Document:

EMPLOYMENT
AGREEMENT

EMPLOYMENT AGREEMENT
(‘‘Agreement’’) dated as of September
14,  2006 between Quanta Capital Holdings Ltd., a Bermuda
corporation (the ‘‘Company’’), and James J.
Ritchie (the ‘‘Executive’’).

The parties
hereto agree as follows:

ARTICLE
1

DEFINITIONS

Section
1.01    Definitions.    For purposes of this Agreement,
the following terms have the meanings set forth
below:

‘‘Base Salary’’ has the meaning
set forth in Section 4.01.

‘‘Cause’’
means (a) theft or embezzlement by the Executive with respect to the
Company or its Subsidiaries; (b) the Executive's conviction of,
or plea of nolo contendere to, any felony or any misdemeanor involving
moral turpitude; (c) willful or prolonged absence from work by the
Executive (other than by reason of disability due to physical or mental
illness) or willful failure or refusal by the Executive to perform his
duties and responsibilities, without the same being corrected within
thirty (30) days after being given written notice thereof; (d)
continued and habitual use of alcohol by the Executive to an extent
which materially impairs the Executive's performance of his
duties, without the same being corrected within thirty (30) days after
being given written notice thereof; (e) the Executive's use of
illegal drugs, without the same being corrected within thirty (30) days
after being given written notice thereof; or (f) the material breach by
the Executive of any of the provisions contained in this Agreement,
including, without limitation, Section 3.01 and Section 11.01, without
the same (other than in the case of Section 11.01) being corrected
within thirty (30) days after being given written notice thereof.

‘‘Change in Control’’ means any of the
following occurring after the date hereof:

			
		a. 	Any
person (within the meaning of the Securities Exchange Act of 1934, as
amended (the ‘‘Exchange Act’’)), other than
a Permitted Person, is or becomes the ‘‘beneficial
owner’’ (as defined in Rule 13d-3 under the Exchange
Act), directly or indirectly, of Voting Securities representing
40% or more of the total voting power of all the then
outstanding Voting Securities; or

			
		b. 	The
individuals who, as of the date hereof, constitute the Board of
Directors of the Company (the ‘‘Board’’)
together with those who become directors subsequent to such date and
whose recommendation, election or nomination for election to the Board
was approved by a vote of at least a majority of the directors then
still in office who either were directors as of such date or whose
recommendation, election or nomination for election was previously so
approved, cease for any reason to constitute a majority of the members
of the Board; or

			
		c. 	The consummation of a merger,
consolidation, recapitalization, liquidation, sale, or disposition by
the Company of all or substantially all of the Company’s assets,
or reorganization of the Company, other than any such transaction which
would (x) result in at least 60% of the total voting power
represented by the voting securities of the surviving entity or, in the
case of an asset sale, the successor entity, outstanding immediately
after such transaction being beneficially owned, directly or
indirectly, by the stockholders of the Company immediately preceding
the transaction and (y) not otherwise be deemed a Change in Control
under subparagraphs a, b or d; or

			
		d. 	The Board
adopts a resolution to the effect that, for purposes hereof, a Change
in Control has occurred.

Where,

			
		i. 	‘‘Permitted
Persons’’ means (A) the Company; (B) any Related Party;
or (C) any group (as defined in Rule 13d-3 under the Exchange Act)
comprised of any or all of the
foregoing.

			
		ii. 	‘‘Related
Party’’ means (A) a majority-owned subsidiary of the
Company; (B) a trustee or other fiduciary holding securities under an
employee benefit plan of the Company or any majority-owned subsidiary
of the Company; or (C) a corporation owned directly or indirectly by
the stockholders of the Company in substantially the same proportion as
their ownership of Voting
Securities.

			
		iii. 	‘‘Voting
Security’’ means any security of the Company which
carries the right to vote generally in the election of
directors.

‘‘Confidential Information’’
means information that is not generally known to the public and that
was or is used, developed or obtained by the Company or its
Subsidiaries in connection with their business. It shall not include
information: (a) required to be disclosed by court or administrative
order or the applicable rules of the Securities and Exchange Commission
or any exchange on which the Company’s securities are listed;
(b) lawfully obtainable from other sources or which is in the public
domain through no fault of the Executive; or (c) the disclosure of
which is consented to in writing by the
Company.

‘‘Date of Termination’’ has the
meaning set forth in Section 5.07.

‘‘Good
Reason’’ means, without the Executive's written
consent: (a) any material diminution of the duties or responsibilities
of the Executive, without the same being corrected within thirty (30)
days after being given written notice thereof, except for a change in
Employment Category from Full-time to Part-time status of the Executive
subject to Section 3.03; (b) the Executive not being elected or
reelected, at any time, to the Board of Directors of the Company or a
requirement that the Executive report to anyone other than the Board of
Directors of the Company; (c) any material breach by the Company of the
provisions contained in this Agreement, without the same being
corrected within thirty (30) days after being given written notice
thereof; or (d) any reduction in the Executive’s Base Salary or
bonus opportunity. ‘‘Intellectual Property’’
has the meaning set forth in Section 7.01.

‘‘Notice
of Termination’’ has the meaning set forth in Section
5.06.

‘‘Noncompetition Period’’ has the
meaning set forth in Section 9.01.

‘‘Nonsolicitation
Period’’ has the meaning set forth in Section
9.02.

‘‘Person’’ means an individual, a
partnership, a corporation, a limited liability company, an
association, a joint stock company, an estate, a trust, a joint
venture, an unincorporated organization or a governmental entity or any
department, agency or political subdivision
thereof.

‘‘Permanent Disability’’ means
those circumstances where the Executive is unable to continue to
perform the usual customary duties of his assigned job or as otherwise
assigned in accordance with the provisions of this Agreement for a
period of six (6) months in any twelve (12) month period because of
physical, mental or emotional incapacity resulting from injury,
sickness or disease.

‘‘Reimbursable
Expenses’’ has the meaning set forth in Section 4.04.

‘‘Subsidiary’’ or
‘‘Subsidiaries’’ means, with respect to any
Person, any corporation, partnership, limited liability company,
association or other business entity of which (a) if a corporation,
fifty (50) percent or more of the total voting power of shares of stock
entitled (without regard to the occurrence of any contingency) to vote
in the election of directors, managers or trustees thereof is at the
time owned or controlled, directly or indirectly, by that Person or one
or more of the other Subsidiaries of that Person or combination
thereof; or (b) if a partnership, limited liability company,
association or other business entity, fifty (50) percent or more of the
partnership or other similar ownership interest thereof is at the time
owned or controlled, directly or indirectly, by any Person or one or
more Subsidiaries of that Person or a combination thereof. For purposes
of this definition, a Person or 

2

Persons will be deemed to have a fifty (50)
percent or more ownership interest in a partnership, limited liability
company, association or other business entity if such Person or Persons
are allocated fifty (50) percent or more of partnership, limited
liability company, association or other business entity gains or losses
or control the managing director or member or general partner of such
partnership, limited liability company, association or other business
entity.

ARTICLE
2

EMPLOYMENT

SECTION
2.01    Employment.    The Company shall employ the
Executive, and the Executive shall accept employment with the Company,
upon the terms and conditions set forth in this Agreement beginning on
September  14,  2006.

ARTICLE 3

POSITION AND DUTIES

SECTION 3.01    Position
and Duties.    The Executive shall serve as Executive Chairman
of the Board of Directors of the Company. In such capacity, the
Executive shall have such responsibilities, powers and duties as are
inherent in his positions (and the undertakings applicable to his
positions) and necessary to carry out his responsibilities and the
duties required of him hereunder and as may from time to time be
prescribed by the Board of Directors of the Company; provided that such
responsibilities, powers and duties prescribed by the Board of
Directors of the Company are substantially consistent with those
customarily assigned to individuals serving in such position at
comparable companies and shall not, without his consent, include tasks
or responsibilities that would be inconsistent with those of Executive
Chairman of the Board of Directors. The Executive shall devote a
substantial amount of his working time and efforts to the business and
affairs of the Company and its Subsidiaries. Other than his board
service for other companies as of the date of this agreement, the
Executive shall not directly or indirectly render any services of a
business, commercial or professional nature to any other person or
for-profit organization not related to the business of the Company or
its Subsidiaries, including serving on other boards, whether for
compensation or otherwise, without prior written consent of the
Company. Notwithstanding the foregoing, Executive may serve on the
board of directors or board of trustees a reasonable number of
non-profit organizations so long as such service does not interfere
with the performance of the Executive's duties hereunder. Except
as indicated in the preceding sentence and for the normal travel
requirements of his position, Executive's place of business shall
be located in Bermuda.

SECTION 3.02    The Company Board
Seat.    The Company shall use its best efforts to cause the
Executive to be re-elected to his existing seat on the Board of
Directors of the Company. In such capacity as a Director of the
Company, the Executive will provide oversight and stewardship for the
Company’s operations. In the event that the Executive’s
employment with the Company terminates for any reason, the Executive
shall immediately resign from the Board of Directors of the Company and
any committee of such Board of Directors on which he serves.

SECTION 3.03    Change In Employment Category.    The
Company and Executive agree that in the event the Company’s
business needs require less of the Executive’s time to achieve
its business objectives, the Company with written notice to the
Executive, may change the Executive’s Employment Category from
Full-time to Part-time status defined as an employee who works on a
regular basis less than 40 hours per workweek. In the event the
Executive’s Employment Category changes to Part-time status, the
Executive and Company agree that; (a) Change In Employment Category to
Part-time status will not be considered a
‘‘termination’’ as defined in Section 5.03
(Termination for Good Reason or Without Cause) or Section 5.04
(Termination As a Result of Change of Control); (b) the
Executive’s Base Salary rate will be reduced in proportion to
the number of hours worked; (e) the Executive will participate in
benefits as defined in Section 4.04 except that certain benefits may be
prorated based on the number of hours worked.

3

If the Executive is terminated at a
date after a change in Employment Category to Part-time status, as
defined in this Section 3.03, for any reason defined in Section 5.02,
Section 5.03, or Section 5.04, the Executive, (or in the case of
Termination Due to Death or Disability as defined in Section 5.02, the
Executive’s estate or legal representative), would be entitled
to receive solely; (i) the Base Salary through the Date of Termination;
and (ii) the bonus (if any) that would have been payable to the
Executive for the year of termination as determined by the Compensation
Committee of the Board of Directors in accordance with the annual bonus
plan as set forth in Section 4.02. In addition, promptly following any
such termination, the Executive shall also be reimbursed all
Reimbursable Expenses incurred by the Executive prior to such
termination.

ARTICLE 4

BASE SALARY AND
BENEFITS

SECTION 4.01    Base Salary.    The
Executive's base salary will be $400,000 per annum (the
‘‘Base Salary’’). The Base Salary will be
payable bi-monthly on the 15th and last working day of each month. The
Compensation Committee of the Board of Directors of the Company shall
review with the Executive his job performance and compensation
annually, and commencing with calendar year 2007 if deemed appropriate
by the Compensation Committee of the Board of Directors of the Company
in its sole discretion, the Executive's Base Salary may be
increased. Once his Base Salary has been increased, it may not
thereafter be decreased.

SECTION
4.02    Bonuses.    In addition to the Base Salary, the
Executive shall participate in an annual bonus plan. The
Executive's target annual bonus will be 100% of his Base
Salary (within a range of a minimum of 0% and a maximum of
200%), subject to successful completion of performance
objectives established by the Compensation Committee of the Board of
Directors.

SECTION 4.03    Long Term Incentive
Plan.    The Executive will be eligible to participate, at the
Compensation Committee’s discretion, in the Company’s
2006 Long Term Incentive Plan to be approved and determined by the
Board of Directors.

SECTION 4.04    Benefits.    In
addition to the Base Salary, and any bonuses payable to the Executive
pursuant to this Agreement, the Executive shall be entitled to the
following benefits:

(a)    such medical,
life insurance and disability insurance coverage as is, or may be
provided generally for other senior executive officers of the Company
as set forth from time to time in the applicable plan
documents;

(b)    six (6) weeks of paid
vacation annually ; and

(c)    benefits
equivalent to any plan or arrangement available generally for the
senior executive officers of the Company, subject to and consistent
with the terms and conditions and overall administration of such plans
as set forth from time to time in the applicable plan
documents.

(d)    the use of company leased
apartments or hotel rooms (at the Company’s discretion) in
Bermuda and New York City

SECTION
4.05    Expenses.    The Company shall reimburse the
Executive for all reasonable expenses incurred by him in the course of
performing his duties under this Agreement which are consistent with
the Company's policies in effect from time to time with respect
to travel, entertainment and other business expenses for senior
executives (‘‘Reimbursable Expenses’’), subject
to the Company’s requirements with respect to reporting and
documentation of expenses. If the Executive relocates to Bermuda, the
Company will provide to the Executive benefits, including housing,
customarily provided to similarly situated senior executives residing
in Bermuda.

ARTICLE 5

TERM AND
TERMINATION

SECTION 5.01    Term.    The
Executive’s Employment will terminate: (a) upon the
Executive's death or Permanent Disability; or (b) at any time by
the Company upon 30 days' prior written notice to the Executive
or by the Executive upon 30 days' prior written notice to the
Company.

4

SECTION 5.02    Termination Due to
Death or Permanent Disability.    If Executive’s
Employment is terminated due to the death of the Executive, the
Executive's estate or legal representative shall be paid solely:
(i) the bonus (if any) that would have been payable to the Executive
for the year of termination as determined by the Compensation Committee
of the Board of Directors in accordance with the annual bonus plan as
set forth in Section 4.02;, and (ii) an amount equal to twelve (12)
months of the Base Salary. Such amount will be payable in a lump sum as
soon as practicable following the Executive's death and shall not
be offset by any proceeds received by the Executive's estate or
legal representative from any insurance coverages provided by the
Company or any of its Subsidiaries. Notwithstanding the foregoing, the
Company may fund its obligations under this section through the
separate purchase of life insurance on the life on the executive.

If the Executive’s employment is terminated due to the
Permanent Disability of the Executive, the Executive (or his legal
representative) shall be paid solely: (i) the bonus (if any) that would
have been payable to the Executive for the year of termination as
determined by the Compensation Committee of the Board of Directors in
accordance with the annual bonus plan as set forth in Section 4.02; and
(ii) at a rate equal to 50% of the Base Salary on a monthly
basis during the period of the Executive's Permanent Disability
up to a maximum period as set forth in the Company's long-term
disability plan, offset by any proceeds received by the Executive or
his legal representative from any insurance coverages provided by the
Company or any of its Subsidiaries.

In addition, promptly
following any such termination, the Executive (or his estate or legal
representative) shall also be reimbursed all Reimbursable Expenses
incurred by the Executive prior to such termination. In event of a
Change in Employment Category as defined in Section 3.03, the
Executive’s rights upon termination shall be governed by Section
3.03.

SECTION 5.03    Termination for Good Reason or
Without Cause.    If the Executive’s employment is
terminated (a) by the Executive for Good Reason, or (b) by the Company
not for Cause, the Executive shall be paid solely: (i) the bonus (if
any) that would have been payable to the Executive for the year of
termination as determined by the Compensation Committee of the Board of
Directors in accordance with the annual bonus plan as set forth in
Section 4.02; and (ii) an amount equal to twelve (12) months of the
Base Salary. Such amount will be payable in a lump sum on the first
month anniversary of the Date of Termination. In addition, promptly
following any such termination, and upon presentation of appropriate
documentation, the Executive shall also be reimbursed all Reimbursable
Expenses incurred by the Executive prior to such termination. In event
of a Change in Employment Category as defined in Section 3.03, the
Executive’s rights upon termination shall be governed by Section
3.03.

SECTION 5.04    Termination As a Result of Change of
Control.    If the Executive’s employment is terminated
as a result of Change of Control of the Company, the Executive shall be
paid solely: (i) the bonus (if any) that would have been payable to the
Executive for the year of termination as determined by the Compensation
Committee of the Board of Directors in accordance with the annual bonus
plan as set forth in Section 4.02; and (ii) an amount equal to twenty
four (24) months of the Base Salary. Such amount will be payable in a
lump sum on the first month anniversary of the Date of Termination. In
addition, promptly following any such termination, the Executive shall
also be reimbursed all Reimbursable Expenses incurred by the Executive
prior to such termination.

SECTION 5.05    Termination for
Cause or Other Than Good Reason.    If the Executive’s
employment is terminated (a) for Cause, or (b) as a result of the
Executive's resignation or leaving of his employment other than
for Good Reason, the Executive shall be entitled to receive solely the
Base Salary through the Date of Termination and reimbursement of all
Reimbursable Expenses incurred by the Executive prior to such
termination.

SECTION 5.06    Notice of
Termination.    Any termination by the Company or by the
Executive for any reason shall be communicated by written Notice of
Termination to the other party hereto. For purposes of this Agreement,
a ‘‘Notice of Termination’’ shall mean a notice
which shall indicate the specific termination provision in this
Agreement relied upon and shall set forth in reasonable detail the
facts and circumstances claimed to provide a basis for termination of
employment under the provision indicated.

5

SECTION 5.07    Date of
Termination.    ‘‘Date of Termination’’
shall mean (a) if the Executive’s employment is terminated as a
result of a Permanent Disability, five (5) days after a Notice of
Termination is given; (b) if the Executive’s employment is
terminated for Good Reason, the date specified in the Notice of
Termination or any earlier date in the sole discretion of the Company;
(c) if the Executive’s employment is terminated for Cause, the
date specified in the Notice of Termination; (d) if the
Executive’s employment is terminated as a result of Change of
Control of the Company, the Change of Control closing date; and (e) if
the Executive’s employment is otherwise terminated under Section
5.01, after the applicable notice period specified in such section has
elapsed.

ARTICLE 6

CONFIDENTIAL
INFORMATION

SECTION 6.01    Nondisclosure and Nonuse of
Confidential Information.    The Executive will not disclose or
use at any time during or after the Executive’s employment with
the Company any Confidential Information of which the Executive is or
becomes aware, whether or not such information is developed by him,
except to the extent that such disclosure or use is directly related to
and required by the Executive's performance of duties assigned to
the Executive pursuant to this Agreement.

ARTICLE
7

INTELLECTUAL PROPERTY

SECTION
7.01    Ownership of Intellectual Property.    In the
event that the Executive as part of his activities on behalf of the
Company generates, authors or contributes to any invention, design, new
development, device, product, method or process (whether or not
patentable or reduced to practice or comprising Confidential
Information), any copyrightable work (whether or not comprising
Confidential Information) or any other form of Confidential Information
relating directly or indirectly to the business of the Company as now
or hereinafter conducted (collectively, ‘‘Intellectual
Property’’), the Executive acknowledges that such
Intellectual Property is the sole and exclusive property of the Company
and its Subsidiaries and hereby assigns all right title and interest in
and to such Intellectual Property to the Company and its Subsidiaries.
Any copyrightable work prepared in whole or in part by the Executive
during his employment with the Company will be deemed ‘‘a
work made for hire’’ under Section 201(b) of the Copyright
Act of 1976, as amended, and the Company and its Subsidiaries will own
all of the rights comprised in the copyright therein. The Executive
will cooperate with the Company and its Subsidiaries to protect the
Company and its Subsidiaries' interests in and rights to such
Intellectual Property (including providing reasonable assistance in
securing patent protection and copyright registrations and executing
all documents as reasonably requested by the Company and its
Subsidiaries, whether such requests occur prior to or after termination
of Executive's employment hereunder).

ARTICLE
8

DELIVERY OF MATERIALS UPON TERMINATION OF
EMPLOYMENT

SECTION 8.01    Delivery of Materials upon
Termination of Employment.    As requested by the Company and
its Subsidiaries, from time to time and upon the termination of the
Executive's employment with the Company for any reason, the
Executive will promptly deliver to the Company and its Subsidiaries all
copies and embodiments, in whatever form or medium, of all Confidential
Information or Intellectual Property in the Executive's
possession or within his control (including written records, notes,
photographs, manuals, notebooks, documentation, program listings, flow
charts, magnetic media, disks, diskettes, tapes and all other materials
containing any Confidential Information or Intellectual Property)
irrespective of the location or form of such material and, if requested
by the Company and its Subsidiaries, will provide the Company and its
Subsidiaries with written confirmation that all such materials have
been delivered to the Company and its Subsidiaries.

6

ARTICLE
9

NONCOMPETITION AND NONSOLICITATION

SECTION
9.01    Noncompetition.    The Executive acknowledges that
during his employment with the Company, he will become familiar with
trade secrets and other Confidential Information concerning the
Company, its Subsidiaries, and their respective predecessors, and that
his services will be of special, unique and extraordinary value to the
Company and its Subsidiaries. In addition, in consideration of the
rights to the payments set forth in Article 5 of this Agreement, the
Executive hereby agrees that at any time during his employment with the
Company and for a period ending twelve (12) months after the
termination of Executive's employment (the
‘‘Noncompetition Period’’), he will not
directly or indirectly own, manage, control, participate in, render
services (as an employee, consultant or in any other capacity) for or
in any manner engage in any business competing with the insurance and
reinsurance businesses of the Company or its Subsidiaries as such
businesses exist as of the termination of Executive's employment,
within any geographical area in which the Company or its Subsidiaries
engage in such businesses; provided, however, that, if such termination
is by the Company not for Cause or by the Executive for Good Reason
under Section 5.03 or termination is the result of Change of Control of
the company under section 5.04, the Executive shall be bound by this
Section 9.01 only to extent that the Company provides to the Executive
the benefits set forth in Section 5.03 and 5.04; provided, further,
that, if such termination is by reason of Executive's resignation
or leaving of his employment other than for Good Reason, the Executive
shall be bound by this Section 9.01 for the period of up to twelve (12)
months if the Company, at its sole option, within thirty (30) days
following such termination, elects in writing to (a) pay the Executive
an amount equal to six (6) months of the Base Salary (such amount to be
payable in equal monthly installments over such period). It shall not
be considered a violation of this Section 9.01 for the Executive to be
a passive owner of not more than 2% of the outstanding stock of
any class of a corporation which is publicly traded, so long as the
Executive has no active participation in the business of such
corporation.

SECTION 9.02    Nonsolicitation.    The
Executive hereby agrees that (a) during his employment with the Company
and for a period of twelve (12) months after the termination of
Executive's employment (the ‘‘Nonsolicitation
Period’’) the Executive will not, directly or indirectly
through another entity, induce or attempt to induce any employee of the
Company or its Subsidiaries to leave the employ of the Company or its
Subsidiaries, or in any way interfere with the relationship between the
Company or its Subsidiaries and any employee thereof and (b) during the
Nonsolicitation Period, the Executive will not induce or attempt to
induce any customer, supplier, client, insured, reinsured, reinsurer,
broker, licensee or other business relation of the Company or its
Subsidiaries to cease doing business with the Company or its
Subsidiaries.

SECTION 9.03    Enforcement.    If,
at the enforcement of Sections 9.01 or 9.02, a court holds that the
duration, scope or area restrictions stated herein are unreasonable
under circumstances then existing, the parties agree that the maximum
duration, scope or area reasonable under such circumstances will be
substituted for the stated duration, scope or area and that the court
will be permitted to revise the restrictions contained in this Article
9 to cover the maximum duration, scope and area permitted by
law.

ARTICLE 10

EQUITABLE
RELIEF

SECTION 10.01    Equitable Relief.    The
Executive acknowledges that (a) the covenants contained herein are
reasonable, (b) the Executive's services are unique, and (c) a
breach or threatened breach by him of any of his covenants and
agreements with the Company and its Subsidiaries contained in Sections
6.01, 7.01, 8.01, 9.01 or 9.02 could cause irreparable harm to the
Company and its Subsidiaries for which they would have no adequate
remedy at law. Accordingly, and in addition to any remedies which the
Company and its Subsidiaries may have at law, in the event of an actual
or threatened breach by the Executive of his covenants and agreements
contained in 

7

Sections 6.01, 7.01, 8.01, 9.01 or 9.02, the
Company and its Subsidiaries shall have the absolute right to apply to
any court of competent jurisdiction for such injunctive or other
equitable relief as such court may deem necessary or appropriate in the
circumstances, and the Company and its Subsidiaries will be entitled to
enforce such rights specifically, without posting a bond or other
security.

ARTICLE 11

REPRESENTATIONS;
CERTAIN COVENANTS

SECTION 11.01    Executive’s
Representations.    The Executive hereby represents and warrants
to the Company and its Subsidiaries that: (a) the execution, delivery
and performance of this Agreement by the Executive does not and will
not conflict with, breach, violate or cause a default under any
contract, agreement, instrument, order, judgment or decree to which the
Executive is a party or by which he is bound; (b) the Executive is not
a party to or bound by any noncompetition agreement with any other
Person; and (c) upon the execution and delivery of this Agreement by
the Company, this Agreement will be the valid and binding obligation of
the Executive.

SECTION 11.02    Company’s
Representations.    The Company hereby represents and warrants
to the Executive that: (a) it has all necessary corporate power and
authority to execute and deliver this Agreement and to perform its
obligations hereunder; and (b) the execution and delivery of this
Agreement by the Company has been duly and validly authorized by all
necessary corporate action.

SECTION 11.03    General
Indemnification.    The Company agrees that if the Executive is
made a party, or is threatened to be made a party, to any pending or
threatened action, suit or proceeding, whether civil, criminal,
administrative or investigative (each, a
‘‘Proceeding’’), by reason of the fact that he
is or was a director, officer or employee of the Company or is or was
serving at the request of the Company as a director, officer, member,
employee or agent of another corporation, partnership, joint venture,
trust or other enterprise, including service with respect to employee
benefit plans, the Executive shall be indemnified and held harmless by
the Company to the fullest extent permitted or authorized by applicable
law and the Company’s certificate of incorporation or bylaws,
against all cost, expense, liability and loss reasonably incurred or
suffered by the Executive in connection therewith, including, without
limitation, attorneys' fees and disbursements and judgments, and
the Company shall advance expenses in connection therewith, to the
fullest extent permitted or authorized by applicable law and the
Company’s certificate of incorporation or bylaws. Such
indemnification shall continue as to the Executive even if he has
ceased to be a director, member, employee or agent of the Company or
other entity and shall inure to the benefit of the Executive's
heirs, executors and administrators. The Company agrees to continue and
maintain a directors' and officers' liability insurance
policy covering the Executive to the extent the Company provides such
coverage for its other executive officers.

ARTICLE
12

MISCELLANEOUS

SECTION 12.01    Certain
Procedures.    There are currently no disciplinary or grievance
procedures in place, there is no collective agreement in place, and
there is no probationary period.

SECTION 12.02    Consent
to Amendments.    The provisions of this Agreement may be
amended or waived only by a written agreement executed by the Company
and the Executive, and delivered to each such contracting party. No
other course of dealing between the parties to this Agreement or any
delay in exercising any rights hereunder will operate as a waiver of
any rights of any such parties.

SECTION 12.03    Successors
and Assigns.    All covenants and agreements contained in this
Agreement by or on behalf of any of the parties hereto will bind and
inure to the benefit of the respective successors and assigns of the
parties hereto whether so expressed or not, provided that the Executive
may not assign his rights or delegate his obligations under this
Agreement without the written consent of the Company and its
Subsidiaries; provided further that the Company and its 

8

Subsidiaries may not assign the rights of the
Company and its Subsidiaries hereunder except to a Person that
expressly assumes the obligations of the Company and its Subsidiaries
hereunder. Specifically but not exclusively, the terms and conditions
of this Agreement shall survive any Change of Control as described in
Section 1.01 of this Agreement. If, following any such Change of
Control, the surviving or successor entity fails to abide by the terms
and conditions of this Agreement, Executive shall have the right to
seek injunctive or other relief and shall be entitled to recover from
the surviving or successor entity all of his reasonable expenses and
attorney’s fees incurred in connection therewith.

SECTION
12.04    Severability.    Whenever possible, each
provision of this Agreement will be interpreted in such manner as to be
effective and valid under applicable law, but if any provision of this
Agreement is held to be prohibited by or invalid under applicable law,
such provision will be ineffective only to the extent of such
prohibition or invalidity, without invalidating the remainder of this
Agreement.

SECTION 12.05    Counterparts.    This
Agreement may be executed simultaneously in two or more counterparts,
any one of which need not contain the signatures of more than one
party, but all of which counterparts taken together will constitute one
and the same agreement.

SECTION 12.06    Descriptive
Headings.    The descriptive headings of this Agreement are
inserted for convenience only and do not constitute a part of this
Agreement.

SECTION 12.07    Notices.    All notices,
demands or other communications to be given or delivered under or by
reason of the provisions of this Agreement will be in writing and will
be deemed to have been given when delivered personally to the
recipient, two (2) business days after the date when sent to the
recipient by reputable express courier service (charges prepaid) or
four (4) business days after the date when mailed to the recipient by
certified or registered mail, return receipt requested and postage
prepaid. Such notices, demands and other communications will be sent to
the Executive and to the Company at the addresses set forth
below.

If to the Executive: To the last address of the Executive
on record with the Company.

If to the Company: Quanta Capital
Holding Ltd., 1 Victoria Street, Hamilton, Bermuda HM11, attn: General
Counsel, or to such other address or to the attention of such other
person as the recipient party has specified by prior written notice to
the sending party.

SECTION
12.08    Withholding.    The Company may withhold from any
amounts payable under this Agreement such federal, state, local or
foreign taxes as shall be required to be withheld pursuant to any
applicable law or regulation.

SECTION 12.09    No Third
Party Beneficiary.    This Agreement will not confer any rights
or remedies upon any person other than the Company and its
Subsidiaries, the Executive, and their respective heirs, executors,
successors and assigns.

SECTION 12.10    Entire
Agreement.    This Agreement (including the documents referred
to herein) constitutes the entire agreement among the parties and
supersedes any prior understandings, agreements or representations by
or among the parties, written or oral, that may have related in any way
to the subject matter hereof.

SECTION
12.11    Construction.    The language used in this
Agreement will be deemed to be the language chosen by the parties to
express their mutual intent, and no rule of strict construction will be
applied against any party. Any reference to any federal, state, local
or foreign statute or law will be deemed also to refer to all rules and
regulations promulgated thereunder, unless the context requires
otherwise. The use of the word ‘‘including’’ in
this Agreement means ‘‘including without
limitation’’ and is intended by the parties to be by way of
example rather than limitation.

SECTION
12.12    Survival.    Sections 6.01, 7.01, 8.01, 11.03 and
Articles 9, 10, and 12 will survive and continue in full force in
accordance with their terms notwithstanding the occurrence of the Date
of Termination

SECTION 12.13    GOVERNING
LAW.    ALL QUESTIONS CONCERNING THE CONSTRUCTION, VALIDITY AND
INTERPRETATION OF THIS AGREEMENT WILL BE 

9

GOVERNED BY THE INTERNAL LAW OF BERMUDA,
WITHOUT REGARD TO PRINCIPLES OF CONFLICT OF LAWS.

SECTION
12.14    Jurisdiction.    The parties agree to the
exclusive jurisdiction of the federal and state courts situated in
Bermuda for the resolution of any dispute arising under this
Agreement.

SECTION 12.15    Approval of
Agreement.    The parties agree that this Agreement will not be
valid until approved by the Company’s Board of
Directors.

IN WITNESS WHEREOF, the parties hereto have executed
this Agreement as of the date and year first above
written.

		QUANTA CAPITAL HOLDINGS
LTD.

		By:     /s/ Nigel W.
Morris                    

		Nigel
W. Morris – Chairman, Compensation
 Committee of the Board of
Directors

		By:         /s/ James J.
Ritchie                        

                James J.
Ritchie

10THE REGISTERED HOLDER OF THIS PURCHASE OPTION BY ITS ACCEPTANCE HEREOF, AGREES
THAT IT WILL NOT SELL, TRANSFER OR ASSIGN THIS PURCHASE OPTION EXCEPT AS HEREIN
PROVIDED AND THE REGISTERED HOLDER OF THIS PURCHASE OPTION AGREES THAT IT WILL
NOT SELL, TRANSFER, ASSIGN, PLEDGE OR HYPOTHECATE THIS PURCHASE OPTION FOR A
PERIOD OF ONE YEAR FOLLOWING THE EFFECTIVE DATE (DEFINED BELOW) TO ANYONE OTHER
THAN (I) RODMAN & RENSHAW, LLC. ("RODMAN") OR AN UNDERWRITER OR A SELECTED
DEALER IN CONNECTION WITH THE OFFERING, OR (II) A BONA FIDE OFFICER OR PARTNER
OF RODMAN OR OF ANY SUCH UNDERWRITER OR SELECTED DEALER.

THIS PURCHASE OPTION IS NOT EXERCISABLE PRIOR TO THE LATER OF (I) THE
CONSUMMATION BY VECTOR INTERSECT SECURITY ACQUISITION CORPORATION ("COMPANY") OF
A MERGER, CAPITAL STOCK EXCHANGE, ASSET ACQUISITION OR OTHER SIMILAR BUSINESS
COMBINATION ("BUSINESS COMBINATION") (AS DESCRIBED MORE FULLY IN THE COMPANY'S
REGISTRATION STATEMENT (DEFINED HEREIN)) AND (II) _________, 2007. VOID AFTER
5:00 P.M. EASTERN TIME, __________, 2011.

                              UNIT PURCHASE OPTION

                               FOR THE PURCHASE OF

                                      UNITS

                                       OF

                   VECTOR INTERSECT SECURITY ACQUISITION CORP.

      1.    Purchase Option.

      THIS CERTIFIES THAT, in consideration of $100.00 duly paid by or on behalf
of Rodman & Renshaw, LLC ("Holder"), as registered owner of this Purchase
Option, to Vector Intersect Security Acquisition Corp., Holder is entitled, at
any time or from time to time upon the later of (i) the consummation of a
Business Combination and (ii) ___________, 2007 ("Commencement Date"), and at or
before 5:00 p.m., Eastern Time, ____________, 2011 ("Expiration Date"), but not
thereafter, to subscribe for, purchase and receive, in whole or in part, up to
Seven Hundred Forty Thousand Six Hundred Twenty-Five (740,625) units ("Units")
of the Company, each Unit consisting of one share of common stock of the
Company, par value $.001 per share ("Common Stock"), and one warrant
("Warrant(s)") expiring four years from the effective date ("Effective Date") of
the registration statement ("Registration Statement") pursuant to which Units
are offered for sale to the public ("Offering"). Each Warrant is the same as the
warrants included in the Units being registered for sale to the public by way of
the Registration Statement ("Public Warrants") except that the Warrants have an
exercise price of $5.50 per share ("Warrant Exercise Price"). If the Expiration
Date is a day on which banking institutions are authorized by law to close, then
this Purchase Option may be exercised on the next succeeding day which is not
such a day in accordance with the terms herein. During the period ending on the
Expiration Date, the Company agrees not to take any action that would terminate
the Purchase Option. This Purchase Option is initially exercisable at $8.80 per
Unit so purchased; provided, however, that upon the occurrence of any of the
events specified in Section 6 hereof, the rights granted by this Purchase
Option, including the exercise price per Unit and the number of Units (and
shares of Common Stock and Warrants) to be received upon such exercise, shall be
adjusted as therein specified. The term "Exercise Price" shall mean the initial
exercise price or the adjusted exercise price, depending on the context.

      2.    Exercise.

            2.1     Exercise Form. In order to exercise this Purchase Option,
the exercise form attached hereto must be duly executed and completed and
delivered to the Company, together with this Purchase Option and payment of the
Exercise Price for the Units being purchased payable in cash or by certified
check or official bank check. If the subscription rights represented hereby
shall not be exercised at or before 5:00 p.m., Eastern time, on the Expiration
Date this Purchase Option shall become and be void without further force or
effect, and all rights represented hereby shall cease and expire.

            2.2     Legend. Each certificate for the securities purchased under
this Purchase Option shall bear a legend as follows unless such securities have
been registered under the Securities Act of 1933, as amended ("Act"):

      "The securities represented by this certificate have not been registered
      under the Securities Act of 1933, as amended ("Act") or applicable state
      law. The securities may not be offered for sale, sold or otherwise
      transferred except pursuant to an effective registration statement under
      the Act, or pursuant to an exemption from registration under the Act and
      applicable state law."

            2.3     Cashless Exercise.

                    2.3.1   Determination of Amount. In lieu of the payment of
the Exercise Price multiplied by the number of Units for which this Purchase
Option is exercisable (and in lieu of being entitled to receive Common Stock and
Warrants) in the manner required by Section 2.1, the Holder shall have the right
(but not the obligation) to convert any exercisable but unexercised portion of
this Purchase Option into Units ("Conversion Right") as follows: upon exercise
of the Conversion Right, the Company shall deliver to the Holder (without
payment by the Holder of any of the Exercise Price in cash) that number of Units
(or that number of shares of Common Stock and Warrants (or that number of shares
of comprising that number of Units) equal to the quotient obtained by dividing
(x) the "Value" (as defined below) of the portion of the Purchase Option being
converted by (y) the Current Market Value (as defined below). The "Value" of the
portion of the Purchase Option being converted shall equal the remainder derived
from subtracting (a) (i) the Exercise Price multiplied by (ii) the number of
Units underlying the portion of this Purchase Option being converted from (b)
the Current Market Value of a Unit multiplied by the number of Units underlying
the portion of the Purchase Option being converted. As used herein, the term
"Current Market Value" per Unit at any date means: (A) in the event that neither
the Units nor Public Warrants are still trading, the remainder derived from
subtracting (x) the exercise price of the Warrants multiplied by the number of
shares of Common Stock issuable upon exercise of the Warrants underlying one
Unit from (y) (i) the Current Market Price of the Common Stock multiplied by
(ii) the number of shares of Common Stock underlying one Unit, which shall
include the shares of Common Stock underlying the Warrants included in such
Unit; (B) in the event that the Units, Common Stock and Public Warrants are
still trading, (i) if the Units are listed on a national securities exchange or
quoted on the Nasdaq National Market, Nasdaq Capital Market or NASD OTC Bulletin
Board (or successor exchange), the last sale price of the Units in the principal
trading market for the Units as reported by the exchange, Nasdaq or the NASD, as
the case may be, on the last trading day preceding the date in question; or (ii)
if the Units are not listed on a national securities exchange or quoted on the
Nasdaq National Market, Nasdaq Capital Market or the NASD OTC Bulletin Board (or
successor exchange), but is traded in the residual over-the-counter market, the
closing bid price for Units on the last trading day preceding the date in
question for which such quotations are reported by the Pink Sheets, LLC or
similar publisher of such quotations; and (C) in the event that the Units are
not still trading but the Common Stock and Public Warrants underlying the Units
are still trading, the Current Market Price of the Common Stock plus the product
of (x) the Current Market Price of the Public Warrants and (y) the number of
shares of Common Stock underlying the Warrants included in one Unit. The
"Current Market Price" shall mean (i) if the Common Stock (or Public Warrants,
as the case may be) is listed on a national securities exchange or quoted on the
Nasdaq National Market, Nasdaq Capital Market or NASD OTC Bulletin Board (or
successor exchange), the last sale price of the Common Stock (or Public
Warrants) in the principal trading market for the Common Stock as reported by
the exchange, Nasdaq or the NASD, as the case may be, on the last trading day
preceding the date in question; (ii) if the Common Stock (or Public Warrants, as
the case may be) is not listed on a national securities exchange or quoted on
the Nasdaq National Market, Nasdaq Capital Market or the NASD OTC Bulletin Board
(or successor exchange), but is traded in the residual over-the-counter market,
the closing bid price for the Common Stock (or Public Warrants) on the last
trading day preceding the date in question for which such quotations are
reported by the Pink Sheets, LLC or similar publisher of such quotations; and
(iii) if the fair market value of the Common Stock cannot be determined pursuant
to clause (i) or (ii) above, such price as the Board of Directors of the Company
shall determine, in good faith. In the event the Public Warrants have expired
and are no longer exercisable, no "Value" shall be attributed to the Warrants
underlying this Purchase Option. Additionally, in the event this Purchase Option
is exercised pursuant to this Section 2.3 and the Public Warrants are still
trading, the "Value" shall be reduced by the difference between the Warrant
Exercise Price and the exercise price of the Public Warrants.

                                        2

                    2.3.2   Mechanics of Cashless Exercise. The Cashless
Exercise Right may be exercised by the Holder on any business day on or after
the Commencement Date and not later than the Expiration Date by delivering the
Purchase Option with the duly executed exercise form attached hereto with the
cashless exercise section completed to the Company, exercising the Cashless
Exercise Right and specifying the total number of Units the Holder will purchase
pursuant to such Cashless Exercise Right.

      3.    Transfer.

            3.1     General Restrictions. The registered Holder of this Purchase
Option, by its acceptance hereof, agrees that it will not sell, transfer,
assign, pledge or hypothecate this Purchase Option for a period of one year
following the Effective Date to anyone other than (i) Rodman or an underwriter
or a selected dealer in connection with the Offering, or (ii) a bona fide
officer or partner of Rodman or of any such underwriter or selected dealer. On
and after the first anniversary of the Effective Date, transfers to others may
be made subject to compliance with or exemptions from applicable securities
laws. In order to make any permitted assignment, the Holder must deliver to the
Company the assignment form attached hereto duly executed and completed,
together with the Purchase Option and payment of all transfer taxes, if any,
payable in connection therewith. The Company shall within five business days
transfer this Purchase Option on the books of the Company and shall execute and
deliver a new Purchase Option or Purchase Options of like tenor to the
appropriate assignee(s) expressly evidencing the right to purchase the aggregate
number of Units purchasable hereunder or such portion of such number as shall be
contemplated by any such assignment.

            3.2     Restrictions Imposed by the Act. The securities evidenced by
this Purchase Option shall not be transferred unless and until (i) the Company
has received the opinion of counsel for the Holder that the securities may be
transferred pursuant to an exemption from registration under the Act and
applicable state securities laws, the availability of which is established to
the reasonable satisfaction of the Company, or (ii) a registration statement or
a post-effective amendment to the Registration Statement relating to such
securities has been filed by the Company and declared effective by the
Securities and Exchange Commission and compliance with applicable state
securities law has been established.

      4.    New Purchase Options to be Issued.

            4.1     Partial Exercise or Transfer. Subject to the restrictions in
Section 3 hereof, this Purchase Option may be exercised or assigned in whole or
in part. In the event of the exercise or assignment hereof in part only, upon
surrender of this Purchase Option for cancellation, together with the duly
executed exercise or assignment form and funds sufficient to pay any Exercise
Price and/or transfer tax, the Company shall cause to be delivered to the Holder
without charge a new Purchase Option of like tenor to this Purchase Option in
the name of the Holder evidencing the right of the Holder to purchase the number
of Units purchasable hereunder as to which this Purchase Option has not been
exercised or assigned.

            4.2     Lost Certificate. Upon receipt by the Company of evidence
satisfactory to it of the loss, theft, destruction or mutilation of this
Purchase Option and of reasonably satisfactory indemnification or the posting of
a bond, the Company shall execute and deliver a new Purchase Option of like
tenor and date. Any such new Purchase Option executed and delivered as a result
of such loss, theft, mutilation or destruction shall constitute a substitute
contractual obligation on the part of the Company.

      5.    Registration Rights.

            5.1     Demand Registration.

                    5.1.1   Grant of Right. The Company, upon written demand
("Initial Demand Notice") of the Holder(s) of at least 51% of the Purchase
Options and/or the underlying Units and/or the underlying securities ("Majority
Holders"), agrees to register (the "Demand Registration") on one occasion, all
or any portion of the Purchase Options requested by the Majority Holders in the
Initial Demand Notice and all of the securities underlying such Purchase
Options, including the Units, Common Stock, the Warrants and the Common Stock
underlying the Warrants (collectively, the "Registrable Securities"). On such
occasion, the Company will file a registration statement or a post-effective
amendment to the Registration Statement covering the Registrable Securities
within

                                        3

sixty days after receipt of the Initial Demand Notice and use its best efforts
to have such registration statement or post-effective amendment declared
effective as soon as possible thereafter. The demand for registration may be
made at any time during a period of five years beginning on the Effective Date.
The Initial Demand Notice shall specify the number of shares of Registrable
Securiites proposed to be sold and the intended method(s) of distribution
thereof. The Company covenants and agrees to give written notice of its receipt
of any Initial Demand Notice by any Holder(s) to all other registered Holders of
the Purchase Options and/or the Registrable Securities within ten days from the
date of the receipt of any such Initial Demand Notice. Each holder of
Registrable Securities who wishes to include all or a portion of such holder's
Registrable Securities in the Demand Registration (each such holder including
shares of Registrable Securities in such registration, a "Demanding Holder")
shall so notify the Company within fifteen (15) days after the receipt by the
holder of the notice from the Company. Upon any such request, the Demanding
Holders shall be entitled to have their Registrable Securities included in the
Demand Registration.

                    5.1.2   Effective Registration. A registration will not
count as a Demand Registration until the registration statement filed with the
Commission with respect to such Demand Registration has been declared effective
and the Company has complied with all of its obligations under this Agreement
with respect thereto; provided, however, that if, after such registration
statement has been declared effective, the offering of Registrable Securities
pursuant to a Demand Registration is interfered with by any stop order or
injunction of the Commission or any other governmental agency or court, the
registration statement with respect to such Demand Registration will be deemed
not to have been declared effective, unless and until, (i) such stop order or
injunction is removed, rescinded or otherwise terminated, and (ii) a
majority-in-interest of the Demanding Holders thereafter elect to continue the
offering.

                    5.1.3.  Underwritten Offering. If the Majority Holders so
elect and such holders so advise the Company as part of the Initial Demand
Notice, the offering of such Registrable Securities pursuant to such Demand
Registration shall be in the form of an underwritten offering. In such event,
the right of any holder to include its Registrable Securities in such
registration shall be conditioned upon such holder's participation in such
underwriting and the inclusion of such holder's Registrable Securities in the
underwriting to the extent provided herein. All Demanding Holders proposing to
distribute their securities through such underwriting shall enter into an
underwriting agreement in customary form with the underwriter or underwriters
selected for such underwriting by the Majority Holders.

                    5.1.4   Reduction of Offering. If the managing underwriter
or underwriters for a Demand Registration that is to be an underwritten offering
advises the Company and the Demanding Holders in writing that the dollar amount
or number of shares of Registrable Securities which the Demanding Holders desire
to sell, taken together with all other shares of Common Stock or other
securities which the Company desires to sell and the shares of Common Stock, if
any, as to which registration has been requested pursuant to written contractual
piggy-back registration rights held by other stockholders of the Company who
desire to sell, exceeds the maximum dollar amount or maximum number of shares
that can be sold in such offering without adversely affecting the proposed
offering price, the timing, the distribution method, or the probability of
success of such offering (such maximum dollar amount or maximum number of
shares, as applicable, the " MAXIMUM NUMBER OF SHARES "), then the Company shall
include in such registration: (i) first, the Registrable Securities as to which
Demand Registration has been requested by the Demanding Holders (pro rata in
accordance with the number of shares that each such Person has requested be
included in such registration, regardless of the number of shares held by each
such Person (such proportion is referred to herein as " PRO RATA ")) that can be
sold without exceeding the Maximum Number of Shares; (ii) second, to the extent
that the Maximum Number of Shares has not been reached under the foregoing
clause (i), the shares of Common Stock or other securities that the Company
desires to sell that can be sold without exceeding the Maximum Number of Shares;
(iii) third, to the extent that the Maximum Number of Shares has not been
reached under the foregoing clauses (i) and (ii), the shares of Common Stock or
other securities registrable pursuant to the terms of the Registration Rights
Agreement between the Company and the initial investors in the Company, dated as
of __________, 2006 (the " REGISTRATION RIGHTS AGREEMENT " and such registrable
securities, the " INVESTOR SECURITIES ") as to which "piggy-back" registration
has been requested by the holders thereof, Pro Rata, that can be sold without
exceeding the Maximum Number of Shares; and (iv) fourth, to the extent that the
Maximum Number of Shares have not been reached under the foregoing clauses (i),
(ii), and (iii), the shares of Common Stock or other securities for the account
of other persons that the Company is obligated to register pursuant to written
contractual arrangements with such persons and that can be sold without
exceeding the Maximum Number of Shares.

                                        4

                    5.1.5   Withdrawal. If a majority-in-interest of the
Demanding Holders disapprove of the terms of any underwriting or are not
entitled to include all of their Registrable Securities in any offering, such
majority-in-interest of the Demanding Holders may elect to withdraw from such
offering by giving written notice to the Company and the underwriter or
underwriters of their request to withdraw prior to the effectiveness of the
registration statement filed with the Commission with respect to such Demand
Registration. If the majority-in-interest of the Demanding Holders withdraws
from a proposed offering relating to a Demand Registration, then such
registration shall not count as a Demand Registration provided for in Section
5.1.

                    5.1.6   Terms. The Company shall bear all fees and expenses
attendant to registering the Registrable Securities, including the expenses of
any legal counsel selected by the Holders to represent them in connection with
the sale of the Registrable Securities, but the Holders shall pay any and all
underwriting commissions. The Company agrees to use its reasonable best efforts
to qualify or register the Registrable Securities in such States as are
reasonably requested by the Majority Holder(s); provided, however, that in no
event shall the Company be required to register the Registrable Securities in a
State in which such registration would cause (i) the Company to be obligated to
qualify to do business in such State, or would subject the Company to taxation
as a foreign corporation doing business in such jurisdiction or (ii) the
principal stockholders of the Company to be obligated to escrow their shares of
capital stock of the Company. The Company shall cause any registration
state-ment or post-effective amendment filed pursuant to the demand rights
granted under Section 5.1.1 to remain effective for a period of nine consecutive
months from the effective date of such registration statement or post-effective
amendment.

            5.2     "Piggy-Back" Registration.

                    5.2.1   Grant of Right. In addition to the demand right of
registration, the Holders of the Purchase Options shall have the right for a
period of seven years commencing on the Effective Date, to include the
Registrable Securities as part of any other registration of securities filed by
the Company (other than in connection with a transaction contemplated by Rule
145(a) promulgated under the Act, pursuant to Form S-8 or for an offering of
debt securities that is convertible into equity securities of the Company);
provided, however, that if, in the written opinion of the Company's managing
underwriter or underwriters, if any, for such offering, the inclusion of the
Registrable Securities, when added to the securities being registered by the
Company or the selling stockholder(s), will exceed the maximum amount of the
Company's securities ( the "Maximum Amount") which can be marketed (i) at a
price reasonably related to their then current market value, and (ii) without
materially and adversely affecting the entire offering, then the Company shall
include in any such registration: first, the shares of Common Stock or other
securities that the Company or, if the registration of securities is a
registration that is being filed pursuant to demand registration rights of any
other holder(s) of the Company's securities ("Other Demand Holders"), such Other
Demand Holders desire to sell, second, the Registrable Securities for which
registration has been requested hereunder together with any securities for which
piggy-back registration has been requested by the holders thereof pursuant to
the Registration Rights Agreement dated as of the date hereof by and among the
Company and certain Investors named therein, pro rata, (according to the total
number of securities of the Company owned by such selling security holders) that
can be sold without exceeding the Maximum Amount and third to the extent that
the Maximum Amount has not been reached under the foregoing clauses first and
second the shares of Common Stock or other securities for the account of other
persons that the Company is obligated to register pursuant to written
contractual arrangements with such persons that can be sold without exceeding
the Maximum Amount. The Company shall give written notice of such proposed
filing to the Holders of the Purchase Options as soon as practicable, but in no
event less than ten (10) days before the anticipated filing date, which notice
shall describe the amount and type of securities to be included in such
offering, the intended method(s) of distribution, and the name of the proposed
managing underwriter or underwriters, if any, of the offering, and offer the
Holders in such notice the opportunity to register the sale of such number of
shares of Registrable Securities as such holders may request in writing within
five (5) days following receipt of such notice (a "Piggy-Back Registration").
All Holders proposing to distribute their Registrable Securities through a
Piggy-Back Registration that involves an underwriter or underwriters shall enter
into an underwriting agreement in customary form with the underwriter or
underwriters selected for such Piggy-Back Registration.

                    5.2.2   Withdrawal. Any Holder of Registrable Securities may
elect to withdraw such Holder's request for inclusion of Registrable Securities
in any Piggy-Back Registration by giving written notice to

                                        5

the Company of such request to withdraw prior to the effectiveness of the
registration statement. The Company (whether on its own determination or as the
result of a withdrawal by persons making a demand pursuant to written
contractual obligations) may withdraw a registration statement at any time prior
to the effectiveness of the registration statement. Notwithstanding any such
withdrawal, the Company shall pay all expenses incurred by the holders of
Registrable Securities in connection with such Piggy-Back Registration as
provided in Section 5.2.3.

                    5.2.3   Terms. The Company shall bear all fees and expenses
attendant to registering the Registrable Securities, including the expenses of
any legal counsel selected by the Holders to represent them in connection with
the sale of the Registrable Securities but the Holders shall pay any and all
underwriting commissions related to the Registrable Securities. In the event of
such a proposed regis-tration, the Company shall furnish the then Holders of
outstanding Registrable Securities with not less than fifteen days written
notice prior to the proposed date of filing of such registration statement. Such
notice to the Holders shall continue to be given for each applicable
registration statement filed (during the period in which the Purchase Option is
exercisable) by the Company until such time as all of the Registrable Securities
have been registered and sold. The holders of the Registrable Securities shall
exer-cise the "piggy-back" rights provided for herein by giving written notice,
within ten days of the receipt of the Company's notice of its intention to file
a registration statement. The Company shall cause any registration statement
filed pursuant to the above "piggyback" rights to remain effective for at least
nine months from the date that the Holders of the Registrable Securities are
first given the opportunity to sell all of such securities.

            5.3     Damages. Should the registration or the effectiveness
thereof required by Sections 5.1 and 5.2 hereof be delayed by the Company or the
Company otherwise fails to comply with such provisions, the Company shall, in
addition to any other equitable or other relief available to the Holder(s), be
liable for any and all incidental, special and consequential damages sustained
by the Holder(s), including, but not limited to, the loss of any profits that
might have been received by the holder upon the sale of shares of Common Stock
or Warrants (and shares of Common Stock underlying the Warrants) underlying this
Purchase Option.

            5.4     General Terms.

                    5.4.1   Indemnification. The Company shall indemnify the
Holder(s) of the Registrable Securities to be sold pursuant to any registration
statement hereunder and each person, if any, who controls such Holders within
the meaning of Section 15 of the Act or Section 20(a) of the Securities Exchange
Act of 1934, as amended ("Exchange Act"), against all loss, claim, damage,
expense or liability (including all reasonable attorneys' fees and other
expenses reasonably incurred in investigating, preparing or defending against
litigation, commenced or threatened, or any claim whatsoever whether arising out
of any action between the underwriter and the Company or between the underwriter
and any third party or otherwise) to which any of them may become subject under
the Act, the Exchange Act or otherwise, arising from such registration statement
but only to the same extent and with the same effect as the provisions pursuant
to which the Company has agreed to indemnify the underwriters contained in
Section 5 of the Underwriting Agreement between the Company, Rodman and the
other underwriters named therein dated the Effective Date. The Holder(s) of the
Registrable Securities to be sold pursuant to such registration statement, and
their successors and assigns, shall severally, and not jointly, indemnify the
Company, its officers and directors and each person, if any, who controls the
Company within the meaning of Section 15 of the Act or Section 20(a) of the
Exchange Act, against all loss, claim, damage, expense or liability (including
all reasonable attorneys' fees and other expenses reasonably incurred in
investigating, prepar-ing or defending against any claim whatsoever) to which
they may become subject under the Act, the Exchange Act or otherwise, arising
from information furnished by or on behalf of such Holders, or their successors
or assigns, in writing, for specific inclusion in such registration statement to
the same extent and with the same effect as the provisions contained in Section
5 of the Underwriting Agreement pursuant to which the underwriters have agreed
to indemnify the Company.

                    5.4.2   Exercise of Purchase Options. Nothing contained in
this Purchase Option shall be construed as requiring the Holder(s) to exercise
their Purchase Options or Warrants underlying such Purchase Options prior to or
after the initial filing of any registration statement or the effectiveness
thereof.

                    5.4.3   Documents Delivered to Holders. The Company shall
furnish Rodman, as representative of the Holders participating in any of the
foregoing offerings, a signed counterpart, addressed to the

                                        6

participating Holders, of (i) an opinion of counsel to the Com-pany, dated the
effective date of such registration statement (and, if such registration
includes an underwritten public offer-ing, an opinion dated the date of the
closing under any under-writing agreement related thereto), and (ii) a "cold
comfort" letter dated the effective date of such registration statement (and, if
such registration includes an underwritten public offering, a letter dated the
date of the closing under the underwriting agreement) signed by the independent
public accountants who have issued a report on the Company's financial
statements included in such registration statement, in each case covering
substantially the same matters with respect to such registration statement (and
the prospectus included therein) and, in the case of such accoun-tants' letter,
with respect to events subsequent to the date of such financial statements, as
are customarily covered in opinions of issuer's counsel and in accountants'
letters delivered to underwriters in underwritten public offerings of
securities. The Company shall also deliver promptly to Rodman, as representative
of the Holders participating in the offering, the correspondence and memoranda
described below and copies of all correspondence between the Commission and the
Company, its counsel or auditors and all memoranda relating to discussions with
the Commission or its staff with respect to the registration statement and
permit Rodman, as representative of the Holders, to do such investigation, upon
reasonable advance notice, with respect to information contained in or omitted
from the registration statement as it deems reasonably necessary to comply with
applicable securities laws or rules of the National Association of Securities
Dealers, Inc. ("NASD"). Such investigation shall include access to books,
records and properties and opportunities to discuss the business of the Company
with its officers and inde-pendent auditors, all to such reasonable extent and
at such reasonable times and as often as Rodman, as representative of the
Holders, shall reasonably request. The Company shall not be required to disclose
any confidential information or other records to Rodman, as representative of
the Holders, or to any other person, until and unless such persons shall have
entered into reasonable confidentiality agreements (in form and substance
reasonably satisfactory to the Company), with the Company with respect thereto.

                    5.4.4   Underwriting Agreement. The Company shall enter into
an underwriting agreement with the managing under-writer(s), if any, selected by
any Holders whose Registrable Securities are being registered pursuant to this
Section 5, which managing underwriter shall be reasonably acceptable to the
Company. Such agreement shall be reasonably satisfactory in form and substance
to the Company, each Holder and such managing underwriters, and shall contain
such representations, warranties and covenants by the Company and such other
terms as are customarily contained in agreements of that type used by the
managing underwriter. The Holders shall be parties to any underwriting agreement
relating to an underwritten sale of their Registrable Securities and may, at
their option, require that any or all the representations, warranties and
covenants of the Company to or for the benefit of such under-writers shall also
be made to and for the benefit of such Holders. Such Holders shall not be
required to make any repre-sentations or warranties to or agreements with the
Company or the underwriters except as they may relate to such Holders and their
intended methods of distribution. Such Holders, however, shall agree to such
covenants and indemnification and contribution obligations for selling
stockholders as are customarily contained in agreements of that type used by the
managing underwriter. Further, such Holders shall execute appropriate custody
agreements and otherwise cooperate fully in the preparation of the registration
statement and other documents relating to any offering in which they include
securities pursuant to this Section 5. Each Holder shall also furnish to the
Company such information regarding itself, the Registrable Securities held by
it, and the intended method of disposition of such securities as shall be
reasonably required to effect the registration of the Registrable Securities.

                    5.4.5   Rule 144 Sale. Notwithstanding anything contained in
this Section 5 to the contrary, the Company shall have no obligation pursuant to
Sections 5.1 or 5.2 for the registration of Registrable Securities held by any
Holder (i) where such Holder would then be entitled to sell under Rule 144
within any three-month period (or such other period prescribed under Rule 144 as
may be provided by amendment thereof) all of the Registrable Securities then
held by such Holder, and (ii) where the number of Registrable Securities held by
such Holder is within the volume limitations under paragraph (e) of Rule 144
(calculated as if such Holder were an affiliate within the meaning of Rule 144).

                    5.4.6   Supplemental Prospectus. Each Holder agrees, that
upon receipt of any notice from the Company of the happening of any event as a
result of which the prospectus included in the Registration Statement, as then
in effect, includes an untrue statement of a material fact or omits 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, such Holder
will immediately discontinue disposition of Registrable Securities pursuant to
the Registration Statement covering such Registrable Securities until such
Holder's receipt of the copies of a supplemental or

                                        7

amended prospectus, and, if so desired by the Company, such Holder shall deliver
to the Company (at the expense of the Company) or destroy (and deliver to the
Company a certificate of such destruction) all copies, other than permanent file
copies then in such Holder's possession, of the prospectus covering such
Registrable Securities current at the time of receipt of such notice.

      6.    Adjustments.

            6.1     Adjustments to Exercise Price and Number of Securities. The
Exercise Price and the number of Units underlying the Purchase Option shall be
subject to adjustment from time to time as hereinafter set forth:

                    6.1.1   Stock Dividends - Split-Ups. If after the date
hereof, and subject to the provisions of Section 6.4 below, the number of
outstanding shares of Common Stock is increased by a stock dividend payable in
shares of Common Stock or by a split-up of shares of Common Stock or other
similar event, then, on the effective date thereof, the number of shares of
Common Stock underlying each of the Units purchasable hereunder shall be
increased in proportion to such increase in outstanding shares. In such case,
the number of shares of Common Stock, and the exercise price applicable thereto,
underlying the Warrants underlying each of the Units purchasable hereunder shall
be adjusted in accordance with the terms of the Warrants. For example, if the
Company declares a two-for-one stock dividend and at the time of such dividend
this Purchase Option is for the purchase of one Unit at $8.80 per whole Unit
(each Warrant underlying the Units is exercisable for $5.50 per share), upon
effectiveness of the dividend, this Purchase Option will be adjusted to allow
for the purchase of one Unit at $8.80 per Unit, each Unit entitling the holder
to receive two shares of Common Stock and two Warrants (each Warrant exercisable
for $2.75 per share).

                    6.1.2   Aggregation of Shares. If after the date hereof, and
subject to the provisions of Section 6.4, the number of outstanding shares of
Common Stock is decreased by a consolidation, combination or reclassifi-cation
of shares of Common Stock or other similar event, then, on the effective date
thereof, the number of shares of Common Stock underlying each of the Units
purchasable hereunder shall be decreased in proportion to such decrease in
outstanding shares. In such case, the number of shares of Common Stock, and the
exercise price applicable thereto, underlying the Warrants underlying each of
the Units purchasable hereunder shall be adjusted in accordance with the terms
of the Warrants.

                    6.1.3   Replacement of Securities upon Reorganization, etc.
In case of any reclassification or reorganization of the outstanding shares of
Common Stock other than a change covered by Section 6.1.1 or 6.1.2 hereof or
that solely affects the par value of such shares of Common Stock, or in the case
of any merger or consolidation of the Company with or into another corporation
(other than a consolidation or merger in which the Company is the continuing
corporation and that does not result in any reclassification or reorganization
of the outstanding shares of Common Stock), or in the case of any sale or
conveyance to another corporation or entity of the property of the Company as an
entirety or substantially as an entirety in connection with which the Company is
dissolved, the Holder of this Purchase Option shall have the right thereafter
(until the expiration of the right of exercise of this Purchase Option) to
receive upon the exercise hereof, for the same aggregate Exercise Price payable
hereunder immediately prior to such event, the kind and amount of shares of
stock or other securities or property (including cash) receivable upon such
reclassification, reorganization, merger or consolidation, or upon a dissolution
following any such sale or transfer, by a Holder of the number of shares of
Common Stock of the Company obtainable upon exercise of this Purchase Option and
the underlying Warrants immediately prior to such event; and if any
reclassification also results in a change in shares of Common Stock covered by
Section 6.1.1 or 6.1.2, then such adjustment shall be made pursuant to Sections
6.1.1, 6.1.2 and this Section 6.1.3. The provisions of this Section 6.1.3 shall
similarly apply to successive reclassifications, reorganizations, mergers or
consolidations, sales or other transfers.

                    6.1.4   Changes in Form of Purchase Option. This form of
Purchase Option need not be changed because of any change pursuant to this
Section, and Purchase Options issued after such change may state the same
Exercise Price and the same number of Units as are stated in the Purchase
Options initially issued pursuant to this Agreement. The acceptance by any
Holder of the issuance of new Purchase Options reflecting a required or
permissive change shall not be deemed to waive any rights to an adjustment
occurring after the Commencement Date or the computation thereof.

                                        8

            6.2     Substitute Purchase Option. In case of any consolidation of
the Company with, or merger of the Company with, or merger of the Company into,
another corporation (other than a consolidation or merger which does not result
in any reclassification or change of the outstanding Common Stock), the
corporation formed by such consolidation or merger shall execute and deliver to
the Holder a supplemental Purchase Option providing that the holder of each
Purchase Option then outstanding or to be outstanding shall have the right
thereafter (until the stated expiration of such Purchase Option) to receive,
upon exercise of such Purchase Option, the kind and amount of shares of stock
and other securities and prop-erty receivable upon such consolidation or merger,
by a holder of the number of shares of Common Stock of the Company for which
such Purchase Option might have been exercised immediately prior to such
consolidation, merger, sale or transfer. Such supple-mental Purchase Option
shall provide for adjustments which shall be identical to the adjustments
provided in Section 6. The above provision of this Section shall similarly apply
to succes-sive consolidations or mergers.

            6.3     Elimination of Fractional Interests. The Company shall not
be required to issue certificates representing frac-tions of shares of Common
Stock or Warrants upon the exercise of the Purchase Option, nor shall it be
required to issue scrip or pay cash in lieu of any fractional interests, it
being the intent of the parties that all fractional interests shall be
eliminated by rounding any fraction up to the nearest whole number of Warrants,
shares of Common Stock or other securities, properties or rights.

      7.    Reservation and Listing. The Company shall at all times reserve and
keep available out of its authorized shares of Common Stock, solely for the
purpose of issuance upon exercise of the Purchase Options or the Warrants
underlying the Purchase Option, such number of shares of Common Stock or other
securities, properties or rights as shall be issuable upon the exercise thereof.
The Com-pany covenants and agrees that, upon exercise of the Purchase Options
and payment of the Exercise Price therefore, all shares of Common Stock and
other securities issuable upon such exercise shall be duly and validly issued,
fully paid and non-assessable and not subject to preemptive rights of any
stockholder. The Company further covenants and agrees that upon exercise of the
Warrants underlying the Purchase Options and payment of the respective Warrant
exercise price therefore, all shares of Common Stock and other securities
issuable upon such exercise shall be duly and validly issued, fully paid and
non-assessable and not subject to preemptive rights of any stockholder. As long
as the Purchase Options shall be outstanding, the Company shall use its best
efforts to cause all (i) Units and shares of Common Stock issuable upon exercise
of the Purchase Options, (ii) Warrants issuable upon exercise of the Purchase
Options and (iii) shares of Common Stock issuable upon exercise of the Warrants
included in the Units issuable upon exercise of the Purchase Option to be listed
(subject to official notice of issuance) on all securities exchanges (or, if
applicable on the Nasdaq National Market, SmallCap Market, OTC Bulletin Board or
any successor trading market) on which the Units, the Common Stock or the Public
Warrants issued to the public in connection herewith may then be listed and/or
quoted.

      8.    Certain Notice Requirements.

            8.1     Holder's Right to Receive Notice. Nothing herein shall be
con-strued as conferring upon the Holders the right to vote or con-sent as a
stockholder for the election of directors or any other matter, or as having any
rights whatsoever as a stockholder of the Company. If, however, at any time
prior to the expiration of the Purchase Options and their exercise, any of the
events described in Section 8.2 shall occur, then, in one or more of said
events, the Company shall give written notice of such event at least fifteen
days prior to the date fixed as a record date or the date of closing the
transfer books for the determination of the stockholders entitled to such
dividend, distribution, conversion or exchange of securities or subscrip-tion
rights, or entitled to vote on such proposed dissolution, liquidation, winding
up or sale. Such notice shall specify such record date or the date of the
closing of the transfer books, as the case may be. Notwithstanding the
foregoing, the Company shall deliver to each Holder a copy of each notice given
to the other stockholders of the Company at the same time and in the same manner
that such notice is given to the stockholders.

            8.2     Events Requiring Notice. The Company shall be required to
give the notice described in this Section 8 upon one or more of the following
events: (i) if the Company shall take a record of the holders of its shares of
Common Stock for the purpose of entitling them to receive a dividend or
distribution payable otherwise than in cash, or a cash dividend or distribution
pay-able otherwise than out of retained earnings, as indicated by the accounting
treatment of such dividend or distribution on the books of the Company, or (ii)
the Company shall offer to all the holders of its Common Stock any additional
shares of capital stock of the Company or securities

                                        9

convertible into or exchange-able for shares of capital stock of the Company, or
any option, right or warrant to subscribe therefore, or (iii) a dissolution,
liquidation or winding up of the Company (other than in connec-tion with a
consolidation or merger) or a sale of all or substan-tially all of its property,
assets and business shall be proposed.

            8.3     Notice of Change in Exercise Price. The Company shall,
promptly after an event requiring a change in the Exercise Price pursuant to
Section 6 hereof, send notice to the Holders of such event and change ("Price
Notice"). The Price Notice shall describe the event causing the change and the
method of calculating same and shall be certified as being true and accurate by
the Company's President and Chief Financial Officer.

            8.4     Transmittal of Notices. All notices, requests, consents and
other communi-cations under this Purchase Option shall be in writing and shall
be deemed to have been duly made when hand delivered, or mailed by express mail
or pri-vate courier service: (i) If to the registered Holder of the Purchase
Option, to the address of such Holder as shown on the books of the Company, or
(ii) if to the Company, to the following address or to such other address as the
Company may designate by notice to the Holders:

            Vector Intersect Security Acquisition Corp.
            65 Challenger Road
            Ridgefield Park, New Jersey 07660
            Attn: Yaron Eitan, Chief Executive Officer

      9.    Miscellaneous.

            9.1     Amendments. The Company and Rodman may from time to time
supplement or amend this Purchase Option without the approval of any of the
Holders in order to cure any ambiguity, to correct or supplement any provision
contained herein that may be defective or inconsistent with any other provisions
herein, or to make any other provisions in regard to matters or questions
arising hereunder that the Company and Rodman may deem necessary or desirable
and that the Company and Rodman deem shall not adversely affect the interest of
the Holders. All other modifications or amendments shall require the written
con-sent of and be signed by the party against whom enforcement of the
modification or amendment is sought.

            9.2     Headings. The headings contained herein are for the sole
purpose of convenience of reference, and shall not in any way limit or affect
the meaning or interpretation of any of the terms or provisions of this Purchase
Option.

      10.   Entire Agreement. This Purchase Option (together with the other
agreements and documents being delivered pursuant to or in connection with this
Purchase Option) constitutes the entire agreement of the parties hereto with
respect to the subject matter hereof, and supersedes all prior agreements and
under-standings of the parties, oral and written, with respect to the subject
matter hereof.

            10.1    Binding Effect. This Purchase Option shall inure solely to
the benefit of and shall be binding upon, the Holder and the Company and their
permitted assignees, respective succes-sors, legal representatives and assigns,
and no other person shall have or be construed to have any legal or equitable
right, remedy or claim under or in respect of or by virtue of this Purchase
Option or any provisions herein contained.

            10.2    Governing Law; Submission to Jurisdiction. This Purchase
Option shall be governed by and construed and enforced in accor-dance with the
laws of the State of New York, without giving effect to conflicts of law
principles that would result in the application of the substantive laws of
another jurisdiction. The Company hereby agrees that any action, proceeding or
claim against it arising out of, or relating in any way to this Purchase Option
shall be brought and enforced in the courts of the State of New York or of the
United States of America for the Southern District of New York, and irrevocably
submits to such jurisdiction, which jurisdiction shall be exclu-sive. The
Company hereby waives any objection to such exclusive jurisdiction and that such
courts represent an inconvenient forum. Any process or summons to be served upon
the Company may be served by transmitting a copy thereof by registered or
certified mail, return receipt requested, postage prepaid, addressed to it at
the address set forth in Section 8 hereof. Such mailing shall be deemed personal
service and shall be legal and binding upon the Company in any action,
proceeding or claim. The Company and the Holder agree that the pre-vailing
party(ies) in any such action shall be entitled to recover from the other
party(ies) all of its reasonable attor-neys' fees and

                                       10

expenses relating to such action or proceeding and/or incurred in connection
with the preparation therefore.

            10.3    Waiver, etc. The failure of the Company or the Holder to at
any time enforce any of the provisions of this Purchase Option shall not be
deemed or construed to be a waiver of any such provision, nor to in any way
affect the validity of this Purchase Option or any provision hereof or the right
of the Company or any Holder to thereafter enforce each and every provision of
this Purchase Option. No waiver of any breach, non-compliance or non-fulfillment
of any of the provisions of this Purchase Option shall be effective unless set
forth in a written instrument executed by the party or parties against whom or
which enforcement of such waiver is sought; and no waiver of any such breach,
non-compliance or non-fulfillment shall be construed or deemed to be a waiver of
any other or subsequent breach, non-compliance or non-fulfillment.

            10.4    Execution in Counterparts. This Purchase Option may be
executed in one or more counterparts, and by the different parties hereto in
separate counterparts, each of which shall be deemed to be an original, but all
of which taken together shall constitute one and the same agreement, and shall
become effective when one or more counterparts has been signed by each of the
parties hereto and delivered to each of the other parties hereto.

            10.5    Exchange Agreement. As a condition of the Holder's receipt
and acceptance of this Purchase Option, Holder agrees that, at any time prior to
the complete exercise of this Purchase Option by Holder, if the Company and
Rodman enter into an agreement ("Exchange Agreement") pursuant to which they
agree that all outstanding Purchase Options will be exchanged for securities or
cash or a combination of both, then Holder shall agree to such exchange and
become a party to the Exchange Agreement.

            10.6    Underlying Warrants. At any time after exercise by the
Holder of this Purchase Option, the Holder may exchange his Warrants (with a
$5.50 exercise price) for Public Warrants (with a $5.00 exercise price) upon
payment to the Company of the difference between the exercise price of his
Warrant and the exercise price of the Public Warrants.

      IN WITNESS WHEREOF, the Company has caused this Pur-chase Option to be
signed by its duly authorized officer as of the ______day of ___________, 2006.

                    VECTOR INTERSECT SECURITY ACQUISITION CORP.

                    By: _______________________________________________
                            Name:  Yaron Eitan
                            Title: Chief Executive Officer

                                       11

Form to be used to exercise Purchase Option:

Vector Intersect Security Acquisition Corp.
65 Challenger Road
Ridgefield Park, New Jersey 07660
Attn: Yaron Eitan, Chief Executive Officer

Date: _______________, 200_

The undersigned hereby elects irrevocably to exercise all or a portion of the
within Purchase Option and to purchase _____Units of Vector Intersect Security
Acquisition Corporation and hereby makes payment of $ ________(at the rate of
$8.80 per Unit) in payment of the Exercise Price pursuant thereto. Please issue
the Common Stock and Warrants as to which this Purchase Option is exercised in
accordance with the instructions given below.

or

The undersigned hereby elects irrevocably to convert its right to purchase
_______Units purchasable under the within Purchase Option by surrender of the
unexercised portion of the attached Purchase Option (with a "Value" based of $
_______based on a "Market Price" of $ ________). Please issue the securities
comprising the Units as to which this Purchase Option is exercised in accordance
with the instructions given below.

                            Signature
                            Signature Guaranteed

INSTRUCTIONS FOR REGISTRATION OF SECURITIES

                    Name
                               (Print in Block Letters)
                    Address

NOTICE: THE SIGNATURE TO THIS FORM MUST CORRESPOND WITH THE NAME AS WRITTEN UPON
THE FACE OF THE WITHIN PURCHASE OPTION IN EVERY PARTICULAR WITHOUT ALTER-ATION
OR ENLARGEMENT OR ANY CHANGE WHATSOEVER, AND MUST BE GUAR-ANTEED BY A BANK,
OTHER THAN A SAVINGS BANK, OR BY A TRUST COMPANY OR BY A FIRM HAVING MEMBERSHIP
ON A REGISTERED NATIONAL SECURITIES EXCHANGE.

                                       12

Form to be used to assign Purchase Option:

ASSIGNMENT

(To be executed by the registered Holder to effect a transfer of the within
Purchase Option):

FOR VALUE RECEIVED, _____________________________________does hereby sell,
assign and transfer unto _____________________________________the right to
purchase ________Units of Vector Intersect Security Acquisition Corp..
("Company") evidenced by the within Purchase Option and does hereby authorize
the Company to transfer such right on the books of the Company.

Dated: ______________, 200_

                            Signature
                            Signature Guaranteed

NOTICE: THE SIGNATURE TO THIS FORM MUST CORRESPOND WITH THE NAME AS WRITTEN UPON
THE FACE OF THE WITHIN PURCHASE OPTION IN EVERY PARTICULAR WITHOUT ALTER-ATION
OR ENLARGEMENT OR ANY CHANGE WHATSOEVER, AND MUST BE GUAR-ANTEED BY A BANK,
OTHER THAN A SAVINGS BANK, OR BY A TRUST COMPANY OR BY A FIRM HAVING MEMBERSHIP
ON A REGISTERED NATIONAL SECURITIES EXCHANGE.

                                       13

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