CONSTRUCTION LOAN AGREEMENT
THIS AGREEMENT, made and entered into this 23rd day of October, 2003, by and between NAVARRE
CORPORATION, a Minnesota corporation ("Borrower"), whose address is 7400 49th Avenue North, New
Hope, MN 55428 and THE BUSINESS BANK ("Lender"), whose address is 11100 Wayzata Boulevard,
Suite 150, Minnetonka, MN 55305.
W I T N E S S E T H, THAT:
WHEREAS, Borrower is contemplating building on the Premises described in Schedule "A" attached hereto the
following Improvements: An approximately 115,286 square foot office/warehouse facility to be located on
approximately 5.69 acres of land;
WHEREAS, Borrower has made application to Lender for a Construction Loan to defray the costs of
constructing such Improvements;
WHEREAS, Lender has issued to Borrower its Commitment to make a construction loan in the amount
hereinafter specified, subject to compliance with the terms and conditions of this Construction Loan Agreement;
NOW, THEREFORE, in consideration of the making of the Loan and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:
For purposes of this Agreement, the following terms shall have the following meanings:
1. "Application" shall mean Borrower's application to the Lender for the Loan the terms and conditions of which
are incorporated herein by reference.
2. "Architect's Contract" shall mean Borrower's contract with the Project Architect.
3. "Bonds" - INTENTIONALLY DELETED.
4. "Commitment" shall mean Lender's commitment to Borrower agreeing to make this Construction Loan.
5. "Completion Date" shall mean midnight, June 1, 2004.
6. "Contractor(s)" shall mean those firms directly engaged by Borrower to construct the Improvements, whether
one or more.
7. "Contract Documents" shall mean the Project Architect's Contract, Plans and
Specifications and the Construction Contracts.
8. "Construction Costs" shall mean land costs, all