Document:

ex101to8k06282_04072008.htm

    Exhibit 10.1

     

    
      

      (Working
Capital Line of Credit)

       

      FOURTH
AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT

       

       

      This
FOURTH AMENDED AND
RESTATED LOAN AND
SECURITY AGREEMENT (this “Agreement”) dated as of March 31, 2008, 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
(FAX 703-356-7643) (“Bank”) and (b) (i) GLOBALOPTIONS, INC., a
Delaware corporation with offices at 1501 M Street, N.W., Washington, D.C. 20005
(FAX 202-585-0792) (“Global”), and (ii) THE BODE TECHNOLOGY GROUP,
INC., a Delaware corporation with offices at 1501 M 
Street, N.W., Washington, D.C. 20005 (FAX 202-585-0792) (“Bode”) (Global and
Bode are jointly and severally, individually and collectively, referred to
herein as the “Borrower”), provides the terms on which Bank shall lend to
Borrower and Borrower shall repay Bank.  This Agreement amends and
restates in its entirety a certain Third Amended and Restated Loan and Security
Agreement dated as of October 12, 2006, entered into by and among Bank and
Borrower, as amended from time to time (the “Prior Agreement”).  The
parties agree as follows:

       

      1           ACCOUNTING AND OTHER
TERMS

       

      Accounting
terms not defined in this Agreement shall be construed following
GAAP.  Calculations and determinations must be made following
GAAP.  The term “financial statements” includes the notes and
schedules.  The terms “including” and “includes” always mean
“including (or includes) without limitation,” in this or any Loan
Document.  Capitalized terms in this Agreement shall have the meanings
set forth in Section 13.  All other terms contained in this Agreement,
unless otherwise indicated, shall have the meanings provided by the Code, to the
extent such terms are defined therein.

       

      2           LOAN AND TERMS OF
PAYMENT

       

      2.1           Promise
to Pay.  Borrower hereby unconditionally promises to pay Bank
the unpaid principal amount of all Advances hereunder with all interest, fees
and finance charges due thereon as and when due in accordance with this
Agreement.

       

      2.1.1           Financing
of Accounts.

       

      (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.

       

      (d)           Credit Quality;
Confirmations.  Bank may, at its option, conduct a credit check
of the Account Debtor for each Account requested by Borrower for financing
hereunder in order to approve any such Account Debtor’s credit before agreeing
to finance such Account.  Bank may also verify directly with the
respective Account Debtors the validity, amount and other matters relating to
the Accounts (including confirmations of Borrower’s representations in Section
5.3) by means of mail, telephone or otherwise, either in the name of Borrower or
Bank from time to time in its sole discretion.

       

      (e)           Accounts
Notification/Collection.  Bank may notify any Person owing
Borrower money of Bank’s security interest in the funds and verify and/or
collect the amount of the Account.

       

      (f)           Early
Termination.  This Agreement may be terminated prior to the
Maturity Date as follows: (i) by Borrower, effective three Business Days after
written notice of termination is given to Bank; or (ii) by Bank at any time
after the occurrence of an Event of Default, with notice, and after the cure
period (if any) if such Event of Default is not cured, effective
immediately.  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”).  The Early Termination Fee shall be due and payable on the
effective date of such termination and thereafter shall bear interest at a rate
equal to the highest rate applicable to any of the
Obligations.  Notwithstanding the foregoing, Bank agrees to waive the
Early Termination Fee if Bank agrees to refinance and redocument this Agreement
under another division of Bank (in its sole and exclusive discretion) prior to
the Maturity Date.

       

      (g)           Maturity.  This
Agreement shall terminate and all Obligations outstanding hereunder shall be
immediately due and payable on the Maturity Date.

       

      (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.

       

      2.2           Collections,
Finance Charges, Remittances and Fees.  The Obligations shall
be subject to the following fees and Finance Charges.  Unpaid fees and
Finance Charges may, in Bank’s discretion, accrue interest and fees as described
in Section 9.2 hereof.

       

      2.2.1           Collections.  Collections
will be credited to the Financed Receivable Balance for such Financed
Receivable, but if there is an Event of Default, Bank may apply Collections to
the Obligations in any order it chooses.  If Bank receives a payment
for both a Financed Receivable and a non-Financed Receivable, the funds will
first be applied to the Financed Receivable and, if there is no Event of Default
then existing, the excess will be remitted to Borrower, subject to Section
2.2.7.

       

      2.2.2           Facility
Fee.  A fully earned, non-refundable facility fee of One
Hundred Thousand Dollars ($100,000.00) is due upon execution of this Agreement
(the “Facility Fee”).

       

      2.2.3           Finance
Charges.  In computing Finance Charges on the Obligations under
this Agreement, all Collections received by Bank shall be deemed applied by Bank
on account of the Obligations three (3) Business Days after receipt of the
Collections.  Borrower will pay a finance charge (the “Finance
Charge”) on each Financed Receivable which is equal to the Applicable Rate divided by 360 multiplied by the
number of days each such Financed Receivable is outstanding multiplied by the
outstanding Financed Receivable Balance.  The Finance Charge is
payable when the Advance made based on such Financed Receivable is payable in
accordance with Section 2.3 hereof. After an Event of Default, the Applicable
Rate will increase an additional five percent (5.0%) per annum effective
immediately upon the occurrence of such Event of Default.

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      2.2.4           Collateral
Handling Fee.  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.  In computing Collateral Handling
Fees under this Agreement, all Collections received by Bank shall be deemed
applied by Bank on account of Obligations three (3) Business Days after receipt
of the Collections.  After an Event of Default, the Collateral
Handling Fee will increase an additional 0.50% effective immediately upon such
Event of Default; provided, however, as of the first day of the month following
the month in which the applicable Event of Default is cured (so long as at such
time there is no other Event of Default), the Collateral Handling Fee shall be
reduced to the applicable rate as set forth in the first sentence of this
Section 2.2.4.

       

      2.2.5           Accounting.  After
each Reconciliation Period, Bank will provide an accounting of the transactions
for that Reconciliation Period, including the amount of all Financed
Receivables, all Collections, Adjustments, Finance Charges, Collateral Handling
Fee, Unused Line Facility Fee, and the Facility Fee.  If Borrower does
not object to the accounting in writing within thirty (30) days it shall be
considered accurate.  All Finance Charges and other interest and fees
are calculated on the basis of a 360 day year and actual days
elapsed.

       

      2.2.6           Deductions.  Bank
may deduct fees, Finance Charges, Advances which become due pursuant to Section
2.3, and other amounts due pursuant to this Agreement from any Advances made or
Collections received by Bank.

       

      2.2.7           Lockbox;
Account Collection Services.

       

      (a)           As
and when directed by Bank from time to time, at Bank’s option and at the sole
and exclusive discretion of Bank (regardless of whether an Event of Default has
occurred), Borrower shall direct each Account Debtor (and each depository
institution where proceeds of Accounts are on deposit) to remit payments with
respect to the Accounts to a lockbox account established with Bank or to wire
transfer payments to a cash collateral account that Bank controls (collectively,
the “Lockbox”).  It will be considered an immediate Event of Default
if the Lockbox is not set-up and operational on the Closing Date.

       

      (b)           Until
such Lockbox is established, the proceeds of the Accounts shall be paid by the
Account Debtors to an address consented to by Bank.  Upon receipt by
Borrower of such proceeds, Borrower shall immediately transfer and deliver same
to Bank, along with a detailed cash receipts journal.  Provided no
Event of Default exists or an event that with notice or lapse of time will be an
Event of Default, within three (3) days of receipt of such amounts by Bank, Bank
will turn over to Borrower the proceeds of the Accounts other than Collections
with respect to Financed Receivables and the amount of Collections in excess of
the amounts for which Bank has made an Advance to Borrower, less any amounts due
to Bank, such as the Finance Charge, the Facility Fee, payments due to Bank,
other fees and expenses, or otherwise; provided, however, Bank may hold such
excess amount with respect to Financed Receivables as a reserve until the end of
the applicable Reconciliation Period if Bank, in its discretion, determines that
other Financed Receivable(s) may no longer qualify as an Eligible Account at any
time prior to the end of the subject Reconciliation Period.  This
Section does not impose any affirmative duty on Bank to perform any act other
than as specifically set forth herein.  All Accounts and the proceeds
thereof are Collateral and if an Event of Default occurs, Bank may apply the
proceeds of such Accounts to the Obligations.

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      2.2.8           Unused
Line Facility Fee.  As compensation for Bank’s maintenance of
sufficient funds available for such purpose, Bank shall have earned a fee (the
“Unused Line Facility Fee”), which fee shall be paid quarterly, in arrears, on a
calendar year basis, in an amount equal to three-eighths of one percent (0.375%)
per annum of the average unused portion of the Availability, as determined by
Bank.  Borrower shall not be entitled to any credit, rebate or
repayment of any Unused Line Facility Fee previously earned by Bank pursuant to
this Section 2.2.8 notwithstanding any termination of the within Agreement, or
suspension or termination of Bank’s obligation to make loans and advances
hereunder.

       

      2.3           Repayment
of Obligations; Adjustments.

       

      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.

       

      2.3.2           Repayment
on Event of Default.  When there is an Event of Default,
Borrower will, if Bank demands (or, upon the occurrence of an Event of Default
under Section 8.5, immediately without notice or demand from Bank) repay all of
the Advances.  The demand may, at Bank’s option, include the Advance
for each Financed Receivable then outstanding and all accrued Finance Charges,
the Early Termination Fee, the Unused Line Facility Fee, Collateral Handling
Fee, attorneys’ and professional fees, court costs and expenses, and any other
Obligations.

       

      2.3.3           Debit of
Accounts.  Bank may debit any of Borrower’s deposit accounts
for payments or any amounts Borrower owes Bank hereunder.  Bank shall
promptly notify Borrower when it debits Borrower’s accounts.  These
debits shall not constitute a set-off.

       

      2.3.4           Adjustments.  If
at any time during the term of this Agreement any Account Debtor asserts an
Adjustment or if Borrower issues a credit memorandum or if any of the
representations, warranties or covenants set forth in Section 5.3 are no longer
true in all material respects, Borrower will promptly advise Bank.

       

      2.4           Power of
Attorney.  Borrower irrevocably appoints Bank and its
successors and assigns as attorney-in-fact and authorizes Bank, to: (a)
following the occurrence of an Event of Default, (i) sell, assign, transfer,
pledge, compromise, or discharge all or any part of the Financed Receivables;
(ii) demand, collect, sue, and give releases to any Account Debtor for monies
due and compromise, prosecute, or defend any action, claim, case or proceeding
about the Financed Receivables, including filing a claim or voting a claim in
any bankruptcy case in Bank’s or Borrower’s name, as Bank chooses; and (iii)
prepare, file and sign Borrower’s name on any notice, claim, assignment, demand,
draft, or notice of or satisfaction of lien or mechanics’ lien or similar
document; and (b) regardless of whether there has been an Event of
Default,  (i) notify all Account Debtors to pay Bank directly; (ii)
receive, open, and dispose of mail addressed to Borrower; (iii) endorse
Borrower’s name on checks or other instruments (to the extent necessary to pay
amounts owed pursuant to this Agreement); and (iv) execute on Borrower’s behalf
any instruments, documents, financing statements to perfect Bank’s interests in
the Financed Receivables and Collateral and do all acts and things necessary or
expedient, as determined solely and exclusively by Bank, to protect
or  preserve, Bank’s rights and remedies under this Agreement, as
directed by Bank.

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      3           CONDITIONS OF
LOANS

       

      3.1           Conditions
Precedent to Initial Advance.  Bank’s agreement to make the
initial Advance is subject to the condition precedent that each Borrower shall
consent to or shall have delivered, in form and substance satisfactory to Bank,
such documents, and completion of such other matters, as Bank may reasonably
deem necessary or appropriate, including, without limitation:

       

      (a)           a
certificate of the Secretary of Borrower with respect to articles, bylaws,
incumbency and resolutions authorizing the execution and delivery of this
Agreement;

       

      (b)           the
IP Security Agreement;

       

      (c)           Perfection
Certificate by Borrower;

       

      (d)           a
legal opinion of Borrower’s and Guarantor’s counsel (authority/enforceability),
in form and substance acceptable to Bank;

       

      (e)           a
certificate of the Secretary of Guarantor with respect to articles, bylaws,
incumbency and resolutions authorizing the execution and delivery of the
Unconditional Guaranty and the Security Agreement;

       

      (f)           unconditional
guaranty by the Guarantor;

       

      (g)           security
agreement by the Guarantor;

       

      (h)           Account
Control Agreement/ Investment Account Control Agreement;

       

      (i)           evidence
satisfactory to Bank that the insurance policies required by Section 6.5 hereof
are in full force and effect, together with appropriate evidence showing lender
loss payable and/or additional insured clauses or endorsements in favor of
Bank;

       

      (j)           payment
of the fees and Bank Expenses then due and payable;

       

      (k)           Certificates
of Foreign Qualification (as applicable) for Borrower and
Guarantor;

       

      (l)           Certificate
of Good Standing/Legal Existence for Borrower and Guarantor; and

       

      (m)           such
other documents, and completion of such other matters, as Bank may reasonably
deem necessary or appropriate.

       

       

      3.2           Conditions
Precedent to all Advances.  Bank’s agreement to make each
Advance, including the initial Advance, is subject to the
following:

       

      (a)           receipt
of the Invoice Transmittal;

       

      (b)           Bank
shall have (at its option) conducted the confirmations and verifications as
described in Section 2.1.1(d); and

       

      (c)           each
of the representations and warranties in Section 5 shall be true on the date of
the Invoice Transmittal and on the effective date of each Advance and no Event
of Default shall have occurred and be continuing, or result from the
Advance.  Each Advance is Borrower’s representation and warranty on
that date that the representations and warranties in Section 5 remain
true.

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      4           CREATION OF SECURITY
INTEREST

       

      4.1           Grant of
Security Interest.  Borrower hereby grants Bank, to secure the
payment and performance in full of all of the Obligations and the performance of
each of Borrower’s duties under the Loan Documents, a continuing security
interest in, and pledges and assigns to Bank, the Collateral, wherever located,
whether now owned or hereafter acquired or arising, and all proceeds and
products thereof.  Borrower warrants and represents that the security
interest granted herein shall be a first priority security interest in the
Collateral.

       

      If the
Agreement is terminated, Bank’s lien and security interest in the Collateral
shall continue until Borrower fully satisfies its Obligations.  If
Borrower shall at any time, acquire a commercial tort claim, Borrower shall
promptly notify Bank in a writing signed by Borrower of the brief details
thereof and grant to Bank in such writing a security interest therein and in the
proceeds thereof, all upon the terms of this Agreement, with such writing to be
in form and substance satisfactory to Bank.

       

      4.2           Authorization
to File Financing Statements.  Borrower hereby authorizes Bank
to file financing statements, without notice to Borrower, with all appropriate
jurisdictions in order to perfect or protect Bank’s interest or rights
hereunder, which financing statements may indicate the Collateral as “all assets
of the Debtor” or words of similar effect, or as being of an equal or lesser
scope, or with greater detail, all in Bank’s discretion, and may include a
notice that any disposition of the Collateral, by Borrower or any other Person,
shall be deemed to violate the rights of Bank under the Code.

       

      5           REPRESENTATIONS AND
WARRANTIES

       

      Borrower
represents and warrants as follows:

       

      5.1           Due
Organization and Authorization.  Borrower and each of its
Subsidiaries are duly existing and in good standing as Registered Organizations
in their respective jurisdictions of formation and are qualified and licensed to
do business and are in good standing in any jurisdiction in which the conduct of
their respective business or ownership of property requires that they be
qualified except where the failure to do so could not reasonably be expected to
have a material adverse effect on Borrower’s business.  In connection
with this Agreement, Borrower and Guarantor have each delivered to Bank a
completed certificate signed by Borrower and/or Guarantor (the “Perfection
Certificate”).  Borrower represents and warrants to Bank that: (a)
Borrower’s exact legal name is that indicated on the Perfection Certificate and
on the signature page hereof; (b) Borrower is an organization of the type
and is organized in the jurisdiction set forth in the Perfection Certificate;
(c) the Perfection Certificate accurately sets forth Borrower’s organizational
identification number or accurately states that Borrower has none; (d) the
Perfection Certificate accurately sets forth Borrower’s place of business, or,
if more than one, its chief executive office as well as Borrower’s mailing
address (if different than its chief executive office); (e) except as set
forth on the Perfection Certificate, Borrower (and each of its predecessors) has
not, in the past five (5) years, changed its jurisdiction of formation,
organizational structure or type, or any organizational number assigned by its
jurisdiction (except that Bode has changed its jurisdiction of organization from
the State of Virginia to the State of Delaware within the past five (5) years);
and (f) all other information set forth on the Perfection Certificate pertaining
to Borrower and each of its Subsidiaries is accurate and complete (it being
understood and agreed that Borrower may from time to time update certain
information in the Perfection Certificate after the Closing Date to the extent
permitted by one or more specific provisions in this Agreement).  If
Borrower is not now a Registered Organization but later becomes one, Borrower
shall promptly notify Bank of such occurrence and provide Bank with Borrower’s
organizational identification number.

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      The
execution, delivery and performance by Borrower of the Loan Documents to which
it is a party have been duly authorized, and do not (i) conflict with any of
Borrower’s organizational documents, (ii) contravene, conflict with,
constitute a default under or violate any material Requirement of Law,
(iii) contravene, conflict or violate any applicable order, writ, judgment,
injunction, decree, determination or award of any Governmental Authority by
which Borrower or any its Subsidiaries or any of their property or assets may be
bound or affected, (iv) require any action by, filing, registration, or
qualification with, or approval from any Governmental Authority (except such
approvals which have already been obtained and are in full force and effect), or
(v) constitute an event of default under any material agreement by which
Borrower is bound.  Borrower is not in default under any agreement to
which it is a party or by which it is bound in which the default could have a
material adverse effect on Borrower’s business.

       

      5.2           Collateral.  Borrower
has good title, has rights in, and the power to transfer each item of the
Collateral upon which it purports to grant a Lien hereunder, free and clear of
any and all Liens except Permitted Liens.   Borrower has no
deposit accounts other than the deposit accounts with Bank, the deposit
accounts, if any, described in the Perfection Certificate delivered to Bank in
connection herewith, or of which Borrower has given Bank notice and taken such
actions as are necessary to give Bank a perfected security interest
therein.  The Accounts are bona fide, existing obligations of the
Account Debtors.

       

      The
Collateral is not in the possession of any third party bailee (such as a
warehouse) except as otherwise provided in the Perfection Certificate. None of
the components of the Collateral shall be maintained at locations other than as
provided in the Perfection Certificate or as Borrower has given Bank notice
pursuant to Section 7.2.  In the event that Borrower, after the date
hereof, intends to store or otherwise deliver any portion of the Collateral to a
bailee, then Borrower will first receive the written consent of Bank and such
bailee must execute and deliver a bailee agreement in form and substance
satisfactory to Bank in its sole discretion.

       

      All
Inventory is in all material respects of good and marketable quality, free from
material defects.

       

      Borrower
is the sole owner of its intellectual property, except for non-exclusive
licenses granted to its customers in the ordinary course of business. Each
patent is valid and enforceable, and no part of the intellectual property has
been judged invalid or unenforceable, in whole or in part, and to the best of
Borrower’s knowledge, no claim has been made that any part of the intellectual
property violates the rights of any third party except to the extent such claim
could not reasonably be expected to have a material adverse effect on Borrower’s
business.  Except as noted on the Perfection Certificate, Borrower is
not a party to, nor is bound by, any license or other agreement with respect to
which Borrower is licensee that prohibits or otherwise restricts Borrower from
granting a security interest in Borrower’s interest in such license or agreement
or any other property.  Borrower shall provide written notice to Bank
within ten (10) days of entering or becoming bound by any such license or
agreement which is reasonably likely to have a material impact on Borrower’s
business or financial condition (other than over-the-counter software that is
commercially available to the public).  Borrower shall take such steps
as Bank requests to obtain the consent of, or waiver by, any person whose
consent or waiver is necessary for all such licenses or contract rights to be
deemed “Collateral” and for Bank to have a  security interest in it
that might otherwise be restricted or prohibited by law or by the terms of any
such license or agreement (such consent or authorization may include a
licensor’s agreement to a contingent assignment of the license to Bank if Bank
determines that is necessary in its good faith judgment), whether now existing
or entered into in the future.

       

      Without
prior consent from Bank, Borrower shall not enter into, or become bound by, any
such license or agreement which is reasonably likely to have a material impact
on Borrower’s business or financial condition.  Borrower shall take
such steps as Bank requests to obtain the consent of, or waiver by, any person
whose consent or waiver is necessary for all such licenses or contract rights to
be deemed “Collateral” and for Bank to have a security interest in it that might
otherwise be restricted or prohibited by law or by the terms of any such license
or agreement, whether now existing or entered into in the future.

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      5.3           Financed
Receivables.  Borrower represents and warrants for each
Financed Receivable:

       

      (a)           Each
Financed Receivable is an Eligible Account;

       

      (b)           Borrower
is the owner with legal right to sell, transfer, assign and encumber such
Financed Receivable;

       

      (c)           The
correct amount is on the Invoice Transmittal and is not disputed;

       

      (d)           Payment
is not contingent on any obligation or contract and Borrower has fulfilled all
its obligations as of the Invoice Transmittal date;

       

      (e)           Each
Financed Receivable is based on an actual sale and delivery of goods and/or
services rendered, is due to Borrower, is not past due or in default, has not
been previously sold, assigned, transferred, or pledged and is free of any
liens, security interests and encumbrances other than Permitted
Liens;

       

      (f)           There
are no defenses, offsets, counterclaims or agreements for which the Account
Debtor may claim any deduction or discount;

       

      (g)           Borrower
reasonably believes no Account Debtor is insolvent or subject to any Insolvency
Proceedings;

       

      (h)           Borrower
has not filed or had filed against it Insolvency Proceedings and does not
anticipate any filing;

       

      (i)           Bank
has the right to endorse and/ or require Borrower to endorse all payments
received on Financed Receivables and all proceeds of Collateral;
and

       

      (j)           No
representation, warranty or other statement of Borrower in any certificate or
written statement given to Bank contains any untrue statement of a material fact
or omits to state a material fact necessary to make the statement contained in
the certificates or statement not misleading.

       

      5.4           Litigation.  There
are no actions or proceedings pending or, to the knowledge of Borrower’s
Responsible Officers or legal counsel, threatened by or against Borrower or any
Subsidiary in which an adverse decision could reasonably be expected to cause a
Material Adverse Change, other than what has been disclosed in the Perfection
Certificate.

       

      5.5           No
Material Deterioration in Financial Statements.  All
consolidated financial statements for Borrower and any Subsidiary delivered to
Bank fairly present in all material respects Borrower’s consolidated financial
condition and Borrower’s consolidated results of operations.  There
has not been any material deterioration in Borrower’s consolidated financial
condition since the date of the most recent financial statements submitted to
Bank.

       

      5.6           Solvency.  The
fair salable value of Borrower’s assets (including goodwill minus disposition
costs) exceeds the fair value of its liabilities; Borrower is not left with
unreasonably small capital after the transactions in this Agreement; and
Borrower is able to pay its debts (including trade debts) as they
mature.

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      5.7           Regulatory
Compliance.  Borrower is not an “investment company” or a
company “controlled” by an “investment company” under the Investment Company
Act.  Borrower is not engaged as one of its important activities in
extending credit for margin stock (under Regulations X, T and U of the Federal
Reserve Board of Governors).  Borrower has complied in all material
respects with the Federal Fair Labor Standards Act.  Borrower has not
violated any laws, ordinances or rules, the violation of which could reasonably
be expected to cause a Material Adverse Change.  None of Borrower’s or
any Subsidiary’s properties or assets has been used by Borrower or any
Subsidiary or, to the best of Borrower’s knowledge, by previous Persons, in
disposing, producing, storing, treating, or transporting any hazardous substance
other than legally.  Borrower and each Subsidiary have timely filed
all required tax returns and paid, or made adequate provision to pay, all
material taxes, except those being contested in good faith with adequate
reserves under GAAP.  Borrower and each Subsidiary have obtained all
consents, approvals and authorizations of, made all declarations or filings
with, and given all notices to, all government authorities that are necessary to
continue its business as currently conducted except where the failure to obtain
or make such consents, declarations, notices or filings would not reasonably be
expected to cause a Material Adverse Change.  Borrower and each of its
Subsidiaries have obtained all consents, approvals and authorizations of, made
all declarations or filings with, and given all notices to, all Government
Authorities that are necessary to continue their respective businesses as
currently conducted.

       

      No
certificate, authorization, permit, consent, approval, order, license, exemption
from, or filing or registration or qualification with, any Governmental
Authority or any Requirement of Law is or will be required to authorize, or is
otherwise required in connection with Borrower’s performance of its obligations
under the Loan Documents and the creation of the Liens described in and granted
by Borrower pursuant to the Loan Documents.

       

      5.8           Subsidiaries.  Borrower
does not own any stock, partnership interest or other equity securities except
for Permitted Investments.

       

      5.9           Full
Disclosure.  No written representation, warranty or other
statement of Borrower in any certificate or written statement given to Bank, as
of the date such representations, warranties, or other statements were made,
taken together with all such written certificates and written statements given
to Bank, contains any untrue statement of a material fact or omits to state a
material fact necessary to make the statements contained in the certificates or
statements not misleading (it being recognized by Bank that projections and
forecasts provided by Borrower in good faith and based upon reasonable
assumptions are not viewed as facts and that actual results during the period or
periods covered by such projections and forecasts may differ from the projected
or forecasted results).

       

      6           AFFIRMATIVE
COVENANTS

       

      Borrower
shall do all of the following:

       

      6.1           Government
Compliance.  Maintain its and all its Subsidiaries’ legal
existence and good standing in their respective jurisdictions of formation and
maintain qualification in each jurisdiction in which the failure to so qualify
would reasonably be expected to have a material adverse effect on Borrower’s
business or operations.  Borrower shall comply, and have each
Subsidiary comply, with all laws, ordinances and regulations to which it is
subject, noncompliance with which could have a material adverse effect on
Borrower’s business or operations or would reasonably be expected to cause a
Material Adverse Change.

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      6.2           Financial
Statements, Reports, Certificates.

       

      (a)           Deliver
to Bank:  (i) as soon as available, but no later than thirty (30) days
after the last day of each month (or, if no Advances are outstanding as of the
last day of such month through and including the date that is thirty (30) days
after the last day of such month, within forty-five (45) days after the last day
of such month), a company prepared consolidated balance sheet and income
statement covering Borrower and each of its Subsidiary’s operations during the
period certified by a Responsible Officer and in a form acceptable to Bank,
provided, however, that if no Advances are outstanding at the end of the subject
month through and including the date which is thirty (30) days following such
month, Borrower may deliver such financial statements for such month no later
than forty-five (45) days after the last day of such month; (ii) as soon as
available, but no later than one hundred twenty (120) days after the last day of
Borrower’s fiscal year, audited consolidated financial statements prepared under
GAAP, consistently applied, together with an unqualified opinion on the
financial statements from an independent certified public accounting firm
reasonably acceptable to Bank; (iii) within five (5) days of filing, copies of
all statements, reports and notices made available to Borrower’s security
holders or to any holders of Subordinated Debt and all reports on Form 10-K,
10-Q and 8-K filed with the Securities and Exchange Commission; (iv) a prompt
report of any legal actions pending or threatened against Borrower or any
Subsidiary that could result in damages or costs to Borrower or any Subsidiary
of One Hundred Thousand Dollars ($100,000.00) or more; (v) prompt notice of any
material change in the composition of the Intellectual Property Collateral, or
the registration of any copyright, including any subsequent ownership right of
Borrower in or to any copyright, patent or trademark not shown in the IP
Agreement or knowledge of an event that materially adversely affects the value
of the Intellectual Property Collateral; (vi) annually and as updated,
board-approved projections no later than thirty (30) days prior to Borrower’s
fiscal year end; and (vii) budgets, sales projections, operating plans or other financial
information reasonably requested by Bank.

       

      (b)           Within
thirty (30) days after the last day of each month, deliver to Bank with the
monthly financial statements a Compliance Certificate signed by a Responsible
Officer in the form of Exhibit
B, provided, however, that if no Advances are outstanding at the end of
the subject month through and including the date which is thirty (30) days
following such month, Borrower may deliver such Compliance Certificate for such
month no later than forty-five (45) days after the last day of such
month.

       

      (c)           Allow
Bank to audit Borrower’s Collateral, including, but not limited to, Borrower’s
Accounts at Borrower’s expense, upon reasonable notice to Borrower; provided,
however, prior to the occurrence of an Event of Default, Borrower shall be
obligated to pay for not more than one (1) audit per year.  After the
occurrence of an Event of Default, Bank may audit Borrower’s Collateral,
including, but not limited to, Borrower’s Accounts and accounts receivable at
Borrower’s expense and at Bank’s sole and exclusive discretion and without
notification and authorization from Borrower.

       

      (d)           Upon
Bank’s request, provide a written report respecting any Financed Receivable, if
payment of any Financed Receivable does not occur by its due date and include
the reasons for the delay.

       

      (e)           Provide
Bank with, as soon as available, but no later than twenty (20) days following
each Reconciliation Period, an aged listing of accounts receivable and accounts
payable by invoice date, in form acceptable to Bank, provided, however, that if
no Advances are outstanding at the end of the subject month through and
including the date which is twenty (20) days following such month, Borrower may
deliver such aged listing of accounts receivable and accounts payable by invoice
date for such month no later than forty-five (45) days after the last day of
such month.

       

      (f)           Provide
Bank with, as soon as available, but no later than twenty (20) days following
each Reconciliation Period, a Deferred Revenue report, in form acceptable to
Bank, provided, however, that if no Advances are outstanding at the end of the
subject month through and including the date which is twenty (20) days following
such month, Borrower may deliver such Deferred Revenue report for such month no
later than forty-five (45) days after the last day of such month.

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      6.3           Inventory;
Returns.  Keep all Inventory in good and marketable condition,
free from material defects.  Returns and allowances between Borrower
and its Account Debtors shall follow Borrower’s customary practices as they
exist at the Closing Date.  Borrower must promptly notify Bank of all
returns, recoveries, disputes and claims that involve more than One Hundred
Thousand Dollars ($100,000.00).

       

      6.4           Taxes.  Borrower
shall make, and cause each Subsidiary to make, timely payment of all material
federal, state, and local taxes or assessments (other than taxes and assessments
which Borrower is contesting in good faith, with adequate reserves maintained in
accordance with GAAP) and will deliver to Bank, on demand, appropriate
certificates attesting to such payments.

       

      6.5           Insurance.  Keep
its business and the Collateral insured for risks and in amounts standard for
companies in Borrower’s industry and location, and as Bank may reasonably
request.  Insurance policies shall be in a form, with companies, and
in amounts that are satisfactory to Bank.  All property policies shall
have a lender’s loss payable endorsement showing Bank as the sole lender loss
payee and waive subrogation against Bank, and all liability policies shall show,
or have endorsements showing, Bank as an additional insured.  All
policies (or the loss payable and additional insured endorsements) shall provide
that the insurer must give Bank at least twenty (20) days notice before
canceling, amending, or declining to renew its policy.  At Bank’s
request, Borrower shall deliver certified copies of policies and evidence of all
premium payments. Proceeds payable under any policy shall, at Bank’s option, be
payable to Bank on account of the Obligations.  Notwithstanding the
foregoing, (a) so long as no Event of Default has occurred and is continuing,
Borrower shall have the option of applying the proceeds of any casualty policy
up to Fifty Thousand Dollars ($50,000.00), in the aggregate, toward the
replacement or repair of destroyed or damaged property; provided that any such
replaced or repaired property (i) shall be of equal or like value as the
replaced or repaired Collateral and (ii) shall be deemed Collateral in which
Bank has been granted a first priority security interest and (b) after the
occurrence and during the continuance of an Event of Default, all proceeds
payable under such casualty policy shall, at the option of Bank, be payable to
Bank on account of the Obligations.  If Borrower fails to obtain
insurance as required under this Section 6.5 or to pay any amount or furnish any
required proof of payment to third persons and Bank, Bank may make all or part
of such payment or obtain such insurance policies required in this Section 6.5,
and take any action under the policies Bank deems prudent.

       

      6.6           Accounts.

       

      (a)           To
permit Bank to monitor Borrower’s financial performance and condition, Borrower,
and all Borrower’s Subsidiaries, shall maintain Borrower’s and such
Subsidiaries’, depository and operating accounts and securities accounts with
Bank and Bank’s affiliates, provided that Borrower may maintain petty cash
accounts with at other financial institutions, which accounts contain an
aggregate amount of not greater than One Hundred Thousand Dollars ($100,000.00)
at all times.  Any
Guarantor shall maintain all depository,
operating and securities accounts with Bank, or SVB Securities.

       

      (b)           Borrower
shall obtain Bank’s prior written consent to open any deposit or securities
account opened by Borrower with any institution other than Bank.  In
addition, for each such account that Borrower or Guarantor at any time opens or
maintains, Borrower shall, at Bank’s request and option, pursuant to a control
agreement in form and substance acceptable to Bank, cause the depository bank or
securities intermediary to agree that such account is the collateral of Bank
pursuant to the terms hereunder, which control agreement may not be terminated
without the prior written consent of the Bank.  The provisions of this
Section 6.6(b) shall not apply to deposit accounts exclusively used for payroll,
payroll taxes and other employee wage and benefit payments to or for the benefit
of Borrower’s employees.

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      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.

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      6.8           Protection
and Registration of Intellectual Property Rights.  Borrower
shall:  (a) protect, defend and maintain the validity and
enforceability of its intellectual property; (b) promptly advise Bank in writing
of material infringements of its intellectual property; and (c) not allow any
intellectual property material to Borrower’s business to be abandoned, forfeited
or dedicated to the public without Bank’s written consent.  If
Borrower decides to register any copyrights or mask works in the United States
Copyright Office, Borrower shall: (x) provide Bank with at least fifteen (15)
days prior written notice of its intent to register such copyrights or mask
works together with a copy of the application it intends to file with the United
States Copyright Office (excluding exhibits thereto); (y) execute an
intellectual property security agreement or such other documents as Bank may
reasonably request to maintain the perfection and priority of Bank’s security
interest in the copyrights or mask works intended to be registered with the
United States Copyright Office; and (z) record such intellectual property
security agreement with the United States Copyright Office contemporaneously
with filing the copyright or mask work application(s) with the United States
Copyright Office.  Borrower shall promptly provide to Bank a copy of
the application(s) filed with the United States Copyright Office together with
evidence of the recording of the intellectual property security agreement
necessary for Bank to maintain the perfection and priority of its security
interest in such copyrights or mask works.  Borrower shall provide
written notice to Bank of any application filed by Borrower in the United States
Patent and Trademark Office for a patent or to register a trademark or service
mark within thirty (30) days after any such filing.

       

      6.9           Subordination
Agreements.  Deliver to Bank, within thirty (30) calendar days
of the Closing Date, the following documents:

       

      (a)           SPZ Oakland
Corporation.  A fully-executed subordination agreement from SPZ
Oakland Corporation, in form and substance acceptable to Bank in its sole and
absolute discretion; and

       

      (b)           Secure Source,
Inc.  A fully-executed subordination agreement from Secure
Source, Inc., in form and substance acceptable to Bank in its sole and absolute
discretion.

       

      6.10           Further
Assurances.  Borrower shall execute any further instruments and
take further action as Bank reasonably requests to perfect or continue Bank’s
security interest in the Collateral or to effect the purposes of this
Agreement.

       

      7           NEGATIVE
COVENANTS

       

      Borrower
shall not do any of the following without Bank’s prior written
consent.

       

      7.1           Dispositions.  Convey,
sell, lease, transfer, assign or otherwise dispose of (collectively a
“Transfer”), or permit any of its Subsidiaries to Transfer, all or any part of
its business or property, except for Transfers (a) of Inventory in the ordinary
course of business; (b) of worn-out or obsolete Equipment; and (c) in connection
with Permitted Liens and Permitted Investments.

       

      7.2           Changes
in Business, Ownership, Management or Business
Locations.  Engage in or permit any of its Subsidiaries to
engage in any business other than the businesses currently engaged in by
Borrower or reasonably related thereto, or have a material change in its
ownership (other than by the sale of Borrower’s equity securities in a public
offering or to venture capital investors so long as Borrower identifies to Bank
the venture capital investors prior to the closing of the investment), or
management.  Borrower shall not, without at least thirty (30) days
prior written notice to Bank: (a) relocate its chief executive office, or add
any new offices or business locations, including warehouses  (unless
such new offices or business locations contain less than Five Thousand Dollars
($5,000.00) in Borrower’s assets or property), or (b) change its jurisdiction of
organization, or (c) change its organizational structure or type, or (d) change
its legal name, or (e) change any organizational number (if any) assigned by its
jurisdiction of organization.

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      7.3           Mergers
or Acquisitions.  Merge or consolidate, or permit any of its
Subsidiaries to merge or consolidate, with any other Person, or acquire, or
permit any of its Subsidiaries to acquire, all or substantially all of the
capital stock or property of another Person, except Permitted
Acquisitions.  A Subsidiary may merge or consolidate into another
Subsidiary or into Borrower.

       

      7.4           Indebtedness.  Create,
incur, assume, or be liable for any Indebtedness, or permit any Subsidiary to do
so, other than Permitted Indebtedness.

       

      7.5           Encumbrance.  Create,
incur, or allow any Lien on any of its property, or assign or convey any right
to receive income, including the sale of any Accounts, or permit any of its
Subsidiaries to do so, except for Permitted Liens, or permit any Collateral not
to be subject to the first priority security interest granted herein, or enter
into any agreement, document, instrument or other arrangement (except with or in
favor of Bank) with any Person which directly or indirectly prohibits or has the
effect of prohibiting Borrower or any Subsidiary from assigning, mortgaging,
pledging, granting a security interest in or upon, or encumbering any of
Borrower’s or any Subsidiary’s intellectual property, except as is otherwise
permitted in Section 7.1 hereof and the definition of “Permitted Liens”
herein.  The Collateral may also be subject to Permitted
Liens.

       

      7.6           Distributions;
Investments.  (a) Directly or indirectly acquire or own any
Person, or make any Investment in any Person, other than Permitted Investments,
or permit any of its Subsidiaries to do so; or (b) pay any dividends or make any
distribution or payment or redeem, retire or purchase any capital
stock.

       

      7.7           Transactions
with Affiliates.  Directly or indirectly enter into or permit
to exist any material transaction with any Affiliate of Borrower, except for
transactions that are in the ordinary course of Borrower’s business, upon fair
and reasonable terms that are no less favorable to Borrower than would be
obtained in an arm’s length transaction with a non-affiliated
Person.

       

      7.8           Subordinated
Debt.  (a) Make or permit any payment on any Subordinated Debt,
except under the terms of the subordination, intercreditor, or other similar
agreement to which such Subordinated Debt is subject, or (b) amend any provision
in any document relating to the Subordinated Debt which would increase the
amount thereof or adversely affect the subordination thereof to Obligations owed
to Bank.

       

      7.9           Compliance.  Become
an “investment company” or a company controlled by an “investment company”,
under the Investment Company Act of 1940, as amended, or undertake as one of its
important activities extending credit to purchase or carry margin stock (as
defined in Regulation U of the Board of Governors of the Federal Reserve
System), or use the proceeds of any Advance for that purpose; fail to meet the
minimum funding requirements of ERISA or permit a Reportable Event or Prohibited
Transaction, each as defined in ERISA, to occur; fail to comply with the Federal
Fair Labor Standards Act or violate any other law or regulation, if the
violation could reasonably be expected to have a material adverse effect on
Borrower’s business, or permit any of its Subsidiaries to do so; withdraw or
permit any Subsidiary to withdraw from participation in, permit partial or
complete termination of, or permit the occurrence of any other event with
respect to, any present pension, profit sharing and deferred compensation plan
which could reasonably be expected to result in any liability of Borrower,
including any liability to the Pension Benefit Guaranty Corporation or its
successors or any other governmental agency.

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      8           EVENTS OF
DEFAULT

       

      Any one
of the following shall constitute an event of default (an “Event of Default”)
under this Agreement:

       

      8.1           Payment
Default.  Borrower fails to pay any of the Obligations when
due;

       

      8.2           Covenant
Default.  Borrower fails or neglects to perform any obligation
in Section 6 or violates any covenant in Section 7 or fails or neglects to
perform, keep, or observe any other material term, provision, condition,
covenant or agreement contained in this Agreement, any Loan Documents and as to
any default under such other term, provision, condition, covenant or agreement
that can be cured, has failed to cure the default within ten (10) days after the
occurrence thereof; provided, however, grace and cure periods provided under
this section shall not apply to financial covenants or any other covenants that
are required to be satisfied, completed or tested by a date
certain;

       

      8.3           Material
Adverse Change.  A Material Adverse Change occurs;

       

      8.4           Attachment.  (i)
Any portion of Borrower’s assets is attached, seized, levied on, or comes into
possession of a trustee or receiver and the attachment, seizure or levy is not
removed in ten (10) days; (ii) the service of process upon Bank or Borrower
seeking to attach, by trustee or similar process, any funds of Borrower on
deposit with Bank, or any entity under the control of Bank (including a
subsidiary); (iii) Borrower is enjoined, restrained, or prevented by court order
from conducting any part of its business; (iv) a judgment or other claim becomes
a Lien on a portion of Borrower’s assets; or (v) a notice of lien, levy, or
assessment is filed against any of Borrower’s assets by any government agency
and not paid within ten (10) days after Borrower receives notice;

       

      8.5           Insolvency.  (a)
Borrower is unable to pay its debts (including trade debts) as they become due
or otherwise becomes insolvent; (b) Borrower begins an Insolvency Proceeding; or
(c) an Insolvency Proceeding is begun against Borrower and not dismissed or
stayed within thirty (30) days (but no Advances shall be made while of any of
the conditions described in clause (a) exist and/or until any Insolvency
Proceeding is dismissed);

       

      8.6           Other
Agreements.  If there is a default in any agreement to which
Borrower is a party with a third party or parties resulting in a right by such
third party or parties, whether or not exercised, to accelerate the maturity of
any Indebtedness in an amount in excess of Fifty Thousand Dollars ($50,000.00)
or that could result in a Material Adverse Change;

       

      8.7           Judgments.  A
judgment or judgments for the payment of money in an amount, individually or in
the aggregate, of at least Fifty Thousand Dollars ($50,000.00) (not covered by
independent third-party insurance as to which liability has been accepted by the
insurance carrier) shall be rendered against Borrower and shall remain
unsatisfied and unstayed for a period of ten (10) days (provided that no
Advances will be made prior to the satisfaction or stay of such
judgment);

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      8.8           Misrepresentations.  Borrower
or any Person acting for Borrower makes any  representation, warranty,
or other statement now or later  in this Agreement, any Loan Document
or in writing delivered to Bank or to induce Bank to enter this Agreement or any
Loan Document, and such representation, warranty, or other statement is
incorrect in any material respect when made;

       

      8.9           Subordinated
Debt.  A default or breach occurs under any agreement between
Borrower and any creditor of Borrower that signed a subordination agreement,
intercreditor, or other similar agreement with Bank, or any creditor that has
signed subordination agreement with Bank breaches any terms of the subordination
agreement; or

       

      8.10           Guaranty.
 (a) Any guaranty
of any Obligations terminates or ceases for any reason to be in full force and
effect; or (b) any Guarantor does not perform any obligation or covenant under
any guaranty of the Obligations; or (c) any material misrepresentation or
material misstatement exists now or later in any warranty or representation in
any guaranty of the Obligations or in any certificate delivered to Bank in
connection with the guaranty; or (d) any circumstance described in Section 7, or
Sections 8.3, 8.4, 8.5 or 8.7 occurs with respect to any Guarantor or in the
value of such collateral, or (e) the death, liquidation, winding up, termination
of existence, or insolvency of any Guarantor.

       

      9           BANK’S RIGHTS AND
REMEDIES

       

      9.1           Rights
and Remedies.  When an Event of Default occurs and continues
Bank may, without notice or demand, do any or all of the following:

       

      (a)           declare
all Obligations immediately due and payable (but if an Event of Default
described in Section 8.5 occurs all Obligations are immediately due and payable
without any action by Bank);

       

      (b)           stop
advancing money or extending credit for Borrower’s benefit under this Agreement
or under any other agreement between Borrower and Bank;

       

      (c)           demand
that Borrower (i) deposit cash with Bank in an amount equal to the aggregate
amount of any letters of credit that are outstanding but undrawn, as collateral
security for the repayment of any future drawings under such letters of credit,
and Borrower shall forthwith deposit and pay such amounts, and (ii) pay in
advance all letter of credit fees scheduled to be paid or payable over the
remaining term of any letters of credit;

       

      (d)           settle
or adjust disputes and claims directly with Account Debtors for amounts, on
terms and in any order that Bank considers advisable and notify any Person owing
Borrower money of Bank’s security interest in such funds and verify the amount
of such account.  Borrower shall collect all payments in trust for
Bank and, if requested by Bank, immediately deliver the payments to Bank in the
form received from the Account Debtor, with proper endorsements for
deposit;

       

      (e)           make
any payments and do any acts it considers necessary or reasonable to protect its
security interest in the Collateral.  Borrower shall assemble the
Collateral if Bank requests and make it available as Bank
designates.  Bank may enter premises where the Collateral is located,
take and maintain possession of any part of the Collateral, and pay, purchase,
contest, or compromise any Lien which appears to be prior or superior to its
security interest and pay all expenses incurred.  Borrower grants Bank
a license to enter and occupy any of its premises, without charge, to exercise
any of Bank’s rights or remedies;

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      (f)           apply
to the Obligations any (i) balances and deposits of Borrower it holds, or (ii)
any amount held by Bank owing to or for the credit or the account of
Borrower;

       

      (g)           ship,
reclaim, recover, store, finish, maintain, repair, prepare for sale, advertise
for sale, and sell the Collateral.  Bank is hereby granted a
non-exclusive, royalty-free license or other right to use, without charge,
Borrower’s labels, patents, copyrights, mask works, rights of use of any name,
trade secrets, trade names, trademarks, service marks, and advertising matter,
or any similar property as it pertains to the Collateral, in completing
production of, advertising for sale, and selling any Collateral and, in
connection with Bank’s exercise of its rights under this Section, Borrower’s
rights under all licenses and all franchise agreements inure to Bank’s
benefit;

       

      (h)           place
a “hold” on any account maintained with Bank and/or deliver a notice of
exclusive control, any entitlement order, or other directions or instructions
pursuant to any control agreement or similar agreements providing control of any
Collateral;

       

      (i)           exercise
all rights and remedies and dispose of the Collateral according to the Code;
and

       

      (j)           demand
and receive possession of Borrower’s Books.

       

      9.2           Bank
Expenses; Unpaid Fees.  If Borrower fails to obtain insurance
called for by Section 6.5 or fails to pay any premium thereon or fails to pay
any other amount which Borrower is obligated to pay under this Agreement or by
any other Loan Document, Bank may obtain such insurance or make such payment,
and all amounts so paid by Bank are Bank Expenses and immediately due and
payable, bearing interest at the then highest applicable rate, and secured by
the Collateral.  Bank will make reasonable effort to provide Borrower
with notice of Bank obtaining such insurance at the time it is obtained or
within a reasonable time thereafter. No payments by Bank are deemed an agreement
to make similar payments in the future or Bank’s waiver of any Event of
Default.

       

      9.3           Bank’s
Liability for Collateral.  So long as Bank complies with
reasonable banking practices regarding the safekeeping of Collateral in
possession or under the control of Bank, Bank shall not be liable or responsible
for: (a) the safekeeping of the Collateral; (b) any loss or damage to the
Collateral; (c) any diminution in the value of the Collateral; or (d) any act or
default of any carrier, warehouseman, bailee, or other
Person.  Borrower bears all risk of loss, damage or destruction of the
Collateral.

       

      9.4           Remedies
Cumulative.  Bank’s rights and remedies under this Agreement,
the Loan Documents, and all other agreements are cumulative.  Bank has
all rights and remedies provided under the Code, by law, or in equity. Bank’s
exercise of one right or remedy is not an election, and Bank’s waiver of any
Event of Default is not a continuing waiver. Bank’s delay is not a waiver,
election, or acquiescence. No waiver hereunder shall be effective unless signed
by Bank and then is only effective for the specific instance and purpose for
which it was given.

       

      9.5           Demand
Waiver.  Borrower waives demand, notice of default or dishonor,
notice of payment and nonpayment, notice of any default, nonpayment at maturity,
release, compromise, settlement, extension, or renewal of accounts, documents,
instruments, chattel paper, and guarantees held by Bank on which Borrower is
liable.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      10           NOTICES.

       

      Notices
or demands by either party about this Agreement must be in writing and
personally delivered or sent by an overnight delivery service, by certified mail
postage prepaid return receipt requested, or by fax to the addresses listed at
the beginning of this Agreement.  A party may change notice address by
written notice to the other party.

       

      11           CHOICE OF LAW, VENUE AND
JURY TRIAL WAIVER

       

      Massachusetts
law governs the Loan Documents without regard to principles of conflicts of
law.  Borrower and Bank each submit to the exclusive jurisdiction of
the State and Federal courts in Massachusetts; provided, however, that if for
any reason Bank cannot avail itself of such courts in the Commonwealth of
Massachusetts, Borrower accepts jurisdiction of the courts and venue in Santa
Clara County, California.  NOTWITHSTANDING THE FOREGOING, BANK SHALL
HAVE THE RIGHT TO BRING ANY ACTION OR PROCEEDING AGAINST BORROWER OR ITS
PROPERTY IN THE COURTS OF ANY OTHER JURISDICTION WHICH BANK DEEMS NECESSARY OR
APPROPRIATE IN ORDER TO REALIZE ON THE COLLATERAL OR TO OTHERWISE ENFORCE BANK’S
RIGHTS AGAINST BORROWER OR ITS PROPERTY.  Borrower expressly submits
and consents in advance to such jurisdiction in any action or suit commenced in
any such court, and Borrower hereby waives any objection that it may have based
upon lack of personal jurisdiction, improper venue, or forum non conveniens and
hereby consents to the granting of such legal or equitable relief as is deemed
appropriate by such court.  Borrower hereby waives personal service of
the summons, complaints, and other process issued in such action or suit and
agrees that service of such summons, complaints, and other process may be made
by registered or certified mail addressed to Borrower at the address set forth
in Section 10 of this Agreement and that service so made shall be deemed
completed upon the earlier to occur of Borrower’s actual receipt thereof or
three (3) days after deposit in the U.S. mails, proper postage
prepaid.

       

      BORROWER AND BANK EACH WAIVE THEIR
RIGHT TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION ARISING OUT OF OR BASED
UPON THIS AGREEMENT, THE LOAN DOCUMENTS OR ANY CONTEMPLATED TRANSACTION,
INCLUDING CONTRACT, TORT, BREACH OF DUTY AND ALL OTHER CLAIMS. THIS WAIVER IS A
MATERIAL INDUCEMENT FOR BOTH PARTIES TO ENTER INTO THIS
AGREEMENT.  EACH PARTY HAS REVIEWED THIS WAIVER WITH ITS
COUNSEL.

       

      12           GENERAL
PROVISIONS

       

      12.1           Successors
and Assigns.  This Agreement binds and is for the benefit of
the successors and permitted assigns of each party.  Borrower may not
assign this Agreement or any rights or Obligations under it without Bank’s prior
written consent which may be granted or withheld in Bank’s
discretion.  Bank has the right, without the consent of or notice to
Borrower, to sell, transfer, negotiate, or grant participation in all or any
part of, or any interest in, Bank’s obligations, rights and benefits under this
Agreement, the Loan Documents or any related agreement.

       

      12.2           Indemnification.  Borrower
agrees to  indemnify, defend, and hold Bank and its officers,
directors, employees, agents, attorneys or any other Person affiliated with or
representing Bank harmless against:  (a) all obligations, demands,
claims, and liabilities (collectively, “Claims”) asserted by any other party in
connection with the transactions contemplated by the Loan Documents; and (b) all
losses or Bank Expenses incurred, or paid by Bank from, following, or arising
from transactions between Bank and Borrower (including reasonable attorneys’
fees and expenses), except for Claims and/or losses directly caused by Bank’s
gross negligence or willful misconduct.

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      12.3           Right of
Set-Off.   Borrower hereby grants to Bank, a lien,
security interest and right of set-off as security for all Obligations to Bank,
whether now existing or hereafter arising upon and against all deposits,
credits, collateral and property, now or hereafter in the possession, custody,
safekeeping or control of Bank or any entity under the control of Bank
(including a Bank subsidiary) or in transit to any of them.  At any
time after the occurrence and during the continuance of an Event of Default,
without demand or notice, Bank may set off the same or any part thereof and
apply the same to any liability or obligation of Borrower even though unmatured
and regardless of the adequacy of any other collateral securing the
Obligations.  ANY AND ALL RIGHTS TO REQUIRE BANK TO EXERCISE ITS
RIGHTS OR REMEDIES WITH RESPECT TO ANY OTHER COLLATERAL WHICH SECURES THE
OBLIGATIONS, PRIOR TO EXERCISING ITS RIGHT OF SETOFF WITH RESPECT TO SUCH
DEPOSITS, CREDITS OR OTHER PROPERTY OF BORROWER, ARE HEREBY KNOWINGLY,
VOLUNTARILY AND IRREVOCABLY WAIVED.

       

      12.4           Time of
Essence.  Time is of the essence for the performance of all
Obligations in this Agreement.

       

      12.5           Severability
of Provision.  Each provision of this Agreement is severable
from every other provision in determining the enforceability of any
provision.

       

      12.6           Amendments
in Writing; Integration.  All amendments to this Agreement must
be in writing signed by both Bank and Borrower.  This Agreement and
the Loan Documents represent the entire agreement about this subject matter, and
supersede prior negotiations or agreements.  All prior agreements,
understandings, representations, warranties, and negotiations between the
parties about the subject matter of this Agreement and the Loan Documents merge
into this Agreement and the Loan Documents.

       

      12.7           Counterparts.  This
Agreement may be executed in any number of counterparts and by different parties
on separate counterparts, each of which, when executed and delivered, are an
original, and all taken together, constitute one Agreement.

       

      12.8           Borrower
Liability.  Either Borrower may, acting singly, request
Advances hereunder.  Each Borrower hereby appoints the other as agent
for the other for all purposes hereunder, including with respect to requesting
Advances hereunder. Each Borrower hereunder shall be obligated to repay all
Advances made hereunder, regardless of which Borrower actually receives said
Advance, as if each Borrower hereunder directly received all
Advances.  Each Borrower waives any right to require Bank to: (i)
proceed against any Borrower or any other person; (ii) proceed against or
exhaust any security; or (iii) pursue any other remedy.  Bank may
exercise or not exercise any right or remedy it has against any Borrower or any
security it holds (including the right to foreclose by judicial or non-judicial
sale) without affecting any Borrower’s liability.  Notwithstanding any
other provision of this Agreement or other related document, each Borrower
irrevocably waives all rights that it may have at law or in equity (including,
without limitation, any law subrogating Borrower to the rights of Bank under
this Agreement) to seek contribution, indemnification or any other form of
reimbursement from any other Borrower, or any other Person now or hereafter
primarily or secondarily liable for any of the Obligations, for any payment made
by Borrower with respect to the Obligations in connection with this Agreement or
otherwise and all rights that it might have to benefit from, or to participate
in, any security for the Obligations as a result of any payment made
by  Borrower with respect to the Obligations in connection with this
Agreement or otherwise.  Any agreement providing for indemnification,
reimbursement or any other arrangement prohibited under this Section shall be
null and void.  If any payment is made to a Borrower in contravention
of this Section, such Borrower shall hold such payment in trust for Bank and
such payment shall be promptly delivered to Bank for application to the
Obligations, whether matured or unmatured.

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      12.9           Survival.  All
covenants, representations and warranties made in this Agreement continue in
full force until this Agreement has terminated pursuant to its terms and all
Obligations (other than inchoate indemnity obligations and any other obligations
which, by their terms, are to survive the termination of this Agreement) have
been satisfied.  The obligation of Borrower in Section 12.2 to
indemnify Bank shall survive until the statute of limitations with respect to
such claim or cause of action shall have run.

       

      12.10           Confidentiality.  In
handling any confidential information, Bank shall exercise the same degree of
care that it exercises for its own proprietary information, but disclosure of
information may be made: (a) to Bank’s Subsidiaries or Affiliates; (b) to
prospective transferees or purchasers of any interest in the Advances (provided,
however, Bank shall use commercially reasonable efforts to obtain such
prospective transferee’s or purchaser’s agreement to the terms of this
provision); (c) as required by law, regulation, subpoena, or other order, (d) to
Bank’s regulators or as otherwise in connection with Bank’s examination or
audit; and (e) as Bank considers appropriate in exercising remedies under this
Agreement.  Confidential information does not include information that
either: (i) is in the public domain or in Bank’s possession when disclosed
to Bank, or becomes part of the public domain after disclosure to Bank; or (ii)
is disclosed to Bank by a third party, if Bank does not know that the third
party is prohibited from disclosing the information.

       

      12.11           Waiver.  Bank
hereby waives Borrower’s existing defaults under the Prior Agreement by virtue
of Borrower’s failure to comply with the financial covenant set forth in Section
6.8(b) of that the Prior Agreement as of the months ended December 31, 2007,
January 31, 2008 and February 29, 2008.  Bank’s waiver of Borrower’s
compliance of said affirmative covenant shall have no impact on this
Agreement.

       

      13           DEFINITIONS

       

      13.1           Definitions.  In
this Agreement:

       

      “Account” is any “account” as
defined in the Code with such additions to such term as may hereafter be made,
and includes, without limitation, all accounts receivable and other sums owing
to Borrower.

       

      “Account Debtor” is as defined
in the Code and shall include, without limitation, any person liable on any
Financed Receivable, such as, a guarantor of the Financed Receivable and any
issuer of a letter of credit or banker’s acceptance.

       

      “Adjustments” are all
discounts, allowances, returns, disputes, counterclaims, offsets, defenses,
rights of recoupment, rights of return, warranty claims, or short payments,
asserted by or on behalf of any Account Debtor for any Financed
Receivable.

       

      “Advance” is defined in Section
2.1.1.

       

      “Advance Rate” is eighty
percent (80.0%), net of any offsets related to each specific Account Debtor
including, without limitation, Deferred Revenue, or such other percentage as
Bank establishes under Section 2.1.1.

       

      “Affiliate” is a Person that
owns or controls directly or indirectly the Person, any Person that controls or
is controlled by or is under common control with the Person, and each of that
Person’s senior executive officers, directors, partners and, for any Person that
is a limited liability company, that Person’s managers and members.

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      “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%).

       

      “Availability” is eighty
percent (80.0%) of the Facility Amount.

       

      “Bank Expenses” are all audit
fees and expenses and reasonable costs or expenses (including reasonable
attorneys’ fees and expenses) for preparing, negotiating, administering,
defending and enforcing the Loan Documents (including appeals or Insolvency
Proceedings).

       

      “Borrower’s Books” are all
Borrower’s books and records including ledgers, records regarding Borrower’s
assets or liabilities, the Collateral, business operations or financial
condition and all computer programs or discs or any equipment containing the
information.

       

      “Business Day” is any day that
is not a Saturday, Sunday or a day on which Bank is closed.

       

      “Closing Date” is the date of
this Agreement.

       

      “Code” is the Uniform
Commercial Code as adopted in Massachusetts, as amended and as may be amended
and in effect from time to time.

       

      “Collateral” is any and all
properties, rights and assets of Borrower granted by Borrower to Bank or arising
under the Code, now, or in the future, in which Borrower obtains an interest, or
the power to transfer rights, as described on Exhibit
A.

       

      “Collateral Handling Fee” is
defined in Section 2.2.4.

       

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

       

      “Compliance Certificate” is
attached as Exhibit
B.

       

      “Contingent Obligation” is, for
any Person, any direct or indirect liability, contingent or not, of that Person
for (i) any indebtedness, lease, dividend, letter of credit or other obligation
of another such as an obligation directly or indirectly guaranteed, endorsed,
co-made, discounted or sold with recourse by that Person, or for which that
Person is directly or indirectly liable; (ii) any obligations for undrawn
letters of credit for the account of that Person; and (iii) all obligations from
any interest rate, currency or commodity swap agreement, interest rate cap or
collar agreement, or other agreement or arrangement designated to protect a
Person against fluctuation in interest rates, currency exchange rates or
commodity prices;  but “Contingent Obligation” does not include
endorsements in the ordinary course of business.  The amount of a
Contingent Obligation is the stated or determined amount of the primary
obligation for which the Contingent Obligation is made or, if not determinable,
the maximum reasonably anticipated liability for it determined by the Person in
good faith; but the amount may not exceed the maximum of the obligations under
the guarantee or other support arrangement.

       

      “Current Liabilities” are all
obligations and liabilities of Borrower to Bank, plus, without duplication, the
aggregate amount of Borrower’s Total Liabilities which mature within one (1)
year.

       

      “Deferred Revenue” is all
amounts received or invoiced, as appropriate, in advance of performance under
contracts and not yet recognized as revenue.

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      “Early Termination Fee” is
defined in Section 2.1.1.

       

      “EBDA” means (a) Net Income,
plus (b) to the extent deducted in the calculation of Net Income, depreciation
expense, amortization expense, non-cash impairment and stock compensation
charges.

       

      “EBDA Event” occurs when
Borrower provides evidence to Bank, satisfactory to Bank in its sole and
absolute discretion, that it has achieved EBDA of greater than Five Hundred
Thousand Dollars ($500,000.00) in each of two (2) consecutive three (3) month
periods (during which periods no month shall overlap).

       

      “Eligible Accounts” are billed
Accounts in the ordinary course of Borrower’s business that meet all Borrower’s
representations and warranties in Section 5.3, have been, at the option of Bank,
confirmed in accordance with Section 2.1.1 (d), and are due and owing from
Account Debtors deemed creditworthy by Bank in its sole
discretion.  Without limiting the fact that the determination of which
Accounts are eligible hereunder is a matter of Bank discretion in each instance,
Eligible Accounts shall not include the following Accounts (which listing may be
amended or changed in Bank’s discretion with notice to Borrower):

       

      (a)           Accounts
that the Account Debtor has not paid within ninety (90) days of invoice date
(which period shall be one hundred twenty (120) days of invoice date if the
Account Debtor is the State of Louisiana or other Accounts agreed to in writing
by Bank in Bank’s sole and absolute discretion);

       

      (b)           Accounts
for which the Account Debtor does not have its principal place of business in
the United States, unless agreed to by Bank in writing, in its sole discretion,
on a case-by-case basis;

       

      (c)           Accounts
for which the Account Debtor is a federal, state or local government entity or
any department, agency, or instrumentality thereof except for Accounts of the
United States if the payee has assigned its payment rights to Bank and the
assignment has been acknowledged under the Assignment of Claims Act of 1940 (31
U.S.C. 3727);

       

      (d)           Accounts
for which Borrower owes the Account Debtor, but only up to the amount owed
(sometimes called “contra” accounts, accounts payable, customer deposits or
credit accounts);

       

      (e)           Accounts
in respect of unfulfilled contractual billings of Borrower (including, without
limitation, pre-bill accounts and milestone accounts);

       

      (f)           Accounts
for demonstration or promotional equipment, or in which goods are consigned,
sales guaranteed, sale or return, sale on approval, bill and hold, or other
terms if the Account Debtor’s payment may be conditional;

       

      (g)           Accounts
for which the Account Debtor is Borrower’s Affiliate, officer, employee, or
agent;

       

      (h)           Accounts
owing from an Account Debtor with respect to which Borrower has received
deferred revenue (but only to the extent of such deferred revenue);

       

      (i)           Accounts
in which the Account Debtor disputes liability or makes any claim and Bank
believes there may be a basis for dispute (but only up to the disputed or
claimed amount), or if the Account Debtor is subject to an Insolvency
Proceeding, or becomes insolvent, or goes out of business;

       

      (j)           Accounts
for which the Account Debtor has not been directed in writing by Borrower to
make payments into the Lockbox or another account maintained by Borrower with
Bank; or

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

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

       

       

      “ERISA” is the Employee
Retirement Income Security Act of 1974, and its regulations.

       

      “Events of Default” are set
forth in Article 8.

       

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

       

      “Facility Fee” is defined in
Section 2.2.2.

       

      “Finance Charges” is defined
in Section 2.2.3.

       

      “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.

       

      “Financed Receivable Balance”
is the total outstanding gross face amount, at any time, of any Financed
Receivable.

       

      “First Acquisition” is an
acquisition by Guarantor of the assets of  a subsidiary of a public
company for a purchase price not to exceed Two Million Dollars ($2,000,000.00)
(inclusive of any contingent obligations but excluding any earn-out payments),
which acquisition shall occur on or prior to May 9, 2009.

       

      “GAAP” is generally accepted
accounting principles.

       

      “Governmental Authority” is any
nation or government, any state or other political subdivision thereof, any
agency, authority, instrumentality, regulatory body, court, central bank or
other entity exercising executive, legislative, judicial, taxing, regulatory or
administrative functions of or pertaining to government, any securities exchange
and any self-regulatory organization.

       

      “Guarantor” is any present or
future guarantor of the Obligations including, without limitation, GlobalOptions
Group, Inc.

       

      “Indebtedness” is (a)
indebtedness for borrowed money or the deferred price of property or services,
such as reimbursement and other obligations for surety bonds and letters of
credit, (b) obligations evidenced by notes, bonds, debentures or similar
instruments, (c) capital lease obligations and (d) Contingent
Obligations.

       

      “Insolvency Proceeding” is any
proceeding by or against any Person under the United States Bankruptcy Code, or
any other bankruptcy or insolvency law, including assignments for the benefit of
creditors, compositions, extensions generally with its creditors, or proceedings
seeking reorganization, arrangement, or other relief.

       

      “Intellectual Property
Collateral” is defined in the IP Agreement.

       

      “Inventory” is all “inventory”
as defined in the Code in effect on the date hereof with such additions to such
term as may hereafter be made, and includes without limitation all merchandise,
raw materials, parts, supplies, packing and shipping materials, work in process
and finished products, including without limitation such inventory as is
temporarily out of Borrower’s custody or possession or in transit and including
any returned goods and any documents of title representing any of the
above.

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      “Investment” is any beneficial
ownership of (including stock, partnership interest or other securities) any
Person, or any loan, advance or capital contribution to any Person.

       

      “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.

       

      “IP Agreement” is,
collectively, (a) that certain Intellectual Property Security Agreement executed
and delivered by Global to Bank, and (b) that certain Intellectual Property
Security Agreement executed and delivered by Bode to Bank.

       

      “Lien” is a mortgage, lien,
deed of trust, charge, pledge, security interest or other
encumbrance.

       

      “Liquidity” is (a) Borrower’s
unrestricted cash at Bank, plus (b) Borrower’s accounts receivable which are not
outstanding more than ninety (90) days from the invoice date (which period shall
be one hundred twenty (120) days of the invoice date if the Account Debtor is
the State of Louisiana), minus (c) all Obligations.

       

      “Liquidity Ratio” is a ratio of
(a) Borrower’s unrestricted cash at Bank plus Borrower’s accounts receivable
which are not outstanding more than ninety (90) days from the invoice date
(which period shall be one hundred twenty (120) days of the invoice date if the
Account Debtor is the State of Louisiana), to (b) all Obligations

       

      “Loan Documents” are,
collectively, this Agreement, any note, or notes or guaranties executed by
Borrower or any Guarantor, and any other present or future agreement between
Borrower and/or for the benefit of Bank in connection with this Agreement, all
as amended, extended or restated.

       

      “Lockbox” is defined in Section
2.2.7.

       

      “Material Adverse Change” is: (i) A material
impairment in the perfection or priority of Bank’s security interest in the
Collateral or in the value of such Collateral; (ii) a material adverse change in
the business, operations, or condition (financial or otherwise) of Borrower;
(iii) a material
impairment of the prospect of repayment of any portion of the Obligations; or
(iv) Bank determines, based upon information available to it and in its
reasonable judgment, that there is a reasonable likelihood that Borrower shall
fail to comply with one or more of the financial covenants in Section 6 during
the next succeeding financial reporting period.

       

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

       

      “Net Cash Balance” is the
aggregate average daily cash balance of Borrower and any Guarantor at Bank minus
all Obligations.

       

      “Net Income” means, for any
period as at any date of determination, the net profit (or loss), after
provision for taxes, of Borrower for such period taken as a single accounting
period, according to GAAP.

       

      “Obligations” are all advances,
liabilities, obligations, covenants and duties owing, arising, due or payable by
Borrower to Bank now or later under this Agreement or any other document,
instrument or agreement, account (including those acquired by assignment)
primary or secondary, such as all Advances, Finance Charges, Facility Fee, Early
Termination Fee, Collateral Handling Fee, Unused Line Facility Fee, interest,
fees, expenses, professional fees and attorneys’ fees, or other amounts now or
hereafter owing by Borrower to Bank.

       

      “Perfection Certificate” is defined in Section
5.1.

       

      “Permitted Acquisitions”
include (i) acquisitions by Borrower of substantially all the stock or property
of any person or (ii) acquisitions by Guarantor which result in substantially
all of the stock or property of a Person being owned by Borrower following the
closing of such transaction, in each case where:

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      (a)           Borrower
has provided Bank with no less than thirty (30) days notice prior to the closing
of such transaction, including without limitation, the name of the Person that
Borrower or any Guarantor, as the case may be, is acquiring, the total
consideration for the transaction (broken out into line items for cash and other
property), the form of the transaction (asset purchase, stock purchase or
otherwise) and any other information reasonably requested by Bank;

       

      (b)           Borrower
has provided Bank with lien and judgment searches conducted by Borrower on the
Person being acquired prior to the closing of the transaction (which shall
include, without limitation, lien searches on any other names (prior names,
d/b/a’s or otherwise) of such Person used within the past five (5)
years;

       

      (c)           Except
with respect to the First  Acquisition only, the Net Cash Balance is
greater than Five Million Dollars ($5,000,000.00) prior to and immediately
following such transaction;

       

      (d)           The
cash portion of the purchase price in such transaction is not more than Five
Million Dollars ($5,000,000.00) in the aggregate, including any contingent
obligations but excluding any earn-out payments;

       

      (e)           The
aggregate cash portion of the purchase price paid in all such transactions since
the Closing Date, including, without limitation, contingent obligations, is not
more than Fifteen Million Dollars ($15,000,000.00) in the aggregate (other than
earn out payments);

       

      (f)           An
Event of Default has not occurred and is not continuing or could not reasonably
be expected to result from such transaction;

       

      (g)           The
assets of the target company in such acquisition are free and clear of all Liens
that would not otherwise constitute Permitted Liens hereunder at the time of the
closing of such transaction; and

       

      (h)           if
requested by Bank, Borrower delivers to Bank, within thirty (30) days of the
closing of any such transaction, any documents required by Bank in order for
Bank to obtain a first priority security interest in the assets acquired by
Borrower (including, without limitation, assets owned by a Subsidiary with
respect to which Borrower or Guarantor has acquired all or a portion of such
entity’s stock).

       

      “Permitted Indebtedness”
is:

       

      (a)           Borrower’s
indebtedness to Bank under this Agreement or the Loan Documents;

       

      (b)           Subordinated
Debt;

       

      (c)           Indebtedness
to trade creditors incurred in the ordinary course of business; and

       

      (d)           Indebtedness
secured by Permitted Liens.

       

      “Permitted Investments” are:
(i)  marketable direct obligations issued or unconditionally
guaranteed by the United States or its agency or any state maturing within 1
year from its acquisition, (ii) commercial paper maturing no more than 1 year
after its creation and having the highest rating from either Standard &
Poor’s Corporation or Moody’s Investors Service, Inc., (iii) Bank’s certificates
of deposit issued maturing no more than 1 year after issue, and (iv) any other
investments administered through Bank.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      “Permitted Liens”
are:

       

      (a)           Liens
arising under this Agreement or other Loan Documents;

       

      (b)           Liens
for taxes, fees, assessments or other government charges or levies, either not
delinquent or being contested in good faith and for which Borrower maintains
adequate reserves on its Books, if they have no priority over any of Bank’s
security interests;

       

      (c)           Purchase
money Liens securing no more than One Hundred Thousand Dollars ($100,000.00) in
the aggregate amount outstanding  (i) on equipment acquired or held by
Borrower incurred for financing the acquisition of the equipment, or
(ii) existing on equipment when acquired, if the Lien is
confined to the property and improvements and the proceeds of the
equipment;

       

      (d)           Leases
or subleases and non-exclusive licenses or sublicenses granted in the ordinary
course of Borrower’s business, if the leases,
subleases, licenses and sublicenses permit granting Bank a security interest;
and

       

      (e)           Liens
incurred in the extension, renewal or refinancing of the indebtedness secured by
Liens described in (a) through (d), but any extension,
renewal or replacement Lien must be limited to the property encumbered by the
existing Lien and the principal amount of the indebtedness may not
increase.

       

      “Person” is any individual,
sole proprietorship, partnership, limited liability company, joint venture,
company, trust, unincorporated organization, association, corporation,
institution, public benefit corporation, firm, joint stock company, estate,
entity or government agency.

       

      “Prime Rate” is the greater of
(i) six and one quarter of one percent (6.25%) or (ii) Bank’s most recently
announced “prime rate,” even if it is not Bank’s lowest rate.

       

      “Prior Agreement” is defined in
the preamble hereof.

       

      “Reconciliation Period” is each
calendar month.

       

      “Registered Organization” is
any “registered organization” as defined in the Code with such additions to such
term as may hereafter be made.

       

      “Requirement of Law” is as to
any Person, the organizational or governing documents of such Person, and any
law (statutory or common), treaty, rule or regulation or determination of an
arbitrator or a court or other Governmental Authority, in each case applicable
to or binding upon such Person or any of its property or to which such Person or
any of its property is subject.

       

      “Responsible Officer” is each of the Chief
Executive Officer and Chief Financial Officer of Borrower.

       

      “Subject
Month” is the month which
is two (2) calendar months after any Testing Month.

       

      “Subordinated Debt” is debt
incurred by Borrower subordinated to Borrower’s debt to Bank (pursuant to a
subordination agreement entered into between Bank, Borrower and the subordinated
creditor), on terms acceptable to Bank.

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      “Subsidiary” is any Person,
corporation, partnership, limited liability company, joint venture, or any other
business entity of which more than 50% of the voting stock or other equity
interests is owned or controlled, directly or indirectly, by the Person or one
or more Affiliates of the Person.

       

      “Testing Month” is any month
with respect to which Bank has tested Borrower's Liquidity in order to determine
the Collateral Handling Fee in Section 2.2.4 or the Applicable
Rate.

       

      “Unused Line Facility Fee” is
defined in Section 2.2.8.

       

      [Signature
page follows.]

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as
a sealed instrument under the laws of the Commonwealth of Massachusetts as of
the date first above written.

       

      

      
        
          	
                  BORROWER:

                
	 
      
	
                  GLOBALOPTIONS,
      INC.

                
	 
      
	
                  By:

                	
                  
                    /s/
      Harvey W. Schiller

                  

                
	
                  Name:

                	
                  
                    Harvey
      W. Schiller

                  

                
	
                  Title:

                	
                  
                    Chairman
      and CEO   

                  

                
	 
      
	
                  THE
      BODE TECHNOLOGY GROUP, INC.

                
	 
      
	
                  By:

                	
                  
                    /s/
      Harvey W. Schiller

                  

                
	
                  Name:

                	
                  
                    Harvey
      W. Schiller

                  

                
	
                  Title:

                	
                  
                    Chairman

                  

                
	 
      
	 
      
	
                  BANK:

                
	 
      
	
                  SILICON
      VALLEY BANK

                
	 
      
	
                  By: 

                	
                  
                    /s/
      Megan Scheffel

                  

                
	
                  Name:

                	
                  
                    Megan
      Scheffel

                  

                
	
                  Title:

                	
                  
                    Vice-Presidentex102to8k06282_04072008.htm

    Exhibit
10.2

     

    UNCONDITIONAL
GUARANTY

     

     

    This continuing Unconditional Guaranty
(“Guaranty”) is entered into as of March 31, 2008, by GlobalOptions Group, Inc.
(“Guarantor”), in favor of Silicon Valley Bank (“Bank”).

     

    Recitals

     

    A.           Concurrently
herewith, Bank, GlobalOptions, Inc., a Delaware corporation (“Global”), and The
Bode Technology Group, Inc., a Delaware corporation (“Bode”) (Global and Bode
are jointly and severally, individually and collectively, referred to herein as
“Borrower”), are entering into that certain Loan and Security Agreement dated as
of even date herewith (as amended, restated, or otherwise modified from time to
time, the “Loan Agreement”) pursuant to which Bank has agreed to make certain
advances of money and to extend certain financial accommodations to Borrower
(collectively, the “Loans”), subject to the terms and conditions set forth
therein.  Capitalized terms used but not otherwise defined herein
shall have the meanings given them in the Loan Agreement.

     

    B.           In
consideration of the agreement of Bank to make the Loans to Borrower under the
Loan Agreement, Guarantor is willing to guaranty the full payment and
performance by Borrower of all of its obligations thereunder and under the other
Loan Documents, all as further set forth herein.

     

    C.           Guarantor
is the parent of Global, which is the parent of Bode, and Guarantor will obtain
substantial direct and indirect benefit from the Loans made by Bank to Borrower
under the Loan Agreement.

     

    Now,
Therefore, to induce Bank to enter into the Loan Agreement, and for other
good and valuable consideration, the receipt and adequacy of which are hereby
acknowledged, and intending to be legally bound, Guarantor hereby represents,
warrants, covenants and agrees as follows:

     

    Section
1.              
Guaranty.

     

    1.1           Unconditional
Guaranty of Payment.  In consideration of the foregoing, Guarantor
hereby irrevocably, absolutely and unconditionally guarantees to Bank the prompt
and complete payment and performance when due (whether at stated maturity, by
acceleration or otherwise) of all Obligations.  Guarantor agrees
that it shall execute such other documents or agreements and take such action as
Bank shall reasonably request to effect the purposes of this
Guaranty.

     

    1.2           Separate
Obligations.  These obligations are independent of Borrower’s
obligations and separate actions may be brought against Guarantor (whether
action is brought against Borrower or whether Borrower is joined in the
action).

     

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    Section
2.              
Representations and
Warranties.

     

    Guarantor hereby represents and
warrants that:

     

    (a)           Guarantor
(i) is a corporation duly organized, validly
existing and in good standing under the laws of the State of Delaware; (ii) is
duly qualified to do business and is in good standing in every jurisdiction
where the nature of its business requires it to be so qualified (except where
the failure to so qualify would not have a material adverse effect on
Guarantor’s condition, financial or otherwise, or on Guarantor’s ability to pay
or perform the obligations hereunder); and (iii) has all requisite power and
authority to execute and deliver this Guaranty and each Loan Document executed
and delivered by Guarantor pursuant to the Loan Agreement or this Guaranty and
to perform its obligations thereunder and hereunder.

     

    (b)           The
execution, delivery and performance by Guarantor of this Guaranty (i) are
within Guarantor’s powers and have been duly authorized by all necessary action;
(ii) do not contravene Guarantor’s charter documents or any law or any
contractual restriction binding on or affecting Guarantor or by which
Guarantor’s property may be affected; (iii) do not require any authorization or
approval or other action by, or any notice to or filing with, any governmental
authority or any other Person under any indenture, mortgage, deed of trust,
lease, agreement or other instrument to which Guarantor is a party or by which
Guarantor or any of its property is bound, except such as have been obtained or
made; and (iv) do not result in the imposition or creation of any Lien upon any
property of Guarantor.

     

    (c)           This
Guaranty is a valid and binding obligation of Guarantor, enforceable against
Guarantor in accordance with its terms, except as the enforceability thereof may
be subject to or limited by bankruptcy, insolvency, reorganization, arrangement,
moratorium or other similar laws relating to or affecting the rights of
creditors generally.

     

    (d)           There
is no action, suit or proceeding affecting Guarantor pending or threatened
before any court, arbitrator, or governmental authority, domestic or foreign,
which may have a material adverse effect on the ability of Guarantor to perform
its obligations under this Guaranty.

     

    (e)           Guarantor’s
obligations hereunder are not subject to any offset or defense against Bank or
Borrower of any kind.

     

    (f)           
The financial statements of Guarantor, dated as of December 31, 2008 (audited),
copies of which have been furnished to Bank, fairly present the financial
position and results of operations for Guarantor for the dates and periods
purported to be covered thereby, all in accordance with GAAP, and there has been
no material adverse change in the financial position or operations of Guarantor
since the date of such financial statements.

     

    (g)           To
ensure the legality, validity, enforceability or admissibility into evidence of
this Guaranty in each of the jurisdictions in which Guarantor is incorporated or
organized and any jurisdiction in which Guarantor conducts business, it is not
necessary that (i) this Guaranty be filed or recorded with any court or
other authority in such jurisdiction, (ii) any other filings, notices,
authorizations, approvals be obtained or other actions taken, or (iii) any
stamp or similar tax be paid on or with respect to this Guaranty, or, if any of
the foregoing actions are necessary, they have been duly taken.

     

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    (h)           Neither Guarantor nor
its property has any immunity from jurisdiction of any court or from any legal
process (whether through service or notice, attachment prior to judgment,
attachment in aid of execution, execution or otherwise) under applicable
law.

     

    (i)           
The incurrence of Guarantor’s obligations under this Guaranty will not cause
Guarantor to (i) become insolvent; (ii) be left with unreasonably small capital
for any business or transaction in which Guarantor is presently engaged or plans
to be engaged; or (iii) be unable to pay its debts as such debts
mature.

     

    (j)           
Guarantor covenants, warrants, and represents to Bank that all representations
and warranties contained in this Guaranty shall be true at the time of
Guarantor’s execution of this Guaranty, and shall continue to be true so long as
this Guaranty remains in effect.  Guarantor expressly agrees that any
misrepresentation or breach of any warranty whatsoever contained in this
Guaranty shall be deemed material.

     

    Section
3.               General
Waivers.  Guarantor waives:

     

    (a)           Any
right to require Bank to (i) proceed against Borrower or any other person;
(ii) proceed against or exhaust any security or (iii) pursue any other
remedy.  Bank may exercise or not exercise any right or remedy it has
against Borrower or any security it holds (including the right to foreclose by
judicial or nonjudicial sale) without affecting Guarantor’s liability
hereunder.

     

    (b)           Any
defenses from disability or other defense of Borrower or from the cessation of
Borrowers liabilities.

     

    (c)           Any
setoff, defense or counterclaim against Bank.

     

    (d)           Any
defense from the absence, impairment or loss of any right of reimbursement or
subrogation or any other rights against Borrower.  Until Borrower’s
obligations to Bank have been paid, Guarantor has no right of subrogation or
reimbursement or other rights against Borrower.

     

    (e)           Any
right to enforce any remedy that Bank has against Borrower.

     

    (f)           Any
rights to participate in any security held by Bank.

     

    (g)           Any
demands for performance, notices of nonperformance or of new or additional
indebtedness incurred by Borrower to Bank.  Guarantor is responsible
for being and keeping itself informed of Borrower’s financial
condition.

     

    (h)           The
benefit of any act or omission by Bank which directly or indirectly results in
or aids the discharge of Borrower from any of the Obligations by operation of
law or otherwise.

     

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    Section
4.               Real Property Security
Waiver.  Guarantor acknowledges that, to the extent Guarantor
has or may have rights of subrogation or reimbursement against Borrower for
claims arising out of this Guaranty, those rights may be impaired or destroyed
if Bank elects to proceed against any real property security of Borrower by
non-judicial foreclosure.  That impairment or destruction could, under
certain judicial cases and based on equitable principles of estoppel, give rise
to a defense by Guarantor against its obligations under this
Guaranty.  Guarantor waives that defense and any others arising from
Bank’s election to pursue non-judicial foreclosure.  Guarantor waives
the benefits, if any, of any statutory or common law rule that may permit a
subordinating creditor to assert any defenses of a surety or guarantor, or that
may give the subordinating creditor the right to require a senior creditor to
marshal assets, and Guarantor agrees that it shall not assert any such defenses
or rights.

     

    Section
5.               Reinstatement.  Notwithstanding
any provision of the Loan Agreement to the contrary, the liability of Guarantor
hereunder shall be reinstated and revived and the rights of Bank shall continue
if and to the extent that for any reason any payment by or on behalf of
Guarantor or Borrower is rescinded or must be otherwise restored by Bank,
whether as a result of any proceedings in bankruptcy or reorganization or
otherwise, all as though such amount had not been paid.  The
determination as to whether any such payment must be rescinded or restored shall
be made by Bank in its sole discretion; provided, however, that if
Bank chooses to contest any such matter at the request of Guarantor, Guarantor
agrees to indemnify and hold harmless Bank from all costs and expenses
(including, without limitation, reasonable attorneys’ fees) of such
litigation.  To the extent any payment is rescinded or restored,
Guarantor’s obligations hereunder shall be revived in full force and effect
without reduction or discharge for that payment.

     

    Section
6.               No Waiver;
Amendments.  No failure on the part of Bank to exercise, no
delay in exercising and no course of dealing with respect to, any right
hereunder shall operate as a waiver thereof; nor shall any single or partial
exercise of any right hereunder preclude any other or further exercise thereof
or the exercise of any other right.  The remedies herein provided are
cumulative and not exclusive of any remedies provided by law.  This
Guaranty may not be amended or modified except by written agreement between
Guarantor and Bank, and no consent or waiver hereunder shall be valid unless in
writing and signed by Bank.

     

    Section
7.               Compromise and
Settlement.  No compromise, settlement, release, renewal,
extension, indulgence, change in, waiver or modification of any of the
Obligations or the release or discharge of Borrower from the performance of any
of the Obligations shall release or discharge Guarantor from this Guaranty or
the performance of the obligations hereunder.

     

    Section
8.               Notice.  Any notice
or other communication herein required or permitted to be given shall be in
writing and may be delivered in person or sent by facsimile transmission,
overnight courier, or by United States mail, registered or certified, return
receipt requested, postage prepaid and addressed as follows:

     

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    If to
Guarantor:                                     GlobalOptions
Group, Inc.

    75 Rockefeller Plaza, 27th
Floor

    New York, New York 10019

    Attention: Jeff Nyweide,
CFO

    Telephone No.:
212-445-6261

    Facsimile
No.:                                                      

     

    If to
Bank:                                              Silicon
Valley Bank

    One Newton Executive Park, Suite
200

    2221 Washington Street

    Newton, Massachusetts
02462

    Attention: Ms. Laura
Scott

    Telephone No.: (617)
630-4173

    Facsimile No.: (617)
969-4395

     

    with copies
to:                                      Riemer
& Braunstein LLP

    Three Center Plaza

    Boston, Massachusetts
02108

    Attention: David A. Ephraim,
Esquire

    Telephone No.: (617)
523-9000

    Facsimile No.: (617)
880-3456

     

    or at
such other address as may be substituted by notice given as herein
provided.  Every notice, demand, request, consent, approval,
declaration or other communication hereunder shall be deemed to have been duly
given or served on the date on which personally delivered or sent by facsimile
transmission or three (3) Business Days after the same shall have been deposited
in the United States mail.  If sent by overnight courier service, the
date of delivery shall be deemed to be the next Business Day after deposited
with such service.

     

    Section
9.               Entire
Agreement.  This Guaranty constitutes and contains the entire
agreement of the parties and supersedes any and all prior and contemporaneous
agreements, negotiations, correspondence, understandings and communications
between Guarantor and Bank, whether written or oral, respecting the subject
matter hereof.

     

    Section
10.             Severability.  If
any provision of this Guaranty is held to be unenforceable under applicable law
for any reason, it shall be adjusted, if possible, rather than voided in order
to achieve the intent of Guarantor and Bank to the extent
possible.  In any event, all other provisions of this Guaranty shall
be deemed valid and enforceable to the full extent possible under applicable
law.

     

    Section
11.             Subordination of
Indebtedness.  Any indebtedness or other obligation of Borrower
now or hereafter held by or owing to Guarantor is hereby subordinated in time
and right of payment to all obligations of Borrower to Bank, except as such
indebtedness or other obligation is expressly permitted to be paid under the
Loan Agreement; and such indebtedness of Borrower to Guarantor is assigned to
Bank as security for this Guaranty, and if Bank so requests shall be collected,
enforced and received by Guarantor in trust for Bank and to be paid over to Bank
on account of the Obligations of Borrower to Bank, but without reducing or
affecting in any manner the liability of Guarantor under the other provisions of
this Guaranty.  Any notes now or hereafter evidencing such
indebtedness of Borrower to Guarantor shall be marked with a legend that the
same are subject to this Guaranty and shall be delivered to Bank.

     

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    Section
12.             Payment of
Expenses.  Guarantor shall pay, promptly on demand, all
Expenses incurred by Bank in defending and/or enforcing this
Guaranty.  For purposes hereof, “Expenses” shall mean costs and
expenses (including reasonable fees and disbursements of any law firm or other
external counsel and the allocated cost of internal legal services and all
disbursements of internal counsel) for defending and/or enforcing this Guaranty
(including those incurred in connection with appeals or proceedings by or
against any Guarantor under the United States Bankruptcy Code, or any other
bankruptcy or insolvency law, including assignments for the benefit of
creditors, compositions, extensions generally with its creditors, or proceedings
seeking reorganization, arrangement, or other relief).

     

    Section
13.             Assignment; Governing Law.  This
Guaranty shall be binding upon and inure to the benefit of Guarantor and Bank
and their respective successors and assigns, except that Guarantor shall not
have the right to assign its rights hereunder or any interest herein without the
prior written consent of Bank, which may be granted or withheld in Bank’s sole
discretion.  Any such purported assignment by Guarantor without Bank’s
written consent shall be void.  This Guaranty shall be governed by,
and construed in accordance with, the laws of the Commonwealth of Massachusetts
without regard to principles thereof regarding conflict of laws.

     

    Section
14.             JURISDICTION. Guarantor
hereby irrevocably agrees that any legal action or proceeding with respect to
this Guaranty or any of the agreements, documents or instruments delivered in
connection herewith may be brought in the STATE AND FEDERAL courts LOCATED IN
the Commonwealth of Massachusetts as BANK may elect (PROVIDED THAT GUARANTOR
ACKNOWLEDGES THAT ANY APPEALS FROM THOSE COURTS MAY HAVE TO BE HEARD BY A COURT
LOCATED OUTSIDE OF THE COMMONWEALTH OF MASSACHUSETTS, and, by execution and
delivery hereof, Guarantor accepts and consents to, generally and
unconditionally, the jurisdiction of the aforesaid courts and agrees that such
jurisdiction shall be exclusive, unless waived by BANK in writing, with respect
to any action or proceeding brought by Guarantor against
BANK.  Nothing herein shall limit the right of BANK to bring
proceedings against Guarantor in the courts of any other
jurisdiction.  Guarantor hereby waives, to the full extent permitted
by law, any right to stay or to dismiss any action or proceeding brought before
said courts on the basis of forum non conveniens.

     

    
      Section
15.             WAIVER OF JURY
TRIAL.  EACH OF BANK AND GUARANTOR HEREBY WAIVES, TO THE FULL
EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY
WITH RESPECT TO ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR
IN CONNECTION WITH THIS GUARANTY.  EACH PARTY HERETO (A) CERTIFIES
THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED,
EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF
LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER, AND (B) ACKNOWLEDGES THAT
IT AND THE OTHER PARTY HERETO HAVE BEEN INDUCED TO ENTER INTO THIS GUARANTY AND
ANY RELATED INSTRUMENTS, AS APPLICABLE, BY, AMONG OTHER THINGS, THE MUTUAL
WAIVERS AND CERTIFICATIONS IN THIS SECTION 15.

       

       

      
        Signature
on next page

      

    

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

     

    
      
        	
                GUARANTOR:

              	 
      
	 
      	 
      
	
                GLOBALOPTIONS
      GROUP, INC.

              	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	
                By:

              	 /s/
      Harvey W. Schiller	 
      	 
      
	
                Name:

              	 Harvey
      W. Schiller  	 
      	 
      
	
                Title:

              	 Chairman
      and CEO 	 
      	 
      

      

       

       

      
        
          
          

        

        
          7

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