MRU HOLDINGS, INC.
 
2004 INCENTIVE PLAN
 
________________________________
 
Restricted Stock Agreement
________________________________
 
THIS Restricted Stock Agreement (the "Agreement") dated as of [ ], by and
between MRU Holdings, Inc., a Delaware corporation (the "Company") and [ ] (the
"Employee"), is entered into as follows:
 
WITNESSETH:
 
WHEREAS, the Company has established the MRU Holdings, Inc. 2004 Incentive Plan,
as amended (the “Plan”), a copy of which is attached hereto or which has been
previously provided to the Employee;
 
WHEREAS, the Compensation Committee of the Board of Directors of the Company has
determined that the Employee be granted shares of Restricted Stock pursuant to
the terms of the Plan and the terms of this Agreement;
 
NOW THEREFORE, in consideration of the foregoing and the mutual covenants
hereinafter set forth:
 
1.
Award of Restricted Stock. The Company hereby awards to Employee on this date,
[   ] shares of its common stock, par value $.001 ("Stock"), subject to the
terms and conditions set forth in this Agreement (the "Award").

 
2.
Issuance of Share Certificates or Book Entry Record. The Company shall, as soon
as administratively feasible after execution of this Agreement by the Employee,
either (1) issue one or more certificates in the name of the Employee
representing the shares of Restricted Stock covered by this Award, or (2) direct
the Company's transfer agent for the Stock to make a book entry record showing
ownership for the Restricted Stock in the name of the Employee, subject to the
terms and conditions of the Plan and this Agreement. If the Restricted Stock
vests, upon satisfaction of any tax withholding requirements, the Employee’s
Restricted Stock will be reflected on the Company’s books and records as vested
Stock. The Employee may request a physical certificate for the Employee’s vested
Stock, and the Committee, in its discretion, may honor such request.

 
3.
Custody of Share Certificates During the Restriction Period. In the event that
the Company issues one or more certificates for the Restricted Stock covered by
this Award in lieu of book entry, during the Restriction Period described below:

 

 
(a)
The certificate or certificates shall bear the following legend:

 
"The transferability of this certificate and the shares of stock represented
hereby are subject to the terms and conditions (including forfeiture) of the
2004 Incentive Plan and a Restricted Stock Agreement. Copies of such Plan and
Restricted Stock Agreement are on file at the headquarters offices of MRU
Holdings, Inc."
 
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(b)
The certificates shall be held in custody by the Company until the restrictions
set forth herein shall have lapsed; and

 

 
(c)
As a condition to receipt of this Award, the Employee hereby authorizes the
Company to issue such instructions to the transfer agent as the Company may deem
necessary or proper to comply with the intent and purposes of this Agreement and
the Plan, including their provisions regarding forfeiture, and that this
paragraph shall be deemed to constitute the stock power, endorsed in blank,
allowing the Company to instruct its transfer agent to cancel any certificate
representing shares that are forfeited by the Employee pursuant to the terms of
the Plan or this Agreement.

 
4.
Terms of the Plan Shall Govern. The Award is made pursuant to, and is subject to
the Plan, including, without limitation, its provisions governing Cancellation
and Rescission of Awards. In the case of any conflict between the Plan and this
Agreement, the terms of the Plan shall control. Unless otherwise indicated, all
capitalized terms contained in this Agreement shall have the meaning assigned to
them in the Plan.

 
5.
Restriction Period. The Restriction Period for the Restricted Stock awarded to
the Employee under this Agreement shall commence with the date of this Agreement
set forth above and shall end, for the percentage of the shares indicated below,
on the date when the Restricted Stock shall have vested in accordance with the
following schedule:

 
Date
Vested Percentage
   
First anniversary of the date of this Agreement
[ ]% of the awarded shares
 
Second anniversary of the date of this Agreement
[ ]% of the awarded shares
 
Third anniversary of the date of this Agreement
[ ]% of the awarded shares

 
During the Restriction Period, the Employee shall not be permitted to sell,
assign, transfer, pledge or otherwise encumber the Restricted Stock awarded
herein.
 
6.
Section 83(b) Election Notice. If the Employee makes an election under Section
83(b) of the Internal Revenue Code of 1986 (the “Code”), as amended, with
respect to the Stock underlying the Employee’s Restricted Stock (a “Section
83(b) election”), the Employee agrees to provide a copy of such election to the
Company within 10 days after filing that election with the Internal Revenue
Service. Exhibit B contains a suggested form of Section 83(b) election.

 
7.
Stockholder Rights. Subject to the restrictions imposed by this Agreement and
the Plan, the Employee shall have, with respect to the Restricted Stock covered
by this Award, all of the rights of a stockholder of the Company holding Stock,
including the right to vote the shares and the right to receive any cash
dividends.

 
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8.
Forfeiture of Stock. Upon the Employee's Termination of Employment during the
Restriction Period, all shares of Stock covered by this Award that remain
subject to restriction shall be forfeited by the Employee; provided however,
that if the Employee's employment is involuntarily terminated during the
Restriction Period by the Company (other than for Cause), or in the event of the
Employee's Retirement during the Restriction Period, the Compensation Committee
shall have the discretion to waive, in whole or in part, any or all remaining
restrictions with respect to any or all of the Restricted Stock covered by this
Award.

 
9.
Change in Control. In the event of a Change in Control, all shares of Stock
covered by this Award shall become free of all restrictions and become fully
vested and transferable.

 
10.
Delivery of Stock. If and when the Restriction Period expires for a share or
shares of Restricted Stock without a prior forfeiture, the Company will deliver
certificate(s) for such share(s) to the Employee.

 
11.
Designation of Beneficiary. Notwithstanding anything to the contrary contained
herein or in the Plan, following the execution of this Agreement, the Employee
may expressly designate a death beneficiary (the “Death Beneficiary”) to the
Employee’s interest, if any, in this Award and any underling Stock. The Employee
shall designate the Death Beneficiary by completing and executing a designation
of beneficiary agreement substantially in the form attached hereto as Exhibit C
(the “Designation of Death Beneficiary”) and delivering an executed copy of the
Designation of Beneficiary to the Company. To the extent the Employee does not
duly designate a beneficiary who survives the Employee, the Employee’s estate
will automatically be the Employee’s beneficiary.

 
12.
No Right to Continued Employment. Nothing contained in the Plan or this
Agreement shall confer upon the Employee any right to continued employment nor
shall it interfere in any way with the right of the Company or any subsidiary or
Affiliate to terminate the employment of the Employee at any time.

 
13.
Code Section 409A. Except to the extent otherwise specifically provided in an
employment agreement between the Employee and the Company, by signing this
Agreement, the Employee acknowledges that the Employee shall be solely
responsible for the satisfaction of any taxes that may arise pursuant to this
Award under Code Sections 409A (regarding deferred compensation) or 4999
(regarding golden parachute excise taxes), and that the Company shall not have
any obligation whatsoever to pay such taxes or otherwise indemnify or hold the
Employee harmless from any or all of such taxes. The Company shall have the sole
discretion to interpret the requirements of the Section 409A, for purposes of
the Plan and this Agreement.

 
14.
Withholding of Taxes. No later than the date as of which an amount first becomes
includible in the Employee's gross income for Federal income tax purposes, the
Employee shall pay to the Company or make arrangements satisfactory to the
Company regarding the payment of, any Federal, state, local or foreign taxes of
any kind required by law to be withheld.

 
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15.
Governing Law. The Award made and actions taken under the Plan and this
Agreement shall be governed by and construed in accordance with the laws of the
State of Delaware without taking into account its conflict of laws provisions.

 
16.
Acceptance of Award. By the Employee's signature below, the Employee accepts the
terms of the Award, as set forth in this Agreement and in the Plan. Unless the
Company otherwise agrees in writing, this Agreement shall not be effective as a
Restricted Stock Award if a copy of this Agreement is not signed and returned to
the Company.

 
17.
Modifications. This Agreement may be modified or amended at any time, in
accordance with Section 16 of the Plan and provided that the Employee must
consent in writing to any modification that adversely and materially affects any
rights or obligations under this Agreement (with such an affect being presumed
to arise from a modification that would trigger a violation of Section 409A of
the Code).

 
18.
Headings. Section and other headings contained in this Agreement are for
reference purposes only and are not intended to describe, interpret, define or
limit the scope or intent of this Agreement or any provision hereof.

 
19.
Severability. Every provision of this Agreement and of the Plan is intended to
be severable. If any term hereof is illegal or invalid for any reason, such
illegality or invalidity shall not affect the validity or legality of the
remaining terms of this Agreement.

 
20.
Counterparts. This Agreement may be executed by the parties hereto in separate
counterparts, each of which when so executed and delivered shall be an original,
but all such counterparts shall together constitute one and the same instrument.

 
21.
Notices. Any notice or communication required or permitted by any provision of
this Agreement to be given to the Employee shall be in writing and shall be
delivered electronically, personally, or sent by certified mail, return receipt
requested, addressed to the Employee at the last address that the Company had
for the Employee on its records. Each party may, from time to time, by notice to
the other party hereto, specify a new address for delivery of notices relating
to this Agreement. Any such notice shall be deemed to be given as of the date
such notice is personally or electronically delivered or properly mailed.

 
22.
Binding Effect. Subject to the limitations stated above, this Agreement shall be
binding upon and inure to the benefit of the parties' respective heirs, legal
representatives successors and assigns.

 
*    *    *    *    *
 
Signature Page to Follow
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IN WITNESS WHEREOF, MRU Holdings, Inc. and the Employee have executed this
Agreement to be effective as of the date first written above.
 
 

 
MRU Holdings, Inc.
         
By:
   
 
Title:
   

 
I acknowledge receipt of a copy of the Plan (either as an attachment hereto or
that has been previously received by me) and that I have carefully read this
Agreement and the Plan. I agree to be bound by all of the provisions set forth
in this Agreement and the Plan.
 
   
 
   
 
Date
 
Employee
 

 
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EXHIBIT A
MRU HOLDINGS, INC.
 
2004 INCENTIVE PLAN
 
______________________
 
Plan Document
______________________
 
 
 
 
 

 
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EXHIBIT B
MRU HOLDINGS, INC.
 
2004 INCENTIVE PLAN
 
_______________________________
 
Section 83(b) Election Form
______________________________
 
Attached is an Internal Revenue Code Section 83(b) Election Form. IF YOU WISH TO
MAKE A SECTION 83(b) ELECTION, YOU MUST DO SO WITHIN 30 DAYS AFTER THE DATE THE
RESTRICTED SHARES COVERED BY THE ELECTION WERE TRANSFERRED TO YOU. In order to
make the election, you must completely fill out the attached form and file one
copy with the Internal Revenue Service office where you file your tax return. In
addition, one copy of the statement also must be submitted with your income tax
return for the taxable year in which you make this election. Finally, you also
must submit a copy of the election form to the Company within 10 days after
filing that election with the Internal Revenue Service. A Section 83(b) election
normally cannot be revoked.
 

 
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MRU HOLDINGS, INC.
 
2004 INCENTIVE PLAN
 
________________________________________________________
 
Election to Include Value of Restricted Stock in Gross Income
in Year of Transfer Under Internal Revenue Code Section 83(b)
_________________________________________________________
 
Pursuant to Section 83(b) of the Internal Revenue Code, I hereby elect within 30
days after receiving the property described herein to be taxed immediately on
its value specified in item 5 below.
 

1.
My General Information:

 
Name:
  
Address:
    
    
S.S.N.
 
or T.I.N.:
   

2.
Description of the property with respect to which I am making this election:

____________________ shares of ___________ stock of MRU Holdings, Inc. (the
“Restricted Stock”).

3.
The Restricted Stock was transferred to me on ______________ ___, 20__. This
election relates to the 20____ calendar taxable year.

4.
The Restricted Stock is subject to the following restrictions:

The Restricted Stock is forfeitable until they are earned in accordance with the
MRU Holdings, Inc. 2004 Incentive Plan, as amended (the “Plan”) and the
Restricted Stock Agreement (“Agreement”) made pursuant to the Plan. The
Restricted Stock generally is not transferable until my interest becomes vested
and nonforfeitable, pursuant to the Agreement and the Plan.
 
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5.
Fair market value:

The fair market value at the time of transfer (determined without regard to any
restrictions other than restrictions which by their terms never will lapse) of
the Restricted Stock with respect to which I am making this election is $_____
per share.

6.
Amount paid for Restricted Stock:

The amount I paid for the Restricted Stock is $____ per share.

7.
Furnishing statement to employer:

A copy of this statement has been furnished to my employer, ______________. If
the transferor of the Restricted Stock is not my employer, that entity also has
been furnished with a copy of this statement.

8.
Agreement or Plan not affected:

Nothing contained herein shall be held to change any of the terms or conditions
of the Agreement or the Plan.

Dated: ____________ __, 200_.
 

 
   
   
Taxpayer
 

 
 
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EXHIBIT C
 
MRU HOLDINGS, INC.
 
2004 INCENTIVE PLAN
 
_________________________________

Designation of Death Beneficiary
_________________________________
 
In connection with the Award(s) designated below that I have received pursuant
to the MRU Holding, Inc. 2004 Incentive Plan, as amended (the “Plan”), I hereby
designate the person specified below as the beneficiary upon my death of my
interest in such Award(s). This designation shall remain in effect until revoked
in writing by me.
 
Name of Beneficiary:
    
Address:
                 
Social Security No.:
    

 
This beneficiary designation relates to any and all of my rights under the
following Award or Awards:
 
¨  any Award that I have received or ever receive under the Plan.
 
¨  the _________________ Award that I received pursuant to an award agreement
dated _________ __, ____ between myself and the Company.
 
I understand that this designation operates to entitle the above named
beneficiary, in the event of my death, to any and all of my rights under the
Award(s) designated above from the date this form is delivered to the Company
until such date as this designation is revoked in writing by me, including by
delivery to the Company of a written designation of beneficiary executed by me
on a later date.
 
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Date:
 
 
By:
  
 
 
Name of Participant

Sworn to before me this
____day of ____________, 200_
___________________________
Notary Public
 
County of          __________________
State of              __________________
 
 
 
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