Document:

CALCULATION AGENCY AGREEMENT

          CALCULATION AGENCY AGREEMENT, dated as of February 3, 2005 (the
"Agreement"), between Lehman Brothers Holdings Inc. (the "Company") and Lehman
Brothers Inc., as Calculation Agent.

          WHEREAS, the Company has authorized the issuance of up to $19,550,000
aggregate principal amount of Index-Plus Notes Due August 3, 2010, Linked to a
Basket of Four Stock Indices (the "Securities")*;

          WHEREAS, the Securities will be issued under an Indenture, dated as of
September 1, 1987, between the Company and Citibank, N.A., as Trustee (the
"Trustee"), as supplemented and amended by supplemental indentures dated as of
November 25, 1987, November 27, 1990, September 13, 1991, October 4, 1993,
October 1, 1995, and June 26, 1997, and incorporating Standard Multiple Series
Indenture Provisions dated July 30, 1987, as amended November 16, 1987
(collectively, the "Indenture"); and

          WHEREAS, the Company requests the Calculation Agent to perform certain
services described herein in connection with the Securities;

          NOW THEREFORE, the Company and the Calculation Agent agree as follows:

          1.     Appointment of Agent. The Company hereby appoints Lehman
Brothers Inc., as Calculation Agent, and Lehman Brothers Inc. hereby accepts
such appointment as the Company's agent for the purpose of performing the
services hereinafter described upon the terms and subject to the conditions
hereinafter mentioned.

          2.     Calculations and Information Provided. In response to a request
made by the Trustee for a determination of the Maturity Payment Amount due on
the Stated Maturity Date of the Securities, the Calculation Agent shall
determine such Maturity Payment Amount and notify the Trustee of its
determination. The Calculation Agent shall also determine (a) the Successor
Index if publication of a Component Index is discontinued, (b) the Weight of
each remaining Component Index if no Successor Index is available or if the
publisher of such Component Index or Successor Index, as the case may be, fails
to calculate and publish a Closing Index Level on any date, (c) adjustments to a
Component Index, Successor Index or the Closing Index Level if the method of
calculating any of these items changes in a material respect or if a Component
Index or Successor Index is in any other way modified so that it does not, in
the opinion of the Calculation Agent, fairly represent the level of such
Component Index, or

------------------
     *    Each Component Index is a trademark of the sponsor of such Component
          Index and has been licensed for use by Lehman Brothers Holdings Inc.
          The Securities, linked to the performance of the Component Indices,
          are not sponsored, endorsed, sold or promoted by the sponsors of the
          Component Indices and the sponsors of the Component Indices make no
          representation regarding the advisability of investing in the
          Securities.

                                                                               2

Successor Index, as the case may be, had such changes or modifications not been
made, (d) adjustments to the Threshold Level, if required in order to reflect
adjustments made in a Component Index or Successor Index and (e) whether a
Market Disruption Event has occurred. The Calculation Agent shall notify the
Trustee of all such adjustments or any such Successor Index, or if a Market
Disruption Event has occurred. Annex A hereto sets forth the procedures the
Calculation Agent will use to determine the information described in this
Section 2.

          3.      Calculations. Any calculation or determination by the
Calculation Agent pursuant hereto shall (in the absence of manifest error) be
final and binding. Any calculation made by the Calculation Agent hereunder
shall, at the Trustee's request, be made available at the Corporate Trust
Office.

          4.      Fees and Expenses. The Calculation Agent shall be entitled to
reasonable compensation for all services rendered by it as agreed to between the
Calculation Agent and the Company.

          5.      Terms and Conditions. The Calculation Agent accepts its
obligations herein set out upon the terms and conditions hereof, including the
following, to all of which the Company agrees:

          (a)     in acting under this Agreement, the Calculation Agent is
     acting solely as an independent expert of the Company and does not assume
     any obligation toward, or any relationship of agency or trust for or with,
     any of the holders of the Securities;

          (b)     unless otherwise specifically provided herein, any order,
     certificate, notice, request, direction or other communication from the
     Company or the Trustee made or given under any provision of this Agreement
     shall be sufficient if signed by any person whom the Calculation Agent
     reasonably believes to be a duly authorized officer or attorney-in-fact of
     the Company or the Trustee, as the case may be;

          (c)     the Calculation Agent shall be obliged to perform only such
     duties as are set out specifically herein and any duties necessarily
     incidental thereto;

          (d)     the Calculation Agent, whether acting for itself or in any
     other capacity, may become the owner or pledgee of Securities with the same
     rights as it would have had if it were not acting hereunder as Calculation
     Agent; and

          (e)     the Calculation Agent shall incur no liability hereunder
     except for loss sustained by reason of its gross negligence or willful
     misconduct.

          6.      Resignation; Removal; Successor. (a) The Calculation Agent may
at any time resign by giving written notice to the Company of such intention on
its part, specifying the date on which its desired resignation shall become
effective, subject to the appointment of a successor Calculation Agent and
acceptance of such appointment by such successor Calculation Agent, as
hereinafter provided. The Calculation Agent hereunder may be removed at any time
by the filing with it of an instrument in writing signed by or on behalf of the
Company and

                                                                               3

specifying such removal and the date when it shall become effective. Such
resignation or removal shall take effect upon the appointment by the Company, as
hereinafter provided, of a successor Calculation Agent and the acceptance of
such appointment by such successor Calculation Agent. In the event a successor
Calculation Agent has not been appointed and has not accepted its duties within
90 days of the Calculation Agent's notice of resignation, the Calculation Agent
may apply to any court of competent jurisdiction for the designation of a
successor Calculation Agent.

          (b) In case at any time the Calculation Agent shall resign, or shall
be removed, or shall become incapable of acting, or shall be adjudged bankrupt
or insolvent, or make an assignment for the benefit of its creditors or consent
to the appointment of a receiver or custodian of all or any substantial part of
its property, or shall admit in writing its inability to pay or meet its debts
as they mature, or if a receiver or custodian of it or all or any substantial
part of its property shall be appointed, or if any public officer shall have
taken charge or control of the Calculation Agent or of its property or affairs,
for the purpose of rehabilitation, conservation or liquidation, a successor
Calculation Agent shall be appointed by the Company by an instrument in writing,
filed with the successor Calculation Agent. Upon the appointment as aforesaid of
a successor Calculation Agent and acceptance by the latter of such appointment,
the Calculation Agent so superseded shall cease to be Calculation Agent
hereunder.

          (c) Any successor Calculation Agent appointed hereunder shall execute,
acknowledge and deliver to its predecessor, to the Company and to the Trustee an
instrument accepting such appointment hereunder and agreeing to be bound by the
terms hereof, and thereupon such successor Calculation Agent, without any
further act, deed or conveyance, shall become vested with all the authority,
rights, powers, trusts, immunities, duties and obligations of such predecessor
with like effect as if originally named as Calculation Agent hereunder, and such
predecessor, upon payment of its charges and disbursements then unpaid, shall
thereupon become obligated to transfer, deliver and pay over, and such successor
Calculation Agent shall be entitled to receive, all moneys, securities and other
property on deposit with or held by such predecessor, as Calculation Agent
hereunder.

          (d) Any corporation into which the Calculation Agent hereunder may be
merged or converted or any corporation with which the Calculation Agent may be
consolidated, or any corporation resulting from any merger, conversion or
consolidation to which the Calculation Agent shall be a party, or any
corporation to which the Calculation Agent shall sell or otherwise transfer all
or substantially all of the assets and business of the Calculation Agent shall
be the successor Calculation Agent under this Agreement without the execution or
filing of any paper or any further act on the part of any of the parties hereto.

          7. Certain Definitions. Terms not otherwise defined herein or in Annex
A hereto are used herein as defined in the Indenture or the Securities.

          8. Indemnification. The Company will indemnify the Calculation Agent
against any losses or liability which it may incur or sustain in connection with
its appointment or the exercise of its powers and duties hereunder except such
as may result from the gross negligence or willful misconduct of the Calculation
Agent or any of its agents or employees.

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The Calculation Agent shall incur no liability and shall be indemnified and held
harmless by the Company for, or in respect of, any action taken or suffered to
be taken in good faith by the Calculation Agent in reliance upon written
instructions from the Company.

          9. Notices. Any notice required to be given hereunder shall be
delivered in person, sent (unless otherwise specified in this Agreement) by
letter, telex or facsimile transmission or communicated by telephone (confirmed
in a writing dispatched within two Business Days), (a) in the case of the
Company, to it at 745 Seventh Avenue, New York, New York 10019 (facsimile: (646)
758-3204) (telephone: (212) 526-7000), Attention: Treasurer, with a copy to 399
Park Avenue, New York, New York 10022 (facsimile: (212) 526-0357) (telephone:
(212) 526-7000), Attention: Corporate Secretary, (b) in the case of the
Calculation Agent, to it at 745 Seventh Avenue, New York, New York 10019
(facsimile: (646) 758-4942) (telephone: (212) 526-7000), Attention: Equity
Derivatives Trading and (c) in the case of the Trustee, to it at 388 Greenwich
Street, 14th Floor, New York, New York 10013 (facsimile: (212) 816-5527)
(telephone: (212) 816-5773), Attention: Agency and Trust, or in any case, to any
other address or number of which the party receiving notice shall have notified
the party giving such notice in writing. Any notice hereunder given by telex,
facsimile or letter shall be deemed to be served when in the ordinary course of
transmission or post, as the case may be, it would be received.

          10. Governing Law. This Agreement shall be governed by, and construed
in accordance with, the laws of the State of New York.

          11. Counterparts. This Agreement may be executed in any number of
counterparts, each of which when so executed shall be deemed to be an original
and all of which taken together shall constitute one and the same agreement.

          12. Benefit of Agreement. This Agreement is solely for the benefit of
the parties hereto and their successors and assigns, and no other person shall
acquire or have any rights under or by virtue hereof.

                  IN WITNESS WHEREOF, this Calculation Agency Agreement has been
entered into as of the day and year first above written.

                                       LEHMAN BROTHERS HOLDINGS INC.

                                       By: /s/ Karen Corrigan
                                          --------------------------------------
                                          Karen Corrigan
                                          Vice President

                                       LEHMAN BROTHERS INC.,
                                         as Calculation Agent

                                       By: /s/ Karen Corrigan
                                          --------------------------------------
                                          Karen Corrigan
                                          Vice President

                         [Calculation Agency Agreement]

                                     ANNEX A

     1.   The Basket and the Component Indices.

          The basket (the "Basket") shall initially be composed of the following
indices: the Nikkei 225(SM) Index, as calculated, published and disseminated by
Nihon Keizai Shimbun, Inc., the Dow Jones EURO STOXX 50(SM) Index, as
calculated, published and disseminated by STOXX Limited, the MSCI Taiwan(SM)
Index, as calculated, published and disseminated by Morgan Stanley Capital
International Inc., and the AMEX Hong Kong 30(SM) Index, as calculated,
published and disseminated by the American Stock Exchange, Inc. (each, a
"Component Index" and, collectively, the "Component Indices").

     2.   Determination of the Maturity Payment Amount.

          The Calculation Agent shall, at the request of the Trustee, determine
the amount payable on the Stated Maturity Date for each $1,000 principal amount
of Securities (the "Maturity Payment Amount").

          The Maturity Payment Amount shall be the following:

          o    If the Final Basket Value is greater than or equal to the Initial
               Basket Value, the sum of:

               (1)  $1,000 and

                                    Upside                              Initial
               (2)  $1,000   x   Participation   x    Final Basket  -   Basket
                                     Rate                 Value          Value
                                                     ---------------------------
                                                        Initial Basket Value

          o    If the Final Basket Value is less than the Initial Basket Value
               and the Closing Basket Value is at or above the Threshold Level
               on all Exchange Business Days during the Measurement Period,
               $1,000.

          o    If the Final Basket Value is less than the Initial Basket Value
               and the Closing Basket Value has fallen below the Threshold Level
               on any Exchange Business Day during the Measurement Period, the
               product of:

               (1)  $1,000 and

               (2)   Final Basket Value
                   ----------------------
                    Initial Basket Value

     3.   Discontinuance of one or more of the Component Indices.

     (a) If a publisher of one of the Component Indices discontinues publication
of such Component Index and such publisher or another entity publishes a
successor or substitute index

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(a "Successor Index") that the Calculation Agent determines, in its sole
discretion exercised in good faith, to be comparable to the discontinued
Component Index, then the Calculation Agent shall determine each subsequent
Closing Basket Value to be used in (a) determining whether the Closing Basket
Value has fallen below the Threshold Level on any Exchange Business Day during
the Measurement Period and (b) computing the Maturity Payment Amount by
reference to the Closing Index Level of such Successor Index on the applicable
date.

     (b) Upon any selection by the Calculation Agent of any Successor Index, the
Company shall promptly give notice to the holders of the Securities.

     (c) If a publisher of one of the Component Indices discontinues publication
of such Component Index and the Calculation Agent determines that no Successor
Index is available at such time, or if such publisher (or the publisher of any
Successor Index) fails to calculate and publish a Closing Index Level for such
Component Index (or a Successor Index) on any date when it would ordinarily do
so in accordance with its customary practice, the Component Index (or Successor
Index) shall be removed from the Basket as of the close of business on the last
day on which its Closing Index Level was published by its publisher and the
weight of each remaining Component Index (or Successor Index) shall
simultaneously be increased by an amount determined by the Calculation Agent
such as to result in both (a) the relative weights of remaining Component
Indices on such day and (b) the Closing Basket Value on such day remaining
unchanged. In addition, the Calculation Agent shall make such other adjustments
to the terms of the Securities as may be required to account for such
discontinued Component Index.

     4.   Alteration of Method of Calculation.

          If at any time the method of calculating a Component Index, any
Successor Index, or the Closing Index Level thereof on any particular day, is
changed in a material respect, or if a Component Index or any Successor Index is
in any other way modified so that such index does not, in the opinion of the
Calculation Agent, fairly represent the level of such Component Index or such
Successor Index had such changes or modifications not been made, then, from and
after such time, the Calculation Agent shall, at the Close of Trading of the
Relevant Exchanges on which the securities comprising such Component Index or
such Successor Index traded on any date the Closing Index Level thereof is to be
determined, make such calculations and adjustments as, in the good faith
judgment of the Calculation Agent, may be necessary in order to arrive at a
level of a stock index comparable to such Component Index or such Successor
Index, as the case may be, as if such changes or modifications had not been
made. The Calculation Agent shall calculate the Closing Index Level of a
Component Index on any particular day and the Maturity Payment Amount with
reference to such Component Index or such Successor Index, as adjusted.

          Accordingly, if the method of calculating a Component Index or a
Successor Index is modified so that the level of such index is a fraction of
what it would have been if it had not been modified, then the Calculation Agent
shall adjust such index in order to arrive at a level of such Component Index or
such Successor Index as if it had not been modified.

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     5.   Definitions.

          Set forth below are the terms used in the Agreement and in this Annex
A.

          "Agreement" shall have the meaning set forth in the preamble to this
Agreement.

          "AMEX" shall mean the American Stock Exchange LLC.

          "Basket" shall have the meaning set forth in Section 1 of this Annex
A.

          "Business Day", notwithstanding any provision in the Indenture, shall
mean any day that is not a Saturday, a Sunday or a day on which the NYSE, Nasdaq
or AMEX is not open for trading or banking institutions or trust companies in
the City of New York are authorized or obligated by law or executive order to
close.

          "Calculation Agent" shall mean the person that has entered into an
agreement with the Company providing for, among other things, the determination
of the Maturity Payment Amount, which term shall, unless the context otherwise
requires, include its successors and assigns. The initial Calculation Agent
shall be Lehman Brothers Inc.

          "Close of Trading" shall mean, in respect of any Relevant Exchange,
the scheduled weekday closing time on a day on which the Relevant Exchange is
scheduled to be open for trading for its respective regular trading session,
without regard to after hours or any other trading outside of the regular
trading session hours.

          "Closing Basket Value" shall mean, with respect to any day, the sum of
the products of the Closing Index Level of each Component Index on that day and
the applicable Weight for such Component Index.

          "Closing Index Level" shall mean, with respect to any day, in the case
of any Component Index or any Successor Index, the closing level of such
Component Index or Successor Index, as the case may be, as reported by the
publisher of such Component Index or Successor Index, as the case may be, on
such day or as determined by the Calculation Agent pursuant to this Agreement.

          "Company" shall have the meaning set forth in the preamble to this
Agreement.

          "Component Index" shall have the meaning set forth in Section 1 of
this Annex A.

          "Exchange Business Day" shall mean any day on which all of the
Component Indices and any Successor Indices are published by their respective
publisher or are otherwise determined by the Calculation Agent pursuant to this
Agreement.

          "Final Basket Value" shall equal the Closing Basket Value on the
Valuation Date.

          "Indenture" shall have the meaning set forth in the preamble to this
Agreement.

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          "Initial Basket Value" shall equal 1,000.

          "Market Disruption Event", with respect to a Component Index or any
Successor Index shall mean any of the following events has occurred on any day
as determined by the Calculation Agent in its sole discretion:

     (1)  A material suspension of or limitation imposed on trading relating to
     the securities that then comprise 20% or more of such Component Index or
     any Successor Index, by the Relevant Exchanges on which those securities
     are traded, at any time during the one-hour period that ends at the Close
     of Trading on such day, whether by reason of movements in price exceeding
     limits permitted by that Relevant Exchange or otherwise.

     (2)  A material suspension of, or limitation imposed on, trading in futures
     or options contracts relating to such Component Index or any Successor
     Index by the primary exchange on which those futures or options contracts
     are traded, at any time during the one-hour period that ends at the Close
     of Trading on such day, whether by reason of movements in price exceeding
     limits permitted by the exchanges or otherwise.

     (3)  Any event, other than an early closure, that disrupts or impairs the
     ability of market participants in general to effect transactions in, or
     obtain market values for, the securities that then comprise 20% or more of
     such Component Index or any Successor Index on the Relevant Exchanges on
     which those securities are traded, at any time during the one-hour period
     that ends at the Close of Trading on that day.

     (4)  Any event, other than an early closure, that disrupts or impairs the
     ability of market participants in general to effect transactions in, or
     obtain market values for, the futures or options contracts relating to such
     Component Index or any Successor Index on the primary exchange or quotation
     system on which those futures or options contracts are traded at any time
     during the one-hour period that ends at the Close of Trading on that day.

     (5)  The closure of the Relevant Exchanges on which securities that then
     comprise 20% or more of such Component Index or any Successor Index are
     traded or on which futures or options contracts relating to such Component
     Index or any Successor Index are traded prior to its scheduled closing time
     unless the earlier closing time is announced by the Relevant Exchanges at
     least one hour prior to the earlier of (i) the actual closing time for the
     regular trading session on the Relevant Exchanges and (ii) the submission
     deadline for orders to be entered into the Relevant Exchanges for execution
     at the Close of Trading on that day.

For purposes of determining whether a Market Disruption Event has occurred, the
relevant percentage contribution of a security to the level of a Component Index
or any Successor Index will be based on a comparison of (x) the portion of the
level of such Component Index or Successor Index attributable to that security
and (y) the overall level of such Component Index or Successor Index, in each
case immediately before the occurrence of the Market Disruption Event.

                                                                               5

          "Maturity Payment Amount" shall have the meaning set forth in Section
2 of this Annex A.

          "Measurement Period" shall mean the period from January 31, 2005 to
and including the Valuation Date.

          "Nasdaq" shall mean The Nasdaq Stock Market, Inc.

          "NYSE" shall mean The New York Stock Exchange, Inc.

          "Relevant Exchange" shall mean, for any security (or any combination
thereof then underlying any Component Index or any Successor Index), the primary
exchange, quotation system, including any bulletin board service, or other
market of trading for such security.

          "Securities" shall have the meaning set forth in the preamble to this
Agreement.

          "Stated Maturity Date" shall mean August 3, 2010 (or if August 3, 2010
is not a Business Day, on the next Business Day); provided, that if a Market
Disruption Event occurs on the Valuation Date, the Stated Maturity Date shall be
the third Business Day following the date that the Final Basket Value on the
postponed Valuation Date is determined.

          "Successor Index" shall have the meaning set forth in Section 3(a) of
this Annex A.

          "Threshold Level" shall mean 600, as it may be adjusted from time to
time by the Calculation Agent to the extent it believes appropriate, in a manner
consistent with the adjustments to the method of calculation of a Component
Index or a Successor Index described in Sections 3 and 4 of this Annex A and
under the circumstances described in Sections 3 and 4 of this Annex A.

          "Trustee" shall have the meaning set forth in the preamble to this
Agreement.

          "Upside Participation Rate" shall mean 105%.

          "Valuation Date" shall mean July 29, 2010; provided, that if a Market
Disruption Event occurs on such day, then the Valuation Date shall be the next
following Exchange Business Day on which no Market Disruption Event occurs;
provided, however, if a Market Disruption Event occurs on each of the eight
Exchange Business Days following the originally scheduled Valuation Date, then
(a) that eighth Exchange Business Day shall be deemed the Valuation Date and (b)
the Calculation Agent shall determine the Final Basket Value based upon its good
faith estimate of the value of the Basket on that eighth Exchange Business Day.

                                                                               6

          "Weight" of a Component Index shall initially be as follows:

                  Component Index                        Weight
                  ---------------                        ------
                  The Nikkei 225 Index                  0.030735
                  The Dow Jones
                      EURO STOXX
                      50 Index                          0.100518
                  The MSCI Taiwan
                      Index                             0.996532
                  The AMEX Hong
                      Kong 30 Index                     0.146342

          The Weights shall be subject to adjustment by the Calculation Agent
pursuant to this Agreement.SETTLEMENT AGREEMENT

     This Settlement Agreement (hereinafter the "Agreement"), is hereby executed
on this 26th day of January, 2005, by and between VSUS Technologies, Inc., a
Delaware corporation ("VSUS") having its principal executive offices at 444
Madison Avenue, 24th floor, New York, NY 10022, c/o Great Court Capital, and
Amiram Ofir, an individual residing in Israel ("Amiram") who, prior to today,
was the founder and Chief Executive Officer of VSUS.

     WHEREAS, Amiram and the preferred stockholders of VSUS have various claims
and disputes arising out of certain company transactions, as well as a strong
difference of opinion on the future course of business of VSUS;

     WHEREAS, in settlement of that dispute, the parties have agreed to the
various stock sales, debt repayments, property allocations and other terms and
conditions set forth below;

     NOW, THEREFORE, in consideration of the mutual promises hereinafter set
forth, the parties, intending to be legally bound, hereby covenant and agree as
follows:

1. Amiram's Stock and Options. (a) Sale of Stock. Amiram hereby agrees to sell,
transfer and assign all of his right, title and interest in all VSUS capital
stock (but not options) which he owns, of record or beneficially (including,
without limitation, stock owned jointly with his wife Hannah Ofir, and stock
held by Ofir Holdings) (collectively, the "Ofir Stock") to whichever purchaser
is selected by Mr. Ivan Berkowitz, the representative of the holders of Series A
Convertible Preferred Stock of VSUS (the "Series A Preferred"), in exchange for
the sum of One Hundred Seventy Thousand U.S. Dollars ($170,000.00), in
immediately available funds, which shall be wired on the date hereof to the
client funds' account of Burns & Levinson, LLP of Boston, Massachusetts on
behalf of Amiram. Amiram, Hannah Ofir and Ofir Holdings are executing,
simultaneously herewith, stock transfer powers (and any other necessary
documents) sufficient to transfer the Ofir Stock, the share certificates of
which are currently held by the law firm of Bondy & Schloss in New York, N.Y.
pursuant to the terms of Pledge Agreements to which Amiram, Hannah Ofir and Ofir
Holdings are parties. VSUS assumes all responsibility for obtaining such various
releases and waivers as may be necessary to render the Ofir Stock sufficiently
free of restrictions to satisfy the requirements of said purchaser.

     (b) Exchange, Lockup and Registration of Options. All vested options held
by Amiram for the purchase of VSUS capital stock shall be exchanged, effective
as of the date hereof, for new options (the "New Amiram Options") which shall be
identical to his former options in every respect except that they shall not
contain any requirement to be exercised within ninety (90) days of the
termination of Amiram's employment with VSUS, but rather shall be exercisable at
any time until the expiration of such options. The New Amiram Options shall be
prepared by VSUS and mailed to Amiram not later than ten (10) business days
following the date hereof. Amiram hereby covenants and agrees to subject the New
Amiram Options to any lockup agreement as to which the holders of the Series A
Preferred hereafter all agree for their stock to be subject, whether such lockup

                                       1

agreement is presented to Amiram now or hereafter. VSUS hereby covenants and
agrees that any Registration Statement hereafter filed with the Securities and
Exchange Commission to register any shares underlying the Series A Preferred
shall also include, upon the same terms and conditions as the registration of
the Series A Preferred, all shares underlying the Amiram Options.

2. Debt Repayment. VSUS itself shall pay to Amiram, in addition to the above
stock sale proceeds, the sum of Forty Thousand U.S. Dollars ($40,000.00) in
repayment of amounts which Amiram advanced to VSUS in November and December of
2004 for the payment of VSUS expenses such as employees' salaries. This amount
is payable in immediately available funds, which shall be wired on the date
hereof to the client funds' account of Burns & Levinson, LLP of Boston,
Massachusetts on behalf of Amiram.

3. Resignations and Releases. Amiram and his wife, Hannah Ofir, shall sign and
deliver resignations from all of their corporate offices and employment (and, in
the case of Amiram, as a member of VSUS's Board of Directors as well). Amiram
and Hannah Ofir each are executing, simultaneously herewith, mutual releases
with VSUS, including any of its subsidiaries, for all liabilities, debts,
expenses, obligations etc. that either owes the other (including any affiliates
thereof), except for obligations explicitly set forth in this Agreement or in
the other agreements and instruments being executed together with this Agreement
(and except for any retirement or severance accounts set aside in her name
pursuant to Israeli law). Without limiting the generality of the foregoing, the
Employment Agreement between Amiram and VSUS is hereby cancelled, with no
obligations thereunder surviving for either party thereto. VSUS will request
that Mr. Matis Cohen execute a mutual release with Amiram. Amiram and Hannah
Ofir each are also executing simultaneously herewith, mutual acceptable mutual
releases with the holders of the Series A Preferred.

4. Non-Competition Commitment. Amiram hereby covenants and agrees not to compete
with VSUS (or with any current or future affiliate of VSUS), directly or
indirectly, with respect to the particular business of providing business
economic news and current business information to subscribers via email, instant
messaging, or other method of electronic distribution, from the date hereof
through December 31, 2006. For the sake of clarity, and without limitation, the
current business of Amiram, being the provision of special email systems and
functions to businesses and other enterprises, shall not be considered
competitive with that business. In addition, competitive activity on the part of
any third party, not affiliated with Amiram, whose email system is hosted by a
company majority owned or controlled by Amiram, but to which Amiram has not
provided substantive consulting or advice with respect to proprietary
information of VSUS or any affiliate of VSUS, shall not be imputed or otherwise
deemed activity of Amiram for purposes hereof. Other than the aforesaid
covenant, neither Amiram nor the Amiram Employees (as defined in Section 5
hereof) shall be restricted in any way from competing with VSUS or with any
affiliate of VSUS, any non-competition agreement or similar agreement between
them is hereby declared to be terminated, effective immediately.

                                       2

5. Employee Resignations and Israeli Retirement/Severance Accounts. Amiram has
obtained the good faith commitment of the employees of VSUS whose names are
listed on Exhibit A hereto (the "Amiram Employees") to resign from VSUS,
effective immediately. VSUS hereby conveys, transfers and assigns to each Amiram
Employee the funds, if any set forth in that employee's account for retirement
and/or severance and certain other accrued entitlements, maintained, in that
employee's name, by VSUS. In addition to such accounts, there are additional
sums (the "Deficit Amounts") which would be owed by SMD to the Amiram Employees
if any of them were fired from VSUS as of December 31, 2004. The total Deficit
Amounts are estimated to be $44,932.00. VSUS hereby covenants and agrees that in
the event that Amiram (or a company majority owned or controlled by Amiram)
terminates an Amiram Employee (including any situation, even if not literally a
termination, which under Israeli law would entitle that employee to an immediate
payment of some or all of the Deficit Amount for that employee) and pays such
Amiram Employee's pro rata portion (or any portion thereof) of such Deficit
Amount at any time through December 31, 2006, then VSUS, within ten (10) U.S.
business days of receipt of (a) notice from Amiram of such termination; (b)
reasonable evidence (such as a receipt from the employee) of payment thereof by
Amiram or his company; and (c) a written commitment from Amiram that he has not
agreed to rehire such employee, directly or indirectly (including through any
entity majority owned or controlled by Amiram) for ninety (90) days, and in fact
shall not rehire such employee, directly or indirectly, for ninety (90) days,
shall reimburse Amiram for such expenditure in immediately available funds.

6. Prompt Payment of Certain SMD Payables. Amiram intends to continue the
business of that Israeli subsidiary of VSUS named SAF-email Development Ltd.
("SMD"), initially at least under the auspices of ViVaVu Systems, Ltd., a newly
formed Israeli corporation founded by Amiram ("ViVaVu"). In order to enable
ViVaVu and Amiram to keep faith with employees and other vital suppliers to SMD,
VSUS hereby covenants and agrees to pay to the various payees thereof, subject
to verification, those particular items of SMD's current payables as of December
31, 2004, totaling $20,784, as are estimated on Exhibit B hereto, on or before
the earlier of (a) the Company's direct or indirect acquisition of 1stAlerts
Inc., a Delaware corporation based in Florida ("First Alerts"), or (b) any debt
or equity financing of the Company closing subsequent to the date hereof (other
than for sums payable hereunder).

7. Payment of Certain 2005 SMD Payables. Amiram (and/or ViVaVu) shall be solely
responsible for the payment of any debts or obligations incurred by SMD from and
after January 1, 2005 (other than any such arranged for by VSUS prior to that
date other than in the ordinary course of business consistent with past
practice, of which Amiram has not been notified in writing prior to the date
hereof) through the date hereof; except for the cost of the lease of SMD's Givat
Ram facility, and except for utilities, real estate taxes and other expenses
relating to the lease and occupancy of such facility); and except for the cost
of vehicles leased by SMD, all of which will be paid by VSUS and not reimbursed
by Amiram. In return for that commitment to pay such debts and obligations, VSUS
is executing simultaneously herewith a Promissory

                                       3

Note payable to Amiram in the amount of Twenty Thousand U.S. Dollars
($20,000.00), due and payable without interest on June 30, 2005.

8. Property Disposition. In furtherance of the purposes hereof, the parties
hereby agree to implement, immediately upon the execution hereof, the following
division of property and assets:

(a) VSUS hereby sells, transfers and assigns to ViVaVu, for no additional
consideration, all right, title and interest, insofar as VSUS and SMD are
concerned, SMD's Internet web site (www.safe-mail.net), and to any interest SMD
or VSUS may have in sites with a similar name (e.g., www.safe-mail.com). VSUS
shall have all right, title and interest, insofar as Amiram is concerned, to the
VSUS Internet web site (www.vsustech.com and www.vsus.us). VSUS hereby sells,
transfers and assigns to ViVaVu the corporate name and trademark "SAF-email" and
any and all similar forms thereto, and hereby covenants and agrees promptly to
change SMD's corporate name (and that of SAFe-mail International, and any other
subsidiaries and/or affiliates of VSUS) to a name dissimilar to "SAFe-mail."
VSUS hereby sells, transfers and assigns to ViVaVu all rights to the Israeli
post office box used by SMD, and Amiram hereby covenants and agrees that he,
directly or through such corporation, shall assume the obligation for any fees
for the use thereof hereafter, and shall promptly forward to SMD any mail that
relates to matters other than the SMD business being continued by Amiram.

(b) All computer hardware and technical equipment owned by SMD or other
affiliates of VSUS and kept at the Israeli offices of SMD (or at internet
service providers, third party hosting companies or similar enterprises, on
behalf of VSUS or SMD) are hereby sold, transferred and assigned, for no
additional consideration, to ViVaVu.

(c) All office furniture and other assets originally lent, contributed or
otherwise brought to SMD by Amiram or any of the Amiram Employees shall belong
to ViVaVu, and all furniture and other assets lent, contributed or otherwise
brought to SMD by Mr. Matis Cohen, a former director of VSUS (exclusive of those
assets described in (b) above, but inclusive of any telephone equipment
contributed by Mr. Cohen) shall belong to Mr. Cohen. Likewise, any furniture or
other asset brought to SMD by any other person shall belong to that person. Any
office furniture or other assets not covered by the preceding two sentences
shall be disposed of in a manner to be mutually decided upon by VSUS and Amiram.

(d) Unless otherwise agreed by the parties in writing, no leases (of office
space, vehicles or otherwise) are being assumed by Amiram or ViVaVu, and all
such leases shall remain the property and responsibility of SMD. Amiram and the
Amiram Employees shall vacate their current premises in the Givat Ram facility
leased by SMD by not later than February 28, 2005, and shall cease to utilize
any vehicles leased by SMD, not later than February 28, 2005. The occupancy by
Amiram and the Amiram Employees of the Givat Ram facility, and his and their use
of the vehicles leased by SMD, in both cases through February 28, 2005, shall be
free of charge, with the cost thereof borne by VSUS as additional consideration
for the debts and

                                       4

obligations assumed by Amiram pursuant to Section 7 hereof. Amiram hereby
represents and warrants that such vehicles are all undamaged as of the date
hereof, except for damages duly reported to the vehicle leasing company prior to
December 31, 2004, and Amiram hereby agrees to indemnify VSUS and hold VSUS
harmless from any loss, cost or expense (net of any applicable insurance
coverage) to VSUS or to any of its subsidiaries due to a breach of said
representation and warranty and/or due to any damages to such vehicles, or to
the Givat Ram facility, incurred from January 1, 2005 through February 28, 2005.

(e) All corporate records and documents (whether in paper or electronic form)
relating to the financial history to date, or to the corporate organization and
governance of VSUS, SMD or SAFe-mail International Ltd. (a subsidiary of VSUS),
and any other particular business records pertaining to such entities, as VSUS
hereafter reasonably may request, whether located at SMD's premises or elsewhere
within the control of Amiram or any Amiram Employee, are the property of VSUS
and shall be boxed up and made available at SMD's offices by not later than
February 10, 2005 for retrieval by any properly designated agent of VSUS (with
the exception of Mr. Matis Cohen, in order to avoid mutually unpleasant
encounters). Amiram agrees to liaise with VSUS's accountants as requested,
within reason, with respect to filing of VSUS's 2004 10-KSB, including the
transfer of all bookkeeping and accounting information and records. However,
obtaining such documents from VSUS's accountant shall not be the responsibility
of Amiram, but rather of VSUS; for which, if necessary, Amiram promptly shall
provide his written consent.

9. Mutual Representations and Warranties. The parties hereto each represent and
warrant to the other that they are not subject to any agreement, judgment or
decree which would prohibit or be violated by the execution or delivery of this
Agreement or by the performance by a party of its obligations hereunder, and
that they have obtained any and all consents, waivers or other documents
necessary for them to comply fully with their responsibilities and obligations
hereunder. In addition, Amiram hereby represents and warrants that he did not
knowingly authorize the issuance of any options or other securities of VSUS (or
any of its subsidiaries) from and after October 1, 2004 through the date hereof;
and that he did not commit VSUS, SMD and/or Safe-Mail International Ltd. to any
expenditures or obligations from and after October 1, 2004 outside the ordinary
course of business; and Amiram hereby agrees that, in any action based
exclusively upon a breach of one of the two foregoing representations and
warranties of Amiram, VSUS shall be entitled, if successful, to recover its
reasonable attorneys' fees and other costs of collection.

10. Miscellaneous. (a) This Agreement contains the entire understanding of the
parties with respect to the subject matter hereof, and supersedes any and all
written and oral agreements and understandings with respect to the subject
matter hereof. This Agreement shall not be construed as creating an agency,
partnership, franchise, joint venture or other relationship between the parties
other than one of independent contractors. Neither party has the right to bind
the other, to act as agent for or with the other, or to conduct business in the
other's name or for the other's account. Neither party shall contract
obligations in the name of, or on behalf of, the other, nor make any
representation, guaranty or warranty with respect to the other's personnel or
services except as

                                       5

authorized in writing by such other party in advance. This agreement shall be
binding upon the parties and their respective successors and assigns, but any
such assignment shall not relieve a party hereto from responsibility hereunder.

     (b) This Agreement shall be modified or amended only by means of a written
agreement executed by both parties. No waiver of any part of this Agreement
shall be effective unless made in writing and signed by the waiving party. No
waiver of any breach of this Agreement shall constitute a waiver of any
subsequent breach of the same or any other provision of this Agreement.

     (c) The parties recognize and acknowledge that they would not have any
adequate remedy at law in the event of a breach of this Agreement, and a party
may suffer irreparable damage and injury and/or damages which would be
practically impossible to ascertain, and accordingly the parties hereby agrees
that, in the event of a breach hereof, the other party, in addition to any other
available rights and remedies, shall be entitled to equitable relief with
respect thereto.

     (d) In the event any provision of this Agreement shall be held invalid or
unenforceable, such provision shall be deemed modified in time, geography, scope
or otherwise, but only to the extent necessary to make it enforceable. To effect
such modification, the said provision shall be deemed supplemented and/or
rewritten (or deleted if such provision is incapable of such addition and/or
rewriting), whichever shall most fully preserve the intentions of the parties as
originally expressed herein.

     (e) This agreement shall be governed by the law of the State of New York
but, in deference to the likely location of evidence and the convenience of
witnesses, any disputes or claims hereunder shall be resolved exclusively by the
courts of the State of Israel, and the parties hereby submit to the jurisdiction
of said forum.

     (f) Notices and other communications hereunder shall be deemed given when
received at the addresses set forth after the signatures of the parties below,
or at such other address as a party may notify the other party hereto in
accordance herewith. Electronic notification hereunder shall be valid only if
receipt is acknowledged by the recipient.

     (g) Paragraph headings herein are for convenience only and shall not be
considered in the interpretation of this Agreement.

     (h) This agreement was thoroughly negotiated by competent counsel for both
parties to their respective satisfaction. Therefore, the parties agree that, in
the interpretation hereof, no weight or consideration should be given with
respect to which party's attorneys prepared the initial draft hereof.

                                       6

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed by their duly authorized representatives.

                  VSUS TECHNOLOGIES, INC.

         By: /s/ Eli Kissos
            --------------------------------------
            Eli Kissos, President

Address: 444 Madison Avenue, 24th Floor, New York, NY 10022 c/o Great Court
         Capital

             /s/ Amiram Ofir
            --------------------------------------
            Amiram Ofir

Address: P.O. Box 39001, Givat-Ram, Jerusalem 91390, Israel

                                       7

                                    EXHIBIT A

          LIST OF "AMIRAM EMPLOYEES" HAVING RETIREMENT ACCOUNT DEFICITS
          -------------------------------------------------------------

Name of Amiram Employee
-----------------------

Eyal Levy

Gad Ginsberg

Shlomo Joel

Eliyahu Machluf

Tzahi Yoel

Yosef Pam

Ofir Pele

Hannah Ofir

Asaf Helfer

                                       8

                                    EXHIBIT B

                             PRIORITY VSUS PAYABLES
                             ----------------------

Petty Cash                                                      4,158
Computers Maintenance                                             700
Travel                                                            723
Internet Hosting                                                2,700
Phones                                                            349
Salaries 12/04                                                 11,650
Other Employee Entitlements*                                      504

TOTAL                                                          20,784

* Through December 31, 2004

                                       9

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