Confidential treatment has been requested for portions of this exhibit. The copy
filed  herewith  omits  the  information  subject  to a confidentiality request.
Omissions  are  designated  ******. A complete version of this exhibit has been
filed  separately  with  the  Securities  and  Exchange  Commission.


                                 ATTACHMENT A-1

           NASA HUMAN & ROBOTICS TECHNOLOGY SMALL TUG PROGRAM PHASE I
                  STATEMENT OF WORK FOR SPACEDEV SPACECRAFT BUS

                       Contract #: N0405-SC-NNM05AAS92C-01
                              DATED: JUNE 27, 2005


                                      PAGE

Confidential treatment has been requested for portions of this exhibit. The copy
filed  herewith  omits  the  information  subject  to a confidentiality request.
Omissions  are  designated  ******. A complete version of this exhibit has been
filed  separately  with  the  Securities  and  Exchange  Commission.

      PROP-IS-DC-05-6777     SpaceDev H&RT SmallTug Phase I SOW     June 6, 2005


                                 ANDREWS SPACE, INC. BUSINESS PROPRIETARY     ii


                           SPACEDEV STATEMENT OF WORK
                             SmallTug Spacecraft Bus

                            Reviewed and Accepted by:

                      /S/: KEITH BEALS              29 JUNE 05
                      ----------------              ----------
                                                          Date
                     /S/: ERIC WETZEL                  6/27/05
                      ----------------              ----------
                                                          Date


                                      PAGE

                                TABLE OF CONTENTS

     1     INTRODUCTION                                      1
     2     SCOPE                                             1
     3     PROGRAM  SCHEDULE  MILESTONES                     1
     4     GENERAL  REQUIREMENTS                             1
           4.1     PROGRAM  DIRECTION                        1
           4.2     SCHEDULE                                  2
           4.3     STATUS  REPORTING                         2
                   4.3.1     Weekly  teleconference          2
                   4.3.2     Data  availability              2
                   4.3.3     Data  format                    2
                   4.3.4     Periodic  meetings              2
                   4.3.5     Travel                          2
     5     STUDY  TASKS                                      2
     6     STUDY  DELIVERABLES                               4


                                      PAGE

      PROP-IS-DC-05-6777     SpaceDev H&RT SmallTug Phase I SOW     June 6, 2005

Confidential treatment has been requested for portions of this exhibit. The copy
filed  herewith  omits  the  information  subject  to a confidentiality request.
Omissions  are  designated  ******. A complete version of this exhibit has been
filed  separately  with  the  Securities  and  Exchange  Commission.

1     INTRODUCTION

The  Human  and  Robotic  Technology (HR&T) program administered by the National
Aeronautics  and  Space Administration (NASA) explores new space technologies in
support  of  our  nation's  Vision  of  Space Exploration. The SmallTug CisLunar
Flight  Experiment  (SmallTug)  is  one  of  the  first  experiments of the HR&T
program.

To  realize  the Nation's Vision of Space Exploration, sustainable and efficient
transportation  architecture  will be required.  As identified by NASA's Level 0
Requirements,  separation  of  cargo  and  crew  transport will be a fundamental
characteristic  of  the  transportation  architecture.  Recent  advances  in the
analysis  and  design of multi-body (n-body) trajectories indicate the potential
for  delta  v savings [******]. As one component of the architecture,  dedicated
tugs can utilize these advanced trajectories for highly efficient cargo transfer
along  periodic  (repeating  trajectories.  Another  factor  in  low  cost cargo
transport  is  safe,  reliable,  yet  affordable production of large power using
photo-voltaic  arrays.

[******]

[******]

The  SmallTug  program  is  divided  into  two  phases.  [******]

2     SCOPE

This SOW describes the tasks to be performed and the products to be delivered by
SpaceDev  as  subcontractor  to  Andrews  Space for Phase I of the H&RT SmallTug
program.  The  duration  of  Phase  I  is  April 2005 through March 2006.    The
objective  of Phase I is to successfully complete a Preliminary Design Review as
the  basis  for  continuation  to  detailed  design  and  production.

3     PROGRAM  SCHEDULE  MILESTONES
Andrews Space's authority to proceed (ATP) on the H&RT SmallTug (Phase I period)
study  is  April  14,  2005.  Key  program  milestones  are:

-     Kickoff  meeting-[******]

-     Quarterly  Review  #1,  [******]

-     Quarterly  Review  #2,  [******]

-     Project  Continuation  Review,  [******]

-     Preliminary  Design  Review,  [******]

4     GENERAL  REQUIREMENTS

4.1     PROGRAM  DIRECTION

Andrews Space will be the sole source of program direction to SpaceDev.  Program
direction  includes,  but  is  not  limited  to,  issues  relating to contracts,
schedule  and  technical  requirements.

                    ANDREWS SPACE, INC. BUSINESS PROPRIETARY
                                        1
                                      PAGE

      PROP-IS-DC-05-6777     SpaceDev H&RT SmallTug Phase I SOW     June 6, 2005

Confidential treatment has been requested for portions of this exhibit. The copy
filed  herewith  omits  the  information  subject  to a confidentiality request.
Omissions  are  designated  ******. A complete version of this exhibit has been
filed  separately  with  the  Securities  and  Exchange  Commission.

4.2     SCHEDULE

SpaceDev  shall  deliver  the  products  identified  in  this SOW (Section 6) in
accordance with the Program Schedule Milestones listed in Section 3. Contractual
deliverables  shall  be  submitted 2 weeks prior to associated Program Scheduled
Milestones  to  facilitate  integration,  iteration  and Andrews Space requested
updates.

4.3     STATUS  REPORTING

SpaceDev  shall provide a monthly status report to Andrews Space.  These reports
will  provide  technical  status,  schedule  status, and cost expenditures.  The
monthly  reports  are  due  on  the  5th  of  each month.     A baseline program
schedule and budget shall be provided in the first month's report.  In addition,
cost  expenditure  reports  shall  be  provided  two weeks following the monthly
report  to  facilitate  program  tracking.  These  interim  cost  reports may be
estimated.

4.3.1     WEEKLY  TELECONFERENCE

SpaceDev  shall  support  weekly  Andrews  Space  CE&R  telecoms.

4.3.2     DATA  AVAILABILITY

SpaceDev  shall  utilize  Andrews  Space's  web  based [******] data  management
system  for the transfer of information.  Andrews Space will make account access
available  to  SpaceDev.

4.3.3     DATA  FORMAT

SpaceDev shall provide data in native file format as appropriate (e.g., MS Word,
MS  PowerPoint,  MS  Excel,  CAD  files  such  as  ProE  or  .igs format, etc.).
SpaceDev  shall  respond to communication from Andrews Space in a timely manner.

4.3.4     PERIODIC  MEETINGS

SpaceDev  shall  support  the  meetings  listed  in  Section 3, Program Schedule
Milestones.  The  scope  of the meeting support is in accordance with Section 5,
Study  Support  Tasks.

4.3.5     TRAVEL

SpaceDev shall provide [******] personnel to travel in support of the 4 reviews
listed  in  Section  3.0.  for  a  one  day  duration  for  each  meeting

5     STUDY  TASKS

The  following  tasks  are  to  be performed during the Phase I period.  The WBS
levels  are defined for cost reporting purposes.  The tasks included in each WBS
are  listed

 WBS  1.1  MILESTONES  AND  REVIEWS
-----------------------------------
     -Support  program  review  meetings  as  listed  in  Section  3.

     -Provide  inputs to Andrews Space for the program reviews listed in Section
     3.

WBS  1.2  PROGRAM  MANAGEMENT
-----------------------------
                    ANDREWS SPACE, INC. BUSINESS PROPRIETARY
                                        2
                                      PAGE

      PROP-IS-DC-05-6777     SpaceDev H&RT SmallTug Phase I SOW     June 6, 2005

Confidential treatment has been requested for portions of this exhibit. The copy
filed  herewith  omits  the  information  subject  to a confidentiality request.
Omissions  are  designated  ******. A complete version of this exhibit has been
filed  separately  with  the  Securities  and  Exchange  Commission.

PROGRAM  DELIVERABLES

     -Prepare  monthly  technical progress and financial reports per Section 4.3
     and  conduct  quarterly  management  reviews  with  Andrews  Space.

COST  ASSESSMENT  [******]

     -Provide  planning  input  and  cost  estimates  for  Phase  II  effort.

WBS  2.1  SYSTEMS  ENGINEERING  MANAGEMENT
------------------------------------------

CONFIGURATION  AND  DATA  MANAGEMENT  (AS  REQUIRED,  CONCEPT  BASELINE  TO  BE
UPDATED/ESTABLISHED  [******])

     -Participate  in Andrews Space configuration management process, provide SC
     bus  configuration data for inclusion in system, and participate in control
     board  discussions

MASS  PROPERTIES  [******]

     -Provide SC bus mass properties input to Andrews Space, participate in mass
     properties  management  process  (e.g.,  define  weight  growth allowances,
     define/implement  weight  trades)

RISK  ANALYSIS  &  MANAGEMENT  [******]

     -Provide  input  to Andrews Space program risk analysis process (e.g., risk
     list  inputs,  recommended  steps  to  address)

WBS  2.2  SYSTEM  REQUIREMENTS  DEFINITION:
-------------------------------------------

SYSTEM  REQUIREMENTS  DOCUMENT  (SRD)  [******]

     -  Review/comment  on  the  following  specifications  and provide input as
     appropriate  (Andrews is lead in drafting and controlling these documents):
          System  Performance  Specification
          Spacecraft  Specification
          Avionics/GN&C/CD&H  Subsystem  Specification
          Propulsion  Subsystem  Specification
          Mechanical  Subsystem  Specification  (structure, thermal management,
             mechanisms,  LV  interface,  etc.)
          Communications  Subsystem  Specification
          Software  Specification
          Preliminary  Component  Specifications  [******]

 ENVIRONMENTS  SPECIFICATION  [******]

     -Review/comment  on  System  Environments  Specification

 INTERFACE  CONTROL  DOCUMENTS  (ICD)  [******]

                    ANDREWS SPACE, INC. BUSINESS PROPRIETARY
                                        3
                                      PAGE

      PROP-IS-DC-05-6777     SpaceDev H&RT SmallTug Phase I SOW     June 6, 2005

Confidential treatment has been requested for portions of this exhibit. The copy
filed  herewith  omits  the  information  subject  to a confidentiality request.
Omissions  are  designated  ******. A complete version of this exhibit has been
filed  separately  with  the  Securities  and  Exchange  Commission.

     -Draft  Spacecraft-to-LV  and  intra-spacecraft  ICD's

WBS  3.2  CONFIGURATION  DEVELOPMENT  AND  VEHICLE  DESIGN
----------------------------------------------------------

FAILURE  MODE  AND  EFFECTS  ANALYSIS  (FMEA)  [******]

     -Review  and  comment on the preliminary FMEA analysis developed by Andrews
     Space.  SPACECRAFT  BUS  CONCEPT  DESIGN  [******]

     -Conduct  concept  design  trades  and  analyses  [******].

     -Provide  recommended  concept  configuration  [******]

     -Provide  top  level  trade  summaries  [******].

     -Provide  initial  concept  budgets  [******].

     -Provide  CAD  models  [******]

SPACECRAFT  PRELIMINARY  DESIGN  [******]

     -Conduct  preliminary  design  of  the  spacecraft  bus,  [******].

     -Perform  preliminary structural and thermal analyses of preliminary design

     -Provide  design  data/models  of  preliminary  design

     -Provide  system  schematics

     -Provide  preliminary  design  budgets  [******]

     -Provide  requirements  assessment  results  [******]

     -Provide  CAD  models  [******]

     -Provide  definition  of  software  architecture  and  design  approach

WBS  3.3  SYSTEM  PLANNING
--------------------------

OPERATIONS  PLAN  [******]

     -Review  and  comment  on  Andrews  Space's  Operation Plan DEVELOPMENT AND
     INTEGRATION  PLAN  [******]

     -Provide  input  to preliminary Small Tug Development and Integration Plan,
     to  include  all Phase II and onwards design and development activities for
     the  spacecraft  bus  (e.g.,  project  schedule,  long  lead,
     assembly/integration/verification  plans)

6     STUDY  DELIVERABLES

The  following table summarizes the program deliverables described in Section 5.

                    ANDREWS SPACE, INC. BUSINESS PROPRIETARY
                                        4
                                      PAGE

      PROP-IS-DC-05-6777     SpaceDev H&RT SmallTug Phase I SOW     June 6, 2005

Confidential treatment has been requested for portions of this exhibit. The copy
filed  herewith  omits  the  information  subject  to a confidentiality request.
Omissions  are  designated  ******. A complete version of this exhibit has been
filed  separately  with  the  Securities  and  Exchange  Commission.

                     TABLE 6-1. PHASE I PROGRAM DELIVERABLES
<TABLE>
<CAPTION>




<S>                                       <C>                                           <C>

Item . . . . . . . . . . . . . . . .      Description . . . . . . . . . . . . . . .     Due Date
-------------------------------------     -----------------------------------------     ------------------
Major Review                              Presentation material for two quarterly           2 weeks prior
Documentation                             reviews, program continuation review,                  to review
                                          and PDR
-------------------------------------     -----------------------------------------     ------------------
Monthly Cost and                          Provide technical status, schedule status,                5th of
Status Reports.                           and cost expenditures                                each month.

Item . . . . . . . . . . . . . . . .      Description . . . . . . . . . . . . . . .     Due Date
-------------------------------------     -----------------------------------------     ------------------
Cost Assessment                           Phase II spacecraft bus program cost estimates          [******]
-------------------------------------     -----------------------------------------     ------------------
Mass Properties Input                     Spacecraft bus mass properties input                    [******]
                                                                                            Update monthly
-------------------------------------     -----------------------------------------     ------------------
Risk Management Plan Inputs               Provide risk list inputs on the spacecraft bus          [******]
                                                                                            update 2 weeks
                                                                                                  prior to
                                                                                            major reviews.
-------------------------------------     -----------------------------------------     ------------------
Requirements Input                        Provide input to SRD on the spacecraft bus              [******]
-------------------------------------     -----------------------------------------     ------------------
Environmental Spec. Comments              Review/comment on Environmental Spec.                   [******]
-------------------------------------     -----------------------------------------     ------------------
ICD's                                     Draft SC to LV and intra-SC ICD's                       [******]
-------------------------------------     -----------------------------------------     ------------------
FMEA Comments                             Review/comment on Andrews FMEA                          [******]
-------------------------------------     -----------------------------------------     ------------------
Concept Design Data                       Recommended concept bus design, top level               [******]
                                          trade summaries, concept resource budgets
-------------------------------------     -----------------------------------------     ------------------
Preliminary Design Data                   Preliminary bus design, preliminary                     [******]
                                          structural/thermal analysis results,
                                          bus system schematics, preliminary resource
                                          budgets, preliminary SW architecture/
                                          development plan.
-------------------------------------     -----------------------------------------     ------------------
Development  and Integration Plan         Spacecraft bus development and integration              [******]
                                           plan  for  Phase  II  effort.
-------------------------------------     -----------------------------------------     ------------------

</TABLE>

                    ANDREWS SPACE, INC. BUSINESS PROPRIETARY
                                        5
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