Document:

<PAGE>

                                                                    EXHIBIT 10.1
<TABLE>
------------------------------------------------------------------------------------------------------------------------------------
                    ORDER FOR SUPPLIES OR SERVICES                                                                      PAGE 1 OF 10
------------------------------------------------------------------------------------------------------------------------------------
<S>                         <C>                            <C>                        <C>                          <C>
1. CONTRACT/PURCH.ORDER/        2. DELIVERY ORDER/ CALL NO.   3. DATE OF ORDER/CALL   4. REQ./ PURCH. REQUEST NO.  5. PRIORITY
   AGREEMENT NO.
DAAD17-01-D-0006                0002                             2002May21             W71B7J-2133-H241
------------------------------------------------------------------------------------------------------------------------------------
6. ISSUED BY                CODE W71B7J                    7. ADMINISTERED BY              CODE S0513A

US ARMY ROBERT MORRIS ACQUISITION CENTER                   DCM - SANTA ANA
RMAC - ADELPHI                                             34 CIVIC CENTER PLAZA                                   8. DELIVERY FOB
2800 POWDER MILL ROAD                                      P.O. BOX C-12700
AMSSB-ACA                                                  SANTA ANA CA  92712-2700                                [X] DEST
ADELPHI MD  20783-1197                                                                                             [ ] OTHER
                                                                                                                   (See Schedule
                                                                                                                    if other)
------------------------------------------------------------------------------------------------------------------------------------
9. CONTRACTOR               CODE 54266                      FACILITY     10. DELIVER TO FOB POINT BY (Date)  11. MARK IF BUSINESS IS
                                                                                     SEE SCHEDULE                  [X] SMALL
IRVINE SENSORS CORPORATION                                               ----------------------------------------  [ ] SMALL
DARYL SMETANA                                                            12. DISCOUNT TERMS                            DISADVANTAGED
3001 RED HILL AVENUE BLDG 4                                              NET 30 DAYS                               [ ] WOMEN-OWNED
COSTA MESA CA  92626                                                     -----------------------------------------------------------
                                                                         13. MAIL INVOICES TO THE ADDRESS IN BLOCK

                                                                         See Item 15
------------------------------------------------------------------------------------------------------------------------------------
14. SHIP TO                 CODE W71B7J                    15. PAYMENT WILL BE MADE BY    CODE HQ0339

US ARMY RESEARCH LABORATORY                                DFAS - COLUMBUS CENTER                                      MARK ALL
VINCENT MARINELLI / AMSRL-SE-SS                            DFAS-CO/WEST ENTITLEMENT OPERATIONS                       PACKAGES AND
2800 POWDER MILL ROAD                                      P.O. BOX 182381                                           PAPERS WITH
ADELPHI MD  20783-1197                                     COLUMBUS OH  43218-2381                                  IDENTIFICATION
                                                                                                                      NUMBERS IN
                                                                                                                    BLOCKS 1 AND 2.

------------------------------------------------------------------------------------------------------------------------------------
16.    DELIVERY/  [X]       This delivery order/call is issued on another Govt. agency or in accordance with and subject to
TYPE   CALL                 terms and conditions of above numbered contract.
OF     -----------------------------------------------------------------------------------------------------------------------------
ORDER  PURCHASE   [ ]           Reference your quote dated                          Furnish the following on terms specified herein.
                            --------------------------------------------------------------------------------------------------------
                                ACCEPTANCE. THE CONTRACTOR HEREBY ACCEPTS THE OFFER REPRESENTED BY THE NUMBERED PURCHASE ORDER AS IT
                                MAY PREVIOUSLY HAVE BEEN OR IS NOW MODIFIED, SUBJECT TO ALL OF THE TERMS AND CONDITIONS SET FORTH,
                                AND AGREES TO PERFORM THE SAME.

IRVINE SENSORS CORPORATION     /s/ John C. Carson              John C. Carson, President                           May 21, 2002
------------------------------------------------------------------------------------------------------------------------------------
NAME OF CONTRACTOR                  SIGNATURE                     TYPED NAME AND TITLE                              DATE SIGNED
                                                                                                                    (YYYYMMMDD)

[ ] If this box is marked, supplier must sign Acceptance and return the following number of copies:
------------------------------------------------------------------------------------------------------------------------------------
17. ACCOUNTING AND APPROPRIATION DATA/LOCAL USE

    See Schedule
------------------------------------------------------------------------------------------------------------------------------------
18. ITEM NO.                    19. SCHEDULE OF SUPPLIES/SERVICES               20. QUANTITY    21. UNIT  22. UNIT PRICE   23.AMOUNT
                                                                                    ORDERED/
                                                                                    ACCEPTED*
------------------------------------------------------------------------------------------------------------------------------------
                               SEE SCHEDULE
------------------------------------------------------------------------------------------------------------------------------------
* If quantity accepted by the Government is same as           24. UNITED STATES OF AMERICA                25. TOTAL     $ 635,560.00
quantity ordered, indicate by X.  If different, enter actual  /s/ Lee A. Hess                             --------------------------
quantity accepted below quantity ordered and encircle         BY: LEE A. HESS   CONTRACTING / ORDERING    29.
                                                                                OFFICER                   DIFFERENCES
------------------------------------------------------------------------------------------------------------------------------------
26. QUANTITY IN COLUMN 20 HAS BEEN                            27. SHIP NO.            28. DO VOUCHER NO.  30.
[ ] INSPECTED  [ ] RECEIVED  [ ] ACCEPTED, AND CONFORMS TO                                                INITIALS
                                THE CONTRACT EXCEPT AS NOTED  ----------------------------------------------------------------------
                                                                  [ ] PARTIAL         32. PAID BY         33. AMOUNT VERIFIED
                                                                  [ ] FINAL                               CORRECT FOR
                                                              ------------------
--------------    -----------------------------------------   31. PAYMENT                             ------------------------------
     DATE         SIGNATURE OF AUTHORIZED GOVT. REP.              [ ]COMPLETE                             34. CHECK NUMBER
-----------------------------------------------------------       [ ]PARTIAL
36. I certify this account is correct and proper for payment.     [ ]FINAL                            ------------------------------
                                                                                                          35. BILL OF LADING NO.
--------------    -----------------------------------------
     DATE         SIGNATURE AND TITLE OF CERTIFYING OFFICER
------------------------------------------------------------------------------------------------------------------------------------
37. RECEIVED AT      38. RECEIVED BY       39. DATE RECEIVED  40. TOTAL               41. S/R ACCOUNT NO. 42. S/R VOUCHER NO.
                                               (YYYYMMMDD)        CONTAINERS

------------------------------------------------------------------------------------------------------------------------------------
DD Form 1155, JAN 1998 (EG)                        PREVIOUS EDITION MAY BE USED.
</TABLE>

<PAGE>

                                                                DAAD17-01-D-0006
                                                                            0002
                                                                    Page 2 of 10

SECTION B Supplies or Services and Prices

ITEM NO    SUPPLIES/SERVICES   QUANTITY  UNIT     UNIT PRICE    AMOUNT
0001                                     Dollars,              $           $ TBN
                                           U.S.

           STROBE IMAGER
           CPFF - The contractor shall research and develop a Stacked
           Readout for low Observable Enhancement (STROBE) Imager
           PURCHASE REQUEST NUMBER W71B7J-2133-H241

                                ESTIMATED COST              $         635,560.00
                                     FIXED FEE              $               0.00
                                                            --------------------
                                                            $         635,560.00
                          TOTAL EST COST + FEE
           ACRN AA Funded Amount                            $         635,560.00

CLAUSES INCORPORATED BY FULL TEXT

52.016-4408  ANTICIPATED COST TYPE TASK ORDER (SEP 1999)

In accordance with Section H clause, H.016-4406, a Cost-Plus Fixed Fee type of
definitive task order is anticipated. The amount allotted to this task order for
purposes of payment of estimated costs is $635,560.00. The Limitation of
Liability clause, FAR 52.216-24, is in effect for this task order until it is
definitized.

                                 (End of clause)

52.032-4421  INCREMENTAL FUNDING - PERFORMANCE PERIOD (SEP 1999)

This task order is incrementally funded. The amount presently available for
payment and allotted to the task order is $635,560.00. It is estimated that the
allotted funds will cover all areas of contract performance for the period from
award of contract through three months.

                                 (End of clause)

<PAGE>

                                                                DAAD17-01-D-0006
                                                                            0002
                                                                    Page 3 of 10

SECTION C Descriptions and Specifications

TASK ORDER NO.: 0002
TASK ORDER TITLE: Jigsaw Phase II--Prototype System Build & Test
CONTRACT NUMBER: DAAD17-01-D-0006

1.1      BACKGROUND & OBJECTIVE
The DARPA Jigsaw program is developing a compact 3-D imaging laser radar (ladar)
capable of reliably identifying combat targets partially obscured by foliage or
camouflage. Under the previous task order, the contractor completed a system
design trade study and a prototype system design, which was presented at the
Jigsaw Phase I Critical Design Review in April 2002. Under this task order, the
contractor will do the following: build a prototype ladar sensor system; develop
methods of aligning, displaying and interacting with 3-D ladar data; and
demonstrate the overall system during two planned field experiments. The first
experiment is scheduled for December 2002 at Redstone Technical Test Center
(RTTC), Redstone, AL. A second field experiment will be conducted in March/April
2003 at RTTC or at another eastern U.S. location.

1.2      STATEMENT OF WORK

1.2.1    COST AND SCHEDULE MANAGEMENT.
Within two (2) weeks of task award, the contractor shall provide a detailed
time-phased program schedule showing all major activities, milestones, delivery
dates, and major test dates. The contractor shall establish the top-level system
requirements and subsystem requirements allocation budget for the prototype
system. The contractor shall provide a monthly report that details progress,
status, and cost. In the event that both the cost and schedule variance exceed
10% of the plan, a summary report (1-2 pages) showing the reason for the
variance and a recovery plan shall be included in the monthly report. The
contractor shall present the program schedule status to the Government for
review during weekly or biweekly program status teleconferences and the schedule
updated as necessary.

1.2.2    IMPLEMENT AND INTEGRATE PROTOTYPE SYSTEM HARDWARE DESIGN
The contractor shall construct a prototype ladar sensor based on the design
presented at the Jigsaw Phase I Critical Design Review. The contractor shall
fabricate two (2) ladar transmitters and two (2) ladar receivers that are
consistent with the design specifications presented at the Jigsaw Phase I
Critical Design Review. The contractor shall integrate one (1) ladar receiver
and one (1) ladar transmitter into a transceiver system. The contractor shall
also fabricate the system support electronics for integrating the sensor system
onto a government-furnished UH-1 helicopter equipped with a stabilized
electro-optical airborne instrumentation platform (SEAIP). The contractor shall
integrate and interface the helicopter, payload, rack, and SEAIP. The contractor
shall develop and manage all software components necessary for data collection,
data

<PAGE>

                                                                DAAD17-01-D-0006
                                                                            0002
                                                                    Page 4 of 10

storage, and user interface. The data collection software shall control the
ladar system during flight tests. Sensor performance characteristics shall, at a
minimum, be consistent with Jigsaw prototype demonstration objectives as
follows:

         Data Collection Area:              20 m x 20 m
         Range Resolution:                  7.5 cm
         Spatial Resolution:                7.5 cm
         Nominal Altitude:                  100 m
         Platform:                          UH-1 with SEAIP gimbal (with GPS
                                            pointing mode)
         Collections/Day:                   4
         Time to ID Target:                 <2 hours from collect
         Minimum Frames/Collect:            10

1.2.3    IMPLEMENT 3-D LADAR REGISTRATION & VISUALIZATION DESIGNS
The contractor shall develop and implement the data registration processing
design and the interactive, 3-D visualization design presented at the Jigsaw
Phase I Critical Design Review. The registration component shall rapidly,
accurately, and autonomously align 3-D ladar data. The registration component
shall incorporate coarse alignment, fine alignment, and multi-view control. The
visualization component shall include the following:

        .   Mission Replay
        .   Standard 3-D scene manipulation
        .   Bearing/Range from operator to target
        .   Length, Width, Height linear mensuration
        .   Zoom to Target
        .   Visual Comparison to sample target geometrical models

        .   Elimination of background clutter (thresholding, slicing planes)
        .   Color encoding for feature extraction
        .   Voxel and point cloud representations

Implementation of these registration and visualization components shall be on a
COTS PC-based workstation, which will be utilized for ground processing of the
data collected during the field demonstrations.

1.2.4    FIELD DEMONSTRATIONS
The contractor shall participate in two field demonstrations. The first
demonstration shall be conducted in December 2002 at the RTTC and the second
demonstration shall be conducted in April 2002 at a to-be-determined CONUS
location. At the field demonstrations, the contractor shall integrate its ladar
sensor hardware onto a government-furnished UH-1 helicopter equipped with a
SEAIP, operate the ladar data collection controls while in flight, and perform
post-flight analysis of the collected data.

<PAGE>

                                                                DAAD17-01-D-0006
                                                                            0002
                                                                    Page 5 of 10

The contractor shall identify a target within two hours of collecting the data,
and also identify the criteria or features used to ID the target.

1.3      DELIVERABLES
-------------------------------------------------------------------
   DESCRIPTION
-------------------------------------------------------------------
Program Schedule
-------------------------------------------------------------------
Monthly Progress, Status,
and Cost Report
-------------------------------------------------------------------
Final Report on Captive
Flight Tests
-------------------------------------------------------------------

1.4      PERIOD OF PERFORMANCE
The period of performance is 12 months.

1.5      GOVERNMENT FURNISHED EQUIPMENT, MATERIALS, AND FACILITIES
The government shall provide the use of a stabilized electro-optical airborne
instrumentation platform (SEAIP) and integration support, a UH-1 helicopter and
crew, and test support including facilities and targets. The GFE will be made
available to the contractor by 15 November 2002.

1.6      SECURITY CLASSIFICATION
All hardware, software, and data generated under this task order shall be
unclassified.

<PAGE>

                                                                DAAD17-01-D-0006
                                                                            0002
                                                                    Page 6 of 10

  SECTION E Inspection and Acceptance

  INSPECTION AND ACCEPTANCE TERMS

  Supplies/services will be inspected/accepted at:

CLIN       INSPECT AT        INSPECT BY     ACCEPT AT                ACCEPT BY
0001       Destination       Government     Destination              Government

<PAGE>

                                                                DAAD17-01-D-0006
                                                                            0002
                                                                    Page 7 of 10

  SECTION F Deliveries or Performance

  DELIVERY INFORMATION

<TABLE>
<CAPTION>
CLINS      DELIVERY DATE               UNIT OF ISSUE     QUANTITY    FOB    SHIP TO ADDRESS
<S>        <C>                         <C>               <C>         <C>    <C>
0001       POP 21-MAY-02  TO           Dollars, U.S.                 Dest.  W71B7J
           20-MAY-03                                                        US ARMY RESEARCH LABORATORY
                                                                            VINCENT MARINELLI / AMSRL-SE-SS
                                                                            2800 POWDER MILL ROAD
                                                                            ADELPHI MD  20783-1197
</TABLE>

<PAGE>

                                                                DAAD17-01-D-0006
                                                                            0002
                                                                    Page 8 of 10

  SECTION G Contract Administration Data

  ACCOUNTING AND APPROPRIATION DATA

<TABLE>
<CAPTION>
<S>          <C>                                                                    <C>
AA:          972040013012RPARGO2J30M200000255YANSS00W71B7J2133H2412N1FRRS18129      000000000000
AMOUNT:      $ 635,560.00
</TABLE>

<PAGE>

                                                                DAAD17-01-D-0006
                                                                            0002
                                                                    Page 9 of 10

SECTION H Special Contract Requirements

CLAUSES INCORPORATED BY FULL TEXT

52.045-4400  GOVERNMENT FURNISHED PROPERTY DELIVERY SCHEDULE (AUG 1999)

         The following Government property will be furnished to the Contractor
in accordance with the following schedule:

        Item                           Quantity     Unit    Destination Due Date
(1)  Use of a stabilized
ectro-optical airborne
instrumentation platform (SEAIP)            1        lot     15 November 2002

(2)  Integration Support                    1        lot     15 November 2002

(3)  UH-1 helicopter and crew               1        lot     15 November 2002

(4)  test support including
 facilities and targets                     1        lot     15 November 2002

                                 (End of clause)

<PAGE>

                                                                DAAD17-01-D-0006
                                                                            0002
                                                                   Page 10 of 10

  SECTION I Contract Clauses

  CLAUSES INCORPORATED BY REFERENCE:

52.216-24       Limitation Of Government Liability              APR 1984

<PAGE>

<TABLE>
<S>                                         <C>                 <C>                              <C>
AMENDMENT OF SOLICITATION/MODIFICATION OF CONTRACT               1.CONTRACT ID CODE                  PAGE OF PAGES
                                                                         U                              1     3
------------------------------------------------------------------------------------------------------------------------------------
2.AMENDMENT/MODIFICATION NO.                3. EFFECTIVE DATE   4.REQUISITION/PURCHASE REQ.NO.   5. PROJECT NO.(If applicable)
01                                          13-Jun-2002         W71B7J-2133-H241                 2N10RR/2N1GRR
------------------------------------------------------------------------------------------------------------------------------------
6. ISSUED BY                     CODE   W71B7J                  7. ADMINISTERED BY (If other than item 6)    CODE S0513A
   US ARMY ROBERT MORRIS ACQUISITION CENTER                        DCM-SANTA ANA
   RMAC - ADELPHI                                                  34 CIVIC CENTER PLAZA
   2500 POWDER MILL ROAD                                           P.O. BOX C-12700
   AMSSB-ACA                                                       SANTA ANA CA 92712-2700
   ADELPHI MD 20783-1197

------------------------------------------------------------------------------------------------------------------------------------
8. NAME AND ADDRESS OF CONTRACTOR (No., Street, County, State and Zip code)                    [ ] 9A. AMENDMENT OF SOLICITATION NO.
   IRVINE SENSORS CORPORATION                                                                    -----------------------------------
   DARYL SMETANA                                                                               [ ] 9B. DATED (SEE ITEM 11)
   3001 RED HILL AVENUE BLDG 4                                                                   -----------------------------------
   COSTA MESA CA 92626                                                                         [X] 10A. MOD OF CONTRACT/ORDER NO.
                                                                                                   DAAD17-01-D-0006-0002
                                                                                                 -----------------------------------
                                                                                               [X] 10B. DATED (SEE ITEM 13)
-----------------------------------------------------------------------------------------------    21-May-2002
CODE 54266                                  FACILITY CODE
------------------------------------------------------------------------------------------------------------------------------------
                                            11. THIS ITEM ONLY APPLIES TO AMENDMENTS OF SOLICITATIONS
------------------------------------------------------------------------------------------------------------------------------------
[ ] The above numbered solicitations is amended as set forth in item 14.
    The hour and date specified for receipt of offer                                             [ ] is extended [ ] is not extended
    Offer must acknowledge receipt of this amendment prior to the hour and date specified in the solicitation or as
    amended by use of the following methods:
    (a) By completing Items 8 and 15, and returning   __________ copies of the amendment; (b) By acknowledging
    receipt of this amendment on each copy of the offer submitted;
    or (c) By separate letter or telegram which includes a reference to the solicitation and amendment numbers.
    FAILURE OF YOUR ACKNOWLEDGEMENT TO BE RECEIVED AT THE PLACE DESIGNATED FOR THE RECEIPT OF OFFERS PRIOR TO
    THE HOUR AND DATE SPECIFIED MAY RESULT IN REJECTION OF YOUR OFFER. If by virtue of this amendment you desire
    to change an offer already submitted, such change may be made by telegram or letter,
    provided each telegram or letter makes reference to the solicitation and this amendment, and is received prior
    to the opening hour and date specified.
------------------------------------------------------------------------------------------------------------------------------------
12. ACCOUNTING AND APPROPRIATION DATA (If required)
    See schedule
------------------------------------------------------------------------------------------------------------------------------------
                                            13. THIS ITEM APPLIES ONLY TO MODIFICATIONS OF CONTRACTS/ORDERS.
                                                IT MODIFIES THE CONTRACT/ORDER NO. AS DESCRIBED IN ITEM 14.
------------------------------------------------------------------------------------------------------------------------------------
[ ] A. THIS CHANGE ORDER IS ISSUED PURSUANT TO: (Specify authority) THE CHANGES SET FORTH IN ITEM 14 ARE MADE IN THE
       CONTRACT ORDER NO. IN ITEM 10A.
------------------------------------------------------------------------------------------------------------------------------------
[ ] B. THE ABOVE NUMBERED CONTRACT/ORDER IS MODIFIED TO REFLECT THE ADMINISTRATIVE CHANGES (such as changes in paying
       office, appropriation date, etc,) SET FORTH IN ITEM 14, PURSUANT TO THE AUTHORITY OF FAR 43.103(B)
------------------------------------------------------------------------------------------------------------------------------------
[X] C. THIS SUPPLEMENTAL AGREEMENT IS ENTERED INTO PURSUANT TO AUTHORITY OF:
    52.232.20 Limitation of Funds
------------------------------------------------------------------------------------------------------------------------------------
[ ] D. OTHER (Specify type of modification and authority)

------------------------------------------------------------------------------------------------------------------------------------
E. IMPORTANT     Contractor [X]  is not, [ ] is required to sign this document and return   _______ copies to the issuing office.
------------------------------------------------------------------------------------------------------------------------------------
14 DESCRIPTION OF AMENDMENT/MODIFICATION (Organized by UCF section headings, including solicitation/contract
   subject matter where feasible.)
 The purpose of this modification is to incrementally fund Task Order DAAD17-01-D-0006-0002 in the amount of $3,635,560.00.

Except as provided herein, all terms and conditions of the document referenced in Item 9A or 10A, as
heretofore changed, remains unchanged and in full force and effect.
------------------------------------------------------------------------------------------------------------------------------------
15A. NAME AND TITLE OF SIGNER (Type or print)                   16A. NAME AND TITLE OF CONTRACTING OFFICER (Type or print)
     John C. Carson, President                                  LEE A. HESS/CONTRACTING OFFICER
------------------------------------------------------------------------------------------------------------------------------------
15B. CONTRACTOR/OFFEROR                     15C. DATE SIGNED    16B. UNITED STATES OF AMERICA    16C. DATE SIGNED
     Irvine Sensors Corporation                  6/13/02
     /s/ John C. Carson                                              BY /s/ Lee A. Hess              13-Jun-2002
     ---------------------------------------                         -------------------------
     (Signature of person authorized to sign)                        (Signature of contracting officer)
------------------------------------------------------------------------------------------------------------------------------------
EXCEPTION TO SF 30                                             30-105-04                         STANDARD FORM 30 (Rev. 10-83)
APPROVED BY OIRM 11-84                                                                           Prescribed by GSA
                                                                                                 FAR (48 CFR) 53.243
</TABLE>

<PAGE>

                                                                DAAD17-01-D-0006
                                                                            0002
                                                                     Page 2 of 3

SECTION  SF 30 BLOCK 14 CONTINUATION PAGE

SUMMARY OF CHANGES

Changes in Section B

     SUB-CLIN 000101 was added.

<TABLE>
<CAPTION>
ITEM NO         SUPPLIES/SERVICES         QUANTITY      UNIT             UNIT PRICE             AMOUNT
<S>             <C>                       <C>           <C>     <C>                          <C>
000101                                                                                       $                      $
                Incremental Funding $3M
                CPFF

                                                                      ESTIMATED COST         $                   0.00
                                                                           FIXED FEE         $
                                                                                             ------------------------
                                                                TOTAL EST COST + FEE         $
                ACRN AB Funded Amount                                                        $           3,000,000.00

     SUB-CLIN 000102 was added.

<CAPTION>
ITEM NO         SUPPLIES/SERVICES         QUANTITY      UNIT             UNIT PRICE             AMOUNT
<S>             <C>                       <C>           <C>     <C>                          <C>
000102                                                                                       $                      $
                Incremental Funding $635,560.00
                CPFF

                                                                      ESTIMATED COST         $                   0.00
                                                                           FIXED FEE         $
                                                                                             ------------------------
                                                                TOTAL EST COST + FEE         $
                ACRN AC Funded Amount                                                        $             635,560.00
</TABLE>

<PAGE>

                                                                DAAD17-01-D-0006
                                                                            0002
                                                                     Page 3 of 3

Changes in Section G

Summary for the Payment Office

As a result of this modification, the total funded amount of the contract is
increased by $3,635,560.00 from $635,560.00 to $4,271,120.00

SUB-CLIN :000101
AB: 212204000000RPARG063300553G00255YANSS00W71B7J2162H0212N10RRS18129
000000000000 is increased by $3,000,000.00 from $0.00 to $3,000,000.00

SUB-CLIN :000102
AC: 972040013010RPARG02J30M202000255YANSS00W71B7J2162H2422N1GRRS18129
000000000000 is increased by $635,560.00 from $0.00 to $635,560.00<PAGE>

                                                                    EXHIBIT 10.2
<TABLE>
<S>                                  <C>                                        <C>                                 <C>
------------------------------------------------------------------------------------------------------------------------------------
    AWARD/CONTRACT                   1. THIS CONTRACT IS A RATED ORDER          RATING                             PAGE OF PAGES
                                        UNDER DPAS (15 CFR 350)                 DX-A2                                1      17
------------------------------------------------------------------------------------------------------------------------------------
2. CONTRACT (Proc. Insl. ident.) NO. 3. EFFECTIVE DATE                          4. REQUISITION/PURCHASE REQUEST/PROJECT NO.
DASG60-02-C-0029                                        07 May 2002             VH2A935000-01
------------------------------------------------------------------------------------------------------------------------------------
5. ISSUED BY             CODE W31RPD 6. ADMINISTERED BY (if other than item 5)                                      CODE S0513A

US ARMY SPACE AND MISSILE DEFENSE    DCM SANTA ANA
SMDC-CM-AK, BAUGH                    34 CIVIC CENTER PLAZA
256-955-1254                         P.O. BOX C 12700
P.O. BOX 1500                        SANTA ANA CA 92712-2700
HUNTSVILLE AL 35807-3801
------------------------------------------------------------------------------------------------------------------------------------
7. NAME AND ADDRESS OF CONTRACTOR (No., street, city, county, state and zip code)       8. DELIVERY
                                                                                [ ] FOB ORIGIN    [X] OTHER (See below)
IRVINE SENSORS CORPORATION                                                      ----------------------------------------------------
3001 REDHILL AVENUE                                                             9. DISCOUNT FOR PROMPT PAYMENT
BLDG 4
COSTA MESA CA 92626-0000
                                                                                ----------------------------------------------------
                                                                                10. SUBMIT INVOICES                 ITEM
                                                                                (4 copies unless otherwise
                                                                                specified)
                                                                                TO THE ADDRESS
                                                                                SHOWN IN:
--------------------------------------------------------------------------------
CODE 54266                           FACILITY CODE
------------------------------------------------------------------------------------------------------------------------------------
11. SHIP TO/MARK FOR     CODE                                                   12. PAYMENT WILL BE MADE BY         CODE HQ0339

                                                                                DFAS-COLUMBUS CENTER
                                                                                DFAS-CO/WEST ENTITLEMENT OPERATION
                                                                                P.O. BOX 182381
SEE SCHEDULE                                                                    COLUMBUS OH 43218-2381

------------------------------------------------------------------------------------------------------------------------------------
13. AUTHORITY FOR USING OTHER THAN FULL AND OPEN                                14. ACCOUNTING AND APPROPRIATION DATA
    COMPETITION:
 [ ] 10 U.S.C. 2304(c)(  )  [ ] 41 U.S.C. 253(c)(  )                            See Schedule
------------------------------------------------------------------------------------------------------------------------------------
15A. ITEM NO                         15B. SUPPLIES/SERVICES      15C. QUANTITY   15D. UNIT        15E.UNIT PRICE          15F.AMOUNT
------------------------------------------------------------------------------------------------------------------------------------

                                           SEE SCHEDULE

------------------------------------------------------------------------------------------------------------------------------------
                                                                                15G. TOTAL AMOUNT OF CONTRACT       $     958,998.00
------------------------------------------------------------------------------------------------------------------------------------
                                     16. TABLE OF CONTENTS
------------------------------------------------------------------------------------------------------------------------------------
[X] SEC        DESCRIPTION                      PAGE(S)         [X]  SEC.            DESCRIPTION                           PAGE(S)
------------------------------------------------------------------------------------------------------------------------------------
         PART I - THE SCHEDULE                                           PART II - CONTRACT CLAUSES
------------------------------------------------------------------------------------------------------------------------------------
[X] A SOLICITATION/CONTRACT FORM                 1 - 1          [X]   I      CONTRACT CLAUSES                              13
------------------------------------------------------------------------------------------------------------------------------------
[X] B SUPPLIES OR SERVICES AND PRICES/COSTS      2                 PART III-LIST OF DOCUMENTS, EXHIBITS AND OTHER ATTACHMENTS
------------------------------------------------------------------------------------------------------------------------------------
[ ] C DESCRIPTION/SPECS./WORK STATEMENT                         [X]   J      LIST OF ATTACHMENTS                           17
------------------------------------------------------------------------------------------------------------------------------------
[ ] D PACKAGING AND MARKING                                               PART IV - REPRESENTATIONS AND INSTRUCTIONS
------------------------------------------------------------------------------------------------------------------------------------
[X] E INSPECTION AND ACCEPTANCE                  4              [ ]   K      REPRESENTATIONS, CERTIFICATIONS AND
-----------------------------------------------------------
[X] F DELIVERIES OR PERFORMANCE                  5                           OTHER STATEMENTS OF OFFERORS
------------------------------------------------------------------------------------------------------------------------------------
[X] G CONTRACT ADMINISTRATION DATA               7              [ ]   L      INSTRS.. CONDS.. AND NOTICES TO OFFERORS
------------------------------------------------------------------------------------------------------------------------------------
[X] H SPECIAL CONTRACT REQUIREMENTS              9              [ ]   M      EVALUATION FACTORS FOR AWARD
------------------------------------------------------------------------------------------------------------------------------------
                                  CONTRACTING OFFICER WILL COMPLETE ITEM 17 OR 18 AS APPLICABLE
------------------------------------------------------------------------------------------------------------------------------------
17 [X] CONTRACTOR'S NEGOTIATED AGREEMENT   Contractor is        18 [ ] AWARD (Contractor is not required to sign this document)
required to sign this document and return / copies to issuing                            Your offer on Solicitation Number
office.) Contractor agrees to furnish and deliver all items or
perform all the services set forth or otherwise identified        __________________________________________________________________
above and on any continuation sheets for the consideration        including the additions or changes made by you which additions or
stated herein. The rights and obligations of the parties to       changes are set forth in full above, is hereby accepted as to the
this contract shall by subject to and governed by the following   items listed above and on any continuation sheets. This award
documents: (a) this award/contract, (b) the solicitation, if      consummates the contract which consists of the following
any, and (c) such provisions, representations, certifications,    documents: (a) the Government's solicitation and your offer, and
and specifications, as are attached or incorporated by            (b) this award/contract. No further contractual document is
reference herein.                                                 necessary.
(Attachments are listed herein)
------------------------------------------------------------------------------------------------------------------------------------
19A. NAME AND TITLE OF SIGNER (Type or print)                   20A. NAME AND TITLE OF CONTRACTING OFFICER
     John C. Carson, President                                  NICOLE BAUGH/CONTRACTING OFFICER
------------------------------------------------------------------------------------------------------------------------------------
19B. NAME OF CONTRACTOR              19C. DATE SIGNED           20B. UNITED STATES OF AMERICA                       20C. DATE SIGNED
     Irvine Sensors Corporation           5/7/02                                                                    08-May-2002
     /s/ John C. Carson                                         BY /s/ Nicole Baugh
     ---------------------------                                   ---------------------------
     (Signature of person authorized to sign)                   (Signature of Contracting Officer)
------------------------------------------------------------------------------------------------------------------------------------
NSN 7540-01-152-8069                                       26-107                                       STANDARD FORM 26 (REV. 4-85)

PREVIOUS EDITION UNUSABLE                           GPO 1985 O-469-794                                  Prescribed by GSA
                                                                                                        FAR (48 CFR) 53.214(a)
</TABLE>

<PAGE>

                                                                DASG60-02-C-0029

                                                                    Page 2 of 17

SECTION B Supplies or Services and Prices

ITEM NO     SUPPLIES/SERVICES         QUANTITY           UNIT
0001                                                     LOT
            SBIR Phase III - Basic Effort

            CPFF - Work as set forth in Irvine Sensor Corporation's Small
            Business Innovation Research Program Proposal for "Silicon Brain
            Initiative," pages 2 through 3, incorporated by reference as set
            forth in Section J.

                                   ESTIMATED COST          $       909,946.00
                                        FIXED FEE          $        49,052.00
                                                           -------------------
                                                           $       958,998.00
                                   TOTAL EST COST + FEE
            ACRN AA Funded Amount                          $       650,000.00

ITEM NO     SUPPLIES/SERVICES         QUANTITY           UNIT      AMOUNT
0002                                  1                    LOT               NSP
            Data Items
            CPFF - Data to be delivered under this contract
            shall be that cited in Contract Data Requirements
            List (CDRL), DD Form 1423s, Exhibit A, consisting
            of Exhibit Line Item Nos. A001 through A004.
            Contractor may submit reports in accordance with
            Data Item Description (DD Forms 1664) incorporated
            by reference as set forth in Section J.

CLAUSES INCORPORATED BY FULL TEXT

COMPLETION TYPE COST REIMBURSEMENT CONTRACT:

         a. Performance of Contract Line Items 0001 and 0002 shall be
accomplished on a completion basis as defined in FAR 16.306(d)(1). Pending
satisfactory completion of the task, fee payments are provisional and are not
final. Fee payments will not become final unless and until the contractor
performs the task required by CLIN 0001 and delivers data required by CLIN 0002
and such are accepted by the Government as being satisfactory. In the event the
task cannot be completed by the contractor within the estimated cost of CLIN
0001, the Government may require completion of the task without increase in fee,
provided the Government increases the estimated cost of CLIN 0001 under the
LIMITATION OF COST or FUNDS contract clause.

         b. CLIN 0001 will be considered complete based upon the following:

<PAGE>

                                                                DASG60-02-C-0029

                                                                    Page 3 of 17

         The following deliverables are developed, completed, and accepted:

         3DANN-R Digital Motherboard

         3DANN-R Analog Daughterboard

         c. CLIN 0002 will be considered complete based upon a determination
that all data and reports have been submitted and accepted, as set forth in
Block 8 of each exhibit line item number of the DD Form 1423.

<PAGE>

                                                                DASG60-02-C-0029

                                                                    Page 4 of 17

SECTION E Inspection and Acceptance

CLAUSES INCORPORATED BY REFERENCE:

52.246-8      Inspection Of Research And Development Cost Reimbursement MAY 2001
252.246-7000  Material Inspection And Receiving Report                  DEC 1991

<PAGE>

                                                                DASG60-02-C-0029

                                                                    Page 5 of 17

SECTION F Deliveries or Performance

CLAUSES INCORPORATED BY REFERENCE:

52.242-15 Alt I Stop-Work Order (Aug 1989) - Alternate I        APR 1984
52.247-34       F.O.B. Destination                              NOV 1991

CLAUSES INCORPORATED BY FULL TEXT

PERIOD OF PERFORMANCE:

         a. The contractor shall provide completion of all tasks required by
CLIN 0001 and deliver of all data and reports required by CLIN 0002 no later
than nine (9) months after contract award.

DELIVERY OF DATA:

         a. All data shall be delivered IAW FAR 52.247-34, F.O.B. Destination,
as specified in Block 14 of DD Form 1423. The contractor shall furnish the
Contracting Officer one (1) copy of the transmittal letters submitting data
requirements to the Technical Monitor. The extent of the Government's rights in
data delivered under the contract shall be governed by Contract Clause
252.227-7018 titled, "Rights in Noncommercial Technical Data and Computer
Software - Small Business Innovative Research (SBIR) Program."

         b. Acceptance by the Government of all items delivered hereunder shall
be at destination.

MILESTONE EVENTS AND PERFORMANCE PERIOD: The contractor shall accomplish the
following milestone events within the specified performance period to assure
timely completion of total contract requirements:

<TABLE>
<CAPTION>
                                                                                        WITHIN MONTHS AFTER
              MILESTONE EVENT                                                            DATE OF CONTRACT
              ---------------                                                           -------------------
<S>                                                                                              <C>
Digital Motherboard Development
Design and build a motherboard in compact PCI format that contains the control
FPGA, host PCI interface, and I/O FIFO memory buffers.                                           3

Analog Daughterboard Development
Design and build an analog multiplexer circuit to reduce analog board footprint.
Fabricate analog daughterboard that will plug directly into the digital motherboard.             3

Control Firmware Development
Design and debug FPGA firmware to control 3DANN processor and manage data I/O.                   5

Host Driver Software
Develop host driver software to facilitate high-speed data transfer between the host
Computer and 3DANN under DMA control over the PCI bus.                                           6
</TABLE>

<PAGE>

                                                                DASG60-02-C-0029

                                                                    Page 6 of 17

<TABLE>
<S>                                                                                              <C>
Integration and Testing
Test and debug hardware, firmware, and host driver software.                                     8

Application Software Development
Develop interface between existing 3DANN post-processing code and application
Software (ATR), currently running on a PC, with the new 3DANN hardware.                          9
</TABLE>

<PAGE>

                                                                DASG60-02-C-0029

                                                                    Page 7 of 17

SECTION G Contract Administration Data

ACCOUNTING AND APPROPRIATION DATA

AA:      972 0400.2501 36-6011 P30603175C00 255Y VH2A935000 S01021
         VH2A93500/2HHA13/H
AMOUNT:  $650,000.00

CLAUSES INCORPORATED BY FULL TEXT

INVOICING AND VOUCHERING:

         a. When authorized by the Defense Contract Audit Agency (DCAA) in
accordance with DFARS 242.803(b)(i)(C), the contractor may submit interim
vouchers directly to paying offices. Such authorization does not extend to the
first and final vouchers. Submit first vouchers to the cognizant DCAA office.
Final vouchers will be submitted to the ACO with a copy to DCAA.

         b. Upon written notification to the contractor, DCAA may rescind the
direct submission authority.

         c. Should the contractor decline to submit interim vouchers directly to
paying offices or if the contractor receives written notification that DCAA has
rescinded the direct submission authority, public vouchers, together with any
necessary supporting documentation, shall be submitted to the cognizant Defense
Contract Audit Agency (DCAA) Office, prior to payment by the Finance and
Accounting Office specified in Block 12, Page 1, Section A, of Standard Form 26.

         d. The contractor shall identify on each public voucher: (1) The
accounting classification reference number (ACRN) assigned to the accounting
classification which pertains to the charges billed, e.g. "ACRN: AA;" (2) the
Order Number/PRON; and (3) the words "BMD CONTRACT" in bold type on the face
page of the voucher. Since vouchers are paid by Order Number/PRON within
accounting classification, it is necessary that the Order Number/PRON be shown
on each voucher.

         e. Department of Defense requires that the Taxpayer Identification
Number (TIN) be placed on all certified payment vouchers, including non-profit
organizations, when submitting payment to the disbursing office. The only
exception is foreign vendors, which will have the word "foreign" in the TIN
field. Invoices will be returned to the vendor without payment if a TIN is not
provided.

         f. The contractor may include in provisional vouchers fixed fee based
on the percentage of work completed, subject to the withholding reserve of the
contract clause titled "Fixed Fee." The Contracting Officer may elect to
withhold or accelerate fee payment based upon the Contractor's actual
performance as compared to the milestone events target dates as set forth in
Section F hereof.

         g. The Paying Office shall ensure that the voucher is disbursed for
each ACRN as indicated on the voucher (or as specified herein).

IDENTIFICATION OF CORRESPONDENCE: All correspondence and data submitted by the
contractor under this contract shall reference the contract number.

<PAGE>

                                                                DASG60-02-C-0029

                                                                    Page 8 of 17

CONTRACTING ACTIVITY REPRESENTATIVES:

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------
                                         Contractual Matters            Technical Matters
------------------------------------------------------------------------------------------------
<S>                                      <C>                            <C>
NAME:                                    Nicole Baugh                   Gary Mayes
------------------------------------------------------------------------------------------------
ORGANIZATION CODE:                       SMDC-CM-AK                     SMDC-TC-MT-AC
------------------------------------------------------------------------------------------------
TELEPHONE NUMBERS:                       256-955-1254                   256-955-4904
 COMMERCIAL:
------------------------------------------------------------------------------------------------
 DEFENSE SWITCHED NETWORK (DSN):          645-1254                       645-4904
------------------------------------------------------------------------------------------------
EMAIL:                                   Nicole.baugh@smdc.army.mil     Gary.mayes@smdc.army.mil
------------------------------------------------------------------------------------------------
</TABLE>

IMPLEMENTATION OF AND EXPLANATION OF THE RELATIONSHIP OF THE LIMITATION OF FUNDS
(LOF) CLAUSE TO FEE OBLIGATIONS: The amount of funds estimated to be required
for full performance, including fee(s); the amount of funds allotted pursuant to
the Contract Clause hereof entitled, Limitations of Funds; the amount of funds
currently obligated for fee; and the estimated period of performance covered by
the funds allotted are set forth below. Amounts obligated for fee are separate
from and are not to be commingled with the amounts allotted for costs and are
not available to the contractor to cover costs in excess of those allotted to
the contract for cost.

         a.   CLINs 0001 and 0002

              (1)  Amount Required for Full Funding,
                   Including Fee(s):                                $    958,998

              (2)  Amount Allotted Under the LOF Clause
                   for Payment of Costs:                            $    616,759

              (3)  Amount Separately Obligated for
                   Payment of Fee:                                  $     33,241

              (4)  Total Amount Allotted and Obligated:             $    650,000

              (5)  Net Amount Required for Full Funding:            $    308,998

              (6)  Estimated Period of Performance
                   the Allotted Amount Will Cover                      15 Nov 02

<PAGE>

                                                                DASG60-02-C-0029

                                                                    Page 9 of 17

SECTION H Special Contract Requirements

CLAUSES INCORPORATED BY FULL TEXT

PUBLIC RELEASE OF INFORMATION:

         a. In accordance with DFARS 252.204-7000, Disclosure of Information,
The Contractor shall not release to anyone outside the Contractor's organization
any unclassified information, regardless of medium (e.g., film, tape, document),
pertaining to any part of this contract or any program related to this contract,
unless the Contractor has written approval or the information is otherwise in
the public domain before the date of release.

         b. Requests for approval shall identify the specific information to be
released, the medium to be used, and the purpose for the release. The Contractor
shall submit its request to the Technical Monitor noted in the contract, Section
H, at least 45 days before the proposed date for release. All material to be
cleared shall be sent by certified mail/return receipt requested to:

            U.S. Army Space and Missile Defense Command
            ATTN:  Insert Technical Office POC
            P. O. Box 1500
            Huntsville, AL 35807-3801

         c. The Technical Monitor shall process the request in accordance with
SMDC form 614-R.

         d. If there is no response within 30 days, the Contractor shall
resubmit the request to:

            U.S. Army Space and Missile Defense Command
            ATTN: SMDC-PA
            P. O. Box 1500
            Huntsville, AL 35807-3801

         e. The Contractor agrees to include a similar requirement in each
subcontract under this contract. Subcontractors shall submit requests for
authorization to release through the prime contractor.

DISTRIBUTION CONTROL OF TECHNICAL INFORMATION:

         a. The following terms applicable to this clause are defined as
follows:

            (1) Technical Document. Any recorded information that conveys
scientific and technical information or technical data.

            (2) Scientific and Technical Information. Communicable knowledge or
information resulting from or pertaining to conducting and managing a scientific
or engineering research effort.

            (3) Technical Data. Recorded information related to experimental,
developmental, or engineering works that can be used to define an engineering or
manufacturing process or to design, procure, produce, support, maintain,
operate, repair, or overhaul material. The data may be graphic or pictorial
delineations in media such as drawings or photographs, text in specifications or
related performance or design type documents, or computer printouts. Examples of
technical data include research and engineering data, engineering drawings, and
associated lists, specifications, standards, process sheets, manuals, technical
reports, catalog-item identifications, and related information and computer
software documentation.

<PAGE>

                                                                DASG60-02-C-0029

                                                                   Page 10 of 17

         b. Except as may otherwise be set forth in the Contract Data
Requirements List (CDRL), DD Form 1423, (i) the distribution of any technical
document prepared under this contract, in any stage of development or
completion, is prohibited without the approval of the Contracting Officer and
(ii) all technical documents prepared under this contract shall initially be
marked with the following distribution statement, warning, and destruction
notice:

            (1) DISTRIBUTION STATEMENT B - Distribution authorized to U.S.
Government agencies only due to proprietary information and/or Arms Export
Control Act Information, (date of determination). Other request for this
document shall be referred to SMDC-IM-PA.

TECHNICAL COGNIZANCE AND TECHNICAL DIRECTION:

         a. The U.S. Army Space and Missile Defense Command is the cognizant
Government technical organization for this contract and will provide technical
direction as defined herein. Technical direction shall be exercised by the
following Project Engineer:

            Name           Office symbol             Phone Number
         Gary Mayes        SMDC-TC-MT-AC             256-955-4904

         b. Technical direction, as defined in this clause is the process by
which the progress of the contractor's technical efforts are reviewed and
evaluated and guidance for the continuation of the effort is provided by the
Government. It also includes technical discussions and, to the extent required
and specified elsewhere in this contract, defining interfaces between
contractors; approving test plans; approving preliminary and critical design
reviews; participating in meetings; providing technical and management
information; and responding to request for research and development planning
data on all matters pertaining to this contract. The contractor agrees to accept
technical direction only in the form and procedure set forth herein below.

         c. Except for routine discussions having no impact on contractor
performance, any and all technical direction described in paragraph b. above
shall only be authorized and binding on the contractor when issued in writing
and signed by a Government official designated in a. above. The Technical
Direction shall not effect or result in a change within the meaning of the
"CHANGES" clause, or any other change in the Scope of Work, price, schedule, or
the level of effort required by the contract. Such changes must be executed by
the Contracting Officer as a Modification-Change Order, or as a
Modification-Supplemental Agreement, as appropriate. It is emphasized that such
changes are outside the authority of the Government officials designated in a.
above who are not authorized to issue any directions which authorize the
contractor to exceed or perform less than the contract requirements.
Notwithstanding any provision to the contrary in any Technical Directive, the
estimated cost of this contract, and, if this contract is incrementally funded,
the amount of funds allotted, shall not be increased or deemed to be increased
by issuance thereof.

KEY PERSONNEL: Key personnel (e.g., Principal Investigator, Principal Engineer,
or equivalent) must be employed with the firm at the time of award and shall be
maintained, to the maximum extent possible, throughout this program. The
Principal Investigator must spend more than one-half of his/her time with the
firm. Should changes be necessary, the contractor shall notify the Government in
writing of the proposed substitutes and their qualifications. Implementation of
the changes shall be subject to Government approval.

CONTRACT SECURITY CLASSIFICATION:

         a. This contract is unclassified and does not contain security
requirements or a Contract Security Classification Specification, DD Form 254.

         b. In accordance with restrictions required by Executive Order 12470,
the Arms Export Control Act (Title 22, USC) (Sec 275), the International Traffic
in Arms Regulation (ITAR), or DoD Directive 5230.25, Withholding of Unclassified
Technical Data from Public Disclosure, no foreign nationals will be permitted to
work on a contract without the express permission of the Contracting Officer.

<PAGE>

                                                                DASG60-02-C-0029

                                                                   Page 11 of 17

         c. Should the government determine that the technology has developed to
a point where the information warrants protection under Executive Order 12958,
Classified National Security Information, a DD Form 254 and an approved
classification guide will be issued to the contractor and appropriate steps will
be taken under the contract to protect the material.

METRIC AND PRODUCT ASSURANCE REQUIREMENTS: The contractor shall assure that all
deliverables under this contract shall meet industry standards of quality and,
where practical, metric measurements.

SAFETY HAZARDS: The contractor shall identify, control, and document the hazards
associated with this effort and the control methods necessary to eliminate or
control the hazards. Significant items shall be addressed in status meetings and
included in the final report.

ENVIRONMENTAL: The contractor agrees to the following:

         a. All activities performed under this contract shall be conducted in
accordance with Federal, State, and local environmental laws and regulations.

         b. Any facility to be used in the performance of this contract shall be
in compliance with all Federal, State, and local environmental laws and
regulations for its intended use.

PROPOSAL PAGES WITH PROPRIETARY MARKINGS: Pages 2 through 3 of the contractor's
SBIR Phase III proposal are incorporated by reference only. With regard to the
restriction set forth in the proprietary legend at the bottom of page 1 of
contractor's proposal, the contractor agrees that the Government, including
Government support contractors who have signed appropriate non-disclosure
agreements, may duplicate, use and/or disclose the proprietary pages of his
proposal within the Government, to the extent necessary to implement and
administer this contract. Such proprietary pages shall retain the proprietary
markings placed thereon by the contractor. This special provision does not
address or affect the respective rights of the parties in technical
data/software delivered to the Government under this contract.

MATERIAL/EQUIPMENT: The contractor will provide all material/equipment necessary
to produce and test 3DANN-R Digitial Motherboard and 3DANN-R Analog
Daughterboard. The Government will acquire title to the following listed
equipment when it is acquired, produced, or first used by the contractor in the
performance of this contract. The Contracting Officer will give disposition
instructions for such property at the end of the contract period of performance.

                  DESCRIPTION

                  3DANN-R Digital Motherboard

                  3DANN-R Analog Daughterboard

MINIMUM INSURANCE LIABILITY: Pursuant to the requirements of the contract clause
52.228-7, "Insurance - Liability to Third Persons," the contractor shall obtain
and maintain at least the following kinds of insurance and minimum liability
coverage during any period of contract performance:

         a.       Workman's Compensation and Employers' Liability Insurance:
Compliance with applicable workmen's compensation and occupational disease
statutes is required. Employers' liability coverage in the minimum amount of
$100,000 is required.

         b.       General Liability Insurance: Bodily injury liability
insurance, in the minimum limits of $500,000 per occurrence, is required on the
comprehensive form of policy; however, property damage liability insurance is
not required.

<PAGE>

                                                                DASG60-02-C-0029

                                                                   Page 12 of 17

         c.       Automobile Liability Insurance: This insurance is required on
the comprehensive form of policy and shall provide bodily injury liability and
property damage liability covering the operation of all automobiles used in
connection with the performance of the contract. At least the minimum limits of
$200,000 per person and $500,000 per occurrence for bodily injury and $20,000
per occurrence for property damage is required.

PATENTS - REPORTING OF SUBJECT INVENTIONS:

         a.       The interim and final invention reports shall be submitted on
DD Form 882, Report of Inventions and Subcontracts, see
http://www.smdc.army.mil/Contracts/Contracts.html and click on the Special
Announcements link to see the instructions. In accordance with DFARS
252.227-7039 and FAR 52.227-12, interim reports shall be furnished every twelve
(12) months and final reports shall be furnished within three (3) months after
completion of the contracted work. In accordance with FAR 27.305-3(e), when a
contractor fails to disclose a subject invention the applicable withholding of
payments provision may be invoked.

         b.       The contractor shall include the clause at DFARS 252.227-7039
in all subcontracts with small businesses and non profit organizations,
regardless of tier, for experimental, developmental, or research work.

         c.       The prime contractor shall account for the interim and final
invention reports submitted by the subcontractor.

ELECTRONIC DELIVERY OF DATA AND OTHER CORRESPONDENCE TO CONTRACTING ACTIVITY
REPRESENTATIVES:

         a.       This contract requires the delivery of contractual
correspondence and CDRL items to the Contracting Activity Representatives (the
Contract Specialist and the Technical Monitor identified in this contract). It
is highly desired, but not required, that these documents be delivered
electronically by e-mail/e-mail attachment. (The remainder of CDRL distribution
shall be by hardcopy.) Delivery of data and correspondence via e-mail typically
provides for quicker and more efficient communications between the contractor
and the Contracting Activity Representatives and better serves the needs of all
involved.

         b.       If the contractor elects to utilize electronic delivery, the
following guidelines shall to be used:

                  1.       When printed as well as electronic copies are
delivered, the electronic version of a document must be identical to the printed
copy delivered.

                  2.       As a standard file naming convention, each e-mail
message subject line shall begin with "SBIR Contract DASG60-02-C-0029,"
(complete using the Contract Number of this Contract) and be followed by an
additional as appropriate.

Example:          "SBIR Contract DASG6O-O1-M-0000, CDRL 0001 Submission"

                  3.       Submittals should be readable on Windows NT 4.0
platforms using Microsoft Office 2000.

YEAR 2000 COMPLIANCE:

The Contractor shall ensure products provided under this contract, to include
hardware, software, firmware, and middleware, whether acting alone or combined
as a system, are Year 2000 compliant as defined in FAR Part 39.

<PAGE>

                                                                DASG60-02-C-0029

                                                                   Page 13 of 17

SECTION I Contract Clauses

CLAUSES INCORPORATED BY REFERENCE:

<TABLE>
<S>             <C>                                                                 <C>
52.202-1        Definitions                                                         DEC 2001
52.203-3        Gratuities                                                          APR 1984
52.203-5        Covenant Against Contingent Fees                                    APR 1984
52.203-6        Restrictions On Subcontractor Sales To The Government               JUL 1995
52.203-7        Anti-Kickback Procedures                                            JUL 1995
52.203-8        Cancellation, Rescission, and Recovery of Funds for Illegal or      JAN 1997
                Improper Activity
52.203-10       Price Or Fee Adjustment For Illegal Or Improper Activity            JAN 1997
52.203-12       Limitation On Payments To Influence Certain Federal Transactions    JUN 1997
52.204-4        Printed or Copied Double-Sided on Recycled Paper                    AUG 2000
52.209-6        Protecting the Government's Interest When Subcontracting With       JUL 1995
                Contractors Debarred, Suspended, or Proposed for Debarment
52.211-15       Defense Priority And Allocation Requirements                        SEP 1990
52.215-2        Audit and Records--Negotiation                                      JUN 1999
52.215-8        Order of Precedence--Uniform Contract Format                        OCT 1997
52.215-10       Price Reduction for Defective Cost or Pricing Data                  OCT 1997
52.215-12       Subcontractor Cost or Pricing Data                                  OCT 1997
52.215-13       Subcontractor Cost or Pricing Data--Modifications                   OCT 1997
52.215-14       Integrity of Unit Prices                                            OCT 1997
52.215-15       Pension Adjustments and Asset Reversions                            DEC 1998
52.215-16       Facilities Capital Cost of Money                                    OCT 1997
52.215-18       Reversion or Adjustment of Plans for Postretirement Benefits (PRB)  OCT 1997
                Other than Pensions
52.215-19       Notification of Ownership Changes                                   OCT 1997
52.216-7        Allowable Cost And Payment                                          FEB 2002
52.216-8        Fixed Fee                                                           MAR 1997
52.219-6        Notice Of Total Small Business Set-Aside                            JUL 1996
52.219-8        Utilization of Small Business Concerns                              OCT 2000
52.219-14       Limitations On Subcontracting                                       DEC 1996
52.222-2        Payment For Overtime Premiums                                       JUL 1990
52.222-3        Convict Labor                                                       AUG 1996
52.222-21       Prohibition Of Segregated Facilities                                FEB 1999
52.222-26       Equal Opportunity                                                   APR 2002
52.222-35       Equal Opportunity For Special Disabled Veterans, Veterans of the    DEC 2001
                Vietnam Era and Other Eligible Veterans
52.222-36       Affirmative Action For Workers With Disabilities                    JUN 1998
52.222-37       Employment Reports On Special  Disabled Veterans, Veterans Of The   DEC 2001
                Vietnam Era and Other Eligible Veterans
52.223-6        Drug Free Workplace                                                 MAY 2001
52.223-14       Toxic Chemical Release Reporting                                    OCT 2000
52.225-11       Buy American Act--Balance of Payments Program--Construction         FEB 2002
                Materials Under Trade Agreements
52.225-13       Restrictions on Certain Foreign Purchases                           JUL 2000
52.226-1        Utilization Of Indian Organizations And Indian-Owned Economic       JUN 2000
                Enterprises
52.227-1 Alt I  Authorization And Consent (Jul 1995) -  Alternate I                 APR 1984
52.227-2        Notice And Assistance Regarding Patent And Copyright Infringement   AUG 1996
</TABLE>

<PAGE>

                                                                DASG60-02-C-0029

                                                                   Page 14 of 17
<TABLE>
<S>             <C>                                                                 <C>
52.227-11       Patent Rights--Retention By The Contractor (Short Form)             JUN 1997
52.228-7        Insurance--Liability To Third Persons                               MAR 1996
52.232-9        Limitation On Withholding Of Payments                               APR 1984
52.232-17       Interest                                                            JUN 1996
52.232-22       Limitation Of Funds                                                 APR 1984
52.232-23       Assignment Of Claims                                                JAN 1986
52.232-25       Prompt Payment                                                      FEB 2002
52.232-33       Payment by Electronic Funds Transfer--Central Contractor            MAY 1999
                Registration
52.233-1        Disputes                                                            DEC 1998
52.233-3 Alt I  Protest After Award (Aug 1996) -  Alternate I                       JUN 1985
52.237-10       Identification of Uncompensated Overtime                            OCT 1997
52.242-1        Notice of Intent to Disallow Costs                                  APR 1984
52.242-3        Penalties for Unallowable Costs                                     MAY 2001
52.242-4        Certification of Final Indirect Costs                               JAN 1997
52.242-13       Bankruptcy                                                          JUL 1995
52.243-2 Alt V  Changes--Cost-Reimbursement (Aug 1987) -  Alternate V               APR 1984
52.244-2 Alt I  Subcontracts (Aug 1998) -  Alternate I                              AUG 1998
52.244-5        Competition In Subcontracting                                       DEC 1996
52.245-5        Government Property (Cost-Reimbursement Time-And-Materials, Or      JAN 1986
                Labor Hour Contracts)
52.246-23       Limitation Of Liability                                             FEB 1997
52.246-24       Limitation Of Liability-High Value Items                            FEB 1997
52.246-25       Limitation Of Liability--Services                                   FEB 1997
52.247-1        Commercial Bill Of Lading Notations                                 APR 1984
52.249-6        Termination (Cost Reimbursement)                                    SEP 1996
52.249-14       Excusable Delays                                                    APR 1984
52.252-6        Authorized Deviations In Clauses                                    APR 1984
52.253-1        Computer Generated Forms                                            JAN 1991
252.203-7001    Prohibition On Persons Convicted of Fraud or Other                  MAR 1999
                Defense-Contract-Related Felonies
252.203-7002    Display Of DOD Hotline Poster                                       DEC 1991
252.204-7000    Disclosure Of Information                                           DEC 1991
252.204-7003    Control Of Government Personnel Work Product                        APR 1992
252.204-7004    Required Central Contractor Registration                            NOV 2001
252.205-7000    Provisions Of Information To Cooperative Agreement Holders          DEC 1991
252.209-7000    Acquisition From Subcontractors Subject To On-Site Inspection Under NOV 1995
                The Intermediate Range Nuclear Forces (INF) Treaty
252.209-7004    Subcontracting With Firms That Are Owned or Controlled By The       MAR 1998
                Government of a Terrorist Country
252.215-7000    Pricing Adjustments                                                 DEC 1991
252.215-7002    Cost Estimating System Requirements                                 OCT 1998
252.219-7003    Small, Small Disadvantaged and Women-Owned Small Business           APR 1996
                Subcontracting Plan (DOD Contracts)
252.225-7012    Preference For Certain Domestic Commodities                         AUG 2000
252.225-7026    Reporting Of Contract Performance Outside The United States         JUN 2000
252.225-7031    Secondary Arab Boycott Of Israel                                    JUN 1992
252.227-7016    Rights in Bid or Proposal Information                               JUN 1995
252.227-7017    Identification and Assertion of Use, Release, or Disclosure         JUN 1995
                Restrictions
252.227-7018    Rights in Noncommercial Technical Data and Computer Software--Small JUN 1995
                Business Innovation Research (SBIR) Program
252.227-7019    Validation of Asserted Restrictions--Computer Software              JUN 1995
252.227-7027    Deferred Ordering Of Technical Data Or Computer Software            APR 1988
252.227-7030    Technical Data--Withholding Of Payment                              MAR 2000
</TABLE>

<PAGE>

                                                                DASG60-02-C-0029

                                                                   Page 15 of 17
<TABLE>
<S>             <C>                                                                 <C>
252.227-7034    Patents--Subcontracts                                               APR 1984
252.227-7037    Validation of Restrictive Markings on Technical Data                SEP 1999
252.227-7039    Patents--Reporting Of Subject Inventions                            APR 1990
252.235-7010    Acknowledgment of Support and Disclaimer                            MAY 1995
252.235-7011    Final Scientific or Technical Report                                SEP 1999
252.242-7000    Postaward Conference                                                DEC 1991
252.242-7004    Material Management And Accounting System                           DEC 2000
252.243-7002    Requests for Equitable Adjustment                                   MAR 1998
252.245-7001    Reports Of Government Property                                      MAY 1994
252.247-7023    Transportation of Supplies by Sea                                   MAR 2000
252.247-7024    Notification Of Transportation Of Supplies By Sea                   MAR 2000
</TABLE>

CLAUSES INCORPORATED BY FULL TEXT

52.244-6     SUBCONTRACTS FOR COMMERCIAL ITEMS (DEC 2001)

(a) Definitions.  As used this clause--

"Commercial item", has the meaning contained in the clause at 52.202-1,
Definitions.

"Subcontract", includes a transfer of commercial items between divisions,
subsidiaries, or affiliates of the Contractor or subcontractor at any tier.

(b) To the maximum extent practicable, the Contractor shall incorporate, and
require its subcontractors at all tiers to incorporate, commercial items or
nondevelopmental items as components of items to be supplied under this
contract.

(c)(1) The Contractor shall insert the following clauses in subcontracts for
commercial items:

(i)   52.219-8, Utilization of Small Business Concerns (OCT 2000) (15 U.S.C.
637(d)(2) and (3)), in all subcontracts that offer further subcontracting
opportunities. If the subcontract (except subcontracts to small business
concerns) exceeds $500,000 ($1,000,000 for construction of any public facility),
the subcontractor must include 52.219-8 in lower tier subcontracts that offer
subcontracting opportunities.

(ii)  52.222-26, Equal Opportunity (FEB 1999) (E.O. 11246).

(iii) 52.222-35, Equal Opportunity for Special Disabled Veterans, Veterans of
the Vietnam Era and Other Eligible Veterans (DEC 2001) (38 U.S.C. 4212(a)).

(iv)  52.222-36, Affirmative Action for Workers with Disabilities (JUN 1998) (29
U.S.C. 793).

(v)   52.247-64, Preference for Privately Owned U.S.-Flagged Commercial Vessels
(JUN 2000) (46 U.S.C. Appx 1241) (flowdown not required for subcontracts awarded
beginning May 1, 1996).

(2) While not required, the Contractor may flow down to subcontracts for
commercial items a minimal number of additional clauses necessary to satisfy its
contractual obligations.

(d) The Contractor shall include the terms of this clause, including this
paragraph (d), in subcontracts awarded under this contract.

(End of clause)
52.252-2      CLAUSES INCORPORATED BY REFERENCE (FEB 1998)

<PAGE>

                                                                DASG60-02-C-0029

                                                                   Page 16 of 17

This contract incorporates one or more clauses by reference, with the same force
and effect as if they were given in full text. Upon request, the Contracting
Officer will make their full text available. Also, the full text of a clause may
be accessed electronically at this/these address(es):

www.arnet.gov

252.227-7036      DECLARATION OF TECHNICAL DATA CONFORMITY (JAN 1997)

All technical data delivered under this contract shall be accompanied by the
following written declaration:

The Contractor, ____________________, hereby declares that, to the best of its
knowledge and belief, the technical data delivered herewith under Contract No.
_________________ is complete, accurate, and complies with all requirements of
the contract.

Date ____________________________________

Name and Title of Authorized Official ____________________

(End of clause)

<PAGE>

                                                                DASG60-02-C-0029

                                                                   Page 17 of 17

SECTION J List of Documents, Exhibits and Other Attachments

          PART III - LIST OF DOCUMENTS, EXHIBITS, AND OTHER ATTACHMENTS

                         SECTION J - LIST OF ATTACHMENTS

<TABLE>
<CAPTION>
                   TITLE                                                        DATE             # OF PAGES
-------------------------------------------------                              ------            ----------
<S>                                                                            <C>                   <C>
Contract Data Requirements List (DD Form 1423)                                                       5
 Exhibit A with Distribution List, and
 Data Item Descriptions (DD Forms 1664)
 The DIDs are available on the USASMDC
 Web site at http://www.smdc.army.mil.  Click on
 Business, Click on Small Business Innovative Research (SBIR).

Small Business Innovation Research Program Proposal                            4 Apr 02              2
 titled, "Silicon Brain Initiative,"  page 2 through 3,
 incorporated herein by reference.

Contractor's Representations and Certifications are incorporated
 herein by reference.

Public Voucher for Purchases and Services                                        NA                  3
 Other than Personal/Standard Form 1034
 (Sample and Blank Form)
</TABLE>

<PAGE>

<TABLE>
<S>                                         <C>                 <C>                            <C>                  <C>
            AMENDMENT OF SOLICITATION/MODIFICATION OF CONTRACT          1.CONTRACT ID CODE                          PAGE OF PAGES
                                                                                                                       1     2
2. AMENDMENT/MODIFICATION NO.               3. EFFECTIVE DATE   4.REQUISITION/PURCHASE REQ. NO.  5. PROJECT NO. (If applicable)
P00001                                         14-Jun-2002         VH2A935000-01
------------------------------------------------------------------------------------------------------------------------------------
6. ISSUED BY                            CODE W31RPD                7. ADMINISTERED BY (If other than item 6)      CODE S0513A
  US ARMY SPACE AND MISSILE DEFENSE                                DCM-SANTA ANA
  SMDC-CM-AK, BAUGH                                                 34 CIVIC CENTER PLAZA
  258-955-1254                                                     P.O. BOX C 12700
  PO BOX 1500                                                      SANTA ANA CA 92712-2700
  HUNTSVILLE AL 35807-3801
------------------------------------------------------------------------------------------------------------------------------------
8. NAME AND ADDRESS OF CONTRACTOR (No., Street, County, State and Zip code)                   [ ]  9A. AMENDMENT OF SOLICITATION NO.
   IRVINE SENSORS CORPORATION                                                                  -------------------------------------
   3001 RED HILL AVENUE                                                                       [ ]  9B. DATED (SEE ITEM 11)
   BLDG 4                                                                                      -------------------------------------
   COSTA MESA CA 92628-0000                                                                   [X]  10A. MOD OF CONTRACT/ORDER NO.
                                                                                                   DASG60-02-C-0029
                                                                                               -------------------------------------
                                                                                              [ ]  10B. DATED (SEE ITEM 13)
-----------------------------------------------------------------------------------------------    07-May-2002
CODE 54266                                  FACILITY CODE
------------------------------------------------------------------------------------------------------------------------------------
                             11. THIS ITEM ONLY APPLIES TO AMENDMENTS OF SOLICITATIONS
------------------------------------------------------------------------------------------------------------------------------------
[ ] The above numbered solicitation is amended as set forth in item 14.                        [ ] is extended [ ] is not extended
    The hour and date specified for receipt of offer
    Offer must acknowledge receipt of this amendment prior to the hour and date specified in the solicitation or as
    amended by one of the following methods:
    (a) By completing Items 8 and 15, and returning   __________ copies of the amendment; (b) By acknowledging
    receipt of this amendment on each copy of the offer submitted;
    or (c) By separate letter or telegram which includes a reference to the solicitation and amendment numbers.
    FAILURE OF YOUR ACKNOWLEDGEMENT TO BE RECEIVED AT THE PLACE DESIGNATED FOR THE RECEIPT OF OFFERS PRIOR TO
    THE HOUR AND DATE SPECIFIED MAY RESULT IN REJECTION OF YOUR OFFER. If by virtue of this amendment you desire
    to change an offer already submitted, such change may be made by telegram or letter,
    provided each telegram or letter makes reference to the solicitation and this amendment, and is received prior
    to the opening hour and date specified.
------------------------------------------------------------------------------------------------------------------------------------
12. ACCOUNTING AND APPROPRIATION DATA (If required)
    See schedule
------------------------------------------------------------------------------------------------------------------------------------
                                            13. THIS ITEM APPLIES ONLY TO MODIFICATIONS OF CONTRACTS/ORDERS.
                                                IT MODIFIES THE CONTRACT/ORDER NO. AS DESCRIBED IN ITEM 14.
------------------------------------------------------------------------------------------------------------------------------------
[ ] A. THIS CHANGE ORDER IS ISSUED PURSUANT TO: (Specify authority) THE CHANGES SET FORTH IN ITEM 14 ARE MADE IN THE
       CONTRACT ORDER NO. IN ITEM 10A.
------------------------------------------------------------------------------------------------------------------------------------
[ ] B. THE ABOVE NUMBERED CONTRACT/ORDER IS MODIFIED TO REFLECT THE ADMINISTRATIVE CHANGES (such as changes in paying
       office, appropriation date, etc.) SET FORTH IN ITEM 14, PURSUANT TO THE AUTHORITY OF FAR 43.103(B).
------------------------------------------------------------------------------------------------------------------------------------
[ ] C. THIS SUPPLEMENTAL AGREEMENT IS ENTERED INTO PURSUANT TO AUTHORITY OF:
------------------------------------------------------------------------------------------------------------------------------------
[X] D. OTHER (Specify type of modification and authority)
    UNILATERAL: Pursuant to DFARS 252.232-7007
------------------------------------------------------------------------------------------------------------------------------------
E  IMPORTANT     Contractor [X]  is not, [ ] is required to sign this document and return   _______ copies to the issuing office.
------------------------------------------------------------------------------------------------------------------------------------
14 DESCRIPTION OF AMENDMENT /MODIFICATION (Organized by UCF section headings, including solicitation/contract
   subject matter where feasible.)
SEE PAGE 2.

Except as provided herein, all terms and conditions of the document referenced in Item 9A or 10A, as
heretofore changed, remains unchanged and in full force and effect.
------------------------------------------------------------------------------------------------------------------------------------
15A. NAME AND TITLE OF SIGNER (Type or print)                   16A. NAME AND TITLE OF CONTRACTING OFFICER (Type or print)
     John C. Carson, President                                  NICOLE BAUGH/CONTRACTING OFFICER
------------------------------------------------------------------------------------------------------------------------------------
15B. CONTRACTOR/OFFEROR                      15C. DATE SIGNED    16B. UNITED STATES OF AMERICA    16C. DATE SIGNED
     Irvine Sensors Corporation                  6/14/02
     /s/ John C. Carson                                              BY: /s/ Nicole Baugh        14-Jun-2002
     -----------------------------                                   -------------------------
     (Signature of person authorized to sign)                        (Signature of contracting officer)
------------------------------------------------------------------------------------------------------------------------------------
EXCEPTION TO SF 30                                        30-105-04                                    STANDARD FORM 30 (Rev. 10-83)
APPROVED BY OIRM 11-84                                                                                 Prescribed by GSA
                                                                                                       FAR (48 CFR) 53.243
</TABLE>

<PAGE>

                                                                DASG60-02-C-0029
                                                                          P00001
                                                                     Page 2 of 2

SECTION  SF 30 BLOCK 14 CONTINUATION PAGE

SUMMARY OF CHANGES

Changes in Section G

Summary for the Payment Office

As a result of this modification, the total funded amount of the contract is
increased by $308,998.00 from $650,000.00 to $958,998.00

CLIN :0001
AA: 972 0400.2501 36-6011 P30603175C00 255Y VH2A935000 S01021 VH2A93500/2HHA13/H
is increased by $308,998.00 from $650,000.00 to $958,998.00

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00042-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00042-of-00352.parquet"}]]