Document:

exv10w26

Exhibit 10.26

Annual Incentive Plan

Fiscal Year – 2009

Effective April 1, 2008 – March 31, 2009

	 	 	 
	
	 	

	 	 	 	 	 
	
	 	
	 	

May 7, 2008

 

 

Contents

	I.	 	Purpose of the Plan
	 
	II.	 	Eligibility
	 
	III.	 	Administration of Plan
	 
	IV.	 	Plan Design
	 
	V.	 	Financial Objectives
	 
	VI.	 	Individual Objectives
	 
	VII.	 	Incentive Payments
	 
	VIII.	 	Amendment, Suspension and Termination
	 
	IX.	 	Unfunded Plan
	 
	X.	 	Other Benefit and Compensation Programs
	 
	XI.	 	Governing Law

	 	 	 
	Exhibit I:

	 	FY2009 Incentive Plan Components
	 
	 	 
	Exhibit II:

	 	FY2009 Incentive Plan Payout Schedule
	 
	 	 
	Exhibit III:

	 	FY2009 Incentive Payout Calculation Examples

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I. Purpose of the Plan

The purpose of the Annual Incentive Plan is to align all participants with the business objectives
of Navarre Corporation and its subsidiaries (the “Company”) by motivating, rewarding and
recognizing participants for their achievements and impact on the Company’s success.

II. Eligibility

Most management-level employees of Navarre are eligible to participate in the Plan. New hires must
be employed prior to September 1st to be eligible for a pro-rata incentive payment for that fiscal
year. Participants who terminate from the company, for any reason, prior to the date of the
incentive payment, will lose their eligibility to receive an incentive payment.

III. Administration

The Plan is administered by the Compensation Committee of the Company’s Board of Directors (the
“Compensation Committee”). The Chief Executive Officer of the Company (the “CEO”) will make
recommendations to the Compensation Committee regarding participation, level of awards, changes to
the Plan, financial objectives, and other aspects of the Plan’s administration. The Compensation
Committee has the authority to interpret the Plan, and, subject to the Plan’s provisions, to make
and amend rules and to make all other decisions necessary for the Plan’s administration. Any
decision of the Compensation Committee in the interpretation and administration of the Plan shall
lie within its sole and absolute discretion and shall be final, conclusive and binding on all
parties concerned. Specifically, the Compensation Committee has the authority to approve payout
percentages and to approve individual awards, including discretionary awards, for the executive
officers. The CEO has the authority to approve individual awards, including discretionary awards,
for other participants consistent with the Plan.

IV. Plan Design

The Annual Incentive Plan has two components:

	•	 	Financial Objectives
	 
	•	 	Individual Objectives

The potential bonus percentage based on these components is determined by the participant’s level
and type of position. This is summarized in Exhibit I.

V. Financial Objectives

Early each fiscal year the Compensation Committee will approve the Financial Objectives for such
fiscal year. The Financial Objectives will be based on attainment of specific levels of
performance of the Company (or of a subsidiary, division, or department thereof) with reference to
one or more of the following criteria: (i) consolidated earnings before or after taxes; (ii)
EBITDA (earnings before interest, taxes, depreciation and amortization); (iii) net income; (iv)
operating income; (v) earnings per share; (vi) return on shareholders’ equity; (vii)

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expense
management; (viii) return on investment; (ix) improvements in capital structure; (x) net sales;
(xi) maintenance or improvements of profit margins; (xii) stock price; (xiii) market share; (xiv)
cash flow; (xv) working capital; (xviii) return on assets; (xv) asset turnover; (xvi) inventory
turnover; (xvii) economic value added (economic profit) and (xviii) total shareholder return.
Payment is made on each Financial Objective as indicated in the Annual Incentive Plan Payout
Schedule (Exhibit II).

For FY2009, the Compensation Committee has determined that the Financial Objectives are:

	 	•	 	Consolidated Operating Income of $20 million (for all participants)
	 
	 	•	 	Consolidated Net Sales of $664 million (for corporate participants)
	 
	 	•	 	Subsidiary Budgeted Operating Income (for subsidiary participants)
	 
	 	•	 	Subsidiary Budgeted Net Sales (for subsidiary participants)

Threshold

The Compensation Committee may determine one or more threshold Financial Objectives which must be
attained in order for any bonus payout to be earned (other than a discretionary pool payout).

For FY2009, the Compensation Committee has determined that the Financial Objective threshold is
Consolidated Operating Income of $16 million.

Growth Multiplier

For FY2009, subject to the maximum payment provision in Paragraph VII, the Compensation
Committee has determined that if Consolidated Operating Income exceeds the target, a participant’s
incentive payment will be increased by the same percentage that Consolidated Operating Income
exceeds the stated target (the Growth Multiplier). This provides for an enhanced incentive payout
which is totally funded by improvement in Consolidated Operating Income. See III for a sample
calculation.

Discretionary Pool

The Compensation Committee may also establish a discretionary pool to reward participants in the
plan with exemplary performance during the fiscal year be paid out whether or not the threshold
Financial Objectives are attained.

The Compensation Committee has determined that the maximum discretionary pool for FY2009 is
$500,000, which may be awarded in whole or in part.

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VI. Individual Objectives

Goal Setting

Plan participants and their managers will share accountability for establishing annual goals for
the Individual Objectives component of the incentive plan. Generally, participants will have three
to five specific and measurable goals which may be weighted or prioritized. These goals
should tie directly to the overall company, subsidiary, or department goals. Joint agreement on
goals will be confirmed with signatures of the participant and his/her manager. These goals must
be provided to Human Resources within two months of becoming eligible for the Annual Incentive
Plan.

Goal Monitoring

Participants will normally meet with their managers at least quarterly to review progress on the
established goals.

Goal Modification

Goals may be modified during the plan year if the business or the individual’s position requires
the change.

Goal Measurement

Plan participants and their managers will discuss the participant’s goal achievement on their
Individual Objectives and managers must submit the achievement to HR for approval in a timely
manner. The Compensation Committee will evaluate and determine achievement of the CEO’s individual
performance and review the achievement for the other executive officers.

VI. Incentive Payments

Results and Adjustments

Actual business results for the fiscal year will be provided by the Chief Financial Officer and
approved by the Compensation Committee. The Compensation Committee may approve adjustments to
actual business results to reflect organizational, operational, or other changes which have
occurred during the year, e.g., acquisitions, dispositions, expansions, contractions, material
non-recurring items of income or loss, extraordinary items, effects of accounting changes or other
events which might create unwarranted hardships or windfalls to participants.

Payments

Payments under the Plan will normally be paid within 45 days of the annual audit. Payment will be
made for the number of full months that the participant held a qualifying position during the plan
year and checks will be taxed in compliance with Internal Revenue Service

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guidelines for bonuses.
Checks will normally be hand delivered in one-on-one meetings by the participant’s manager.

Maximum Payment

Notwithstanding anything to the contrary provided in this Plan, the Compensation Committee may
establish a maximum pay-out to any one participant for any fiscal year.

For FY2009, the Compensation Committee has determined that the total payment to any participant
under this Plan shall not exceed 150% of the participant’s base salary.

Communication

After year-end closing, managers should meet individually with each participant to communicate the
final achievement on specific goals and communicate the incentive payment amount. Human Resources
will prepare a communication document to assist managers to effectively communicate this
information.

VII. Amendment, Suspension and Termination

The Compensation Committee or the Board of Directors may at any time, and without prior notice,
terminate, suspend, amend or modify the Plan or any incentive payments under the Plan not yet paid.
No incentive payment will be made during any suspension of the Plan or after its termination.

VIII. Unfunded Plan

The Plan shall be unfunded and the Company shall not be required to segregate any assets for
incentive payments under the Plan.

IX. Other Benefit and Compensation Programs

Payments received by a participant under this Plan shall not be deemed a part of a participant’s
regular, recurring compensation for purposes of the termination, indemnity or severance pay law of
any state and shall not be included in, nor have any effect on, the determination of benefits under
any other employee benefit plan, contract or similar arrangement provided by the Company unless
expressly so provided by such other plan, contract or arrangement. Nothing in the Plan shall be
construed as a contractual payment obligation or guarantee of employment for any participant.

X. Governing Law

To the extent that Federal laws do not otherwise control, the Plan and all determinations made and
actions taken pursuant to the Plan shall be governed by the laws of Minnesota and construed
accordingly.

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EXHIBIT I

Annual Incentive Plan Components

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Consolidated	 	Subsidiary	 	 	 	 	 	 
	 	 	Operating	 	Operating	 	Consolidated	 	Subsidiary	 	Individual
	Job Level
	 	Income	 	Income	 	Net Sales	 	Net Sales	 	Objectives
	CEO, CFO and COO
	 	 	60	%	 	 	 	 	 	 	20	%	 	 	 	 	 	 	20	%
	Subsidiary Presidents
	 	 	20	%	 	 	40	%	 	 	 	 	 	 	20	%	 	 	20	%
	Corporate VP’s
	 	 	60	%	 	 	 	 	 	 	20	%	 	 	 	 	 	 	20	%
	Subsidiary VP’s
	 	 	20	%	 	 	40	%	 	 	 	 	 	 	20	%	 	 	20	%
	Corporate Directors
	 	 	40	%	 	 	 	 	 	 	20	%	 	 	 	 	 	 	40	%
	Subsidiary Directors
	 	 	20	%	 	 	20	%	 	 	 	 	 	 	20	%	 	 	40	%
	Corporate Managers
	 	 	40	%	 	 	 	 	 	 	20	%	 	 	 	 	 	 	40	%
	Subsidiary Managers
	 	 	20	%	 	 	20	%	 	 	 	 	 	 	20	%	 	 	40	%

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EXHIBIT II

Annual Incentive Plan
Payout Schedule for Financial Objectives

	 	 	 	 	 	 	 	 	 
	 	 	Percent of	 	Payout
	 	 	Target / Budget	 	%
	Target
	 	 	100	%	 	 	100	%
	 
	 	 	99	%	 	 	97.5	%
	 
	 	 	98	%	 	 	95.0	%
	 
	 	 	97	%	 	 	92.5	%
	 
	 	 	96	%	 	 	90.0	%
	 
	 	 	95	%	 	 	87.5	%
	 
	 	 	94	%	 	 	85.0	%
	 
	 	 	93	%	 	 	82.5	%
	 
	 	 	92	%	 	 	80.0	%
	 
	 	 	91	%	 	 	77.5	%
	 
	 	 	90	%	 	 	75.0	%
	 
	 	 	89	%	 	 	72.5	%
	 
	 	 	88	%	 	 	70.0	%
	 
	 	 	87	%	 	 	67.5	%
	 
	 	 	86	%	 	 	65.0	%
	 
	 	 	85	%	 	 	62.5	%
	 
	 	 	84	%	 	 	60.0	%
	 
	 	 	83	%	 	 	57.5	%
	 
	 	 	82	%	 	 	55.0	%
	 
	 	 	81	%	 	 	52.5	%
	Minimum
	 	 	80	%	 	 	50	%
	 
	 	 	 	 
	 
	 	Below 80%	 	0% Payout

Incentive Plan Upside Potential: Incentive Payments may exceed 100% of the targeted bonus
opportunity, up to a maximum of 150% of base salary, if Consolidated Operating Income exceeds
budget. This is accomplished through the use of the Growth Multiplier which increases the final
incentive payment by the same percentage that Consolidated Operating Income exceeds the stated
objective. Please see example two in Exhibit III for details.

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EXHIBIT III

Incentive Payout Calculation Examples

Example #1: Navarre achieves 80% of Consolidated Operating Income, 100% of Consolidated
Net Sales, and participant achieves 80% of their individual objectives.

Corporate Director ($80,000 base salary with a bonus opportunity of 25%)

	 	 	 	 	 	 	 	 	 
	Consolidated	 	Subsidiary 	 	Consolidated Net	 	 	 	 
	Operating Income	 	Operating Income	 	Sales	 	Subsidiary Net Sales	 	Individual Objectives
	10% of base salary
- 

(40% of total)

	 	 	 	5% of base salary -

(20% of total)
	 	 	 	10% of base salary -

(40% of total)

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Incentive Component
	 	% Attained	 	 	Payout %	 	 	Calculation	 	 	Payout	 
	Consolidated Op Income
	 	 	80	%	 	 	50	%	 	 	$80,000 x 10% x 50%	 	 	$	4,000	 
	Subsidiary Op Income
	 	 	—	%	 	 	—	%	 	 	—	 	 	$	0	 
	Consolidated Net Sales
	 	 	100	%	 	 	100	%	 	$	80,000 x 5% x 100	%	 	$	4,000	 
	Subsidiary Net Sales
	 	 	—	%	 	 	—	%	 	 	—	 	 	$	0	 
	Individual Objectives
	 	 	80	%	 	 	80	%	 	$	80,000 x 10% x 80	%	 	$	6,400	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	$	14,400	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

Example #2: Navarre achieves 90% of Consolidated Operating Income, 100% of Subsidiary
Operating Income, 80% of Subsidiary Net Sales, and the participant achieves 95% of their individual
objectives.

Subsidiary VP ($100,000 base salary with a bonus opportunity of 40%)

	 	 	 	 	 	 	 	 	 
	Consolidated	 	Subsidiary	 	Consolidated Net	 	 	 	 
	Operating Income	 	Operating Income	 	Sales	 	Subsidiary Net Sales	 	Individual Objectives
	8% of base salary
- 
(20% of total)

	 	16% of base salary -

(40% of total)
	 	 	 	8% of base salary -

(20% of total)
	 	8% of base salary -

(20% of total)

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Incentive Component
	 	% Attained	 	 	Payout %	 	 	Calculation	 	 	Payout	 
	Consolidated Op Income
	 	 	90	%	 	 	75	%	 	 	$100,000 x 8% x 75%	 	 	$	6,000	 
	Subsidayr Op Income
	 	 	100	%	 	 	100	%	 	$	100,000 x 16% x 100	%	 	$	16,000	 
	Consolidated Net Sales
	 	 	—	%	 	 	—	%	 	 	—	 	 	$	0	 
	Subsidiary Net Sales
	 	 	80	%	 	 	50	%	 	$	100,000 x 8% x 50	%	 	$	4,000	 
	Individual Objectives
	 	 	95	%	 	 	95	%	 	$	100,000 x 8% x 95	%	 	$	7,600	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	$	33,600	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

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Example #3 – Growth Multiplier: Navarre achieves 110% of Consolidated Operating Income,
100% of Subsidiary Operating Income, 90% of Subsidiary Net Sales, and the participant achieves 100%
of their individual objectives.

Subsidiary VP ($100,000 base salary with a bonus opportunity of 40%)

	 	 	 	 	 	 	 	 	 
	Consolidated	 	Subsidiary	 	Consolidated Net	 	 	 	 
	Operating Income	 	Operating Income	 	Sales	 	Subsidiary Net Sales	 	Individual Objectives
	8% of base salary -

(20% of total)

	 	16% of base salary -

(40% of total)
	 	 	 	8% base salary -

(20% of total)
	 	8% of base salary -

(20% of total)

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Incentive Component
	 	% Attained	 	 	Payout %	 	 	Calculation	 	 	Payout	 
	Consolidated Op Income
	 	 	110	%	 	 	100	%	 	 	$100,000 x 8% x 100%	 	 	$	8,000	 
	Subsidiary Op Income
	 	 	100	%	 	 	100	%	 	$	100,000 x 16% x 100	%	 	$	16,000	 
	Consolidated Net Sales
	 	 	—	%	 	 	—	%	 	 	—	 	 	$	0	 
	Subsidiary Net Sales
	 	 	90	%	 	 	75	%	 	$	100,000 x 8% x 75	%	 	$	6,000	 
	Individual Objectives
	 	 	100	%	 	 	100	%	 	$	100,000 x 8% x 100	%	 	$	8,000	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	$	38,000	 
	 	 	 	 	 	 	110% Achievement = 10% Multiplier	 	$	3,800	 
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	$	41,800	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

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10exv10w59

Exhibit 10.59

THIRD AMENDMENT AND WAIVER TO FOURTH AMENDED AND RESTATED CREDIT AGREEMENT

     This THIRD AMENDMENT AND WAIVER TO FOURTH AMENDED AND RESTATED CREDIT AGREEMENT (this
“Amendment”), is dated as of 12 day of June, 2008, by NAVARRE CORPORATION, a Minnesota
corporation (“Borrower”), the Credit Parties signatory hereto, GENERAL ELECTRIC CAPITAL
CORPORATION, a Delaware corporation, as agent (the “Agent”) for itself and the Lenders
under and as defined in the Credit Agreement (as hereinafter defined), and the Lenders. Unless
otherwise specified herein, capitalized terms used in this Amendment shall have the meanings
ascribed to them by the Credit Agreement.

RECITALS

     WHEREAS, the Borrower, the Credit Parties, the Agent and the Lenders have entered into that
certain Fourth Amended and Restated Credit Agreement, dated as of March 22, 2007 (as amended,
supplemented, restated or otherwise modified from time to time, the “Credit Agreement”);
and

     WHEREAS, the Borrower, the Credit Parties, the Agent and the Lenders have agreed to amend
certain provisions of the Credit Agreement as herein set forth.

     NOW THEREFORE, in consideration of the foregoing recital, mutual agreements contained herein
and for good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the Borrower, the Credit Parties, the Agent, and the Lenders hereby agree as follows:

SECTION 1. Amendments. Subject to the satisfaction of each of the conditions to
effectiveness set forth in Section 3 hereof, the Credit Agreement is hereby amended as
follows:

     (a) Section 1.1 (a) of the Credit Agreement is hereby amended by adding the following
sentence at the end thereof:

     “Notwithstanding anything to the contrary set forth herein or otherwise, Borrower may
not repay Revolving Credit Advances so that the outstanding principal balance of the
Revolving Credit Advances is, at any time on or prior to the first anniversary of the Third
Amendment Date, less than the Designated Amount.”

     (b) Section 1.5 (a) of the Credit Agreement is hereby amended and restated to read as
its entirety as follows:

“(a) Borrower shall pay interest to Agent, for the ratable benefit of Lenders in accordance
with the Loans being made by each Lender, in arrears on each applicable Interest Payment
Date, at the Index Rate plus 6.25% per annum or, at the election of Borrower, at the
applicable LIBOR Rate plus 7.50% per annum; provided, however, that to the
extent that the outstanding principal balance of the Revolving Credit Advances is in excess
of the Designated Amount, Borrower shall pay interest on such excess principal amount to
Agent, for the ratable benefit of Lenders in accordance with the Loans being made by each
Lender, in arrears on each applicable Interest Payment Date,

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not at the rate as determined
above, but at the Index Rate plus the Applicable Revolver Index Margin per annum or, at the
election of Borrower, at the applicable LIBOR Rate plus the Applicable Revolver LIBOR Margin
per annum, based on the aggregate Revolving Credit Advances outstanding from time to time.

As of July 1, 2008, the Applicable Margins are as follows:

	 	 	 	 	 
	Applicable Revolver Index Margin
	 	 	1.50	%
	 
	 	 	 	 
	Applicable Revolver LIBOR Margin
	 	 	2.75	%
	 
	 	 	 	 
	Applicable L/C Margin
	 	 	2.75	%
	 
	 	 	 	 
	Applicable Unused Line Fee Margin
	 	 	0.375	%

     The Applicable Margins shall be adjusted (up or down) prospectively on a quarterly basis as
determined based upon the average daily Borrowing Availability for the then most recently ended
Fiscal Quarter, commencing with the Fiscal Quarter ending on June 30, 2008. All adjustments in the
Applicable Margins thereafter shall be implemented quarterly on a prospective basis at any time
there is a need for an adjustment (the determination as to whether an adjustment is necessary to be
made by Agent in good faith). Adjustments in Applicable Margins will be determined by reference to
the following grids:

	 	 	 
	If average daily Borrowing	 	Level of
	Availability for the Fiscal Quarter is:	 	Applicable Margins:
	3
$45,000,000

	 	Level I
	3  $35,000,000, but < $45,000,000

	 	Level II
	3 $20,000,000, but < $35,000,000

	 	Level III
	3  $7,500,000, but < $20,000,000

	 	Level IV
	< $7,500,000

	 	Level V

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Level I	 	Level II	 	Level III	 	Level IV	 	Level V
	Applicable Revolver
Index Margin
	 	 	0.75	%	 	 	1.00	%	 	 	1.25	%	 	 	1.50	%	 	 	1.75	%
	Applicable Revolver
LIBOR Margin
	 	 	2.00	%	 	 	2.25	%	 	 	2.50	%	 	 	2.75	%	 	 	3.00	%
	Applicable L/C
Margin
	 	 	2.00	%	 	 	2.25	%	 	 	2.50	%	 	 	2.75	%	 	 	3.00	%
	Applicable Unused
Line Fee Margin
	 	 	0.375	%	 	 	0.375	%	 	 	0.375	%	 	 	0.375	%	 	 	0.375	%

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If any Default or an Event of Default has occurred and is continuing at the time any
reduction in the Applicable Margins is to be implemented, that reduction shall be deferred
until the first day of the first calendar month following the date on which all Defaults or
Events of Default are waived or cured.”

     (c) Section 1.9 (c) of the Credit Agreement is hereby amended and restated in its
entirety to read as follows:

“(c) If, on or prior to the third anniversary of the Third Amendment Date, Borrower prepays
the Revolving Loan and/or reduces or terminates the Revolving Loan Commitment, whether
voluntarily or involuntarily and whether before or after acceleration of the Obligations or
if the Revolving Loan Commitments are reduced or terminated, Borrower shall pay to Agent,
for the benefit of Lenders as liquidated damages and compensation for the costs of being
prepared to make funds available hereunder an amount equal to the Applicable Percentage (as
defined below) multiplied by the amount of the reduction of the Revolving Loan Commitment.
As used herein, the term “Applicable Percentage” shall mean (x) one and one half of
one percent (1.5%), in the case of a reduction on or prior to the first anniversary of the
Third Amendment Date, (y) one percent (1%), in the case of a reduction after the first
anniversary of the Third Amendment Date but on or prior to the second anniversary thereof
and (z) one half of one percent (0.5%), in the case of a reduction after the second
anniversary of the Third Amendment Date but on or prior to the third anniversary thereof.
The Credit Parties agree that the Applicable Percentages are a reasonable calculation of
Lenders’ lost profits in view of the difficulties and impracticality of determining actual
damages resulting from an early termination of the Revolving Loan Commitment.
Notwithstanding the foregoing, no prepayment fee shall be payable by Borrower upon a
mandatory prepayment made pursuant to Sections 1.3(b) 1.16(c) or 5.4(d);
provided that Borrower does not permanently reduce or terminate the Revolving Loan
Commitment upon any such prepayment and, in the case of prepayments made pursuant to
Sections 1.3(b)(ii) or (b)(iii), the transaction giving rise to the applicable
prepayment is a sale of a Subsidiary or division of Borrower expressly permitted under
Section 6.”

     (d) Section 6.3(a)(vii) of the Credit Agreement is hereby amended and restated in its
entirety to read as follows:

          “(vii) [Intentionally Omitted]”

     (e) A new Section 6.21, which shall read in it entirety as follows, is hereby added to
the Credit Agreement immediately following Section 6.20:

          “6.21 Independent Advisor. The Credit Parties hereby agree that they shall not fail
to engage the Independent Advisor on or prior to July 14, 2008.”

     (f) The following definitions are hereby added to Annex A to the Credit Agreement in
alphabetical order:

     “Designated Amount” shall mean $6,000,000; provided, however,
on the 15th day after the delivery of the financial statements and related documents
required by clause

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(c) of Annex E for each Fiscal Year of the Borrower to
end after the Third Amendment Date, as long as the Borrower has provided a calculation, in
detail and form acceptable to the Agent, of the Excess Cash Flow for such Fiscal Year, the
Designated Amount shall be reduced, to an amount not less than zero, by 50% of the Excess
Cash Flow for such Fiscal Year.

     “Excess Cash Flow” shall mean, with respect to the Borrower for any period, an
amount (if positive) equal to: (i) the amount for such period of EBITDA, minus (ii) the sum,
without duplication, of the amounts for such period of (a) scheduled repayments of
Indebtedness for borrowed money, (b) Capital Expenditures (net of any proceeds of (y) any
related financing, including purchase money financings, with respect to such expenditures
and (z) any Capital Expenditures made with the proceeds of asset dispositions), (c) Interest
Expense, (d) taxes paid in cash during such period based upon net income, and (e) the
aggregate Net Vendor Advances made during such period.

     “Independent Advisor” shall mean a third party advisory firm engaged by the
Credit Parties (from a list of three firms provided by Agent) to review the Projections for
the Fiscal Year ending on or about March 31, 2009, with the scope and timing of such review
to be satisfactory to Agent in its sole discretion.”

     “Third Amendment Date” shall mean June 12, 2008

     (g) The following definitions set forth in Annex A to the Credit Agreement are hereby
amended and restated in their entirety to read as follows:

     “Commitment Termination Date” means the earliest of (a) March 22, 2012, (b) the
date of termination of Lenders’ obligations to make Advances and to incur Letter of Credit
Obligations or permit existing Loans to remain outstanding pursuant to Section
8.2(b), and (c) the date of indefeasible prepayment in full by Borrower of the Loans and
the cancellation and return (or stand-by guarantee) of all Letters of Credit or the cash
collateralization of all Letter of Credit Obligations pursuant to Annex B, and the
permanent reduction of the Commitments to zero dollars ($0).

     “EBITDA” means, with respect to any Person for any fiscal period, without
duplication, an amount equal to (a) consolidated net income of such Person for such period,
determined in accordance with GAAP, minus (b) the sum of (i) income tax credits,
(ii) interest income, (iii) gain from extraordinary items for such period, (iv) any
aggregate net gain (but not any aggregate net loss) during such period arising from the
sale, exchange or other disposition of capital assets by such Person (including any fixed
assets, whether tangible or intangible, all inventory sold in conjunction with the
disposition of fixed assets and all securities), (v) any other non-cash gains that have been
added in determining consolidated net income, in each case to the extent included in the
calculation of net income of such Person for such period in accordance with GAAP, but
without duplication and (vi) amounts paid on behalf of or for the benefit of Goldhil Media,
Tower Records or any trust, trustee or fund relating thereto or successor to any of the
foregoing, plus (c) the sum of (i) any provision for income taxes, (ii) Interest
Expense, (iii) loss from extraordinary items for such period, (iv) depreciation and

4

 

amortization for such period (other than amortization with respect to Vendor Advances), (v)
amortized debt discount for such period, (vi) the amount of any deduction to consolidated
net income as the result of any grant to any members of the management of such Person of any
Stock, (vii) write-offs of Accounts owing to Borrower from (x) Goldhil Media in the
aggregate amount not to exceed $2,100,000 and (y) Tower Records in the aggregate amount not
to exceed $1,900,000 and (viii) losses arising from the operations of Navarre Entertainment
in an aggregate amount not to exceed (w) $3,233,000 with respect to the 12 month period
ending on March 31, 2008 (x) $1,368,000 with respect to the 12 month period ending on June
30, 2008, (y) $394,000 with respect to the 12 month period ending on September 30, 2008, (z)
$27,000 with respect to the 12 month period ending on December 31, 2008, in each case to the
extent included in the calculation of consolidated net income of such Person for such period
in accordance with GAAP, but without duplication. For purposes of this definition, the
following items shall be excluded in determining consolidated net income of a Person: (1)
the income (or deficit) of any other Person accrued prior to the date it became a Subsidiary
of, or was merged or consolidated into, such Person or any of such Person’s Subsidiaries;
(2) the income (or deficit) of any other Person (other than a Subsidiary) in which such
Person has an ownership interest, except to the extent any such income has actually been
received by such Person in the form of cash dividends or distributions; (3) the
undistributed earnings of any Subsidiary of such Person to the extent that the declaration
or payment of dividends or similar distributions by such Subsidiary is not at the time
permitted by the terms of any contractual obligation or requirement of law applicable to
such Subsidiary; (4) any restoration to income of any contingency reserve, except to the
extent that provision for such reserve was made out of income accrued during such period;
(5) any write-up of any asset; (6) any net gain from the collection of the proceeds of life
insurance policies; (7) any net gain arising from the acquisition of any securities, or the
extinguishment, under GAAP, of any Indebtedness, of such Person, (8) in the case of a
successor to such Person by consolidation or merger or as a transferee of its assets, any
earnings of such successor prior to such consolidation, merger or transfer of assets, and
(9) any deferred credit representing the excess of equity in any Subsidiary of such Person
at the date of acquisition of such Subsidiary over the cost to such Person of the investment
in such Subsidiary.”

     “Minimum Excess Availability Reserve” shall mean a special Reserve maintained
by Agent in an amount at all times equal to the sum of (i) $11,500,000; provided
that Agent may at any time, in its sole discretion, reduce such amount to $8,500,000
pursuant to a written notice to Borrower specifically referring to this definition
minus (ii) at all times on or prior to October 10, 2008, $6,000,000”

     (h) Clause (b) of Annex G to the Credit Agreement is hereby amended and
restated to read in its entirety as follows:

     “(b) Minimum Fixed Charge Coverage Ratio. Borrower and its Subsidiaries shall
have on a consolidated basis, as of the last day of the Fiscal Quarter ending on June 30,
2007 and as of the last day of each Fiscal Quarter thereafter, for the 12 month period then
ended, a ratio (the “Fixed Charge Coverage Ratio”) of (A) the sum of (i) EBITDA
plus (ii) the aggregate of all Vendor Advance Expenses for such period, plus
(iii) interest

5

 

income received during such period minus (iii) Capital Expenditures
during such period (other than Capital Expenditures financed other than with the proceeds of
Loans), minus (iv) income taxes paid in cash during such period, minus (v)
the aggregate of all Vendor Advances made during such period to (B) the sum of, without
duplication, (i) the aggregate of all Interest Expense paid or accrued during such period,
plus (ii) scheduled payments of principal with respect to Indebtedness during such
period (other than scheduled principal payments made by Borrower during such period with
respect to Term Loan B (as defined and under the Existing Credit Agreement) pursuant to the
Existing Credit Agreement), plus, (iii) all Restricted Payments made by a Credit
Party during such period (other than Restricted Payments (a) made to another Credit Party or
(b) which have caused EBITDA to be reduced for such period) of at least the ratio set forth
below opposite such Fiscal Quarter:

	 	 	 	 	 
	Fiscal Quarter Ending 	 	Ratio
	June 30, 2007
	 	 	0.90 :1	 
	September 30, 2007
	 	 	0.80 :1	 
	December 31, 2007
	 	 	0.80 :1	 
	March 31, 2008
	 	 	1.20:1	 
	June 30, 2008
	 	 	0.85:1	 
	September 30, 2008
	 	 	1.20:1	 
	December 31, 2008
	 	 	1.20:1	 
	March 31, 2009
	 	 	1.30:1	 
	June 30, 2009
	 	 	1.30:1	 
	September 30, 2009
	 	 	1.30:1	 
	December 31, 2009
	 	 	1.30:1	 
	March 31, 2010 and each Fiscal Quarter ending thereafter”
	 	 	1.40:1	 

     (i) Clause (d) of Annex G to the Credit Agreement is hereby amended and
restated to read in its entirety as follows:

     “(d) Minimum EBITDA. Borrower and its Subsidiaries shall have on a
consolidated basis, as of the last day of the Fiscal Quarter ending on June 30, 2007 and as
of the last day of each Fiscal Quarter thereafter, for the 12 month period then ended,
EBITDA of at least the amount set forth below opposite such Fiscal Quarter:

	 	 	 	 	 
	Fiscal Quarter Ending	 	Amount
	June 30, 2007
	 	$	32,000,000	 
	September 30, 2007
	 	$	26,000,000	 
	December 31, 2007
	 	$	27,000,000	 
	 
	 	 	 	 
	March 31, 2008
	 	$	27,000,000	 
	 
	 	 	 	 
	June 30, 2008
	 	$	22,750,000	 
	September 30, 2008
	 	$	25,000,000	 

6

 

	 	 	 	 	 
	Fiscal Quarter Ending	 	Amount
	December 31, 2008
	 	$	25,000,000	 
	March 31, 2009
	 	$	27,000,000	 
	June 30, 2009
	 	$	29,000,000	 
	September 30, 2009
	 	$	30,000,000	 
	December 31, 2009
	 	$	31,000,000	 
	March 31, 2009
	 	$	33,000,000	 
	September 30, 2009 and each Fiscal Quarter ending thereafter
	 	$	35,000,000	 

SECTION 2. Limited Waivers. Effective as of March 31, 2008, Agent and Lenders hereby waive
any Event of Default under subsection 8.1 (b) of the Credit Agreement arising solely as a
result of the failure to comply with clause (d) of Annex G  for the Fiscal Quarter
ending March 31, 2008. In addition, Agent and Lenders hereby waive the provisions of Section
6.3(b) and Section 6.14 of the Credit Agreement to the extent necessary to permit
Borrower to repay the obligations under the Second Lien Credit Agreement in full on the date
hereof. The waivers set forth above shall be limited precisely as written and shall not be deemed
or otherwise construed to constitute a waiver of any other Default or Event of Default or any other
provision or to prejudice any right, power or remedy which Agent or Lenders may now have or may
have in the future under or in connection with the Credit Agreement or any other Loan Document, all
of which rights, power and remedies are hereby expressly reserved by Agent and Lenders.

SECTION 3. Conditions to Effectiveness. The effectiveness of this Amendment is subject to
the satisfaction of each the following conditions precedent:

     (a) this Amendment shall have been duly executed and delivered by the Borrower, the Credit
Parties, the Agent and each Lender;

     (b) Borrower shall have executed and delivered to Agent that certain fee letter supplement,
dated as of the date hereof, between GE Capital and the Borrower (the “Fee Letter
Supplement”); and

     (c) Agent shall have received such other documents, instruments, agreements and legal opinions
as Agent shall reasonably request in connection with the transactions contemplated by this
Amendment, including those listed in the Closing Checklist attached hereto as Annex A, each
in form and substance reasonably satisfactory to Agent.

SECTION 4. Representations and Warranties. In order to induce the Agent and each Lender to
enter into this Amendment, each Credit Party hereby represents and warrants to the Agent and each
Lender, which representations and warranties shall survive the execution and delivery of this
Amendment, that:

     (a) all of the representations and warranties contained in the Credit Agreement and in each
Loan Document are true and correct as of the date hereof after giving effect to this Amendment,
except to the extent that any such representations and warranties expressly relate to an earlier
date;

7

 

     (b) the execution, delivery and performance by such Credit Party of this Amendment has been
duly authorized by all necessary corporate, limited liability company or partnership action
required on its part and this Amendment, and the Credit Agreement is the legal, valid and binding
obligation of such Credit Party enforceable against such Credit Party in accordance with its terms,
except as its enforceability may be affected by the effect of bankruptcy, insolvency,
reorganization, moratorium or other similar laws now or hereafter in effect relating to or
affecting the rights or remedies of creditors generally;

     (c) neither the execution, delivery and performance of this Amendment by such Credit Party,
the performance by such Credit Party of the Credit Agreement nor the consummation of the
transactions contemplated hereby does or shall contravene, result in a breach of, or violate (i)
any provision of any Credit Party’s certificate or articles of incorporation or bylaws or other
similar documents, or agreements, (ii) any law or regulation, or any order or decree of any court
or government instrumentality, or (iii) any indenture, mortgage, deed of trust, lease, agreement or
other instrument to which any Credit Party or any of its Subsidiaries is a party or by which any
Credit Party or any of its Subsidiaries or any of their property is bound, except in any such case
to the extent such conflict or breach has been waived herein or by a written waiver document, a
copy of which has been delivered to Agent on or before the date hereof; and

     (d) no Default or Event of Default has occurred and is continuing (other than those waived
pursuant hereto).

SECTION 5. Intercreditor Agreement. Lenders hereby authorize and direct Agent to execute
such documents as are necessary or appropriate to permit Borrower to repay the obligations under
the Second Lien Credit Agreement in full on the date hereof.

SECTION 6. Reference to and Effect Upon the Credit Agreement.

     (a) Except as specifically set forth above, the Credit Agreement and the other Loan Documents
shall remain in full force and effect and are hereby ratified and confirmed; and

     (b) The amendments set forth herein are effective solely for the purposes set forth herein and
shall be limited precisely as written, and shall not be deemed to (i) be a consent to any
amendment, waiver or modification of any other term or condition of the Credit Agreement or any
other Loan Document, (ii) operate as a waiver or otherwise prejudice any right, power or remedy
that the Agent or the Lenders may now have or may have in the future under or in connection with
the Credit Agreement or any other Loan Document or (iii) constitute an amendment or waiver of any
provision of the Credit Agreement or any Loan Document, except as specifically set forth herein.
Upon the effectiveness of this Amendment, each reference in the Credit Agreement to “this
Agreement”, “herein”, “hereof” and words of like import and each reference in the Credit Agreement
and the Loan Documents to the Credit Agreement shall mean the Credit Agreement as amended hereby.
This Amendment shall be construed in connection with and as part of the Credit Agreement.

8

 

SECTION 7. GOVERNING LAW. THIS AMENDMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE
WITH THE INTERNAL LAWS OF THE STATE OF ILLINOIS.

SECTION 8. Headings. Section headings in this Amendment are included herein for
convenience of reference only and shall not constitute part of this Amendment for any other
purposes.

SECTION 9. Counterparts. This Amendment may be executed in any number of counterparts,
each of which when so executed shall be deemed an original, but all such counterparts shall
constitute one and the same instrument.

(signature pages follow)

9

 

     IN WITNESS WHEREOF, the parties hereto have executed and delivered this Amendment as of
the date first written above.

	 	 	 	 	 	 	 
	 	 	BORROWER:	 	 
	 
	 	 	 	 	 	 
	 	 	NAVARRE CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 

[Signature Page to Second Amendment To Fourth Amended and Restated Credit Agreement]

S-2

 

	 	 	 	 	 	 	 
	 	 	GENERAL ELECTRIC CAPITAL CORPORATION, as Agent and Lender	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 

[Signature Page to Second Amendment To Fourth Amended and Restated Credit Agreement]

S-2

 

     IN WITNESS WHEREOF, this Amendment has been duly executed as of the date first written above
by below Persons in their capacity as Credit Parties not as Borrower.

	 	 	 	 	 	 	 
	 	 	ENCORE SOFTWARE, INC., as Credit Party  
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	BCI ECLIPSE COMPANY, LLC, as Credit Party	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	FUNIMATION PRODUCTIONS LTD., as Credit Party	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Navarre CP, LLC, its General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	ANIMEONLINE, LTD (F/K/A THE FUNIMATION 

STORE LTD.), as Credit Party
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Navarre CS, LLC, its General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	NAVARRE CP, LLC, as Credit Party	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 

[Signature Page to Second Amendment To Fourth Amended and Restated Credit Agreement]

S-3

 

	 	 	 	 	 	 	 
	 	 	NAVARRE CLP, LLC, as Credit Party	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	NAVARRE CS, LLC, as Credit Party	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	NAVARRE LOGISTICAL SERVICES, INC., as Credit Party	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	NAVARRE DIGITAL SERVICES, INC., as Credit Party	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	NAVARRE ONLINE FULFILLMENT SERVICES, 

INC., as Credit Party	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	NAVARRE DISTRIBUTION
SERVICES, INC., as Credit Party	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 

[Signature Page to Second Amendment To Fourth Amended and Restated Credit Agreement]

S-4

 

	 	 	 	 	 	 	 
	 	 	FUNIMATION CHANNEL, INC., as Credit Party	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 

[Signature Page to Second Amendment To Fourth Amended and Restated Credit Agreement]

S-5

 

ANNEX A

CLOSING CHECKLIST

REGARDING

THIRD AMENDMENT

TO

FOURTH AMENDED AND RESTATED CREDIT AGREEMENT

by and among

GENERAL ELECTRIC CAPITAL CORPORATION,

as Agent,

NAVARRE CORPORATION,

as Borrower,

THE OTHER CREDIT PARTIES NAMED THEREIN

and

THE LENDERS FROM TIME TO TIME SIGNATORY THERETO

June 12, 2008

 

 

     Set forth below is a Closing Checklist which lists documents and information to be
delivered in connection with Third Amendment to Fourth Amended and Restated Credit Agreement
(“Amendment”) listed herein as Document No. 1, the other Loan Documents and the
transactions contemplated thereunder. All documents are dated as of June 12, 2008 unless otherwise
indicated.

I. PARTIES TO THE TRANSACTION

	 	 	 
	1.

	 	General Electric Capital Corporation (“Agent”)
	 
	 	 
	2.

	 	Monroe Capital Advisors, LLC (“Second Lien Agent” or “Monroe”)
	 
	 	 
	3.

	 	Navarre Corporation, a Minnesota corporation (“Navarre” or “Borrower”)
	 
	 	 
	4.

	 	Encore Software, Inc. (f/k/a Encore Acquisition Corporation), a Minnesota corporation
(“Encore”)
	 
	 	 
	5.

	 	BCI Eclipse Company, LLC, a Minnesota limited liability company (“BCI”)
	 
	 	 
	6.

	 	Navarre CP, LLC, a Minnesota limited liability company (“CP”)
	 
	 	 
	7.

	 	Navarre CLP, LLC, a Minnesota limited liability company (“CLP”)
	 
	 	 
	8.

	 	Navarre CS, LLC, a Minnesota limited liability company (“CS”)
	 
	 	 
	9.

	 	FUNimation Productions Ltd., a Texas limited partnership (“Productions”)
	 
	 	 
	10.

	 	animeOnline, Ltd. (f/k/a The FUNimation Store Ltd.), a Texas limited partnership
(“animeOnline”)
	 
	 	 
	11.

	 	Navarre Logistical Services, Inc., a Minnesota corporation (“Navarre Logistical”)
	 
	 	 
	12.

	 	Navarre Digital Services, Inc., a Minnesota corporation (“Navarre Digital”)
	 
	 	 
	13.

	 	Navarre Online Fulfillment Services, Inc., a Minnesota corporation (“Navarre Online”)
	 
	 	 
	14.

	 	Navarre Distribution Services, Inc., a Minnesota corporation (“Navarre Distribution”)
	 
	 	 
	15.

	 	FUNimation Channel, Inc., a Minnesota corporation (“Channel” and together with
Borrower, Encore, BCI, CP, CLP, CS, Productions, animeOnline, Navarre Logistical, Navarre
Digital, Navarre Online, Navarre Distribution and Navarre Entertainment, each a “Credit
Party” and collectively, the “Credit Parties”)
	 
	 	 
	16.

	 	Ryan Urness (“Borrower’s Internal Counsel” or “BIC”)
	 
	 	 
	17.

	 	Jones Day (“Monroe’s Counsel” or “JD”)
	 
	 	 
	18.

	 	Latham & Watkins (“Agent’s Counsel” or “L&W”)

 

 

LOAN DOCUMENTS

	1.	 	Third Amendment to Fourth Amended and Restated Credit Agreement (“Amendment”)

Annexes to Amendment

	 	(i)	 	Annex A – Closing Checklist

CORPORATE AND ORGANIZATIONAL DOCUMENTS

	1.	 	Borrower and Credit Parties

	 	(i)	 	Secretary’s Certificate for each Credit Party, to include:

	 	(a)	 	Certification that no change or modification have
been made to such Credit Party’s Articles/Certificate
of Incorporation or By-Laws, Certificate of
Organization or Operating Agreement, Certificate of
Organization or Partnership Agreement, as applicable,
since March 22, 2007
	 
	 	(b)	 	Certified copies of Resolutions authorizing the
execution, delivery and performance by such Credit
Party of the Amendment, the other Loan Documents and
the transactions to be consummated in connection
therewith
	 
	 	(c)	 	Incumbency for such Credit Party

PAYOFF DOCUMENTS

	2.	 	Monroe Payoff Letter
	 
	3.	 	UCC-3 Termination Statements identified on Exhibit A hereto
	 
	4.	 	IP Releases with respect to Patent, Copyright and Trademark Security
Agreements identified on Exhibit B hereto

MISCELLANEOUS CLOSING DOCUMENTS

	5.	 	Supplemental Fee Letter
	 
	6.	 	Monroe Side Letter
	 
	7.	 	Letter of Direction
	 
	8.	 	Notice of Borrowing

 

 

EXHIBIT A

UCC-3 Termination Statements

	 	 	 	 	 
	 	 	 	 	FILING NUMBER/DATE OF
	 	 	 	 	FINANCING STATEMENTS
	LOAN PARTY	 	JURISDICTION	 	TO BE TERMINATED
	Navarre Logistical
Services, Inc.

	 	Minnesota Secretary of State
	 	200716029579 dated 03/22/2007
	Navarre Digital
Services, Inc.

	 	Minnesota Secretary of State
	 	200716029529 dated 03/22/2007
	Navarre Online
Fulfillment Services,
Inc.

	 	Minnesota Secretary of State
	 	200716029618 dated 03/22/2007
	Navarre Distribution
Services, Inc.

	 	Minnesota Secretary of State
	 	200716029555 dated 03/22/2007
	Navarre Entertainment
Media, Inc.

	 	Minnesota Secretary of State
	 	200716029567 dated 03/22/2007
	FUNimation Channel, Inc.

	 	Minnesota Secretary of State
	 	200716029480 dated 03/22/2007
	[Other Monroe liens]
	 	 	 	 

 

 

EXHIBIT B

IP Releases

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