Document:

Unassociated Document

    EXECUTION
      COPY

    

    PLEDGE
      AGREEMENT

    

    THIS
      PLEDGE AGREEMENT,
      made as
      of this 20th day of November, 2008 (this “Agreement”),
      is
      between GOTO
      COLLEGE HOLDINGS, INC.,
      a
      Delaware corporation (“Pledgor”),
      and
VIKING
      ASSET MANAGEMENT, LLC,
      a
      California limited liability company, in its capacity as collateral agent for
      the Buyers identified below (in such capacity, together with its successors
      and
      assigns, the “Pledgee”).
      

    

    WHEREAS:

    

    A. MRU
      Holdings, Inc., a Delaware corporation (the “Company”)
      has
      executed and delivered to each of the Buyers (as defined below) those certain
      secured senior notes each made by the Company and dated as of October 19, 2007
      in an original aggregate principal amount of $11,200,000 (such
      notes, together with any promissory notes or other securities issued in exchange
      or substitution therefor or replacement thereof, and as any of the same may
      be
      amended, supplemented, restated or modified and in effect from time to time,
      the
“Notes”).
      The
      Notes were issued pursuant to a certain Securities Purchase Agreement dated
      as
      of October 19, 2007 (as the same may be amended, restated, supplemented or
      otherwise modified, the “Purchase
      Agreement”),
      among
      the Company and Longview
      Marquis Master Fund, L.P., a British Virgin Islands limited partnership
      (including as successor to The Longview Fund, L.P., a California limited
      partnership, under the Purchase Agreement (as defined below), “Marquis”;
      Marquis, together with its successors and assigns and each other holder of
      a
      Note (as defined below) and their respective successors and assigns,
      individually and collectively, the “Buyers”),
      and
      pursuant to which the Buyers have made certain loans (“Loans”)
      to the
      Company.

    

    B. The
      Pledgor legally and beneficially owns one hundred percent (100%) of the issued
      and outstanding shares of capital stock or other equity interests of each of
      EMBARK CORP., a Delaware corporation (“Embark”),
      and
      EMBARK ONLINE, INC., a Delaware corporation (“Embark
      Online”)
      (each
      of Embark, Embark Online and each other corporation or other entity, the capital
      stock or other equity interests of which are owned or acquired by Pledgor and
      described on an addendum hereto from time to time executed by Pledgor in form
      and substance satisfactory to Pledgee, is referred to herein as a “Pledged
      Entity”
and
      collectively as the “Pledged
      Entities”).

     

    C. Pursuant
      to a Security Agreement of even date herewith by and among Pledgor, the other
      entities party thereto as “Debtors” and Pledgee (as the same may be amended,
      restated, modified or supplement and in effect from time to time, the
“Security
      Agreement”),
      Pledgor has granted Pledgee, for its benefit and the benefit of the Buyers,
      a
      first priority security interest in, lien upon and pledge of its rights in
      the
      Collateral (as defined in the Security Agreement).

    

    D. Pursuant
      to a Guaranty dated as of October 19, 2007 by and among Pledgor, the other
      entities party thereto as “Guarantors” in favor of Pledgee (as the same may be
      amended, restated, supplemented or otherwise modified and in effect from time
      to
      time, the “Guaranty”),
      Pledgor has guaranteed the Obligations (as defined therein) in favor of Pledgee
      (on its behalf and on behalf of the Buyers).

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    E. Pledgor
      is a direct subsidiary of the Company and, as such, will derive substantial
      benefit and advantage from the continued financial accommodations to the Company
      set forth in the Purchase Agreement and the Notes, and it will be to Pledgor’s
      direct interest and economic benefit to assist the Company in continuing to
      procure said financial accommodations from Buyers.

    

    F. The
      Company, Pledgor, Embark, Embark Online, IEMPOWER, INC., a Delaware corporation
      (“iempower”),
      MRU
      ORIGINATIONS, INC., a Delaware corporation (“MRU
      Originations”),
      MRU
      UNIVERSAL GUARANTY AGENCY, INC., a Delaware corporation (“MRU
      Universal”;
      together with Pledgor, Embark, Embark Online, iempower, MRU Originations, is
      hereinafter sometimes referred to individually as a “Debtor”
and,
      collectively, as the “Debtors”),
      Buyers and Pledgee have entered into that certain Third Amendment of even date
      herewith (as the same may be amended, restated, supplemented or otherwise
      modified and in effect from time to time, the “Third
      Amendment”),
      pursuant to which the Company and the Buyers have agreed to amend certain
      provisions of the Purchase Agreement.

    

    G. To
      induce
      the Buyers to continue to make financial accommodations to the Company under
      the
      Purchase Agreement and to enter into the Third Amendment, and in order to secure
      the payment and performance by Pledgor of the Liabilities, Pledgor has agreed
      to
      pledge to Pledgee all of the capital stock and other equity interests and
      securities of Pledged Entities now or hereafter owned or acquired by
      Pledgor.

    

    NOW,
      THEREFORE,
      in
      consideration of the premises and in order to induce the Buyers to purchase
      the
      Notes under the Purchase Agreement and for other good and valuable
      consideration, the receipt and sufficiency of which are hereby acknowledged,
      Pledgor hereby agrees with Pledgee as follows:

    

    1. Defined
      Terms.
      Unless
      otherwise defined herein, all capitalized terms used herein shall have the
      meanings given them in the Purchase
      Agreement. In addition, as used herein:

     

    “Event
      of Default”
shall
      have the meaning set forth in the Notes. 

     

    “Governmental
      Authority”
shall
      mean the government of the United States of America or any other nation, or
      any
      political subdivision thereof, whether state or local, or any agency, authority,
      instrumentality, regulatory body, court, central bank or other entity exercising
      executive, legislative, judicial, taxing, regulatory or administration powers
      or
      functions of or pertaining to government over Pledgor or any of its
      Subsidiaries, or any of their respective properties, assets or
      undertakings.

     

    “Liabilities”
shall
      mean all obligations, liabilities and indebtedness of every nature of Pledgor
      from time to time owed or owing under or in respect of this Agreement, the
      Guaranty and any of the other Security Documents, as the case may be, including,
      without limitation, the principal amount of all debts, claims and indebtedness,
      accrued and unpaid interest and all fees, costs and expenses, whether primary,
      secondary, direct, contingent, fixed or otherwise, heretofore, now and/or from
      time to time hereafter owing, due or payable whether before or after the filing
      of a bankruptcy, insolvency or similar proceeding under applicable federal,
      state, foreign or other law and whether or not an allowed claim in any such
      proceeding.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    “Lien”
shall
      have the meaning set forth in the Purchase Agreement.

     

    2. Pledge.
      Pledgor
      hereby pledges, assigns, hypothecates, transfers, delivers and grants to
      Pledgee, for the benefit of itself and the Buyers, a first Lien on and first
      priority perfected security interest in (i) all of the capital stock or other
      equity interests of Pledged Entities now owned or hereafter acquired by Pledgor
      (collectively, the “Pledged
      Shares”),
      (ii)
      all other property hereafter delivered to, or in the possession or in the
      custody of, Pledgee, in substitution for or in addition to the Pledged Shares,
      (iii) the properties of Pledgor which is described in Section
      6
      below,
      whether now or hereafter delivered to, or in the possession or custody of
      Pledgor, and (iv) all proceeds of the collateral described in the preceding
      clauses
      (i),
      (ii)
      and
(iii)
      (the
      collateral described in clauses
      (i)
      through
(iv)
      of this
Section
      2
      being
      collectively referred to as the “Pledged
      Collateral”),
      as
      collateral security for the prompt and complete payment and performance when
      due
      (whether at the stated maturity, by acceleration or otherwise) of the
      Liabili-ties. All of the Pledged Shares now owned by Pledgor, if any, which
      are
      presently represented by certificates are listed on Exhibit A
      hereto,
      which certificates, with undated assignments separate from certificates or
      stock
      powers duly executed in blank (which assignments separate from certificates
      or
      stock powers may be filled in and completed at any time upon the occurrence
      of
      any Event of Default) by Pledgor and irrevocable proxies, are being delivered
      to
      Pledgee simultaneously herewith. Upon the creation or acquisition of any new
      Pledged Shares, Pledgor shall execute an addendum in the form of Exhibit
      B
      attached
      hereto (a “Pledge
      Addendum”).
      Any
      Pledged Collateral described in a Pledge Addendum executed by Pledgor shall
      thereafter be deemed to be listed on Exhibit
      A
      hereto.
      Pledgee shall maintain possession and custody of the certificates representing
      the Pledged Shares and any additional Pledged Collateral.

     

    3. [Reserved].

     

    4. Representations
      and Warranties of Pledgor. Pledgor
      represents and warrants to Pledgee, and covenants with Pledgee,
      that:

     

    (a) Exhibit
      A
      sets
      forth (i) the authorized capital stock or other equity interests of each Pledged
      Entity, (ii) the number of shares of capital stock or other equity interests
      of
      each Pledged Entity that are issued and outstanding as of the date hereof,
      and
      (iii) the percentage of the issued and outstanding shares of capital stock
      or
      other equity interests of each Pledged Entity held by Pledgor. Pledgor has
      the
      power to transfer the Pledged Collateral and is the record and beneficial owner
      of, and has good and marketable title to, the Pledged Shares, and such shares
      are and will remain free and clear of all Liens except the Liens and security
      interests in favor of Pledgee created by this Agreement;

     

    (b) except
      as
      set forth on Exhibit
      A,
      there
      are no outstanding options, warrants or other similar agreements with respect
      to
      the Pledged Shares or any of the other Pledged Collateral;

     

    
      
        
        

      

      
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    (c) this
      Agreement is the legal, valid and binding obligation of Pledgor, enforceable
      against Pledgor in accordance with its terms;

     

    (d) the
      Pledged Shares have been duly and validly authorized and issued, are fully
      paid
      and non-assessable (as applicable), and the Pledged Shares listed on
Exhibit
      A
      constitute all of the issued and outstanding capital stock or other equity
      interests of Pledged Entities;

     

    (e) no
      consent, approval or authorization of or designation or filing with any
      governmental or regulatory authority on the part of Pledgor is required in
      connection with the pledge and security interest granted under this
      Agreement;

     

    (f) the
      execution, delivery and performance of this Agreement will not violate any
      provision of any applicable law or regulation or of any order, judgment, writ,
      award or decree of any court, arbitrator or Governmental Authority, domestic
      or
      foreign, or of the articles or certificate of incorporation, bylaws or
      any other similar organizational documents of
      Pledgor or any Pledged Entity or of any securities issued by Pledgor or any
      Pledged Entity or of any mortgage, indenture, lease, contract, or other
      agreement, instrument or undertaking to which Pledgor or any Pledged Entity
      is a
      party or which purports to be binding upon Pledgor or any Pledged Entity or
      upon
      any of the assets of Pledgor or any Pledged Entity, and will not result in
      the
      creation or imposition of any Lien in any of the assets of Pledgor or any
      Pledged Entity, except as otherwise contemplated by this Agreement;

     

    (g) the
      pledge, assignment and delivery of the Pledged Shares and the other Pledged
      Collateral pursuant to this Agreement creates a valid first Lien on and
      perfected first priority security interest in such Pledged Shares and Pledged
      Collateral and the proceeds thereof in favor of Pledgee, subject to no prior
      Lien or to any agreement purporting to grant to any third party a security
      interest in the property or assets of Pledgor which would include the Pledged
      Shares or any other Pledged Collateral. Pledgor covenants and agrees that it
      will defend, for the benefit of Pledgee, Pledgee’s right, title and security
      interest in and to the Pledged Shares, the other Pledged Collateral and the
      proceeds thereof against the claims and demands of all other persons or
      entities; and

     

    (h) Pledgor
      (i) will not become a person whose property or interests in property are blocked
      or subject to blocking pursuant to Section 1 of Executive Order 13224 of
      September 23, 2001 Blocking Property and Prohibiting Transactions with Persons
      Who Commit, Threaten to Commit or Support Terrorism (66 Fed. Reg. 49079(2001),
      (ii) will not engage in any dealings or transactions prohibited by Section
      2 of
      such executive order, or (iii) will not otherwise become a person on the list
      of
      Specially Designated Nationals and Blocked Persons or subject to the limitations
      or prohibitions under any other Office of Foreign Asset Control regulation
      or
      executive order.

     

    5. [Reserved].

     

    6. Dividends,
      Distributions, Etc. If,
      while
      this Agreement is in effect, Pledgor shall become entitled to receive or shall
      receive any certificate (including, without limitation, any certificate
      representing a dividend or a distribution in connection with any
      reclassification, increase or reduction of capital, or issued in connection
      with
      any reorganization, merger or consolidation), or any options or rights, whether
      as an addition to, in substitution for, or in exchange for any of the Pledged
      Shares or otherwise, Pledgor agrees, in each case, to accept the same as
      Pledgee’s agent and to hold the same in trust for Pledgee, and to deliver the
      same promptly (but in any event within three days) to Pledgee in the exact
      form
      received, with the endorsement of Pledgor when necessary and/or with appropriate
      undated assignments separate from certificates or stock powers duly executed
      in
      blank (which assignments separate from certificates or stock powers may be
      filled in and completed at any time upon the occurrence of any Event of
      Default), to be held by Pledgee subject to the terms hereof, as additional
      Pledged Collateral. Pledgor shall promptly deliver to Pledgee (i) a Pledge
      Addendum with respect to such additional certificates, and (ii) any financing
      statements or amendments to financing statements as requested by Pledgee.
      Pledgor hereby authorizes Pledgee to attach each Pledge Addendum to this
      Agreement. In case any distribution of capital shall be made on or in respect
      of
      the Pledged Shares or any property shall be distributed upon or with respect
      to
      the Pledged Shares pursuant to the recapitalization or reclassification of
      the
      capital of the issuer thereof or pursuant to the reorganization thereof, the
      property so distributed shall be delivered to Pledgee to be held by it as
      additional Pledged Collateral. All sums of money and property so paid or
      distributed in respect of the Pledged Shares which are received by Pledgor
      shall, until paid or delivered to Pledgee, be held by Pledgor in trust as
      additional Pledged Collateral.

     

    
      
        
        

      

      
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    7. Voting
      Rights; Dividends; Certificates.

     

    (a) So
      long
      as no Event of Default has occurred and is continuing, Pledgor shall be entitled
      (subject to the other provisions hereof, including, without limitation,
Section
      10
      below)
      to exercise its voting and other consensual rights with respect to the Pledged
      Shares and otherwise exercise the incidents of ownership thereof in any manner
      not inconsistent with this Agreement or the Purchase Agreement and the other
      Transaction Documents. Pledgor hereby grants to Pledgee or its nominee, an
      irrevocable proxy to exercise all voting and corporate rights relating to the
      Pledged Shares in any instance, which proxy shall be effective, at the
      discretion of Pledgee, upon the occurrence and during the continuance of an
      Event of Default. Upon
      the
      request of Pledgee at any time, Pledgor agrees to deliver to Pledgee such
      further evidence of such irrevocable proxy or such further irrevocable proxies
      to vote the Pledged Shares as Pledgee may request.

     

    (b) Subject
      to any sale or other disposition by Pledgee of the Pledged Shares, any other
      Pledged Collateral or other property pursuant to this Agreement, upon the
      indefeasible full payment in cash, satisfaction and termination of all of the
      Liabilities and the termination of this Agreement pursuant to Section
      13
      hereof
      and of the Liens and security interests hereby granted, the Pledged Shares,
      the
      other Pledged Collateral and any other property then held as part of the Pledged
      Collateral in accordance with the provisions of this Agreement shall be promptly
      returned to Pledgor or to such other persons or entities as shall be legally
      entitled thereto.

     

    8. Rights
      of Pledgee. Pledgee
      shall maintain the custody, safekeeping and physical preservation of the Pledged
      Shares in the same manner as Pledgee deals with similar property for its own
      account. Pledgee
      shall not be liable for failure to collect or realize upon the Liabilities
      or
      any collateral security or guaranty therefor, or any part thereof, or for any
      delay in so doing, nor shall Pledgee be under any obligation to take any action
      whatsoever with regard thereto. Any or all of the Pledged Shares held by Pledgee
      hereunder may, if an Event of Default has occurred and is continuing, without
      notice, be registered in the name of Pledgee or its nominee, and Pledgee or
      its
      nominee may thereafter without notice exercise all voting and corporate rights
      at any meeting with respect to any Pledged Entity and exercise any and all
      rights of conversion, exchange, subscription or any other rights, privileges
      or
      options pertaining to any of the Pledged Shares as if it were the absolute
      owner
      thereof, including, without limitation, the right to vote in favor of, and
      to
      exchange at its discretion any and all of the Pledged Shares upon, the merger,
      consolidation, reorganization, recapitalization or other readjustment with
      respect to any Pledged Entity or upon the exercise by any Pledged Entity,
      Pledgor or Pledgee of any right, privilege or option pertaining to any of the
      Pledged Shares, and in connection therewith, to deposit and deliver any and
      all
      of the Pledged Shares with any committee, depository, transfer agent, registrar
      or other designated agency upon such terms and conditions as Pledgee may
      reasonably determine, all without liability except to account for property
      actually received by Pledgee, but Pledgee shall have no duty to exercise any
      of
      the aforesaid rights, privileges or options and shall not be responsible for
      any
      failure to do so or delay in so doing.

     

    
      
        
        

      

      
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    9. Remedies. Upon
      the
      occurrence and during the continuance of an Event of Default, Pledgee may
      exercise in respect of the Pledged Collateral, in addition to other rights
      and
      remedies provided for herein or otherwise available to it, all the rights and
      remedies of a secured party under the Uniform Commercial Code (“UCC”)
      in
      effect in the State of New York from time to time, whether or not the UCC
      applies to the affected Pledged Collateral (or the Uniform Commercial Code
      as in
      effect in any other relevant jurisdiction). Pledgee also, without demand of
      performance or other demand, advertisement or notice of any kind (except the
      notice specified below of time and place of public or private sale) to or upon
      Pledgor or any other person or entity (all and each of which demands,
      advertisements and/or notices are hereby expressly waived), may forthwith
      collect, receive, appropriate and realize upon the Pledged Collateral, or any
      part thereof, and/or may forthwith date and otherwise fill in the blanks on
      any
      assignments separate from certificates or stock power or otherwise sell, assign,
      give an option or options to purchase, contract to sell or otherwise dispose
      of
      and deliver said Pledged Collateral, or any part thereof, in one or more
      portions at one or more public or private sales or dispositions, at any exchange
      or broker’s board or at any of Pledgee’s offices or elsewhere upon such terms
      and conditions as Pledgee may deem advisable and at such prices as it may deem
      best, for any combination of cash and/or securities or other property or on
      credit or for future delivery without assumption of any credit risk, with the
      right to Pledgee upon any such sale, public or private, to purchase the whole
      or
      any part of said Pledged Collateral so sold, free of any right or equity of
      redemption in Pledgor, which right or equity is hereby expressly waived or
      released. Pledgee shall apply the net proceeds of any such collection, recovery,
      receipt, appropriation, realization, sale or disposition, after deducting all
      costs and expenses of every kind incurred therein or incidental to the
      safekeeping of any and all of the Pledged Collateral or in any way relating
      to
      the rights of Pledgee hereunder, including attorneys’ fees and legal expenses,
      to the payment, in whole or in part, of the Liabilities, in such order as
      Pledgee may elect. Pledgor shall remain liable for any deficiency remaining
      unpaid after such application. Only after so paying over such net proceeds
      and
      after the payment by Pledgee of any other amount required by any provision
      of
      law, including, without limitation, Section 9-608 of the UCC, need Pledgee
      account for the surplus, if any, to Pledgor. Pledgor agrees that Pledgee will
      give reasonable notice (such reasonable notice to be determined by Pledgee
      in
      its sole and absolute discretion) of the time and place of any public sale
      or of
      the time after which a private sale or other intended disposition is to take
      place. No notification need be given to Pledgor if it has signed after default
      a
      statement renouncing or modifying any right to notification of sale or other
      intended disposition. The rights, remedies and powers conferred by this
Section
      9
      are in
      addition to, and not in substitution for, any other rights, remedies or powers
      that Pledgee may have under any Transaction Document, at law, in equity or
      by or
      under the UCC or any other statute or agreement. Pledgee may proceed by way
      of
      any action, suit or other proceeding at law or in equity and no right, remedy
      or
      power of Pledgee will be exclusive of or dependent on any other. Pledgee may
      exercise any of its rights, remedies or powers separately or in combination
      and
      at any time.

     

    
      
        
        

      

      
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    10. No
      Disposition, Etc. Pledgor
      agrees that it will not sell, assign, transfer, exchange, or otherwise dispose
      of, or grant any option with respect to, the Pledged Shares or any other Pledged
      Collateral, nor will Pledgor create, incur or permit to exist any Lien with
      respect to any of the Pledged Shares or any other Pledged Collateral, or any
      interest therein, or any proceeds thereof, except for the Lien and security
      interest of Pledgee provided for by this Agreement and the Security
      Agreement.

     

    11. Sale
      of Pledged Shares.

     

    (a) Pledgor
      recognizes that Pledgee may be unable to effect a public sale or disposition
      (including, without limitation, any disposition in connection with a merger
      of a
      Pledged Entity) of any or all the Pledged Shares by reason of certain
      prohibitions contained in the Securities Act of 1933, as amended (the
“1933
      Act”),
      and
      applicable state securities laws, but may be compelled to resort to one or
      more
      private sales or dispositions thereof to a restricted group of purchasers who
      will be obliged to agree, among other things, to acquire such securities for
      their own account, for investment and not with a view to the distribution or
      resale thereof. Pledgor acknowledges and agrees that any such private sale
      or
      disposition may result in prices and other terms (including the terms of any
      securities or other property received in connection therewith) less favorable
      to
      the seller than if such sale or disposition were a public sale or disposition
      and, notwithstanding such circumstances, agrees that any such private sale
      or
      disposition shall be deemed to be reasonable and affected in a commercially
      reasonable manner. Pledgee shall be under no obligation to delay a sale or
      disposition of any of the Pledged Shares in order to permit Pledgor or a Pledged
      Entity to register such securities for public sale under the 1933 Act, or under
      applicable state securities laws, even if Pledgor or a Pledged Entity would
      agree to do so.

     

    (b) Pledgor
      further agrees to do or cause to be done all such other acts and things as
      may
      be reasonably necessary to make such sales or dispositions of the Pledged Shares
      valid and binding and in compliance with any and all applicable laws,
      regulations, orders, writs, injunctions, decrees or awards of any and all
      courts, arbitrators or governmental instrumentalities, domestic or foreign,
      having jurisdiction over any such sales or dispositions, all at Pledgor's
      expense. Pledgor further agrees that a breach of any of the covenants contained
      in Sections
      6,
      7(a),
      10,
      11
      and
26
      will
      cause irreparable injury to Pledgee and that Pledgee has no adequate remedy
      at
      law in respect of such breach and, as a consequence, agrees, without limiting
      the right of Pledgee to seek and obtain specific performance of other
      obligations of Pledgor contained in this Agreement, that each and every covenant
      referenced above shall be specifically enforceable against Pledgor, and Pledgor
      hereby waives and agrees not to assert any defenses against an action for
      specific performance of such covenants.

     

    
      
        
        

      

      
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    (c) Pledgor
      further agrees to indemnify and hold harmless the Buyers, Pledgee and their
      respective successors and assigns, their respective officers, directors,
      employees, attorneys and agents, and any person or entity in control of any
      thereof, from and against any loss, liability, claim, damage and expense,
      including, without limitation, legal fees and expenses (in this paragraph
      collectively called the “Indemnified
      Liabilities”),
      under
      federal and state securities laws or otherwise insofar as such Indemnified
      Liability (i) arises out of or is based upon any untrue statement or alleged
      untrue statement of a material fact contained in any registration statement,
      prospectus or offering memorandum or in any preliminary prospectus or
      preliminary offering memorandum or in any amendment or supplement to any thereof
      or in any other writing prepared in connection with the offer, sale or resale
      of
      all or any portion of the Pledged Collateral unless such untrue statement of
      material fact was provided by Pledgee, in writing, specifically for inclusion
      therein, or (ii) arises out of or is based upon any omission or alleged omission
      to state therein a material fact required to be stated or necessary to make
      the
      statements therein not misleading, such indemnification to remain operative
      regardless of any investigation made by or on behalf of Pledgee or any successor
      thereof, or any person or entity in control of any thereof. In connection with
      a
      public sale or other distribution, Pledgor will provide customary
      indemnification to any underwriters, their successors and assigns, officers
      and
      directors and each person or entity who controls any such underwriter (within
      the meaning of the 1933 Act). If and to the extent that the foregoing
      undertakings in this paragraph may be unenforceable for any reason, Pledgor
      agrees to make the maximum contribution to the payment and satisfaction of
      each
      of the Indemnified Liabilities which is permissible under applicable law. The
      obligations of Pledgor under this paragraph
      (c)
      shall
      survive any termination of this Agreement.

     

    (d) Pledgor
      further agrees to waive any and all rights of subrogation it may have against
      a
      Pledged Entity upon the sale or disposition of all or any portion of the Pledged
      Collateral by Pledgee pursuant to the terms of this Agreement until the
      termination of this Agreement in accordance with Section
      13
      below.

     

    12. No
      Waiver; Cumulative Remedies.
      Pledgee
      shall not by any act, delay, omission or otherwise be deemed to have waived
      any
      of its remedies hereunder, and no waiver by Pledgee shall be valid unless in
      writing and signed by Pledgee, and then only to the extent therein set forth.
      A
      waiver by Pledgee of any right or remedy hereunder on any one occasion shall
      not
      be construed as a bar to any right or remedy which Pledgee would otherwise
      have
      on any further occasion. No course of dealing between Pledgor and Pledgee and
      no
      failure to exercise, nor any delay in exercising on the part of Pledgee or
      the
      Buyers of, any right, power or privilege hereunder or under the other
      Transaction Documents shall impair such right or remedy or operate as a waiver
      thereof; nor shall any single or partial exercise of any right, power or
      privilege hereunder preclude any other or further exercise thereof or the
      exercise of any other right, power or privilege. The rights and remedies herein
      provided are cumulative and may be exercised singly or concurrently, and are
      not
      exclusive of any rights or remedies provided by law or in the Purchase
      Agreement.

     

    13. Termination. (a) This
      Agreement and the Liens and security interests granted hereunder shall
      terminate, (b) Pledgee shall promptly return any Pledged Collateral then held
      by
      Pledgee in accordance with the provisions of this Agreement to Pledgor, and
      (c)
      Pledgee shall, at the expense of Pledgor, promptly after Pledgee’s receipt of
      Pledgor’s written request, execute and deliver to Pledgor such documents as
      Pledgor shall reasonably request in writing, to evidence such termination
      described in clause (a) herein and the return of such Pledged Collateral to
      Pledgor, upon the termination of the Notes and the full and complete performance
      and indefeasible satisfaction of all of the Liabilities (including, without
      limitation, the indefeasible payment in full in cash of all such Liabilities)
      and with respect to which claims have been asserted by Pledgee and/or
      Buyers.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    14. Possession
      of Pledged Collateral. Beyond
      the exercise of reasonable care to assure the safe custody of the Pledged Shares
      in the physical possession of Pledgee pursuant hereto, neither Pledgee, nor
      any
      nominee of Pledgee, shall have any duty or liability to collect any sums due
      in
      respect thereof or to protect, preserve or exercise any rights pertaining
      thereto (including any duty to ascertain or take action with respect to calls,
      conversions, exchanges, maturities, tenders or other matters relating to the
      Pledged Collateral and any duty to take any necessary steps to preserve rights
      against any parties with respect to the Pledged Collateral), and shall be
      relieved of all responsibility for the Pledged Collateral upon surrendering
      them
      to Pledgor. Pledgor assumes the responsibility for being and keeping itself
      informed of the financial condition of a Pledged Entity and of all other
      circumstances bearing upon the risk of non-payment of the Liabilities, and
      Pledgee shall have no duty to advise Pledgor of information known to Pledgee
      regarding such condition or any such circumstance. Pledgee shall have no duty
      to
      inquire into the powers of a Pledged Entity or its officers, directors,
      managers, members, partners or agents thereof acting or purporting to act on
      its
      behalf. 

     

    15. Taxes
      and Expenses.
      Pledgor
      will upon demand pay to Pledgee, (a) any taxes (excluding income taxes,
      franchise taxes or other taxes levied on gross earnings, profits or the like
      of
      Pledgee) payable or ruled payable by any Governmental Authority in respect
      of
      this Agreement, together with interest and penalties, if any, and (b) all
      expenses, including the fees and expenses of counsel for Pledgee and of any
      experts and agents that Pledgee may incur in connection with (i) the
      administration, modification or amendment of this Agreement, (ii) the custody
      or
      preservation of, or the sale of, collection from, or other realization upon,
      any
      of the Pledged Collateral, (iii) the exercise or enforcement of any of the
      rights of Pledgee hereunder, or (iv) the failure of Pledgor to perform or
      observe any of the provisions hereof.

     

    16. Pledgee
      Appointed Attorney-In-Fact.
      Pledgor
      hereby irrevocably appoints Pledgee as Pledgor’s attorney-in-fact, with full
      authority in the place and stead of Pledgor and in the name of Pledgor or
      otherwise, from time to time in Pledgee’s discretion, to take any action and to
      execute any instrument that Pledgee deems reasonably necessary or advisable
      to
      accomplish the purposes of this Agreement, including, without limitation, (i)
      to
      receive, endorse and collect all instruments made payable to Pledgor
      representing any dividend, interest payment or other distribution in respect
      of
      the Pledged Collateral or any part thereof and to give full discharge for the
      same, when and to the extent permitted by this Agreement and (ii) to complete
      any assignment separate from certificate delivered hereunder; provided that
      the
      power of attorney granted hereunder shall only be exercised by Pledgee after
      the
      occurrence and during the continuance of an Event of Default. The power of
      attorney granted hereunder is a power coupled with an interest and shall be
      irrevocable until the Liabilities are indefeasibly paid in full in cash and
      this
      Agreement is terminated in accordance with Section
      13
      hereof

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    17. Governing
      Law; Jurisdiction; Jury Trial.
      All
      questions concerning the construction, validity, enforcement and interpretation
      of this Agreement shall be governed by the internal laws of the State of New
      York, without giving effect to any choice of law or conflict of law provision
      or
      rule (whether of the State of New York or any other jurisdiction) that would
      cause the application of the laws of any jurisdiction other than the State
      of
      New York. Each party hereby irrevocably submits to the non-exclusive
      jurisdiction of the state and federal courts sitting in the City of New York,
      borough of Manhattan, for the adjudication of any dispute hereunder or in
      connection herewith or with any transaction contemplated hereby or discussed
      herein, and hereby irrevocably waives, and agrees not to assert in any suit,
      action or proceeding, any claim that it is not personally subject to the
      jurisdiction of any such court, that such suit, action or proceeding is brought
      in an inconvenient forum or that the venue of such suit, action or proceeding
      is
      improper. Each party hereby irrevocably waives personal service of process
      and
      consents to process being served in any such suit, action or proceeding by
      mailing a copy thereof to such party at the address for such notices to it
      under
      this Agreement and agrees that such service shall constitute good and sufficient
      service of process and notice thereof. Nothing contained herein shall be deemed
      to limit in any way any right to serve process in any manner permitted by law.
      Notwithstanding the foregoing, the Pledgee may enforce its rights and remedies
      in any other jurisdiction applicable to the Pledged Collateral. EACH PARTY
      HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO REQUEST,
      A
      JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION
      HEREWITH OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED
      HEREBY.

     

    18. Counterparts.
      This
      Agreement may be executed in two or more identical counterparts, all of which
      shall be considered one and the same agreement and shall become effective when
      counterparts have been signed by each party and delivered to the other party;
      provided that a facsimile, .pdf or similar electronically transmitted signature
      shall be considered due execution and shall be binding upon the signatory
      thereto with the same force and effect as if the signature were an original
      signature.

     

    19. Headings.
      The
      headings of this Agreement are for convenience of reference and shall not form
      part of, or affect the interpretation of, this Agreement.

     

    20. Severability.
      If any
      provision of this Agreement shall be invalid or unenforceable in any
      jurisdiction, such invalidity or unenforceability shall not affect the validity
      or enforceability of the remainder of this Agreement in that jurisdiction or
      the
      validity or enforceability of any provision of this Agreement in any other
      jurisdiction.

     

    21. Entire
      Agreement; Amendments.
      This
      Agreement supersedes all other prior oral or written agreements between Pledgor,
      Pledgee, the Buyers and their affiliates and persons acting on their behalf
      with
      respect to the matters discussed herein, and this Agreement and the Transaction
      Documents and instruments referenced herein and therein contain the entire
      understanding of the parties with respect to the matters covered herein and
      therein.

     

    22. Notices.
      All
      notices, approvals, requests, demands and other communications hereunder shall
      be delivered or made in the manner set forth in, and shall be effective in
      accordance with the terms of, the Purchase Agreement, in the case of
      communications to the Collateral Agent, directed to the notice address set
      forth
      below Collateral Agent’s signature hereto.

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    23. Successors
      and Assigns.
      This
      Agreement shall be binding upon and inure to the benefit of the parties and
      their respective successors and assigns, including any purchasers of the Notes.
      Pledgor shall not assign this Agreement or any rights or obligations hereunder
      without the prior written consent of Pledgee. Pledgee may assign its rights
      hereunder without the consent of Pledgor, in which event such assignee shall
      be
      deemed to be Pledgee hereunder with respect to such assigned
      rights.

     

    24. No
      Third Party Beneficiaries.
      This
      Agreement is intended for the benefit of the parties hereto and their respective
      successors and permitted assigns, and is not for the benefit of, nor may any
      provision hereof be enforced by, any other person or entity.

     

    25. Survival.
      All
      representations, warranties, covenants and agreements of Pledgor and Pledgee
      shall survive the execution and delivery of this Agreement.

     

    26. Further
      Assurances.
      Pledgor
      agrees that at any time and from time to time upon the written request of
      Pledgee, Pledgor will execute and deliver all assignments separate from
      certificates or stock powers, financing statements and such further documents
      and do such further acts and things as Pledgee may reasonably request consistent
      with the provisions hereof in order to carry out the intent and accomplish
      the
      purpose of this Agreement and the consummation of the transactions contemplated
      hereby.

     

    27. No
      Strict Construction.
      The
      language used in this Agreement will be deemed to be the language chosen by
      the
      parties to express their mutual intent, and no rules of strict construction
      will
      be applied against any party.

     

    28. Pledgee
      Authorized.
      Pledgor
      hereby authorizes Pledgee to file one or more financing or continuation
      statements and amendments thereto (or similar documents required by any laws
      of
      any applicable jurisdiction) relating to all or any part of the Pledged Shares
      or other Pledged Collateral without the signature of Pledgor.

     

    29. Pledgee
      Acknowledgement.
      Pledgor
      acknowledges receipt of an executed copy of this Agreement. The Pledgor waives
      the right to receive any amount that it may now or hereafter be entitled to
      receive (whether by way of damages, fine, penalty, or otherwise) by reason
      of
      the failure of the Pledgee to deliver to the Pledgor a copy of any financing
      statement or any statement issued by any registry that confirms registration
      of
      a financing statement relating to this Agreement.

     

    30. Collateral
      Agent.
      The
      terms and provisions of Section
      5.11
      of the
      Security Agreement which set forth the appointment of the Collateral Agent
      and
      the indemnifications to which the Collateral Agent is entitled are hereby
      incorporated by reference herein as if fully set forth herein.

     

    [Signature
      Page Follows]

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF, the parties hereto have caused this Pledge Agreement to be
      duly
      executed and delivered by their duly authorized officers on the date first
      above
      written.

    

    

    PLEDGOR:

    

    GOTO
      COLLEGE HOLDINGS, INC.,
      a
      Delaware corporation

    

    By:
      /s/
      Vishal Garg

    Name: Vishal
      Garg

    Title: President

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    PLEDGEE:

    

    VIKING
      ASSET MANAGEMENT L.L.C.,
      a 

    California
      limited liability company, in its capacity 

    as
      collateral agent for the Buyers

    

    By:
      /s/
      S.
      Michael Rudolph

    Name: S.
      Michael Rudolph

    Title: Chief
      Financial Officer

    

    

    Notice
      Address:

    

    Viking
      Asset Management, LLC

    600
      Montgomery Street, 44th
      Floor

    San
      Francisco, California 94111

    Attention:
      Michael Rudolph

    Telecopy:
      (415) 981-5301

    

    -
      and
      -

    

    Summerline
      Asset Management, LLC

    70
      West
      Red Oak Lane, 4th Floor

    White
      Plains, New York 10604

    Attention:
      Robert J. Brantman

    Telecopy:
      (914) 697-4767

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    ACKNOWLEDGEMENT

    

    Each
      of
      the undersigned hereby (i) acknowledges receipt of a copy of the foregoing
      Pledge Agreement, (ii) waives any rights or requirement at any time hereafter
      to
      receive a copy of such Pledge Agreement in connection with the registration
      of
      any Pledged Shares (as defined therein) in the name of Pledgee or its nominee
      or
      the exercise of voting rights by Pledgee and (iii) agrees promptly to note
      on
      its books and records the grant of the security interest in the stock or other
      equity interests of the undersigned as provided in such Pledge Agreement.

    

    Dated:
      November 20, 2008

    

    EMBARK
      CORP.,
      a
      Delaware corporation

    

    By:
      /s/
      Vishal Garg

    Name: Vishal
      Garg

    Title: Chief
      Executive Officer

    

    EMBARK
      ONLINE, INC.,
      a
      Delaware corporation

    

    By:
      /s/
      Vishal Garg

    Name: Vishal
      Garg

    Title: Chief
      Executive Officer

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      A

    to
      Pledge Agreement

    

    

    DESCRIPTION
      OF CAPITAL STOCK OR EQUITY INTERESTS OF PLEDGE ENTITIES

    

    

    
      	
              Name
                of

              Pledge
                Entities

            	
              Class
                of Stock 

              or
                Other Equity 

              Interests

            	
              Authorized
                

              No.
                of

              Shares
                or 

              Units

            	
              Issued
                and 

              Outstanding
                

              Shares
                or 

              Units

            	
              Percentage
                of 

              Shares
                or Units

              Held
                by Pledgor

            
	
              Embark
                Corp.

            	 	 	 	
              100%

            
	
              Embark
                Online, Inc.

            	 	 	 	
              100%

            

    

    

    

    DESCRIPTION
      OF PLEDGED SHARES OR UNITS

    

    
      	
              Name
                of

              Pledge
                Entity

            	
              Class
                of Stock or Other 

              Equity
                Interests

            	
              Stock
                or Unit 

              Certificate
                No.

            	
              No.
                of Shares or Units

              Represented
                by

              Certificate

            
	
              Embark
                Corp.

            	 	 	 
	
              Embark
                Online, Inc.

            	 	 	 

    

    

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    EXHIBIT
      B

    to
      Pledge Agreement

    

    Addendum
      to Pledge Agreement

    

    The
      undersigned, being the Pledgor pursuant to that certain Pledge Agreement dated
      as of November 20, 2008 (as amended, restated, supplemented or otherwise
      modified from time to time, the “Pledge
      Agreement”)
      in
      favor of Viking Asset Management, a California limited liability company, as
      Collateral Agent (“Pledgee”),
      by
      executing this Addendum, hereby acknowledges that Pledgor has acquired and
      legally and beneficially owns all of the issued and outstanding [
      shares of capital stock ]
      of
[__________________,
      a _______ corporation ]
      (“Company”)
      described below (the “Shares”).
      Pledgor hereby agrees and acknowledges that the Shares shall be deemed Pledged
      Shares pursuant to the Pledge Agreement. Pledgor hereby represents and warrants
      to Pledgee that (i) all of the [
      capital stock ]
      of the
      Company now owned by Pledgor is presently represented by the certificates listed
      below, which certificates, with undated assignments separate from certificate
      or
      stock powers duly executed in blank by Pledgor, are being delivered to Pledgee,
      simultaneously herewith (or have been previously delivered to Pledgee), and
      (ii)
      after giving effect to this addendum, the representations and warranties set
      forth in Section 4 of the Pledge Agreement are true, complete and correct as
      of
      the date hereof.

    

    Pledged
      Shares

    

    

    
      	
              Name
                of

              the
                Pledged Entity

            	
              Class
                of Equity Interest

            	
              Certificate
                No.

            	
              No.
                of Shares

            
	 	 	 	 
	 	 	 	 

    

     

    

    IN
      WITNESS WHEREOF, Pledgor has executed this Addendum this _____ day of
      ______.

     

    PLEDGOR:

     

    GOTO
      COLLEGE HOLDINGS, INC.,
      a
      Delaware corporation

    

    By:________________________________

    Name: ____________________________

    Title: ____________________________

    
      
        
        

      

      
        3Unassociated Document

    EXECUTION
      COPY

    

    SECURITY
      AGREEMENT

     

    THIS
      SECURITY AGREEMENT (as amended, restated, supplemented or otherwise modified
      from time to time, this “Agreement”)
      dated
      as of November 20, 2008 among GOTO
      COLLEGE HOLDINGS INC., a
      Delaware corporation (the
      “Goto
      College”),
      EMBARK
      CORP.,
      a
      Delaware corporation (“Embark”),
      EMBARK
      ONLINE, INC.,
      a
      Delaware corporation (“Embark
      Online”),
      IEMPOWER,
      INC., a
      Delaware corporation (“iempower”),
      MRU
      ORIGINATIONS, INC.,
      a
      Delaware corporation (“MRU
      Originations”),
      MRU
      UNIVERSAL GUARANTY AGENCY, INC.,
      a
      Delaware corporation
      (“MRU Universal”,
      together with Goto College, Embark, Embark Online, iempower, MRU Originations
      and each
      other Person who becomes a party to this Agreement by execution of a joinder
      in
      the form of Exhibit
      A
      attached
      hereto, is hereinafter sometimes referred to individually as a “Debtor”
and,
      collectively, as the “Debtors”)
      and VIKING
      ASSET MANAGEMENT, LLC,
      a
      California limited liability company, in
      its
      capacity as Collateral Agent (as set forth in Section
      5.11
      hereof,
      together with its successors and assigns in such capacity, the “Secured
      Party”)
      for
      the benefit of itself and each of the Buyers (as hereinafter defined).

     

    W
      I T N E
      S S E T H:

     

    WHEREAS,
      on
      October 19, 2007, Longview Marquis Master Fund, L.P., a British Virgin Islands
      limited partnership (including as successor to The Longview Fund, L.P., a
      California limited partnership, under the Purchase Agreement (as defined below),
      “Marquis”;
      Marquis, together with its successors and assigns and each other holder of
      a
      Note (as defined below) and their respective successors and assigns,
      individually and collectively, the “Buyers”)
      purchased from MRU Holdings, Inc., a Delaware corporation (the “Company”),
      those certain senior secured notes, each dated October 19, 2007, in an original
      aggregate principal amount of $11,200,000 (such
      notes, together with any promissory notes or other securities issued in exchange
      or substitution therefor or replacement thereof, and as any of the same may
      be
      amended, supplemented, restated or modified and in effect from time to time,
      the
“Notes”);

     

    WHEREAS,
      the Notes were acquired by Buyers and Buyers made certain financial
      accommodations to the Company pursuant to a Securities Purchase Agreement dated
      as of October 19, 2007 among the Company and the Buyers (as the same may be
      amended, restated, supplemented or otherwise modified from time to time, the
      “Purchase
      Agreement”);

    

    WHEREAS,
      Company, Debtors, Buyers and Secured Party have entered into that certain Third
      Amendment of even date herewith (as the same may be amended, restated,
      supplemented or otherwise modified and in effect from time to time, the
“Third
      Amendment”),
      pursuant to which the Company and the Buyers have agreed to amend certain
      provisions of the Purchase Agreement; 

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    WHEREAS,
      each Debtor from time to time party hereto is a direct or indirect subsidiary
      of
      the Company and, as such, will derive substantial benefit and advantage from
      the
      continued financial accommodations to the Company set forth in the Purchase
      Agreement and the Notes, and it will be to each such Debtor’s direct interest
      and economic benefit to assist the Company in continuing to procure said
      financial accommodations from Buyers; 

     

    WHEREAS,
      each Debtor guaranteed the Liabilities (as hereinafter defined) of the Company
      pursuant to the terms of that certain Guaranty dated as of October 19, 2007
      (as
      the same may be amended, restated, supplemented or otherwise modified and in
      effect from time to time, the “Guaranty”)
      by
      each such Debtor in favor of Secured Party (on its behalf and on behalf of
      the
      Buyers); and

     

    WHEREAS,
      to induce the Buyers to continue to make financial accommodations to the Company
      under the Purchase Agreement and to enter into the Third Amendment, each Debtor
      has agreed to pledge and grant a security interest in all of its right, title
      and interest in and to the Collateral (as hereinafter defined) as security
      for
      its Liabilities for the benefit of the Secured Party, the Buyers and their
      respective successors and assigns.

     

    NOW,
      THEREFORE, in consideration of the foregoing and for other good and valuable
      consideration, the receipt and sufficiency of which are hereby acknowledged,
      the
      parties hereto agree as follows:

     

    Section
      1. Definitions.
      Capitalized terms used herein without definition and defined in the Purchase
      Agreement are used herein as defined therein. In addition, as used
      herein:

     

    “Accounts”
means
      any “account,” as such term is defined in the Uniform Commercial Code, and, in
      any event, shall include, without limitation, “supporting obligations” as
      defined in the Uniform Commercial Code.

     

    “As-extracted
      Collateral”
means
      any “as-extracted collateral,” as such term is defined in the Uniform Commercial
      Code.

     

    “Chattel
      Paper”
means
      any “chattel paper,” as such term is defined in the Uniform Commercial
      Code.

     

    “Collateral”
has
      the
      meaning ascribed thereto in Section
      3
      hereof.

     

    “Commercial
      Tort Claims”
means
      “commercial tort claims”, as such term is defined in the Uniform Commercial
      Code.

     

    “Contracts”
means
      all contracts, undertakings, or other agreements (other than rights evidenced
      by
      Chattel Paper, Documents or Instruments) in or under which a Debtor may now
      or
      hereafter have any right, title or interest, including, without limitation,
      with
      respect to an Account, any agreement relating to the terms of payment or the
      terms of performance thereof.

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    “Copyrights”
means
      any copyrights, rights and interests in copyrights, works protectable by
      copyrights, copyright registrations and copyright applications, including,
      without limitation, the copyright registrations and applications listed on
      Schedule
      III
      attached
      hereto (if any), and all renewals of any of the foregoing, all income,
      royalties, damages and payments now and hereafter due and/or payable under
      or
      with respect to any of the foregoing, including, without limitation, damages
      and
      payments for past, present and future infringements of any of the foregoing
      and
      the right to sue for past, present and future infringements of any of the
      foregoing. 

     

    “Deposit
      Accounts”
means
      all “deposit accounts” as such term is defined in the Uniform Commercial Code,
      now or hereafter held in the name of a Debtor.

     

    “Documents”
means
      any “documents,” as such term is defined in the Uniform Commercial Code, and
      shall include, without limitation, all documents of title (as defined in the
      Uniform Commercial Code), bills of lading or other receipts evidencing or
      representing Inventory or Equipment.

     

    “Equipment”
means
      any “equipment,” as such term is defined in the Uniform Commercial Code and, in
      any event, shall include, Motor Vehicles.

     

    “Event
      of Default”
has
      the
      meaning set forth in the Notes. 

     

    “General
      Intangibles”
means
      any “general intangibles,” as such term is defined in the Uniform Commercial
      Code, and, in any event, shall include, without limitation, all right, title
      and
      interest in or under any Contract, models, drawings, materials and records,
      claims, literary rights, goodwill, rights of performance, Copyrights,
      Trademarks, Patents, warranties, rights under insurance policies and rights
      of
      indemnification.

     

    “Goods”
means
      any “goods”, as such term is defined in the Uniform Commercial Code, including,
      without limitation, fixtures and embedded Software to the extent included in
      “goods” as defined in the Uniform Commercial Code.

     

    “Governmental
      Authority”
means
      the government of the United States of America or any other nation, or any
      political subdivision thereof, whether state or local, or any agency, authority,
      instrumentality, regulatory body, court, central bank or other entity exercising
      executive, legislative, judicial, taxing, regulatory or administration powers
      or
      functions of or pertaining to government over any Debtor or any of its
      Subsidiaries, or any of their respective properties, assets or
      undertakings.

     

    “Instruments”
means
      any “instrument,” as such term is defined in the Uniform Commercial Code, and
      shall include, without limitation, promissory notes, drafts, bills of exchange,
      trade acceptances, letters of credit, letter of credit rights (as defined in
      the
      Uniform Commercial Code), and Chattel Paper.

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    “Inventory”
means
      any “inventory,” as such term is defined in the Uniform Commercial
      Code.

     

    “Investment
      Property”
means
      any “investment property”, as such term is defined in the Uniform Commercial
      Code.

     

    “Liabilities”
means
      all obligations, liabilities and indebtedness of every nature of Debtors from
      time to time owed or owing under or in respect of this Agreement, the Guaranty
      and any of the other Security Documents, as the case may be, including, without
      limitation, the principal amount of all debts, claims and indebtedness, accrued
      and unpaid interest and all fees, costs and expenses, whether primary,
      secondary, direct, contingent, fixed or otherwise, heretofore, now and/or from
      time to time hereafter owing, due or payable whether before or after the filing
      of a bankruptcy, insolvency or similar proceeding under applicable federal,
      state, foreign or other law and whether or not an allowed claim in any such
      proceeding.

     

    “Lien”
has
      the
      meaning set forth in the Purchase Agreement.

     

    “Motor
      Vehicles”
means
      motor vehicles, tractors, trailers and other like property, whether or not
      the
      title thereto is governed by a certificate of title or ownership.

     

    “Patents”
means
      any patents and patent applications, including, without limitation, the
      inventions and improvements described and claimed therein, all patentable
      inventions and those patents and patent applications listed on Schedule IV
      attached
      hereto (if any), and the reissues, divisions, continuations, renewals,
      extensions and continuations-in-part of any of the foregoing, and all income,
      royalties, damages and payments now or hereafter due and/or payable under or
      with respect to any of the foregoing, including, without limitation, damages
      and
      payments for past, present and future infringements of any of the foregoing
      and
      the right to sue for past, present and future infringements of any of the
      foregoing.

     

    “Permitted
      Lien”
has
      the
      meaning set forth in the Purchase Agreement.

     

    “Proceeds”
means
      “proceeds,” as such term is defined in the Uniform Commercial Code and, in any
      event, includes, without limitation, (a) any and all proceeds of any insurance,
      indemnity, warranty or guaranty payable with respect to any of the Collateral,
      (b) any and all payments (in any form whatsoever) made or due and payable from
      time to time in connection with any requisition, confiscation, condemnation,
      seizure or forfeiture of all or any part of the Collateral by any governmental
      body, authority, bureau or agency (or any person acting under color of
      governmental authority), and (c) any and all other amounts from time to time
      paid or payable under, in respect of or in connection with any of the
      Collateral.

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    “Representative”
means
      any Person acting as agent, representative or trustee on behalf of the Secured
      Party from time to time.

     

    “Requisite
      Buyers”
means
      buyers having more than 66.67% of the sum of the aggregate outstanding principal
      balance of the Notes. 

     

    “Software”
means
      all “software” as such term is defined in the Uniform Commercial Code, now owned
      or hereafter acquired by a Debtor, other than software embedded in any category
      of Goods, including, without limitation, all computer programs and all
      supporting information provided in connection with a transaction related to
      any
      program.

     

    “Trademarks”
means
      any trademarks, trade names, corporate names, company names, business names,
      fictitious business names, trade styles, service marks, logos, other business
      identifiers, prints and labels on which any of the foregoing have appeared
      or
      appear, all registrations and recordings thereof, and all applications in
      connection therewith, including, without limitation, the trademarks and
      applications listed in Schedule
      V
      attached
      hereto (if any) and renewals thereof, and all income, royalties, damages and
      payments now or hereafter due and/or payable under or with respect to any of
      the
      foregoing, including, without limitation, damages and payments for past, present
      and future infringements of any of the foregoing and the right to sue for past,
      present and future infringements of any of the foregoing.

     

    “Uniform
      Commercial Code”
means
      the Uniform Commercial Code as in effect from time to time in the State of
      New
      York; provided,
      that to the extent that the Uniform Commercial Code is used to define any term
      herein and such term is defined differently in different Articles or Divisions
      of the Uniform Commercial Code, the definition of such term contained in Article
      or Division 9 shall govern.

     

    Section
      2. Representations,
      Warranties and Covenants of Debtors.
      Each
      Debtor represents and warrants to, and covenants with, the Secured Party as
      follows:

     

    (a) Such
      Debtor has rights in and the power to transfer the Collateral in which it
      purports to grant a security interest pursuant to Section
      3
      hereof
      (subject, with respect to after acquired Collateral, to such Debtor acquiring
      the same) and no Lien other than Permitted Liens and, until the actions
      described in Section 5(c) of the Third Amendment are taken, those Liens on
      Embark’s Trademarks as recorded with the United States Patent and Trademark
      Office on the date hereof exists or will exist upon such Collateral at any
      time.

     

    (b) This
      Agreement is effective to create in favor of Secured Party a valid security
      interest in and Lien upon all of such Debtor’s right, title and interest in and
      to the Collateral, and upon (i) the filing of appropriate Uniform Commercial
      Code financing statements in the jurisdictions listed on Schedule
      I
      attached
      hereto, and (ii) each Deposit Account being subject to an Account Control
      Agreement (as hereinafter defined) between the applicable Debtor and depository
      institution and the Secured Party on behalf of the Buyers, such security
      interest will be a duly perfected first priority security interest in all of
      the
      Collateral (other than Instruments not constituting Chattel Paper and, until
      the
      actions described in Section 5(c) of the Third Amendment are taken, the
      Trademarks owned by Embark on the date hereof), and upon delivery of the
      Instruments to the Secured Party or its Representative, duly endorsed by such
      Debtor or accompanied by appropriate instruments of transfer duly executed
      by
      such Debtor, the security interest in the Instruments will be duly perfected.
      After the actions described in Section 5(c) of the Third Amendment are taken,
      the security interest in such Trademarks owned by Embark on the date hereof
      will
      be a duly perfected first priority security interest in such
      Trademarks.

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    (c) All
      of
      the Equipment, Inventory and Goods owned by such Debtor is located at the places
      as specified on Schedule
      I
      attached
      hereto. Except as disclosed on Schedule
      I,
      none of
      the Collateral is in the possession of any bailee, warehousemen, processor
      or
      consignee. Schedule
      I
      discloses such Debtor’s name as of the date hereof as it appears in official
      filings in the state or province, as applicable, of its incorporation, formation
      or organization, the type of entity of such Debtor (including corporation,
      partnership, limited partnership or limited liability company), organizational
      identification number issued by such Debtor’s state of incorporation, formation
      or organization (or a statement that no such number has been issued), such
      Debtor’s state or province, as applicable, of incorporation, formation or
      organization and the
      chief
      place of business, chief executive officer and the office where such Debtor
      keeps its books and records and the states in which such Debtor conducts its
      business. Such Debtor has only one state or
      province, as applicable, of
      incorporation, formation or organization. Such Debtor does not do business
      and
      has not done business during the past five (5) years under any trade name or
      fictitious business name except as disclosed on Schedule
      II
      attached
      hereto.

     

    (d) No
      Copyrights, Patents or Trademarks listed on Schedules
      III, IV and V,
      respectively, if any, have been adjudged invalid or unenforceable or have been
      canceled, in whole or in part, or are not presently subsisting. Each of such
      Copyrights, Patents and Trademarks (if any) is valid and enforceable. Such
      Debtor is the sole and exclusive owner of the entire and unencumbered right,
      title and interest in and to each of such Copyrights, Patents and Trademarks,
      identified on Schedules
      III, IV and V,
      as
      applicable, as being owned by such Debtor, except with respect to the Trademarks
      owned by Embark on the date hereof, free and clear of any liens, charges and
      encumbrances, including without limitation licenses, shop rights and covenants
      by such Debtor not to sue third persons. After the actions described in Section
      5(c) of the Third Amendment are taken, the Trademarks owned by Embark on the
      date hereof shall be free and clear of any liens, charges and encumbrances,
      including without limitation licenses, shop rights and covenants by such Debtor
      not to sue third persons. Such Debtor has adopted, used and is currently using,
      or has a current bona fide intention to use, all of such Trademarks and
      Copyrights, if any. Such Debtor has no notice of any suits or actions commenced
      or threatened with reference to the Copyrights, Patents or Trademarks owned
      by
      it.

     

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    (e) Each
      Debtor agrees to deliver to the Secured Party an updated Schedule
      I, II, III, IV and/or V
      within
      five (5) Business Days of any change thereto.

     

    (f) All
      depositary and other accounts including, without limitation, Deposit Accounts,
      securities accounts, brokerage accounts and other similar accounts, maintained
      by each Debtor are described on Schedule
      VI
      hereto,
      which description includes for each such account the name of the Debtor
      maintaining such account, the name, address and telephone and telecopy numbers
      of the financial institution at which such account is maintained, the account
      number and the account officer, if any, of such account. No Debtor shall open
      any new Deposit Accounts, securities accounts, brokerage accounts or other
      accounts unless such Debtor shall have given Secured Party five (5) Business
      Days’ prior written notice of its intention to open any such new accounts. Each
      Debtor shall deliver to Secured Party a revised version of Schedule
      VI
      showing
      any changes thereto within five (5) Business Days of any such change. Each
      Debtor hereby authorizes the financial institutions at which such Debtor
      maintains an account to provide Secured Party with such information with respect
      to such account as Secured Party from time to time reasonably may request,
      and
      each Debtor hereby consents to such information being provided to Secured Party.
      In addition, all of such Debtor’s depositary, security, brokerage and other
      accounts including, without limitation, Deposit Accounts shall be subject to
      the
      provisions of Section
      4.5
      hereof.

     

    (g) Such
      Debtor does not own any Commercial Tort Claim except for those disclosed on
      Schedule
      VII
      hereto
      (if any).

     

    (h) Such
      Debtor does not have any interest in real property except as disclosed on
Schedule
      VIII
      (if
      any). Each Debtor shall deliver to Secured Party a revised version of
Schedule
      VIII
      showing
      any changes thereto within ten (10) Business Days of any such change. Except
      as
      otherwise agreed to by Secured Party, all such interests in real property are
      subject to a mortgage or deed of trust (in form and substance satisfactory
      to
      Secured Party) in favor of Secured Party (hereinafter, a “Mortgage”).
      

     

    (i) All
      Equipment (including, without limitation, Motor Vehicles) owned by a Debtor
      and
      subject to a certificate of title or ownership statute is described on
Schedule
      IX
      hereto.

    

    Section
      3. Collateral.
      As
      collateral security for the prompt payment in full when due (whether at stated
      maturity, by acceleration or otherwise) of the Liabilities, each Debtor hereby
      pledges and grants to the Secured Party, for the benefit of itself and the
      Buyers, a Lien on and security interest in and to all of such Debtor’s right,
      title and interest in the following properties and assets of such Debtor,
      whether now owned by such Debtor or hereafter acquired and whether now existing
      or hereafter coming into existence and wherever located (all being collectively
      referred to herein as “Collateral”):

     

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    (a) all
      Instruments, together with all payments thereon or thereunder:

     

    (b) all
      Accounts;

     

    (c) all
      Inventory; 

     

    (d) all
      General Intangibles (including payment intangibles (as defined in the Uniform
      Commercial Code) and Software);

     

    (e) all
      Equipment;

     

    (f) all
      Documents;

     

    (g) all
      Contracts;

     

    (h)
       all
      Goods;

     

    (i) all
      Investment Property;

     

    (j) all
      Deposit Accounts, including, without limitation, the balance from time to time
      in all bank accounts maintained by such Debtor (other than any Deposit Account
      held by Embark and Embark Online on the date hereof); 

     

    (k) all
      Commercial Tort Claims specified on Schedule
      VII;
      

     

    (l) all
      As-extracted Collateral; 

     

    (m) all
      Trademarks, Patents and Copyrights; 

     

    (n) all
      books
      and records pertaining to the other Collateral; and

     

    (o) all
      other
      tangible and intangible property of such Debtor, including, without limitation,
      all interests in real property, Proceeds, tort claims, products, accessions,
      rents, profits, income, benefits, substitutions, additions and replacements
      of
      and to any of the property of such Debtor described in the preceding clauses
      of
      this Section
      3
      (including, without limitation, any proceeds of insurance thereon, insurance
      claims and all rights, claims and benefits against any Person relating thereto),
      other rights to payments not otherwise included in the foregoing, and all books,
      correspondence, files, records, invoices and other papers, including without
      limitation all tapes, cards, computer runs, computer programs, computer files
      and other papers, documents and records in the possession or under the control
      of such Debtor, any computer bureau or service company from time to time acting
      for such Debtor.

     

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    Section
      4. Covenants;
      Remedies.
      In
      furtherance of the grant of the pledge and security interest pursuant to
Section
      3
      hereof,
      each Debtor hereby agrees with the Secured Party as follows:

     

    4.1.
      Delivery
      and Other Perfection; Maintenance, etc.

     

    (a) Delivery
      of Instruments, Documents, Etc.
      Each
      Debtor shall deliver and pledge to the Secured Party or its Representative
      any
      and all Instruments, negotiable Documents, Chattel Paper and certificated
      securities (accompanied by stock powers executed in blank, which stock powers
      may be filled in and completed at any time upon the occurrence of any Event
      of
      Default) duly endorsed and/or accompanied by such instruments of assignment
      and
      transfer executed by such Debtor in such form and substance as the Secured
      Party
      or its Representative may request; provided,
      that so
      long as no Event of Default shall have occurred and be continuing, each Debtor
      may retain for collection in the ordinary course of business any Instruments,
      negotiable Documents and Chattel Paper received by such Debtor in the ordinary
      course of business, and the Secured Party or its Representative shall, promptly
      upon request of a Debtor, make appropriate arrangements for making any other
      Instruments, negotiable Documents and Chattel Paper pledged by such Debtor
      available to such Debtor for purposes of presentation, collection or renewal
      (any such arrangement to be effected, to the extent deemed appropriate by the
      Secured Party or its Representative, against trust receipt or like document).
      If
      a
      Debtor retains possession of any Chattel Paper, negotiable Documents or
      Instruments pursuant to the terms hereof, such Chattel Paper, negotiable
      Documents and Instruments shall be marked with the following legend: “This
      writing and the obligations evidenced or secured hereby are subject to the
      security interest of Viking
      Asset Management, LLC, in its capacity as collateral agent for the benefit
      of
      the Buyers,
      as
      secured party.”

     

    (b) Other
      Documents and Actions.
      Each
      Debtor shall give, execute, deliver, file and/or record any financing statement,
      registration, notice, instrument, document, agreement, Mortgage or other papers
      that may be necessary or desirable (in the reasonable judgment of the Secured
      Party or its Representative) to create, preserve, perfect or validate the
      security interest granted pursuant hereto (or any security interest or mortgage
      contemplated or required hereunder, including with respect to Section
      2(h)
      of this
      Agreement) or to enable the Secured Party or its Representative to exercise
      and
      enforce the rights of the Secured Party hereunder with respect to such pledge
      and security interest, provided
      that
      notices to account debtors in respect of any Accounts or Instruments shall
      be
      subject to the provisions of clause (e) below. Notwithstanding
      the foregoing each Debtor hereby irrevocably authorizes the Secured Party at
      any
      time and from time to time to file in any filing office in any jurisdiction
      any
      Uniform Commercial Code initial financing statements (and other similar filings
      or registrations under other applicable laws and regulations pertaining to
      the
      creation, attachment, or perfection of security interests) and amendments
      thereto that (a) indicate the Collateral (i) as all assets of such Debtor or
      words of similar effect, regardless of whether any particular asset comprised
      in
      the Collateral falls within the scope of Article 9 of the Uniform Commercial
      Code of the State of New York or such jurisdiction, or (ii) as being of an
      equal
      or lesser scope or with greater detail, and (b) contain any other information
      required by part 5 of Article 9 of the Uniform Commercial Code of the State
      of
      New York or any other State for the sufficiency or filing office acceptance
      of
      any financing statement or amendment, including (i) whether such Debtor is
      an
      organization, the type of organization and any organization identification
      number issued to such Debtor, and (ii) in the case of a financing statement
      filed as a fixture filing or indicating Collateral as As-extracted Collateral
      or
      timber to be cut, a sufficient description of real property to which the
      Collateral relates. Each Debtor agrees to furnish any such information to the
      Secured Party promptly upon request. Each Debtor also ratifies its authorization
      for the Secured Party to have filed in any jurisdiction any like initial
      financing statements or amendments thereto if filed prior to the date hereof.
      

     

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

    (c) Books
      and Records.
      Each
      Debtor shall maintain at its own cost and expense complete and accurate books
      and records of the Collateral, including, without limitation, a record of all
      payments received and all credits granted with respect to the Collateral and
      all
      other dealings with the Collateral. Upon the occurrence and during the
      continuation of any Event of Default, each Debtor shall deliver and turn over
      any such books and records (or true and correct copies thereof) to the Secured
      Party or its Representative at any time on demand. Each Debtor shall permit
      any
      Representative of the Secured Party to inspect such books and records at any
      time during reasonable business hours and will provide photocopies thereof
      at
      such Debtor’s expense to the Secured Party upon request of the Secured
      Party.

     

    (d) Motor
      Vehicles.
      Each
      Debtor shall, promptly upon acquiring same, cause the Secured Party to be listed
      as the lienholder on each certificate of title or ownership covering any items
      of Equipment, including Motor Vehicles, having a value in excess of $50,000
      in
      the aggregate for all such items of Equipment of the Debtor, or otherwise comply
      with the certificate of title or ownership laws of the relevant jurisdiction
      issuing such certificate of title or ownership in order to properly evidence
      and
      perfect Secured Party’s security interest in the assets represented by such
      certificate of title or ownership.

     

    (e) Notice
      to Account Debtors; Verification.
      (i)
      Upon the occurrence and during the continuance of any Event of Default (or
      if
      any rights of set-off (other than set-offs against an Account arising under
      the
      Contract giving rise to the same Account) or contra accounts may be asserted),
      upon request of the Secured Party or its Representative, each Debtor shall
      promptly notify (and each Debtor hereby authorizes the Secured Party and its
      Representative so to notify) each account debtor in respect of any Accounts
      or
      Instruments or other Persons obligated on the Collateral that such Collateral
      has been assigned to the Secured Party hereunder, and that any payments due
      or
      to become due in respect of such Collateral are to be made directly to the
      Secured Party, and (ii) the Secured Party and its Representative shall have
      the
      right at any time or times to make direct verification with the account debtors
      or other Persons obligated on any and all of the Accounts or other
      Collateral.

     

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    (f) Intellectual
      Property.
      Each
      Debtor represents and warrants that the Copyrights, Patents and Trademarks
      listed on Schedules
      III, IV and V,
      respectively (if any), constitute all of the registered Copyrights and all
      of
      the Patents and Trademarks now owned by such Debtor. If such Debtor shall (i)
      obtain rights to any new patentable inventions, any registered Copyrights or
      any
      Patents or Trademarks, or (ii) become entitled to the benefit of any registered
      Copyrights or any Patents or Trademarks or any improvement on any Patent, the
      provisions of this Agreement above shall automatically apply thereto and such
      Debtor shall give to Secured Party prompt written notice thereof. Each Debtor
      hereby authorizes Secured Party to modify this Agreement by amending
Schedules
      III, IV and V,
      as
      applicable, to include any such registered Copyrights or any such Patents and
      Trademarks. Each Debtor shall have the duty (i) to prosecute diligently any
      patent, trademark, or service mark applications pending as of the date hereof
      or
      hereafter, (ii) to make application on unpatented but patentable inventions
      and
      on trademarks, copyrights and service marks, as appropriate, (iii) to preserve
      and maintain all rights in the Copyrights, Patents and Trademarks, to the extent
      material to the operations of the business of such Debtor and (iv) to ensure
      that the Copyrights, Patents and Trademarks are and remain enforceable, to
      the
      extent material to the operations of the business of such Debtor. Any expenses
      incurred in connection with such Debtor’s obligations under this Section
      4.1(f)
      shall be
      borne by such Debtor. Except for any such items that a Debtor reasonably
      believes (using prudent industry customs and practices) are no longer necessary
      for the on-going operations of its business, no Debtor shall abandon any right
      to file a patent, trademark or service mark application, or abandon any pending
      patent, trademark or service mark application or any other Copyright, Patent
      or
      Trademark without the written consent of Secured Party, which consent shall
      not
      be unreasonably withheld.

     

    (g) Further
      Identification of Collateral.
      Each
      Debtor will, when and as often as requested by the Secured Party or its
      Representative, furnish to the Secured Party or such Representative, statements
      and schedules further identifying and describing the Collateral and such other
      reports in connection with the Collateral as the Secured Party or its
      Representative may reasonably request, all in reasonable detail.

     

    (h) Investment
      Property.
      Each
      Debtor will take any and all actions required or requested by the Secured Party,
      from time to time, to (i) cause the Secured Party to obtain exclusive control
      of
      any Investment Property owned by such Debtor in a manner acceptable to the
      Secured Party and (ii) obtain from any issuers of Investment Property and such
      other Persons, for the benefit of the Secured Party, written confirmation of
      the
      Secured Party’s control over such Investment Property. For purposes of this
Section
      4.1(h),
      the
      Secured Party shall have exclusive control of Investment Property if (i) such
      Investment Property consists of certificated securities and a Debtor delivers
      such certificated securities to the Secured Party (with appropriate endorsements
      if such certificated securities are in registered form); (ii) such Investment
      Property consists of uncertificated securities and either (x) a Debtor delivers
      such uncertificated securities to the Secured Party or (y) the issuer thereof
      agrees, pursuant to documentation in form and substance satisfactory to the
      Secured Party, that it will comply with instructions originated by the Secured
      Party without further consent by such Debtor, and (iii) such Investment Property
      consists of security entitlements and either (x) the Secured Party becomes
      the
      entitlement holder thereof or (y) the appropriate securities intermediary
      agrees, pursuant to the documentation in form and substance satisfactory to
      the
      Secured Party, that it will comply with entitlement orders originated by the
      Secured Party without further consent by any Debtor.

     

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

    
      	 	
              (i)

            	
              Reserved.
                

            

    

     

    (j) Commercial
      Tort Claims.
      Each
      Debtor shall promptly notify Secured Party of any Commercial Tort Claim acquired
      by it that concerns a claim in excess of $50,000 and unless otherwise consented
      to by Secured Party, such Debtor shall enter into a supplement to this Agreement
      granting to Secured Party a Lien on and security interest in such Commercial
      Tort Claim.

     

    4.2
      Other
      Liens.
      Debtors
      will not create, permit or suffer to exist, and will defend the Collateral
      against and take such other action as is necessary to remove, any Lien on the
      Collateral except Permitted Liens, and will defend the right, title and interest
      of the Secured Party in and to the Collateral and in and to all Proceeds thereof
      against the claims and demands of all Persons whatsoever.

     

    4.3
      Preservation
      of Rights.
      Whether
      or not any Event of Default has occurred or is continuing, the Secured Party
      and
      its Representative may, but shall not be required to, take any steps the Secured
      Party or its Representative deems necessary or appropriate to preserve any
      Collateral or any rights against third parties to any of the Collateral,
      including obtaining insurance for the Collateral at any time when such Debtor
      has failed to do so, and Debtors shall promptly pay, or reimburse the Secured
      Party for, all expenses incurred in connection therewith.

     

    4.4
      Formation
      of Subsidiaries; Name Change; Location; Bailees.

     

    (a) No
      Debtor
      shall form or acquire any subsidiary unless (i) such Debtor pledges all of
      the
      stock or equity interest of such subsidiary to the Secured Party pursuant to
      a
      pledge agreement in form and substance acceptable to Secured Party, (ii) such
      subsidiary becomes a party to this Agreement and all other applicable Security
      Documents and (iii) the formation or acquisition of such Subsidiary is not
      prohibited by the terms of the Transaction Documents.

     

    (b)
       No
      Debtor
      shall (i) reincorporate or reorganize itself under the laws of any jurisdiction
      other than the jurisdiction in which it is incorporated or organized as of
      the
      date hereof without the prior written consent of Secured Party, or (ii)
      otherwise change its name, identity or corporate structure. Each Debtor will
      notify Secured Party promptly in writing prior to any such change in the
      proposed use by such Debtor of any tradename or fictitious business name other
      than any such name set forth on Schedule
      II
      attached
      hereto. 

     

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

    (c) Except
      for the sale of Inventory in the ordinary course of business and other sales
      of
      assets expressly permitted by the terms of the Purchase Agreement,
      each
      Debtor will keep the Collateral at the locations specified in Schedule
      I.
      Each
      Debtor will give Secured Party thirty (30) day’s prior written notice of any
      change in such Debtor’s chief place of business or of any new location for any
      of the Collateral.

     

    (d) If
      any
      Collateral is at any time in the possession or control of any warehousemen,
      bailee, consignee or processor, such Debtor shall, upon the request of Secured
      Party or its Representative, notify such warehousemen, bailee, consignee or
      processor of the Lien and security interest created hereby and shall instruct
      such Person to hold all such Collateral for Secured Party’s account subject to
      Secured Party’s instructions.

     

    (e) Each
      Debtor acknowledges that it is not authorized to file any financing statement
      or
      amendment or termination statement with respect to any financing statement
      without the prior written consent of Secured Party and agrees that it will
      not
      do so without the prior written consent of Secured Party, subject to such
      Debtor’s rights under Section 9-509(d)(2) to the Uniform Commercial
      Code.

     

    (f) No
      Debtor
      shall enter into any Contract that restricts or prohibits the grant to Secured
      Party of a security interest in Accounts, Chattel Paper, Instruments or payment
      intangibles or the proceeds of the foregoing.

     

    4.5 Bank
      Accounts and Securities Accounts.

     

    (a) On
      or
      prior to the date hereof, the Secured Party and each Debtor (other than Embark
      and Embark Online), as applicable, shall enter into an account control agreement
      or securities account control agreement, as applicable, (each an “Account
      Control Agreement”),
      in a
      form specified by the Secured Party, with each financial institution with which
      such Debtor maintains from time to time any Deposit Accounts (general or
      special), securities accounts, brokerage accounts or other similar accounts,
      which financial institutions are set forth on Schedule
      VI
      attached
      hereto. Pursuant to the Account Control Agreements and pursuant hereto, each
      such Debtor grants and shall grant to the Secured Party a continuing lien upon,
      and security interest in, all such accounts and all funds at any time paid,
      deposited, credited or held in such accounts (whether for collection,
      provisionally or otherwise) or otherwise in the possession of such financial
      institutions, and each such financial institution shall act as the Secured
      Party’s agent in connection therewith. Following the date hereof, no Debtor
      shall establish any Deposit Account, securities account, brokerage account
      or
      other similar account with any financial institution unless prior thereto,
      the
      Secured Party and such Debtor shall have entered into an Account Control
      Agreement with such financial institution which purports to cover such account.
      Each Debtor shall deposit and keep on deposit all of its funds into a Deposit
      Account (other than the Deposit Accounts held in the name of Embark and Embark
      Online on the date hereof) which is subject to an Account Control Agreement.
      

     

    
      
         

      

      
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    (b) On
      or
      prior to the date hereof, Embark and Embark Online shall deliver to Secured
      Party a fully executed original copy of written instruction to each financial
      institution with which such Debtor maintains any Deposit Accounts (general
      or
      special), securities accounts, brokerage accounts or other similar accounts
      substantially in the form attached hereto as Exhibit
      B
      directing such financial institution to provide Secured Party with duplicate
      copies of all bank statements which are sent to such Debtor (until such time
      as
      such financial institution receives contrary direction from Secured Party)
      and
      such other information with respect to such Deposit Accounts or other accounts
      as Secured Party may from time to time reasonably request. Secured Party may
      deliver such written instruction to such financial institutions at any time
      as
      it deems appropriate in its sole and absolute discretion. After the date hereof,
      at the sole expense of Debtors, Borrower shall take such further actions as
      are
      necessary, or the Secured Party or its Representative may reasonably require,
      to
      cause such financial institution to provide Secured Party with duplicate copies
      of all bank statements which are sent to such Debtor (until such time as such
      financial institution receives contrary direction from Secured Party) and such
      other information with respect to such Deposit Account or other accounts as
      Secured Party may from time to time reasonably request.

     

    (c) Neither
      Embark nor Embark Online will at any time grant any Lien other than Permitted
      Liens to any Person other than Secured Party in any Deposit Accounts (general
      or
      special), securities accounts, brokerage accounts or other similar accounts
      held
      by such Debtors.

     

    (d) Upon
      the
      Secured Party’s request following the occurrence and during the continuance of
      an Event of Default, each Debtor (other than Embark and Embark Online) shall
      establish lock-box or blocked accounts (collectively, “Blocked
      Accounts”)
      in
      such Debtor’s name with such banks as are reasonably acceptable to the Secured
      Party (“Collecting
      Banks”),
      subject to irrevocable instructions in a form reasonably acceptable to the
      Secured Party, to which the obligors of all Accounts shall directly remit all
      payments on Accounts and in which such Debtor will immediately deposit all
      cash
      payments for Inventory or other cash payments constituting proceeds of
      Collateral in the identical form in which such payment was made, whether by
      cash
      or check. In addition, the Secured Party may establish one or more depository
      accounts at each Collecting Bank or at a centrally located bank (collectively,
      the “Depository
      Account”).
      All
      amounts held or deposited in the Blocked Accounts held by such Collecting Bank
      shall be transferred to the Depository Account without any further notice or
      action required by Secured Party. Subject to the foregoing, each Debtor hereby
      agrees that all payments received by the Secured Party whether by cash, check,
      wire transfer or any other instrument, made to such Blocked Accounts or
      otherwise received by the Secured Party and whether in respect of the Accounts
      or as proceeds of other Collateral or otherwise will be the sole and exclusive
      property of the Secured Party. Each Debtor (other than Embark and Embark
      Online), and any of its Affiliates, employees, agents and other Persons acting
      for or in concert with such Debtor shall, acting as trustee for the Secured
      Party, receive, as the sole and exclusive property of the Secured Party, any
      moneys, checks, notes, drafts or other payments relating to and/or proceeds
      of
      Accounts or other Collateral which come into the possession or under the control
      of such Debtor or any Affiliates, employees, agent or other Persons acting
      for
      or in concert with such Debtor, and immediately upon receipt thereof, such
      Debtor or Persons shall deposit the same or cause the same to be deposited
      in
      kind, in a Blocked Account.

     

    
      
         

      

      
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    4.6
      Events
      of Default, Etc.
      During
      the period during which an Event of Default shall have occurred and be
      continuing:

     

    (a) each
      Debtor shall, at the request of the Secured Party or its Representative,
      assemble the Collateral and
      make
      it available to Secured Party or its Representative at a place or places
      designated by the Secured Party or its Representative which are reasonably
      convenient to Secured Party or its Representative, as applicable, and such
      Debtor;

     

    (b) the
      Secured Party or its Representative may make any reasonable compromise or
      settlement deemed desirable with respect to any of the Collateral and may extend
      the time of payment, arrange for payment in installments, or otherwise modify
      the terms of, any of the Collateral;

     

    (c) the
      Secured Party shall have all of the rights and remedies with respect to the
      Collateral of a secured party under the Uniform Commercial Code (whether or
      not
      said Uniform Commercial Code is in effect in the jurisdiction where the rights
      and remedies are asserted) and such additional rights and remedies to which
      a
      secured party is entitled under the laws in effect in any jurisdiction where
      any
      rights and remedies hereunder may be asserted, including, without limitation,
      the right, to the maximum extent permitted by law, to: (i) exercise all voting,
      consensual and other powers of ownership pertaining to the Collateral as if
      the
      Secured Party were the sole and absolute owner thereof (and each Debtor agrees
      to take all such action as may be appropriate to give effect to such right)
      and
      (ii) to the appointment of a receiver or receivers for all or any part of the
      Collateral or business of a Debtor, whether such receivership be incident to
      a
      proposed sale or sales of such Collateral or otherwise and without regard to
      the
      value of the Collateral or the solvency of any person or persons liable for
      the
      payment of the Liabilities secured by such Collateral. Each Debtor hereby
      consents to the appointment of such receiver or receivers, waives any and all
      defenses to such appointment and agrees that such appointment shall in no manner
      impair, prejudice or otherwise affect the rights of Secured Party under this
      Agreement. Each Debtor hereby expressly waives notice of a hearing for
      appointment of a receiver and the necessity for bond or an accounting by the
      receiver;

     

    
      
         

      

      
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    (d) the
      Secured Party or its Representative in their discretion may, in the name of
      the
      Secured Party or in the name of a Debtor or otherwise, demand, sue for, collect
      or receive any money or property at any time payable or receivable on account
      of
      or in exchange for any of the Collateral, but shall be under no obligation
      to do
      so;

     

    (e)
      the
      Secured Party or its Representative may take immediate possession and occupancy
      of any premises (other than the headquarters of the Company) owned, used or
      leased by a Debtor and exercise all other rights and remedies which may be
      available to the Secured Party;

     

    (f) the
      Secured Party may, upon reasonable notice (such reasonable notice to be
      determined by Secured Party in its sole and absolute discretion) to Debtors
      of
      the time and place, with respect to the Collateral or any part thereof which
      shall then be or shall thereafter come into the possession, custody or control
      of the Secured Party or its Representative, sell, lease, license, assign or
      otherwise dispose of all or any part of such Collateral, at such place or places
      as the Secured Party deems best, and for cash or for credit or for future
      delivery (without thereby assuming any credit risk), at public or private sale,
      without demand of performance or notice of intention to effect any such
      disposition or of the time or place thereof (except such notice as is required
      above or by applicable statute and cannot be waived), and the Secured Party
      or
      anyone else may be the purchaser, lessee, licensee, assignee or recipient of
      any
      or all of the Collateral so disposed of at any public sale (or, to the extent
      permitted by law, at any private sale) and thereafter hold the same absolutely,
      free from any claim or right of whatsoever kind, including any right or equity
      of redemption (statutory or otherwise), of Debtors, any such demand, notice
      and
      right or equity being hereby expressly waived and released. The Secured Party
      may, without notice or publication, adjourn any public or private sale or cause
      the same to be adjourned from time to time by announcement at the time and
      place
      fixed for the sale, and such sale may be made at any time or place to which
      the
      sale may be so adjourned; and

     

    (g) the
      rights, remedies and powers conferred by this Section 4.6 are in addition to,
      and not in substitution for, any other rights, remedies or powers that the
      Secured Party may have under any Transaction Document, at law, in equity or
      by
      or under the Uniform Commercial Code or any other statute or agreement. The
      Secured Party may proceed by way of any action, suit or other proceeding at
      law
      or in equity and no right, remedy or power of the Secured Party will be
      exclusive of or dependent on any other. The Secured Party may exercise any
      of
      its rights, remedies or powers separately or in combination and at any
      time.

     

    The
      proceeds of each collection, sale or other disposition under this Section
      4.6
      shall be
      applied in accordance with Section
      4.9
      hereof.

     

    
      
         

      

      
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    4.7
      Deficiency.
      If the
      proceeds of sale, collection or other realization of or upon the Collateral
      are
      insufficient to cover the costs and expenses of such realization and the payment
      in full of the Liabilities, Debtors shall remain liable for any
      deficiency.

     

    4.8
      Private
      Sale.
      Each
      Debtor recognizes that the Secured Party may be unable to effect a public sale
      of any or all of the Collateral consisting of securities by reason of certain
      prohibitions contained in the Securities Act of 1933, as amended (the
“Act”),
      and
      applicable state securities laws, but may be compelled to resort to one or
      more
      private sales thereof to a restricted group of purchasers who will be obliged
      to
      agree, among other things, to acquire such Collateral for their own account
      for
      investment and not with a view to the distribution or resale thereof. Each
      Debtor acknowledges and agrees that any such private sale may result in prices
      and other terms less favorable to the seller than if such sale were a public
      sale and, notwithstanding such circumstances, agrees that any such private
      sale
      shall be deemed to have been made in a commercially reasonable manner. The
      Secured Party shall be under no obligation to delay a sale of any of the
      Collateral to permit a Debtor to register such Collateral for public sale under
      the Act, or under applicable state securities laws, even if Debtors would agree
      to do so. The Secured Party shall not incur any liability as a result of the
      sale of any such Collateral, or any part thereof, at any private sale provided
      for in this Agreement conducted in a commercially reasonable manner, and each
      Debtor hereby waives any claims against the Secured Party arising by reason
      of
      the fact that the price at which the Collateral may have been sold at such
      a
      private sale was less than the price which might have been obtained at a public
      sale or was less than the aggregate amount of the Liabilities, even if the
      Secured Party accepts the first offer received and does not offer the Collateral
      to more than one offeree.

     

    Each
      Debtor further agrees to do or cause to be done all such other acts and things
      as may be necessary to make such sale or sales of any portion or all of any
      such
      Collateral valid and binding and in compliance with any and all applicable
      laws,
      regulations, orders, writs, injunctions, decrees or awards of any and all
      courts, arbitrators or governmental instrumentalities, domestic or foreign,
      having jurisdiction over any such sale or sales, all at such Debtor’s expense,
provided
      that
      Debtors shall be under no obligation to take any action to enable any or all
      of
      such Collateral to be registered under the provisions of the Act. Each Debtor
      further agrees that a breach of any of the covenants contained in this
Section
      4.8
      will
      cause irreparable injury to the Secured Party, that the Secured Party has no
      adequate remedy at law in respect of such breach and, as a consequence, agrees
      that each and every covenant contained in this Section
      4.8
      shall be
      specifically enforceable against Debtors, and each Debtor hereby waives and
      agrees not to assert any defenses against an action for specific performance
      of
      such covenants except for a defense that no Event of Default has occurred and
      is
      continuing.

     

    4.9
      Application
      of Proceeds.
      The
      proceeds of any collection, sale or other realization of all or any part of
      the
      Collateral, and any other cash at the time held by the Secured Party under
      this
      Agreement, shall be applied in the manner set forth in the Notes (or, if not
      so
      set forth, in a manner acceptable to, and at the election of, the Secured
      Party).

     

    
      
         

      

      
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    4.10
      Attorney-in-Fact.
      Each
      Debtor hereby irrevocably constitutes and appoints the Secured Party, with
      full
      power of substitution, as its true and lawful attorney-in-fact with full
      irrevocable power and authority in the place and stead of such Debtor and in
      the
      name of such Debtor or in its own name, from time to time in the discretion
      of
      the Secured Party, for the purpose of carrying out the terms of this Agreement,
      to take any and all appropriate action and to execute and deliver any and all
      documents and instruments which may be necessary or desirable to perfect or
      protect any security interest granted hereunder or to maintain the perfection
      or
      priority of any security interest granted hereunder, and, without limiting
      the
      generality of the foregoing, hereby gives the Secured Party the power and right,
      on behalf of such Debtor, without notice to or assent by such Debtor, to do
      the
      following upon the occurrence and during the continuation of any Event of
      Default:

     

    (a) to
      take
      any and all appropriate action and to execute and deliver any and all documents
      and instruments which may be necessary or desirable to accomplish the purposes
      of this Agreement;

     

    (b) to
      ask,
      demand, collect, receive and give acquittance and receipts for any and all
      moneys due and to become due under any Collateral and, in the name of such
      Debtor or its own name or otherwise, to take possession of and endorse and
      collect any checks, drafts, notes, acceptances or other Instruments for the
      payment of moneys due under any Collateral and to file any claim or to take
      any
      other action or proceeding in any court of law or equity or otherwise deemed
      appropriate by the Secured Party for the purpose of collecting any and all
      such
      moneys due under any Collateral whenever payable and to file any claim or to
      take any other action or proceeding in any court of law or equity or otherwise
      deemed appropriate by the Secured Party for the purpose of collecting any and
      all such moneys due under any Collateral whenever payable;

     

    (c) to
      pay or
      discharge charges or liens levied or placed on or threatened against the
      Collateral, to effect any insurance called for by the terms of this Agreement
      and to pay all or any part of the premiums therefor; 

     

    (d) to
      direct
      any party liable for any payment under any of the Collateral to make payment
      of
      any and all moneys due, and to become due thereunder, directly to the Secured
      Party or as the Secured Party shall direct, and to receive payment of and
      receipt for any and all moneys, claims and other amounts due, and to become
      due
      at any time, in respect of or arising out of any Collateral;

     

    (e) to
      sign
      and indorse any invoices, freight or express bills, bills of lading, storage
      or
      warehouse receipts, drafts against debtors, assignments, verifications and
      notices in connection with accounts and other Documents constituting or relating
      to the Collateral;

     

    (f) to
      commence and prosecute any suits, actions or proceedings at law or in equity
      in
      any court of competent jurisdiction to collect the Collateral or any part
      thereof and to enforce any other right in respect of any
      Collateral;

     

    
      
         

      

      
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    (g) to
      defend
      any suit, action or proceeding brought against a Debtor with respect to any
      Collateral;

     

    (h) to
      settle, compromise or adjust any suit, action or proceeding described above
      and,
      in connection therewith, to give such discharges or releases as the Secured
      Party may deem appropriate; 

     

    (i) to
      the
      extent that a Debtor’s authorization given in Section
      4.1(b)
      of this
      Agreement is not sufficient to file such financing statements with respect
      to
      this Agreement, with or without such Debtor’s signature, or to file a photocopy
      of this Agreement in substitution for a financing statement, as the Secured
      Party may deem appropriate and to execute in such Debtor’s name such financing
      statements and amendments thereto and continuation statements which may require
      such Debtor’s signature; and

     

    (j) generally
      to sell, transfer, pledge, make any agreement with respect to or otherwise
      deal
      with any of the Collateral as fully and completely as though the Secured Party
      were the absolute owners thereof for all purposes, and to do, at the Secured
      Party’s option and at such Debtor’s expense, at any time, or from time to time,
      all acts and things which the Secured Party reasonably deems necessary to
      protect, preserve or realize upon the Collateral and the Secured Party’s lien
      therein, in order to effect the intent of this Agreement, all as fully and
      effectively as such Debtor might do.

     

    Each
      Debtor hereby ratifies, to the extent permitted by law, all that such attorneys
      lawfully do or cause to be done by virtue hereof. The power of attorney granted
      hereunder is a power coupled with an interest and shall be irrevocable until
      the
      Liabilities are indefeasibly paid in full in cash and this Agreement is
      terminated in accordance with Section
      4.12
      hereof.

     

    Each
      Debtor also authorizes the Secured Party, at any time from and after the
      occurrence and during the continuation of any Event of Default, (x) to
      communicate in its own name with any party to any Contract with regard to the
      assignment of the right, title and interest of such Debtor in and under the
      Contracts hereunder and other matters relating thereto and (y) to execute,
      in
      connection with any sale of Collateral provided for in Section
      4.6
      hereof,
      any endorsements, assignments or other instruments of conveyance or transfer
      with respect to the Collateral.

     

    4.11
      Perfection.
      Prior
      to or concurrently with the execution and delivery of this Agreement, each
      Debtor shall:

     

    (a) file
      such
      financing statements, assignments for security and other documents in such
      offices as may be necessary or as the Secured Party or the Representative may
      request to perfect the security interests granted by Section
      3
      of this
      Agreement; and

     

    (b) at
      Secured Party’s request, deliver to the Secured Party or its Representative the
      originals of all Instruments together with, in the case of Instruments
      constituting promissory notes, allonges attached thereto showing such promissory
      notes to be payable to the order of a blank payee.

     

    
      
         

      

      
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    4.12
      Termination.
      This
      Agreement and the Liens and security interests granted hereunder shall not
      terminate until the termination of the Notes and the full and complete
      performance and indefeasible satisfaction of all the Liabilities (including,
      without limitation, the indefeasible payment in full in cash of all such
      Liabilities) and with respect to which claims have been asserted by Collateral
      Agent and/or Buyers, whereupon the Secured Party shall forthwith cause to be
      assigned, transferred and delivered, against receipt but without any recourse,
      warranty or representation whatsoever, any remaining Collateral to or on the
      order of Debtors. The Secured Party shall also execute and deliver to Debtors
      upon such termination and at Debtors’ expense such Uniform Commercial Code
      termination statements, certificates for terminating the liens on the Motor
      Vehicles (if any) and such other documentation (including such documentation
      to
      effect the termination of the right of Secured Party to receive information
      related to the accounts of Debtors pursuant to Section
      4.5(b)
      hereof)
      as shall be reasonably requested by Debtors to effect the termination and
      release of the Liens and security interests in favor of the Secured Party
      affecting the Collateral .

     

    4.13
      Further
      Assurances.
      At any
      time and from time to time, upon the written request of the Secured Party or
      its
      Representative, and at the sole expense of Debtors, Debtors will promptly and
      duly execute and deliver any and all such further instruments, documents and
      agreements and take such further actions as are necessary or the Secured Party
      or its Representative may reasonably require in order for the Secured Party
      to
      obtain the full benefits of this Agreement and of the rights and powers herein
      granted in favor of the Secured Party, including, without limitation, using
      Debtors’ best efforts to secure all consents and approvals necessary or
      appropriate for the assignment to the Secured Party of any Collateral held
      by
      Debtors or in which a Debtor has any rights not heretofore assigned, the filing
      of any financing or continuation statements under the Uniform Commercial Code
      with respect to the liens and security interests granted hereby, transferring
      Collateral to the Secured Party’s possession (if a security interest in such
      Collateral can be perfected by possession), placing the interest of the Secured
      Party as lienholder on the certificate of title of any Motor Vehicle and
      obtaining waivers of liens from landlords and mortgagees. Each Debtor also
      hereby authorizes the Secured Party and its Representative to file any such
      financing or continuation statement without the signature of such Debtor to
      the
      extent permitted by applicable law.

     

    4.14
      Limitation
      on Duty of Secured Party.
      The
      powers conferred on the Secured Party under this Agreement are solely to protect
      the Secured Party’s interest on behalf of itself and the Buyers in the
      Collateral and shall not impose any duty upon it to exercise any such powers.
      The Secured Party shall be accountable only for amounts that it actually
      receives as a result of the exercise of such powers and neither the Secured
      Party nor its Representative nor any of their respective officers, directors,
      employees or agents shall be responsible to Debtors for any act or failure
      to
      act, except for willful misconduct. Without limiting the foregoing, the Secured
      Party and any Representative shall be deemed to have exercised reasonable care
      in the custody and preservation of the Collateral in their possession if such
      Collateral is accorded treatment substantially equivalent to that which the
      relevant Secured Party or any Representative, in its individual capacity,
      accords its own property consisting of the type of Collateral involved, it
      being
      understood and agreed that neither the Secured Party nor any Representative
      shall have any responsibility for taking any necessary steps (other than steps
      taken in accordance with the standard of care set forth above) to preserve
      rights against any Person with respect to any Collateral.

     

    
      
         

      

      
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    Also
      without limiting the generality of the foregoing, neither the Secured Party
      nor
      any Representative shall have any obligation or liability under any Contract
      or
      license by reason of or arising out of this Agreement or the granting to the
      Secured Party of a security interest therein or assignment thereof or the
      receipt by the Secured Party or any Representative of any payment relating
      to
      any Contract or license pursuant hereto, nor shall the Secured Party or any
      Representative be required or obligated in any manner to perform or fulfill
      any
      of the obligations of Debtors under or pursuant to any Contract or license,
      or
      to make any payment, or to make any inquiry as to the nature or the sufficiency
      of any payment received by it or the sufficiency of any performance by any
      party
      under any Contract or license, or to present or file any claim, or to take
      any
      action to collect or enforce any performance or the payment of any amounts
      which
      may have been assigned to it or to which it may be entitled at any time or
      times.

     

    Section
      5. Miscellaneous.

     

    5.1
      No
      Waiver.
      No
      failure on the part of the Secured Party or any of its Representatives to
      exercise, and no course of dealing with respect to, and no delay in exercising,
      any right, power or remedy hereunder shall operate as a waiver thereof, nor
      shall any single or partial exercise by the Secured Party or any of its
      Representatives of any right, power or remedy hereunder preclude any other
      or
      further exercise thereof or the exercise of any other right, power or remedy.
      The rights and remedies hereunder provided are cumulative and may be exercised
      singly or concurrently, and are not exclusive of any rights and remedies
      provided by law.

     

    5.2
      Governing
      Law.
      All
      questions concerning the construction, validity, enforcement and interpretation
      of this Agreement shall be governed by the internal laws of the State of New
      York, without giving effect to any choice of law or conflict of law provision
      or
      rule (whether of the State of New York or any other jurisdiction) that would
      cause the application of the laws of any jurisdiction other than the State
      of
      New York

     

    5.3
      Notices.
      All
      notices, approvals, requests, demands and other communications hereunder shall
      be delivered or made in the manner set forth in, and shall be effective in
      accordance with the terms of, the Purchase Agreement; provided, that, to the
      extent any such communication (i) is being made or sent to a Debtor, such
      communication shall be effective as to such Debtor if made or sent to the
      Company in accordance with the foregoing or (ii) is being made or sent to
      Collateral Agent, such communication shall be made to Collateral Agent at the
      address set forth below Collateral Agent’s signature hereto. Debtors
      and Collateral Agent may change their respective notice addresses by written
      notice given to each other party five (5) days prior to the effectiveness of
      such change.

     

    
      
         

      

      
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    5.4
      Amendments,
      Etc.
      The
      terms of this Agreement may be waived, altered or amended only by an instrument
      in writing duly executed by the Debtor sought to be charged or benefited thereby
      and the Secured Party. Any such amendment or waiver shall be binding upon the
      Secured Party and the Debtor sought to be charged or benefited thereby and
      their
      respective successors and assigns.

     

    5.5
      Successors
      and Assigns.
      This
      Agreement shall be binding upon and inure to the benefit of the respective
      successors and assigns of each of the parties hereto, provided,
      that no
      Debtor shall assign or transfer its rights hereunder without the prior written
      consent of the Secured Party. Secured
      Party, in its capacity as collateral agent, may assign its rights hereunder
      without the consent of Debtors, in which event such assignee shall be deemed
      to
      be Secured Party hereunder with respect to such assigned rights.

     

    5.6
      Counterparts;
      Headings.
      This
      Agreement may be authenticated in any number of counterparts, all of which
      taken
      together shall constitute one and the same instrument and any of the parties
      hereto may authenticate this Agreement by signing any such counterpart. This
      Agreement may be authenticated by manual signature or facsimile, .pdf or similar
      electronic signature, all of which shall be equally valid. The headings in
      this
      Agreement are for convenience of reference only and shall not alter or otherwise
      affect the meaning hereof.

     

    5.7
      Severability.
      If any
      provision hereof is invalid and unenforceable in any jurisdiction, then, to
      the
      fullest extent permitted by law, (a) the other provisions hereof shall remain
      in
      full force and effect in such jurisdiction and shall be liberally construed
      in
      favor of the Secured Party and its Representative in order to carry out the
      intentions of the parties hereto as nearly as may be possible and (b) the
      invalidity or unenforceability of any provision hereof in any jurisdiction
      shall
      not affect the validity or enforceability of such provision in any other
      jurisdiction.

     

    5.8
      SUBMISSION
      TO JURISDICTION; WAIVER OF VENUE; SERVICE OF PROCESS.
      (A) EACH DEBTOR HEREBY IRREVOCABLY SUBMITS TO THE EXCLUSIVE JURISDICTION OF
      ANY
      UNITED STATES FEDERAL OR NEW YORK STATE COURT SITTING IN THE CITY OF NEW YORK,
      BOROUGH OF MANHATTAN IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING
      TO
      THIS AGREEMENT AND EACH DEBTOR HEREBY IRREVOCABLY AGREES THAT ALL CLAIMS IN
      RESPECT OF SUCH ACTION OR PROCEEDING MAY BE HEARD AND DETERMINED IN ANY SUCH
      COURT AND IRREVOCABLY WAIVES ANY OBJECTION IT MAY NOW OR HEREAFTER HAVE AS
      TO
      THE VENUE OF ANY SUCH SUIT, ACTION OR PROCEEDING BROUGHT IN SUCH A COURT OR
      THAT
      SUCH COURT IS AN INCONVENIENT FORUM. NOTHING HEREIN SHALL LIMIT THE RIGHT OF
      SECURED PARTY TO BRING PROCEEDINGS AGAINST ANY DEBTOR IN THE COURTS OF ANY
      OTHER
      JURISDICTION. ANY JUDICIAL PROCEEDING BY A DEBTOR AGAINST SECURED PARTY, ANY
      BUYER OR ANY AFFILIATE THEREOF INVOLVING, DIRECTLY OR INDIRECTLY, ANY MATTER
      IN
      ANY WAY ARISING OUT OF, RELATED TO, OR CONNECTION WITH THIS AGREEMENT SHALL
      BE
      BROUGHT ONLY IN A COURT IN NEW YORK, NEW YORK (AND SECURED PARTY AND BUYERS
      HEREBY SUBMIT TO THE JURISDICTION OF SUCH COURT). EACH PARTY HERETO HEREBY
      IRREVOCABLY WAIVES PERSONAL SERVICE OF PROCESS AND CONSENTS TO PROCESS BEING
      SERVED IN ANY SUCH ACTION OR PROCEEDING BY MAILING A COPY THEREOF TO SUCH PARTY
      AT THE ADDRESS FOR NOTICES TO IT IN ACCORDANCE WITH SECTION
      5.3
      OF THIS AGREEMENT AND AGREES THAT SUCH NOTICE SHALL CONSTITUTE GOOD AND
      SUFFICIENT SERVICE OF PROCESS AND NOTICE THEREOF. NOTHING CONTAINED HEREIN
      SHALL
      BE DEEMED TO LIMIT IN ANY WAY ANY RIGHT TO SERVE PROCESS IN ANY MANNER PERMITTED
      BY LAW. 

     

    
      
         

      

      
        22

        
          

        

      

      
         

      

    

    5.9
      WAIVER
      OF RIGHT TO TRIAL BY JURY.
      EACH DEBTOR AND SECURED PARTY EACH WAIVE THEIR RESPECTIVE RIGHTS TO A TRIAL
      BY
      JURY OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF OR RELATED
      TO
      THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY, IN ANY ACTION,
      PROCEEDING OR OTHER LITIGATION OF ANY TYPE BROUGHT BY ANY OF THE PARTIES AGAINST
      ANY OTHER PARTY OR PARTIES, WHETHER WITH RESPECT TO CONTRACT CLAIMS, TORT
      CLAIMS, OR OTHERWISE. EACH DEBTOR AND SECURED PARTY EACH AGREE THAT ANY SUCH
      CLAIM OR CAUSE OF ACTION SHALL BE TRIED BY A COURT TRIAL WITHOUT A JURY. WITHOUT
      LIMITING THE FOREGOING, THE PARTIES FURTHER AGREE THAT THEIR RESPECTIVE RIGHT
      TO
      A TRIAL BY JURY IS WAIVED BY OPERATION OF THIS SECTION
      AS TO ANY ACTION, COUNTERCLAIM OR OTHER PROCEEDING WHICH SEEKS, IN WHOLE OR
      IN
      PART, TO CHALLENGE THE VALIDITY OR ENFORCEABILITY OF THIS AGREEMENT OR ANY
      PROVISION HEREOF. THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS,
      RENEWALS, SUPPLEMENTS OR MODIFICATIONS TO THIS AGREEMENT. 

     

    5.10 Joint
      and Several.
      The
      obligations, covenants and agreements of Debtors hereunder shall be the joint
      and several obligations, covenants and agreements of each Debtor, whether or
      not
      specifically stated herein.

     

    5.11 Collateral
      Agent and Buyer Indemnification.

     

    (a) Each
      Buyer hereby irrevocably appoints and authorizes the Secured Party to act as
      collateral agent (the “Collateral
      Agent”)
      on its
      behalf under this Agreement and to enter into each of the instruments, documents
      and agreements, including any pledge agreement, guaranty, financing statements,
      mortgage, Account Control Agreement or any other Security Documents (the
“Financing
      Documents”),
      to
      which Secured Party is a party (including in its capacity as Collateral Agent)
      on such Buyer’s behalf and to take such actions as Collateral Agent on such
      Buyer’s behalf and to exercise such powers under the Financing Documents as are
      delegated to Collateral Agent or Secured Party (as applicable) by the terms
      thereof, together with all such powers as are reasonably incidental thereto.
      The
      Collateral Agent shall take such action under this Agreement and/or any other
      Transaction Documents as the Collateral Agent shall reasonably be directed
      by
      the Requisite Buyers in accordance with the terms of the Transaction Documents.
      Secured Party is authorized and empowered to amend, modify, or waive any
      provisions of this Agreement or the other Financing Documents only with the
      consent of the Requisite Buyers.

     

    
      
         

      

      
        23

        
          

        

      

      
         

      

    

    (b) Whether
      or not the transactions contemplated hereby shall be consummated, upon demand
      therefor the Buyers shall indemnify the Collateral Agent (to the extent not
      reimbursed by or on behalf of the Company and without limiting the obligation
      of
      the Company to do so), ratably from and against any and all liabilities,
      obligations, losses, damages, penalties, actions, judgments, suits, costs,
      expenses and disbursements of any kind whatsoever, including, for purposes
      of
      clarification, all Taxes, which may at any time (including at any time following
      the payment in full of the Notes and the termination or resignation of the
      Collateral Agent) be imposed on, incurred by or asserted against the Collateral
      Agent in any way relating to or arising out of this Agreement, any other
      Financing Document or any document contemplated hereby or referred to herein
      or
      the transactions contemplated hereby or thereby or any action taken or omitted
      by the Collateral Agent under or in connection with any of the foregoing;
provided,
      however,
      that no Buyer shall be liable for the payment to the Collateral Agent of any
      portion of such liabilities, obligations, losses, damages, penalties, actions,
      judgments, suits, costs, expenses or disbursements resulting solely from the
      Collateral Agent’s gross negligence or willful misconduct. In addition, each
      Buyer shall reimburse the Collateral Agent upon demand for its ratable share
      of
      any costs or out-of-pocket expenses (including attorney costs) incurred by
      the
      Collateral Agent in connection with the preparation, execution, delivery,
      administration, modification, amendment or enforcement (whether through
      negotiations, legal proceedings or otherwise) of, or legal advice in respect
      of
      rights or responsibilities under, this Agreement, any other Transaction
      Document, or any document contemplated hereby or referred to herein to the
      extent that the Collateral Agent is not reimbursed for such expenses by or
      on
      behalf of the Company. Without limiting the generality of the foregoing, if
      any
      Governmental Authority of any jurisdiction asserts a claim that the Collateral
      Agent did not properly withhold tax from amounts paid to or for the account
      of
      any Buyer (because the appropriate form was not delivered, was not properly
      executed, or because such Buyer failed to notify the Collateral Agent of a
      change in circumstances which rendered the exemption from, or reduction of,
      withholding tax ineffective, or for any other reason) such Buyer shall indemnify
      the Collateral Agent fully for all amounts paid, directly or indirectly, by
      the
      Collateral Agent as tax or otherwise, including penalties and interest, and
      including any taxes imposed by any jurisdiction on the amounts payable to the
      Collateral Agent under this Section
      5.11(b),
      together with all related costs and expenses (including attorney costs). The
      obligation of the Buyers in this Section
      5.11(b)
      shall survive the payment of all Liabilities hereunder.

     

    
      
         

      

      
        24

        
          

        

      

      
         

      

    

    (c) The
      Collateral Agent shall not be deemed to have knowledge or notice of the
      occurrence of any Event of Default or any event that with the giving of notice
      or passage of time would constitute an Event of Default unless the Collateral
      Agent shall have received written notice from a Buyer describing such Event
      of
      Default or event that with the giving of notice or passage of time would
      constitute an Event of Default and stating that such notice is a “notice of
      default”. Upon the occurrence and continuance of an Event of Default, or an
      event that with the giving of notice or passage of time would constitute an
      Event of Default, the Collateral Agent shall take such action under this
      Agreement and/or any other Transaction Documents with respect to such Event
      of
      Default or event that with the giving of notice or passage of time would
      constitute an Event of Default as Collateral Agent shall reasonably be directed
      by the Requisite Buyers in accordance with the terms of the Transaction
      Documents, provided that unless and until the Collateral Agent shall have
      received such directions, the Collateral Agent may (but shall not be obligated
      to) take such action, or refrain from taking such action, with respect of such
      Event of Default or event that with the giving of notice or passage of time
      would constitute an Event of Default or as the Collateral Agent shall deem
      advisable in the best interests of the Buyers. In taking such action or
      refraining from taking such action without specific direction from the Requisite
      Buyers, the Collateral Agent shall use the same degree of care and skill as
      a
      prudent person would exercise or use under the circumstances in the conduct
      of
      such person’s own affairs.

     

    (d) Nothing
      in this Section
      5.11
      shall be
      deemed to limit or otherwise affect the rights of Secured Party or Buyers to
      exercise any remedy provided in this Agreement or any other Transaction
      Document.

     

    (e) The
      Collateral Agent may resign from the performance of all of its functions and
      duties hereunder and/or under the other Financing Documents at any time by
      giving thirty (30) Business Days prior written notice to the Buyers. Such
      resignation shall take effect upon the appointment of a successor Collateral
      Agent pursuant to clause (f) below or as otherwise provided below. 

     

    (f) Upon
      (i)
      the Buyers’ receipt of a notice of resignation by the Collateral Agent in
      accordance with clause (e) above, or (ii) written notice by the Requisite Buyers
      to Collateral Agent of the Requisite Buyers’ election to remove the existing
      Collateral Agent and appoint a successor Collateral Agent, the Requisite Buyers
      shall have the right to appoint a successor Collateral Agent. Upon the
      acceptance of a successor's appointment as Collateral Agent hereunder and notice
      of such acceptance to the retiring Collateral Agent, such successor shall
      succeed to and become vested with all of the rights, powers, privileges and
      duties of the retiring (or retired) Collateral Agent, the retiring Collateral
      Agent's resignation shall become immediately effective and the retiring
      Collateral Agent shall be discharged from all of its duties and obligations
      hereunder and under the other Financing Documents (if such resignation was
      not
      already effective and such duties and obligations not already discharged, as
      provided below in this paragraph). If no such successor shall have been so
      appointed by Requisite Buyers and shall have accepted such appointment within
      thirty (30) days after the retiring Collateral Agent gives notice of its
      resignation or the Requisite Buyers give notice of their election to replace
      the
      retiring Collateral Agent, then the retiring Collateral Agent may, on behalf
      of
      the Buyers (but without any obligation) appoint a successor Collateral Agent
      without the consent of any Buyer. From and following the expiration of such
      thirty (30) day period, Collateral Agent shall have the exclusive right without
      any Person's consent, upon one (1) Business Days' notice to the Buyers, to
      make
      its resignation or removal effective immediately. From and following the
      effectiveness of such notice, (i) the retiring Collateral Agent shall be
      discharged from its duties and obligations hereunder and under the other
      Financing Documents and (ii) all actions, payments, communications and
      determinations provided to be made by, to or through Collateral Agent shall
      instead be made by or to each Buyer directly, until such time as Requisite
      Buyers appoint a Collateral Agent as provided for above in this paragraph.
      The
      provisions of this Agreement shall continue in effect for the benefit of any
      retiring Collateral Agent and its sub-agents after the effectiveness of its
      resignation or removal hereunder and under the other Financing Documents in
      respect of any actions taken or omitted to be taken by any of them while the
      retiring Collateral Agent was acting or was continuing to act as Collateral
      Agent.

     

    
      
         

      

      
        25

        
          

        

      

      
         

      

    

    5.12 No
      Strict Construction.
      The
      language used in this Agreement will be deemed to be the language chosen by
      the
      parties to express their mutual intent, and no rules of strict construction
      will
      be applied against any party.

     

    5.13 Entire
      Agreement.
      This
      Agreement supersedes all other prior oral or written agreements between each
      Debtor, Secured Party, the Buyers and their affiliates and persons acting on
      their behalf with respect to the matters discussed herein, and this Agreement
      and the Transaction Documents and instruments referenced herein and therein
      contain the entire understanding of the parties with respect to the matters
      covered herein and therein.

     

    -
      Remainder of Page Intentionally Left Blank; Signature Page Follows
      -

     

    

     

    
      
         

      

      
        26

        
          

        

      

      
         

      

    

    IN
      WITNESS WHEREOF, the parties hereto have caused this Security Agreement to
      be
      duly executed and delivered as of the day and year first above
      written.

     

    DEBTORS:

     

    GOTO
      COLLEGE HOLDINGS INC., a
      Delaware corporation 

     

    By:
      /s/
      Vishal Garg 

    Name: Vishal
      Garg

    Title: President

    FEIN:
      

     

    EMBARK
      CORP.,
      a
      Delaware corporation

     

    By:
      /s/
      Vishal Garg 

    Name: Vishal
      Garg

    Title: Chief
      Executive Officer

    FEIN:
      

    

    EMBARK
      ONLINE, INC.,
      a
      Delaware corporation

     

    By:
      /s/
      Vishal Garg 

    Name: Vishal
      Garg

    Title: Chief
      Executive Officer

    FEIN:
      

    

    IEMPOWER,
      INC., a
      Delaware corporation

     

    By:
      /s/
      Vishal Garg 

    Name: Vishal
      Garg

    Title: President

    FEIN:
      

    

    MRU
      ORIGINATIONS, INC.,
      a
      Delaware corporation

     

    By:
      /s/
      Vishal Garg 

    Name: Vishal
      Garg

    Title: President

    FEIN:
      

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    MRU
      UNIVERSAL GUARANTY AGENCY, INC.,
      a
      Delaware corporation

     

    By:
      By:
/s/
      Vishal Garg 

    Name: Vishal
      Garg

    Title: President

    FEIN:
      

    

    

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    SECURED
      PARTY:

     

    VIKING
      ASSET MANAGEMENT, LLC, a
      California limited liability company, in its capacity as Collateral Agent for
      the Buyers

     

    By:
      /s/
      S. Michael Rudolph

    Name:
      S.
      Michael Rudolph

    Title:
      CFO - Investment Adviser

     

     

    Notice
      Address:

     

    Viking
      Asset Management, LLC

    600
      Montgomery Street, 44th
      Floor

    San
      Francisco, California 94111

    Attention:
      Michael Rudolph

    Telecopy:
      (415) 981-5301

     

    -
      and
      -

     

    Summerline
      Asset Management, LLC

    70
      West
      Red Oak Lane, 4th Floor

    White
      Plains, New York 10604

    Attention:
      Robert J. Brantman

    Telecopy:
      (914) 697-4767

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    IN
      WITNESS WHEREOF, the parties hereto have caused this Security Agreement to
      be
      duly executed and delivered as of the day and year first above
      written.

    

    BUYERS:

     

    Solely
      for the purposes of Section
      5.11

     

    LONGVIEW
      MARQUIS MASTER FUND, L.P.,
      as
      Buyer

     

    By: Viking
      Asset Management, LLC

    Its: Investment
      Advisor

     

     

    By:
      /s/
      S.
      Michael Rudolph

    Name:
      S.
      Michael Rudolph

    Title:  
      Chief
      Financial Officer

    

     

     

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    EXHIBIT
      A

    

    Form
      of
      Joinder

    Joinder
      to Security Agreement

    

    The
      undersigned, ______________________________, hereby joins in the execution
      of
      that certain Security Agreement dated as of November 20, 2008 (as amended,
      restated, supplemented or otherwise modified from time to time, the
“Security
      Agreement”)
      by
      GOTO COLLEGE HOLDINGS INC., a Delaware corporation, EMBARK CORP., a Delaware
      corporation, EMBARK ONLINE, INC., a Delaware corporation, IEMPOWER, INC., a
      Delaware corporation, MRU ORIGINATIONS, INC., a Delaware corporation, MRU
      UNIVERSAL GUARANTY AGENCY, INC., a Delaware corporation, the Buyers (as defined
      therein), and each other Person that becomes a Debtor or a Buyer thereunder
      after the date thereof and hereof and pursuant to the terms thereof, to and
      in
      favor of Viking Asset Management, LLC, in
      its
      capacity as Collateral Agent for the Buyers.
      By
      executing this Joinder, the undersigned hereby agrees that it is a Debtor
      thereunder and agrees to be bound by all of the terms and provisions of the
      Security Agreement.

    

    The
      undersigned represents and warrants to Secured Party that:

    

    (a) all
      of
      the Equipment, Inventory and Goods owned by such Debtor is located at the places
      as specified on Schedule
      I
      and such
      Debtor conducts business in the jurisdiction set forth on Schedule
      I;
      

    

    (b) except
      as
      disclosed on Schedule
      I,
      none of
      such Collateral is in the possession of any bailee, warehousemen, processor
      or
      consignee; 

    

    (c) the
      chief
      place of business, chief executive office and the office where such Debtor
      keeps
      its books and records are located at the place specified on Schedule
      I;

    

    (d) such
      Debtor (including any Person acquired by such Debtor) does not do business
      or
      has not done business during the past five years under any tradename or
      fictitious business name, except as disclosed on Schedule
      II;

    

    (e) all
      Copyrights, Patents and Trademarks owned or licensed by the undersigned are
      listed in Schedules
      III,
      IV
      and
V,
      respectively;

    

    (f) all
      Deposit Accounts, securities accounts, brokerage accounts and other similar
      accounts maintained by such Debtor, and the financial institutions at which
      such
      accounts are maintained, are listed on Schedule
      VI;

    

    (g) all
      Commercial Tort Claims of such Debtor are listed on Schedule
      VII;

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (h) all
      interests in real property held by such Debtor are listed on Schedule VIII;
      

    

    (i) all
      Equipment (including Motor Vehicles) owned by such debtor are listed on
Schedule
      IX;
      and

    

    (j) all
      other
      representations and warranties made by the Debtors in the Security Agreement
      are
      true, complete and correct in all respects as of the date hereof.

    

    ________________,
      a _____ corporation

    

    

    By:______________________________

    Title:___________________________

    FEIN:____________________________

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    EXHIBIT
      B

    

    Form
      of
      Direction to Financial Institutions

    

    [Insert
      address of applicable Bank]

    

    
      	 	
              Re:

            	
              Account
                No. [________]
                (the
                “Account”)

            

    

    

    To
      Whom
      It May Concern:

    

    The
      undersigned, as the holder of the Account, hereby irrevocably authorizes and
      directs you to, without further action or consent by the undersigned and
      notwithstanding any subsequent objection or contrary direction you may receive
      from the undersigned, provide Summerline Asset Management, LLC, a Delaware
      limited liability company, as collateral agent (the “Collateral
      Agent”),
      at 70
      West Red Oak Lane, 4th Floor, White Plains, New York 10604, Attention: Robert
      J.
      Brantman, or such other address as the Collateral Agent may from time to time
      specify in writing to you, with duplicate copies of all bank statements which
      are sent to the undersigned (until such time as you receive contrary direction
      from the Collateral Agent) and such other information with respect to the
      Account as the Collateral Agent may from time to time reasonably
      request.

    

    The
      undersigned hereby consents to such information being provided to the Collateral
      Agent.

    

    Yours
      truly,

    

    [EMBARK
      CORP., a Delaware corporation][EMBARK ONLINE, INC., a Delaware
      corporation]

    

    

    _______________________

    By:
      _______________________

    Its:
      _______________________

    

    
      
         

      

      
        3

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