Subscription Agreement for Private Placement of Units in GlobalOptions Group, Inc.

 EXHIBIT 10.8 NAME OF SUBSCRIBER:_____________________________ To: GlobalOptions Group, Inc. 75 Rockefeller Plaza 27th Floor New York, NY 10019 SUBSCRIPTION AGREEMENT This Subscription Agreement (this "Agreement") is being delivered to you in connection with your investment in a publicly-traded company, which will subsequently change its name to GlobalOptions Group, Inc. ("Pubco"), and the anticipated merger (the "Merger") of GO Acquisition Corp., a wholly-owned subsidiary of Pubco, with and into GlobalOptions, Inc., a Delaware corporation. Your obligation to invest in Pubco shall be subject to, among other things, (a) the notification to you of the identity of Pubco and (b) your receipt of draft copy of Pubco's Current Report on Form 8-K (the "Draft Form 8-K") in accordance with Section 2.1 below. Broadband Capital Management LLC (the "Placement Agent") shall serve as the placement agent of Pubco in conducting a private placement (the "Private Placement") of units ("Units"), each Unit consisting of (i) one share of Pubco's Series A Convertible Preferred Stock ("Preferred Stock") convertible to 500 shares of Pubco's common stock ("Common Stock") and (ii) a detachable, four-year warrant to purchase 125 shares of Common Stock ("Warrant"), at an exercise price of $2.50 per share. The purchase price per Unit is $1,000. All funds received in the Private Placement shall be held in escrow by Signature Bank (the "Escrow Agent") and, upon fulfillment of the other conditions precedent set forth herein, shall be released from escrow and delivered to Pubco at which time the securities subscribed for as further described below shall be delivered, subject to Section 8 hereof, to you. 1. SUBSCRIPTION AND PURCHASE PRICE 1.1 SUBSCRIPTION. Subject to the conditions set forth in Section 2 hereof, the undersigned hereby subscribes for and agrees to purchase the number of Units indicated on page C-10 hereof on the terms and conditions described herein. The minimum number of Units that may be purchased is twenty five (25). Subscriptions for lesser amounts may be accepted at the discretion of Pubco and the Placement Agent. 1.2 PURCHASE OF SECURITIES. The undersigned understands and acknowledges that the purchase price to be remitted to the Placement Agent in exchange for the Units shall be $1,000 per Unit, for an aggregate purchase price as set forth on page C-10 hereof (the "Aggregate Purchase Price"). Payment for the Units subscribed for hereunder shall be made by the undersigned, payable in United States dollars, by check or wire transfer, to "Signature Bank, as Escrow Agent for GlobalOptions Group, Inc.," with the undersigned's delivery of this Agreement to the Placement Agent. The undersigned understands and agrees that, subject to Sections 2.1(a) and applicable laws, by executing this Agreement, it is entering into a binding agreement. 2. ACCEPTANCE AND CLOSING PROCEDURES 2.1 ACCEPTANCE OR REJECTION. (a) The undersigned and the Placement Agent understand and agree that this subscription shall be revocable by the undersigned up until three (3) days after a Draft Form 8-K is prepared and sent to the undersigned (at the address set forth on the signature page of this Agreement) in accordance with the terms and conditions set forth in Section 5 hereof (the "Revocation Period"). Provided that the undersigned shall not have, within the Revocation C-1  Period, delivered a written notice via facsimile to Greenberg Traurig, LLP, counsel to Pubco (to the attention of Spencer G. Feldman) at ###-###-#### and to the Placement Agent (to the attention of Karl Brenza) at ###-###-####, electing to withdraw his subscription, the obligation of the undersigned to purchase the Units shall become irrevocable, and the undersigned shall be legally bound to purchase the Units subject to the terms set forth in this Agreement. (b) The undersigned understands and agrees that Pubco and the Placement Agent reserve the right to reject this subscription for the Units in whole or part in any order at any time prior to the closing (the "Closing") of the purchase and sale of the Units if, in their reasonable judgment, they deem such action to be in the best interest of Pubco, notwithstanding the undersigned's prior receipt of notice of acceptance of the undersigned's subscription. (c) In the event of the revocation of this subscription by the undersigned in accordance with Section 2.1(a), rejection by Pubco or the Placement Agent in accordance with Section 2.1(b), or the sale of the Units is not consummated by the Placement Agent for any reason, this Agreement and any other agreement entered into between the undersigned and the Placement Agent relating to this subscription shall thereafter have no force or effect, and the Placement Agent shall promptly return or cause to be returned to the undersigned the purchase price remitted to the Escrow Agent, without interest thereon or deduction therefrom. (d) Notwithstanding anything to the contrary contained in this Agreement, in the event that the Merger is not effective on or before the date that is twenty (20) days after the date of this Agreement, the Placement Agent shall promptly return or cause to be returned to the undersigned the purchase price remitted to the Escrow Agent, without interest thereon or deduction therefrom. 2.2 CLOSING. The Closing shall take place at the offices of Greenberg Traurig, LLP, counsel to Pubco, at 200 Park Avenue, 15th Floor, New York, New York 10166, or such other place as determined by the Placement Agent, on a Business Day promptly following the Revocation Period (the "Closing Date"), or such other date as is mutually agreed to by the parties and the undersigned. "Business Day" shall mean from the hours of 9:00 a.m. (E.S.T.) through 5:00 p.m. (E.S.T.) of a day other than a Saturday, Sunday or other day on which commercial banks in New York City are authorized or required to be closed. 3. INVESTOR'S REPRESENTATIONS AND WARRANTIES The undersigned hereby acknowledges, agrees with and represents and warrants to Pubco and the Placement Agent and its affiliates, as follows: (a) The undersigned has full power and authority to enter into this Agreement, the execution and delivery of which has been duly authorized, if applicable, and this Agreement constitutes a valid and legally binding obligation of the undersigned. (b) The undersigned acknowledges his understanding that the offering and sale of the Units is intended to be exempt from registration under the Securities Act of 1933, as amended (the "Securities Act"), by virtue of Section 4(2) of the Securities Act and the provisions of Regulation D promulgated thereunder ("Regulation D"). In furtherance thereof, the undersigned represents and warrants to Pubco and the Placement Agent and its affiliates as follows: (i) The undersigned realizes that the basis for the exemption from registration may not be available if, notwithstanding the undersigned's representations contained herein, the undersigned is merely acquiring the Units for a fixed or determinable period in the future, or for a market rise, or for sale if the market does not rise. The undersigned does not have any such intention. C-2  (ii) The undersigned is acquiring the Unit(s) solely for the undersigned's own beneficial account, for investment purposes, and not with view to, or resale in connection with, any distribution of the shares of Preferred Stock, or shares of Common Stock into which the Preferred Stock is converted and the Warrants are exercised. (iii) The undersigned has the financial ability to bear the economic risk of his investment, has adequate means for providing for his current needs and contingencies, and has no need for liquidity with respect to his investment in Pubco; (iv) The undersigned and the undersigned's attorney, accountant, purchaser representative and/or tax advisor, if any (collectively, "Advisors"), have received the Confidential Private Placement Memorandum, dated April 18, 2005, together with all annexes thereto (as such documents may be amended or supplemented, the "Memorandum"), relating to the private placement by Pubco of the Units, and all other documents requested by the undersigned or his Advisors, if any, have carefully reviewed them and understand the information contained therein, prior to the execution of this Agreement; and (v) The undersigned (together with his Advisors, if any) has such knowledge and experience in financial and business matters as to be capable of evaluating the merits and risks of the prospective investment in the Units. If other than an individual, the undersigned also represents it has not been organized for the purpose of acquiring the Units. (c) The information in the Investor Questionnaire completed and executed by the undersigned (the "Investor Questionnaire") is accurate and true in all respects, and the undersigned is an "accredited investor," as that term is defined in Rule 501(a) of Regulation D. (d) The undersigned (and his Advisors, if any) has been furnished with a copy of the Memorandum. (e) The undersigned is not relying on the Placement Agent or its affiliates with respect to economic considerations involved in this investment. The undersigned has relied on the advice of, or has consulted with, only his Advisors. Each Advisor, if any, is capable of evaluating the merits and risks of an investment in the Units as such are described in the Memorandum, and each Advisor, if any, has disclosed to the undersigned in writing (a copy of which is annexed to this Agreement) the specific details of any and all past, present or future relationships, actual or contemplated, between himself and the Placement Agent or any affiliate or subsidiary thereof. (f) The undersigned represents, warrants and agrees that he will not sell or otherwise transfer the shares of Preferred Stock and Warrants (including such shares of Common Stock into which the Preferred Stock and Warrants are convertible or exercisable, as appropriate, and collectively with the Preferred Stock and the Warrants, the "Securities") without registration under the Securities Act or an exemption therefrom, and fully understands and agrees that he must bear the economic risk of his purchase because, among other reasons, the Securities have not been registered under the Securities Act or under the securities laws of any state and, therefore, cannot be resold, pledged, assigned or otherwise disposed of unless they are subsequently registered under the Securities Act and under the applicable securities laws of such states, or an exemption from such registration is available. In particular, the undersigned is aware that the Securities are "restricted securities," as such term is defined in Rule 144 promulgated under the Securities Act ("Rule 144"), and they may not be sold pursuant to Rule 144 unless all of the conditions of Rule 144 are met. The undersigned also understands that, except as otherwise provided herein, Pubco is under no obligation to register the Securities on his behalf or to assist him in complying with any exemption from registration under the Securities Act or applicable state securities laws. The undersigned understands that any sales or transfers of the Securities are further restricted by state securities laws and the provisions of this Agreement. C-3  (g) No representations or warranties have been made to the undersigned by Pubco, GlobalOptions or the Placement Agent, or any of their respective officers, employees, agents, affiliates or subsidiaries, other than any representations of Pubco or the Placement Agent contained herein and in the Memorandum, and in subscribing for Units the undersigned is not relying upon any representations other than any contained herein or in the Memorandum. (h) The undersigned understands and acknowledges that his purchase of the Units is a speculative investment that involves a high degree of risk and the potential loss of his entire investment and has carefully read and considered the matters set forth in the Memorandum and in particular the matters under the caption "Risk Factors" therein, and, in particular, acknowledges that Pubco is engaged in a highly competitive business. (i) The undersigned's overall commitment to investments that are not readily marketable is not disproportionate to the undersigned's net worth, and an investment in the Units will not cause such overall commitment to become excessive. (j) The undersigned understands and agrees that the certificates for the Securities shall bear substantially the following legend until (i) such securities shall have been registered under the Securities Act and effectively disposed of in accordance with a registration statement that has been declared effective or (ii) in the opinion of counsel for Pubco such securities may be sold without registration under the Securities Act as well as any applicable "blue sky" or state securities laws: THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), OR ANY APPLICABLE STATE SECURITIES LAWS. SUCH SECURITIES HAVE BEEN ACQUIRED FOR INVESTMENT PURPOSES AND MAY NOT BE OFFERED FOR SALE, SOLD, DELIVERED AFTER SALE, TRANSFERRED, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FILED BY THE ISSUER WITH THE SECURITIES AND EXCHANGE COMMISSION COVERING SUCH SECURITIES UNDER THE SECURITIES ACT OR AN OPINION OF COUNSEL SATISFACTORY TO THE ISSUER THAT SUCH REGISTRATION IS NOT REQUIRED. (k) Neither the U.S. Securities and Exchange Commission (the "SEC") nor any state securities commission has approved the Units or the Securities, or passed upon or endorsed the merits of the Offering or confirmed the accuracy or determined the adequacy of the Memorandum. The Memorandum has not been reviewed by any Federal, state or other regulatory authority. (l) The undersigned and his Advisors, if any, have had a reasonable opportunity to ask questions of and receive answers from a person or persons acting on behalf of Pubco concerning the offering of the Units and the business, financial condition, results of operations and prospects of Pubco, and all such questions have been answered to the full satisfaction of the undersigned and his Advisors, if any. (m) The undersigned is unaware of, is in no way relying on, and did not become aware of the offering of the Units through or as a result of, any form of general solicitation or general advertising including, without limitation, any article, notice, advertisement or other communication published in any newspaper, magazine or similar media or broadcast over television, radio or over the Internet, in connection with the offering and sale of the Units and is not subscribing for Units and did not become aware of the offering of the Units through or as a result of any seminar or meeting to which the undersigned was invited by, or any solicitation of a subscription by, a person not previously known to the undersigned in connection with investments in securities generally. (n) The undersigned has taken no action which would give rise to any claim by any person for brokerage commissions, finders' fees or the like relating to this Agreement or the transactions contemplated hereby (other than C-4  commissions to be paid by Pubco to the Placement Agent or as otherwise described in the Memorandum) and, in turn, to be paid to other selected dealers. (o) The undersigned is not relying on Pubco, the Placement Agent or any of their respective employees or agents with respect to the legal, tax, economic and related considerations of an investment in the Units, and the undersigned has relied on the advice of, or has consulted with, only his own Advisors. (p) The undersigned acknowledges that any estimates or forward-looking statements or projections included in the Memorandum were prepared by the future management of Pubco in good faith, but that the attainment of any such projections, estimates or forward-looking statements cannot be guaranteed by Pubco or its management and should not be relied upon. (q) No oral or written representations have been made, or oral or written information furnished, to the undersigned or his Advisors, if any, in connection with the offering of the Units which are in any way inconsistent with the information contained in the Memorandum. (r) The undersigned's substantive relationship with the Placement Agent or subagent through which the undersigned is subscribing for Units predates the Placement Agent's or such subagent's contact with the undersigned regarding an investment in the Units. (s) The foregoing representations, warranties, and agreements shall survive the Closing. 4. PUBCO'S REPRESENTATIONS AND WARRANTIES Pubco hereby acknowledges, agrees with and represents and warrants to each of the undersigned, as follows: (a) Pubco has the corporate power and authority to execute and deliver this Agreement and to perform its obligations hereunder. This Agreement has been duly authorized, executed and delivered by Pubco and is valid, binding and enforceable against Pubco in accordance with its terms. (b) The Preferred Stock and Warrants to be issued to the undersigned pursuant to this Agreement, when issued and delivered in accordance with the terms of this Agreement, will be duly and validly issued and will be fully paid and nonassessable. (c) Neither the execution and delivery nor the performance of this Agreement by Pubco will conflict with Pubco's Articles of Incorporation, as amended, or By-laws, or result in a breach of any terms or provisions of, or constitute a default under, any material contract, agreement or instrument to which Pubco is a party or by which Pubco is bound. (d) After giving effect to the transactions contemplated by this Agreement and immediately after the Closing, Pubco will have the outstanding capital stock as described in the Memorandum. (e) The information contained in the Memorandum is true and correct in all material respects as of its date. 5. COVENANTS 5.1 PREPARATION AND DELIVERY OF THE DRAFT FORM 8-K; WITHDRAWAL OF SUBSCRIPTION. At least three (3) days prior to the date of closing of the Merger, Pubco shall prepare and deliver to the undersigned via overnight courier or facsimile, the Draft Form 8-K proposed to be filed by Pubco, which shall describe the terms and conditions of the Merger, in accordance with the requirements of the Securities Exchange Act of 1934 and the Accounting and Financial Reporting Interpretations and Guidance issued by the accounting staff C-5  members of the Division of Corporate Finance of the Securities and Exchange Commission on March 31, 2001, as the same relates to "Reverse Acquisitions-Reporting Issues." 5.2 REGISTRATION RIGHTS; LOCK-UP. (a) Pubco shall file a registration statement (the "Registration Statement") with the SEC covering the resale of the shares of Common Stock into which the Preferred Stock and Warrants are convertible or exercisable, as appropriate, on or around, but no later than, one hundred and twenty (120) days after the Closing Date. Pubco shall use its best efforts to have the Registration Statement declared effective by the SEC as soon as possible after the initial filing, and agrees to respond to the SEC, within thirty (30) days of receipt, to all questions and comments from the SEC regarding the Registration Statement. Pubco will maintain the effectiveness of the Registration Statement from the date of the effectiveness of the Registration Statement until one (1) year after that date; PROVIDED that, if at any time or from time to time after the date of effectiveness of the Registration Statement, Pubco notifies the undersigned in writing of the existence of a Potential Material Event (as defined below), the undersigned shall not offer or sell any of the Securities, or engage in any other transaction involving or relating to the Securities, from the time of the giving of notice with respect to a Potential Material Event until Pubco notifies the undersigned that such Potential Material Event either has been disclosed to the public or no longer constitutes a Potential Material Event; PROVIDED, FURTHER that, Pubco may not suspend the right of the undersigned pursuant to this Section 5.2(a) for more than sixty (60) days in the aggregate. "Potential Material Event" means the possession by Pubco of material information regarding a potential transaction not ripe for disclosure in a registration statement, which shall be evidenced by determinations in good faith by the Board of Directors of Pubco that disclosure of such information in the registration statement would be detrimental to the business and affairs of Pubco. (b) If Pubco fails to (i) file the Registration Statement with the SEC on or prior to one hundred and eighty (180) days after the Closing Date, or (ii) subject to Section 5.2(a), maintain the effectiveness of the Registration Statement from date of the effectiveness of the Registration Statement until one (1) year after that date, Pubco shall be obligated to issue to the undersigned additional shares of Preferred Stock computed as follows: on the first day that Pubco has failed to file, or to maintain the effectiveness of, the Registration Statement, as the case may be (the "First Determination Date"), Pubco shall determine the number of shares of Preferred Stock entitled (by virtue of the underlying shares of Common Stock to be registered) to the benefit of the registration rights set forth in this Section 5.2 that are held by the undersigned (the "Subject Securities"). Within sixty (60) days following the First Determination Date, Pubco shall issue to the undersigned such number of shares of Preferred Stock equal to 2% of number of shares of Subject Securities (the "Penalty Shares"). Penalty Shares shall also be issuable upon the expiration of each 30-day period following the First Determination Date during which Pubco has continued to fail to obtain effectiveness of, or maintain effectiveness of, the Registration Statement, as the case may be (the expiration date of each such 30-day period being a "Subsequent Determination Date"). The number of Penalty Shares issuable following each Subsequent Determination Date shall be determined and issued in accordance with this section on the same basis applicable to the First Determination Date; PROVIDED, HOWEVER, that Penalty Shares previously issued to the undersigned shall be excluded from the calculation of Subject Securities. Notwithstanding the foregoing, Pubco shall not be obligated to issue pursuant to this paragraph to the undersigned an aggregate number of Penalty Shares greater than 20% of the number of shares of Subject Securities originally subscribed for and held by the undersigned. (c) If Pubco fails to respond to the SEC, within thirty (30) days of receipt, to any questions and comments from the SEC regarding the Registration Statement, Pubco shall be obligated to issue Penalty Shares to the undersigned. The thirty-first (31st) day that Pubco has failed to respond to the SEC is termed the "Response Determination Date." Within sixty (60) days following the Response Determination Date, Pubco shall issue to the undersigned Penalty Shares (which are equal to 2% of the number of shares of Subject Securities). Penalty Shares shall also be issuable upon the expiration of each 30-day period following the Response Determination Date during which Pubco has continued to fail to respond to the SEC (the expiration date of each such 30-day C-6  period being a "Subsequent Response Determination Date"). The number of Penalty Shares issuable following each Subsequent Response Determination Date shall be determined and issued in accordance with this section on the same basis applicable to the Response Determination Date; PROVIDED, HOWEVER, that Penalty Shares previously issued to the undersigned shall be excluded from the calculation of Subject Securities. Notwithstanding the foregoing, Pubco shall not be obligated to issue pursuant to this paragraph to the undersigned an aggregate number of Penalty Shares greater than 20% of the number of shares of Subject Securities originally subscribed for and held by the undersigned. (d) Pubco shall notify the undersigned at any time when a prospectus relating thereto is required to be delivered under the Securities Act, upon discovery that, or upon the happening of any event as a result of which, the prospectus included in such registration statement, as then in effect, includes an untrue statement of a material fact or omits to state any material fact required to be stated therein or necessary to make the statements therein not misleading in light of the circumstances then existing. At the request of the undersigned, Pubco shall also prepare, file and furnish to the undersigned a reasonable number of copies of a supplement to or an amendment of such prospectus as may be necessary so that, as thereafter delivered to the purchasers of such shares, such prospectus shall not include an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading in light of the circumstances then existing. The undersigned agrees not to offer or sell any shares covered by the Registration Statement after receipt of such notification until the receipt of such supplement or amendment. (e) Pubco may request the undersigned to furnish Pubco such information with respect to the undersigned and the undersigned's proposed distribution of Securities pursuant to the Registration Statement as Pubco may from time to time reasonably request in writing or as shall be required by law or by the SEC in connection therewith, and the undersigned agrees to furnish Pubco with such information. 5.3 BUSINESS OPPORTUNITY AGREEMENT. Prior to the Closing, GlobalOptions, Inc. shall have obtained the written agreement of Harvey W. Schiller, Ph.D., which agreement shall remain in force during Dr. Schiller's employment with GlobalOptions, Inc. or Pubco, to bring to GlobalOptions, Inc. any corporate opportunity, business opportunity, proposed transaction, acquisition, disposition, participation, interest or other opportunity to acquire an interest in any risk mitigation or security-related business or prospect (a "business opportunity") that becomes available to him or any entity under his control. Pursuant to this agreement, GlobalOptions, Inc. has a 30-day right of first refusal with respect to any business opportunity that becomes available to Dr. Schiller. 6. USE OF PROCEEDS Pubco shall use the net proceeds from the offering of the Units to pursue its strategy of acquiring complementary businesses in the areas of risk mitigation, security, investigations and crisis management, and as otherwise set forth in the Memorandum. Upon receipt of the proceeds of this Offering from the Escrow Agent, Pubco shall deposit and maintain the net proceeds in a segregated bank account and funds shall be released into Pubco's operating account in a manner consistent with foregoing plan and upon periodic authorization from the Board of Directors of Pubco. 7. INSIDER TRADING PROHIBITION; INDEMNITY (a) Commencing as of the date upon which the Draft Form 8-K is sent to the undersigned and until the filing by Pubco of the Form 8-K with the SEC, the undersigned hereby agrees to (i) refrain from (a) engaging in any transactions with respect to the capital stock of Pubco or securities exercisable or convertible into or exchangeable for any shares of capital stock of Pubco, and (b) entering into any transaction which would have the same effect, or entering into any swap, hedge or other arrangement that transfers, in whole or in part, any of the economic consequences of ownership of the capital stock of Pubco and (ii) indemnify and hold harmless Pubco, the Placement Agent, and their respective officers and directors, employees and affiliates and each other person, if any, who controls any of the foregoing, against any loss, C-7  liability, claim, damage and expense whatsoever (including, but not limited to, any and all expenses whatsoever reasonably incurred in investigating, preparing or defending against any litigation commenced or threatened or any claim whatsoever) arising out of or based upon any violation of this Section 7 by the undersigned. (b) The undersigned agrees to indemnify and hold harmless Pubco, the Placement Agent, the Escrow Agent and their respective officers and directors, employees and affiliates and each other person, if any, who controls any of the foregoing, against any loss, liability, claim, damage and expense whatsoever (including, but not limited to, any and all expenses whatsoever reasonably incurred in investigating, preparing or defending against any litigation commenced or threatened or any claim whatsoever) arising out of or based upon any false representation or warranty by the undersigned, or the undersigned's breach of, or failure to comply with, any covenant or agreement made by the undersigned herein or in any other document furnished by the undersigned to Pubco, its officers and directors, employees and its affiliates and each other person, if any, who controls any of the foregoing in connection with this transaction. 8. MISCELLANEOUS PROVISIONS 8.1 MODIFICATION. Neither this Agreement, nor any provisions hereof, shall be waived, modified, discharged or terminated except by an instrument in writing signed by the party against whom any waiver, modification, discharge or termination is sought. 8.2 NOTICES. Any party may send any notice, request, demand, claim or other communication hereunder to the undersigned at the address set forth on the signature page of this Agreement or to Pubco at the address set forth above using any means (including personal delivery, expedited courier, messenger service, fax, ordinary mail or electronic mail), but no such notice, request, demand, claim or other communication will be deemed to have been duly given unless and until it actually is received by the intended recipient. Any party may change the address to which notices, requests, demands, claims and other communications hereunder are to be delivered by giving the other parties written notice in the manner herein set forth. 8.3 COUNTERPARTS. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. 8.4 BINDING EFFECT. Except as otherwise provided herein, this Agreement shall be binding upon, and inure to the benefit of, the parties to this Agreement and their heirs, executors, administrators, successors, legal representatives and assigns. If the undersigned is more than one person or entity, the obligation of the undersigned shall be joint and several and the agreements, representations, warranties and acknowledgments contained herein shall be deemed to be made by, and be binding upon, each such person or entity and his or its heirs, executors, administrators, successors, legal representatives and assigns. 8.5 ASSIGNABILITY. This Agreement is not transferable or assignable by the undersigned. This Agreement shall be transferable or assignable by the Placement Agent to Pubco. 8.6 GOVERNING LAW. This Agreement shall be governed by and construed in accordance with the laws of the State of New York, without giving effect to conflicts of law principles. C-8  ANTI-MONEY LAUNDERING REQUIREMENTS THE USA PATRIOT ACT WHAT IS MONEY HOW BIG IS THE PROBLEM LAUNDERING? AND WHY IS IT IMPORTANT? - -------------------------------------------------------------------------------------------------------------------- The USA PATRIOT Act is Money laundering is the The use of the U.S. financial designed to detect, deter, process of disguising illegally system by criminals to and punish terrorists in the obtained money so that the facilitate terrorism or other United States and abroad. funds appear to come from crimes could taint our The Act imposes new anti- legitimate sources or financial markets. According money laundering activities. Money laundering to the U.S. State requirements on brokerage occurs in connection with a Department, one recent firms and financial wide variety of crimes, estimate puts the amount of institutions. Since April 24, including illegal arms sales, worldwide money laundering 2002, all brokerage firms drug trafficking, robbery, activity at $1 trillion a year. have been required to have fraud, racketeering, and new, comprehensive anti- terrorism. money laundering programs. To help you understand these efforts, we want to provide you with some information about money laundering and our steps to implement the USA PATRIOT Act. WHAT ARE WE REQUIRED TO DO TO ELIMINATE MONEY LAUNDERING? Under new rules required by the USA As part of our required program, we may ask PATRIOT Act, our anti-money laundering you to provide various identification program must designate a special compliance documents or other information. Until you officer, set up employee training, conduct provide the information or documents we independent audits, and establish policies and need, we may not be able to effect any procedures to detect and report suspicious transactions for you. transactions and ensure compliance with the new laws. C-9  ALL SUBSCRIBERS MUST COMPLETE THIS PAGE IN WITNESS WHEREOF, the undersigned has executed this Agreement on the ____ day of ____________ 2005. ________________________ X $1,000 for each Unit = $________________________. Units subscribed for Aggregate Purchase Price Manner in which Title is to be held (Please Check ONE): 1. ___ Individual 7. ___ Trust/Estate/Pension or Profit sharing Plan Date Opened:______________ 2. ___ Joint Tenants with Right of 8. ___ As a Custodian for Survivorship ___________________________________________ Under the Uniform Gift to Minors Act of the State of ___________________________________________ 3. ___ Community Property 9. ___ Married with Separate Property 4. ___ Tenants in Common 10. ___ Keogh 5. ___ Corporation/Partnership/ 11. ___ Tenants by the Entirety Limited Liability Company 6. ___ IRA IF MORE THAN ONE SUBSCRIBER, EACH SUBSCRIBER MUST SIGN. INDIVIDUAL SUBSCRIBERS MUST COMPLETE PAGE C-11. SUBSCRIBERS WHICH ARE ENTITIES MUST COMPLETE PAGE C-12. C-10  EXECUTION BY NATURAL PERSONS - -------------------------------------------------------------------------------- Exact Name in Which Title is to be Held - ----------------------------------- ----------------------------------- Name (Please Print) Name of Additional Purchaser - ----------------------------------- ----------------------------------- Residence: Number and Street Address of Additional Purchaser - ----------------------------------- ----------------------------------- City, State and Zip Code City, State and Zip Code - ----------------------------------- ----------------------------------- Social Security Number Social Security Number - ----------------------------------- ----------------------------------- Telephone Number Telephone Number - ----------------------------------- ----------------------------------- Fax Number (if available) Fax Number (if available) - ----------------------------------- ----------------------------------- E-Mail (if available) E-Mail (if available) - ----------------------------------- ----------------------------------- (Signature) (Signature of Additional Purchaser) ACCEPTED this ___ day of _________ 2005, on behalf of Pubco. By: ________________________________ Name: Title: By: ________________________________ Name: Title: C-11  EXECUTION BY SUBSCRIBER WHICH IS AN ENTITY ------------------------------------------ (Corporation, Partnership, Trust, Etc.) - -------------------------------------------------------------------------------- Name of Entity (Please Print) Date of Incorporation or Organization:__________________________________________ State of Principal Office:______________________________________________________ Federal Taxpayer Identification Number:_________________________________________ ____________________________________________ Office Address ____________________________________________ City, State and Zip Code ____________________________________________ Telephone Number ____________________________________________ Fax Number (if available) ____________________________________________ E-Mail (if available) By: _________________________________ Name: Title: [seal] _________________________________ Attest:__________________________________ (If Entity is a Corporation) __________________________________ Address ACCEPTED this ____ day of __________ 2005, on behalf of Pubco. By:_______________________________ Name: Title: C-12  INVESTOR QUESTIONNAIRE INSTRUCTIONS: CHECK ALL BOXES BELOW WHICH CORRECTLY DESCRIBE YOU. |_| You are (I) a bank, as defined in Section 3(a)(2) of the Securities Act of 1933, as amended (the "SECURITIES ACT"), (II) a savings and loan association or other institution, as defined in Section 3(a)(5)(A) of the Securities Act, whether acting in an individual or fiduciary capacity, (III) a broker or dealer registered pursuant to Section 15 of the Securities Exchange Act of 1934, as amended (the "EXCHANGE ACT"), (IV) an insurance company as defined in Section 2(13) of the Securities Act, (V) an investment company registered under the Investment Company Act of 1940, as amended (the "INVESTMENT COMPANY ACT"), (VI) a business development company as defined in Section 2(a)(48) of the Investment Company Act, (VII) a Small Business Investment Company licensed by the U.S. Small Business Administration under Section 301 (c) or (d) of the Small Business Investment Act of 1958, as amended, (VIII) a plan established and maintained by a state, its political subdivisions, or an agency or instrumentality of a state or its political subdivisions, for the benefit of its employees and you have total assets in excess of $5,000,000, or (IX) an employee benefit plan within the meaning of the Employee Retirement Income Security Act of 1974, as amended ("ERISA") and (1) the decision that you shall subscribe for and purchase units consisting of one (1) share of Series A Convertible Preferred Stock and a three-year detachable warrant to purchase shares of common stock (the "Units"), is made by a plan fiduciary, as defined in Section 3(21) of ERISA, which is either a bank, savings and loan association, insurance company, or registered investment adviser, (2) you have total assets in excess of $5,000,000 and the decision that you shall subscribe for and purchase the Units is made solely by persons or entities that are accredited investors, as defined in Rule 501 of Regulation D promulgated under the Securities Act ("REGULATION D") or (3) you are a self-directed plan and the decision that you shall subscribe for and purchase the Units is made solely by persons or entities that are accredited investors. |_| You are a private business development company as defined in Section 202(a)(22) of the Investment Advisers Act of 1940, as amended. |_| You are an organization described in Section 501(c)(3) of the Internal Revenue Code of 1986, as amended (the "CODE"), a corporation, Massachusetts or similar business trust or a partnership, in each case not formed for the specific purpose of making an investment in the Units and with total assets in excess of $5,000,000. |_| You are a director or executive officer of GlobalOptions Group, Inc. |_| You are a natural person whose individual net worth, or joint net worth with your spouse, exceeds $1,000,000 at the time of your subscription for and purchase of the Units. |_| You are a natural person who had an individual income in excess of $200,000 in each of the two most recent years or joint income with your spouse in excess of $300,000 in each of the two most recent years, and who has a reasonable expectation of reaching the same income level in the current year. |_| You are a trust, with total assets in excess of $5,000,000, not formed for the specific purpose of acquiring the Units, whose subscription for and purchase of the Units is directed by a sophisticated person as described in Rule 506(b)(2)(ii) of Regulation D. |_| You are an entity in which all of the equity owners are persons or entities described in one of the preceding paragraphs. C-13  The undersigned hereby represents and warrants that all of its answers to this Investor Questionnaire are true as of the date of its execution of the Subscription Agreement pursuant to which it purchased securities of Pubco. __________________________________________ ____________________________________ Name of Purchaser [please print] Name of Co-Purchaser [please print] __________________________________________ ____________________________________ Signature of Purchaser (Entities please Signature of Co-Purchaser provide signature of Purchaser's duly authorized signatory.) _________________________________________ Name of Signatory (Entities only) _________________________________________ Title of Signatory (Entities only) C-14