Document:

Unassociated Document

     

     

    Exhibit
4.2

     

     

    
      This SUBORDINATION AGREEMENT
(this “Agreement”),
dated as of July 31, 2008, is among MRU Holdings, Inc., a Delaware
corporation (the “Company”), [●] (the “Subordinated Creditor”), the
Buyers (as defined in the Purchase Agreement described below), and Viking Asset
Management, LLC, a California limited liability company, in its capacity as
collateral agent for itself and for the Buyers (including any successor agent,
hereinafter, the “Collateral
Agent”).

       

      R
E C I T A L S

       

      A.  Company
has executed and delivered to the Buyers those certain secured senior notes
dated as of October 19, 2007 (as any of the same may be amended, supplemented,
restated or modified and in effect from time to time, the “Note”).  The Note
was issued pursuant to that certain Securities Purchase Agreement dated as of
October 19, 2007 (as the same has been and hereafter may be amended, modified,
supplemented or restated, the “Purchase Agreement”) by and
among the Company and Buyers, and pursuant to which the Buyers have made certain
loans (“Loans”) to the
Company.

       

      B.  Each of
Embark Corp., a Delaware corporation, Embark Online, Inc., a Delaware
corporation, Goto College Holdings Inc., a Delaware corporation, iempower, Inc.,
a Delaware corporation, MRU Originations, Inc., a Delaware corporation and MRU
Universal Guaranty Agency, Inc., each such entity, together with each other
person or entity who becomes a party to the Guaranty (as defined herein) by
execution of a joinder in the form of Exhibit A attached
thereto, is referred to individually as a “Viking Guarantor,” and collectively as the
“Viking Guarantors”)
have executed a Guaranty dated as of October 19, 2007 (as the same may be
amended, supplemented, restated or modified and in effect from time to time, the
“Guaranty”) in favor of
the Collateral Agent in respect of Company’s obligations under the Purchase
Agreement and the Note.

       

      C.  The
Company and the Subordinated Creditor have entered into a promissory note and a
Note and Warrant Purchase Agreement, dated as of even date herewith, pursuant to which, among
other things, the Subordinated Creditor has extended credit to the Company in
the aggregate original principal amount of [●] Dollars ($[●]) (as it may be
amended, supplemented, restated or otherwise modified from time to time as
permitted hereunder and including any note issued in exchange or substitution
therefor, the “Subordinated
Note”), and pursuant to which the Company has agreed that:

       

      
        	
                1)  

              	
                to
      the extent the Company issues and sells equity securities (the “Equity Securities”)
      pursuant to an equity financing (including the issuance of Equity
      Securities upon the conversion or exchange of debt securities (the “Automatically
      Converting  Debt Securities”) issued after the date
      hereof in connection with such equity financing) in which the Company
      closes a total commitment of at least Seventy Five Million Dollars
      ($75,000,000) (inclusive of the consideration received for the issuance of
      the Company’s Series B-2 Convertible Preferred Stock and all other
      securities that convert into Equity Securities) in gross proceeds and 60%
      of such gross proceeds (at least $45,000,000) is attributable to one
      investor or a group of related investors  (a “Qualifying Financing”),
      then:

              

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

       

      
        	
                a.  

              	
                
                  upon
      the issuance of the Automatically Converting Debt Securities, if any, the
      Company shall, exclusively with net proceeds received from the sale of the
      Automatically Converting Debt Securities ("Debt
      Proceeds"),

                

              

      

       

      
        	
                ·  

              	
                first, redeem
      Five Million Six Hundred Thousand Dollars ($5,600,000) in principal amount
      of the Note pursuant to the terms of the Note (the “Required
      Redemption”),

              

      

       

      
        	
                ·  

              	
                second, to the
      extent there remain Debt Proceeds therefor, pay the holders of the Twelve
      Million Seven Hundred Fifty Thousand in principal amount of promissory
      notes issued by the Company on July 10, 2008 (the “July 10, 2008 Promissory
      Notes”),
      which holders are subject to a subordination agreement among the
      such holders and the parties hereto (other than the Subordinated Creditor)
      that is comparable to this Agreement, the outstanding principal amount of
      the July 10, 2008 Promissory Notes together with accrued but unpaid
      interest thereon, pro rata based on the outstanding principal amount of
      each July 10, 2008 Promissory Note,
and

              

      

       

      
        	
                ·  

              	
                third, to the
      extent there remain Debt Proceeds therefor, pay (a) the outstanding
      principal amount of the Subordinated Note together with accrued but unpaid
      interest thereon, (b) the holder of a promissory note issued by the
      Company on July 15, 2008 in the principal amount of Six Hundred Thousand
      (the “July 15, 2008
      Promissory Note”) the outstanding principal amount of the July 15,
      2008 Promissory Note together with accrued but unpaid interest thereon and
      (c) any future promissory notes issued on or after the date hereof on
      similar terms with the Subordinated Note (the “Future Notes”), pro rata
      based on the outstanding principal amount and accrued interest of each of
      the Subordinated Note, the July 15, 2008 Promissory Note and the Future
      Notes;

              

      

       

      
        	
                b.  

              	
                upon
      the issuance of the Equity Securities and after consummation of the
      Required Redemption (to the extent the Required Redemption was not
      consummated pursuant to the immediately preceding clause a.), the Company
      shall pay

              

      

       

      
        	
                ·  

              	
                first, the
      outstanding principal amount of the July 10, 2008 Promissory Notes,
      together with accrued but unpaid interest thereon,
  and

              

      

       

      
        	
                ·  

              	
                second, the
      outstanding principal amount of (a) the Subordinated Note, together with
      accrued but unpaid interest thereon, (b) the July 15, 2008 Promissory
      Note, together with accrued but unpaid interest thereon, and (c) Future
      Notes, together with accrued but unpaid interest thereon, each to the
      extent not paid in accordance

              

      

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

       

       

      
        	
                  

              	
                with
      the immediately preceding clause a., (the Required Redemption and the
      payments thereafter of principal and interest on the Subordinated Note,
      the July 10, 2008 Promissory Notes and the July 15, 2008 Promissory Note
      as described in this clause b. and clause a. immediately above, following
      a Qualifying Financing, shall collectively be referred to herein as the
      “Subordinated Notes
      Prepayment”)

              

      

       

      in each
case in accordance with the terms of the Subordinated Note, as in effect on the
date hereof, without amendment or modification hereafter, unless such amendment
is agreed to in writing by the Collateral Agent.

       

      In addition, in connection with the
issuance of the Subordinated Note, the Company has issued to the Subordinated
Creditor a warrant to purchase in the aggregate shares of the Company's common
stock, par value $0.001 per share (the "Common Stock"), at a per share exercise
price of $1.40 (the "Warrant").

       

      NOW,
THEREFORE, in reliance upon this Agreement, and as required by the terms of the
Purchase Agreement, and for other good and valuable consideration, the receipt
and sufficiency of which hereby are acknowledged, the parties hereto hereby
agree as follows:

       

      1.           
Definitions.  All
capitalized terms used but not elsewhere defined in this Agreement shall have
the respective meanings ascribed to such terms in the Purchase Agreement and the
Note. The following terms shall have the following meanings in this
Agreement:

       

      Buyers shall mean holders of
Senior Indebtedness including, without limitation, any holder of any Senior
Indebtedness after the consummation of any Permitted Refinancing.

       

      Enforcement
Action is defined in subsection 2.7.

       

      Loan
Documents means the collective reference to the Purchase Agreement and
the Note, the Security Agreement, the Guaranty and each of the other agreements
to which the Company or any Viking Guarantor is a party or is bound in
connection with the transactions contemplated under the Purchase Agreement and
the Note.

       

      Paid in
Full or Payment
in Full shall mean the indefeasible payment in full in cash of all Senior
Indebtedness and termination of all commitments to lend under the Loan Documents
and Permitted Refinancing Loan Documents.

      

      Permitted
Refinancing means any refinancing of the Senior
Indebtedness.

       

      Permitted
Refinancing Loan Documents means any and all agreements, documents and
instruments executed in connection with a Permitted Refinancing of Senior
Indebtedness.

       

      Proceeding
is defined in subsection 2.3.

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

       

       

      Senior
Indebtedness shall mean the obligations, liabilities and other amounts
owed under the Purchase Agreement, the Note or any other Loan Document including
all interest, fees, expenses, indemnities and enforcements costs, whether before
or after the commencement of a Proceeding and without regard to whether or not
an allowed claim, and all obligations and liabilities incurred with respect to
Permitted Refinancings, together with any amendments, restatements,
modifications, renewals or extensions of any thereof.

       

      Subordinated
Creditor shall mean the “Subordinated Creditor” that is a signatory to
this Agreement and any other holder of the Subordinated Note or any other
Subordinated Indebtedness from time to time as permitted hereunder.

       

      Subordinated
Default shall mean a default in the payment of the Subordinated
Indebtedness, or performance of any term, covenant or condition contained in the
Subordinated Indebtedness Documents or the occurrence of any event or condition,
which default, event or condition permits the Subordinated Creditor to
accelerate or demand payment of all or any portion of the Subordinated
Indebtedness.

       

      Subordinated
Default Notice shall mean a written notice to Collateral Agent pursuant
to which Collateral Agent is notified of the existence of a Subordinated
Default, which notice incorporates a reasonably detailed description of such
Subordinated Default.

       

      Subordinated
Indebtedness shall mean all of the obligations of the Company to the
Subordinated Creditor evidenced by the Subordinated Note and all other amounts
now or hereafter owed by the Company to the Subordinated Creditor pursuant to
the Subordinated Indebtedness Documents.

       

      Subordinated
Indebtedness Documents shall mean the Subordinated Note and all other
documents and instruments evidencing or pertaining to any portion of the
Subordinated Indebtedness, as amended, supplemented, restated or otherwise
modified from time to time as permitted hereunder.

       

      2.           
Subordination of
Subordinated Indebtedness to Senior Indebtedness.

       

      2.1  Subordination.  The
payment of any and all of the Subordinated Indebtedness hereby expressly is
subordinated, to the extent and in the manner set forth herein, to the Payment
in Full of the Senior Indebtedness.  Each holder of Senior
Indebtedness, whether now outstanding or hereafter arising, shall be deemed to
have acquired Senior Indebtedness in reliance upon the provisions contained
herein.

       

      2.2  Restriction
on Payments.  Notwithstanding any provision of the Subordinated
Indebtedness Documents to the contrary and in addition to any other limitations
set forth herein or therein, no payment (whether made in cash, securities
(except as set forth in the following sentence) or other property or by set-off)
of principal, interest or any other amount due with respect to the Subordinated
Indebtedness shall be made or received, and no Subordinated Creditor shall
exercise any right of set-off or recoupment with respect to any Subordinated
Indebtedness, until all of the Senior Indebtedness is Paid in
Full.  Notwithstanding anything to the contrary contained in
the

       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

       

       

      preceding
sentence or in the Loan Documents, the following shall not be deemed a violation
of (i) this Subordination Agreement or (ii) the Loan Documents:

       

      (i)           the
Subordinated Notes Prepayment; and

       

      (ii)           the
issuance of shares of Common Stock to the Subordinated Creditor upon the
exercise of the Warrant,

       

      in each
case in accordance with the terms of the Subordinated Note and the Warrant, as
in effect on the date hereof, without amendment or modification hereafter,
unless such amendment is agreed to in writing by the Collateral
Agent.

       

      For the
avoidance of doubt, the Required Redemption shall not relieve the Company of its
obligation to redeem principal of the Note on the Mandatory Early Redemption
Date (as defined in the Note) or reduce the Mandatory Early Redemption Amount
(as defined in the Note) (i.e., the Required Redemption
shall not, for purposes of the proviso at the end of the first sentence of
Section 3(b) of the Note, be treated as the payment of an Aggregate Early
Redemption Amount pursuant to Section 3(c) of the Note prior to the Mandatory
Early Redemption Date).

       

      2.3      Proceedings.  In
the event of any insolvency, bankruptcy, receivership, custodianship,
liquidation, reorganization, assignment for the benefit of creditors or other
proceeding for the liquidation, dissolution or other winding up of the Company
or any of the Viking Guarantors or any of their respective properties (a “Proceeding”):

       

      (i)           the
Buyers shall be entitled to receive payment in full in cash of the Senior
Indebtedness before the Subordinated Creditor is entitled to receive any payment
upon the Subordinated Indebtedness, and Buyers shall be entitled to receive for
application in payment such Senior Indebtedness any payment or distribution of
any kind or character, whether in cash, property or securities or by set-off or
otherwise, which may be payable or deliverable in any such Proceedings in
respect of the Subordinated Indebtedness;

       

      (ii)           any
payment or distribution of assets of the Company or any Viking Guarantor of any
kind or character, whether in cash, property or securities, by set-off or
otherwise, to which the Subordinated Creditor would be entitled pursuant to the
Subordinated Indebtedness but for the provisions hereof shall be paid by the
liquidating trustee or agent or other Person making such payment or
distribution, whether a trustee in bankruptcy, a receiver or liquidating trustee
or otherwise, directly to the Collateral Agent for the benefit of Buyers until
the Senior Indebtedness shall have been Paid in Full, and the Subordinated
Creditor acknowledges and agrees that such payment or distribution may,
particularly with respect to interest on Senior Indebtedness after the
commencement of a Proceeding, result in the Subordinated Creditor receiving less
than it would otherwise receive;

       

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

       

       

      (iii)           the
Subordinated Creditor hereby irrevocably (x) authorizes, empowers and directs
all receivers, trustees, debtors in possession, liquidators, custodians,
conservators and others having authority in the premises to effect all such
payments and deliveries, and the Subordinated Creditor also irrevocably
authorizes, empowers and directs, the Collateral Agent until the Senior
Indebtedness shall have been Paid in Full, to demand, sue for, collect and
receive every such payment or distribution, and (y) agrees to execute and
deliver to the Collateral Agent and the Buyers all such further instruments
confirming the authorization referred to in the foregoing clause (x);
and

       

      (iv)           the
Subordinated Creditor hereby irrevocably authorizes, empowers and appoints
Collateral Agent (until the Senior Indebtedness shall have been Paid in Full) as
its agent and attorney in fact to (x) execute, verify, deliver and file such
proofs of claim upon the failure of the Subordinated Creditor promptly to do so
(and in any event prior to thirty (30) days before the expiration of the time to
file any proof) and (y) vote such claims in any such Proceeding; provided that
no holder of Senior Indebtedness shall have any obligation to execute, verify,
deliver and/or file any such proof of claim or vote such claim.  In
the event the Collateral Agent or any Buyer (or any agent, designee or nominee
thereof) votes any claim in accordance with the authority granted hereby, the
Subordinated Creditor shall not be entitled to change or withdraw such
vote.

       

      The
Senior Indebtedness shall continue to be treated as Senior Indebtedness and the
provisions hereof shall continue to govern the relative rights and priorities of
Buyers and the Subordinated Creditor even if all or part of the Senior
Indebtedness or the security interests securing the Senior Indebtedness are
subordinated, set aside, avoided or disallowed in connection with any such
Proceeding and the provisions hereof shall be reinstated if at any time any
payment of any of the Senior Indebtedness is rescinded or must otherwise be
returned by Collateral Agent, any Buyer or any agent, designee or nominee of
such holder.

       

      2.4     
Incorrect
Payments.  If any payment (whether made in cash, securities or
other property) not permitted under this Agreement is received by the
Subordinated Creditor on account of the Subordinated Indebtedness before all
Senior Indebtedness is Paid in Full, such payment shall not be commingled with
any asset of the Subordinated Creditor, shall be held in trust by the
Subordinated Creditor for the benefit of the Buyers and shall promptly be paid
over to the Collateral Agent or its designated representative, for application
(in accordance with the Purchase Agreement, the Note or the Permitted
Refinancing Loan Documents) to the payment of the Senior Indebtedness then
remaining unpaid, until all of the Senior Indebtedness is Paid in
Full.

       

      2.5    
Sale,
Transfer.  No Subordinated Creditor shall sell, assign, dispose
of or otherwise transfer all or any portion of the Subordinated Indebtedness (a)
without giving

       

      
        
          
          

        

        
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        prior
written notice of such action to Collateral Agent, (b) unless prior to the
consummation of any such action, the transferee thereof shall execute and
deliver to Collateral Agent a joinder to this Agreement, or an agreement
substantially identical to this Agreement and acceptable to the Collateral
Agent, in either case providing for the continued subordination and forbearance
of the Subordinated Indebtedness to the Senior Indebtedness as provided herein
and for the continued effectiveness of all of the rights of Collateral Agent and
Buyers arising under this Agreement and (c) unless following such sale,
assignment, pledge, disposition or other transfer, there shall either be (i) no
more than four (4) holders of Subordinated Indebtedness or (ii) one Person
acting as agent for all holders of the Subordinated Indebtedness pursuant to
documentation reasonably satisfactory to Collateral Agent such that any notices
and communications to be delivered to the Subordinated Creditor hereunder and
any consents required by Subordinated Creditor shall be made to or obtained from
such agent and shall be binding on the Subordinated Creditor as if directly
obtained from the Subordinated Creditor.  In the event of a permitted
sale, assignment, disposition or other transfer, the Subordinated Creditor
engaging in such sale, assignment, disposition or other transfer, prior to the
consummation of any such action, shall cause the transferee thereof to execute
and deliver to Collateral Agent a joinder to this Agreement, or an agreement
substantially identical to this Agreement and acceptable to the Collateral
Agent, in either case providing for the continued subordination and forbearance
of the Subordinated Indebtedness to the Senior Indebtedness as provided herein
and for the continued effectiveness of all of the rights of Buyers and
Collateral Agent arising under this Agreement.  Notwithstanding the
failure to execute or deliver any such agreement, the subordination effected
hereby shall survive any sale, assignment, disposition or other transfer of all
or any portion of the Subordinated Indebtedness, and the terms of this Agreement
shall be binding upon the successors and assigns of the Subordinated Creditor,
as provided in Section 10 below.

      

       

      2.6     
Legends.  Until
the Senior Indebtedness is Paid in Full, each of the Subordinated Indebtedness
Documents at all times shall contain in a conspicuous manner the following
legend:

       

      “This
Note and the indebtedness evidenced hereby are subordinate in the manner and to
the extent set forth in that certain Subordination Agreement (the “Subordination
Agreement”) dated as of July 31, 2008 among MRU Holdings, Inc., a Delaware
corporation, [●] and Viking Asset
Management L.L.C, a California limited liability company, to the Senior
Indebtedness (as defined in the Subordination Agreement); and each holder of
this Note, by its acceptance hereof, shall be bound by the provisions of the
Subordination Agreement.”

       

      2.7    
Restriction on Action by
Subordinated Creditor.

       

      (a)  Until the
Senior Indebtedness is Paid in Full and notwithstanding anything contained in
the Subordinated Indebtedness Documents, the Purchase Agreement, the other Loan
Documents or the Permitted Refinancing Loan Documents to

       

      
        
          
          

        

        
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      the
contrary, no Subordinated Creditor shall, without the prior written consent of
Collateral Agent, agree to any amendment, modification or supplement to the
Subordinated Indebtedness Documents, the effect of which is to (i) increase the
maximum principal amount of the Subordinated Indebtedness or rate of interest
(or cash pay rate of interest) on any of the Subordinated Indebtedness, (ii)
shorten the dates upon which payments of principal or interest on the
Subordinated Indebtedness are due, (iii) change in a manner adverse to the
Company or add any event of default or add or make more restrictive any covenant
with respect to the Subordinated Indebtedness, (iv) change the redemption,
prepayment or put provisions of the Subordinated Indebtedness, (v) alter the
subordination provisions with respect to the Subordinated Indebtedness,
including, without limitation, subordinating the Subordinated Indebtedness to
any other debt, (vi) shorten the maturity date of any of the Subordinated
Indebtedness or otherwise alter the repayment terms of the Subordinated
Indebtedness in a manner adverse to the Company, (vii) take any liens in any
assets of the Company or any of the Viking Guarantors or any other assets
securing the Senior Indebtedness or (viii) obtain any guaranties or credit
support from any Person or (ix) change or amend any other term of the
Subordinated Indebtedness Documents if such change or amendment would increase
the obligations of the Company or confer additional material rights on the
Subordinated Creditor or any other holder of the Subordinated Indebtedness in a
manner adverse to the Company, Collateral Agent or Buyers.

       

      (b)  Until the
Senior Indebtedness is Paid in Full, no Subordinated Creditor shall, without the
prior written consent of Collateral Agent, take or continue any action, or
exercise any rights, remedies or powers in respect of the Subordinated Note or
any other Subordinated Indebtedness Documents, or exercise or continue to
exercise any other right or remedy at law or in equity that the Subordinated
Creditor might otherwise possess, to collect any amount due and payable in
respect of any Subordinated Note or any of the other Subordinated Indebtedness,
including, without limitation, the acceleration of the Subordinated
Indebtedness, the commencement of any action to enforce payment or foreclosure
on any lien or security interest, the filing of any petition in bankruptcy or
the taking advantage of any other insolvency law of any jurisdiction (any of the
foregoing, an “Enforcement
Action”).  If any Subordinated Creditor shall attempt to take
any Enforcement Action or otherwise seek to collect or realize upon any of the
Subordinated Indebtedness in violation of the terms hereof, the holders of the
Senior Indebtedness may, by virtue of the terms hereof, restrain any such
Enforcement Action or other action, either in its own name or in the name of the
Company.

       

      (c)  Until the
Senior Indebtedness is Paid in Full, any Liens of Subordinated Creditor in the
Collateral which may exist in breach of the Subordinated Creditor’s agreement
pursuant to subsection 2.7(a)(vii) or Section 18 of this Agreement shall be and
hereby are subordinated for all purposes and in all respects to the Liens of
Collateral Agent and Buyers in the Collateral, regardless of the time, manner or
order of perfection of any such Liens.  In the event that a
Subordinated Creditor obtains any Liens in the Collateral in violation of
subsection 2.7(a)(vii) or Section 18 of this Agreement, such Subordinated
Creditor (i) shall (or shall cause its agent) to promptly execute and deliver to
Collateral Agent such termination statements and releases as Collateral Agent
shall request to effect the release of the Liens of the Subordinated Creditor in
such

       

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

      

       

       

      Collateral
and (ii) shall be deemed to have authorized Collateral Agent to file any and all
termination statements required by Collateral Agent in respect of such Liens. In
furtherance of the foregoing, each Subordinated Creditor hereby irrevocably
appoints Collateral Agent as its attorney-in-fact, with full authority in the
place and stead of the Subordinated Creditor and in the name of the Subordinated
Creditor or otherwise, to execute and deliver any document or instrument which
the Subordinated Creditor may be required to deliver pursuant to this subsection
2.7(c).

       

      3.           
Continued
Effectiveness of this Agreement; Modifications to Senior
Indebtedness.

       

      (a)  The terms
of this Agreement, the subordination effected hereby, and the rights and the
obligations of Subordinated Creditor, Collateral Agent and Buyers arising
hereunder, shall not be affected, modified or impaired in any manner or to any
extent by: (i) any amendment or modification of or supplement to the Purchase
Agreement, any other Loan Document or any Permitted Refinancing Loan Document or
any Subordinated Indebtedness Document; (ii) the validity or enforceability of
any of such documents; or (iii) any exercise or non-exercise of any right, power
or remedy under or in respect of the Senior Indebtedness or the Subordinated
Indebtedness or any of the instruments or documents referred to in clause (i)
above.

       

      (b)  Collateral
Agent and Buyers may at any time and from time to time in their sole discretion,
renew, amend, refinance, extend or otherwise modify the terms and provisions of
Senior Indebtedness (including, without limitation, the terms and provisions
relating to the principal amount outstanding thereunder, the rate of interest
thereof, the payment terms thereof and the provisions thereof regarding default
or any other matter) or exercise (or refrain from exercising) any of their
rights under the Loan Documents, all without notice to or consent from the
Subordinated Creditor and without incurring liability to the Subordinated
Creditor and without impairing or releasing the obligations of the Subordinated
Creditor under this Agreement.  No compromise, alteration, amendment,
renewal, restatement, refinancing or other change of, or waiver, consent or
other action in respect of any liability or obligation under or in respect of,
any terms, covenants or conditions of Senior Indebtedness or the Loan Documents,
whether or not in accordance with the provisions of the Senior Indebtedness,
shall in any way alter or affect any of the subordination provisions
hereof.

       

      4.           
Representations
and Warranties.

       

      The
Subordinated Creditor hereby represents and warrants (as to itself and not as to
any other Subordinated Creditor) to Collateral Agent and Buyers as
follows:

       

      4.1  Existence
and Power.  The Subordinated Creditor is duly organized,
validly existing and in good standing under the laws of the state of its
organization.

       

      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

      

       

       

      4.2  Authority.  The
Subordinated Creditor has full power and authority to enter into, execute,
deliver and carry out the terms of this Agreement and to incur the obligations
provided for herein, all of which have been duly authorized by all proper and
necessary action and are not prohibited by the organizational documents of the
Subordinated Creditor.

       

      4.3  Binding
Agreements.  This Agreement, when executed and delivered, will
constitute the valid and legally binding obligation of the Subordinated Creditor
enforceable in accordance with its terms.

       

      4.4  Conflicting
Agreements; Litigation.  No provisions of any mortgage,
indenture, contract, agreement, statute, rule, regulation, judgment, decree or
order binding on the Subordinated Creditor or affecting the property of the
Subordinated Creditor conflicts with, or requires any consent which has not
already been obtained under, or would in any way prevent the execution, delivery
or performance of the terms of this Agreement.  The execution,
delivery and carrying out of the terms of this Agreement will not constitute a
default under, or result in the creation or imposition of, or obligation to
create, any Lien upon the property of the Subordinated Creditor pursuant to the
terms of any such mortgage, indenture, contract or agreement.  No
pending or, to the best of the Subordinated Creditor’s knowledge, threatened,
litigation, arbitration or other proceedings if adversely determined would in
any way prevent the performance of the terms of this Agreement.

       

      4.5  No
Divestiture.  On the date hereof, the Subordinated Creditor
which is signatory hereto is the current owner and holder of its Subordinated
Note and all other Subordinated Indebtedness Documents.

       

      4.6  Default
under Subordinated Indebtedness Documents.

       

      (a)  To the
knowledge of the Subordinated Creditor, on the date hereof, no default exists
under or with respect to the Subordinated Note or any of the other Subordinated
Indebtedness Documents.

       

      (b)      The
Company hereby represents and warrants to Collateral Agent and Buyers that the
signatory to this Agreement under the heading “Subordinated Creditor”
constitutes the only holder of the Subordinated Note and the other Subordinated
Indebtedness.

       

      5.          
Cumulative
Rights, No Waivers.  Each and every right, remedy and power
granted to Collateral Agent or Buyers hereunder shall be cumulative and in
addition to any other right, remedy or power specifically granted herein, in the
Purchase Agreement, the other Loan Documents or Permitted Refinancing Loan
Documents or now or hereafter existing in equity, at law, by virtue of statute
or otherwise, and may be exercised by Collateral Agent or Buyers, from time to
time, concurrently or independently and as often and in such order as Collateral
Agent or Buyers may deem expedient.  Any failure or delay on the part
of Collateral Agent or Buyers in exercising any such right, remedy or power, or
abandonment or discontinuance of steps to enforce the same, shall not operate as
a waiver thereof or affect Collateral Agent’s or Buyers’

       

      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

      

       

       

      right
thereafter to exercise the same, and any single or partial exercise of any such
right, remedy or power shall not preclude any other or further exercise thereof
or the exercise of any other right, remedy or power, and no such failure, delay,
abandonment or single or partial exercise of Collateral Agent’s or Buyers’
rights hereunder shall be deemed to establish a custom or course of dealing or
performance among the parties hereto.

       

      6.           
Modification.  Any
modification or waiver of any provision of this Agreement, or any consent to any
departure by Collateral Agent or any Subordinated Creditor therefrom, shall not
be effective in any event unless the same is in writing and signed by Collateral
Agent and the holders of at least 51% of the then outstanding principal balance
of the Subordinated Note, and then such modification, waiver or consent shall be
effective only in the specific instance and for the specific instance and for
the specific purpose given.  Any notice to or demand on any
Subordinated Creditor in any event not specifically required of Collateral Agent
hereunder shall not entitle any Subordinated Creditor to any other or further
notice or demand in the same, similar or other circumstances unless specifically
required hereunder.

       

      7.           
Additional
Documents and Actions.  The Subordinated Creditor at any time,
and from time to time, after the execution and delivery of this Agreement, upon
the request of Collateral Agent and at the expense of Company, will promptly
execute and deliver such further documents and do such further acts and things
as Collateral Agent may request in order to effect fully the purposes of this
Agreement.

       

      8.           
Notices.  Any
notices, consents, waivers or other communications required or permitted to be
given under the terms of this Agreement must be in writing and will be deemed to
have been delivered:  (i) upon receipt, when delivered personally;
(ii) upon receipt, when sent by facsimile (provided confirmation of transmission
is mechanically or electronically generated and kept on file by the sending
party); or (iii) one (1) Business Day after deposit with a nationally recognized
overnight delivery service, in each case properly addressed to the party to
receive the same.  The addresses and facsimile numbers for such
communications shall be:

       

      

       

      
        	
                If
      to a Subordinated

                Creditor:

              	
                [address]

                 

              
	
                With
      a copy to:

              	
                To
      Be Provided, as and when appropriate

                 

              
	
                If
      to the Company:

              	
                MRU
      Holdings, Inc.

                590
      Madison Avenue, 13th
      Floor

                New
      York, NY 10022

                Attention:
      Yariv Katz, Esq.

                Telecopy:  (866)
      896- 1055

                 

              

      

       

      
        
          
          

        

        
          11

          
            

          

        

        
          
          

        

      

       

       

      
        	
                With
      a copy to:

              	
                Paul,
      Hastings, Janofsky & Walker LLP

                75
      East 55th Street

                New
      York, NY 10022

                Attention:
      Michael L. Zuppone, Esq.

                Telecopy:
      (212) 318-6906

                 

              
	
                If
      to Collateral Agent:

              	
                Viking
      Asset Management L.L.C.

                600
      Montgomery Street, 44th Floor

                San
      Francisco, CA  94111

                Attention:  Michael
      Rudolph

                Telecopy:  (415)
      981-5301

                 

              
	
                with
      a copy to:

              	
                Viking
      Asset Management, LLC

                10
      Glenville Street, 3rd Floor

                Greenwich,
      Connecticut 06831

                Attention:  Robert
      J. Brantman

                Facsimile:
      (646) 840-4958

                 

              
	
                with
      a copy to:

              	
                Katten
      Muchin Rosenman LLP

                525
      West Monroe Street

                Chicago,
      Illinois 60661-3693

                Attn:
      Mark Wood, Esq.

                Telecopy:
      (312) 577-8858

              

      

       

       

      or, in
the case of party named above, at such other address and/or facsimile number
and/or to the attention of such other person as the recipient party has
specified by written notice given to each other party five (5) days prior to the
effectiveness of such change.  Written confirmation of receipt (A)
given by the recipient of such notice, consent, waiver or other communication,
(B) mechanically or electronically generated by the sender’s facsimile machine
containing the time, date, recipient facsimile number and an image of the first
page of such transmission or (C) provided by a nationally recognized overnight
delivery service shall be rebuttable evidence of personal service, receipt by
facsimile or deposit with a nationally recognized overnight delivery service in
accordance with clause (i), (ii) or (iii) above, respectively.

       

      9.           
Severability.  In
the event that any provision of this Agreement is deemed to be invalid by reason
of the operation of any law or by reason of the interpretation placed thereon by
any court or governmental authority, this Agreement shall be construed as not
containing such provision and the invalidity of such provision shall not affect
the validity of any other provisions hereof, and any and all other provisions
hereof which otherwise are lawful and valid shall remain in full force and
effect.

       

      10.         
Successors
and Assigns.  This Agreement shall inure to the benefit of the
successors and assigns of Collateral Agent and Buyers and shall be binding upon
the successors and assigns of the Subordinated Creditor and the
Company.

       

      11.         
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

       

      
        
          
          

        

        
          12

          
            

          

        

        
          
          

        

      

       

       

      effective
when counterparts have been signed by each party and delivered to each other
party; provided that a facsimile 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, not a facsimile signature.

       

      12.         
Defines Rights of Creditors;
Subrogation.

       

      (a)  The
provisions of this Agreement are solely for the purpose of defining the relative
rights of Subordinated Creditor, Collateral Agent and Buyers and shall not be
deemed to (i) create any rights or priorities in favor of any other Person,
including, without limitation, the Company or any Viking Guarantor, or (ii)
amend any of the Loan Documents or in any way waive any of the rights that the
Collateral Agent and the Buyers have against the Company or any Viking Guarantor
under the Loan Documents.

       

      (b)  Subject
to the Payment in Full of the Senior Indebtedness, in the event and to the
extent cash, property or securities otherwise payable or deliverable to the
holders of the Subordinated Indebtedness shall have been applied pursuant to
this Agreement to the payment of Senior Indebtedness, then and in each such
event, the holders of the Subordinated Indebtedness shall be subrogated to the
rights of each holder of Senior Indebtedness to receive any further payment or
distribution in respect of or applicable to the Senior Indebtedness; and, for
the purposes of such subrogation, no payment or distribution to the holders of
Senior Indebtedness of any cash, property or securities to which any holder of
Subordinated Indebtedness would be entitled except for the provisions of this
Agreement shall, and no payment over pursuant to the provisions of this
Agreement to the holders of Senior Indebtedness by the holders of the
Subordinated Indebtedness shall, as between the Company or any Viking Guarantor,
its creditors other than the holders of Senior Indebtedness and the holders of
Subordinated Indebtedness, be deemed to be a payment by the Company or any
Viking Guarantor to or on account of Senior Indebtedness.

       

      13.        
Conflict.  In
the event of any conflict between any term, covenant or condition of this
Agreement and any term, covenant or condition of any of the Subordinated
Indebtedness Documents, the provisions of this Agreement shall control and
govern.  For purposes of this Section 13, to the extent that any
provisions of any of the Subordinated Indebtedness Documents provide rights,
remedies and benefits to Collateral Agent or Buyers that exceed the rights,
remedies and benefits provided to Collateral Agent or Buyers under this
Agreement, such provisions of the applicable Subordinated Indebtedness Documents
shall be deemed to supplement (and not to conflict with) the provisions
hereof.

       

      14.        
Statement
of Indebtedness to Subordinated Creditor.  The Company will
furnish to Collateral Agent upon demand, a statement of the indebtedness owing
from the Company to Subordinated Creditor, and will give Collateral Agent access
to the books of the Company in accordance with the Purchase Agreement so that
Collateral Agent can make a full examination of the status of such
indebtedness.

       

      
        
          
          

        

        
          13

          
            

          

        

        
          
          

        

      

       

       

      15.         
Headings.  The
paragraph headings used in this Agreement are for convenience only and shall not
affect the interpretation of any of the provisions hereof.

       

      16.       
  Termination.  This
Agreement shall terminate upon the Payment in Full of the Senior
Indebtedness.

       

      17.         Subordinated
Default Notice.  The Company shall provide Collateral Agent
with a Subordinated Default Notice upon the occurrence of each Subordinated
Default, and the Company shall notify Collateral Agent in the event such
Subordinated Default is cured or waived.

       

      18.         
No
Contest of Senior Indebtedness or Liens; No Security for Subordinated
Indebtedness.  Each Subordinated Creditor agrees that it will
not, and will not encourage any other Person to, at any time, contest the
validity, perfection, priority or enforceability of the Senior Indebtedness or
Liens in the Collateral granted to Collateral Agent pursuant to the Purchase
Agreement, the other Loan Documents or the Permitted Refinancing Loan Documents
or accept or take any collateral security for the Subordinated
Indebtedness.  In furtherance of the foregoing, on the date hereof,
each Subordinated Creditor hereby represents and warrants that it has not taken
or received a security interest in, or lien upon, any asset of the Company or
any Viking Guarantor, whether in respect of the Subordinated Indebtedness or
otherwise.

       

      19.        
Governing
Law, Jurisdiction Waiver of 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 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.  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.

       

      
        
          
          

        

        
          14

          
            

          

        

        
          
          

        

      

       

       

      20.        
Waiver of
Consolidation.  Each Subordinated Creditor acknowledges and
agrees that (i) the Company and each Viking Guarantor are each separate and
distinct entities; and (ii) it will not at any time insist upon, plead or seek
advantage of any substantive consolidation, piercing the corporate veil or any
other order or judgment that causes an effective combination of the assets and
liabilities of the Company and any Viking Guarantor in any case or proceeding
under Title 11 of the United States Code or other similar
proceeding.

       

      [Remainder
of Page Intentionally Left Blank; Signature Page to Follow]

       

       

      
        
          
          

        

        
          15

          
            

          

        

        
          
          

        

      

       

       

      IN WITNESS WHEREOF, the
Subordinated Creditor, the Company, Collateral Agent and Buyers have caused this
Agreement to be executed as of the date first above written.

       

      
      

       

      
        	 	 SUBORDINATED
      CREDITORS:
	 	 
	 	 [__________________]
	 	 	 
	 	 	 
	 	 By:	_______________________________
	 	 	Name:
	 	 	Title:

      

       

           

            

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

         

      

       

      
        	 	 THE
COMPANY:
	 	 
	 	 MRU HOLDINGS, INC., a
      Delaware corporation
	 	 	 
	 	 	 
	 	 By:_______________________________
	 	 Name:  Vishal
      Garg
	 	 Title:   
      Co-President

       

      
 

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

         

      
        	 	 COLLATERAL
    AGENT:
	 	 
	 	 VIKING ASSET MANAGEMENT
      L.L.C. in its capacity
	 	 as collateral
      agent for Buyers
	 	 	 
	 	 	 
	 	 By:_______________________________
	 	 Name:  S.
      Michael Rudolph
	 	 Title:   
      Chief Financial Officer

      

       

       

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

       

      
        	 	 BUYERS:
	 	 
	 	 LONGVIEW MARQUIS MASTER FUND,
      L.P., a
	 	 British Virgin
      Islands limited partnership
	 	 By:  Viking
      Asset Management, LLC
	 	 Its:   Investment
      Manager
	 	 
	 	 	 
	 	 	 
	 	 By:_______________________________
	 	 Name:  S.
      Michael Rudolph
	 	 Title:   
      Chief Financial OfficerUnassociated Document

     

     

    Exhibit
4.3

     

     

    
      THIS
WARRANT AND THE SECURITIES ISSUABLE UPON THE EXERCISE HEREOF HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR ANY
STATE SECURITIES LAWS, AND MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED,
ASSIGNED OR HYPOTHECATED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION
STATEMENT FOR THE SECURITIES UNDER THE ACT OR APPLICABLE STATE SECURITIES LAWS
OR (B) AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT REGISTRATION UNDER
THE ACT OR APPLICABLE STATE SECURITIES LAWS IS NOT REQUIRED WITH RESPECT TO SUCH
OFFER, SALE, TRANSFER, ASSIGNMENT OR HYPOTHECATION; OR (II) UNLESS SOLD PURSUANT
TO RULE 144 UNDER SAID ACT.

       

      THIS
WARRANT IS ISSUED PURSUANT TO THAT CERTAIN  NOTE (AS DEFINED BELOW)
ISSUED TO THE INITIAL HOLDER OF THIS WARRANT (THE “INVESTOR”) BY MRU HOLDINGS,
INC., A DELAWARE CORPORATION (THE “COMPANY”).

       

      Dated:  July
31, 2008

       

      MRU
HOLDINGS, INC.

       

      WARRANT
(“WARRANT”) TO PURCHASE SHARES

       

      OF

       

      COMMON
STOCK, $0.001 PAR VALUE PER SHARE

       

      1.  Number of Shares Subject to
Warrant. (a) This is to certify that, FOR VALUE RECEIVED, [●] (the “Investor”), is entitled,
subject to the terms set forth below, to purchase from the Company, upon
surrender of this Warrant, at any time or times on or after the date hereof, but
prior to the termination of this Warrant pursuant to Section 3 hereof, at the
Warrant Price, [●] shares (the
“Warrant Shares”) of the
Company’s common stock, $0.001 par value per share (“Common Stock”), upon such
Investor’s exercise of this Warrant pursuant to Section 7
hereof.  Certain capitalized terms used in this Warrant are defined in
Section 2 hereof.

       

      (b)           Exercise
Limitations.

       

      (i)           Notwithstanding
anything to the contrary contained in Section 1(a) hereof, in no event shall the
Investor be entitled to exercise this Warrant for a number of Warrant Shares in
excess of that number of Warrant Shares which, upon giving effect to such
exercise, would cause the aggregate number of shares of Common Stock
beneficially owned by the Investor and its affiliates to exceed 19.99% of the
voting power of the Company, following such exercise, unless the Company obtains
the requisite stockholder approval under NASDAQ Marketplace Rule 4350(i)(1)(B)
(the “Issuance
Limitation”), in which case, the Issuance Limitation under this Section
1(b) shall no longer apply to the Investor.  For purposes of this
Section 1(b)(i), the aggregate number of shares of Common Stock beneficially
owned by the Investor and its affiliates shall include the shares of Common
Stock issuable upon the exercise of this Warrant,

       

      
        
          
          

        

        
          1.

          
            

          

        

        
          
          

        

      

       

       

      subject
in all cases to the Issuance Limitation.  Upon the written request of
the Investor, the Company shall promptly, but in no event later than two (2)
Business Days following the receipt of such notice, confirm in writing to the
Holder the number of shares of Common Stock then outstanding.  The
number of Warrant Shares purchaseable upon exercise of this Warrant and the
Warrant Price shall be subject to adjustment from time to time as described
herein.

       

      2.  Definitions. As used
in this Warrant, the following terms shall have the meanings ascribed to them
below:

       

      (a)  “Business Day” shall mean any
day except Saturday, Sunday and any day which shall be a legal holiday or a day
on which banking institutions in the state of New York are authorized or
required by law or other government actions to close between the hours of 9:30
a.m. and 5:00 p.m. Eastern Standard Time.

       

      (b)  “Note” means the $[●] principal amount
convertible promissory note issued to the Investor on July 31,
2008.

       

      (c)  “Fair Market Value” means the
fair market value of a share of Common Stock, determined in good faith by the
board of directors of the Company, and measured in reference to the closing bid
price of the Common Stock on the trading day immediately preceding the day on
which a determination of fair market value is to be made.

       

      (d)  “Holder” shall mean the Investor
and any permitted transferees.

       

      (e)
 “Person” means an individual, a
limited liability company, a partnership, a joint venture, a corporation, a
trust, an unincorporated organization or a governmental entity or any other
legal entity.

       

      (f)  “Warrant Price” means $1.40,
subject to adjustment as provided herein.

       

      3.    
 Termination.  This
Warrant shall terminate and no longer be exercisable at 5:00 p.m., New York
time, on July 30, 2013.

       

      4.     
Fractional
Shares.  No fractional shares shall be issuable upon exercise
of this Warrant and the number of shares of Common Stock to be issued shall be
rounded up to the nearest whole share.

       

      5.     
No Stockholder
Rights. This Warrant, by itself, as distinguished from any shares of
Common Stock purchased hereunder, shall not entitle the Holder to any of the
rights of a stockholder of the Company.

       

      6.     
Reservation of
Stock.  The Company shall reserve from its authorized and
unissued Common Stock a sufficient number of shares to provide for the issuance
of Warrant Shares upon the exercise or conversion of this
Warrant.  Issuance of this Warrant shall constitute full authority to
the Company’s officers who are charged with the duty of executing stock
certificates to execute, issue and deliver the necessary certificates for
Warrant Shares issuable upon the exercise or conversion of this
Warrant.

       

      
        
          
          

        

        
          2.

          
            

          

        

        
          
          

        

      

       

       

      7.      Exercise of
Warrant.  Subject to the conditions set forth in Section 1
hereof, this Warrant may be exercised at any time prior to its termination by
the surrender of this Warrant, together with the Notice of Exercise and the
Investment Representation Statement in the forms attached hereto as Attachments 1 and 2, respectively, duly
completed and executed, at the principal office of the Company, specifying the
portion of this Warrant to be exercised and accompanied by payment in full of
the Warrant Price (a) in cash or by certified check with respect to the Warrant
Shares being purchased or (b) by written direction of the Company to cancel a
portion of this Warrant sufficient to satisfy the “cashless exercise” provisions
of this Section 7.  This Warrant shall be deemed to have been
exercised immediately prior to the close of business on the date of its
surrender for exercise as provided above, and the Person entitled to receive the
Warrant Shares issuable upon exercise shall be treated for all purposes as the
holder of such shares of record as of the close of business on such
date.  As promptly as practicable after such date, the Company shall
issue and deliver to the Person or Persons entitled to receive the same a
certificate or certificates (or a direct registration system statement if the
shares are to be issued in book entry form) representing the number of full
Warrant Shares issuable upon such exercise.  If the Warrant shall be
exercised for less than the total number of Warrant Shares then issuable upon
exercise, promptly after surrender of the Warrant upon such exercise, the
Company shall execute and deliver a new Warrant, dated the date hereof,
evidencing the right of the Holder to the balance of the Warrant Shares
purchasable hereunder upon the same terms and conditions set forth
herein.

       

                                  
In lieu of payment of the Warrant Price in cash, the Holder may direct the
Company to cancel a portion of this Warrant having a value equal to the Warrant
Price for the number of Warrant Shares as to which the Holder exercises this
Warrant, determined by multiplying the number of Warrant Shares as to which this
Warrant is directed to be cancelled by an amount equal to the difference between
(i) the Fair Market Value on the date of exercise and (ii) the Warrant Price
then in effect.  Payment by such cancellation is referred to herein as
“cashless exercise.”

       

      8.    
Adjustment of Exercise Price
and Number of Shares.  The number of shares issuable upon
exercise of this Warrant (or any shares of stock or other securities or property
at the time receivable or issuable upon exercise of this Warrant) and the
Warrant Price therefor are subject to adjustment upon the occurrence of the
following events:

       

      (a)  Adjustment for Stock Splits,
Recapitalizations, etc.  The Warrant Price and the number of
shares issuable upon exercise of this Warrant shall each be proportionally
adjusted to reflect any, stock split, reverse stock split, combination of
shares, reclassification, recapitalization or other similar event altering the
number of outstanding shares of the Company’s capital stock.

       

      (b)  Adjustment for Other
Dividends and Distributions.  In case the Company shall make or
issue, or shall fix a record date for the determination of eligible holders
entitled to receive, a dividend or other distribution with respect to the Common
Stock payable in securities of the Company then, and in each such case, the
Holder, on exercise of this Warrant at any time after the consummation,
effective date or record date of such event (each an “Event Date”), shall
receive, in addition to the Warrant Shares (or such other stock or securities)
issuable on such exercise prior to the Event Date, the securities of the Company
to which such Holder would have

       

      
        
          
          

        

        
          3.

          
            

          

        

        
          
          

        

      

       

       

      been
entitled upon such Event Date if such Holder had exercised this Warrant
immediately prior the Event Date (all subject to further adjustment as provided
in this Warrant)

       

      9.    
Adjustment for Capital
Reorganization, Consolidation, Merger or Sale.  If any capital
reorganization of the capital stock of the Company, or any consolidation or
merger of the Company with or into another corporation, or the sale of all or
substantially all of the Company’s assets to another corporation shall be
effected in such a way that holders of the Company’s capital stock will be
entitled to receive stock, securities or assets with respect to or in exchange
for the Company’s capital stock, then in each such case the Holder, upon the
exercise of this Warrant, at any time after the consummation of such capital
reorganization, consolidation, merger, or sale, shall be entitled to receive, in
lieu of the stock or other securities and property receivable upon the exercise
of this Warrant prior to such consummation, the stock or other securities or
property to which such Holder would have been entitled upon such consummation if
such Holder had exercised this Warrant immediately prior to the consummation of
such capital reorganization, consolidation, merger, or sale, all subject to
further adjustment as provided in this Section 9; and in each such case, the
terms of this Warrant shall be applicable to the shares of stock or other
securities or property receivable upon the exercise of this Warrant after such
consummation.

       

      10.   
Transfer of
Warrant.  This Warrant may be transferred or assigned by the
Holder hereof in whole or in part, provided that the transferor provides, at the
Company’s request, an opinion of counsel satisfactory to the Company that such
transfer does not require registration under the Act and any other applicable
federal or state securities laws.

       

      11.   
Amendments and
Waivers.  This Warrant and any term hereof may only be amended,
waived, discharged or terminated by a written instrument signed by the Company
and the Investor.

       

      12.   
Governing Law;
Venue.  This Warrant shall be governed by the laws of the State
of New York, as such laws are applied to contracts to be entered into and
performed entirely in New York by New York residents, without giving effect to
any choice of law or conflict of law provision or rule that would cause the
application of the laws of any jurisdictions other than the State of New
York.  Each party hereby irrevocably submits to the exclusive
jurisdiction of the state and federal courts sitting in New York County for the
adjudication of any dispute hereunder or in connection herewith or therewith, 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 Warrant 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.

       

      13.   
Headings;
Notice.  The headings in this Warrant are for purposes of
convenience and reference only, and shall not be deemed to constitute a part
hereof.  All notices and other communications
from the Company to the Holder of this Warrant shall be delivered, personally,

       

      
        
          
          

        

        
          4.

          
            

          

        

        
          
          

        

      

       

      mailed by
first class mail, postage prepaid, or when sent by facsimile transmission or by
e-mail delivery of a “.pdf” format data file (provided confirmation of receipt
is received by the sending party transmission is mechanically or electronically
generated and kept on file by the sending party) to the address, facsimile
number or e-mail address furnished to the Company in writing by the last Holder
of this Warrant who shall have furnished an address, facsimile number or e-mail
address to the Company in writing, and if mailed shall be deemed given three
days after deposit in the United States mail.

       

      14. 
 Waiver of Jury
Trial.  AS A MATERIAL INDUCEMENT FOR EACH PARTY HERETO TO ENTER
INTO THIS WARRANT, THE PARTIES HERETO HEREBY IRREVOCABLY WAIVE ANY RIGHT TO
TRIAL BY JURY IN ANY LEGAL PROCEEDING RELATED IN ANY WAY TO THIS WARRANT AND/OR
ANY AND ALL OF THE OTHER DOCUMENTS ASSOCIATED WITH THIS
TRANSACTION.

       

      IN
WITNESS WHEREOF, the Company has caused this Warrant to be duly executed as of
the date first written above.

       

       

      
        	 	 MRU HOLDINGS,
      INC
	 	 	 
	 	 	 
	 	 	 
	 	 By:	_________________________
	 	 	Name: Vishal
      Garg
	 	 	Title:  Co-President

      

       

       

       

      
        
          
          

        

        
          5.

          
            

          

        

        
          
          

        

      

       

       

      Attachment
1

       

      NOTICE
OF EXERCISE

       

      TO: MRU
HOLDINGS, INC.

       

      1.           The
undersigned hereby elects to purchase ________ Warrant
Shares of MRU Holdings, Inc. pursuant to the terms of the attached Warrant, and
tenders herewith payment of the purchase price in full, together with all
applicable transfer taxes, if any.

       

      2.           Please
issue a certificate(s) (or a direct registration system statement(s) if the
shares are to be issued in book entry form) in the name(s) and amounts specified
below:

       

      
      

       

      
        	_________________________________	 	_________________________________
	Name	 	Name
	 	 	 
	 	 	 
	_________________________________	 	_________________________________
	Street
    Address	 	Street
    Address
	 	 	 
	 	 	 
	_________________________________	 	_________________________________
	State, City and Zip
      Code	 	State, City and Zip
      Code
	 	 	 
	 	 	 
	_________________________________	 	_________________________________
	Number of Warrant
      Shares	 	Number of Warrant
      Shares
	 	 	 
	 	 	 
	Check here for “cashless
      exercises”: ______	 	 
	 	 	 
	 	 	 
	HOLDER:	 	 
	 	 	 
	 	 	 
	_________________________________	 	 
	Signature of Holder
      of Warrant	 	 
	 	 	 
	_________________________________	 	 
	Name of Holder of
      Warrant (print)	 	 
	 	 	 
	_________________________________	 	 
	Date	 	 

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

       

      Attachment
2

       

      INVESTMENT
REPRESENTATION STATEMENT

       

      Warrant
Shares

      (as
defined in the attached Warrant) of

      MRU
HOLDINGS, INC.

       

      In
connection with the purchase of the above-listed securities, the undersigned
hereby represents to MRU Holdings, Inc. (the “Company”) as
follows:

       

      (a)  By
acceptance hereof, that, as of this date, the undersigned is an “accredited
investor” as such term is defined in Rule 501(a)(1) of Regulation D promulgated
by the Securities and Exchange Commission under the Act.  The
securities to be received upon the exercise of the Warrant (the “Warrant Shares” as defined in the
attached Warrant) will be acquired for investment for its own account; not as a
nominee or agent, and not with a view to the sale or distribution of any part
thereof, and the undersigned has no present intention of selling, granting
participation in or otherwise distributing the same, but subject, nevertheless,
to any requirement of law that the disposition of its property shall at all
times be within its control.  By executing this Statement, the
undersigned further represents that the undersigned does not have any contract,
undertaking, agreement or arrangement with any person to sell, transfer, or
grant participation to such person or to any third person, with respect to any
Warrant Shares issuable upon exercise of the Warrant.

       

      (b)  The
undersigned understands that the Warrant Shares issuable upon exercise of the
Warrant at the time of issuance may not be registered under the Act, and
applicable state securities laws, on the ground that the issuance of such
securities is exempt pursuant to Section 4(2) and/or Regulation D of the Act and
state law exemptions relating to offers and sales not by means of a public
offering, and that the Company’s reliance on such exemptions is predicated on
the undersigned’s representations set forth herein.

       

      (c)  The
undersigned agrees that in no event will it make a disposition of any Warrant
Shares acquired upon the exercise of the Warrant unless and until (i) the
undersigned shall have notified the Company of the proposed disposition and
shall have furnished the Company with a statement of the circumstances
surrounding the proposed disposition, and (ii) the undersigned shall have
furnished the Company with an opinion of counsel satisfactory to the Company and
Company’s counsel to the effect that (A) appropriate action necessary for
compliance with the Act and any applicable state securities laws has been taken
or an exemption from the registration requirements of the Act and such laws is
available, and (B) the proposed transfer will not violate any of said
laws.

       

      (d)  The
undersigned acknowledges that an investment in the Company is highly speculative
and represents that it is able to fend for itself in the transactions
contemplated by this Statement, has such knowledge and experience in financial
and business matters as to be capable of evaluating the merits and risks of its
investments, and has the ability to bear the economic risks (including the risk
of a total loss) of its investment.  The undersigned represents that
the undersigned has had the opportunity to ask questions of the Company
concerning the Company’s business and assets and to obtain any additional
information which the undersigned considered

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

       

      necessary
to verify the accuracy of or to amplify the Company’s disclosures, and has had
all questions which have been asked, satisfactorily answered by the
Company.

       

      (e)  The
undersigned acknowledges that the Warrant Shares issuable upon exercise of the
Warrant must be held indefinitely unless subsequently registered under the Act
or an exemption from such registration is available.  The undersigned
is aware of the provisions of Rule 144 promulgated under the Act which permit
limited resale of shares purchased in a private placement subject to the
satisfaction of certain conditions. The undersigned acknowledges that if the
undersigned and its affiliates are not deemed affiliates of the Company at any
time during the three (3) months preceding a resale and the undersigned has
beneficially owned the Warrant within the meaning of Rule 144 for at least six
months and effects a “cashless exercise” of the Warrant,” any resale of the
Warrant Shares by the undersigned will be subject only to the availability of
current public information about the Company.  The undersigned further
acknowledges that, if the undersigned and its affiliates are deemed affiliates
of the Company and the undersigned has beneficially owned the Warrant for at
least six months and effects a “cashless exercise” of the Warrant, the
undersigned understands that any resale of the Warrant Shares by the undersigned
will be subject to the current public information requirements about the
Company, volume limitations, certain manner of sale provisions and notice
requirements.  Notwithstanding the foregoing, the holding periods
discussed in this paragraph (e) will not begin to run until the undersigned pays
the Warrant Price for the Warrant Shares if the Warrant Price is paid in cash
instead of by “cashless exercise.”

       

      HOLDER

       

       

      _________________________________

      Signature
of Holder of Warrant

       

       

      _________________________________

      Name of
Holder of Warrant (print)

       

       

      _________________________________

      Date

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