Document:

exv10w1xdy

 

Exhibit 10.1(d)

[FORM OF]

Non-Competition Agreement

     THIS NON-COMPETITION AGREEMENT made as of this ___day of ___, 2005 (the
“Effective Date”), by and among Navarre CP, LLC, a Minnesota limited liability company (“Navarre
CP”), Navarre CS, LLC, a Minnesota limited liability company (“Navarre CS”), Navarre CLP, LLC, a
Minnesota limited liability company (“Navarre CLP”), and ___(“Seller”).
Navarre CP, Navarre CS and Navarre CLP shall be collectively referred to herein as the “Buyers”.
Capitalized terms used in this Agreement and not otherwise defined shall have the meaning provided
for such term in the Purchase Agreement (as hereinafter defined).

     WHEREAS, Buyers entered into that certain Partnership Interest Purchase Agreement (the
“Purchase Agreement”), dated as of January ___, 2005, whereby Buyers will acquire one hundred
percent (100%) of the general partnership interests and limited partnership interests of FUNimation
Productions, Ltd., a Texas limited partnership (“Productions Company”), and The FUNimation Store,
Ltd., a Texas limited partnership (“Store Company”);

     WHEREAS, Seller is the owner of ___% of the general partnership interests of FUNimation
General Partnership, a Texas general partnership (“GP Seller”),

     WHEREAS, GP Seller is the owner of 99% of the limited partnership interests of Productions
Company;

     WHEREAS, Seller is the owner of ___% of the limited partnership interests of Store
Company;

     WHEREAS, Seller will derive substantial economic benefit from the consummation of the
transactions contemplated by the Purchase Agreement;

     WHEREAS, as a condition of the Purchase Agreement, Buyers have required that Seller execute
and deliver this Agreement in favor of Buyers; and

     WHEREAS, Seller desires to provide this Agreement as an inducement to Buyers to carry out and
consummate the transactions contemplated by the Purchase Agreement.

     NOW, THEREFORE, in consideration of and as a condition to the closing of the transactions
contemplated by the Purchase Agreement, and for other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the parties agree as follows:

 

 

1. Non-Competition Agreement.

(a) Covenant Not to Compete. Subject to Paragraph (e) below, Seller agrees that he
shall not, without the prior express written consent of Buyers, for a period of three (3)
years from the Effective Date (the “Non-Competition Period”), anywhere within the World,
directly or indirectly, engage in any “Competitive Business” (as defined below) in any
manner or capacity (e.g., as owner, operator, principal, agent, investor, partner,
consultant or associate), or participate in the ownership, management, operation, or control
of, or be connected in any capacity with, any Competitive Business, lend his credit or money
for the purpose of establishing or operating any Competitive Business, or give advice either
directly or indirectly to any third person, firm, or corporation engaged or engaging in any
said Competitive Business. For these purposes, a “Competitive Business” shall mean a
business involved in the acquisition, licensing or distribution of music, home video, video
games or software; but shall not include sales of music, home video, video games or software
directly to consumers via the Internet.

(b) Use of Name. From and after the Effective Date, Seller agrees that he shall not
use the name “FUNimation” or any name or logo similar to the foregoing in connection with
any Competitive Business.

(c) Non-Solicitation. During the Non-Competition Period, Seller agrees that he
shall not, directly or indirectly, (i) solicit any existing customer of Productions Company
and/or Store Company, or the business of any person, firm, corporation or entity which is or
has been a customer or account of Productions Company and/or Store Company during the
Non-Competition Period or within twenty-four (24) months prior to commencement of such
Non-Competition Period, for the purpose of selling to such customer or account any product
or service which is substantially similar to or competitive with any product or service
which is or has been sold by Productions Company and/or Store Company, or (ii) induce or
attempt to induce any employee of or consultant to Productions Company and/or Store Company
to do any of the foregoing or to discontinue such person’s association with Productions
Company and/or Store Company, as the case may be; provided, that the forgoing shall not
prohibit (x) a general solicitation for employment not specifically directed to such
employees or consultants, (y) the hiring or retention of any such employee or consultant who
contacts Seller on his or her own imitative, or (z) Seller from providing references or
recommendations on behalf of such employees or consultants.

(d) Detrimental Conduct. Seller agrees that during the Non-Competition Period he
will not, directly or indirectly, engage in any form of conduct, take any action, make any
statement or representation, oral or written, or by any combination thereof or by any other
means act in a manner, which materially injures or is materially detrimental to the
reputation or goodwill of Productions Company and/or Store Company, or any of their
affiliates or subsidiaries, or any officer, director or employee of either Productions
Company or Store Company, or any of their affiliates.

(e) Permitted Investments. Nothing in this Section 1 shall prevent Seller from
making or holding an investment in any entity or business, provided said investments do not
exceed five percent (5%) of the issued and outstanding securities of any one such issuer.

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2. Consideration. Seller acknowledges that (i) Seller will receive substantial
consideration as a result of consummation of the transactions contemplated by the Purchase
Agreement, (ii) Buyers have required Seller to execute and deliver this Agreement as an express
condition to Buyers closing on such transactions and (iii) as a result, Seller will receive
substantial valuable consideration for Seller’s agreements and commitments under this Agreement.

3. Injunctive Relief. It is agreed that it would be difficult to measure the damages to
Buyers resulting from any breach of this Agreement by Seller, that injury to Buyers from any breach
would be incalculable and irremediable and that damages therefor would be an inadequate remedy.
Accordingly, Seller agrees that Buyers shall be entitled to obtain the equitable remedy of specific
performance of this Agreement in any court having jurisdiction and that Buyers also shall be
entitled to injunctive relief as well as damages.

4. Reasonable Restriction; Limits of Enforcement. Seller agrees that the restrictions set
forth in Sections 1 and 2 of this Agreement and the duration, geographic area and scope thereof
are, under all circumstances, reasonable and necessary to safeguard the interests of Buyers and the
Company, including without limitation, the ability of Buyers to realize the benefit of their
bargain pursuant to the Purchase Agreement.

5. Blue Pencil Doctrine. If the duration or geographical extent of, or business activities
covered by, the covenants in Sections 1 and 2 are in excess of what is valid and enforceable under
applicable law, then such provisions shall be construed to cover only that duration, geographical
extent or activities that are valid and enforceable. Seller acknowledges the uncertainty of the
law in this respect and expressly stipulates that this Agreement be given the construction which
renders its provisions valid and enforceable to the maximum extent (not exceeding its express
terms) possible under applicable law.

6. Costs and Expenses. If any legal proceeding is brought for the enforcement of this
Agreement, or because of any alleged dispute, breach, default or misrepresentation in connection
with any of the provisions of this Agreement, the successful or prevailing party or parties will be
entitled to recover reasonable attorneys’ fees and other costs incurred in that action or
proceeding, including appeals, in addition to any other relief to which it or they may be entitled.

7. Assignment. This Agreement shall inure to the benefit of and be enforceable by Buyers
and any permitted successor or assignee of Buyers. The rights and obligations of Buyers under this
Agreement may be transferred only to its successors and assigns by merger, sale of assets, sale of
stock, exchange or similar acquisition transaction. This Agreement may not be assigned by Seller.

8. Complete Agreement. This Agreement contains the complete agreement between the parties
with respect to the subject matter hereof and supersedes any prior understandings, agreements or
representations by or between the parties, written or oral, which may have related to the subject
matter hereof in any way. No person, whether or not an officer, agent, employee or representative
of any party, has made or has any authority to make for or on behalf of that party any agreement,
representation, warranty, statement, promise, arrangement or understanding not expressly set forth
in this Agreement (“Parole Agreements”). The parties acknowledge that in

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entering into this Agreement, they have not relied and will not in any way rely upon any Parole
Agreements.

9. Capacity. Seller represents that he is of legal age, under no legal disability, has
full legal authority to enter into this Agreement, and has had a reasonable and adequate
opportunity to consult with independent counsel regarding the effect of this Agreement, the
sufficiency of the consideration described herein, and the reasonableness of the restrictions set
forth herein.

10. No Waiver. No term or condition of this Agreement shall be deemed to have been waived,
nor shall there by any estoppel to enforce any provisions of this Agreement, except by a statement
in writing signed by the party against whom enforcement of the waiver or estoppel is sought. Any
written waiver shall not be deemed a continuing waiver unless specifically stated, shall operate
only as to the specific term or condition waived and shall not constitute a waiver of such term or
condition for the future or as to any act other than that specifically waived

11. Governing Law and Jurisdiction. This Agreement shall be deemed to be a contract made
under the laws of the State of Minnesota and for all purposes it, plus any related or supplemental
documents and notices, shall be construed in accordance with and governed by the laws of such
state. With respect to any dispute, controversy or claim arising out of or relating to this
Agreement or the relationship between the parties, Seller agrees and consents to jurisdiction of
and exclusive venue in the United States District Court, District of Minnesota, Fourth Division.

12. Modification. This Agreement may not be altered, modified or amended except by an
instrument in writing signed by Buyers and Seller.

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

[ signature page follows ]

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     IN WITNESS WHEREOF, the parties hereto have duly executed this Non-Competition Agreement the
day and year first above written.

	 	 	 
	

	 	BUYERS:
	 
	 	 
	

	 	Navarre CP, LLC
	 
	 	 
	

	 	By:                                                                                
	

	 	     Its:                                                                           
	 
	 	 
	

	 	Navarre CS, LLC
	 
	 	 
	

	 	By:                                                                                
	

	 	     Its:                                                                           
	 
	 	 
	

	 	Navarre CLP, LLC
	 
	 	 
	

	 	By:                                                                                
	

	 	     Its:                                                                           
	 
	 	 
	

	 	SELLER:exv10w1xey

 

Exhibit 10.1(e)

REGISTRATION RIGHTS AGREEMENT

This Registration Rights Agreement (this “Agreement”) is made as of _________ __, 2005, by
and among Navarre Corporation, a Minnesota corporation (the “Company”), FUNimation
Productions Management, LLC, a limited liability company organized and existing under the laws of
Texas, FUNimation General Partnership, a Texas general partnership organized and existing under the
laws of Texas, FUNimation Management Company, LLC, a limited liability company organized and
existing under the laws of Texas, and the individual signatories hereto. Each of the companies and
individuals that are a party to this agreement, other than the Company, will be referred to
collectively herein as the “Sellers.”

RECITALS

     A. The Company and the Sellers entered into a Partnership Interest Purchase Agreement dated as
of January ___, 2005 (the “Purchase Agreement”), pursuant to which, among other things, on
the date of this Agreement, wholly-owned subsidiaries of the Company will simultaneous with the
execution of this agreement acquire all of the Partnership Interests as defined in the Purchase
Agreement of FUNimation Productions, Ltd. and The FUNimation Store, Ltd. (the “Partnership
Interests”);

     B. The execution of this Agreement at Closing is required by the Purchase Agreement; and

     C. Capitalized terms used in this Agreement but not otherwise defined shall have the meanings
given in the Purchase Agreement.

     D. A portion of the consideration paid for the Partnership Interests consists of [1,495,216]
shares of the Company’s Common Stock, no par value (the “Common Stock”). This Registration Rights
Agreement will provide the Sellers with certain rights with respect to the registration of the
Common Stock.

AGREEMENT

     In consideration of the mutual promises and covenants in this Agreement, the Company and the
Sellers agree as follows:

1. Definitions. For purposes of this Agreement:

     “Act” means the Securities Act of 1933, as amended.

     “Effective Date” means the date of Closing of the transactions contemplated by the
Purchase Agreement.

     “Holder” means any person owning or having the right to acquire Registrable Securities
or any assignee thereof to whom registration rights are assigned in accordance with Section 9
hereof; provided that “Holders” shall include any individual Seller that is assigned Registrable
Securities from a partnership or limited liability company Seller whether or not such assignment
satisfies the provisions of Section 9 hereof. All Holders may be collectively referred to as the
“Holders.”

     “Offering,” as used in Section 10 hereof, means any firm commitment underwritten
public offering of the Company’s common stock under the Act with proceeds to the Company (prior to
underwriter discounts and commissions) equal to or greater than $10,000,000.

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     “1934 Act” means the Securities Exchange Act of 1934, as amended.

     “register,” “registered” and “registration” refer to a registration
effected by preparing and filing a registration statement or similar document in compliance with
the Act, and the declaration or ordering of effectiveness of such registration statement or
document.

     “Registrable Securities” means the shares of Common Stock received by the Sellers at
Closing of the transactions contemplated by the Purchase Agreement; provided,
however, that the foregoing definition shall exclude in all cases any Registrable
Securities sold by a Holder in a transaction in which such Holder’s rights under this Agreement are
not assigned. In addition, Common Stock or other securities shall only be treated as Registrable
Securities if and so long as they have not been (A) sold to or through a broker or dealer or
underwriter in a public distribution or a public securities transaction, including sales made
pursuant to Rule 144 promulgated under the Act or (B) sold in a transaction exempt from the
registration and prospectus delivery requirements of the Act under Section 4(1) thereof so that all
transfer restrictions, and restrictive legends with respect thereto, if any, are removed upon the
consummation of such sale. The number of Registrable Securities outstanding shall be the sum of
the shares of Common Stock outstanding that are Registrable Securities.

     “SEC” shall mean the Securities and Exchange Commission.

2. Request for Registration

     (a) Subject to the condition of this Section 2, if the Company shall receive at any time
during the two (2) years following the Effective Date written request (the “Initial
Request”) from the Holders that the Company file a registration statement under the Act
covering the registration of at least fifty percent (50%) of Registrable Securities and provided
that a registration statement on Form S-3 (or equivalent) is then available to the Company, then
the Company shall, within twenty (20) days of the receipt of the Initial Request, give written
notice of the Initial Request to all Holders, and subject to the limitations of this Section 2, use
commercially reasonable best efforts to file a registration statement under the Act covering the
Registrable Securities that the Holders request to be registered in a written request received by
the Company within thirty (30) days of the mailing of the Company’s notice pursuant to this Section
2(a), and to use its best efforts to cause such registration statement to become effective. Once
notice of the Initial Request is mailed to all Holders and the registration pursuant to that
Initial Request is effective, then no Holder shall have any right to demand any further
registration. This Section 2 provides for only one (1) demand for registration, and any Holder
wishing to participate in the registration must participate in the registration which occurs
pursuant to the Initial Request, if at all.

     (b) If the Holders intend to distribute the Registrable Securities covered by their request by
means of an underwriting, they shall so advise the Company as a part of the Initial Request and the
Company shall include such information in the written notice to all Holders referred to in Section
2(a). In such event the right of any Holder to include its Registrable Securities in such
registration shall be conditioned upon such Holder’s participation in such underwriting and the
inclusion of such Holder’s Registrable Securities in the underwriting (unless otherwise mutually
agreed by a majority in interest of the Holders that made the Initial Request and such Holder) to
the extent provided herein. All Holders proposing to distribute their securities through such
underwriting shall enter into an underwriting agreement in customary form with the underwriter or
underwriters selected for such underwriting by a majority in interest of the Holders.
Notwithstanding any other provision of this Section 2, if the underwriter advises

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the Company in writing that marketing factors require a limitation of the number of securities
underwritten (including Registrable Securities), then the Company shall so advise all Holders of
Registrable Securities that would otherwise be underwritten pursuant hereto, and the number of
shares that may be included in the underwriting shall be allocated to the Holders of such
Registrable Securities on a pro rata basis based on the number of Registrable Securities held by
all such Holders that have elected to participate in such underwriting; provided,
however, that the number of shares of Registrable Securities to be included in such
underwriting shall not be reduced unless all other securities of the Company are first entirely
excluded from the underwriting. Any Registrable Securities excluded or withdrawn from such
underwriting shall be withdrawn from the registration.

     (c) The Company shall not be required to effect a registration pursuant to this Section 2:

               (1) during the period starting with the date sixty (60) days prior to the Company’s good faith
estimate of the date of the filing of, and ending on a date ninety (90) days following the
effective date of, a Company-initiated registration subject to Section 3 below, provided that the
Company is actively employing in good faith all reasonable efforts to cause such registration
statement to become effective; or

               (2) if the Company shall furnish to the Holders requesting a registration statement pursuant
to this Section 2, a certificate signed by the Company’s Chief Executive Officer or Chairman of the
Board stating that in the good faith judgment of the Board of Directors of the Company, it would be
seriously detrimental to the Company and its shareholders for such registration statement to be
effected at such time, in which event the Company shall have the right to defer such filing for a
period of not more than ninety (90) days after receipt of the request of the Initiating Holder,
provided that such right to delay a request shall be exercised by the Company not more than once in
any twelve-month period.

3. Piggyback Registration

     (a) If the Company proposes to register (including for this purpose a registration initiated
by the Company for shareholders other than the Holders) any of its common stock or other securities
under the Act in connection with the public offering for cash or such securities (other than a
registration relating solely to the sale of securities to participants in a Company stock plan, a
registration relating to a corporate reorganization or other transaction under Rule 145 of the Act,
the Company shall, at such time, promptly give each Holder written notice of such registration.
Upon the written request of each Holder given within twenty (20) days after mailing of such notice
by the Company in accordance with Section 12(e), the Company shall, subject to the provisions of
Section 3(c), use reasonable efforts to cause to be registered under the Act all of the Registrable
Securities that each such Holder has requested to be registered. Notwithstanding the provisions in
Section 2(a), if the Company proposes the registration of its common stock pursuant to this Section
3, then the Holders shall retain the right to demand registration pursuant to Section 2 above.

     (b) Right to Terminate Registration. The Company shall have the right to terminate or
withdraw any registration initiated by it under this Section 3 prior to the effectiveness of such
registration whether or not any Holder has elected to include securities in such registration. The
expenses of such withdrawn registration shall be borne by the Company in accordance with Section 6
hereof.

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     (c) Underwriting Requirements. In connection with any offering involving an
underwriting of shares of the Company’s common stock or other securities, the Company shall not be
required under this Section 3 to include any of the Holders’ securities in such underwriting unless
they accept the terms of the underwriting as reasonably agreed upon between the Company and the
underwriters selected by it (or by other persons entitled to select the underwriters) and enter
into an underwriting agreement in customary form with an underwriter or underwriters selected by
the Company, and then only in such quantity as the underwriters determine in their sole discretion
will not jeopardize the success of the offering by the Company. If the total amount of securities,
including Registrable Securities, requested by shareholders to be included in such offering exceeds
the amount of securities sold other than by the Company that the underwriters determine in their
sole discretion is compatible with the success of the offering, then the Company shall be required
to include in the offering only that number of such securities, including Registrable Securities,
that the underwriters determine in their sole discretion will not jeopardize the success of the
offering (the securities so included to be apportioned pro rata among the selling Holders according
to the total amount of securities entitled to be included therein owned by each selling Holder or
in such other proportions as shall mutually be agreed to by such selling Holders), but in no event
shall (i) the amount of securities of the selling Holders included in the offering be reduced below
thirty-three (33%) percent of the total amount of securities included in such offering; or (ii) the
number of shares of Registrable Securities to be included in such underwriting be reduced unless
all other securities (other than those of the Company) are first entirely excluded from the
underwriting.

4. Obligations of the Company. Whenever required under this Agreement to effect the
registration of any Registrable Securities, the Company shall, as expeditiously as reasonably
possible:

     (a) prepare and file with the SEC a registration statement with respect to such Registrable
Securities and use its best efforts to cause such registration statement to become effective, and,
upon the request of the Holders of a majority of the Registrable Securities registered thereunder,
keep such registration statement effective for a period of up to one (1) year or, if earlier, until
the distribution contemplated in the Registration Statement has been completed;

     (b) prepare and file with the SEC such amendments and supplements to such registration
statement and the prospectus used in connection with such registration statement as may be
necessary to comply with the provisions of the Act with respect to the disposition of all
securities covered by such registration statement for the period set forth in paragraph (a) above;

     (c) furnish to the Holders such numbers of copies of a prospectus, including a preliminary
prospectus, in conformity with the requirements of the Act, and such other documents as they may
reasonably request in order to facilitate the disposition of Registrable Securities owned by them;

     (d) use its best efforts to register and qualify the securities covered by such registration
statement under such other securities or Blue Sky laws of such jurisdictions as shall be reasonably
requested by the Holders, provided that the Company shall not be required in connection therewith
or as a condition thereto to qualify to do business or to file a general consent to service of
process in any such states or jurisdictions;

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     (e) in the event of any underwritten public offering, enter into and perform its obligations
under an underwriting agreement, in usual and customary form, with the managing underwriter of such
offering;

     (f) notify each Holder of Registrable Securities covered by such registration statement at any
time when a prospectus relating thereto is required to be delivered under the Act or when the
Company obtains knowledge of the happening of any event as a result of which the prospectus
included in such registration statement, as then in effect, includes an untrue statement of a
material fact or omits to state a material fact required to be stated therein or necessary to make
the statements therein not misleading in the light of the circumstances then existing;

     (g) cause all such Registrable Securities registered pursuant to this Agreement to be listed
on each securities exchange or automated quotation system on which similar securities issued by the
Company are then listed;

     (h) provide a transfer agent and registrar for all Registrable Securities registered pursuant
to this Agreement and a CUSIP number for all such Registrable Securities, in each case not later
than the effective date of such registration; and

     (i) use its best efforts to furnish, at the request of any Holder requesting registration of
Registrable Securities pursuant to this Agreement, on the date that such Registrable Securities are
delivered to the underwriters for sale in connection with a registration pursuant to this
Agreement, if such securities are being sold through underwriters, or, if such securities are not
being sold through underwriters, on the date that the registration statement with respect to such
securities becomes effective, (1) an opinion, dated such date, of the counsel representing the
Company for the purposes of such registration, in form and substance as is customarily given to
underwriters in an underwritten public offering, addressed to the underwriters, if any, and to the
Holders requesting registration of Registrable Securities and (2) a letter dated such date, from
the independent certified public accountants of the Company, in form and substance as is
customarily given by independent certified public accountants to underwriters in an underwritten
public offering, addressed to the underwriters, if any, and to the Holders requesting registration
of Registrable Securities.

5. Information from Holders. It shall be a condition precedent to the obligations of the
Company to take any action pursuant to this Agreement with respect to the Registrable Securities of
any selling Holder that such Holder shall furnish to the Company such information regarding itself,
the Registrable Securities held by it, and the intended method of disposition of such securities as
shall be reasonably required to effect the registration of such Holder’s Registrable Securities.

6. Expenses of Registration. All expenses other than underwriting discounts and
commissions incurred in connection with registrations, filings or qualifications pursuant to
Sections 2 and 3, including (without limitation) all registration, filing and qualification fees,
printer’s and accounting fees, fees and disbursements of counsel for the Company and the reasonable
fees and disbursements of one counsel for the selling Holders shall be borne by the Company.
Notwithstanding the foregoing, the Company shall not be required to pay for any expenses of any
registration proceeding begun pursuant to Section 2 if the registration request is subsequently
withdrawn at the request of the Holders of a majority of the Registrable Securities to be
registered (in which case all participating Holders shall bear such expenses pro rata based upon
the number of Registrable Securities that were to be requested in the withdrawn

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registration; provided, however, that if prior to the time of such withdrawal, the
Holders have learned of a material adverse change in the condition, business, or prospects of the
Company from that known to the Holders at the time of their request and have withdrawn the request
with reasonable promptness following, and as a result of disclosure by the Company of such material
adverse change, then the Holders shall not be required to pay any of such expenses and shall retain
their rights pursuant to Section 2).

7. Delay of Registration. No Holder shall have any right to obtain or seek an injunction
restraining or otherwise delaying any such registration as the result of any controversy that might
arise with respect to the interpretation or implementation of this Agreement.

8. Indemnification. In the event any Registrable Securities are included in a registration
statement under this Agreement:

     (a) To the extent permitted by law, the Company will indemnify and hold harmless each Holder,
the partners or officers, directors, members and shareholders of each Holder, legal counsel and
accountants for each Holder, any underwriter (as defined in the Act) for such Holder and each
person, if any, who controls such Holder or underwriter within the meaning of the Act or the 1934
Act, against any losses, claims, damages or liabilities (joint or several) to which they may become
subject under the Act, the 1934 Act or any state securities laws, insofar as such losses, claims,
damages, or liabilities (or actions in respect thereof) arise out of or are based upon any of the
following statements, omissions or violations (collectively a “Violation”) by the Company:
(i) any untrue statement or alleged untrue statement of a material fact contained in such
registration statement, including any preliminary or final prospectus contained therein or any
amendments or supplements thereto, (ii) the 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 or alleged violation by the Company of the Act, the 1934 Act,
any state securities laws or any rule or regulation promulgated under the Act, the 1934 Act or any
state securities laws; and the Company will pay as incurred to each such Holder, underwriter or
controlling person for any legal or other expenses reasonably incurred by any of them in connection
with investigating or defending any such loss, claim, damage, liability or action; provided,
however, that the indemnity agreement contained in this Section 8(a) shall not apply to amounts
paid in settlement of any such loss, claim, damage, liability or action if such settlement is
effected without the consent of the Company (which consent shall not be unreasonably withheld or
delayed), nor shall the Company be liable to any Holder, underwriter or controlling person for any
such loss, claim, damage, liability or action to the extent that it arises out of or is based upon
a Violation that occurs in reliance upon and in conformity with written information regarding such
Holder, underwriter or controlling person, furnished by such Holder, underwriter or controlling
person expressly for use in connection with such registration.

     (b) To the extent permitted by law, each selling Holder will severally but not jointly
indemnify and hold harmless the Company, each of its directors, officers and other agents,
including specifically each of its officers who has signed the registration statement, each person,
if any, who controls the Company within the meaning of the Act, any underwriter, any other Holder
selling securities in such registration statement and any controlling person of any such
underwriter or other Holder, against any losses, claims, damages or liabilities to which any of the
foregoing persons may become subject, under the Act, the 1934 Act or any state securities laws,
insofar as such losses, claims, damages or liabilities (or actions in respect thereto) arise out of
or are based upon any Violation, in each case to the extent (and only to the extent) that such

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Violation occurs in reliance upon and in conformity with written information regarding such Holder,
furnished by such Holder expressly for use in connection with such registration; and each such
Holder will reimburse any person intended to be indemnified pursuant to this Section 8(b), for any
legal or other expenses reasonably incurred by such person in connection with investigating or
defending any such loss, claim, damage, liability or action if it is judicially determined that
there was such a Violation; provided, however, that the indemnity agreement contained in this
Section 8(b) shall not apply to amounts paid in settlement of any such loss, claim, damage,
liability or action if such settlement is effected without the consent of the Holder (which consent
shall not be unreasonably withheld or delayed), and provided further, that in no event shall any
indemnity under this Section 8(b) exceed the net proceeds from the offering received by an
indemnifying Holder.

     (c) Promptly after receipt by an indemnified party under this Section 8 of notice of the
commencement of any action (including any governmental action), such indemnified party will, if a
claim in respect thereof is to be made against any indemnifying party under this Section 8, deliver
to the indemnifying party a written notice of the commencement thereof and the indemnifying party
shall have the right to participate in, and, to the extent the indemnifying party so desires,
jointly with any other indemnifying party similarly noticed, to assume the defense thereof with
counsel mutually satisfactory to the parties; provided, however, that an indemnified party
(together with all other indemnified parties that may be reasonably and adequately represented
without conflict by one counsel) shall have the right to retain one separate counsel, with the fees
and expenses to be paid by the indemnifying party, if representation of such indemnified party by
the counsel retained by the indemnifying party would be inappropriate due to actual or potential
differing interests between such indemnified party and any other party represented by such counsel
in such proceeding. The failure to deliver written notice to the indemnifying party shall not
relieve such indemnifying party of any liability to the indemnified party under this Section 8,
except to the extent that the indemnifying party has been materially prejudiced by such failure.
The indemnifying party shall not consent to entry of any judgment or enter into any settlement or
otherwise seek to terminate any proceeding in which any indemnified party is or could be a party
and as to which indemnification could be sought by such indemnified party under this Section 8,
unless such judgment, settlement or other termination includes as an unconditional term thereof the
giving by the claimant or plaintiff to the indemnified party of a release, in form and substance
satisfactory to the indemnified party, from all liability in respect of such claim or litigation
for which such indemnified party would be entitled to indemnification pursuant to this Section 8.

     (d) If the indemnification provided for in this Section 8 is held by a court of competent
jurisdiction to be unavailable to an indemnified party with respect to any loss, liability, claim,
damage or expense referred to herein, then the indemnifying party, in lieu of indemnifying such
indemnified party hereunder, shall contribute to the amount paid or payable by such indemnified
party as a result of such loss, liability, claim, damage or expense in such proportion as is
appropriate to reflect the relative fault of the indemnifying party on the one hand and of the
indemnified party on the other in connection with the statements or omissions that resulted in such
loss, liability, claim, damage or expense, as well as any other relevant equitable considerations;
provided, however, that a selling Holder will not be obligated to contribute more than the net
proceeds received by such selling Holder from such offering. The relative fault of the
indemnifying party and of the indemnified party shall be determined by reference to, among other
things, whether the untrue or alleged untrue statement of a material fact or the omission to

-7-

 

state a material fact relates to information supplied by the indemnifying party or by the
indemnified party and the parties’ relative intent, knowledge, access to information, and
opportunity to correct or prevent such statement or omission.

     (e) The obligations of the Company and Holders under this Section 8 shall survive the
completion of any offering of Registrable Securities in a registration statement under this
Agreement, and otherwise.

9. Assignment of Registration Rights. The rights to cause the Company to register
Registrable Securities pursuant to this Agreement may be assigned (but only with all related
obligations) by a Holder to any transferee or assignee of such securities, provided: (a) the
Company is, within a reasonable time after such transfer, furnished with written notice of the name
and address of such transferee or assignee and the securities with respect to which such
registration rights are being assigned; (b) such transferee or assignee agrees in writing to be
bound by and subject to the terms and conditions of this Agreement, including without limitation
the provisions of Section 10 below; and (c) such assignment shall be effective only if immediately
following such transfer the further disposition of such securities by the transferee or assignee is
restricted under the Act.

10. Market Stand-Off Agreement. Each Holder hereby agrees that it will not, without the
prior written consent of the managing underwriter, during the period commencing on the date of the
final prospectus relating to any Company Offering and ending on the date specified by the Company
and the managing underwriter (such period not to exceed ninety (90) days in the event of an
Offering) (i) lend, offer, pledge, sell, contract to sell, sell any option or contract to purchase,
purchase any option or contract to sell, grant any option, right or warrant to purchase, or
otherwise transfer or dispose of, directly or indirectly, any equity interests in the Company or
any securities convertible into or exercisable or exchangeable for such equity interests (whether
such interests or any such securities are then owned by the Holder or are thereafter acquired), or
(ii) enter into any swap or other arrangement that transfers to another, in whole or in part, any
of the economic consequences of ownership of equity interests in the Company, whether any such
transaction described in clause (i) or (ii) above is to be settled by delivery of common stock or
other securities, in cash or otherwise. Each Holder further agrees to execute and enter into an
agreement (such agreement to be in the form as may be requested by the managing underwriters) with
the managing underwriters of such offering to reflect the foregoing provided that all officers,
directors and five percent holders of the Company’s voting securities enter into similar
agreements. The underwriters in connection with any Company Offering are intended third party
beneficiaries of this Section 10 and shall have the right, power and authority to enforce the
provisions hereof as though they were a party hereto. In order to enforce the foregoing covenant,
the Company may impose stop-transfer instructions with respect to the Registrable Securities of
each Holder (and the securities of every other person subject to the foregoing restriction) until
the end of such period.

11. Termination of Registration Rights. No Holder shall be entitled to exercise any right
provided for in this Agreement after two (2) years following the Effective Date or, as to any
Holder, such earlier time at which all Registrable Securities held by such Holder (and any
affiliate of the Holder with whom such Holder must aggregate its sales under Rule 144) can be sold
in any three (3) month period without registration in compliance with Rule 144 of the Act;
provided, however, that upon exercise by the Company of any postponement right under Section 2(c),
the period during which any Holder may exercise any right provided for in this

-8-

 

Agreement shall be extended for a period equal to the period of such postponement by the Company.

12. Miscellaneous.

     (a) Successors and Assigns. Except as otherwise provided herein, the terms and
conditions of this Agreement shall inure to the benefit of and be binding upon the respective
successors and assigns of the parties (including transferees of any shares of Registrable
Securities). The Company may not assign its rights or delegate its duties under this Agreement to
any other person or entity without the prior written consent of the Holders provided, however, that
no consent shall be required in connection with sale, merger or other change of control transaction
of the Company. No Holder may assign its rights or delegate its duties under this Agreement
without the prior written consent of the Company, except that the Company’s prior written consent
shall not be required for (i) the Sellers and any Holder to assign their rights under this
Agreement to any transferee of Registrable Securities or any person or entity, controlling,
controlled by or under common control with such party without such prior written consent, or (ii)
any Seller that is a partnership or limited liability company to assign its rights under this
Agreement to any transferee of Registrable Securities who is a partner or a member of such Seller.
Nothing in this Agreement, express or implied, is intended to confer upon any party other than the
parties hereto or their respective successors and assigns any rights, remedies, obligations, or
liabilities under or by reason of this Agreement, except as expressly provided in this Agreement.

     (b) Governing Law. This Agreement shall be governed by and construed under the laws
of the State of Minnesota as applied to agreements among Minnesota residents entered into and to be
performed entirely within Minnesota.

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

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

     (e) Notices. All notices, requests, demands, claims, and other communications
hereunder shall be in writing. Any notice, request, demand, claim or other communication hereunder
shall be delivered personally to the recipient, delivered by United States Post Office mail or
nationally recognized overnight courier, telecopied to the intended recipient at the facsimile
number set forth on the signature page hereto, or sent to the recipient by reputable express
courier service and addressed to the intended recipient as set forth on the signature page hereto
or to such other address as the party to whom notice is to be given may have furnished to the other
party in writing in accordance herewith. Any such communication shall be deemed to have been duly
given and received when delivered.

     (f) Expenses. If any action at law or in equity is necessary to enforce or interpret
the terms of this Agreement, the prevailing party shall be entitled to reasonable attorneys’ fees,
costs and necessary disbursements in addition to any other relief to which such party may be
entitled.

     (g) Entire Agreement; Amendments and Waivers. This Agreement (including the exhibits
hereto) constitutes the full and entire understanding and agreement among the parties with regard
to the subjects hereof and thereof. Any term of this Agreement may be amended and

-9-

 

the observance of any term of this Agreement may be waived (either generally or in a particular
instance and either retroactively or prospectively), only with the written consent of all parties
to this Agreement affected thereby. Any amendment or waiver effected in accordance with this
paragraph shall be binding upon each Holder of any Registrable Securities, each future Holder of
any Registrable Securities and the Company.

     (h) Severability. If one or more provisions of this Agreement are held to be
unenforceable under applicable law, such provision shall be excluded from this Agreement and the
balance of the Agreement shall be interpreted as if such provision were so excluded and shall be
enforceable in accordance with its terms.

[SIGNATURE PAGES FOLLOW]

-10-

 

     The parties have executed this Registration Rights Agreement as of the date first above
written.

	 	 	 
	Addresses for Notice:	 	 
	Navarre Corporation

	 	COMPANY:
	7400 49th Avenue North
	 	Navarre Corporation
	New Hope, Minnesota 55428

	 	 
	Attention: Eric Paulson, President

	 	By:                                                                       
             
	Ryan Urness, General Counsel

	 	
Name:                                                                               
	Fax No.: (763) 504-1107
	 	Title:                                                               
                  
	 
	 	 
	with a copy (which shall not constitute
notice) to:
	 	 
	 
	 	 
	Philip T. Colton
	 	 
	Winthrop & Weinstine P.A.
	 	 
	225 South Sixth Street, Suite 3600
	 	 
	Minneapolis, Minnesota 55402
	 	 
	 
	 	 
	

	 	SELLERS:
	 
	 	 
	FUNimation Productions Management, LLC

	 	FUNimation Productions Management, LLC
	6851 N.E. Loop 820; Suite 247
	 	 
	North Richland Hills, TX 76181

	 	By:                                                                                 
	Attention: Daniel Cocanougher

	Name:
	Fax: (817) 788-0628

	Title:
	 
	 	 
	FUNimation General Partnership

	 	FUNimation General Partnership
	6851 N.E. Loop 820; Suite 247
	 	 
	North Richland Hills, TX 76181

	 	By:                                                                                 
	Attention: Daniel Cocanougher

	Name:
	Fax: (817) 788-0628

	Title:
	 
	 	 
	FUNimation Management Company, LLC

	 	FUNimation Management Company, LLC
	6851 N.E. Loop 820; Suite 247
	 	 
	North Richland Hills, TX 76181

	 	By:                                                             
	Attention: Daniel Cocanougher

	Name:
	Fax: (817) 788-0628

	Title:

-11-

 

	 	 	 
	Addresses for Notice:	 	 
	Daniel Cocanougher, as Seller Representative

	 	

	North Richland Hills, TX 76181

	 	GEN FUKUNAGA
	Attention: Daniel Cocanougher
	 	 
	Fax: (817) 788-0628
	 	 
	 
	 	 
	Daniel Cocanougher, as Seller Representative

	 	

	North Richland Hills, TX 76181

	 	DANIEL COCANOUGHER
	Attention: Daniel Cocanougher
	 	 
	Fax: (817) 788-0628
	 	 
	 
	 	 
	Daniel Cocanougher, as Seller Representative

	 	

	North Richland Hills, TX 76181

	 	ROBERT COCANOUGHER
	Attention: Daniel Cocanougher
	 	 
	Fax: (817) 788-0628
	 	 
	 
	 	 
	Daniel Cocanougher, as Seller Representative

	 	

	North Richland Hills, TX 76181

	 	ALLEN COCANOUGHER
	Attention: Daniel Cocanougher
	 	 
	Fax: (817) 788-0628
	 	 
	 
	 	 
	Daniel Cocanougher, as Seller Representative

	 	

	North Richland Hills, TX 76181

	 	JENNIFER B. COCANOUGHER
	Attention: Daniel Cocanougher
	 	 
	Fax: (817) 788-0628
	 	 
	 
	 	 
	Daniel Cocanougher, as Seller Representative

	 	

	North Richland Hills, TX 76181

	 	DANIEL COCANOUGHER, Custodian for
	Attention: Daniel Cocanougher

	 	ROBERT A. COCANOUGHER, JR., Minor
	Fax: (817) 788-0628
	 	 
	 
	 	 
	Daniel Cocanougher, as Seller Representative

	 	

	North Richland Hills, TX 76181

	 	ROBERT COCANOUGHER SR., Custodian for 
	Attention: Daniel Cocanougher

	 	DANIELLE M. COCANOUGHER, Minor
	Fax: (817) 788-0628
	 	 

-12-

 

	 	 	 
	Addresses for Notice:	 	 
	Daniel Cocanougher, as Seller Representative

	 	

	North Richland Hills, TX 76181

	 	ROBERT COCANOUGHER SR., Custodian for ELLEN J.
	Attention: Daniel Cocanougher

	 	COCANOUGHER, Minor
	Fax: (817) 788-0628
	 	 
	 
	 	 
	Daniel Cocanougher, as Seller Representative

	 	

	North Richland Hills, TX 76181

	 	CINDY FUKUNAGA
	Attention: Daniel Cocanougher
	 	 
	Fax: (817) 788-0628
	 	 
	 
	 	 
	Daniel Cocanougher, as Seller Representative

	 	

	North Richland Hills, TX 76181

	 	ROBERT BRENNAN
	Attention: Daniel Cocanougher
	 	 
	Fax: (817) 788-0628
	 	 
	 
	 	 
	Daniel Cocanougher, as Seller Representative

	 	

	North Richland Hills, TX 76181

	 	BARRY WATSON
	Attention: Daniel Cocanougher
	 	 
	Fax: (817) 788-0628
	 	 
	 
	 	 
	Daniel Cocanougher, as Seller Representative

	 	 
	North Richland Hills, TX 76181

	 	Daniel Cocanougher, as the
	Attention: Daniel Cocanougher

	 	Seller Representative
	Fax: (817) 788-0628
	 	 
	 
	 	 
	

	 	

	

	 	DANIEL COCANOUGHER

-13-

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