              AMENDED AND RESTATED

                        2000 DIRECTORS STOCK OPTION PLAN

     1.  Purpose.  This Amended and Restated 2000 Directors Stock Option Plan
(the "Plan") is established to provide equity incentives for nonemployee members
of the Board of Directors of Vialta, Inc. (the "Company"), who are described in
Section 6.1 below, by granting such persons options to purchase shares of stock
of the Company.

     1.  Adoption and Stockholder Approval.  This Plan was adopted by the Board
of Directors of the Company (the "Board") effective as of February 17, 2000 and
was amended and restated effective as of April 30, 2003 (the "Amendment
Effective Date"). This Plan shall be approved by the stockholders of the
Company, consistent with applicable laws, within twelve (12) months after the
Amendment Effective Date. Options ("Options") granted under this Plan before the
Amendment Effective Date but after February 17, 2000 shall remain in full force
and effect in accordance with the terms and provisions of the Plan as in effect
prior to the Amendment Effective Date. In the event that stockholder approval is
not obtained within the time period provided herein, this Plan and all Options
granted hereunder shall be subject to the terms of the Plan as in effect prior
to the Amendment Effective Date. No Option that is issued as a result of any
increase in the number of shares authorized to be issued under this Plan shall
be exercised prior to the time such increase has been approved by the
stockholders of the Company and all such Options granted pursuant to such
increase shall similarly terminate if such stockholder approval is not obtained.

     2.  Types of Options and Shares.  Options granted under this Plan shall be
nonqualified stock options ("NQSOs"). The shares of stock that may be purchased
upon exercise of Options granted under this Plan (the "Shares") are shares of
the Common Stock of the Company.

     3.  Number of Shares.  The maximum number of Shares that may be issued
pursuant to Options granted under this Plan (the "Maximum Number") is 600,000
Shares, subject to adjustment as provided in this Plan. If any Option is
terminated for any reason without being exercised in whole or in part, the
Shares thereby released from such Option shall be available for purchase under
other Options subsequently granted under this Plan. At all times during the term
of this Plan, the Company shall reserve and keep available such number of Shares
as shall be required to satisfy the requirements of outstanding Options granted
under this Plan; provided, however, that if the aggregate number of Shares
subject to outstanding Options granted under this Plan plus the aggregate number
of Shares previously issued by the Company pursuant to the exercise of Options
granted under this Plan equals or exceeds the Maximum Number of Shares, then
notwithstanding anything herein to the contrary, no further Options may be
granted under this Plan until the Maximum Number is increased or the aggregate
number of Shares subject to outstanding Options granted under this Plan plus the
aggregate number of Shares previously issued by the Company pursuant to the
exercise of Options granted under this Plan is less than the Maximum Number.

     4.  Administration.  This Plan shall be administered by the Board or by a
committee of not less than two members of the Board appointed to administer this
Plan (the "Committee"). As used in this Plan, references to the Committee shall
mean either such Committee or the Board if no Committee has been established.
The interpretation by the Committee of any of the provisions of this Plan or any
Option granted under this Plan shall be final and binding upon the Company and
all persons having an interest in any Option or any Shares purchased pursuant to
an Option.

     5.  Eligibility and Award Formula.

          5.1  Eligibility.  Options may be granted only to directors of the
     Company who are not employees of the Company or any Parent, Subsidiary or
     Affiliate of the Company, as those terms are defined in Section 17 below.

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          5.2  Initial Grant.  Each Optionee who on or after January 1, 2003
     becomes a member of the Board or a non-employee member of the Board will
     automatically be granted an Option for 20,000 Shares (the "Initial Grant").
     Initial Grants shall be made on the date such Optionee first becomes a
     member of the Board.

          5.3  Succeeding Grants.  On each anniversary of the Initial Grant, or,
     in the case of an Optionee who did not receive an Initial Grant, on each
     anniversary of the most recent prior grant date of an option to such
     Optionee, if the Optionee is still a member of the Board and has served
     continuously as a member of the Board since such date, the Optionee will
     automatically be granted an Option for 20,000 Shares (a "Succeeding
     Grant"); provided, however, that in no event shall any Optionee be granted
     Options to purchase more than 100,000 Shares under this Plan.

     6.  Terms and Conditions of Options.  Subject to the following and to
Section 6 above:

          6.1  Form of Option Grant.  Each Option granted under this Plan shall
     be evidenced by a written Stock Option Grant ("Grant") in such form (which
     need not be the same for each Optionee) as the Committee shall from time to
     time approve, which Grant shall comply with and be subject to the terms and
     conditions of this Plan.

          6.2  Vesting.  Options granted under this Plan shall be exercisable as
     they vest. The date an Optionee receives an Initial Grant or a Succeeding
     Grant is referred to in this Plan as the "Start Date" for such Option.

             (a) Initial Grants.  Each Option that is an Initial Grant will vest
        as to twenty-five percent (25%) of the Shares upon each of the first
        four (4) successive anniversaries of the Start Date for such Initial
        Grant, so long as the Optionee continuously remains a director of the
        Company.

             (b) Succeeding Grants.  Each Succeeding Grant will vest as to
        twenty-five percent (25%) of the Shares upon each of the first four (4)
        successive anniversaries of the Start Date for such Succeeding Grant, so
        long as the Optionee continuously remains a director of the Company.

          6.3  Exercise Price.  The exercise price of an Option shall be the
     Fair Market Value (as defined in Section 17) of the Shares, at the time
     that the Option is granted.

          6.4  Termination of Option.  Except as provided below in this Section,
     each Option shall expire ten (10) years after its Start Date (the
     "Expiration Date"). The Option shall cease to vest if the Optionee ceases
     to be a member of the Board. The date on which the Optionee ceases to be a
     member of the Board shall be referred to as the "Termination Date." An
     Option may be exercised after the Termination Date only as set forth below:

             (a) Termination Generally.  If the Optionee ceases to be a member
        of the Board for any reason except death or disability, then each Option
        then held by such Optionee, to the extent (and only to the extent) that
        it would have been exercisable by the Optionee on the Termination Date,
        may be exercised by the Optionee within seven (7) months after the
        Termination Date, but in no event later than the Expiration Date.

             (b) Death or Disability.  If the Optionee ceases to be a member of
        the Board because of the death of the Optionee or the disability of the
        Optionee within the meaning of Section 22(c)(3) of the Internal Revenue
        Code of 1986, as amended (the "Code"), then each Option then held by
        such Optionee, to the extent (and only to the extent) that it would have
        been exercisable by the Optionee on the Termination Date, may be
        exercised by the Optionee (or the Optionee's legal representative)
        within twelve (12) months after the Termination Date, but in no event
        later than the Expiration Date.

     7.  Exercise of Options.

          7.1  Notice.  Options may be exercised only by delivery to the Company
     of an exercise agreement in a form approved by the Committee stating the
     number of Shares being purchased, the restrictions imposed on the Shares
     and such representations and agreements regarding the Optionee's investment

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     intent and access to information as may be required by the Company to
     comply with applicable securities laws, together with payment in full of
     the exercise price for the number of Shares being purchased.

          7.2  Payment.  Payment for Shares purchased upon exercise of an Option
     may be made (a) in cash or by check; (b) by surrender of shares of Common
     Stock of the Company that have been owned by the Optionee for more than six
     (6) months (and which have been paid for within the meaning of Rule 144
     promulgated under the Securities Act of 1933, as amended (the "Securities
     Act") and, if such shares were purchased from the Company by use of a
     promissory note, such note has been fully paid with respect to such shares)
     or were obtained by the Optionee in the open public market, having a Fair
     Market Value equal to the exercise price of the Option; (c) by waiver of
     compensation due or accrued to the Optionee for services rendered; (d)
     provided that a public market for the Company's stock exists, through a
     "same day sale" commitment from the Optionee and a broker-dealer that is a
     member of the National Association of Securities Dealers (an "NASD Dealer")
     whereby the Optionee irrevocably elects to exercise the Option and to sell
     a portion of the Shares so purchased to pay for the exercise price and
     whereby the NASD Dealer irrevocably commits upon receipt of such Shares to
     forward the exercise price directly to the Company; (e) provided that a
     public market for the Company's stock exists, through a "same day sale"
     commitment from the Optionee and a NASD Dealer whereby the Optionee
     irrevocably elects to exercise the Option and to pledge the Shares so
     purchased to the NASD Dealer in a margin account as security for a loan
     from the NASD Dealer in the amount of the exercise price, and whereby the
     NASD Dealer irrevocably commits upon receipt of such Shares to forward the
     exercise price directly to the Company; or (f) by any combination of the
     foregoing.

          7.3  Withholding Taxes.  Prior to issuance of the Shares upon exercise
     of an Option, the Optionee shall pay or make adequate provision for any
     federal or state withholding obligations of the Company, if applicable.

          7.4  Limitations on Exercise.  Notwithstanding the exercise periods
     set forth in the Grant, exercise of an Option shall always be subject to
     the following limitations:

             (a) An Option shall not be exercisable until such time as this Plan
        (or, in the case of Options granted pursuant to an amendment increasing
        the number of shares that may be issued pursuant to this Plan, such
        amendment) has been approved by the stockholders of the Company in
        accordance with Section 15 hereof.

             (b) An Option shall not be exercisable unless such exercise is in
        compliance with the Securities Act and all applicable state securities
        laws, as they are in effect on the date of exercise.

             (c) The Committee may specify a reasonable minimum number of Shares
        that may be purchased upon any exercise of an Option, provided that such
        minimum number will not prevent the Optionee from exercising the full
        number of Shares as to which the Option is then exercisable.

     8.  Nontransferability of Options.  During the lifetime of the Optionee, an
Option shall be exercisable only by the Optionee or by the Optionee's guardian
or legal representative, unless otherwise permitted by the Committee. No Option
may be sold, pledged, assigned, hypothecated, transferred or disposed of in any
manner other than by will or by the laws of descent and distribution.

     9.  Privileges of Stock Ownership.  No Optionee shall have any of the
rights of a stockholder with respect to any Shares subject to an Option until
the Option has been validly exercised. No adjustment shall be made for dividends
or distributions or other rights for which the record date is prior to the date
of exercise, except as provided in this Plan. The Company shall provide to each
Optionee a copy of the annual financial statements of the Company, at such time
after the close of each fiscal year of the Company as they are released by the
Company to its stockholders.

     10.  Adjustment of Option Shares.  In the event that the number of
outstanding shares of Common Stock of the Company is changed by a stock
dividend, stock split, reverse stock split, combination, reclassification or
similar change in the capital structure of the Company without consideration,
the number of Shares available under this Plan, the size of the Initial Grant
and Succeeding Grant described in Section 6,

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and the number of Shares subject to outstanding Options and the exercise price
per share of such outstanding Options shall be proportionately adjusted, subject
to any required action by the Board or stockholders of the Company and
compliance with applicable securities laws; provided, however, that no
fractional shares shall be issued upon exercise of any Option and any resulting
fractions of a Share shall be rounded up to the nearest whole Share.

     11.  No Obligation to Continue as Director.  Nothing in this Plan or any
Option granted under this Plan shall confer on any Optionee any right to
continue as a director of the Company.

     12.  Compliance With Laws.  The grant of Options and the issuance of Shares
upon exercise of any Option shall be subject to and conditioned upon compliance
with all applicable requirements of law, including without limitation compliance
with the Securities Act, compliance with all other applicable state securities
laws and compliance with the requirements of any stock exchange or national
market system on which the Shares may be listed. The Company shall be under no
obligation to register the Shares with the SEC or to effect compliance with the
registration or qualification requirement of any state securities laws, stock
exchange or national market system.

     13.  Acceleration of Options.  In the event of (a) a dissolution or
liquidation of the Company, (b) a merger or consolidation in which the Company
is not the surviving corporation (other than a merger or consolidation with a
wholly-owned subsidiary, a reincorporation of the Company in a different
jurisdiction, or other transaction in which there is no substantial change in
the stockholders of the Company or their relative stock holdings and the Options
granted under this Plan are assumed or replaced by the successor corporation,
which assumption will be binding on all Optionees), (c) a merger in which the
Company is the surviving corporation but after which the stockholders of the
Company (other than any stockholder which mergers (or which owns or controls
another corporation which merge) with the Company in such merger) cease to own
their shares or other equity interests in the Company, (d) the sale of
substantially all of the assets of the Company, or (e) any other transaction
which qualifies as a "corporate transaction" under Section 424 of the Code
wherein the stockholders of the Company give up all of their equity interests in
the Company (except for the acquisition, sale or transfer of all or
substantially all of the outstanding shares of the Company from or by the
stockholders of the Company), the vesting of all options granted pursuant to
this Plan will accelerate and the options will become exercisable in full as of
the date 10 days prior to the consummation of such event and if such options are
not exercised prior to the consummation of the corporate transaction, they shall
terminate in accordance with the provisions of this Plan, unless the acquiring
or successor corporation (or parent corporation thereof) assumes the Company's
rights and obligations under the outstanding Options or substitutes for
outstanding Options substantially equivalent options for such corporation's
stock.

     14.  Amendment or Termination of Plan.  The Committee may at any time
terminate or amend this Plan (but may not terminate or amend the terms of any
outstanding option without the consent of the Optionee); provided, however, that
the Committee shall not, without the approval of the stockholders of the
Company, increase the total number of Shares available under this Plan (except
by operation of the provisions of Sections 4 and 11 above) or adopt any other
amendment that would require stockholder approval under any applicable law,
regulation or rule. In any case, no amendment of this Plan may adversely affect
any then outstanding Options or any unexercised portions thereof without the
written consent of the Optionee.

     15.  Term of Plan.  Options may be granted pursuant to this Plan from time
to time within a period of ten (10) years from the date this Plan is adopted by
the Board.

     16.  Certain Definitions.  As used in this Plan, the following terms shall
have the following meanings:

          16.1  "Affiliate" means any corporation that directly, or indirectly
     through one or more intermediaries, controls or is controlled by, or is
     under common control with, another corporation, where "control" (including
     the terms "controlled by" and "under common control with") means the
     possession, direct or indirect, of the power to cause the direction of the
     management and policies of the corporation, whether through the ownership
     of voting securities, by contract or otherwise.

          16.2  "Fair Market Value" shall mean as of any date, the value of a
     share of the Company's Common Stock determined by the Board in its sole
     discretion, exercised in good faith; provided, however,

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     that where there is a public market for the Common Stock, the Fair Market
     Value per share shall be the average of the closing bid and asked prices of
     the Common Stock on the last trading day prior to the date of determination
     as reported in The Wall Street Journal (or, if not so reported, as
     otherwise reported by the Nasdaq Stock Market) or, in the event the Common
     Stock is listed on a stock exchange or on the Nasdaq National Market, the
     Fair Market Value per share shall be the closing price on the exchange or
     on the Nasdaq National Market on the last trading date prior to the date of
     determination as reported in The Wall Street Journal; provided, however,
     that notwithstanding the foregoing, with respect to the Initial Grants that
     are granted on the Expiration Date, the "Fair Market Value" shall mean the
     price per share at which shares of the Company's Common Stock are initially
     offered for sale to the public by the Company's underwriters in the initial
     public offering of the Company's Common Stock pursuant to a registration
     statement filed with the SEC under the Securities Act.

          16.3  "Parent" means any corporation (other than the Company) in an
     unbroken chain of corporations ending with the Company if, at the time of
     the granting of the Option, each of such corporations other than the
     Company owns stock possessing 50% or more of the total combined voting
     power of all classes of stock in one of the other corporations in such
     chain.

          16.4  "Subsidiary" means any corporation (other than the Company) in
     an unbroken chain of corporations beginning with the Company if, at the
     time of granting of the Option, each of the corporations other than the
     last corporation in the unbroken chain owns stock possessing fifty percent
     (50%) or more of the total combined voting power of all classes of stock in
     one of the other corporations in such chain.

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                                                                     EXHIBIT 4.5

NEITHER THESE SECURITIES NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE
EXERCISABLE HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR
THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM
REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES
ACT"), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN
EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN
AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE
SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO
SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE
COMPANY. THESE SECURITIES AND THE SECURITIES ISSUABLE UPON EXERCISE OF THESE
SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT SECURED
BY SUCH SECURITIES.

                                     WARRANT

                   TO PURCHASE 131,577 SHARES OF COMMON STOCK
                                       OF
                               NAVARRE CORPORATION

         THIS CERTIFIES THAT, for good and valuable consideration, Craig-Hallum
Capital Group LLC (the "Agent"), or its registered assigns, is entitled to
subscribe for and purchase from Navarre Corporation, a Minnesota corporation
(the "Company"), at any time after December 15, 2003 and up to and including
5:00 p.m. Minneapolis, Minnesota time on December 14, 2005 (the "Expiration
Date"), One Hundred Thirty-One Thousand Five Hundred Seventy-Seven (131,577)
fully paid and nonassessable shares of the Common Stock of the Company at the
price of $7.00 per share (the "Warrant Exercise Price"), subject to the
antidilution provisions of this Warrant. The shares which may be acquired upon
exercise of this Warrant are referred to herein as the "Warrant Shares." As used
herein, the term "Holder" means the Agent or any party who acquires all or a
part of this Warrant as a registered transferee of the Agent. As used herein,
the term "Common Stock" means and includes the Company's presently authorized
common stock, no par value per share, and shall also include any capital stock
of any class of the Company hereafter authorized which shall not be limited to a
fixed sum or percentage in respect of the rights of the Holders thereof to
participate in dividends or in the distribution of assets upon the voluntary or
involuntary liquidation, dissolution, or winding up of the Company.

         This Warrant is subject to the following provisions, terms and
conditions:

         1. Exercise: Transferability.

         (a) Subject to the provisions of Section 3 hereof, the rights
represented by this Warrant may be exercised by the Holder hereof, in whole or
in part (but not as to a fractional share of Common Stock), by written notice of
exercise (in the form attached hereto) delivered to the Company at the principal
office of the Company prior to the Expiration Date and

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accompanied or preceded by the surrender of this Warrant along with a check in
payment of the Warrant Exercise Price for such shares.

         (b) Subject to the provisions of Section 7 hereof, this Warrant is
immediately assignable. Each successive holder of this Warrant, or of any
portion of the rights represented thereby, shall be bound by the terms and
conditions set forth herein.

         2. Exchange and Replacement. Subject to Sections 1 and 7 hereof, this
Warrant is exchangeable upon the surrender hereof by the Holder to the Company
at its office for new Warrants of like tenor and date representing in the
aggregate the right to purchase the number of Warrant Shares purchasable
hereunder, each of such new Warrants to represent the right to purchase such
number of Warrant Shares (not to exceed the aggregate total number purchasable
hereunder) as shall be designated by the Holder at the time of such surrender.
Upon receipt by the Company of evidence reasonably satisfactory to it of the
loss, theft, destruction or mutilation of this Warrant, and, in case of loss,
theft or destruction, of indemnity or security reasonably satisfactory to it,
and upon surrender and cancellation of this Warrant, if mutilated, the Company
will make and deliver a new Warrant of like tenor, in lieu of this Warrant. This
Warrant shall be promptly canceled by the Company upon the surrender hereof in
connection with any exchange or replacement. The Company shall pay all expenses,
taxes (other than stock transfer taxes), and other charges payable in connection
with the preparation, execution and delivery of Warrants pursuant to this
Section 2.

         3. Issuance of the Warrant Shares.

         (a) The Company agrees that the shares of Common Stock purchased hereby
shall be and are deemed to be issued to the Holder as of the close of business
on the date on which this Warrant shall have been surrendered and the payment
made for such Warrant Shares as aforesaid. Subject to the provisions of the next
section, certificates for the Warrant Shares so purchased shall be delivered to
the Holder within a reasonable time, not exceeding fifteen (15) days after the
rights represented by this Warrant shall have been so exercised and, unless this
Warrant has expired, a new Warrant representing the right to purchase the number
of Warrant Shares, if any, with respect to which this Warrant shall not then
have been exercised shall also be delivered to the Holder within such time.

         (b) Notwithstanding the foregoing, however, the Company shall not be
required to deliver any certificate for Warrant Shares upon exercise of this
Warrant except in accordance with exemptions from the applicable securities
registration requirements or registrations under applicable securities laws.
Such Holder shall also provide the Company with written representations from the
Holder and the proposed transferee satisfactory to the Company regarding the
transfer or, at the election of the Company, an opinion of counsel reasonably
satisfactory to the Company to the effect that the proposed transfer of this
Warrant or disposition of shares may be effected without registration or
qualification (under any Federal or State law) of this Warrant or the Warrant
Shares. Upon receipt of such written notice and either such representations or
opinion by the Company, such Holder shall be entitled to transfer this Warrant,
or to exercise this Warrant in accordance with its terms and dispose of the
Warrant Shares, all in accordance with the terms of the notice delivered by such
Holder to the Company, provided that

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an appropriate legend, if any, respecting the aforesaid restrictions on transfer
and disposition may be endorsed on this Warrant or the certificates for the
Warrant Shares. Nothing herein, however, shall obligate the Company to effect
registration under federal or state securities laws, except as provided in
Section 9. If a registration is not in effect and if an exemption is not
available when the Holder seeks to exercise the Warrant, the Warrant exercise
period will be extended, if need be, to prevent the Warrant from expiring, until
such time as either registration becomes effective or an exemption is available,
and the Warrant shall then remain exercisable for a period of at least thirty
(30) calendar days from the date the Company delivers to the Holder written
notice of the availability of such registration or exemption. The Holder agrees
to execute such documents and make such representations, warranties and
agreements as may be required solely to comply with the exemption relied upon by
the Company, or the registration made, for the issuance of the Warrant Shares.

         4. Covenants of the Company. The Company covenants and agrees that all
Warrant Shares will, upon issuance, be duly authorized and issued, fully paid,
nonassessable and free from all taxes, liens and charges with respect to the
issue thereof except for all taxes, liens and charges imposed on or with respect
to the property of the Holder. The Company further covenants and agrees that
during the period within which the rights represented by this Warrant may be
exercised, the Company will at all times have authorized and reserved for the
purpose of issue or transfer upon exercise of the subscription rights evidenced
by this Warrant a sufficient number of shares of Common Stock to provide for the
exercise of the rights represented by this Warrant.

         5. Antidilution Adjustments. The provisions of this Warrant are subject
to adjustment as provided in this Section 5.

         (a) The Warrant Exercise Price shall be adjusted from time to time such
that in case the Company shall hereafter:

                  (i) pay any dividends on any class of stock of the Company
         payable in Common Stock or securities convertible into Common Stock;

                  (ii) subdivide its then outstanding shares of Common Stock
         into a greater number of shares; or

                  (iii) combine outstanding shares of Common Stock, by
         reclassification or otherwise;

then, in any such event, the Warrant Exercise Price in effect immediately prior
to such event shall (until adjusted again pursuant hereto) be adjusted
immediately after such event to a price (calculated to the nearest full cent)
determined by dividing (a) the number of shares of Common Stock outstanding
immediately prior to such event, multiplied by the then existing Warrant
Exercise Price, by (b) the total number of shares of Common Stock outstanding
immediately after such event (including in each case the maximum number of
shares of Common Stock issuable in respect of any securities convertible into
Common Stock), and the resulting quotient shall be the adjusted Warrant Exercise
Price per share. An adjustment made pursuant to this

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Subsection shall become effective immediately after the record date in the case
of a dividend or distribution and shall become effective immediately after the
effective date in the case of a subdivision, combination or reclassification.
If, as a result of an adjustment made pursuant to this Subsection, the Holder of
any Warrant thereafter surrendered for exercise shall become entitled to receive
shares of two or more classes of capital stock or shares of Common Stock and
other capital stock of the Company, the Board of Directors (whose determination
shall be conclusive) shall determine the allocation of the adjusted Warrant
Exercise Price between or among shares of such classes of capital stock or
shares of Common Stock and other capital stock. All calculations under this
Subsection shall be made to the nearest cent or to the nearest 1/100 of a share,
as the case may be. In the event that at any time as a result of an adjustment
made pursuant to this Subsection, the Holder of any Warrant thereafter
surrendered for exercise shall become entitled to receive any shares of the
Company other than shares of Common Stock, thereafter the Warrant Exercise Price
of such other shares so receivable upon exercise of any Warrant shall be subject
to adjustment from time to time in a manner and on terms as nearly equivalent as
practicable to the provisions with respect to Common Stock contained in this
Section 5.

         (b) Upon each adjustment of the Warrant Exercise Price pursuant to
Section 5(a) above, the Holder of each Warrant shall thereafter (until another
such adjustment) be entitled to purchase at the adjusted Warrant Exercise Price
the number of shares, calculated to the nearest full share, obtained by
multiplying the number of shares specified in such Warrant (as adjusted as a
result of all adjustments in the Warrant Exercise Price in effect prior to such
adjustment) by the Warrant Exercise Price in effect prior to such adjustment and
dividing the product so obtained by the adjusted Warrant Exercise Price.

         (c) In case of any consolidation or merger to which the Company is a
party, other than a merger or consolidation in which the Company is the
continuing corporation, or in case of any sale or conveyance to another
corporation of the property of the Company as an entirety or substantially as an
entirety, or in the case of any statutory exchange of securities with another
corporation (including any exchange effected in connection with a merger of a
third corporation into the Company), there shall be no adjustment under
Subsection (a) of this Section but the Holder of each Warrant then outstanding
shall have the right thereafter to convert such Warrant into the kind and amount
of shares of stock and other securities and property which such Holder would
have owned or have been entitled to receive immediately after such
consolidation, merger, statutory exchange, sale, or conveyance had such Warrant
been converted immediately prior to the effective date of such consolidation,
merger, statutory exchange, sale, or conveyance and, in any such case, if
necessary, appropriate adjustment shall be made in the application of the
provisions set forth in this Section with respect to the rights and interests
thereafter of any Holders of the Warrant, to the end that the provisions set
forth in this Section shall thereafter correspondingly be made applicable, as
nearly as may reasonably be, in relation to any shares of stock and other
securities and property thereafter deliverable on the exercise of the Warrant.
The provisions of this Subsection shall similarly apply to successive
consolidations, mergers, statutory exchanges, sales or conveyances.

         (d) Upon any adjustment of the Warrant Exercise Price, then and in each
such case, the Company shall within ten (10) days after the date when the
circumstances giving rise to the

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adjustment occurred give written notice thereof, by first-class mail, postage
prepaid, addressed to the Holder as shown on the books of the Company, which
notice shall state the Warrant Exercise Price resulting from such adjustment and
the increase or decrease, if any, in the number of shares of Common Stock
purchasable at such price upon the exercise of this Warrant, setting forth in
reasonable detail the method of calculation and the facts upon which such
calculation is based.

         6. No Voting Rights. This Warrant shall not entitle the Holder to any
voting rights or other rights as a shareholder of the Company for any purpose
whatsoever until and unless this Warrant is duly exercised.

         7. Notice of Transfer of Warrant or Resale of the Warrant Shares.

         (a) Subject to the sale, assignment, hypothecation or other transfer
restrictions set forth in Section 1 hereof, the Holder, by acceptance hereof,
agrees to give written notice to the Company before transferring this Warrant or
transferring any Warrant Shares of such Holder's intention to do so, describing
briefly the manner of any proposed transfer. Promptly upon receiving such
written notice, the Company shall present copies thereof to the Company's
counsel and to counsel to the original purchaser of this Warrant. If in the
opinion of each such counsel, the proposed transfer may be effected without
registration or qualification (under any federal or state securities laws), the
Company, as promptly as practicable, shall notify the Holder of such opinion,
whereupon the Holder shall be entitled to transfer this Warrant or to dispose of
Warrant Shares received upon the previous exercise of this Warrant, all in
accordance with the terms of the notice delivered by the Holder to the Company;
provided that an appropriate legend may be endorsed on this Warrant or the
certificates for such Warrant Shares respecting restrictions upon transfer
thereof necessary or advisable in the opinion of counsel to the Company and
satisfactory to the Company to prevent further transfers which would be in
violation of Section 5 of the Securities Act of 1933, as amended (the "1933
Act"), and applicable state securities laws; and provided further that the
Holder and prospective transferee or purchaser shall execute such documents and
make such representations, warranties, and agreements as may be required solely
to comply with the exemptions relied upon by the Company for the transfer or
disposition of the Warrant or Warrant Shares.

         (b) If in the opinion of either of the counsel referred to in this
Section 7, the proposed transfer or disposition of this Warrant or such Warrant
Shares described in the written notice given pursuant to this Section 7 may not
be effected without registration or qualification of this Warrant or such
Warrant Shares, the Company shall promptly give written notice thereof to the
Holder, and the Holder will limit its activities in respect to such as, in the
opinion of both such counsel, are permitted by law.

         8. Fractional Shares. Fractional shares shall not be issued upon the
exercise of this Warrant, but in any case where the Holder would, except for the
provisions of this Section, be entitled under the terms hereof to receive a
fractional share, the Company shall, upon the exercise of this Warrant for the
largest number of whole shares then called for, pay a sum in cash equal to the
same fraction of the market price per share of Common Stock on the day of
exercise.

                                       5
<PAGE>

         9. Registration Rights.

         (a) If at any time prior to the expiration of two (2) years from the
date hereof, the Company proposes to register under the 1933 Act (except for a
registration under a Form S-4 or Form S-8 Registration Statement or any
successor forms thereto) or qualify for a public distribution under Section 3(b)
of the 1933 Act, any of its equity securities or debt with equity features, it
will give written notice to all Holders of this Warrant, any Warrants issued
pursuant to Section 2 and/or Section 3(a) hereof, and any Warrant Shares of its
intention to do so and, on the written request of any such Holder given within
twenty (20) days after receipt of any such notice (which request shall specify
the Warrant Shares intended to be sold or disposed of by such Holder and
describe the nature of any proposed sale or other disposition thereof), the
Company will use its best efforts to cause all such Warrant Shares, the Holders
of which shall have requested the registration or qualification thereof, to be
included in such registration statement proposed to be filed by the Company;
provided, however, that nothing herein shall prevent the Company from, at any
time, abandoning or delaying any registration. If any registration pursuant to
this Section 9(a) is underwritten in whole or in part, the Company may require
that the Warrant Shares requested for inclusion pursuant to this Section 9(a) be
included in the underwriting on the same terms and conditions as the securities
otherwise being sold through the underwriters. If a greater number of Warrant
Shares is offered for participation in the proposed offering than in the
reasonable opinion of the managing underwriter of the proposed offering can be
accommodated without adversely affecting the proposed offering, then the amount
of Warrant Shares proposed to be offered by such Holders for registration, as
well as the number of securities of any other selling shareholders participating
in the registration, shall be proportionately reduced to a number deemed
satisfactory by the managing underwriter.

         (b) With respect to each inclusion of securities in a registration
statement pursuant to this Section 9, the Company shall bear the following fees,
costs and expenses: all registration, filing and NASD fees, printing expenses,
fees and disbursements of counsel and accountants for the Company, fees and
disbursements of counsel for the underwriter or underwriters of such securities
(if the offering is underwritten and the Company is required to bear such fees
and disbursements), all internal expenses, the premiums and other costs of
policies of insurance against liability arising out of the public offering, and
legal fees and disbursements and other expenses of complying with state
securities laws of any jurisdictions in which the securities to be offered are
to be registered or qualified. Fees and disbursements of special counsel and
accountants for the selling Holders, underwriting discounts and commissions and
transfer taxes for selling Holders and any other expenses relating to the sale
of securities by the selling Holders not expressly included above shall be borne
by the selling Holders.

         (c) The Company hereby indemnifies each of the Holders of this Warrant
and of any Warrant Shares, and the officers and directors, if any, who control
such Holders, within the meaning of Section 15 of the 1933 Act, against all
losses, claims, damages and liabilities caused by (1) any untrue statement or
alleged untrue statement of a material fact contained in any Registration
Statement or Prospectus prepared in connection with any registration statement
pursuant to this Section 9 (and as amended or supplemented if the Company shall
have furnished any amendments thereof or supplements thereto), any Preliminary
Prospectus or any state securities law filings; (2) any omission or alleged
omission to state therein a material fact

                                       6
<PAGE>

required to be stated therein or necessary to make the statements therein not
misleading except insofar as such losses, claims, damages or liabilities are
caused by any untrue statement or omission contained in information furnished in
writing to the Company by such Holder expressly for use therein; and each such
Holder by its acceptance hereof severally agrees that it will indemnify and hold
harmless the Company, each of its officers who signs such Registration
Statement, and each person, if any, who controls the Company, within the meaning
of Section 15 of the 1933 Act, with respect to losses, claims, damages or
liabilities which are caused by any untrue statement or alleged untrue statement
or omission or alleged omission contained in information furnished in writing to
the Company by such Holder expressly for use therein.

         (d) If the Warrant Shares are included in a registration statement
filed pursuant to the Registration Rights Agreement dated as of December 15,
2003 (the "Rights Agreement"), the registration rights and obligations of the
Company and the Holders will be the registration rights as set forth in the
Rights Agreement.

         10. Mandatory Exercise. If the average closing price of the Company's
Common Stock as quoted on the Nasdaq stock market (or the exchange on which the
Company's Common Stock is then traded) is equal to or greater than one hundred
and fifty percent (150%) of the Warrant Exercise Price then in effect for any
thirty (30) consecutive trading days (the "Event"), then the Company will have
the right to require all Holders to exercise their Warrants in full within ten
business days of receipt of a notice from the Company that the Event has been
achieved. Any such notice must be given by the Company within thirty (30) days
of the Event.

         11. Miscellaneous. The Company will not, by amendment of its Articles
of Incorporation or through reorganization, consolidation, merger, dissolution
or sale of assets, or by any other voluntary act or deed, avoid or seek to avoid
the observance or performance of any of the covenants, stipulations or
conditions to be observed or performed hereunder by the Company, but will, at
all times in good faith, assist, insofar as it is able, in the carrying out of
all provisions hereof and in the taking of all other action which may be
necessary in order to protect the rights of the Holder hereof against dilution.

         Upon written request of the Holder of this Warrant, the Company will
promptly provide such holder with a then current written list of the names and
addresses of all Holders of warrants originally issued under the terms of, and
concurrent with, this Warrant.

         The representations, warranties and agreements herein contained shall
survive the exercise of this Warrant. This Common Stock Purchase Warrant shall
be interpreted under the laws of the State of Minnesota.

         Neither this Warrant nor any term hereof may be changed, waived,
discharged or terminated orally but only by an instrument in writing signed by
the part against which enforcement of the change, waiver, discharge or
termination is sought.

                                       7
<PAGE>

         IN WITNESS WHEREOF, the Company has caused this Warrant to be duly
executed by its authorized officer as of the date first indicated above.

                                    "Company"

                                    NAVARRE CORPORATION

                                    By
                                       --------------------------------------
                                    Its:
                                        -------------------------------------

                                       8
<PAGE>

                              WARRANT EXERCISE FORM

                   To be signed only upon exercise of Warrant.

         The undersigned, the holder of the within Warrant, hereby irrevocably
elects to exercise the purchase right represented by such Warrant for, and to
purchase thereunder, __________________ of the shares of Common Stock of Navarre
Corporation to which such Warrant relates and herewith makes payment of
$___________ therefor in cash or by certified check, and requests that such
shares be issued and be delivered to, _________________________, the address for
which is set forth below the signature of the undersigned.

Dated:
       -------------------------

---------------------------------              --------------------------------
(Taxpayer's I.D. Number)                       (Signature)*

                                               --------------------------------
                                               (Address)

*The signature on the Warrant Exercise Form must correspond to the name as
written upon the face of the Warrant in every particular without alteration or
enlargement or any change whatsoever. When signing on behalf of a corporation,
partnership, trust or other entity, please indicate your position(s) and
title(s) with such entity.

                                       9
<PAGE>

                                 ASSIGNMENT FORM

To be signed only upon authorized transfer of Warrants.

         FOR VALUE RECEIVED, the undersigned hereby sells, assigns, and
transfers unto _______________________________ the right to purchase the
securities of Navarre Corporation to which the within Warrant relates and
appoints ______________________, attorney, to transfer said right on the books
of Navarre Corporation with full power of substitution in the premises.

Dated:
       -------------------------

---------------------------------              --------------------------------
(Taxpayer's I.D. Number)                       (Signature)*

                                               --------------------------------
                                               (Address)

*The signature on the Warrant Exercise Form must correspond to the name as
written upon the face of the Warrant in every particular without alteration or
enlargement or any change whatsoever. When signing on behalf of a corporation,
partnership, trust or other entity, please indicate your position(s) and
title(s) with such entity.

                                       10

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