As previously reported, on September 17, 2008, Education Empowerment SPV, LLC, a Delaware limited liability company and an affiliate of the MRU Holdings, Inc. (the “Company”), as borrower, entered into the Third Amendment and Restatement of the Receivables Loan and Security Agreement, dated as of April 11, 2007 (the “Third Amendment”), with Autobahn Funding Company LLC, as the lender, DZ Bank AG Deutsche Zentral-Genossenschaftsbank, Frankfurt am Main (“DZ Bank”), as agent for the lender, and Lyon Financial Services, Inc. (d/b/a U.S. Bank Portfolio Services), as the backup servicer, pursuant to which DZ Bank provides the Company and its affiliate with a $200 million total commitment warehouse loan facility (the “DZ Facility”). Among other things, the Third Amendment, along with amendments to certain ancillary documents, amended the DZ Facility to waive through October 31, 2008 the tangible net worth and liquidity ratio covenants with respect to the Company, as the Company would be in violation of these covenants absent such waiver. In addition, as previously disclosed, (i) on October 31, 2008, the Company and DZ Bank agreed to extend such waiver for the tangible net worth and liquidity ratio covenants through November 15, 2008 and (ii) on November 14, 2008, the Company and DZ Bank agreed to extend such waiver for the tangible net worth and liquidity ratio covenants through November 21, 2008.
On November 21, 2008, the Company and DZ Bank agreed to extend such waiver for the tangible net worth and liquidity ratio covenants through December 31, 2008.
On November 21, 2008, the Company also entered into Amendment agreements (each an “Amendment” and together, the “Amendments”) with each of Raza Khan and Vishal Garg, the Company’s co-presidents. Such Amendments amended the employment agreements, dated as of April 1, 2004, by and between Mr. Khan or Mr. Garg, as applicable, and the Company, as successor-in-interest to iempower, inc., as amended by those Waiver and Amendments dated September 29, 2008, as further amended by those Amendments dated October 17, 2008, as further amended by those Waiver and Amendments dated October 31, 2008, as further amended by those Amendments dated November 5, 2008 (the “Employment Agreements”).
The Amendments amended the Employment Agreements to extend the deadline by which the Company or Messrs. Khan or Garg may provide notice of their intention not to renew the Employment Agreements for an additional five years from November 21, 2008 to December 2, 2008.
The foregoing description of the Amendments is qualified in its entirety by reference to the Amendments, which will be attached as exhibits to the Company's quarterly report on Form 10-Q for the quarterly period ended December 31, 2008 which the Company intends to file in February 2009.
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
