|   |   | **Exhibit 10.54**                                              |
|--------|--------|----------------------------------------------------------------|
|   |   | *****Text Omitted and Filed  Separately**                      |
|   |   | **Confidential Treatment Requested**                           |
|   |   | **Under 17 C.F.R. §§ 200.80(b)(4),  and 240.24b-2.** |
|   |   | Delivery Order DTFA01-02-23002(rev.2)                          |
|   |   | Contract DTFA01-02-C-00023                                     |

 

DELIVERY ORDER DO#2 (rev. 2)

Under Contract No. DTFA01-02-C-00023

 

The purpose ofthis Delivery Order is to order 100 Explosives Detection Systems (EDS),establish a delivery schedule for the 100 units and order 300 parts kits knownas long lead time items and to order the TDP and manufacture ramp-up, inaccordance with Contract number DTFA01-02-C-00023.  Items authorized under this Delivery Order are prescribed herein.

 

1.                Section B

 

The Contractorshall provide the following supplies and services in accordance with the termsand conditions of this letter contract. The following line item(s) will be ordered in accordance with thecontract amounts set forth below.

 
| **CLIN** |   | **TITLE**                                                                                                                       |       | **QUANTITY**          |   | **UNIT PRICE**          |       |   | **TOTAL**             |       |
|----------|--------|---------------------------------------------------------------------------------------------------------------------------------|------------|-----------------------|--------|-------------------------|------------|--------|-----------------------|------------|
| RF-01    |   | EDS Products Royalty Fee                                                                                                        |       | **[...***...]** |   | **[...***...]**   |       |   | **[...***...]** |       |
| RF-01-25 |   | EDS Products  Royalty Fee (CTX 2500)                                                                                            |       | **[...***...]** |   | $ **[...***...]** | ** ** |   | **[...***...]** | ** ** |
| RF-01-55 |   | EDS Products  Royalty Fee (CTX 5500DS)                                                                                          | ** ** | **[...***...]** |   | $ **[...***...]** | ** ** |   | **[...***...]** | ** ** |
| RF-0 I B |   | Technical Data  Package (TDP)  Facilitation and factory training                                                                |       | **[...***...]** |   | $ **[...***...]** |       | $      | **[...***...]** |       |
| RU-01    |   | Manufacture Ramp  Up                                                                                                            | ** ** | **[...***...]** |   | $ **[...***...]** |       | $      | **[...***...]** |       |
| 00A1A    |   | Parts Kits for  SA EDS Unit (CTX-2500)  w/powered incline conveyor and baggage  exit slide/conveyor                             |       | **[...***...]** |   | $ **[...***...]** |       | $      | **[...***...]** |       |
| 0001A    |   | Pass Through SA  EDS Unit (CTX-2500)  w/powered incline conveyor and baggage  exit slide/conveyor (Units **[...***...]**) |       | **[...***...]** |   | $ **[...***...]** |       | $      | **[...***...]** |       |
| 00A6A    |   | Parts Kits for  SA EDS Unit (CTX-5500)  w/powered incline conveyor and baggage  exit slide/conveyor                             |       | **[...***...]** |   | $ **[...***...]** |       | $      | **[...***...]** |       |
| 0006A    |   | Pass Through SA EDS  Unit (CTX-5500  w/powered incline conveyor and baggage  exit slide/conveyor (Units **[...***...]**)  |       | **[...***...]** |   | $ **[...***...]** |       | $      | **[...***...]** |       |
|     |   | **TOTAL  ORDERED**                                                                                                              |       |                  |   |                    |       | $      |  192,800,000     |       |

 

 

TBD: To BeDetermined at contract definitization.

 

2.                Funding:  Funding in the amount of $192,800,000 ishereby authorized under this Delivery Order, under the provisions set forthbelow:

 

3.2.4-22Limitation of Government Liability (April 1996)

 

(a)           In performing thiscontract, the Contractor is not authorized to make expenditures or incurobligations exceeding $192,800,000 dollars.

 

(b)          The maximum amount forwhich the Government shall be liable if this contract is terminated is$192,800,000 dollars.

 

(End of clause)

 

Expenditures abovethat amount are not authorized, and are at InVision’s own risk.

 

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***Confidential Treatment Requested**

 

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3.                SectionC

 

The Contractorshall deliver the supplies and services associated with the above CLINs inaccordance with the Statement of Work in Contract DTFA01-02-C-00023.

 

4.                SectionF

 

The CLINS are tobe delivered to the following locations:

 
| **ITEM   NO.** |   | **SUPPLY/SERVICE**                                                                                        |       | **QTY**                   |   | **DATE OF  DELIVERY**    |       | **PLACE OF  DELIVERY** |   | **PLACE OF  ACCEPTANCE** |   |
|----------------|--------|-----------------------------------------------------------------------------------------------------------|------------|---------------------------|--------|--------------------------|------------|------------------------|--------|--------------------------|--------|
| RF-01B         |   | TDP License                                                                                               |       | **[...*******...]** |   | By **[...***...]** |       | **[...***...]**  |   | **[...***...]**    |   |
| 0001A          |   | Pass Through SA  EDS  Unit (CTX-2500) w/   powered inclined conveyor   and baggage exit slide/conveyor    |       | **[...***...]**     |   | By **[...***...]** | ** ** | **[...***...]**  |   | FOB ORIGIN               |   |
| 0001A          |   | Pass Through SA  EDS   Unit (CTX-2500) w/   powered inclined conveyor   and baggage exit slide/conveyor   |       | **[...***...]**     |   | By **[...***...]** | ** ** | **[...***...]**  |   | FOB ORIGIN               |   |
| 0001A          |   | Pass Through SA  EDS   Unit (CTX-2500) w/   powered inclined conveyor   and baggage exit   slide/conveyor |       | **[...***...]**     |   | By **[...***...]** | ** ** | **[...***...]**  |   | FOB ORIGIN               |   |
| 0001A          |   | Pass Through SA  EDS   Unit (CTX-2500) w/   powered inclined conveyor   and baggage exit   slide/conveyor |       | **[...***...]**     |   | By **[...***...]** | ** ** | **[...***...]**  |   | FOB ORIGIN               |   |
| 0001A          |   | Pass Through SA  EDS   Unit (CTX-2500) w/   powered inclined conveyor   and baggage exit   slide/conveyor |       | **[...***...]**     |   | By **[...***...]** | ** ** | **[...***...]**  |   | FOB ORIGIN               |   |
| 0001A          |   | Pass Through SA  EDS   Unit (CTX-2500) w/   powered inclined conveyor   and baggage   exit slide/conveyor |       | **[...***...]**     |   | By **[...***...]** | ** ** | **[...***...]**  |   | FOB ORIGIN               |   |
| 0001A          |   | Total Production  Units                                                                                   | ** ** | **[...***...]**     |   |                     |       |                   |   |                     |   |
| 0006A          |   | Pass Through SA  EDS   Unit (CTX-5500)   w/powered incline   conveyor and baggage   exit slide/conveyor   |       | **[...***...]**     |   | By **[...***...]** | ** ** | **[...***...]**  |   | FOB ORIGIN               |   |
| 0006A          |   | Pass Through SA  EDS   Unit (CTX-5500)   w/powered incline   conveyor and baggage exit slide/conveyor     |       | **[...***...]**     |   | By **[...***...]** | ** ** | **[...***...]**  |   | FOB ORIGIN               |   |
| 0006A          |   | Pass Through SA  EDS   Unit (CTX-5500)   w/powered incline                                                |       |                      |   |                     |       |                   |   |                     |   |
|           |   | conveyor and  baggage   exit slide/conveyor                                                               |       | **[...***...]**     |   | By **[...***...]** | ** ** | **[...***...]**  |   | FOB ORIGIN               |   |
| 0006A          |   | Pass Through SA  EDS   Unit (CTX-5500)   w/powered incline   conveyor and baggage exit   slide/conveyor   |       | **[...***...]**     |   | By **[...***...]** | ** ** | **[...***...]**  |   | FOB ORIGIN               |   |
| 0006A          |   | Total Production  Units                                                                                   | ** ** | **[...***...]**     |   |                     |       |                   |   |                     |   |

 

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***Confidential Treatment Requested**

 

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b.  Period of Delivery

 

The period ofdelivery for this order is from the date of award through December 31,2002.

 

5.                Section G

 

a)  The following administration data applies tothis order:

 

Contracting Office

 

Transportation Security Administration

John J. Handrahan

590 Herndon Parkway

Suite 120

Herndon, VA 20170

Telephone (703) 796-7125

Fax (707) 707-5675

 

ContractingOfficer’s Technical Representative (COTR

 

Transportation Security Administration

Keith Goll

590 Herndon Parkway, Suite 120

Herndon, VA 20170-5232

Telephone (703) 796-7103

Fax (703) 707-5675

 

QualityReliability Officer (QRO

 

Federal Aviation Administration

Quality Reliability Officer (QRO)

Lindsey Humphrey, ASLJ-200

7151 Gateway Boulevard

Newark, CA 94560

Telephone (510) 739-2516

Fax (510) 739-6400

 

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b.             This Delivery Order is funded inthe amount of $192,800,000.  This amountis considered the contract ceiling. Unless modified by the Contracting Officer in writing, the Contractormay not exceed this ceiling except at its own risk (see clause in ContractingOfficer’s letter dated February 19, 2002 – Limitationof Government Liability (Apr 1996)

 

c.             The Contractor shall submit to theFAA Contracting Officer the serial numbers/ID numbers for each system deliveredunder this Delivery Order, at least one week prior to, but no later than,delivery of the system.

 

6.  Section H - Special Terms and Conditions

 

The followingterms apply to this Delivery Order, number DTFA0 1702-23002 only.

 

(1)           Payment Terms:

 

For CLIN 0001A,0006A Production Units.

 

For units 1through 100:

 

Up to 40% of theCLIN price at the time of order, but not to exceed the actual costs of longlead items.

 

70% of the CLINprice at satisfactory completion of Factory Acceptance Test (minus anypreviously paid long-lead items). Satisfactory completion includes a signed form FAA-256, InspectionReport of Material and/or Services.

 

30% of the CLINprice at satisfactory completion of Site Acceptance Test, or 20% uponsatisfactory completion of the Site Acceptance Test if the contractor isresponsible for training, but not later than 90 days after successfulcompletion of the Factory Acceptance Test. Satisfactory completion includes a signed form FAA-256, InspectionReport of Material and/or Services.

 

10% of the CLINprice when the unit is fully operational, i.e., at the completion of InitialOperator Training, if the contractor is responsible for training.

 

For CLIN 00A1A,00A6A Production Units.

 

InVision willsubmit a request for payment / invoice for actual costs incurred consistentwith the quantities identified in Delivery Order #2.

 

END OF DELIVERY ORDER

 

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