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                                                                   Exhibit 10.16

                              EMPLOYMENT AGREEMENT


THIS AGREEMENT is made and entered into as of the 5th day of November, 2003 (the
"Commencement Date"), by and between BCI Eclipse Company, LLC, a Minnesota
limited liability company (the "Company") and Edward D. Goetz, a resident of the
State of California ("Executive").

                                   WITNESSETH:

WHEREAS, the Company is a subsidiary of Navarre Corporation, a Minnesota
corporation ("Navarre");

WHEREAS, pursuant to that certain Asset Purchase Agreement dated November 5th,
2003 (the "Asset Purchase Agreement"), the Company purchased substantially all
of the assets of BCI Eclipse, LLC, a New York limited liability company ("BCI");

 WHEREAS, Executive is a minority owner of BCI and was previously employed as
the Executive Vice President of BCI and therefore has a unique knowledge of the
business of BCI as acquired by the Company, and has special expertise in the
management and future planning of its affairs; and

WHEREAS, the Company believes that Executive's continued involvement in the
management and affairs of the business of the Company are essential to its
continued success.

NOW, THEREFORE, in consideration of the foregoing premises, the mutual covenants
and obligations of this Agreement and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto
agree as follows:

         1. EMPLOYMENT. Subject to all of the terms and conditions of this
Agreement, the Company hereby employs Executive, and Executive hereby accepts
employment with the Company, as its President.

         2. DUTIES. The services of Executive are exclusive to the Company.
Executive will devote substantially all of his business hours to, and make the
best use of his energy, knowledge and training in, performing his duties as
President of the Company within the general guidelines established by the Board
of Directors of the Company as the same may, from time to time, be modified by
the Company's Board of Directors. Executive will report to the Board of
Directors of the Company and have all the duties normally subscribed to the
President. Executive will perform his duties in a competent and professional
manner, consistent with that expected of a president of the Company.

         Executive shall also have the authority, upon consultation and
agreement with the Company's Board of Directors, to determine which distribution
company shall provide fulfillment services to the Company during the Initial
Term, provided that it is understood by the parties hereto that such services
shall be provided by Advantage Media Service, Inc. through May 31, 2004.


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         3. TERM. Subject only to earlier termination in accordance with Section
5 of this Agreement, Executive's term of employment shall commence on the
Commencement Date and continue for a period of three (3) years (the "Initial
Term"). Upon the expiration of the Initial Term, this Agreement shall be
automatically renewed for successive additional one (1)-year terms unless this
Agreement is terminated in writing by either party hereto at least ninety (90)
days prior to the expiration of the Initial Term or any subsequent renewal term.
The Initial Term and any subsequent renewal terms shall be referred to
collectively herein as the "Employment Period."

         4. COMPENSATION. As compensation for all of Executive's services under
this Agreement, the Company agrees to pay Executive during the Employment Period
and on retirement, and Executive agrees to accept the following:

                  (a) BASE SALARY. A base salary of $200,000 per annum (the
         "Base Salary"), payable in accordance with the Company's standard
         payroll practices. On each anniversary of Commencement Date, the Base
         Salary shall be reviewed by the Company's Board of Directors and may be
         adjusted upwards based upon Executive's level of performance.

                  (b) PERFORMANCE BONUS. As additional compensation for
         Executive, Executive shall be eligible to receive an annual bonus up to
         40% of Executive's Base Salary for each fiscal year (the "Bonus"),
         based upon criteria determined by the Board of Directors of the
         Company. Executive's Bonus shall be paid annually not later than 45
         days after the completion of the Company's fiscal year-end audit. The
         Bonus shall be pro-rated for the period commencing on the Commencement
         Date and ending on March 31, 2004.

                  (c) STOCK OPTIONS. The Company shall cause Navarre to grant to
         Executive an option to purchase 50,000 shares of Navarre common stock.
         The exercise price of the option shall be equal to the closing price of
         Navarre common stock on the business day prior to the Commencement
         Date. In addition, so long as this Agreement has not been terminated by
         the Company under Section 5(a) or by Executive, the Company shall cause
         Navarre to grant to Executive an additional option to purchase 25,000
         shares of Navarre common stock on each of the first and second
         anniversaries of the Commencement Date, for which the exercise price
         will be the closing price of Navarre common stock on the business day
         prior to the date of grant of the option. The specific terms of the
         first option are set forth in the Stock Option Agreement attached
         hereto as Exhibit A. Each additional option grant shall be on terms and
         conditions substantially similar to those contained in Exhibit A
         hereto.

                  (d) EXPENSES. The Company shall reimburse Executive for any
         and all ordinary, necessary and reasonable business expenses that
         Executive incurs in connection with the performance of his duties under
         this Agreement, including entertainment, telephone, travel and
         miscellaneous expenses, provided that Executive provides the Company
         with documentation for such expenses in a form sufficient to sustain
         the Company's deduction for such expenses under Section 162 of the
         Internal Revenue Code of 1986, as amended.


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                  (e) MEDICAL, DISABILITY, LIFE INSURANCE AND OTHER PLANS.
         Executive shall be entitled to participate in any life insurance,
         health insurance, dental insurance, disability insurance, or retirement
         plan or any other fringe benefit which the Company may from time to
         time make available to its executives as a group. Any additional fringe
         benefits to Executive shall be determined and approved by the Board of
         Directors of the Company in amounts that are commensurate with services
         rendered.

                  (f) VACATION. Executive shall be entitled to a paid vacation
         period of three (3) weeks each year, which may be taken at any time
         subject to the Company's business needs.

         5. TERMINATION. This Agreement may not be terminated prior to the end
of the Employment Period except as follows:

                  (a) BY THE COMPANY FOR COMPANY CAUSE. The Company may
         terminate this Agreement for Company Cause as such term is defined
         below. Except as to subparagraph (iii) below, the Company shall give
         Executive thirty (30) days' advance written notice of such termination,
         and which shall describe in detail the acts or omissions which the
         Company believes constitute Company Cause. The Company shall not be
         allowed to terminate this Agreement pursuant to this Section 5(a) if
         Executive is able to cure such breach within thirty (30) days following
         delivery of such notice. However, in no event shall a breach of the
         provisions of Sections 5(a)(iii) or 7 be subject to cure. Acts or
         omissions which constitute "Company Cause" shall mean the following:

                           i. Any material breach by Executive of his
                  obligations under Section 7 of this Agreement;

                           ii. Gross misconduct of Executive which is manifestly
                  injurious to Company, or habitual failure or inability of
                  Executive to perform his duties under this Agreement; and

                           iii. Any fraud, theft or embezzlement by Executive of
                  the Company's assets, or any other unlawful or criminal act
                  which is punishable as a felony.

                  (b) DEATH. Subject to the provisions of Section 6, this
         Agreement shall terminate upon Executive's death.

                  (c) DISABILITY. Subject to the provisions of Section 6, this
         Agreement shall terminate upon Executive's Disability. As used herein,
         the term "Disability" shall mean Executive becoming substantially
         incapable of performing his duties hereunder for a period of six (6)
         months or more.


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         6. PAYMENTS UPON TERMINATION.

                  (a) DEATH. Upon Executive's death during the Employment
         Period, the heirs or legal representatives of Executive shall be
         entitled to receive (i) Executive's Base Salary through the date of
         Executive's death, (ii) any payments owing to Executive pursuant to
         Section 4(b) hereof for the fiscal year prior to the year of
         termination (to the extent any such payments were unpaid on the date of
         termination), and all bonuses to which Executive would have been
         entitled for the fiscal year in which such death occurred, prorated to
         the date of death, (iii) a sum equivalent to any accrued but unpaid
         vacation for the year in which Executive died, and (iv) any unpaid
         expense reimbursement. .

                  (b) DISABILITY. In the event that this Agreement is terminated
         due to Executive's Disability, Executive shall be paid (i) his Base
         Salary following the date of such Disability until Executive begins
         receiving benefits under the Company's disability benefits plan, (ii)
         any payments owing to Executive pursuant to Section 4(b) hereof for the
         fiscal year prior to the year of termination (to the extent any such
         payments were unpaid on the date of termination), and all bonuses to
         which Executive would have been entitled for the fiscal year in which
         such Disability occurred, prorated to the date of Disability, (iii) his
         accrued but unpaid vacation pay for the year in which such Disability
         occurred, and (iv) any unpaid expense reimbursement.

                  (c) TERMINATION BY COMPANY FOR COMPANY CAUSE OR BY EXECUTIVE.
         If Executive is terminated pursuant to Section 5(a) hereof, or
         Executive terminates this Agreement, the Company shall pay to Executive
         (i) his Base Salary through the date written notice is properly mailed
         to Executive pursuant to Section 5(a) hereof, or the date that
         Executive resigns, as applicable, (ii) any payments owing to Executive
         pursuant to Section 4(b) hereof for the fiscal year prior to the year
         of termination (to the extent any such payments were unpaid on the date
         of termination); iii) his accrued but unpaid vacation pay for the year
         in which such termination occurred, and (iv) any unpaid expense
         reimbursement.

                  (d) TERMINATION WITHOUT COMPANY CAUSE. In addition to any
         other rights granted Executive hereunder, if the Company should
         terminate this Agreement other than in accordance with Section 5(a)
         hereof, the Company shall pay to Executive (i) his Base Salary through
         the end of the term of this Agreement, (ii) any payments owing to
         Executive pursuant to Section 4(b) hereof for the fiscal year prior to
         the year of termination (to the extent any such payments were unpaid on
         the date of termination) as well as for the current year, (iii) a sum
         equivalent to any accrued but unpaid vacation for the year in which he
         is terminated, and (iv) any unpaid expense reimbursement.


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         7. CONFIDENTIALITY; NON-COMPETE; NON-SOLICITATION; NON-DISPARAGEMENT.

                  (a) CONFIDENTIALITY. Executive acknowledges that his services
         will, throughout the Employment Period, bring Executive in close
         contact with many confidential affairs of the Company and its
         affiliates, including, but not limited to, information about costs,
         profits, financial data, markets, trade secrets, sales, products, key
         personnel, pricing policies, customer lists, development projects,
         operational methods, technical processes, plans for future development,
         business affairs and methods and other information not readily
         available to the public. Executive further acknowledges that the
         businesses of the Company and its affiliates are international in
         scope, that their products are marketed throughout the world, that the
         Company and its affiliates compete in nearly all of their business
         activities with other organizations which are or could be located in
         nearly any part of the world and that the nature of Executive's
         services, position and expertise are such that he is capable of
         competing with the Company and its affiliates from nearly any location
         in the world. In recognition of the foregoing Executive covenants and
         agrees:

                           i. that Executive will keep secret all material
                  confidential matters of the Company and its affiliates which
                  are not otherwise in the public domain and will not disclose
                  them to anyone outside of the Company or its affiliates,
                  either during or after the Employment Period, except with the
                  Company's written consent and except for such disclosure as is
                  necessary in the performance of Executive's duties during the
                  Employment Period; and

                           ii. that Executive will deliver promptly to the
                  Company on termination of his employment with the Company or
                  at any other time the Company may so request, at the Company's
                  expense, all confidential memoranda, notes, records, reports
                  and other documents (and all copies thereof) relating to the
                  Company's and its affiliates' business, which Executive
                  obtained while employed by, or otherwise serving or acting on
                  behalf of, the Company or which the Executive may then possess
                  or have under his control.

                  Notwithstanding the provisions of paragraph i. hereof, the
         Company acknowledges that Executive may have knowledge of certain
         matters which would be considered confidential information of the
         Company, but that were known by Executive prior to Executive's
         employment with the Company. The Company acknowledges that Executive
         shall have the right to use or disclose such previously-known
         information after termination of Executive's employment with the
         Company.

                  (b) NON-COMPETE; NON-SOLICITATION. Executive agrees that
         during his employment with the Company, and for a period of one (1)
         year thereafter, he will not alone, or in any capacity with another
         entity or person, (i) engage in any commercial activity that competes
         with the Company's business, as it is conducted at the time of
         Executive's termination of employment with the Company, within any
         state of the United States, (ii) in any way interfere or attempt to
         interfere with the Company's relationships with any of its current or
         potential suppliers or customers, or (iii) induce or attempt to induce
         any


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         representative or employee of the Company to do any of the foregoing or
         to terminate or alter his, her, or its relationship with the Company.
         Executive further acknowledges that all services of Executive shall be
         exclusive to the Company, and that Executive's performances and
         services hereunder are of a special, unique, unusual, extraordinary and
         intellectual character which gives them peculiar value, the loss of
         which cannot be reasonably or adequately compensated in an action at
         law for damages and that a breach by Executive of the terms hereof
         (including without limitation this Section 7) will cause the Company
         irreparable injury. Executive agrees that the Company is entitled to
         injunctive and other equitable relief to prevent a breach or threatened
         breach of this Agreement, which shall be in addition to any other
         rights or remedies to which the Company may be entitled. For purposes
         of this Section 7(b), the term "Company" shall include the Company, its
         successors, assigns and affiliates.

                  (c) NON-DISPARAGEMENT. Executive agrees that both during and
         after the Employment Period, he shall not disparage or defame the
         Company, it successors, assigns and affiliates, or any of their
         directors, senior officers and managers in any respect. The Company
         agrees that both during and after the Employment Period, neither it nor
         any of its directors, senior officers or managers shall disparage or
         defame Executive in any respect.

         8. MISCELLANEOUS.

                  (a) SUCCESSORS AND ASSIGNS. This Agreement is freely
         assignable by the Company and shall be binding on and inure to the
         benefit of the Company's successors and assigns. This Agreement may not
         be assigned by Executive.

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

                  (c) CONSTRUCTION. Wherever possible, each provision of this
         Agreement will be interpreted so that it is valid under the applicable
         law. If any provision of this Agreement is to any extent invalid under
         the applicable law, that provision will still be effective to the
         extent it remains valid. The remainder of this Agreement also will
         continue to be valid, and the entire Agreement will continue to be
         valid in other jurisdictions.

                  (d) WAIVERS. No failure or delay by either the Company or
         Executive in exercising any right or remedy under this Agreement will
         waive any provision of this Agreement, nor will any single or partial
         exercise by either the Company or Executive of any right or remedy
         under this Agreement preclude either of them from otherwise or further
         exercising these rights or remedies, or any other rights or remedies
         granted by any law or any related document.

                  (d) CAPTIONS. The headings in this Agreement are for
         convenience of reference only and do not affect the interpretation of
         this Agreement.


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                  (f) MODIFICATION/ENTIRE AGREEMENT. This Agreement may not be
         altered, modified or amended except by an instrument in writing signed
         by all of the parties hereto. 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 or in any other
         document executed by the parties concurrently herewith ("Parol
         Agreements"). This Agreement and all other documents executed by the
         parties concurrently herewith constitute the entire agreement between
         the parties and supersede all express or implied, prior or concurrent,
         Parol Agreements and prior written agreements with respect to the
         subject matter hereof. The parties acknowledge that in entering into
         this Agreement, they have not relied and will not in any way rely upon
         any Parol Agreements.

                  (g) GOVERNING LAW; VENUE. The laws of the State of Minnesota
         shall govern the validity, construction and performance of this
         Agreement, regardless of the laws that might otherwise govern under
         applicable principles of conflicts of law. Any legal proceeding related
         to this Agreement shall be brought in an appropriate Minnesota court,
         and each of the parties hereto hereby consents to the exclusive
         jurisdiction of the courts of the State of Minnesota for this purpose.

                  (h) NOTICES. All notices and other communications required or
         permitted under this Agreement shall be in writing and sent by
         registered first class mail, postage prepaid, and shall be deemed
         received five (5) days after mailing to the addresses stated below:

                  If to the Company:

                           BCI Eclipse Company, LLC
                           7400 - 49th Avenue North
                           New Hope, Minnesota  55428
                           Attention: CEO

                  With a copy to:

                           Navarre Corporation
                           7400 - 49th Avenue North
                           New Hope, Minnesota  55428
                           Attention:  Ryan Urness, Corporate Counsel

                  If to Executive:

                           Edward D. Goetz
                           258 Spruce Circle
                           Simi Valley, CA  93065


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                  (i) SURVIVAL. Notwithstanding the termination of this
         Agreement or Executive's employment with the Company, the parties shall
         be required to carry out any provisions hereof which contemplate
         performance subsequent to such termination; and such termination shall
         not affect any liability or other obligation which shall have accrued
         prior to such termination, including, but not limited to, any liability
         for loss or damage on account of a prior default, and any terms
         concerning rights and remedies of the parties.

                 [REMAINDER OF PAGE IS INTENTIONALLY LEFT BLANK]


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

BCI ECLIPSE COMPANY, LLC


By:
     --------------------------------               ----------------------------
     James Gilbertson                               Edward D. Goetz
     Its Chief Executive Officer


The undersigned hereby executes this Agreement solely for the purpose of
agreeing to be bound by the terms and provisions of Section 4(c) of this
Agreement:

NAVARRE CORPORATION


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


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