Document:

munchenstandstill.htm -- Converted by SEC Publisher, created by BCL Technologies Inc., for SEC Filing

Exhibit 10.4

EXECUTION VERSION

Second German Standstill Agreement 

(Stillhaltevereinbarung)

This second German standstill agreement (Stillhaltevereinbarung) ("Second Standstill Agreement") is made on 31 March 2009 between

	1.      	Sunrise München-Thalkirchen Senior Living GmbH & Co. KG, registered with the commercial register (Handelsregister) at the local court (Amtsgericht) of Königstein im Taunus under HRA 3038, Frankfurter Str. 1, 61476 Kronberg im Taunus, represented by its general partner, PSRZ (Germany) General Partner GmbH with sole power of representation, registered with the commercial register (Handelsregister) at the local court (Amtsgericht) of Königstein im Taunus under HRB 6199, Frankfurter Str. 1, 61476 Kronberg im Taunus 
	 	– "PropCo" – 
		

	2.      	Sunrise München-Thalkirchen GmbH, registered with the commercial register at the local court of Königstein im Taunus under HRB 6614, Frankfurter Str. 1, 61476 Kronberg im Taunus 
	 	– "OpCo" – 
		

	3.      	Sunrise Senior Living Inc., 7902 Westpark Drive, McLean, VA 22102, U.S.A. 
	 	– "Guarantor" – 
		

	4.	Natixis, London Branch, Cannon Bridge House, 25 Dowgate Hill, London EC4R 2YA, United Kingdom in its capacity as agent under the Loan Agreements (as defined below) also for and on behalf of the other Finance Parties 

	 	– "Agent" – 

PropCo, OpCo, the Guarantor and the Agent are hereinafter collectively referred to as the "Parties" and each a "Party"

The Parties hereby agree as follows:

PREAMBLE:

	(A)      	OpCo and the Agent are parties to a loan agreement dated 24 March 2006 (the "OpCo Loan Agreement") under which, inter alia, the Lender (as defined in the OpCo Loan 

	 	Agreement) has made available to OpCo the Facilities (as defined in the OpCo Loan Agreement). 
		

	(B)      	PropCo and the Agent are parties to a loan agreement dated 24 March 2006 (the "PropCo Loan Agreement" and collectively with the OpCo Loan Agreement, the "Loan Agreements") under which, inter alia, the Lender (as defined in the PropCo Loan Agreement) has made available to PropCo the Facilities (as defined in the PropCo Loan Agreement). 
		

	(C)      	The Guarantor and the Agent are parties to (i) a funding obligation agreement dated 5 October 2006 with PropCo (the "PropCo Funding Obligation") and (ii) a funding obligation agreement dated 5 October 2006 with OpCo (the "OpCo Funding Obligation" and collectively with the PropCo Funding Obligation, the "Funding Obligations"). Under the Funding Obligations, the Guarantor has agreed, subject to the terms set out therein, to pay to the Agent (on behalf of itself as well as of the Finance Parties) amounts equal to the Cash Flow Deficit (as defined in the Funding Obligations) of OpCo or PropCo, as the case may be. 
		

	(D)      	The Loan Agreements contain certain financial covenants, inter alia, not to exceed the LTV Threshold. Per clause 6.3.1.3 of the Loan Agreements, if the LTV Threshold is exceeded, the respective Borrower has to, within 14 days after notification by the Agent, provide the Agent with (or procure the provision of) additional security of a nature as further set out in the Loan Agreements, or, if proposals of such security are not made within time, is deemed to have elected for prepayment of a portion of the Loans to an extent that the Loans are reduced to a sum not exceeding the LTV Threshold.
	 
		

	(E)      	Per letter dated 22 January 2009, the Agent informed PropCo, OpCo and the Guarantor that per a valuation by Atrisreal Limited, the Loan-To-Value Ratio was 119.8%, and asked the Borrowers to comply with the procedures set out in the Loan Agreements. 
		

	(F)      	Per letter dated 4 February 2009 from PropCo and OpCo to the Agent, PropCo and OpCo reserved their rights to challenge the valuation on the basis of which the breach of the LTV Threshold had been claimed. 
		

	(G)      	Per letters dated 5 February 2009, the Agent informed PropCo and OpCo that it had not received any proposals from the Borrowers, that they were deemed to have elected for prepayment and requested payment thereof, and informed the Guarantor that a cash flow deficit of EUR 8,076,878 existed which the Guarantor had to pay under the Funding Obligations. 

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	(H)      	Per letter dated 12 February 2009, the Agent served a demand on the Guarantor for payment of an amount equal to the cash flow deficit of EUR 8,076,878 pursuant to the Funding Obligations. 
		

	(I)      	The Parties entered on 19 February 2009 into a pre-negotiation and standstill agreement, as amended and/or restated from time to time, (the "US Standstill Agreement") with respect to Guarantor’s obligations under the Funding Obligations. 
		

	(J)      	The Parties entered on 19 February 2009 also into a German standstill agreement (Stillhaltevereinbarung) (the "German Standstill Agreement") with respect to certain claims under the Loan Agreements. 
		

	(K)      	The following payments have become due or will become due and payable, before or during the term of the German Standstill Agreement and/or the Second Standstill Agreement, pursuant to the terms of the Loan Agreements: 

   

		These payments are hereinafter collectively referred to as the "Claims".
		

	(L)      	The Parties are currently in discussions in connection with the Loan Agreements. 
		

	(M)      	OpCo, PropCo and the Guarantor intend to sell the Munich business. 
		

	(N)      	As the Parties intend to continue their discussions in good faith, and to avoid any doubts as to the current non-existence of an obligation of the managing directors (Geschäftsführer) of the general partner of PropCo and OpCo as to their duty to file for commencement of insolvency proceedings, it is the Parties' intention to enter into this Second Standstill Agreement. 

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The Parties agree as follows:

	1.      	Definitions and interpretation
		

		Capitalized terms used herein shall, unless defined otherwise herein, have the same meaning as in the Loan Agreements.
		

	2. 	Standstill Agreement
		

	     	Until expiration of this Second Standstill Agreement in accordance with clause 3 below, the Agent agrees (on behalf of itself as well as of the Finance Parties):
		

     	 
	         	(a)      	not to enforce (durchsetzen)
	         	

			(i)   	its claims for prepayment of the Loans based on clause 6.3.1.3 of the Loan Agreements; and/or 
				

			(ii)  	its Claims
				

	     	
(or any portion thereof) either by filing of legal proceedings of any kind, or by realization of any security subject to German law granted under or in connection with the Loan Agreements (for the avoidance of doubt, the Funding Obligations shall not be affected by this Second Standstill Agreement), and that any prepayment obligation (with the exception of any obligation under the Funding Obligations which are subject to the US Standstill Agreement) and the payment of the Claims shall be stayed (gestundet) from the date of this Second Standstill Agreement and during the term of this Second Standstill Agreement;

		

		(b)	not to accelerate (kündigen) the Loan Agreements (or any portion thereof) based on
			

			(i)	a breach of the LTV Threshold which has arisen, or might potentially arise, due to the facts and circumstances described in Preamble (D) herein or in connection therewith; and/or 
				

			(ii)	an Event of Default which has arisen, or might potentially arise due to non-payment or delayed payment of the Claims;
				

			
and/or

			

		(c)	not to demand that additional security is provided, other than the provision of additional security as required pursuant to clause 6.3.1.3 of the Loan Agreements which is subject of the Parties’ 
			negotiations.

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	3.      	Term 
		

	 	This Second Standstill Agreement shall remain effective until the earlier of: 
		

	 	(a)      	the Parties having definitely aborted their negotiations and this has been confirmed by the relevant other Party/Parties in writing, such confirmation not to be unreasonably withheld. The Parties, as of the date of this Second Standstill Agreement, consider it more likely than not (überwiegend wahrscheinlich) that a solution can be reached which will enable OpCo and PropCo to continue to trade as a going concern (Fortführung des Geschäftsbetriebs); 
			

	 	(b)      	the acceleration of the Loan Agreements based on an Event of Default (other than a breach of the LTV Threshold or the non-payment or delayed payment of the Claims); 
			

	 	(c)      	the application for the opening of insolvency proceedings or the commencement of insolvency proceedings (Eröffnung des Insolvenz- verfahrens) with respect to OpCo or PropCo or the Guarantor; 
			

	 	(d)      	the termination of the US Standstill Agreement (including by way of an early termination); or 
			

	 	(e)      	30 April 2009. 
			

	 	For the avoidance of doubt, the Agent shall have the right to exercise all rights and remedies available to the Agent (on behalf of itself as well as of the Finance Parties) under the Loan Agreements upon expiration of this Second Standstill Agreement. 
		

	4.      	No waiver of rights or defenses 
		

	 	Nothing in this Second Standstill Agreement shall, to the extent not expressed herein, constitute a waiver, amendment or termination of any agreement between the Parties or of the rights, remedies or defenses any Party has against another Party and the Parties confirm that the Loan Agreements and any security granted in connection therewith remain in full force and effect to the extent they have been in full force and effect would it not have been for this Second Standstill Agreement. 
		

	5.      	Confirmations 
		

	 	OpCo and PropCo confirm that 
		

	 	(a)      	subject to the execution of this Second Standstill Agreement, neither OpCo nor PropCo is overindebted (überschuldet) or illiquid (zahlungsunfähig) for 

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	 	 	the purpose of Sections 17 – 19 of the German Insolvency Code (Insolvenzordnung);
			

	 	(b)      	the execution of this Second Standstill Agreement does not impair other creditors of PropCo or OpCo; and 
			

	 	to the best of their knowledge, it is not anticipated that during the term of this Second Standstill Agreement the financial situation of OpCo and PropCo will deteriorate leading to any of the effects described in (a) and (b) of this clause. 
		

	6.      	Covenants 
		

	 	(a)      	OpCo and PropCo shall 
			

			(i)	observe and perform all their respective obligations under the Loan Agreements; 
				

	 	 	(ii)      	provide the Agent with such information about the financial status and condition of the Borrowers as the Agent may reasonably request from time to time. Each Borrower authorizes and allows the Agent and its representatives, upon reasonable notice and at any reasonable time during normal business hours, to examine, at its own cost and expense, Borrower's financial books and records and all other records relating or pertaining to the operation of the Property, and the Agent shall be permitted, at its own cost and expense, to photocopy any such books and records; and 
				

	 	 	(iii)      	not take legal proceedings or actions against the Agent during the term of this Second Standstill Agreement. 
				

	 	(b)      	In relation to the sale of the Munich business 
			

	 	 	(i)      	Sunrise Properties Germany GmbH already mandated "Dr. Gop & Klingsöhr Projektentwicklung und Marktforschung GmbH" as broker and advisor respectively for such sale (the "Broker"); 
				

	 	 	(ii)      	OpCo, PropCo and the Guarantor undertake to provide for any information requested during such sale procedure, in particular by the Broker for distribution to any potential interested parties in order to enable a due diligence (to the extent required and in accordance with the sale procedure and permitted by law); 
				

	 	 	(iii)      	OpCo, PropCo and the Guarantor undertake to fully cooperate with Broker and any other relevant party (to the extent required) during 

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				such sale procedure while maintaining and keeping up the Munich business during the term of this Second Standstill Agreement; and 
				

	 	 	(iv)      	OpCo and PropCo undertake to carry out any other actions/declarations and measures as reasonably necessary to facilitate such sale, in 
				any event in their best corporate interest. 
				

	 	 	For the avoidance of doubt, any sale of the Munich business – irrespective of an asset or a share deal – requires the prior written consent of the Agent. 
			

	 	(c)      	Notwithstanding any other provision of this Second Standstill Agreement or any claim of Guarantor, OpCo, PropCo or any other person to the contrary, the Financing Documents and the other documents entered into in connection therewith (including, without limitation, clause 2.1 of the Funding Obligations) are and remain in full force and effect, unmodified, and shall remain in full force and effect, unmodified, unless and until amended or modified by (and only to the extent provided in) a written agreement executed and delivered hereafter in accordance with the provisions of this Second Standstill Agreement. 
			

	7.      	Miscellaneous 
		

	 	(a)      	This Second Standstill Agreement supersedes and replaces – as of the date hereof – the German Standstill Agreement; for the avoidance of doubt, the German Standstill Agreement shall remain in full force and effect for the period from its date until the date of this Second Standstill Agreement. 
			

	 	(b)      	If at any time, any one or more of the provisions hereof is or becomes invalid, illegal or unenforceable in any respect under the law of any jurisdiction, such provision shall as to such jurisdiction, be ineffective to the extent necessary without affecting or impairing the validity, legality and enforceability of the remaining provisions hereof or of such provisions in any other jurisdiction.

The invalid, illegal or unenforceable provision shall be deemed to be replaced with such valid, legal or enforceable provision which comes as close as possible to the original intent of the Parties and the invalid, illegal or unenforceable provision. Should a gap (Regelungslücke) become evident in this Second Standstill Agreement, such gap shall, without affecting or impairing the validity, legality and enforceability of the remaining provisions hereof, be deemed to be filled in with such provision which comes as close as possible to the original intent of the Parties. 
		
		
	 	 
			

	 	(c)      	Changes and amendments to this Second Standstill Agreement including this clause 7 shall be made in writing. 

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	(d)      	This Second Standstill Agreement is governed by the laws of the Federal Republic of Germany. 
		

	(e)      	The place of jurisdiction for any and all disputes arising under or in connection with this Second Standstill Agreement shall be the district court (Landgericht) in Frankfurt am Main. The Agent however, shall also be entitled to take action against any of the other Parties in any other court of competent jurisdiction. 
		

	(f)      	All duly evidenced costs, charges, fees and expenses triggered by this Second Standstill Agreement or incurred in connection with its preparation, translation, execution or amendment (in each case including duly evidenced fees for legal advisers) shall be paid jointly and severally by OpCo, PropCo and the Guarantor. 

[SIGNATURE PAGES TO FOLLOW]

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	Sunrise München-Thalkirchen Senior Living GmbH & Co. KG  	  	  	  	  
	

				
	by its general partner PSRZ (Germany) General Partner GmbH with sole power of representation   
	   
	/s/ Paul Milstein    
	Name: Paul Milstein  	  	  	  	  
	Title: Prokurist	  	  	  	  
	  
	  
	Sunrise München-Thalkirchen GmbH   
	  

	/s/ Paul Milstein  				
	Name: Paul Milstein 	  	  	  	  
	Title: Prokurist	  	  	  	  
	  
	  
	Sunrise Senior Living Inc.  
	

	/s/ John Gaul				
	Name: John Gaul	  	  	  	  
	Title: General Counsel 	  	  	  	  
					

	Natixis, London Branch  	  
	

	
	in its capacity as Agent under the Loan Agreements (on behalf of itself as well as of the Finance Parties)
	

	/s/ David Newby   	/s/ Grégoire Hennekinne 
	Name:  David Newby  	Name:  Grégoire Hennekinne  
	Title:   Head of UK Real Estate 	Title:   Director, Real Estate Finance  
	           Finance & European CMBSex101to8k06282_09052008.htm

    Exhibit 10.1

     

    
      FIRST
LOAN MODIFICATION AGREEMENT

       

      This
First Loan Modification Agreement (this “Loan Modification Agreement”) is
entered into as of March 30, 2009, by and among (a) SILICON VALLEY BANK, a California corporation,
with its principal place of business at 3003 Tasman Drive, Santa Clara,
California 95054 and with a loan production office located at 8020 Towers
Crescent Drive, Suite 475, Vienna, Virginia 22182 (“Bank”) and (b) (i) GLOBALOPTIONS, INC., a Delaware corporation
with offices at 1501 M Street, N.W., Washington, D.C. 20005 (“Global”), and
(ii) THE BODE TECHNOLOGY GROUP, INC., a
Delaware corporation with offices at 1501 M Street, N.W., Washington, D.C.
20005 (“Bode”) (Global and Bode are jointly and severally, individually and
collectively, referred to herein as the “Borrower”).

       

      1.           DESCRIPTION OF EXISTING
INDEBTEDNESS AND OBLIGATIONS. Among other indebtedness and obligations
which may be owing by Borrower to Bank, Borrower is indebted to Bank pursuant to
a loan arrangement dated as of March 31, 2008, evidenced by, among other
documents, a certain Fourth Amended and Restated Loan and Security Agreement
dated as of March 31, 2008, among Borrower and Bank (as amended, the “Loan
Agreement”).  Capitalized terms used but not otherwise defined herein
shall have the same meaning as in the Loan Agreement.

       

      2.           DESCRIPTION OF
COLLATERAL.  Repayment of the Obligations is secured by (a) the
Collateral as described in the Loan Agreement, (b) the Intellectual Property
Collateral as described in a certain Intellectual Property Security Agreement
dated as of March 31, 2008 between Bank and Global (the “Global IP Security
Agreement”), and (c) the Intellectual Property Collateral as described in a
certain Intellectual Property Security Agreement dated as of March 31, 2008
between Bank and Bode (the “Bode IP Security Agreement”) (together with any
other collateral security granted to Bank, the  “Security
Documents”).  Hereinafter, the Security Documents, together with all
other documents evidencing or securing the Obligations shall be referred to as
the “Existing Loan Documents”.

       

      
        3.           DESCRIPTION OF CHANGE IN
TERMS.

         

        
          	
                   
      

                	
                  A.

                	
                  Modifications
      to Loan Agreement.

                

        

        

        
          	
                   
      

                	
                  1

                	
                  The
      Loan Agreement shall be amended by deleting the following text, appearing
      in Section 2.1.1 thereof:

                

        

         

      

      “           (a)           Availability.  Subject to
the terms of this Agreement, Borrower may request that Bank finance specific
Eligible Accounts.  Bank may, in its good faith business discretion in
each instance, finance such Eligible Accounts by extending credit to Borrower in
an amount equal to the result of the Advance Rate multiplied by the face amount
of the Eligible Account (the “Advance”).  Bank may, in its sole
discretion, change the percentage of the Advance Rate for a particular Eligible
Account on a case by case basis.  When Bank makes an Advance, the
Eligible Account becomes a “Financed Receivable.”

       

      (b)           Maximum
Advances.  The aggregate face amount of all Financed
Receivables outstanding at any time may not exceed the Facility
Amount.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      (c)           Borrowing
Procedure.  Borrower will deliver an Invoice Transmittal for
each Eligible Account it offers.  Bank may rely on information set
forth in or provided with the Invoice Transmittal.”

       

      and
inserting in lieu thereof the following:

       

      “           (a)           Availability.

       

      (i)           Subject
to the terms of this Agreement, Borrower may request that Bank finance specific
Eligible Accounts.  Bank may, in its good faith business discretion in
each instance, finance such Eligible Accounts by extending credit to Borrower in
an amount equal to the result of the Advance Rate multiplied by the face amount
of the Eligible Account.  Bank may, in its sole discretion, change the
percentage of the Advance Rate for a particular Eligible Account on a case by
case basis.

       

      (ii)           Subject
to the terms of this Agreement, Borrower may request that Bank finance Eligible
Accounts on an aggregate basis.  Bank may, in its sole discretion in
each instance, finance Eligible Accounts on an aggregate basis by extending
credit to Borrower in an amount equal to the result of the Advance Rate
multiplied by the aggregate face amount of a summary listing of Eligible
Accounts provided to Bank for one Account Debtor (the “Aggregate Eligible
Accounts”).  Bank may, in its sole discretion, change the percentage
of the Advance Rate for the Aggregate Eligible Accounts on a case by case
basis.

       

      (iii)           Any
extension of credit made pursuant to the terms of subsection (i) or (ii) above
shall hereinafter be referred to as an “Advance”.  When Bank makes an
Advance, the Eligible Account or the Aggregate Eligible Accounts each become a
separate “Financed Receivable”.”

       

      (b)           Maximum
Advances.  The aggregate face amount of all Financed
Receivables outstanding at any time may not exceed the Facility
Amount.  In addition and notwithstanding the foregoing, (i) the
aggregate amount of Advances outstanding at any time may not exceed Ten Million
Dollars ($10,000,000.00), and (ii) the aggregate amount of Advances made based
upon Aggregate Eligible Accounts outstanding at any time may not exceed One
Million Five Hundred Thousand Dollars ($1,500,000.00).

       

      (c)           Borrowing
Procedure.  Borrower will deliver an Advance Request and
Invoice Transmittal in the form attached hereto as Exhibit
C signed by a Responsible Officer for each Advance it requests,
accompanied by an accounts receivable aging with respect to Advances requested
to be made based upon Aggregate Eligible Accounts, or by invoices with respect
to Advances requested to be made based upon Eligible Accounts.  Bank
may rely on information set forth in or provided with the Advance Request and
Invoice Transmittal.”

       

      
        	
                 
      

              	
                2

              	
                The
      Loan Agreement shall be amended by deleting the following text, appearing
      in Section 2.1.1(f):

              

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      “If this
Agreement is terminated (A) by Bank in accordance with clause (ii) in the
foregoing sentence, or (B) by Borrower for any reason, Borrower shall pay to
Bank a termination fee in an amount equal to One Hundred Thousand Dollars
($100,000.00) (the “Early Termination Fee”).”

       

      and
inserting in lieu thereof the following:

       

      “If this
Agreement is terminated (A) by Bank in accordance with clause (ii) in the
foregoing sentence, or (B) by Borrower for any reason, Borrower shall pay to
Bank a termination fee in an amount equal to Fifty Thousand Dollars ($50,000.00)
(the “Early Termination Fee”).”

       

      
        	
                 
      

              	
                3

              	
                The
      Loan Agreement shall be amended by deleting the following, appearing as
      Section 2.1.1(h) thereof, in its
entirety:

              

      

       

      “           (h)           Suspension of
Advances.  Borrower’s ability to request that Bank finance
Eligible Accounts hereunder will terminate if, in Bank’s sole discretion, there
has been a material adverse change in the general affairs, management, results
of operation, condition (financial or otherwise) or the prospect of repayment of
the Obligations, or there has been any material adverse deviation by Borrower
from the most recent business plan of Borrower presented to and accepted by Bank
prior to the execution of this Agreement.”

       

      and
inserting in lieu thereof the following:

       

      “           (h)           Suspension of
Advances.   Without limiting the fact that Bank has no
obligation to make Advances based upon Aggregate Eligible Accounts, Borrower’s
ability to request that Bank finance Eligible Accounts hereunder will terminate
if, in Bank’s sole discretion, there has been a material adverse change in the
general affairs, management, results of operation, condition (financial or
otherwise) or the prospect of repayment of the Obligations, or there has been
any material adverse deviation by Borrower from the most recent business plan of
Borrower presented to and accepted by Bank prior to the execution of this
Agreement.”

       

      
        	
                 
      

              	
                4

              	
                The
      Loan Agreement shall be amended by deleting the following text, appearing
      in Section 2.2.3 thereof:

              

      

       

      “The
Finance Charge is payable when the Advance made based on such Financed
Receivable is payable in accordance with Section 2.3 hereof.”

       

      and
inserting in lieu thereof the following:

       

      “Except
as otherwise provided in Section 2.3.1(b)(i), the Finance Charge is payable when
the Advance made based on such Financed Receivable is payable in accordance with
Section 2.3 hereof.”

       

      
        	
                 
      

              	
                5

              	
                The
      Loan Agreement shall be amended by deleting the following text, appearing
      in Section 2.2.4 thereof:

              

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      “Borrower
will pay to Bank a collateral handling fee equal to 0.20% per month of the
Financed Receivable Balance for each Financed Receivable outstanding based upon
a 360 day year (the “Collateral Handling Fee”), provided, however, for any
Subject Month (as of the first calendar day of such month) to the extent that
Borrower maintained Liquidity of greater than Twelve Million Five Hundred
Thousand Dollars ($12,500,000.00) at all times during the applicable Testing
Month, the Collateral Handling Fee shall be waived for such
month.  This fee is charged on a daily basis which is equal to the
Collateral Handling Fee divided by 30, multiplied by the number of days each
such Financed Receivable is outstanding, multiplied by the outstanding Financed
Receivable Balance.  The Collateral Handling Fee is payable when the
Advance made based on such Financed Receivable is payable in accordance with
Section 2.3 hereof.”

       

      and
inserting in lieu thereof the following:

       

      “Borrower
will pay to Bank a collateral handling fee equal to 0.20% (or, with respect to
Financed Receivables based upon Aggregate Eligible Accounts, 0.30%) per month of
the Financed Receivable Balance for each Financed Receivable outstanding based
upon a 360 day year (the “Collateral Handling Fee”), provided, however, for any
Subject Month (as of the first calendar day of such month) to the extent that
Borrower maintained Liquidity of greater than Twelve Million Five Hundred
Thousand Dollars ($12,500,000.00) at all times during the applicable Testing
Month, the Collateral Handling Fee shall be 0.0% (or, with respect to Financed
Receivables based upon Aggregate Eligible Accounts, 0.10%) per month of the
Financed Receivable Balance for each Financed Receivable outstanding based upon
a 360 day year.  This fee is charged on a daily basis which is equal
to the Collateral Handling Fee divided by 30, multiplied by the number of days
each such Financed Receivable is outstanding, multiplied by the outstanding
Financed Receivable Balance.  Except as otherwise provided in Section
2.3.1(b)(i), the Collateral Handling Fee is payable when the Advance made based
on such Financed Receivable is payable in accordance with Section 2.3
hereof.”

       

      
        	
                 
      

              	
                6

              	
                The
      Loan Agreement shall be amended by deleting the following, appearing as
      Section 2.3.1 thereof:

              

      

       

      “           2.3.1           Repayment.  Borrower
will repay each Advance on the earliest of: (a) the date on which payment is
received of the Financed Receivable with respect to which the Advance was made,
(b) the date on which the Financed Receivable is no longer an Eligible Account,
(c) the date on which any Adjustment is asserted to the Financed Receivable (but
only to the extent of the Adjustment if the Financed Receivable remains
otherwise an Eligible Account), (d) the date on which there is a breach of any
warranty or representation set forth in Section 5.3, or (e) the Maturity Date
(including any early termination). Each payment will also include all accrued
Finance Charges and Collateral Handling Fees with respect to such Advance and
all other amounts then due and payable hereunder.”

       

      and
inserting in lieu thereof the following:

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      “           2.3.1           Repayment.

       

      (a)           With
respect to Advances made based on specific Eligible Accounts, Borrower will
repay each Advance on the earliest of: (i) the date on which payment is received
of the Financed Receivable with respect to which the Advance was made, (ii) the
date on which the Financed Receivable is no longer an Eligible Account, (iii)
the date on which any Adjustment is asserted to the Financed Receivable (but
only to the extent of the Adjustment if the Financed Receivable remains
otherwise an Eligible Account), (iv) the date on which there is a breach of any
warranty or representation set forth in Section 5.3, or (v) the Maturity Date
(including any early termination). Each payment will also include all accrued
Finance Charges and Collateral Handling Fees with respect to such Advance and
all other amounts then due and payable hereunder.

       

      (b)           With
respect to Advances made based on Aggregate Eligible Accounts:

       

      (i)           Borrower
shall pay to Bank, on the first day of each Reconciliation Period, and
contemporaneously with payment in full of an Advance made based upon Aggregate
Eligible Accounts, all accrued Finance Charges and Collateral Handling Fees on
the Advances made based on the Aggregate Eligible Accounts;

       

      (ii)           Borrower
shall also pay the principal amount of each Advance made based on Aggregate
Eligible Accounts on the earliest of: (A) the date the Financed Receivable (or
any portion thereof) is no longer an Eligible Account, or an Adjustment has been
made to any portion of the Aggregate Eligible Accounts, or any Account
comprising the Aggregate Eligible Accounts has been paid by the Account Debtor
(but in each case only up to the portion of Advances such that the aggregate
Financed Receivable Balance (net of any Accounts that are paid, not Eligible
Accounts, or subject to an Adjustment) is not less than 125% of the aggregate
Advances made thereon); (B) the date on which there is a breach of any warranty
or representation set forth in Section 5.3; or (C) the Maturity Date (including
any early termination); and

       

      (iii)           In
addition to the foregoing, Borrower hereby authorizes Bank to, at Bank’s
election in its sole discretion, refinance each outstanding Advance which is
made based upon Aggregate Eligible Accounts at any time, including, without
limitation, when a portion of the Advance is repaid or when Bank makes an
additional Advance pertaining to Aggregate Eligible Accounts in respect of the
same Account Debtor.  Each such refinancing shall consist of the
creation of a new “placeholder note” on the books of Bank which evidences the
Financed Receivable Balance with respect to such Advance.”

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        	
                 
      

              	
                7

              	
                The
      Loan Agreement shall be amended by deleting the following, appearing as
      Section 6.7:

              

      

       

      “           6.7           Financial
Covenants.  Borrower shall maintain at all times, to be tested
as of the last day of each month, unless otherwise noted:

       

      (a)           EBDA.  EBDA
for the three-month period ending on the last day of each month of at
least:

       

      
        
          
            
              
                
                  
                    
                      	
                              Period

                            	
                              Minimum
      EBDA

                            
	
                              For
      the three-month period ending on 

                              February
      29, 2008

                            	
                               

                              ($4,000,000.00)

                            
	
                              January
      1, 2008 through March 31, 2008

                            	
                              ($4,000,000.00)

                            
	
                              February
      1, 2008 through April 30, 2008

                            	
                              ($2,500,000.00)

                            
	
                              March
      1, 2008 through May 31, 2008

                            	
                              ($1,400,000.00)

                            
	
                              April
      1, 2008 through June 30, 2008

                            	
                              ($500,000.00)

                            
	
                              May
      1, 2008 through July 31, 2008

                            	
                              $1.00

                            
	
                              June
      1, 2008 through August 31, 2008

                            	
                              $100,000.00

                            
	
                              July
      1, 2008 through September 30, 2008

                            	
                              $300,000.00

                            
	
                              August
      1, 2008 through October 31, 2008

                            	
                              $300,000.00

                            
	
                              September
      1, 2008 through November 30, 2008

                            	
                              $500,000.00

                            
	
                              October
      1, 2008 through December 31, 2008, and each three month period ending on
      the last day of each month thereafter

                            	
                              $750,000.00

                            

                    

                  

                

              

            

          

        

      

      

      (b)           Liquidity
Ratio.  At all times, to be tested as of any day, until the
occurrence of the EBDA Event, Borrower shall have a Liquidity Ratio of at least
2.0 to 1.0.”

       

      and
inserting in lieu thereof the following:

       

      “           6.7           Financial
Covenants.  Borrower shall maintain at all times, to be tested
as of the last day of each month, unless otherwise noted:

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      (a)           EBDA.  EBDA
for the three-month period ending on the last day of each month of at
least:

       

      
        
          
            
              
                
                  
                    	
                            Period

                          	
                            Minimum
      EBDA

                          
	
                            For
      the three-month period ending on 

                            February
      29, 2008

                          	
                             

                            ($4,000,000.00)

                          
	
                            January
      1, 2008 through March 31, 2008

                          	
                            ($4,000,000.00)

                          
	
                            February
      1, 2008 through April 30, 2008

                          	
                            ($2,500,000.00)

                          
	
                            March
      1, 2008 through May 31, 2008

                          	
                            ($1,400,000.00)

                          
	
                            April
      1, 2008 through June 30, 2008

                          	
                            ($500,000.00)

                          
	
                            May
      1, 2008 through July 31, 2008

                          	
                            $1.00

                          
	
                            June
      1, 2008 through August 31, 2008

                          	
                            $100,000.00

                          
	
                            July
      1, 2008 through September 30, 2008

                          	
                            $300,000.00

                          
	
                            August
      1, 2008 through October 31, 2008

                          	
                            $300,000.00

                          
	
                            September
      1, 2008 through November 30, 2008

                          	
                            $500,000.00

                          
	
                            October
      1, 2008 through December 31, 2008

                          	
                            $750,000.00

                          
	
                            November
      1, 2008 through January 31, 2009

                          	
                            $750,000.00

                          
	
                            December
      1, 2008 through February 28, 2009

                          	
                            $750,000.00

                          
	
                            January
      1, 2009 through March 31, 2009

                          	
                            $1.00

                          
	
                            February
      1, 2009 through April 30, 2009

                          	
                            $250,000.00

                          
	
                            March
      1, 2009 through May 31, 2009

                          	
                            $250,000.00

                          
	
                            April
      1, 2009 through June 30, 2009

                          	
                            $500,000.00

                          
	
                            May
      1, 2009 through July 31, 2009

                          	
                            $850,000.00

                          
	
                            June
      1, 2009 through August 31, 2009

                          	
                            $850,000.00

                          
	
                            July
      1, 2009 through September 30, 2009

                          	
                            $850,000.00

                          
	
                            August
      1, 2009 through October 31, 2009, and each three month period ending on
      the last day of each month thereafter

                          	
                            $1,000,000.00

                          

                  

                

              

            

          

        

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        	
                 
      

              	
                8

              	
                The
      Loan Agreement shall be amended by deleting the following text, appearing
      in the definition of Eligible Accounts in Section 13.1
      thereof:

              

      

       

      “           (k)           Accounts
for which Bank reasonably determines collection to be doubtful or any Accounts
which are unacceptable to Bank for any reason.”

       

      and
inserting in lieu thereof the following:

       

      “           (k)           With
respect to Advances (and requests for Advances) made based upon Eligible
Accounts, Accounts pertaining to a receivable in an amount that is less than or
equal to Five Thousand Dollars ($5,000.00); and

       

      (l)           Accounts
for which Bank reasonably determines collection to be doubtful or any Accounts
which are unacceptable to Bank for any reason.”

       

      
        	
                 
      

              	
                9

              	
                The
      Loan Agreement shall be amended by inserting the following definition
      appearing alphabetically in Section 13.1
  thereof:

              

      

       

      “           “Aggregate Eligible Accounts”
is defined in Section 2.1.1.”

       

      
        	
                 
      

              	
                10

              	
                The
      Loan Agreement shall be amended by deleting the following definitions
      appearing in Section 13.1 thereof:

              

      

       

      “           “Applicable Rate” is a per
annum rate equal to the Prime Rate plus one and one half of one percent
(1.50%), provided, however, for any Subject Month (as of the first calendar day
of such month), to the extent that Borrower maintained Liquidity of greater than
Twelve Million Five Hundred Thousand Dollars ($12,500,000.00) at all times
during the applicable Testing Month, the Applicable Rate shall be a per annum
rate equal to the Prime Rate plus three quarters of one percent
(0.75%).”

       

      “           “Collections” are all funds received
by Bank from or on behalf of an Account Debtor for Financed
Receivables.”

       

      “           “Facility Amount” is
Twenty-Five Million Dollars ($25,000,000.00).”

       

      “           “Financed Receivables” are all
those Eligible Accounts, including their proceeds which Bank finances and makes
an Advance, as set forth in Section 2.1.1.  A Financed Receivable
stops being a Financed Receivable (but remains Collateral) when the Advance made
for the Financed Receivable has been fully paid.”

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      “           “Invoice Transmittal” shows
Eligible Accounts which Bank may finance and, for each such Account, includes
the Account Debtor’s, name, address, invoice amount, invoice date and invoice
number.”

       

      “           “Maturity Date” is 364 days from the date
of this Agreement.”

       

      and
inserting in lieu thereof the following:

       

      “           “Advance Request and Invoice
Transmittal” shows Eligible Accounts and/or Aggregate Eligible Accounts
which Bank may finance and, for each such Account, includes the Account
Debtor’s, name, address, invoice amount, invoice date and invoice
number.”

       

      “           “Applicable Rate” is a per
annum rate equal to the Prime Rate plus one and three quarters of one
percent (1.75%), provided, however, for any Subject Month (as of the first
calendar day of such month), to the extent that Borrower maintained Liquidity of
greater than Twelve Million Five Hundred Thousand Dollars ($12,500,000.00) at
all times during the applicable Testing Month, the Applicable Rate shall be a
per annum rate equal to the Prime Rate plus one percent (1.0%).”

       

      “           “Collections” are (a) all funds
received by Bank from or on behalf of an Account Debtor for Financed
Receivables, and (b) any refinancing by Bank, to be completed at Bank’s
discretion pursuant to Section 2.3.1(b)(iii), of any Advance (or portion
thereof) which is based upon Aggregate Eligible Accounts.”

       

      “           “Facility Amount” is Twelve
Million Five Hundred Thousand Dollars ($12,500,000.00).”

       

      “           “Financed Receivables” are all
those Eligible Accounts and Aggregate Eligible Accounts, including their
proceeds which Bank finances and makes an Advance, as set forth in Section
2.1.1.  A Financed Receivable stops being a Financed Receivable (but
remains Collateral) when the Advance made for the Financed Receivable has been
fully paid.”

       

      “           “Maturity Date” is March 29,
2010.”

       

      
        	
                 
      

              	
                11

              	
                The
      Loan Agreement shall be amended by deleting the Compliance Certificate
      appearing as Exhibit
      B thereto and inserting in lieu thereof the Compliance Certificate
      attached on Schedule
      1 hereto.

              

      

       

      
        	
                 
      

              	
                12

              	
                The
      Loan Agreement shall be amended by inserting Schedule
      1 hereto as Exhibit
      C thereto, and any and all references in the Loan Agreement to
      “Invoice Transmittal” shall hereafter mean and refer to “Advance Request
      and Invoice Transmittal in the form of Exhibit
      C hereto”.

              

      

       

      4.           FEES.  Borrower
shall pay to Bank a modification fee equal to Fifty-Five Thousand Dollars
($55,000.00) which fee shall be due on the date hereof and shall be deemed fully
earned as of the date hereof.  Borrower shall also reimburse Bank for
all legal fees and expenses incurred in connection with this amendment to the
Existing Loan Documents.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      5.           RATIFICATION OF IP SECURITY
AGREEMENTS.

       

      (a)           Global
hereby ratifies, confirms and reaffirms, all and singular, the terms and
conditions of the Global IP Security Agreement and acknowledges, confirms and
agrees that the Global IP Security Agreement contains an accurate and complete
listing of all Intellectual Property Collateral as defined therein.

       

      (b)           Bode
hereby ratifies, confirms and reaffirms, all and singular, the terms and
conditions of the Bode IP Security Agreement and acknowledges, confirms and
agrees that the Bode IP Security Agreement contains an accurate and complete
listing of all Intellectual Property Collateral as defined therein.

       

      6.           RATIFICATIONS OF PERFECTION
CERTIFICATES.

       

      (a)           Global
hereby ratifies, confirms and reaffirms, all and singular, the terms and
disclosures contained in a certain Perfection Certificate dated as of March 31,
2008 between Global and Bank, and acknowledges, confirms and agrees the
disclosures and information Global provided to Bank in the Perfection
Certificate have not changed, as of the date hereof.

       

      (b)           Bode
hereby ratifies, confirms and reaffirms, all and singular, the terms and
disclosures contained in a certain Perfection Certificate dated as of March 31,
2008 between Bode and Bank, and acknowledges, confirms and agrees the
disclosures and information Bode provided to Bank in the Perfection Certificate
have not changed, as of the date hereof.

       

      7.           CONSISTENT
CHANGES.  The Existing Loan Documents are hereby amended
wherever necessary to reflect the changes described above.

       

      8.           RATIFICATION OF LOAN
DOCUMENTS.  Borrower hereby ratifies, confirms, and reaffirms
all terms and conditions of all security or other collateral granted to the
Bank, and confirms that the indebtedness secured thereby includes, without
limitation, the Obligations.

       

      9.           NO DEFENSES OF
BORROWER.  Borrower hereby acknowledges and agrees that
Borrower has no offsets, defenses, claims, or counterclaims against Bank with
respect to the Obligations, or otherwise, and that if Borrower now has, or ever
did have, any offsets, defenses, claims, or counterclaims against Bank, whether
known or unknown, at law or in equity, all of them are hereby expressly WAIVED
and Borrower hereby RELEASES Bank from any liability thereunder.

       

      10.           CONTINUING
VALIDITY.  Borrower understands and agrees that in modifying
the existing Obligations, Bank is relying upon Borrower’s representations,
warranties, and agreements, as set forth in the Existing Loan
Documents.  Except as expressly modified pursuant to this Loan
Modification Agreement, the terms of the Existing Loan Documents remain
unchanged and in full force and effect.  Bank’s agreement to
modifications to the existing Obligations pursuant to this  Loan
Modification Agreement in no way shall obligate Bank to make any future
modifications to the Obligations.  Nothing in this Loan Modification
Agreement shall constitute a satisfaction of the Obligations.  It is
the intention of Bank and Borrower to retain as liable parties all makers of
Existing Loan Documents, unless the party is expressly released by Bank in
writing.  No maker will be released by virtue of this Loan
Modification Agreement.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      11.           COUNTERSIGNATURE.  This
Loan Modification Agreement shall become effective only when it shall have been
executed by Borrower and Bank.

       

      [The
remainder of this page is intentionally left blank]

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      This Loan
Modification Agreement is executed as a sealed instrument under the laws of the
Commonwealth of Massachusetts as of the date first written above.

       

      
        
          	
                  BORROWER:

                	 
      	
                  BANK:

                
	 
      	 
      	 
      
	
                  GLOBALOPTIONS,
      INC.

                	 
      	
                  SILICON
      VALLEY BANK

                
	 
      	 
      	 
      
	
                  By:

                	
                  
                    /s/
      Jeffrey O. Nyweide

                  

                	 
      	
                  By:

                	
                  
                    /s/
      Christine Egitto

                  

                
	 
      	 
      	 
      	 
      	 
      
	
                  Name:

                	
                  
                    Jeffrey
      O. Nyweide

                  

                	 
      	
                  Name:

                	
                  
                    Christine
      Egitto

                  

                
	 
      	 
      	 
      	 
      	 
      
	
                  Title:

                	
                  
                    Chief
      Financial Officer

                  

                	 
      	
                  Title:

                	
                  
                    Vice
      President

                  

                

        

        

        

        
          	
                  THE
      BODE TECHNOLOGY GROUP, INC.

                	 
      	 
      
	 
      	 
      	 
      
	
                  By:

                	
                  
                    /s/
      Jeffrey O. Nyweide

                  

                	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	
                  Name:

                	
                  
                    Jeffrey
      O. Nyweide

                  

                	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	
                  Title:

                	
                  
                    Chief
      Financial Officer

                  

                	 
      	 
      	 
      

        

        

        

        The
undersigned, GLOBALOPTIONS
GROUP, INC. ( “Guarantor”) hereby ratifies, confirms and reaffirms, all
and singular, the terms and conditions of (a) a certain Unconditional Guaranty
(the “Guaranty”) dated as of March 31, 2008, executed and delivered by
Guarantor, pursuant to which Guarantor unconditionally guaranteed the prompt,
punctual and faithful payment and performance of all Obligations of Borrower to
Bank, and (b) a certain Security Agreement (the “Security Agreement”) dated as
of March 31, 2008, between Guarantor and Bank, pursuant to which Guarantor
granted Bank a continuing first priority security interest in the Collateral (as
the term is defined therein) to secure the payment and performance of the
Obligations under the Guaranty in accordance with the terms of the Security
Agreement.  In addition, Guarantor acknowledges, confirms and agrees
that the Guaranty and Security Agreement shall remain in full force and effect
and shall in no way be limited by the execution of this Loan Modification
Agreement, or any other documents, instruments and/or agreements executed and/or
delivered in connection herewith.

         

        
          	 
      	 
      	
                  GLOBALOPTIONS
      GROUP, INC.

                
	 
      	 
      	 
      
	 
      	 
      	 
      	
                  By:

                	
                  
                    /s/
      Harvey W. Schiller

                  

                
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	
                  Name:

                	
                  
                    Harvey
      W. Schiller

                  

                
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	
                  Title:

                	
                  
                    Chairman
      and Chief Executive Officer

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