Document:

<PAGE>

                                                                    EXHIBIT 10.1

<TABLE>
-----------------------------------------------------------------------------------------------------------------------------------
           <S>                                <C>                                       <C>           <C>
           AWARD/CONTRACT                     1. THIS CONTRACT IS A RATED ORDER         RATING        PAGE OF PAGES
                                              UNDER DPAS (15 CFR 350)                          DO-A7    1       16
-----------------------------------------------------------------------------------------------------------------------------------
2. CONTRACT (PROC. INST. IDENT.) NO.          3. EFFECTIVE DATE         4. REQUISITION/PURCHASE REQUEST/PROJECT NO.
             F30602-02-C-0030                  15 FEB 2002                                      See Section G
-----------------------------------------------------------------------------------------------------------------------------------
5. ISSUED BY   AFRL/IFKD                        CODE  FAB750            6.  ADMINISTERED BY (IF OTHER THAN ITEM 5)   CODE  SO513A
USAF, AFMC                                            ------            DCMA SANTA ANA                                     ------
AIR FORCE RESEARCH LABORATORY                                           34 CIVIC CENTER PLZ
26 ELECTRONIC PARKWAY                                                   ROOM 813A
ROME NY 13441-4514                                                      SANTA ANA CA 92701
MARIE E. VISCELLI    (315) 330-1954
Marie.Viscelli@rl.af.mil
                                                                        SCD: C     PAS:(NONE)
-----------------------------------------------------------------------------------------------------------------------------------
7. NAME AND ADDRESS OF CONTRACTOR (NO, STREET, CITY, COUNTY, STATE AND ZIP CODE)   8. DELIVERY

IRVINE SENSORS CORPORATION                                                          [ ] FOB Origin     [X] Other (see below)
3001 REDHILL AVE BLDG 4                                                           -------------------------------------------------
COSTA MESA CA 92626                                                                9. DISCOUNT FOR PROMPT PAYMENT
 (714) 444-8760                                                                     N

                                                                                  -------------------------------------------------
                                                                                   10. SUBMIT INVOICES            ITEM
                                                                                   (4 COPIES UNLESS OTHERWISE
--------------------------------------------------------------------------------   SPECIFIED) TO                    See Block
 CAGE CODE 54266                              FACILITY CODE                        THE ADDRESS SHOWN IN:                  12
-----------------------------------------------------------------------------------------------------------------------------------
11. SHIP TO/MARK FOR              CODE                           12. PAYMENT WILL BE MADE BY     CODE               HQO339
                                          ---------------------  DFAS-CO/WEST ENTITLEMENT OPER              -----------------------
See Section F                                                    P O BOX 182381
                                                                 COLUMBUS OH 43218-2381

                                                                 EFT: T
-----------------------------------------------------------------------------------------------------------------------------------
13. AUTHORITY FOR OTHER THAN FULL AND OPEN COMPETI-              14. ACCOUNTING AND APPROPRIATION DATA
    TION:                                                        See Section G

-----------------------------------------------------------------------------------------------------------------------------------
15A. ITEM NO.                   15B. SUPPLIES/SERVICES           15C. QUANTITY       15D. UNIT    15E. UNIT PRICE    15F. AMOUNT
  See Section B

-----------------------------------------------------------------------------------------------------------------------------------
                                                                 15G. TOTAL AMOUNT OF CONTRACT   $   749,777.00
-----------------------------------------------------------------------------------------------------------------------------------
                                                        16. Table Of Contents
-----------------------------------------------------------------------------------------------------------------------------------
     SEC               DESCRIPTION                   PAGE(S)      SEC               DESCRIPTION                             PAGE(S)
-----------------------------------------------------------------------------------------------------------------------------------
                  PART I - THE SCHEDULE                                       PART II - CONTRACT CLAUSES
-----------------------------------------------------------------------------------------------------------------------------------
 [X]  A    SOLICITATION/CONTRACT FORM                  1      []   I    CONTRACT CLAUSES                                      12
-----------------------------------------------------------------------------------------------------------------------------------
 [X]  B    SUPPLIES OR SERVICES AND PRICES/COSTS       2            PART III - LIST OF DOCUMENTS, EXHIBITS & ATTACHMENTS
-----------------------------------------------------------------------------------------------------------------------------------
 [X]  C    DESCRIPTION/SPECS./WORK STATEMENT           4      []   J    LIST OF ATTACHMENTS                                   16
-----------------------------------------------------------------------------------------------------------------------------------
 [X]  D    PACKAGING AND MARKING                       5              PART IV - REPRESENTATIONS AND INSTRUCTIONS
-----------------------------------------------------------------------------------------------------------------------------------
 [X]  E    INSPECTION AND ACCEPTANCE                   6           K    REPRESENTATIONS, CERTIFICATIONS AND
------------------------------------------------------------            OTHER STATEMENTS OF OFFERORS
 [X]  F    DELIVERIES OR PERFORMANCE                   7
-----------------------------------------------------------------------------------------------------------------------------------
 [X]  G    CONTRACT ADMINISTRATION DATA                9           L    INSTRS., CONDS., AND NOTICES TO
-----------------------------------------------------------------------------------------------------------------------------------
 [X]  H    SPECIAL CONTRACT REQUIREMENTS               11          M    EVALUATION FACTORS FOR AWARD
-----------------------------------------------------------------------------------------------------------------------------------
                                   CONTRACTING OFFICER WILL COMPLETE ITEM 17 OR 18 AS APPLICABLE
-----------------------------------------------------------------------------------------------------------------------------------

17.    [X]  Contractor's Negotiated Agreement                 18.  [ ] Award (Contractor is not required to sign this document).
(Contractor is required to sign this document and             Your offer on Solicitation Number ___ including the additions or
return 1 copies to issuing office.) Contractor                changes made by you which additions or changes set forth in full
       -                                                      above, is hereby accepted as to items listed above and on any
agrees to furnish and deliver all items or perform            continuation sheets. This award consummates the contract which
all services set forth or otherwise identified above          consists of the following documents: (a) the Government's solicitation
and on any continuation sheets for the consideration          and your offer, and (b) this award/contract. No further contractual
stated herein. The rights and obligations of the              document is necessary.
parties to this contract shall be subject to and
governed by the following documents: (a) this
award/contract, (b) the solicitation, if any, and
(c) such provisions, representations, certifications,
and specifications, as are attached or incorporated by
reference herein. (Attachments are listed herein.)
-----------------------------------------------------------------------------------------------------------------------------------
19A. NAME AND TITLE OF SIGNER (TYPE OR PRINT)                 20A. NAME OF CONTRACTING OFFICER
JOHN C. CARSON                                                RENEE F. ARCURI
CHIEF OPERATING OFFICER
-----------------------------------------------------------------------------------------------------------------------------------
19B. NAME OF CONTRACTOR                   19C. Date Signed     20B. United States of America                 20C. Date Signed
                                          05 February 2002
 by /s/ JOHN C. CARSON                                         by /s/ Renee F. Arcuri                        15 FEB 2002
  ---------------------------------------                         ------------------------------------------
(signature of person authorized to sign)                           (signature of Contracting Officer)
-----------------------------------------------------------------------------------------------------------------------------------
NSN 7540-01-152-8069                                                                                    STANDARD FORM 26 (Rev 4-85)
Previous Editions unusable                                                                 Prescribed by GSA FAR (48 CFR) 53.214(a)
ConWrite Version 4.2.3                                                                               Created 16 Jan 2002   2:03 PM
</TABLE>

<PAGE>

PART I - THE SCHEDULE
SECTION B - SUPPLIES OR SERVICES AND PRICES/COSTS
================================================================================

                                               QTY                    Unit Price
ITEM     SUPPLIES OR SERVICES                  Purch Unit      Total Item Amount
--------------------------------------------------------------------------------
0001                                           1                 EST $749,777.00
                                               LO                EST $749,777.00
         Noun:                   MODULE/TEST
         ACRN:                   9
         NSN:                    N -  Not Applicable
         Contract type:          U - COST PLUS FIXED FEE
         Inspection:             DESTINATION
         Acceptance:             DESTINATION
         FOB:                    DESTINATION
         Descriptive Data:

         A.   Module/Test in accordance with paragraph 4.0 of Attachment No. 1,
         Statement of Work entitled "Stacked Adaptive Computing Module" dated 28
         January 2002.

         B.   Payment instructions for the subline items shown below are
         contained in Section G.

000101
         Noun:                   Funding Info Only
         ACRN:                   AA                $375,000.00
         Descriptive Data:

         AA - $375,000.00

0002
         Noun:                   DATA
         Exhibit:                A
         NSN:                    N - Not Applicable
         DD1423 is Exhibit:      A
         Descriptive Data:

         Data in accordance with Exhibit A, Contract Data Requirements List
         dated 28  January 2002. Quantity and delivery schedule shall be as
         specified on Exhibit A.

<PAGE>

PART I - THE SCHEDULE
SECTION B - SUPPLIES OR SERVICES AND PRICES/COSTS
================================================================================

I. NOTICE: The following contract clauses pertinent to this section are hereby
incorporated by reference:

AIR FORCE MATERIEL COMMAND FEDERAL ACQUISITION REGULATION SUPPLEMENT CONTRACT
-----------------------------------------------------------------------------
CLAUSES
-------

5352.232-9001      IMPLEMENTATION OF LIMITATION OF FUNDS (AFMC) (JUL 1997)
                   Para (a), CLINs: '0001 and 0002'
                   Para (a), Time Period ("through" date): '30 SEP 2002'
                   Para (a), Sum allotted to this contract and available for
                   payment of costs is '$350,472.00'
                   Para (b), Additional amount obligated is  '$24,528.00'
                   Para (b), CLINS: '0001 and 0002'

II. NOTICE: The following contract clauses pertinent to this section are hereby
incorporated in full text:

AIR FORCE MATERIEL COMMAND FEDERAL ACQUISITION REGULATION SUPPLEMENT CONTRACT
-----------------------------------------------------------------------------
CLAUSES IN FULL TEXT
--------------------

5352.216-9001 PAYMENT OF FEE (AFMC)(CPFF)(JUL 1997)

The estimated cost and fee for this contract are shown below. The applicable
fixed fee or target fee set forth below may be increased or decreased only by
negotiation and modification of the contract for added or deleted work. As
determined by the contracting officer, it shall be paid as it accrues, in
regular installments based upon the percentage of completion of work (or the
expiration of the agreed-upon period(s) for term contracts).

Estimated Cost $700,079.00
Fee $49,698.00

<PAGE>

PART I - THE SCHEDULE
SECTION C - DESCRIPTION/SPECS./WORK STATEMENT
================================================================================

NOTICE: The following contract clauses pertinent to this section are hereby
incorporated in full text:

OTHER CONTRACT CLAUSES IN FULL TEXT
-----------------------------------

C003   INCORPORATED DOCUMENTS/REQUIREMENTS (APR 1998)

1. The following documents, as they may be amended below, are a part of this
contract:

   (a) Attachment No. 1, Statement of Work entitled, "Stacked Adaptive
Computing Module", dated 28 January 2002.

   (b) Exhibit A entitled "Contract Data Requirements List," dated 28 January
2002.

<PAGE>

PART I - THE SCHEDULE
SECTION D - PACKAGING AND MARKING
================================================================================

NO CLAUSES OR PROVISIONS IN THIS SECTION

<PAGE>

PART I - THE SCHEDULE
SECTION E - INSPECTION AND ACCEPTANCE
================================================================================

I. NOTICE: The following contract clauses pertinent to this section are
hereby incorporated by reference:

A. FEDERAL ACQUISITION REGULATION CONTRACT CLAUSES
--------------------------------------------------

52.246-08      INSPECTION OF RESEARCH AND DEVELOPMENT -- COST-REIMBURSEMENT (MAY
               2001)

B. DEFENSE FEDERAL ACQUISITION REGULATION SUPPLEMENT CONTRACT CLAUSES
---------------------------------------------------------------------

252.246-7000   MATERIAL INSPECTION AND RECEIVING REPORT (DEC 1991)

II. NOTICE: The following contract clauses pertinent to this section are hereby
incorporated in full text:

OTHER CONTRACT CLAUSES IN FULL TEXT
-----------------------------------

E007 INSPECTION AND ACCEPTANCE AUTHORITY (APR 1998)

Inspection and acceptance for all Contract and Exhibit Lines or Subline Items
shall be accomplished by the Program Manager, Air Force Research Laboratory,
Rome, NY.

<PAGE>

PART 1 - THE SCHEDULE
SECTION F - DELIVERIES OR PERFORMANCE
================================================================================

<TABLE>
<CAPTION>
                                                     SHIP      MARK     TRANS
ITEM         SUPPLIES SCHEDULE DATA   QTY            TO        FOR      PRI              DATE
---------------------------------------------------------------------------------------------
<S>          <C>                      <C>            <C>       <C>      <C>             <C>

0001                                  1              FA8750                             ASREQ
</TABLE>

             Noun:                    MODULE/TEST
             ACRN:                    9
             Descriptive Data:

             Delivery twenty-four (24) months after contract effective date.

             A Kickoff Meeting shall be held at AFRL Rome NY
             within 30 days after contract effective date.

             Interim Test at AFRL coordinated between Contractor and Government

             SHIP HARDWARE TO:

                    ATTN: Transportation Officer, FA8750
                    Air Force Research Laboratory/IFOLSX
             Marked For: AFRL/IFTC/V. ROSS/4384
             Contract No.: F30602-02-C-0030
                    120 Electronic Parkway
                    Rome NY 13441-4503

<PAGE>

PART I - THE SCHEDULE
SECTION F - DELIVERIES OR PERFORMANCE
================================================================================

I. NOTICE: The following contract clauses pertinent to this section are hereby
incorporated by reference:

FEDERAL ACQUISITION REGULATION CONTRACT CLAUSES
-----------------------------------------------

52.242-15        STOP-WORK ORDER (AUG 1989) - ALTERNATE I (APR 1984)

II. NOTICE: The following contract clauses pertinent to this section are hereby
incorporated in full text:

OTHER CONTRACT CLAUSES IN FULL TEXT
-----------------------------------

F005 DELIVERY OF REPORTS (OCT 1998)

         (a) All data shall be delivered in accordance with the delivery
schedule shown on the Contract Data Requirements List, attachments, or as
incorporated by reference.

         (b) All reports and correspondence submitted under this contract shall
include the contract number and project number and be forwarded prepaid. A copy
of the letters of transmittal shall be delivered to the Procuring Contracting
Officer (PCO) and Administrative Contracting Officer (ACO). The addresses are
set forth on the contract award cover page. All other address(es) and code(s)
for consignee(s) are as set forth in the contract or incorporated by reference.

<PAGE>

PART 1 - THE SCHEDULE
SECTION G -  CONTRACT ADMINISTRATION DATA
================================================================================

<TABLE>
<CAPTION>
                                                                             Obligation
ACRN      Appropriation/Lmt Subhead/Supplemental Accounting Data                 Amount
---------------------------------------------------------------------------------------
<S>       <C>                                                               <C>
AA                                                                          $375,000.00
          57    23600 292 4702 663005 000000 24149 65502F 503000 F03000
          Funding breakdown:       On CLIN 000101:   $375,000.00
          PR/MIPR:                 FA87500204149     $375,000.00
          Descriptive data:
          Job Order No.:  30052204
          Purchase Request No.: T-2-4149
</TABLE>

<PAGE>

PART 1 - THE SCHEDULE
SECTION G - CONTRACT ADMINISTRATION DATA
================================================================================

NOTICE: The following contract clauses pertinent to this section are hereby
incorporated in full text:

OTHER CONTRACT CLAUSES IN FULL TEXT
-----------------------------------

G006 INVOICE AND PAYMENT - COST REIMBURSEMENT (FEB 1997)

Invoices (or public vouchers), supported by a statement of cost for performance
under this contract, shall be submitted to the cognizant Defense Contract Audit
Agency (DCAA) office. Under the provisions of DFARS 242.803(b), the DCAA
auditor, is designated as the authorized representative of the contracting
officer (CO) for examining vouchers received directly from the contractor.

<PAGE>

PART I - THE SCHEDULE
SECTION H - SPECIAL CONTRACT REQUIREMENTS
--------------------------------------------------------------------------------

NOTICE: The following contract clauses pertinent to this section are hereby
incorporated in full text:

A. OTHER CONTRACT CLAUSES IN FULL TEXT
--------------------------------------

H025 INCORPORATION OF SECTION K (OCT 1998)

Section K of the solicitation is hereby incorporated by reference.

IFK-H001 RECEIVING REPORT (DD FORM 250) MAILING ADDRESS (JAN 2002)

(a) Submit original DD Form(s) 250 for all items deliverable under this contract
(e.g., hardware, software, services, exhibit line items unless otherwise
specified on the Contract Data Requirements List (CDRL)), etc.) to the following
address:

          Air Force Research Laboratory/IFTM
          FURTHER MARKED FOR: IFTC/V. Ross/4384
          32 Brooks Road
          Rome NY 13441-4114

          (b) In addition, a copy of the DD Form 250 shall accompany each
shipment for all deliverable items unless otherwise specified on the CDRL.
Shipment addresses are specified in Section F of the schedule and/or on the
CDRL.

          (c) PROCESSING STATUS. Any inquiry as to the processing status of a DD
Form 250 should be made to the following office:

          Air Force Research Laboratory/IFTM
          32 Brooks Road
          Rome NY 13441-4114
          Telephone: (315) 330-3067

<PAGE>

PART II - CONTRACT CLAUSES
SECTION I - CONTRACT CLAUSES
--------------------------------------------------------------------------------

Contract Clauses in this section are from the FAR, Defense FAR Sup, Air Force
FAR Sup, and the Air Force Materiel Command FAR Sup, and are current through the
following updates:

Database_Version: 4.2.x.300; Issued: 1/22/2002; Clauses: are up-to-date
through:; FAR: FAC 2001-03 (2001-02 Partial); DFAR: DCN20011206; DL.: DL 98-021;
Class Deviations: CD 2001o0002; AFFAR: 1996 Edition; AFMCFAR: AFMCAC 97-8; AFAC:
AFAC 96-4; IPN: 98-009

1. NOTICE: The following contract clauses pertinent to this section are hereby
incorporated by reference:

A. FEDERAL ACQUISITION REGULATION CONTRACT CLAUSES
--------------------------------------------------

<TABLE>
<S>               <C>
52.202-01         DEFINITIONS (MAY 2001)
52.203-03         GRATUITIES (APR 1984)
52.203-05         COVENANT AGAINST CONTINGENT FEES (APR 1984)
52.203-06         RESTRICTIONS ON SUBCONTRACTOR SALES TO THE GOVERNMENT (JUL 1995)
52.203-07         ANTI-KICKBACK PROCEDURES (JUL 1995)
52.203-08         CANCELLATION, RESCISSION, AND RECOVERY OF FUNDS FOR ILLEGAL OR
                  IMPROPER ACTIVITY (JAN 1997)
52.203-10         PRICE OR FEE ADJUSTMENT FOR ILLEGAL OR IMPROPER ACTIVITY (JAN 1997)
52.203-I2         LIMITATION ON PAYMENTS TO INFLUENCE CERTAIN FEDERAL TRANSACTIONS
                  (JUN 1997)
52.204-04         PRINTED OR COPIED DOUBLE-SIDED ON RECYCLED PAPER (AUG 2000)
52.209-06         PROTECTING THE GOVERNMENT'S INTEREST WHEN SUBCONTRACTING WITH
                  CONTRACTORS DEBARRED, SUSPENDED, OR PROPOSED FOR DEBARMENT (JUL
                  1995)
52.211-15         DEFENSE PRIORITY AND ALLOCATION REQUIREMENTS (SEP 1990)
52.215-02         AUDIT AND RECORDS -- NEGOTIATION (JUN 1999)
52.215-08         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)
52.215-14         INTEGRITY OF UNIT PRICES (OCT 1997) - ALTERNATE I (OCT 1997)
52.215-15         PENSION ADJUSTMENTS AND ASSET REVERSIONS (DEC 1998)
52.215-18         REVERSION OR ADJUSTMENT OF PLANS FOR POSTRETIREMENT BENEFITS (PRB)
                  OTHER THAN PENSIONS (OCT 1997)
52.215-19         NOTIFICATION OF OWNERSHIP CHANGES (OCT 1997)
52.216-07         ALLOWABLE COST AND PAYMENT (MAR 2000)
52.216-08         FIXED FEE (MAR 1997)
52.219-08         UTILIZATION OF SMALL BUSINESS CONCERNS (OCT 2000)
52.222-02         PAYMENT FOR OVERTIME PREMIUMS (JUL 1990)
                  Para (a), Dollar amount is 'zero'
52.222-03         CONVICT LABOR (AUG 1996)
52.222-21         PROHIBITION OF SEGREGATED FACILITIES (FEB 1999)
52.222-26         EQUAL OPPORTUNITY (FEB 1999)
52.222-35         AFFIRMATIVE ACTION FOR DISABLED VETERANS AND VETERANS OF THE
                  VIETNAM ERA (APR 1998)
52.222-36         AFFIRMATIVE ACTION FOR WORKERS WITH DISABILITIES (JUN 1998)
52.222-37         EMPLOYMENT REPORTS ON DISABLED VETERANS AND VETERANS OF THE
                  VIETNAM ERA (JAN 1999)
52.223-06         DRUG-FREE WORKPLACE (MAY 2001)
52.225-13         RESTRICTIONS ON CERTAIN FOREIGN PURCHASES (JUL 2000)
52.227-01         AUTHORIZATION AND CONSENT (JUL 1995) - ALTERNATE I (APR 1984)
</TABLE>

<PAGE>

PART II - CONTRACT CLAUSES
SECTION I - CONTRACT CLAUSES
--------------------------------------------------------------------------------

<TABLE>
<S>               <C>
52.227-02         NOTICE AND ASSISTANCE REGARDING PATENT AND COPYRIGHT INFRINGEMENT
                  (AUG 1996)
52.227-11         PATENT RIGHTS -- RETENTION BY THE CONTRACTOR (SHORT FORM) (JUN 1997)
                  Para (1), Communications: 'All documents and information required by the patent rights and/or
                  patent reporting clauses set forth in Section I of this contract shall be submitted to the
                  Administrative Contracting Officer and to Air Force Research Laboratory/IFOJ, 26 Electronic
                  Parkway, Rome NY 13441-4514. The AFRL/IFOJ patent administrator can be reached at Area
                  Code (315)330-2087 or DSN 587-2087. This notice also constitutes a request (see FAR 52.227-
                  12(f)(10) or DFARS 252.227-7039(c), as applicable) for submission of a copy of the patent
                  application, when filed, along with the patent application serial number, filing date, subsequent
                  U.S. patent number and issue date, as received.'
52.228-07         INSURANCE -- LIABILITY TO THIRD PERSONS (MAR 1996)
52.232-09         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) - ALTERNATE I (APR 1984)
52.232-25         PROMPT PAYMENT (MAY 2001)
                  Para (b)(1), Contract financing payments shall be made on the 'thirtieth (30th)'
52.232-33         PAYMENT BY ELECTRONIC FUNDS TRANSFER--CENTRAL CONTRACTOR
                  REGISTRATION (MAY 1999)
52.233-01         DISPUTES (DEC 1998)
52.233-03         PROTEST AFTER AWARD (AUG 1996) - ALTERNATE I (JUN 1985)
52.242-01         NOTICE OF INTENT TO DISALLOW COSTS (APR 1984)
52.242-03         PENALTIES FOR UNALLOWABLE COSTS (MAY 2001)
52.242-04         CERTIFICATION OF FINAL INDIRECT COSTS (JAN 1997)
52.242-13         BANKRUPTCY   (JUL 1995)
52.243-02         CHANGES -- COST-REIMBURSEMENT (AUG 1987) - ALTERNATE V (APR 1984)
52.244-02         SUBCONTRACTS (AUG 1998) - ALTERNATE I (AUG 1998)
                  Para (e), Contractor shall obtain the Contracting Officer's written consent before placing the
                  following subcontracts: 'None'
                  Para (k), the following subcontracts which were evaluated during negotiations: 'None'
52.244-05         COMPETITION IN SUBCONTRACTING (DEC 1996)
52.244-06         SUBCONTRACTS FOR COMMERCIAL ITEMS (MAY 2001)
52.245-05         GOVERNMENT PROPERTY (COST-REIMBURSEMENT, TIME-AND-MATERIAL, OR
                  LABOR-HOUR CONTRACTS) (DEVIATION) (JAN 1986)
52.246-23         LIMITATION OF LIABILITY (FEB 1997)
52.247-01         COMMERClAL BILL OF LADING NOTATIONS (APR 1984)
52.247-67         SUBMISSION OF COMMERCIAL TRANSPORTATION BILLS TO THE GENERAL
                  SERVICES ADMINISTRATION FOR AUDIT (JUN 1997)
52.249-06         TERMINATION (COST-REIMBURSEMENT) (SEP 1996)
52.249-14         EXCUSABLE DELAYS (APR 1984)
52.253-01         COMPUTER GENERATED FORMS (JAN 1991)
</TABLE>

B. DEFENSE FEDERAL ACQUISITION REGULATION SUPPLEMENT CONTRACT CLAUSES
---------------------------------------------------------------------

<TABLE>
<S>               <C>
252.203-7001      PROHIBITION ON PERSONS CONVICTED OF FRAUD OR OTHER DEFENSE-
                  CONTRACT-RELATED FELONIES (MAR 1999)
252.204-7003      CONTROL OF GOVERNMENT PERSONNEL WORK PRODUCT (APR 1992)
252.204-7004      REQUIRED CENTRAL CONTRACTOR REGISTRATION (NOV 2001)
252.205-7000      PROVISION OF INFORMATION TO COOPERATIVE AGREEMENT HOLDERS (DEC 1991)
252.209-7000      ACQUISITION FROM SUBCONTRACTORS SUBJECT TO ON-SITE INSPECTION UNDER
                  THE INTERMEDIATE-RANGE NUCLEAR FORCES (INF)TREATY (NOV 1995)
252.209-7004      SUBCONTRACTING WITH FIRMS THAT ARE OWNED OR CONTROLLED BY THE
                  GOVERNMENT OF A TERRORIST COUNTRY (MAR 1998)
252.215-7000      PRICING ADJUSTMENTS (DEC 1991)
252.215-7002      COST ESTIMATING SYSTEM REQUIREMENTS (OCT 1998)

</TABLE>

<PAGE>

PART I1 - CONTRACT CLAUSES
SECTION 1 - CONTRACT CLAUSES
--------------------------------------------------------------------------------

<TABLE>
<S>               <C>
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)
252.226-7001      UTILIZATION OF INDIAN ORGANIZATIONS AND INDIAN-OWNED ECONOMIC
                  ENTERPRISES-DOD CONTRACTS (SEP 2001)
252.227-7016      RIGHTS IN BID OR PROPOSAL INFORMATION (JUN 1995)
252.227-7018      RIGHTS IN NONCOMMERCIAL TECHNICAL DATA AND COMPUTER
                  SOFTWARE-SMALL BUSINESS INNOVATION RESEARCH (SBIR) PROGRAM (JUN 1995)
252.227-7019      VALIDATION OF ASSERTED RESTRICTIONS--COMPUTER SOFTWARE (JUN 1995)
252.227-7030      TECHNICAL DATA--WITHHOLDING OF PAYMENT (MAR 2000)
252.227-7034      PATENTS--SUBCONTRACTS (APR 1984)
252.227-7036      DECLARATION OF TECHNICAL DATA CONFORMITY (JAN 1997)
252.227-7037      VALIDATION OF RESTRICTIVE MARKINGS ON TECHNICAL DATA (SEP 1999)
252.227-7039      PATENTS--REPORTING OF SUBJECT INVENTIONS (APR 1990)
252.231-7000      SUPPLEMENTAL COST PRINCIPLES   (DEC 1991)
252.235-7010      ACKNOWLEDGMENT OF SUPPORT AND DISCLAIMER (MAY 1995)
                  Para (a), name of contracting agency(ies): 'Air Force Research Laboratory'
                  Para (a), contract number(s): 'F30602-02-C-0030'
                  Para (b), name of contracting agency(ies): 'United States Air Force'
252.235-7011      FINAL SCIENTIFIC OR TECHNICAL REPORT (SEP 1999)
252.242-7000      POSTAWARD CONFERENCE (DEC 1991)
252.243-7002      REQUESTS FOR EQUITABLE ADJUSTMENT (MAR 1998)
252.244-7000      SUBCONTRACTS FOR COMMERCIAL ITEMS AND COMMERCIAL COMPONENTS (DOD
                  CONTRACTS) (MAR 2000)
252.247-7023      TRANSPORTATION OF SUPPLIES BY SEA (MAR 2000)
252.247-7024      NOTIFICATION OF TRANSPORTATION OF SUPPLIES BY SEA (MAR 2000)
</TABLE>

C. AIR FORCE FEDERAL ACQUISITION REGULATION SUPPLEMENT CONTRACT CLAUSES
-----------------------------------------------------------------------

5352.235-9000     SCIENTIFIC/TECHNICAL INFORMAT1ON (STINFO) (MAY 1996)

D. AIR FORCE MATERIEL COMMAND FEDERAL ACQUISITION REGULATION SUPPLEMENT CONTRACT
--------------------------------------------------------------------------------
CLAUSES
-------

<TABLE>
<S>               <C>
5352.228-9001     INSURANCE CLAUSE IMPLEMENTATION (AFMC) (JUL 1997)
5352.235-9000     SMALL BUSINESS INNOVATION RESEARCH (SBIR) PHASE I AND PHASE I1
                  CONTRACT REQUIREMENTS (AFMC) (JUL 1997)
                  FY: '02'
                  Applicable Regulations By Paragraph Number and Title'

                    (a) Definition. "United States", as used in this clause, means the fifty states, the Territories and
                  possessions of the United States, the Commonwealth of Puerto Rico, the Commonwealth of the
                  Northern Mariana Islands, the Trust Territory of the Pacific Islands, and the District of Columbia.

                    (b) Primary Employment. The primary employment of the principal investigator must be with
                  the small business firm during the conduct of the contract. Primary employment means that more
                  than one-half of the principal investigator's time is spent with the small business.  Primary
                  employment with a small business concern precludes full-time employment at another
                  organization.

                    (c) Purchase Of Equipment. It is the sense of Congress that an entity that is awarded a contract
                  under the SBIR Program of a federal agency under Section 9 of the Small Business Act should,
                  when purchasing any equipment or a product with funds provided through the contract, purchase
                  only American-made equipment and products, to the extent possible in keeping with the overall
                  purposes of that program.
</TABLE>

<PAGE>

PART II - CONTRACT CLAUSES
SECTION 1 - CONTRACT CLAUSES
================================================================================

<TABLE>
<S>               <C>
                     (d) Requirements. A minimum of two-thirds of the research and or analytical effort required to
                  perform the work specified in the attached Statement of Work (or Contractor's proposal, if
                  incorporated herein by reference) shall be performed by the Contractor in the United States.'
</TABLE>

11. NOTICE: The following contract clauses pertinent to this section are hereby
incorporated in full text:

FEDERAL ACOUISITION REGULATION CONTRACT CLAUSES IN FULL TEXT
------------------------------------------------------------

52.252-02 CLAUSES INCORPORATED BY REFERENCE (FEB 1998)

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):
http://farsite.hill.af.mil/

52.252-06 AUTHORIZED DEVIATIONS IN CLAUSES (APR 1984)

          (a) The use in this solicitation or contract of any Federal
Acquisition Regulation (48 CFR Chapter 1) clause with an authorized deviation is
indicated by the addition of "(DEVIATION)" after the date of the clause.

          (b) The use in this solicitation or contract of any Defense Federal
Acquisition Regulation Supplement (48 CFR Chapter 2) clause with an authorized
deviation is indicated by the addition of "(DEVIATION)" after the name of the
regulation.

<PAGE>

PART III - LIST OF DOCUMENTS, EXHIBITS & ATTACHMENTS
SECTION J - LIST OF ATTACHMENTS
================================================================================

DOCUMENT       PGS     DATE           TITLE
--------------------------------------------------------------------------------

EXHIBIT A      4      28 JAN 2002    Contract Data Requirements List (CDRL)

ATTACHMENT 1   6      28 JAN 2002    Statement of Work entitled STACKED ADAPTIVE
                                     COMPUTING MODULE

<PAGE>

<TABLE>
<S>                                                                                              <C>
===================================================================================================================================
            CONTRACT DATA REQUIREMENTS LIST                                                      Form Approved
                     (1 Data Item)                                                               OMB No. 0704-0188
===================================================================================================================================
Public reporting burden for this collection of information is estimated to average 110 hours per response, including the time for
reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing
the collection of information. Send comments regarding this burden estimate or any other aspect of this collection of information,
including suggestions for reducing this burden, to Department of Defense, Washington Headquarters Services, Directorate for
Information Operations and Reports, 1215 Jefferson Davis Highway, Suite 1204, Arlington, VA 22202-4302, and to the Office of
Management and Budget. Paperwork Reduction Project (0704-0188), Washington, DC 20503. Please DO NOT RETURN your form to either of
these addresses. Send completed form to the Government Issuing Contracting Officer for the Contract/PR No. listed in Block E.
===================================================================================================================================
A. CONTRACT LINE ITEM NO.                      B. EXHIBIT                                     C. CATEGORY:
CLIN 0002                                      A                                              TDP     TM-       OTHER MGMT
-----------------------------------------------------------------------------------------------------------------------------------
D. SYSTEM/ITEM                                 E. CONTRACT/PR NO.                             F. CONTRACTOR
STACKED ADAP COMP MOD                          F30602-02-C-0030                               T-2-4149
-----------------------------------------------------------------------------------------------------------------------------------
1. DATA ITEM NO.         2 TITLE OF DATA ITEM                                           3. SUBTITLE
A001                     PROGRAM PROGRESS REPORT
-----------------------------------------------------------------------------------------------------------------------------------
4. AUTHORITY (Data Acquisition Document No.)  5. CONTRACT REFERENCE                           6. REQUIRING OFFICE
DI-MGMT -80555                                PARAGRAPH 4.1.6.1 OF THE SOW                    AFRL/IFTC
-----------------------------------------------------------------------------------------------------------------------------------
7. DD250 REQ           9. DIST STATEMENT  10. FREQUENCY        12. DATE OF FIRST       14.            DISTRIBUTION
                       REQUIRED                                    SUBMISSION           -------------------------------------
SEE BLOCK 16                              SEE BLOCK 16         SEE BLOCK 16                                    b. COPIES
---------------------                     -----------------------------------------------------------------------------------------
8. APP CODE                               11. AS OF DATE       13. DATE OF SUBSEQUENT
                           TBD                                     SUBMISSION           a.   ADDRESSEE        Draft       Final
                                                                                                                       ------------
       N                                  SEE BLOCK 16         SEE BLOCK 16                                             Reg   Repro
-----------------------------------------------------------------------------------------------------------------------------------
16. REMARKS:                                                                                   AFRL/IFTC           0      1      0
                                                                                              -------------------------------------
CONTRACTOR FORMAT IS ACCEPTABLE. PREFER ELECTRONIC                                             AFRL/IFKD           0      1      0
DELIVERY IN MICROSOFT OFFICE SUITE COMPATIBLE FORMAT OR RTF.                                  -------------------------------------
                                                                                               ACO                 0      1      0
THE CONTRACTOR SHALL SUBMIT THE FIRST STATUS REPORT WITHIN                                    -------------------------------------
FORTY(40)DAYS AFTER CONTRACT AWARD AND MONTHLY                                                 SEE ALSO
THEREAFTER VIA LETTER OF TRANSMITTAL.                                                         -------------------------------------
                                                                                               BLOCK 16
                                                                                              -------------------------------------

COORDINATE THE DELIVERY MEDIA WITH THE ADMINISTRATIVE                                         -------------------------------------
CONTRACTING OFFICER (ACO) IDENTIFIED ON THE SF 26, BLOCK 6.
                                                                                              -------------------------------------
INCLUDE THIS ITEM ON THE FINAL DD FORM 250.
                                                                                              -------------------------------------
                                                                                               15. TOTAL           0      3      0
-----------------------------------------------------------------------------------------------------------------------------------
G. PREPARED BY                  H. DATE                     I. APPROVED BY                                         J. DATE
DONALD R. LUBECKI               28 JAN 2002                 VIRGINIA W. ROSS                                       28 JAN 2002
-----------------------------------------------------------------------------------------------------------------------------------

DD Form 1423-1. SEP 97 (EG)(Computer Generated) PREVIOUS EDITIONS ARE OBSOLETE                           Page   1   of   4   Pages
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</TABLE>

<PAGE>

<TABLE>
<S>                                                                                              <C>
===================================================================================================================================
            CONTRACT DATA REQUIREMENTS LIST                                                      Form Approved
                     (1 Data Item)                                                               OMB No. 0704-0188
===================================================================================================================================
Public reporting burden for this collection of information is estimated to average 110 hours per response, including the time for
reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing
the collection of information. Send comments regarding this burden estimate or any other aspect of this collection of information,
including suggestions for reducing this burden, to Department of Defense, Washington Headquarters Services, Directorate for
information Operations and Reports, 1215 Jefferson Davis Highway, Suite 1204, Arlington, VA 22202-4302. and to the Office of
Management and Budget, Paperwork Reduction Project (0704-0188). Washington, DC 20503. Please DO NOT RETURN your form to either of
these addresses. Send completed form to the Government Issuing Contracting Officer for the Contract/PR No. listed in Block E.
===================================================================================================================================
A. CONTRACT LINE ITEM NO.                   B. EXHIBIT                  C. CATEGORY:
CLIN 0002                                   A                           TDP     TM-       OTHER ADMN
-----------------------------------------------------------------------------------------------------------------------------------
D. SYSTEM/ITEM                              E. CONTRACT/PR NO.          F. CONTRACTOR
STACKED ADAP COMP MOD                       F30602-02-C-0030            T-2-4149
-----------------------------------------------------------------------------------------------------------------------------------
1. DATA ITEM NO.         2 TITLE OF DATA ITEM                        3. SUBTITLE
A002                     PRESENTATION MATERIAL
-----------------------------------------------------------------------------------------------------------------------------------
4. AUTHORITY (Data Acquisition Document No.)    5. CONTRACT REFERENCE                         6. REQUIRING OFFICE
DI-ADMN-81373                                   PARAGRAPH 4.1.6.3 OF THE SOW                  AFRL/IFTC
-----------------------------------------------------------------------------------------------------------------------------------
7. DD250 REQ           9. DIST           10. FREQUENCY     12. DATE OF FIRST SUBMISSION       14.          DISTRIBUTION
                       STATEMENT                                                              -------------------------------------
                       REQUIRED
SEE BLOCK 16                             SEE BLOCK 16      SEE BLOCK 16                                         b. COPIES
---------------------                    ------------------------------------------------------------------------------------------
8. APP CODE                              11. AS OF DATE    13. DATE OF SUBSEQUENT
                           TBD                                 SUBMISSION                      a. ADDRESSEE      Draft     Final
                                                                                                                       ------------
       N                                 SEE BLOCK 16      SEE BLOCKK 16                                                Reg   Repro
-----------------------------------------------------------------------------------------------------------------------------------
16. REMARKS                                                                                    AFRL/IFTC           1      1      0
BLOCK 2 AND 4, REFERENCE DD FORM 1664 OR FACSIMILE, TAILORING:
WHEN DIRECTED BY THE GOVERNMENT, PROVIDE 8 x 10 INCH GLOSSY                                   -------------------------------------
PRINT OF GOVERNMENT SELECTED VIEWGRAPHS PREPARED UNDER
PARAGRAPH 10.1                                                                                -------------------------------------

THE CONTRACTOR SHALL SUBMIT DRAFT PRESENTATION MATERIAL                                       -------------------------------------
WITHIN THREE (3) DAYS PRIOR TO EACH PRESENTATION VIA E-MAIL.                                  -------------------------------------

COORDINATE THE NUMBER OF COPIES AND DELIVERY MEDIA REQUIRED                                   -------------------------------------
FOR EACH PRESENTATION WITH THE REQUIRING OFFICE.
                                                                                              -------------------------------------
INCLUDE THIS ITEM ON THE FINAL DD FORM 250.
                                                                                              -------------------------------------
                                                                                               15. TOTAL           1      1      0
-----------------------------------------------------------------------------------------------------------------------------------
G. PREPARED BY                  H. DATE                     I APPROVED BY                                          J. DATE

-----------------------------------------------------------------------------------------------------------------------------------

DD Form 1423-1. SEP 97 (EG)(Computer Generated) PREVIOUS EDITIONS ARE OBSOLETE                            Page   2   of   4   Pages
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</TABLE>

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<TABLE>
<S>                                                                                              <C>
===================================================================================================================================
            CONTRACT DATA REQUIREMENTS LIST                                                      Form Approved
                     (1 Data Item)                                                               OMB No. 0704-0188
===================================================================================================================================
Public reporting burden for this collection of information is estimated to average 110 hours per response, including the time for
reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing
the collection of information. Send comments regarding this burden estimate or any other aspect of this collection of information,
including suggestions for reducing this burden, to Department of Defense, Washington Headquarters Services, Directorate for
Information Operations and Reports, 1215 Jefferson Davis Highway, Suite 1204, Arlington, VA 22202-4302, and to the Office of
Management and Budget, Paperwork Reduction Project (0704-0188). Washington, DC 20503. Please DO NOT RETURN your form to either of
these addresses. Send completed form to the Government Issuing Contracting Officer for the Contract/PR No. listed in Block E.
===================================================================================================================================
A. CONTRACT LINE ITEM NO.                   B. EXHIBIT                  C. CATEGORY:
CLIN 0002                                   A                           TDP     TM-       OTHER MISC
-----------------------------------------------------------------------------------------------------------------------------------
D. SYSTEM/ITEM                              E. CONTRACT/PR NO.                                F. CONTRACTOR
STACKED ADAP COMP MOD                       F30602-02-C-0030                                  T-2-4149
-----------------------------------------------------------------------------------------------------------------------------------
1. DATA ITEM NO.         2 TITLE OF DATA ITEM                                           3. SUBTITLE
A003                     TECHNICAL INFORMATION REPORT                                   COMMERCIALIZATION REPORT
-----------------------------------------------------------------------------------------------------------------------------------
4. AUTHORITY (Data Acquisition Document No.)  5. CONTRACT REFERENCE                           6. REQUIRING OFFICE
DI-MISC-80652/T                               PARAGRAPH 4.1.6.4 OF THE SOW                    AFRL/IFTC
-----------------------------------------------------------------------------------------------------------------------------------
7. DD250 REQ           9. DIST         10. FREQUENCY        12. DATE OF FIRST SUBMISSION      14.           DISTRIBUTION
                       STATEMENT                                                              -------------------------------------
                       REQUIRED
SEE BLOCK 16                           2TIME                SEE BLOCK 16                                         b.   COPIES
---------------------                  --------------------------------------------------------------------------------------------
8. APP CODE                            11. AS OF DATE       13. DATE OF SUBSEQUENT
                           N/A                                 SUBMISSION                     a. ADDRESSEE    Draft     Final
                                                                                                                     --------------
       N                               0                    SEE BLOCK 16                                             Reg     Repro
-----------------------------------------------------------------------------------------------------------------------------------
16. REMARKS                                                                                    SEE BLK 16
                                                                                              -------------------------------------
BLOCKS 2 AND 4 - REFERENCE DATA ACQUISITION DOCUMENT, DATA
ITEM DESCRIPTION, DD FORM 1664, BLOCK 10: PARAGRAPHS 10.3.4 AND                               -------------------------------------
10.3.5 ONLY APPLY TO THIS REQUIREMENT.
                                                                                              -------------------------------------
CONTRACTOR FORMAT IS SUFFICIENT.
                                                                                              -------------------------------------
THE CONTRACTOR SHALL SUBMIT THIS DATA ITEM WITHIN TWELVE (12)
MONTHS AFTER CONTRACT AWARD AND AGAIN AT THE END OF THE                                       -------------------------------------
CONTRACT PERIOD.
                                                                                              -------------------------------------
SUBMIT EACH DELIVERY ELECTRONICALLY TO THE FOLLOWING WWW
URL: http://dodsbir.net/companycommercialization/                                             -------------------------------------

INCLUDE THIS ITEM ON THE FINAL DD FORM 250.                                                   -------------------------------------

IT IS DESIRED BY THE GOVERNMENT FOR THE CONTRACTOR TO                                         -------------------------------------
VOLUNTARILY SUBMIT AN UPDATE TO THIS DOCUMENT TWELVE (12)
MONTHS AFTER COMPLETION OF THIS EFFORT ELECTRONICALLY TO                                      -------------------------------------
THE LOCATION LISTED HEREIN.
                                                                                              -------------------------------------
REFER QUESTIONS TO THE DOD SBIR/STR HELP DESK AT (800)382-4634.
                                                                                              -------------------------------------
                                                                                               15. TOTAL
-----------------------------------------------------------------------------------------------------------------------------------
G. PREPARED BY                  H. DATE                     I. APPROVED BY                                          J. DATE

-----------------------------------------------------------------------------------------------------------------------------------

DD Form 1423-1, SEP 97 (EG)(Computer Generated) PREVIOUS EDITIONS ARE OBSOLETE                           Page   3   of   4   Pages
                                                                                                             -------  -------
</TABLE>

<PAGE>

<TABLE>
<S>                                                                                              <C>
===================================================================================================================================
            CONTRACT DATA REQUIREMENTS LIST                                                      Form Approved
                     (1 Data Item)                                                               OMB No. 0704-0188
===================================================================================================================================
Public reporting burden for this collection of information is estimated to average 110 hours per response, including the time for
reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing
the collection of information. Send comments regarding this burden estimate or any other aspect of this collection of information,
including suggestions for reducing this burden, to Department of Defense, Washington Headquarters Services, Directorate for
Information Operations and Reports, 1215 Jefferson Davis Highway, Suite 1204. Arlington, VA 22202-4302, and to the Office of
Management and Budget, Paperwork Reduction Project (0704-0188), Washington, DC 20503. Please DO NOT RETURN your form to either of
these addresses. Send completed form to the Government Issuing Contracting Officer for the Contract/PR No. listed in Block E.
===================================================================================================================================
A. CONTRACT LINE ITEM NO.                   B. EXHIBIT                             C. CATEGORY:

CLIN 0002                                   A                                      TDP            TM-                OTHER MISC
-----------------------------------------------------------------------------------------------------------------------------------
D. SYSTEM/ITEM                              E. CONTRACT/PR NO.                     F. CONTRACTOR

STACKED ADAP COMP MOD                       F30602-02-C-0030                       T-2-4149
-----------------------------------------------------------------------------------------------------------------------------------
1. DATA ITEM NO.      2 TITLE OF DATA ITEM                                      3. SUBTITLE
A004                  SCIENTIFIC AND TECHNICAL REPORTS                          FINAL
-----------------------------------------------------------------------------------------------------------------------------------
4. AUTHORITY (Data Acquisition Document No.) 5. CONTRACT REFERENCE                         6. REQUIRING OFFICE
DI-MISC-80711A/T                             PARAGRAPH 4.1.6.2 OF THE SOW                   AFRL/IFTC
-----------------------------------------------------------------------------------------------------------------------------------
7. DD250 REQ     9. DIST             10. FREQUENCY       12. DATE OF FIRST SUBMISSION      14.           DISTRIBUTION
                 STATEMENT                                                                -----------------------------------------
                 REQUIRED
     DD                              ONE/R               SEE BLOCK 16                                     b.   COPIES
---------------                      ----------------------------------------------------------------------------------------------
8. APP CODE                          11. AS OF DATE       13. DATE OF SUBSEQUENT
                 TBD                                          SUBMISSION                     a. ADDRESSEE        Draft     Final
                                                                                                                       ------------
       A                             0                    SEE BLOCK 16                                                  Reg   Repro
-----------------------------------------------------------------------------------------------------------------------------------
16. REMARKS                                                                                    AFRL/IFOIP                 4     1
                                                                                              -------------------------------------
REFERENCE ANSI Z39.18-1995: PAGE 3, TABLE 1; AND PAGE 18 - 20, PARAGRAPHS 5.3 -  5.4

INCLUDE A COVER AND REPORT DOCUMENTATION PAGE.                                                -------------------------------------
                                                                                               SEE BLK 16
PREPARE REPORT ON WHITE 8 1/2"  X 11"  BOND PAPER. MARGIN REQUIREMENTS ARE 1"
TOP, 1 1/2" BOTTOM, AND A MINIMUM OF 1" RIGHT AND LEFT.                                       -------------------------------------

PAGE NUMBERS ARE TO BE CENTERED AT THE BOTTOM OF EACH PAGE.                                   -------------------------------------

FOR CLASSIFIED REPORTS, BOTTOM OF UPPER CLASSIFICATION MARKING WILL BE 3/4"                   -------------------------------------
FROM TOP OF PAGE; BOTTOM OF LOWER CLASSIFICATION MARKING WILL BE 1/2" FROM
BOTTOM OF PAGE.                                                                               -------------------------------------

THE CONTRACTOR SHALL SUBMIT FOUR (4) HARD COPIES AND ONE (1) IBM PERSONAL                     -------------------------------------
COMPUTER COMPATIBLE FORMAT DISK (PREFER MICROSOFT WORD OR RICH TEXT (RTF)
FILE FORMAT) THIRTY (30) DAYS AFTER COMPLETION OF CLlN 0001 TO:                               -------------------------------------

AFRL/IFOIP (STINFO)                                                                           -------------------------------------
26 ELECTRONIC PARKWAY
ROME NY 13441-4514                                                                            -------------------------------------

THE GOVERNMENT WILL PROVIDE THE REPORT NUMBER AND DISTRIBUTION STATEMENT                      -------------------------------------
AFTER SUBMISSION OF THE REPORT. WITHIN FORTY (40) DAYS AFTER RECEIPT
THEREOF, THE STINFO OFFICE WILL FORWARD ONE (1) CORRECTED (MARKED-UP) COPY                    -------------------------------------
(OR WRITTEN DIRECTIONS FOR REQUIRED CORRECTIONS) TO THE CONTRACTOR FOR
CORRECTIONS. WITHIN THIRTY (30) DAYS AFTER RECEIPT, THE CONTRACTOR SHALL                      -------------------------------------
ACCOMPLISH THE CORRECTIONS AND RETURN ONE (1) CORRECTED DISK AND THE
ORIGINAL MARKED-UP COPY TO AFRL/IFOIP.                                                        -------------------------------------

REPRODUCTION AND DISTRIBUTION CONTROL OF THIS DOCUMENT WILL BE THE                            -------------------------------------
RESPONSIBILITY OF THE PROCURING ACTIVITY. OTHER MARKINGS WILL BE APPLIED
AFTER RECEIPT OF THE DELIVERABLE DATA BY AFRL. SUBMISSION OF THE FINAL                        -------------------------------------
UPDATED REPORT TO AFRL/lFOlP SATISFIES THE REQUIREMENT AT DFARS 252.235-7011
TO SUBMIT FINAL REPORTS TO DTIC.                                                              -------------------------------------
                                                                                               15. TOTAL                  4     1
-----------------------------------------------------------------------------------------------------------------------------------
G. PREPARED BY                  H. DATE                     I. APPROVED BY                                          J. DATE

-----------------------------------------------------------------------------------------------------------------------------------

DD Form 1423-1. SEP 97 (EG)(Computer Generated) PREVIOUS EDITIONS ARE OBSOLETE                        Page   4   of   4   Pages
                                                                                                          -------  -------
</TABLE><PAGE>

                                                                    EXHIBIT 10.2

<TABLE>
-----------------------------------------------------------------------------------------------------------------------------------
           <S>                                <C>                                       <C>           <C>
           AWARD/CONTRACT                     1. This Contract Is A Rated Order         Rating DOA 7        Page 1 Of 25
                                                 Under DPAS (15 CFR 700)
-----------------------------------------------------------------------------------------------------------------------------------
2. Contract (Proc. Inst. Ident) No.           3. Effective Date         4. Requisition/Purchase Request/Project No.

DAAB07-02-C-F608                                 February 22, 2002                                SEE SCHEDULE
-----------------------------------------------------------------------------------------------------------------------------------
5. Issued By                                    Code  W15P7T            6. Administered By (If Other Than Item 5)   Code  SO513A
 COMMANDER US ARMY CECOM, ACQ CENTER                  ------             DCMC SANTA ANA                                   ------
 AMSEL-ACCA-RT-M                                                         34 CIVIC CENTER PLAZA
 CATHERINE DIMATTEO (732)427-1630                                        P O BOX C-12700
 FORT MONMOUTH, NJ  07703-5008                                           SANTA ANA, CA 92712-2700

e-mail address: CATHERINE-DIMATTEO@MAIL1.MONMOUTH.ARMY.MIL                          SCD C PAS NONE         ADP PT SC1002
-----------------------------------------------------------------------------------------------------------------------------------
7. Name And Address Of Contractor (No. Street, City, Country, State, And Zip Code)   8. Delivery
IRVINE SENSORS CORP                                                                  [ ] FOB Origin     [x] Other (See Below)
                                                                                     SEE SCHEDULE
3001 REDHILL AVE BLDG 3 SUITE 208                                                 -------------------------------------------------
COSTA MESA CA 92626-4529                                                           9. Discount For Promat Payment

                                                                                  -------------------------------------------------
                                                                                   10. Submit Invoices           Item
TYPE BUSINESS: Other Small Business Performing in U.S.                             (4 Copies Unless Other-
--------------------------------------------------------------------------------   wise Specified) To The           12
Code 54266                                Facility Code                            Address Shown In:
-----------------------------------------------------------------------------------------------------------------------------------
11. Ship To/Mark For              Code                           12. Payment Will Be Made By                Code    HQO339
                                      -------------------------  DFAS-COLOMBUS CENTER                            ------------------
SEE SCHEDULE                                                     WEST ENTITLEMENT OPERATIONS
                                                                 P.O. BOX 182381
                                                                 COLUMBUS. OH 43218-2391

-----------------------------------------------------------------------------------------------------------------------------------
13. Authority For Using Other Than Full And Open Competi-        14. Accounting And Appropriation Data
    tion:                                                        ACRN; AA 21 2204000002627525P665502255Y  S28043 W15GK8
[] 10 U.S.C. 2304(c)(  ) [] 41 U.S.C.253(c)(  )

-----------------------------------------------------------------------------------------------------------------------------------
  15A. Item No.       15B. Schedule Of Supplies/services         15C. Quantity       15D. Unit    15E. Unit Price    15F. Amount
-----------------------------------------------------------------------------------------------------------------------------------
  SEE SCHEDULE       CONTRACT TYPE;                                  KIND OF CONTRACT;
                       Firm-Fixed-Price                                Research and Development Contracts

-----------------------------------------------------------------------------------------------------------------------------------
                                                                             15G. Total Amount Of Contract   $395,649.00
-----------------------------------------------------------------------------------------------------------------------------------
                                                        16. Table Of Contents
-----------------------------------------------------------------------------------------------------------------------------------
(X) Section               Description               Page(s) (X) Section              Description                            Page(s)
-----------------------------------------------------------------------------------------------------------------------------------
                  Part I - The Schedule                         Part II - Contract Clauses
-----------------------------------------------------------------------------------------------------------------------------------
 X   A    Solicitation/Contract Form                  1      X    I    Contract Clauses                                      23
-----------------------------------------------------------------------------------------------------------------------------------
 X   B    Supplies or Services and Prices/Costs       3         Part III - List Of Documents, Exhibits, And Other Attachments
-----------------------------------------------------------------------------------------------------------------------------------
 X   C    Description/Specs./Work Statement           10     X    J    List of Attachments                                   25
-----------------------------------------------------------------------------------------------------------------------------------
 X   D    Packaging and Marking                       12        Part IV - Representations And Instructions
-----------------------------------------------------------------------------------------------------------------------------------
 X   E    Inspection and Acceptance                   13          K    Representations, Certifications, and
------------------------------------------------------------
 X   F    Deliveries or Performance                   14               Other Statements of Offerors
-----------------------------------------------------------------------------------------------------------------------------------
 X   G    Contract Administration Data                15          L    Instrs., Conds., and Notices to Offerors
-----------------------------------------------------------------------------------------------------------------------------------
 X   H    Special Contract Requirements               18          M    Evaluation Factors for Award
-----------------------------------------------------------------------------------------------------------------------------------
                                   Contracting Officer Will Complete Item 17 Or 18 As Applicable
-----------------------------------------------------------------------------------------------------------------------------------

17. [X]  Contractor's Negotiated Agreement (Contractor        18. [_] Award (Contractor is not required to sign this document.) Your
is required to sign this document and return 2 signed         offer on Solicitation Number _________________________ Including the
                                             --------         additions or changes made by you which additions or changes are set
copies to issuing office.) Contractor agrees to furnish       forth in full above, is hereby accepted as to items listed above and
and deliver all items or perform all the services set         on any continuation sheets. This award consummates the contract which
forth or otherwise identified above and on any                consists of the following documents: (a) the Government's solicitation
continuation sheets for the consideration stated herein.      and your offer, and (b) this award/contract. No further contractual
The rights and obligations of the parties to this             document is necessary.
contract shall be subject to and governed by the
following documents: (a) this award/contract, (b) the
solicitation, if any, and (c) such provisions,
representations, certifications, and specifications, as
are attached or incorporated by reference herein.
(Attachments are listed herein.)
-----------------------------------------------------------------------------------------------------------------------------------
19A. Name And Title Of Signer (Type Or Print)                 20A. Name Of Contracting Officer
                                                                   VIRGINIA KNIGHT
Robert G. Richards, CEO                                            KNIGHTV@MAIL1.MONMOUTH.ARMY.MIL (732)532-4348
-----------------------------------------------------------------------------------------------------------------------------------
19B. Name of Contractor                   19c Date Signed     20B. United States Of America                 20C. Date Signed

By /s/ Robert G. Richards                   02-21-02          By /s/ Virginia Knight
  ----------------------------------------                       ------------------------------------------  February 22, 2002
  (Signature of person authorized to sign)                        (Signature of Contracting Officer)
-----------------------------------------------------------------------------------------------------------------------------------
NSN 7540-01-152-8069                                   25-186                                          Standard Form 26 (Rev. 4-85)
PREVIOUS EDITIONS UNUSABLE                      GPO : 1985 0 -- 478-632                   Prescribed By GSA FAR (4.8 CFR) 53.214(a)
</TABLE>

<PAGE>

<TABLE>
-----------------------------------------------------------------------------------------------------------------------------------
           <S>                                <C>                                       <C>           <C>
           AWARD/CONTRACT                     1. This Contract Is A Rated Order         Rating DOA 7        Page 1 Of 25
                                                 Under DPAS (15 CFR 700)
-----------------------------------------------------------------------------------------------------------------------------------
2. Contract (Proc. Inst. Ident) No.           3. Effective Date         4. Requisition/Purchase Request/Project No.

DAAB07-02-C-P608                                                                                   SEE SCHEDULE
-----------------------------------------------------------------------------------------------------------------------------------
5. Issued By                                    Code  W15P7T            6. Administered By (If Other Than Item 5)   Code  SO513A
COMMANDER  US ARMY CECOM, ACQ CENTER                  ------                                                               ------
AMSEL-ACCA-RT-M                                                         DCMC SANTA ANA
CATHERINE DIMATTEO (732)427-1630                                        34 CIVIC CENTER PLAZA
FORT MONMOUTH, NJ  07703-5008                                           P O BOX C-12700
                                                                        SANTA ANA, CA 92712-2700

e-mail address: CATHERINE-DIMATTEO@MAIL1.MONMOUTH.ARMY.MIL                          SCD C PAS NONE         ADP PT SC1002
-----------------------------------------------------------------------------------------------------------------------------------
7. Name And Address Of Contractor (No. Street, City, County, State, And Zip Code)  8. Delivery
IRVINE SENSORS CORP                                                                [ ] FOB Origin  :  [x] Other (See Below)
                                                                                                      SEE SCHEDULE
3001 REDHILL AVE BLDG 3 SUITE 208                                                 -------------------------------------------------
COSTA MESA CA 92626-4529                                                           9. Discount For Prompt Payment

                                                                                  -------------------------------------------------
                                                                                   10. Submit Invoices           Item
TYPE BUSINESS: Other Small Business Performing in U.S.                             (4 Copies Unless Other-
--------------------------------------------------------------------------------   wise Specified) To The
Code 54266                                Facility Code                            Address Shown In:                  12
-----------------------------------------------------------------------------------------------------------------------------------
11. Ship To/Mark For              Code                           12. Payment Will Be Made By                         Code   HQO339
                                      -------------------------     DFAS-COLOMBUS CENTER
SEE SCHEDULE                                                        WEST ENTITLEMENT OPERATIONS
                                                                    P.O. BOX 182381
                                                                    COLUMBUS. OH 43218-2391

-----------------------------------------------------------------------------------------------------------------------------------
13. Authority For Using Other Than Full And Open Competition:    14. Accounting And Appropriation Data
[ ] 10 U.S.C. 2304(c)(   ) [ ] 41 U.S.C.253(c)(   )                 ACRN; AA 21 2204000002627525P665502255Y  S28043 W15GK8

-----------------------------------------------------------------------------------------------------------------------------------
  15A. Item No.       15B. Schedule Of Supplies/Services         15C. Quantity       15D. Unit    15E. Unit Price    15F. Amount
-----------------------------------------------------------------------------------------------------------------------------------
  SEE SCHEDULE       CONTRACT TYPE:                                  KIND OF CONTRACT:
                       Firm-Fixed-Price                                Research and Development Contracts

-----------------------------------------------------------------------------------------------------------------------------------
                                                                             15G. Total Amount Of Contract   $395,649,00
-----------------------------------------------------------------------------------------------------------------------------------
                                                        16. Table Of Contents
-----------------------------------------------------------------------------------------------------------------------------------
(X) Section               Description               Page(s) (X) Section              Description                            Page(s)
-----------------------------------------------------------------------------------------------------------------------------------
                  Part I - The Schedule                         Part II - Contract Clauses
-----------------------------------------------------------------------------------------------------------------------------------
 X   A     Solicitation/Contract Form                  1      X    I    Contract Clauses                                      23
-----------------------------------------------------------------------------------------------------------------------------------
 X   B     Supplies or Services and Prices/Costs       3        Part III - List Of Documents, Exhibits, And Other Attachments
-----------------------------------------------------------------------------------------------------------------------------------
 X   C     Description/Specs./Work Statement           10     X    J    List Of Attachments                                   25
-----------------------------------------------------------------------------------------------------------------------------------
 X   D     Packaging and Marking                       12       Part IV - Representations And Instructions
-----------------------------------------------------------------------------------------------------------------------------------
 X   E     Inspection and Acceptance                   13          K    Representations, Certifications, and
------------------------------------------------------------
 X   F     Deliveries or Performance                   14               Other Statements of Offerors
-----------------------------------------------------------------------------------------------------------------------------------
 X   G     Contract Administration Data                15          L    Instrs., Conds., and Notices to Offerors
-----------------------------------------------------------------------------------------------------------------------------------
 X   H     Special Contract Requirements               18          M    Evaluation Factors for Award
-----------------------------------------------------------------------------------------------------------------------------------
                                   Contracting Officer Will Complete Item 17 Or 18 As Applicable
-----------------------------------------------------------------------------------------------------------------------------------

  17. [X]  Contractor'S Negotiated Agreement (Contractor    18. [ ] Award (Contractor is not required to sign this document.) Your
is required to sign this document and return 2 signed       offer on Solicitation Number ___________________________ Including the
                                              --------      additions or changes made by you which additions or changes are set
copies to issuing office.) Contractor agrees to furnish     forth in full above, is hereby accepted as to items listed above and on
and deliver all items or perform all the services set       any continuation sheets. This award consummates the contract which
forth or otherwise identified above and on any              consists of the following documents: (a) the Government's solicitation
continuation sheets for the consideration stated herein.    and your offer, and (b) this award/contract. No further contractual
The rights and obligations of the parties to this contract  document is necessary.
shall be subject to and governed by the following
documents: (a) this award/contract, (b) the solicitation,
if any, and (c) such provisions, representations,
certifications, and specification, as are attached or
incorporated by reference herein. (Attachments are listed
herein.)
-----------------------------------------------------------------------------------------------------------------------------------
19A. Name And Title Of Singer (Type Or Print)                 20A. Name Of Contracting Officer
                                                              VIRGINIA KNIGHT
                                                              KNIGHTV@MAIL1.MONMOUTH.ARMY.MIL (732)532-4348
-----------------------------------------------------------------------------------------------------------------------------------
19B. Name of Contractor                   19c. Date Signed    20B. United States Of America                 20C. Date Signed

By __________________________________________                 By   ____________________________________
   (Signature of persons authorized to sign)                       (Signature of Contracting Officer)
-----------------------------------------------------------------------------------------------------------------------------------
NSN 7540-01-152-8069                                   25-186                                          Standard Form 26 (Rev. 4-85)
PREVIOUS EDITIONS UNUSABLE                      GPO : 1985 0 -- 478-632                   Prescribed By GSA FAR (4.8 CFR) 53.214(a)
</TABLE>

<PAGE>

<TABLE>
<S>                     <C>                                                 <C>
-------------------------------------------------------------------------------------------
                           Reference No. of Document Being Continued        Page 2 of 25
    CONTINUATION SHEET
                        PIIN/SIIN  DAAB07-02-C-P608               MOD/AMD
-------------------------------------------------------------------------------------------
Name of Offeror or Contractor: IRVINE SENSORS CORP
-------------------------------------------------------------------------------------------
</TABLE>

SECTION A - SUPPLEMENTAL INFORMATION

A    THIS IS A SBIR PHASE II FIRM FIXED PRICE - CONTRACT FOR THE "MICRO AIR
VEHICLE AND WEAPON SIGHT INFRARED (IR) CAMERA" UNDER TOPIC NO. A00-047.

B    THE PERIOD OF PERFORMANCE IS TWENTY-FOUR (24) MONTHS FROM THE DATE OF THE
CONTRACT AWARD.

C    THIS CONTRACT WILL BE FUNDED ON AN INCREMENTAL BASIS AS FOLLOWS:

     FUNDS ALLOCATED:        $395,649.00
     DEFERRED FUNDING:       $332.440.34
     TOTAL CONTRACT VALUE:   $728.089.34

D.   FUNDING FOR ALL REQUIREMENTS COVERING THE FIRST YEAR OF INCREMENTAL FUNDING
IS PROVIDED UNDER SLIN OOOlAA. THE AMOUNT OF $395.649.00 IS DIVIDED INTO SEVEN
(7) PHASE II MILESTONE PAYMENTS CONSISTING OF ONE PAYMENT OF $200,000.00, TWO
PAYMENTS OF $32,608.16 EACH, AND FOUR (4) PAYMENTS OF $32,608.17 EACH. THESE
PAYMENTS ARE AUTHORIZED PER THE MONTHLY DELIVERY SCHEDULES 001 THROUGH 007
DELINEATED IN SLIN OOOlAA.

E.   ALL MILESTONE PAYMENTS UNDER SLIN OOOlAA CORRELATE ALTERNATELY WITH THE
BI-MONTHLY STATUS REPORTS UNDER SLIN 0002AA AND THE BI-MONTHLY SCIENTIFIC AND
TECHNICAL REPORTS UNDER SLIN 0003AA, IN ACCORDANCE WITH THE CONTRACT DATA
REQUIREMENTS LISTS (CDRL) DD FORM 1423. SEE SECTION J, EXHIBITS A AND C.

G.   THE CONTRACTOR SHALL DELIVER THE FOLLOWING ITEMS IN ACCORDANCE WITH THE
CONTRACT DATA REQUIREMENTS LIST (CDRL) DD FORM 1423, DATA ITEM DESCRIPTION (DID)
DD FORM 1664, AND THE STATEMENT OF WORK (SOW). SEE SECTION J, EXHIBITS A - L FOR
INSTRUCTIONS.

     1) BI-MONTHLY STATUS REPORTS - ODD NUMBERED MONTHS
     2) BI-MONTHLY SCIENTIFIC AND TECHNICAL REPORTS - EVEN NUMBERED MONTHS
     3) ANNUAL SCIENTIFIC AND TECHNICAL REPORT
     4) FINAL SCIENTIFIC AND TECHNICAL REPORT
     5) UFPA TEST REPORT
     6) IF CAMERA TEST REPORT
     7) TWO (2) IR CAMERAS, INCLUDING TWO (2) USER MANUALS AND TWO (2) BODY-WORN
RF RECEIVERS

H.   FINAL REPORTS SHALL BE FORWARDED VIA MATERIAL INSPECTION AND RECEIVING
REPORT, DD FORM 250.

I.   WHEN SCIENTIFIC AND TECHNICAL REPORTS CONTAIN POTENTIALLY PATENTABLE
SUBJECT MATTER, MARK ONE COPY FOR REVIEW BY CECOM LEGAL OFFICE, PATENT LAW
DIVISION, FT. MONMOUTH, NJ, ATTN: AMSEL-LG-L.

J.   THE GOVERNMENT MAY CALL CONFERENCES/MEETINGS FROM TIME TO TIME, AS DEEMED
NECESSARY, TO DISCUSS THE RESULTS OF THE WORK. THE LOCATION, DURATION AND NUMBER
OF PARTICIPANTS SHALL BE DEFINED AFTER THE NEED FOR SUCH A CONFERENCE/MEETING IS
DETERMINED.

K.   THE CONTRACTOR SHALL PROVIDE TO THE CONTRACTING OFFICER AND HER
REPRESENTATIVES, A LIST OF E-MAIL ADDRESSES FOR ALL ADMINISTRATIVE AND TECHNICAL
PERSONNEL ASSIGNED TO THE CONTRACT IDENTIFYING THEIR FUNCTION. THE LIST OF
E-MAIL ADDRESSES SHALL BE INCLUDED, AND UPDATED AS REQUIRED IN THE QUARTERLY
REPORTS.

L.   THE ADDRESS FOR THE DTIC (SF298) IS AS FOLLOWS:

     DEFENSE TECHNICAL INFORMATION CENTER
     9724 JOHN J. KINGMAN ROAD
     SUITE #0944
     ATTN: PAT MAWBY
     FORT BELVOIR, VA 22060-6218

M.   THE FOLLOWING PATENT CLAUSES ARE INCORPORATED INTO THE CONTRACT BY
REFERENCE:

<TABLE>
<S>    <C>             <C>
FAR     52.227-06      "ROYALTY INFORMATION" (APR 1984)
DFAR   252.227-7017    "IDENTIFICATION AND ASSERTION OF USE, RELEASE OR DISCLOSURE RESTRICTIONS" (JUNE 1995
DFAR   252.227-7019    "VALIDATION OF ASSERTED RESTRICTIONS-COMPUTER SOFTWARE" (JUNE 1995)
DFAR   252.227-7028    "TECHNICAL DATA OR COMPUTER SOFTWARE PREVIOUSLY DELIVERED TO THE GOVERNMENT" (JUNE 1995)
</TABLE>

                         *** END OF NARRATIVE A 001 ***

<PAGE>

<TABLE>
-------------------------------------------------------------------------------------------

<S>                     <C>                                                 <C>
                           Reference No. of Document Being Continued        Page 3 of 25
    CONTINUATION SHEET
                        PIIN/SIIN  DAAB07-02-C-P608          MOD/AMD
-------------------------------------------------------------------------------------------
Name of Offeror or Contractor: IRVINE SENSORS CORP
</TABLE>

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------
ITEM NO                    SUPPLIES/SERVICES                              QUANTITY   UNIT   UNIT PRICE         AMOUNT
------------------------------------------------------------------------------------------------------------------------------
<S>          <C>                                                              <C>     <C>                 <C>
             SECTION B - SUPPLIES OR SERVICES AND PRICES/COSTS

0001          Supplies or Services and Prices/Costs
              -------------------------------------

OOOlAA        IRVINE SENSORS PHASE II SBIR                                    7       LO                          395,649.00
              ----------------------------                                                                $________________

              NOUN: MIRO AIR VEH & WEAP SIGHT CAM
              SECURITY CLASS: Unclassified
              PRON: lG2OOO2ACJ   PRON AMD: 01   ACRN: AA
              AMS CD: 665502M4055
               Micro Air Vehicle and Weapon Sight IR Camera -
                The contractor shall design, fabricate,
               test, and demonstrate a Micro Air Vehicle and
               weapon Sight Infrared camera that can be used
               as a sensor for a miniature unmanned aerial
               vehicle (UAV) that transmits imagery to the
               command and control site, and as a wireless
               sensor on a rifle/pistol to transmit imagery
               of targets to the warfighter's helmet
               display, in accordance with the Statement of
               Work, found at Section J, Attachment 001.

               The period of performance for this Phase II
               SBIR is twenty-four (24) months.

               This entire Phase II R&D effort is
               incrementally funded. The first year of
               incremental funding is for $395,649.00. The
               second year of deferred incremental funding
               will be in the amount of $332,440.34. The
               total contract value is $728,089.34.

               Funding for all requirements covering the
               first year of incremental funding is provided
               under SLIN OOOlAA. The amount of $395.649.00
               is divided into seven (7) Phase II milestone
               payments consisting of one payment of
               $200,000.00, two payments of $32,608.16 each,
               and four (4) payments of $32,608.17 each.
               These payments are authorized per the monthly
               delivery schedules 001 through 007 delineated
               in SLIN OOOlAA.

               All milestone payments under SLIN OOOlAA
               correlate alternately with the Bi-Monthly
               Status Reports under SLIN 0002AA and the Bi-
               Monthly Scientific and Technical Reports
               under SLIN 0003AA, in accordance with the
               Contract Data Requirements Lists (CDRL) DD
               Form 1423. See Section J, Exhibits A and C.

                              (End of narrative BOOl)

               Inspection and Acceptance
               -------------------------
               INSPECTION: Destination     ACCEPTANCE: Destination

               Deliveries or Performance
               -------------------------
               DLVR SCH                          PERF COMPL

                REL CD           QUANTITY           DATE
               --------       -------------      ----------
------------------------------------------------------------------------------------------------------------------------------
</TABLE>

<PAGE>

<TABLE>
-------------------------------------------------------------------------------------------

<S>                     <C>                                                 <C>
                           Reference No. of Document Being Continued        Page 4 of 25
    CONTINUATION SHEET
                        PIIN/SIIN  DAAB07-02-C-P608          MOD/AMD
-------------------------------------------------------------------------------------------
Name of Offeror or Contractor: IRVINE SENSORS CORP
</TABLE>

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------
ITEM NO                    SUPPLIES/SERVICES                              QUANTITY   UNIT   UNIT PRICE         AMOUNT
------------------------------------------------------------------------------------------------------------------------------
<S>          <C>                                                              <C>     <C>                 <C>
                001              1            08-APR-2002

                           $      200,000.00

             DLVR SCH                         PERF COMPL
              REL CD         QUANTITY            DATE
             --------      ------------       -----------
                002             1             15-MAY-2002

                           $      32,608.16

             DLVR SCH                         PERF COMPL
              REL CD         QUANTITY            DATE
             --------      ------------       -----------
                003             1             15-JUN-2002

                           $      32,608.16

             DLVR SCH                         PERF COMPL
              REL CD         QUANTITY            DATE
             --------      ------------       -----------
                004             1             15-JUL-2002

                           $      32,608.17

             DLVR SCH                         PERF COMPL
              REL CD         QUANTITY            DATE
             --------      ------------       -----------
                005             1             15-AUG-2002

                           $      32,608.17

             DLVR SCH                         PERF COMPL
              REL CD         QUANTITY            DATE
             --------      ------------       -----------
                006             1             15-SEP-2002

                           $      32,608.17

             DLVR SCH                         PERF COMPL
              REL CD         QUANTITY            DATE
             --------      ------------       -----------
                007             1             15-OCT-2002

                           $      32,608.17

0002         Supplies or Services and Prices/Costs
             -------------------------------------

0002AA       PROGRESS, STATUS AND MANAGEMENT REPORTS                          1       LO                       ** NSP **
             ---------------------------------------                                                      $______________

             NOUN: BI-MONTHLY STATUS REPORTS
             SECURITY CLASS: Unclassified

              Bi-Monthly Progress, Status and Management
              Reports, to be submitted on odd numbered
              months in accordance with Contract Data
              Requirements List (CDRL) DD Form 1423,
              authority DI-MGMT-80227, see Section J,
              Exhibit A; Data Item Description (DID) DD
              Form 1664, see Section J, Exhibit B; and the
              Statement of Work (Sow).

                              (End of narrative B001)

              Inspection and Acceptance
              --------------------------
------------------------------------------------------------------------------------------------------------------------------
</TABLE>

<PAGE>

<TABLE>
-------------------------------------------------------------------------------------------

<S>                     <C>                                                 <C>
                           Reference No. of Document Being Continued        Page 5 of 25
    CONTINUATION SHEET
                        PIIN/SIIN  DAAB07-02-C-P608          MOD/AMD
-------------------------------------------------------------------------------------------
Name of Offeror or Contractor: IRVINE SENSORS CORP
</TABLE>

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------
ITEM NO                    SUPPLIES/SERVICES                              QUANTITY   UNIT   UNIT PRICE         AMOUNT
------------------------------------------------------------------------------------------------------------------------------
<S>          <C>                                                              <C>     <C>    <C>          <C>
             INSPECTION: Destination     ACCEPTANCE: Destination

             Deliveries or Performance
             -------------------------
             DLVR SCH                         PERF COMPL
              REL CD         QUANTITY            DATE
             --------      ------------       -----------
                001             1             SEE DD FORM 1423

0003         Supplies or Services and Prices/Costs
             -------------------------------------

0003AA       SCIENTIFIC AND TECHNICAL REPORTS                                 1       LO        ** NSP **       ** NSP **
             --------------------------------                                                $___________ $_____________

             SECURITY CLASS: Unclassified

              Bi-Monthly Scientific and Technical Reports
              to be submitted on even-numbered months, in
              accordance with Contract Data Requirements
              List (CDRL) DD FORM 1423, authority DI-MISC-
              80711A. see Section J, Exhibit C; Data Item
              Description (DID) DD Form 1664, see Section
              J, Exhibit D; and the Statement of Work
              (SOW).

                              (End of narrative B001)

             Description/Specs./Work Statement
             ---------------------------------
             PROCUREMENT DOCUMENTATION TITLE:
              BI-MONTHLY REPORT

             Packaging and Marking
             ---------------------

             Inspection and Acceptance
             -------------------------
             INSPECTION: Destination     ACCEPTANCE: Destination

             Deliveries or Performance
             -------------------------
             DOC                   SUPPL
             REL CD   MILSTRIP     ADDR   SIG CD   MARK FOR   TP CD
             ------   --------     ----   ------   --------   -----
              001                                               3
             DEL REL CD       QUANTITY           DEL DATE
             ----------      ----------         ----------
              001                1              SEE DD FORM 1423

             FOB POINT: Destination

             SHIP To: PARCEL POST ADDRESS
                      -------------------

             (YOOOOO)   SHIPPING INSTRUCTIONS FOR CONSIGNEE
                        (SHIP TO) WILL BE FURNISHED PRIOR
                        TO THE SCHEDULED DELIVERY DATE FOR
                        ITEMS REQUIRED UNDER THIS
                        REQUISITION.

0004         Supplies or Services and Prices/Costs
             -------------------------------------

0004AA       SCIENTIFIC AND TECHNICAL REPORTS                                 1       LO        ** NSP **       ** NSP **
             --------------------------------                                                $___________   $___________

             NOUN: ANNUAL REPORT
             SECURITY CLASS: Unclassified
------------------------------------------------------------------------------------------------------------------------------
</TABLE>

<PAGE>

<TABLE>
-------------------------------------------------------------------------------------------

<S>                      <C>                                                <C>
                           Reference No. of Document Being Continued        Page 6 of 25
    CONTINUATION SHEET
                         PIIN/SIIN  DAAB07-02-C-P608         MOD/AMD
-------------------------------------------------------------------------------------------
Name of Offeror or Contractor: IRVINE SENSORS CORP
</TABLE>

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------
ITEM NO                    SUPPLIES/SERVICES                              QUANTITY   UNIT   UNIT PRICE         AMOUNT
------------------------------------------------------------------------------------------------------------------------------
<S>          <C>                                                              <C>     <C>    <C>          <C>
              Annual Scientific and Technical Report to be
              submitted 12 months ARO, in accordance with
              Contract Data Requirements List (CDRL) DD
              Form 1423, authority DI-MISC-8071lA, see
              Section J, Exhibit E; Data Item Description
              (DID) DD Form 1664, see Section J, Exhibit F;
              and the Statement of Work (SOW).

                              (End of narrative BOOl)

             Packaging and Marking
             ---------------------

             Inspection and Acceptance
             -------------------------
             INSPECTION: Destination     ACCEPTANCE: Destination

             Deliveries or Performance
             -------------------------
             Doc                   SUPPL
             REL CD   MILSTRIP     ADDR   SIG CD   MARK FOR   TP CD
             ------   --------     ----   ------   --------   -----
              001                                               3
             DEL REL CD       QUANTITY           DEL DATE
             --------      ------------       -----------
                001              1              SEE DD FORM 1423

             FOB POINT: Destination

             SHIP TO: PARCEL POST ADDRESS
                      -------------------
             (YOOOOO)   SHIPPING INSTRUCTIONS FOR CONSIGNEE
                        (SHIP TO) WILL BE FURNISHED PRIOR
                        To THE SCHEDULED DELIVERY DATE FOR
                        ITEMS REQUIRED UNDER THIS
                        REQUISITION.

0005         Supplies or Services and Prices/Costs
             -------------------------------------

OOO5AA       SCIENTIFIC AND TECHNICAL REPORTS                                 1       Lo        ** NSP **       ** NSP **
             --------------------------------                                                $___________   $___________

             NOUN: FINAL REPORT
             SECURITY CLASS: Unclassified

              Final Scientific and Technical Report to be
              submitted 24 months ARO, in accordance with
              Contract Data Requirements List (CDRL) DD
              Form 1423, authority DI-MISC-8071lA, see
              section J, Exhibit G; Data Item Description
              (DID) DD Form 1664, see Section J, Exhibit H;
              and the Statement of Work (SOW).

                              (End of narrative BOOl)

             Packaging and Marking
             ---------------------

             Inspection and Acceptance
             -------------------------
             INSPECTION: Destination     ACCEPTANCE: Destination

             Deliveries or Performance
             -------------------------
             DOC                   SUPPL
             REL CD   MILSTRIP     ADDR   SIG CD   MARK FOR   TP CD
             ------   --------     ----   ------   --------   -----
------------------------------------------------------------------------------------------------------------------------------
</TABLE>

<PAGE>

<TABLE>
-------------------------------------------------------------------------------------------

<S>                     <C>                                                 <C>
                           Reference No. of Document Being Continued        Page 7 of 25
    CONTINUATION SHEET
                        PIIN/SIIN  DAAB07-02-C-P608          MOD/AMD
-------------------------------------------------------------------------------------------
Name of Offeror or Contractor: IRVINE SENSORS CORP
</TABLE>

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------
ITEM NO                    SUPPLIES/SERVICES                              QUANTITY   UNIT   UNIT PRICE         AMOUNT
------------------------------------------------------------------------------------------------------------------------------
<S>          <C>                                                              <C>     <C>    <C>          <C>
              001                                               3
             DEL REL CD       QUANTITY           DEL DATE
             ----------      ----------         ----------
                001              1              SEE DD FORM 1423

             FOB POINT: Destination

             SHIP TO: PARCEL POST ADDRESS
             ----------------------------
             (YOOOOO)   SHIPPING INSTRUCTIONS FOR CONSIGNEE
                        (SHIP TO) WILL BE FURNISHED PRIOR
                        TO THE SCHEDULED DELIVERY DATE FOR
                        ITEMS REQUIRED UNDER THIS
                        REQUISITION.

0006         Supplies or Services and Prices/Costs
             -------------------------------------

0006AA       SCIENTIFIC AND TECHNICAL REPORTS                                 1       Lo        ** NSP **       ** NSP **
             --------------------------------                                                $___________   $___________

             NOUN: UFPA TEST REPORT
             SECURITY CLASS: Unclassified

              Uncooled Focal Plane Array Test Report to be
              submitted 9 months ARO, in accordance with
              Contract Data Requirements List (CDRL) DD
              Form 1423, authority DI-MISC-8071lA, see
              Section J. Exhibit I; Data Item Description
              (DID) DD Form 1664, see Section J, Exhibit J;
              and the Statement of Work (SOW).

                              (End of narrative B001)

             Packaging and Marking
             ---------------------

             Inspection and Acceptance
             -------------------------
             INSPECTION: Destination     ACCEPTANCE: Destination

             Deliveries or Performance
             -------------------------
             Doc                   SUPPL
             REL CD   MILSTRIP     ADDR   SIG CD   MARK FOR   TP CD
             ------   --------     ----   ------   --------   -----
                001                                             3

             DEL REL CD       QUANTITY           DEL DATE
             ---------       ----------         ----------
                001              1              SEE DD FORM 1423

             FOB POINT: Destination

             SHIP TO: PARCEL POST ADDRESS
                      -------------------

             (YOOOOO)   SHIPPING INSTRUCTIONS FOR CONSIGNEE
                        (SHIP T0) WILL BE FURNISHED PRIOR
                        TO THE SCHEDULED DELIVERY DATE FOR
                        ITEMS REQUIRED UNDER THIS
                        REQUISITION.

0006AB       SCIENTIFIC AND TECHNICAL REPORTS                                 1       Lo        ** NSP **       ** NSP **
             --------------------------------                                                $___________   $___________

             NOUN: INFRARED CAMERA TEST REPORT
             SECURITY CLASS: Unclassified
------------------------------------------------------------------------------------------------------------------------------
</TABLE>

<PAGE>

<TABLE>
-------------------------------------------------------------------------------------------

<S>                     <C>                                                 <C>
                           Reference No. of Document Being Continued        Page 8 of 25
    CONTINUATION SHEET
                        PIIN/SIIN  DAAB07-02-C-P608          MOD/AMD
-------------------------------------------------------------------------------------------
Name of Offeror or Contractor: IRVINE SENSORS CORP
</TABLE>

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------
ITEM NO                    SUPPLIES/SERVICES                              QUANTITY   UNIT   UNIT PRICE         AMOUNT
------------------------------------------------------------------------------------------------------------------------------
<S>          <C>                                                              <C>     <C>    <C>          <C>
             Infrared Camera Test Report to be submitted
             18 months ARO, in accordance with Contract
             Data Requirements List (CDRL) DD Form 1423,
             authority DI-MISC-80711A, see Section J,
             Exhibit K; Data Item Description (DID) DD
             Form 1664, see Section J, Exhibit L; and the
             Statement of Work (SOW).

                              (End of narrative BOO1)

             Packaging and Marking
             ---------------------

             Inspection and Acceptance
             -------------------------
             INSPECTION: Destination     ACCEPTANCE: Destination

             Deliveries or Performance
             -------------------------
             DOC                 SUPPL
             REL CD   MILSTRIP     ADDR   SIG CD   MARK FOR   TP CD
             ------   --------     -----  ------   --------   -----
                001                                             3
             DEL REL CD       QUANTITY           DEL DATE
             ---------       ----------         ----------
                001              1              SEE DD FORM 1423

             FOB POINT: Destination

             SHIP TO: PARCEL POST ADDRESS
                      -------------------
             (YOOOOO)   SHIPPING INSTRUCTIONS FOR CONSIGNEE
                        (SHIP TO) WILL BE FURNISHED PRIOR
                        TO THE SCHEDULED DELIVERY DATE FOR
                        ITEMS REQUIRED UNDER THIS
                        REQUISITION.

0OO6AC       HARDWARE DELIVERABLES                                            2       EA        ** NSP **       ** NSP **
             ---------------------                                                           $___________   $___________

             NOUN: INFRARED CAMERAS
             SECURITY CLASS: Unclassified
              Deliverables due 24 months ARO, in accordance
              with the Statement of Work. Section 3.0,
              entitled, "Requirements". The contractor
              shall also deliver with the IR Cameras:

              A) User Manuals for the two (2) cameras are
              to be included in this SLIN, in accordance
              with the Statement of Work (SOW), paragraph
              3.1. Draft submission sixty (60) days prior
              to delivery for government review and
              comment.

              B) Two (2) body-worn RF Receivers are
              included under this SLIN, in accordance with
              the Statement of Work (SOW), paragraph 3.10.

                              (End of narrative BOO1)

             Packaging and Marking
             ---------------------
------------------------------------------------------------------------------------------------------------------------------
</TABLE>

<PAGE>

<TABLE>
-------------------------------------------------------------------------------------------

<S>                     <C>                                                 <C>
                           Reference No. of Document Being Continued        Page 9 of 25
    CONTINUATION SHEET
                        PIIN/SIIN  DAAB07-02-C-P608          MOD/AMD
-------------------------------------------------------------------------------------------
Name of Offeror or Contractor: IRVINE SENSORS CORP
</TABLE>

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------
ITEM NO                    SUPPLIES/SERVICES                              QUANTITY   UNIT   UNIT PRICE         AMOUNT
------------------------------------------------------------------------------------------------------------------------------
<S>          <C>                                                              <C>     <C>    <C>          <C>
             Inspection  and Acceptance
             --------------------------
             INSPECTION: Destination     ACCEPTANCE: Destination

             Deliveries or Performance
             --------------------------
             DOC                 SUPPL
             REL CD   MILSTRIP     ADDR   SIG CD   MARK FOR   TP CD
             ------   --------     -----  ------   --------   -----
                001                                             3
             DEL REL CD       QUANTITY           DEL DATE
             ---------       ----------         ----------
                001              2              DUE 24 MONTHS ARO

             FOB POINT: Destination

             SHIP TO: PARCEL POST ADDRESS
                      -------------------
             (YOOOOO)   SHIPPING INSTRUCTIONS FOR CONSIGNEE
                        (SHIP TO) WILL BE FURNISHED PRIOR
                        TO THE SCHEDULED DELIVERY DATE FOR
                        ITEMS REQUIRED UNDER THIS
                        REQUISITION.
------------------------------------------------------------------------------------------------------------------------------
</TABLE>

<PAGE>

<TABLE>
-------------------------------------------------------------------------------------------
<S>                     <C>                                                <C>
                          Reference No. of Document Being Continued        Page 10 of 25
    CONTINUATION SHEET
                        PIIN/SIIN DAAB07-02-C-P608            MOD/AMD
-------------------------------------------------------------------------------------------
Name of Offeror or Contractor: IRVINE SENSORS CORP
-------------------------------------------------------------------------------------------
</TABLE>

SECTION C - DESCRIPTION/SPECIFICATIONS/WORK STATEMENT

<TABLE>
<CAPTION>
         Regulatory Cite                                Title                                          Date
         ---------------     ------------------------------------------------------------------    ------------

<S>      <C>                 <C>                                                                     <C>
C-1      52.6900             ORDER OF PRECEDENCE, ISSUE OF SPECIFICATIONS (STATEMENT OF WORK)        JUN/1997
</TABLE>

          1. The documents listed at Attachment 001 are directly cited within
this solicitation/contract and are furnished at Section J. The equipment on
contract will be produced in accordance with these documents.

          2. The issue(s) (i.e., number, revision, title and issuance date) of
the documents cited at Attachment 001 govern over any other issue of the same
document(s) cited elsewhere within this solicitation/contract. However, When
applicable, modifications/exceptions to these documents apply as specified in
the provision entitled 'Modifications/Exceptions to Listed Specifications and
Drawings' in Section C. When necessary, copies of cancelled or superseded
specifications and/or standards applicable to this solicitation/contract are
furnished at Section J (also see provision entitled 'Cancelled Specification
Reinstated' in Section C).

          3. When applicable, a list of the Contract Data Requirements Lists
(CDRLs - DD Form 1423s) that apply to this contract is furnished at Exhibits A,
B, C, and D. The contractor will prepare and deliver the data and information in
accordance with the requirements, quantities and schedules set forth by these
CDRLs. The issue of the Data Item Description listed in the Acquisition
Management systems and Data Requirements Control List (AMSDL) (DOD 5010.12-L)
dated 01 April 2001 applies unless stated explicitly elsewhere in this
solicitation/contract. When necessary, copies of canceled or superseded Data
Item Descriptions applicable to this solicitation/contract are furnished at
Section J.

          4. The offeror/contractor is responsible for reviewing the entire
solicitation/contract to identify all directly cited and subsequent referenced
documents. Unless stated explicitly elsewhere in this solicitation/contract, the
issue of these documents is that which appears in the hard copy edition of the
Department of Defense Index of Specification and Standards (DoDISS). Immediately
upon completion of this review, the offeror/contractor will notify the Procuring
Contracting Officer (PCO) of any conflicts or misunderstandings between this
provision and other contractual requirements.

          5. All directly cited or referenced documents not furnished with this
solicitation may be obtained as follows:

                  a. Specifications, Standards and Data Item Descriptions listed
in the DoDISS. Obtain these documents from:

                                     DODSSP
                                     Building 4/Section D
                                     700 Robbins Avenue
                                     Philadelphia, PA 19111-5094

                                     FAX: (215) 697-1462

                  Note that requests for specification MIL-E-1 must include
reference to the tube type.

                  b. Commercial Specifications, Standards, and Standards and
Descriptions. When applicable, obtain these documents directly from the
publisher.

                  c. Standard Practice for Commercial Packaging
(ASTM D 3951-95). When applicable, obtain this document from:

                                     American Society for Testing and materials
                                     1916 Race Street
                                     Philadelphia, PA 19103

NOTE: You may also obtain Specification and Standard Information via the Defense
Standardization Program Office Webpage, http://www.dodssp.daps.mil Free
                                        --------------------------
registration for a UserID and password are required prior to using
ASSIST-Online. In most cases, you will be able to download cases from your
standard browser. The ASSIST-Online Website is located at:
http://assist.daps.mil

          6. Notes for Solicitations Involving Government-Furnished Drawings.
The drawings specified in this solicitation depict the physical and functional
requirements for the complete item and parts thereof. They do not contain
complete details of all intervening processes, from raw material to finished
products, which are necessary to fabricate, control, test, adjust, assemble and
inspect the equipment on order.

                  a. Drawing Review and Certification.

                       (1) The government has examined the Technical Data
Package and believes that a11 drawings and related drawing lists needed to
prepare a realistic bid/offer and construct the equipment are included therein.

<PAGE>

<TABLE>
-------------------------------------------------------------------------------------------
<S>                     <C>                                                <C>
                          Reference No. of Document Being Continued        Page 11 of 25
    CONTINUATION SHEET
                        PIIN/SIIN DAAB07-02-C-P608            MOD/AMD
-------------------------------------------------------------------------------------------
Name of Offeror or Contractor: IRVINE SENSORS CORP
-------------------------------------------------------------------------------------------
</TABLE>

                       (2) The bidder/offeror/contractor shall utilize the
documents (35 mm aperture card or digital computerized files) copies of the
drawings supplied with this solicitation as a basis for preparing the bid/offer
and constructing the equipment on order in the event of contract award. The
bidder/offeror is responsible for assuring that these documents contain all
drawings cited in Attachment -7-, excluding drawings for those items which will
be government-furnished for incorporation into the equipment on order. Missing
or illegible drawings must be reported to the PCO within 15 days after issuance
of this solicitation.

                       (3) Concurrent with the submission of the bid/offer, the
bidder/offeror will certify that the document set of drawings in the
bidder's/offeror's possession is complete and legible. If not submitted, the
successful bidder/offeror will be required to furnish such certification prior
to award.

                       (4) Failure by the bidder/offeror to advise the
government of any missing or illegible drawings, or to provide the certification
described in paragraph 6.a.(3) above will not be considered an excusable cause
for late deliveries or the submission of nonconforming supplies nor constitute
grounds for a claim against the government subsequent to contract award.

                  b. Disposition of Drawings and Specifications.

          (1) Nonclassified drawings and specifications furnished with this
solicitation/contract are not to be returned to the government. They may be
retained by the offeror for future reference or disposed of in any manner at the
discretion of the offeror.

          (2) Disposition of classified documents furnished with this
solicitation/contract shall be in accordance with Chapter 5, Section 7, of the
National Industrial Security Program Operating Manual (NISPOM), January 1995,
DoD 5220.22-M.

       7. Discrepancies in Section B Item Descriptions. The bidder/offeror is
responsible for notifying the PCO immediately in the event that:

       a. A line item in this solicitation does not identify the correct part
number, drawing number, or specification, or

       b. The identification of such parts is inconsistent, or

       c. The line item refers to an obsolete part/model or a part/model
which is no longer the latest baseline configuration for that time.

In such situations, the bidder/offeror will submit correcting information to the
PCO for evaluation and action.

                       DEFINITION OF DAC/DAYS AFTER CONTRACT

          The abbreviation 'DAC' for days after contract as used on the Contract
Data Requirements List, DD Form 1423, attached to this solicitation or contract,
means days after (checked date applies):

          (N/A) effective date of contract.

          (X) date of contract award.

(End of clause)

<PAGE>

<TABLE>
-------------------------------------------------------------------------------------------
<S>                     <C>                                                <C>
                          Reference No. of Document Being Continued        Page 12 of 25
    CONTINUATION SHEET
                        PIIN/SIIN DAAB07-02-C-P608            MOD/AMD
-------------------------------------------------------------------------------------------
Name of Offeror or Contractor: IRVINE SENSORS CORP
-------------------------------------------------------------------------------------------
</TABLE>

SECTION D - PACKAGING AND MARKING

<TABLE>
<CAPTION>
<S>      <C>                 <C>                                                                     <C>
         Regulatory Cite                                Title                                          Date
         ---------------     ------------------------------------------------------------------    ------------

D-1      52.7043             STANDARD PRACTICE FOR COMMERCIAL PACKAGING                              APR/1999
</TABLE>

          Commercial packaging of drawings, test reports, software, and other
data items shall be in accordance with ASTM D 3951-98. Hardware deliverables
shall also be packaged in accordance with ASTM D 3951-98. All packages shall be
marked in accordance with MIL-STD-129 (a waiver-free document). Bar Code
Markings are required IAN ANSI/AIM-BCl, Uniform Symbology Specification Code 39
and MIL-STD-129. Intermediate packaging is required to facilitate handling and
inventory control whenever the size of the unit package is 64 cubic inches or
less. Unit packs requiring intermediate packing shall be packed in quantities
governed by the following:

     a.           Maximum of 100 unit packs per intermediate container.
     b.           Maximum net load of 40 pounds.
     C.           Maximum size of 1.5 cubic feet with at least two dimensions
not exceeding 16 inches

Unless otherwise specified, shipments shall be unitized into a single load that
can be handled as a unit throughout the distribution system. The supplier is
responsible for performing package testing as specified in ASTM D 3951-98. The
government reserves the right to perform any of the tests.

Copies of ASTM D 3951-98 are available from the:

                                     American Society for Testing and Materials
                                     100 Barr Harbor Drive
                                     West Conshohocken, PA 19248-2959.

<PAGE>

<TABLE>
-------------------------------------------------------------------------------------------
<S>                     <C>                                                <C>
                          Reference No. of Document Being Continued        Page 13 of 25
    CONTINUATION SHEET
                        PIIN/SIIN DAAB07-02-C-P608            MOD/AMD
-------------------------------------------------------------------------------------------
Name of Offeror or Contractor: IRVINE SENSORS CORP
-------------------------------------------------------------------------------------------
</TABLE>

SECTION E - INSPECTION AND ACCEPTANCE

<TABLE>
<CAPTION>
         Regulatory Cite                                Title                                          Date
         ---------------     ------------------------------------------------------------------    ------------
<S>      <C>                 <C>                                                                     <C>
E-1      52.246-04           INSPECTION OF SERVICES - FIXED PRICE                                    AUG/1996
E-2      52.246-09           INSPECTION OF RESEARCH AND DEVELOPMENT (SHORT FORM)                     APR/1984
E-3      52.246-16           RESPONSIBILITY FOR SUPPLIES                                             APR/1984
</TABLE>

<PAGE>

<TABLE>
-------------------------------------------------------------------------------------------
<S>                     <C>                                                <C>
                          Reference No. of Document Being Continued        Page 14 of 25
    CONTINUATION SHEET
                        PIIN/SIIN DAAB07-02-C-P608            MOD/AMD
-------------------------------------------------------------------------------------------
Name of Offeror or Contractor: IRVINE SENSORS CORP
-------------------------------------------------------------------------------------------
</TABLE>

SECTION F - DELIVERIES OR PERFORMANCE

<TABLE>
<CAPTION>
<S>      <C>                 <C>                                                                     <C>
         Regulatory Cite                                Title                                          Date
         ---------------     ------------------------------------------------------------------    ------------
F-1      52.242-17           GOVERNMENT DELAY OF WORK                                                APR/1984
F-2      52.247-34           F.O.B. DESTINATION                                                      Nov/1991
</TABLE>

<PAGE>

<TABLE>
-------------------------------------------------------------------------------------------
<S>                     <C>                                                <C>
                          Reference No. of Document Being Continued        Page 15 of 25
    CONTINUATION SHEET
                        PIIN/SIIN DAAB07-02-C-P608            MOD/AMD
-------------------------------------------------------------------------------------------
Name of Offeror or Contractor: IRVINE SENSORS CORP
-------------------------------------------------------------------------------------------
</TABLE>

SECTION G - CONTRACT ADMINISTRATION DATA

<TABLE>
<CAPTION>
                                                                                       JOB
LINE       PRON/                 OBLG                                                  ORDER      ACCOUNTING      OBLIGATED
ITEM       AMS CD          ACRN  STAT   ACCOUNTING CLASSIFICATION                      NUMBER     STATION         AMOUNT
-----      ------          ----  -----  -------------------------                      ------     -----------     ----------
<S>        <C>              <C>         <C>                                            <C>        <C>             <C>
000lAA     1G20002ACJ       AA    2     21   2204000002627525P665502255Y   S28043      2JF8MS     W15GK8    $     395,649.00
     665502M4055

                                                                                                             ---------------
                                                                                                  TOTAL     $     395,649.00
</TABLE>

<TABLE>
<CAPTION>
SERVICE                                                                           ACCOUNTING                      OBLIGATED
NAME        TOTAL BY ACRN          ACCOUNTING CLASSIFICATION                      STATION                         AMOUNT
-----       -------------          -------------------------                      ----------                      ----------
<S>               <C>              <C>                                            <C>                             <C>
Army              AA               21   2204000002627525P665502255Y    S28043     W15GK8                    $     395,649.00
                                                                                                             ---------------

                                                                                  TOTAL                     $     395,649.00
</TABLE>

<TABLE>
<CAPTION>
         Regulatory Cite                                Title                                          Date
         ---------------     ------------------------------------------------------------------    ------------
<S>      <C>                 <C>                                                                     <C>
G-1      252.204-7004        REQUIRED CENTRAL CONTRACTOR REGISTRATION (CCR)                          NOV/2001
</TABLE>

     a) Definitions.

        As used in this clause--

          (1) Central Contractor Registration (CCR) database means the primary
DoD repository for contractor information required for the conduct of business
with DoD.

          (2) Data Universal Numbering System (DUNS) number means the 9-digit
number assigned by Dun and Bradstreet Information Services to identify unique
business entities.

          (3) Data Universal Numbering System +4 (DUNS+4) number means the DUNS
number assigned by Dun and Bradstreet plus a 4-digit suffix that may be assigned
by a parent (controlling) business concern. This 4-digit suffix may be assigned
at the discretion of the parent business concern for such purposes as
identifying subunits or affiliates of the parent business concern.

          (4) Registered in the CCR database means that all mandatory
information, including the DUNS number or the DUNS+4 number, if applicable, and
the corresponding Commercial and Government Entity (CAGE) code, is in the CCR
database; the DUNS number and the CAGE code have been validated; and all edits
have been successfully completed.

     (b) (1) By submission of an offer, the offeror acknowledges the requirement
that a prospective awardee must be registered in the CCR database prior to
award, during performance, and through final payment of any contract resulting
from this solicitation, except for awards to foreign vendors for work to be
performed outside the United States.

          (2) The offeror shall provide to its DUNS or, if applicable, its
DUNS+4 number with its offer, which will be used by the Contracting Officer to
verify that the offeror is registered in the CCR database.

          (3) Lack of registration in the CCR database will make an offeror
ineligible for award.

          (4) DoD has established a goal of registering an applicant in the CCR
database within 48 hours after receipt of a complete and accurate application
via the Internet. However, registration of an applicant submitting an
application through a method other than the Internet may take up to 30 days.
Therefore, offerors that are not registered should consider applying for
registration immediately upon receipt of this solicitation.

          (c) The Contractor is responsible for the accuracy and completeness of
the data within the CCR, and for any liability resulting from the Government's
reliance on inaccurate or incomplete data. To remain registered in the CCR
database after initial registration, the Contractor is required to confirm on
an annual basis that its information in the CCR database is accurate and
complete.
          (d) Offerors and contractors may obtain information and annual
confirmation requirements by calling 1-888-227-2423, or via the Internet at:

                              http://www.ccr.gov

<PAGE>

<TABLE>
-------------------------------------------------------------------------------------------
<S>                     <C>                                                <C>
                          Reference No. of Document Being Continued        Page 16 of 25
    CONTINUATION SHEET
                        PIIN/SIIN DAAB07-02-C-P608            MOD/AMD
-------------------------------------------------------------------------------------------
Name of Offeror or Contractor: IRVINE SENSORS CORP
-------------------------------------------------------------------------------------------
</TABLE>

                               (End of Clause)

<TABLE>
<S>      <C>                 <C>                                                                     <C>
G-2      52.7025             PLACE OF PERFORMANCE AND SHIPPING POINT                                 MAR/1999
</TABLE>

1. The work called for herein will be performed by the contractor at the
following location(s):

          Location of Final Manufacture: Costa Mesa, California
                                               (City, County, State)

          Packaging and Packing:  Costa Mesa, California
                                 -----------------------
                                       (City, County, State)

          Shipping Point (at or near): N/A
                                       (Street Address, City, State, Zip Code)

          Producing facilities: Irvine Sensors Corporation, 3001 Redhill Avenue,
Building #4, Costa Mesa, CA 92626
                              (0wner.street Address, City, State, zip code)

          operator: Irvine Sensors Corporation
                      (operator, Street Address, City, State, zip code)

Contractor's office which will receive payment, supervise and administer the
contract:

                Irvine Sensors Corporation, 3001 Redhill Avenue, Building #4,
Costa Mesa, CA 92626
                      (street Address, City, State)

     2. Contractor's address on the face page of the contract will be considered
as the location of any of the above elements which are not completed to indicate
a different address.

     3. UNCLASSIFIED CONTRACTS. Unless the prior written approval of the
        ----------------------
Procuring Contracting Officer (PCO) is obtained, the contractor shall not change
the specified place of manufacture, packaging and packing, shipping point and/or
producing facilities. Additionally, if such a change is made, the Government
shall have the right to deduct from the contract price any increased costs
(shipping, administration, etc.) which the Government may incur as a result of
the change as well as any savings (labor costs, etc.) that the Government may be
entitled to under the Changes clause.

     4. CLASSIFIED CONTRACTS AND ANY CONTRACT THE PERFORMANCE OF WHICH WILL
        -------------------------------------------------------------------
REQUIRE ACCESS TO CLASSIFIED INFORMATION OR MATERIAL. Unless the written
----------------------------------------------------
approval of the Contracting Officer is obtained in advance, performance under
this contract may not be carried on in any plant or factory other than that
specified in paragraph 1 of this clause.

<TABLE>
<S>      <C>                 <C>                                                                     <C>
G-3      52.7050             ADMINISTRATIVE DATA/INSTRUCTIONS TO PAYING OFFICE                       MAR/1999
</TABLE>

     Project Designation:  Phase I1 SBIR, Topic A00-047, "Micro Air Vehicle and
                          -----------------------------------------------------
Weapon Sight Infrared Camera".
------------------------------

     Initiating Activity: US ARMY CECOM, RDEC, NVESD_
     (ltem/Project Manager) Gwendolyn Newsome, Project Leader

     Controlled Item Report Requirements:N/A_

     Invoice Address: AMSEL-RD-NV-ST-IR

     INSTRUCTIONS TO PAYING OFFICE:

     a. The Purchasing Office representative is: Catherine DiMatteo, Contract
Specialist

          Name: Catherine DiMatteo, Contract Specialist

          Organization Code: AMSEL-AC-CC-RT-J

          Telephone Area code and No.: (732)532-3320
                                       -------------

          DSN/Autovon No.: 992-3320

<PAGE>

<TABLE>
-------------------------------------------------------------------------------------------
<S>                     <C>                                                  <C>
                          Reference No. of Document Being Continued        Page 17 of 25
    CONTINUATION SHEET
                        PIIN/SIIN DAAB07-02-C-P608            MOD/AMD
-------------------------------------------------------------------------------------------
Name of Offeror or Contractor: IRVINE SENSORS CORP
-------------------------------------------------------------------------------------------
</TABLE>

     b. Payment will be made by the office designated in Block 12 of Standard
Form 26, Block 25 of Standard Form 33, or Block 15 of DD Form 1155. In the
case of cost reimbursement type contracts, vouchers should be submitted directly
to the cognizant Defense Contract Audit Agency (DCAA). Upon request, the
Administrative Contracting Officer (ACO) will furnish the address of the
cognizant DCAA. For other type contracts, the invoice should be forwarded
directly to the designated paying office.

     c. See FAR 52.232-33, Mandatory Information for Electronic Funds Transfer
Payment. If payment is not available via electronic transfer then payment to the
contractor shall be mailed to the following address (if other than the address
shown on SF-26, SF-33 or DD Form 1155):

          Name:

          Address:
          (City, State,
          zip code)

          UNIT OF PURCHASE: Due to automation, when shipping or billing for the
item(s) under this contract, the unit of purchase set forth in the Schedule,
Section B, for each item must be used; e.g., if the quantity column indicates
                         ----
'144' for the item and the unit of purchase column indicates 'ea', the system
will reject shipping and billing documents which indicate '1 gross'.

          NOTE TO PAYING OFFICE: To properly match disbursements with their
corresponding receiving/acceptance document, the paying office shall ensure that
the invoice/voucher is disbursed from only those accounting classification
                                      ----
reference numbers (ACRNs) and their corresponding subline item numbers (SLINs)
indicated on the invoice/voucher, acceptance statement or receiving report.

<TABLE>
<S>      <C>                 <C>                                                                     <C>
G-4      52.7055             MANDATORY USE OF GOVERNMENT TO GOVERNMENT ELECTRONIC MAIL               JUN/1999
</TABLE>

     (a) Unless exempted by the Procuring Contracting Officer in writing,
communication after contract award between Government agencies shall be
transmitted via electronic mail (e-mail).

     (b) The following examples include, but are not limited to, the types of
communication that shall be transmitted via e-mail:

          Instructions to Contract Ordering Officer
          Instructions to Administrative Contracting officer*
          Instructions to other Defense Contract management Command personnel*
          Instructions to Defense Finance Administration Services
          Instructions to Defense Contract Audit Agency

     *Includes Government to Government data not covered by the Government's
Defense Contract Management Contract ALERTS Program. Audits and audit requests
shall be processed through the Monitoring and Analysis Branch, e-mail box
AMSEL-AC-SP-D@mail1.monmouth.army.mil.
-------------------------------------

     (c) See Section H Clause 52.6110, Mandatory Use of Contractor to Government
Electronic Mail, for further guidance.

NOTE: Upon receipt of the Contract, respective Government agencies using e-mail
shall provide the Procuring Contracting Officer with their e-mail address, name,
title, office symbol, contract number, telephone and fax numbers to the e-mail
address set forth in Section H, 52.6110.

                               (End of clause)

<PAGE>

<TABLE>
-------------------------------------------------------------------------------------------
<S>                     <C>                                                  <C>
                          Reference No. of Document Being Continued        Page 18 of 25
    CONTINUATION SHEET
                        PIIN/SIIN DAAB07-02-C-P608            MOD/AMD
-------------------------------------------------------------------------------------------
Name of Offeror or Contractor: IRVINE SENSORS CORP
-------------------------------------------------------------------------------------------
</TABLE>

SECTION H - SPECIAL CONTRACT REQUIREMENTS

<TABLE>
<CAPTION>
         Regulatory Cite                                Title                                          Date
         ---------------     ------------------------------------------------------------------    ------------
<S>      <C>                 <C>                                                                     <C>
H-1      252.204-7003        CONTROL OF GOVERNMENT PERSONNEL WORK PRODUCT                            APR/1992

H-2      52.6110             MANDATORY USE OF CONTRACTOR TO GOVERNMENT ELECTRONIC MAIL               JUN/l999
</TABLE>

(a) Unless exempted by the Contracting Officer in writing, communications after
contract award shall be transmitted via electronic mail (e-mail). This shall
include all communication between the Government and the contractor except
Contract Awards, Contract Modifications, Proposals, Procurement Sensitive
Information, Classified Information and Proprietary Information. Return receipt
will be used if a commercial application is available. CECOM will announce
commercial applications for these items when they are available. At that time
the above items will also be sent via e-mail.

     (b) The format for all communication shall be compatible with the
following: Microsoft Office 95 or higher.

     (c) Files larger than 1/2 megabytes must use alternate means of
transmission such as Zip Compression/Inflation (Winzip), File Transfer Protocol,
WinFax or any Fax Modem. (Note: This includes both the text message and the
attachment.)  If an attachment is in binary format, the number of bytes for the
attachment increases by 33%. Large items can be put on disk and mailed with the
Contracting Officer's approval.

     (d) A copy of all communications, with the exception of technical reports,
sha11 be provided to the contract specialist.

     (e) The following examples include, but are not limited to, the types of
communication that shall be transmitted via e-mail:

          Routine Letters
          Requests for Proposals under the contract
          Price Issues (except contractor pricing data)
          Contract Data Requirements List Submittals
          Contract Data Requirements List Comments
          Approvals/Disapprovals by the Government
          Technical Evaluations of Contract Items
          Clarifications
          Configuration Control
          Drawings (not to exceed 1/2 megabyte)
          Revised Shipping Instructions
          Change Order Directions

     (f) In order to be contractually binding, all Government communications
must be sent from the Contracting Officer's e-mail address and contain the /s/
symbol above the Contracting Officer's signature block. The contractor shall
designate the personnel with signature authority who can contractually bind the
contractor. All binding contractor communication shall be sent from this
contractor e-mail address.

     (g) The Government reserves the right to upgrade to more advanced
commercial applications at any time during the life of the contract.

     (h) Upon award, the Contractor shall provide the Contracting Officer with a
list of e-mail addresses for all administrative and technical personnel assigned
to this contract. If known, the contractor shall also furnish the e-mail
addresses of the Administrative Contracting Officer, DFAS and DCAA cognizant
personnel. Upon receipt of the contract, all recipients are required to forward
their e-mail address, name, title, office symbol, contract number, telephone
number and fax number to the Contracting Officer's e-mail address listed below:

     (i) The Contracting Officer's e-mail address is: Virginia.Knight@mail1.
         monmouth.army.mil
         The Contract Specialist's e-mail address is Catherine.DiMatteo@mail1.
         monmouth.army.mil

                               (End of clause)

<TABLE>
<S>      <C>                 <C>                                                                     <C>
H-3      52.6115             MATERIAL INSPECTION AND RECEIVING REPORTS (DD FORM 250) DFARS     APR/1999
                             APPENDIX P
</TABLE>

(a) Addresses required for special distribution in accordance with Table 2 and
additional distribution requirements not covered by DOD FARS Appendix F, Tables
1 and 2 are as follows:

<PAGE>

<TABLE>
-------------------------------------------------------------------------------------------
<S>                     <C>                                                <C>
                          Reference No. of Document Being Continued        Page 19 of 25
    CONTINUATION SHEET
                        PIIN/SIIN DAAB07-02-C-P608            MOD/AMD
-------------------------------------------------------------------------------------------
Name of Offeror or Contractor: IRVINE SENSORS CORP
-------------------------------------------------------------------------------------------
</TABLE>

          ADDRESS                             No. OF COPIES
          -------                             -------------
          Commander,                             1
          US Army CECOM, AMSEL-RD-NV-ST-IR
          ATTN:Gwendolyn W. Newsome
          Fort Belvoir, VA 22060-5806

          Commander,                             1
          US Army CECOM, AMSEL-AC-CC-RT-J
          ATTN: Catherine DiMatteo
          Fort Monmouth, NJ 07703-5000

     (b) These special distribution instructions shall be included in any
subcontract hereunder where the items produced by the subcontractor are to be
shipped directly to the Government.

PROCEDURAL NOTE: In accordance with FAR 32.905(f), all invoice payments shall
be supported by a receiving report or any other Government documentation
authorizing payment to include, but not limited to the following:

     (1) Contract number or other authorization for supplies delivered or
     services performed.

     (2) Description of supplies delivered or services performed.

     (3) Quantities of supplies received and accepted or services performed, if
     applicable.

     (4) Date supplies delivered or services performed.

     (5) Date supplies or services were accepted by the designated Government
     official.

     (6) Signature, or when permitted by agency regulations, electronic
     equivalent, printed name, title, mailing address, and telephone number of
     the designated Government official responsible for acceptance or approval
     functions.

The Department of Defense Activity Address Code (DODAAC) may be used in lieu of
the mailing address. E-mail addresses, if possible, shall be added to facilitate
communication and the Contractor's Tax Identification Number (TIN) should also
be included on the respective invoices for tracking purposes.

DFAS (Payment Office) WILL RETURN TO SENDER ANY RECEIVING REPORTS (INCLUDING DD
-------------------------------------------------------------------------------
FORM 250) WHICH DO NOT CONTAIN THE REQUIRED INFORMATION.
-------------------------------------------------------

<TABLE>
<S>      <C>                 <C>                                                                     <C>
H-4      252.232-7007        LIMITATION OF GOVERNMENT'S OBLIGATION                                   AUG/1993
</TABLE>

     (a) Contract line item 000lAA is incrementally funded. For these item(s),
the sum of $395,649.00 of the total price is presently available for payment and
allotted to this contract. An allotment schedule is set forth in paragraph (i)
of this clause.
     (b) For item(s) identified in paragraph (a) of this clause, the Contractor
agrees to perform up to the point at which the total amount payable by the
Government, including reimbursement in the event of termination of those item(s)
for the Government's convenience, approximates the total amount currently
allotted to the contract. The Contractor will not be obligated to continue work
for those item(s) beyond that point. The Government will not be obligated in
any event to reimburse the Contractor in excess of the amount allotted to the
contract for those item(s) regardless of anything to the contrary in the clause
entitled "Termination for Convenience of the Government." AS used in this
clause, the total amount payable by the Government in the event of termination
of applicable contract line item(s) for convenience includes costs, profit, and
estimated termination settlement costs for those item(s).
     (c) Notwithstanding the dates specified in the allotment schedule in
paragraph (i) of this clause, the Contractor will notify the Contracting Officer
in writing at least ninety days prior to the date when, in the Contractor's best
judgment, the work will reach the point at which the total amount payable by
the Government, including any cost for termination for convenience, will
approximate 85 percent of the total amount then allotted to the contract for
performance of the applicable item(s). The notification will state (1) the
estimated date when that point will be reached and (2) an estimate of additional
funding, if any, needed to continue performance of applicable line items up to
the next scheduled date for allotment of funds identified in paragraph (i) of
this clause, or to a mutually agreed upon substitute date. The notification will
also advise the Contracting Officer of the estimated amount of additional funds
that will be required for the timely performance of the item(s) funded pursuant
to this clause, for a subsequent period as may be specified in the allotment
schedule in paragraph (i) of this clause or otherwise agreed to by the parties.
If after such notification additional funds are not allotted by the date
identified in the Contractor's notification, or by an agreed substitute date,
the Contracting Officer

<PAGE>

--------------------------------------------------------------------------------
                     Reference No. of Document Being Continued     Page 20 of 25
CONTINUATION SHEET
                     PIIN/SIIN DAAB07-02-C-P608          MOD/AMD
--------------------------------------------------------------------------------
Name of Offeror or Contractor: IRVINE SENSORS CORP
--------------------------------------------------------------------------------

will terminate any item(s) for which additional funds have not been allotted,
pursuant to the clause of this contract entitled "Termination for Convenience of
the Government."
     (d) When additional funds are allotted for continued performance of the
contract line item(s) identified in paragraph (a) of this clause, the parties
will agree as to the period of contract performance which will be covered by the
funds. The provisions of paragraphs (b) through (d) of this clause will apply in
like manner to the additional allotted funds and agreed substitute date, and
the contract will be modified accordingly.
     (e) If, solely by reason of failure of the Government to allot additional
funds, by the dates indicated below, in amounts sufficient for timely
performance of the contract line item(s) identified in paragraph (a) of this
clause, the Contractor incurs additional costs or is delayed in the performance
of the work under this contract and if additional funds are allotted, an
equitable adjustment will be made in the price or prices (including appropriate
target, billing, and ceiling prices where applicable) of the item(s), or in the
time of delivery, or both. Failure to agree to any such equitable adjustment
hereunder will be a dispute concerning a question of fact within the meaning of
the clause entitled "Disputes."
     (f) The Government may at any time prior to termination allot additional
funds for the performance of the contract line item(s) identified in
paragraph (a) of this clause.
     (g) The termination provisions of this clause do not limit the rights of
the Government under the clause entitled "Default."  "The provisions of this
clause are limited to the work and allotment of funds for the contract line
item(s) set forth in paragraph (a) of this clause. The clause no longer applies
once the contract is fully funded except with regard to the rights or
obligations of the parties concerning equitable adjustments negotiated under
paragraph (d) or (e) of this clause.
     (h) Nothing in this clause affects the right of the Government to terminate
this contract pursuant to the clause of this contract entitled "Termination for
convenience of the Government."
     (i) The parties contemplate that the Government will allot funds to this
contract in accordance with the following schedule:

           Funds Allocated on execution of Contract:    $395,649.00
           Deferred Funding:                            $332,440.34
           Total Contract Value:                        $728,089.34

The period of performance for this Phase II SBIR is twenty-four (24) months.

This entire Phase II R&D effort is incrementally funded. The first year of
incremental funding is for $395,649.00. The second year of deferred incremental
funding will be in the amount of $332,440.34. The total contract value is
$728,089.34. The second year of deferred incremental funding will also be
delineated in 12 monthly milestone payments when the funding becomes available.

Funding for all requirements covering the first year of incremental funding is
provided under SLIN OOOlAA. The amount of $395,649.00 is divided into seven (7)
Phase II milestone payments consisting of one (1) payment of $200,000.00, two
(2) payments of $32,608.16 each, and four (4) payments of $32,608.17 each. These
payments are authorized per the monthly delivery schedules 001 through 007
delineated in SLIN 001AA.

All milestone payments under SLIN OOOlAA correlate alternately with
the Bi-Monthly Status Reports under SLIN 0002AA and the Bi-Monthly Scientific
and Technical Reports under SLIN 0003AA,  in accordance with Contract Data
Requirements Lists (CDRL) DD Form 1423. See Section J, Exhibits A and C.

  H - 5     252.235-7011     FINAL SCIENTIFIC OR TECHNICAL REPORT       SEP/1999
     The Contractor shall submit two copies of the approved scientific or
technical report delivered under this contract to the Defense Technical
Information Center (DTIC), Attn: DTIC-OC, 8725 John J. Kingman Road, Suite 0944,
Fort Belvoir, Virginia, VA 22060- 6218. The Contractor shall include a completed
Standard Form 298, Report Documentation Page, with each copy of the report. For
submission of reports in other than paper copy, contact the Defense Technical
Information Center, Attn: DTIC-OC, 8725 John J. Kingman Road, Suite 0944, Fort
Belvoir, Virginia, VA 22060-6218

  H - 6     52.7520          RELEASE OF INFORMATION MATERIAL TO THE    SEP/1997
                             PUBLIC BY PUBLICATION OR OTHER MEANS OF
                             DISSEMINATION AND MARKING OF TECHNICAL
                             REPORTS POTENTIALLY DISCLOSING INVENTIONS
Scientific and technical information received in performance of, or generated by
industry in performance of, an Army Contract will not be released to the public
if it discloses classified or unclassified military applications, if the
disclosure will be adverse to the national interest or will contain subject
matter requiring review by the Department of Defense prior to release. In
addition, release of information material which would generate national public
interest is to be announced at the seat of Government and not by private
industry. To preclude unauthorized release, information material which the
contractor intends to publish or release to the public by other means will be
forwarded to the Contracting Officer for approval prior to release. The
following listing indicates the number of copies to be submitted for review and
the time frame required by the Government to provide approval for release. The
request for release shall indicate the date by which approval is required:

<PAGE>

--------------------------------------------------------------------------------
                     Reference No. of Document Being Continued     Page 21 of 25
CONTINUATION SHEET
                     PIIN/SIIN DAAB07-02-C-P608          MOD/AMD
--------------------------------------------------------------------------------
Name of Offeror or Contractor: IRVINE SENSORS CORP
--------------------------------------------------------------------------------

<TABLE>
<CAPTION>
            Material to be                                                     Number of       Days Required By
            Reviewed/Approved                                                    Copies          Government to
            -----------------                                                 -----------------------------------
Approve
-------
<S>         <C>                                                                     <C>               <C>
            Written materials and still photographs (properly captioned).           1                 20

            Scientific and Technical Papers and Presentations (each copy            3                 30
            will include appropriate copies of all viewgraph, photographs,
            charts, graphs and similar material properly captioned).

            Technical information which might pertain to potential 'subject         3                 30
            inventions', the 'Patent Rights' requirement in Section H.

            Fact Sheets, Pamphlets and Brochures (each copy will include            3                 30
            full text, layout and all illustrative material).

            Contractor Advertisements (each copy will include text and              1                 20
            layout, including artwork and photographs as proposed for final
            publication).

            Exhibits-Design/Layout with test of copy to appear on display           3                 30
            material and all artwork and photographs proposed for
            exhibition.

            Motion Picture Productions will have a series of reviews
            conducted as follows:

            (1) Preliminary written story/concept                                   3                 30

            (2) Final shooting script, including scene description/narration        3                 25

            (3) Rough cut film minus sound track before final editing; copy
            of final draft narration or final print with final narration.

            Tv NEWS FILM
            ------------

            One B-wind master for eventual release and file and two prints                            30
            for review and return to originator.
</TABLE>

     (Material will be reviewed and normally approved at CECOM. Some
documentation/material involving presentation outside the U.S.A. or material
involving tri-service coordination will require US Army Materiel Command,
Department of Army or Department of Defense approval. Fifteen (15) days
additional time will be needed for approval of speeches and 40 days additional
time will be needed for approval of manuscripts and other material, if approval
is required above CECOM level.)

     Notification of approval to release may be received in writing or verbally.
If received verbally, it will be confirmed in writing by the Contracting
Officer. The contractor shall provide the name and telephone number of the
person to be notified verbally.

MARKING OF TECHNICAL REPORTS POTENTIALLY DISCLOSING INVENTIONS

Any report of either an interim nature or any final report not intended for
public distribution which contains potentially patentable subject matter, shall
have the following legend prominently displayed on its cover:

              Notwithstanding any other legends marked hereon, this
               document contains information which may disclose a
           patentable invention in which the Government has a right,
          title or interest. Further distribution of this document to
             any non-governmental agency is prohibited without the

<PAGE>

--------------------------------------------------------------------------------
                     Reference No. of Document Being Continued     Page 22 of 25
CONTINUATION SHEET
                     PIIN/SIIN DAAB07-02-C-P608          MOD/AMD
--------------------------------------------------------------------------------
Name of Offeror or Contractor: IRVINE SENSORS CORP
--------------------------------------------------------------------------------
      written approval of US Army CECOM, Fort Monmouth, NJ(see 35 USC 205).

<PAGE>

--------------------------------------------------------------------------------
                     Reference No. of Document Being Continued     Page 23 of 25
CONTINUATION SHEET
                     PIIN/SIIN DAAB07-02-C-P608          MOD/AMD
--------------------------------------------------------------------------------
Name of Offeror or Contractor: IRVINE SENSORS CORP
--------------------------------------------------------------------------------

SECTION I - CONTRACT CLAUSES

<TABLE>
<CAPTION>
          Regulatory Cite                                       Title                                           Date
          ---------------    ---------------------------------------------------------------------------    -------------
<S>       <C>                <C>                                                                              <C>
I-1       52.202-1           DEFINITIONS                                                                      DEC/2001
I-2       52.203-3           GRATUITIES                                                                       APR/1984
I-3       52.203-5           CONVENANT AGAINST CONTINGENT FEES                                                APR/1984
I-4       52.203-6           RESTRICTIONS ON SUBCONTRACTOR SALES To THE GOVERNMENT                            JUL/1995
I-5       52.203-6           RESTRICTIONS ON SUBCONTRACTOR SALES TO THE GOVERNMENT(JUL 1995) AND              JUL/1995
                             ALTERNATE I (0CT 1995)
I-6       52.203-7           ANTI-KICKBACK(PROCEDURES                                                        JUL/1995
I-7       52.203-8           CANCELLATION, RESCISSION, AND RECOVERY OF FUNDS FOR ILLEGAL OR                   JAN/1997
                             IMPROPER ACTIVITY
I-8       52.203-10          PRICE OR FEE ADJUSTMENT FOR ILLEGAL OR IMPROPER ACTIVITY                         JAN/1997
I-9       52.203-12          LIMITATION ON PAYMENTS TO INFLUENCE CERTAIN FEDERAL TRANSACTIONS                 JUN/1997
I-10      52.204-4           PRINTING/COPYING DOUBLE-SIDED ON RECYCLED PAPER                                  AUG/2000
1-11      52.209-6           PROTECTING THE GOVERNMENT'S INTEREST WHEN SUBCONTRACTING WITH                    JUL/1995
                             CONTRACTORS DEBARRED, SUSPENDED, OR PROPOSED FOR DEBARMENT
I-12      52.211-15          DEFENSE PRIORITY AND ALLOCATION REQUIREMENTS                                     SEP/1990
I-13      52.215-8           ORDER OF PRECEDENCE--UNIFORM CONTRACT FORMAT                                     OCT/l997
1-14      52.215-10          PRICE REDUCTION FOR DEFECTIVE COST OR PRICING DATA                               OCT/l997
I-15      52.222-20          WALSH-HEALEY PUBLIC CONTRACTS ACT                                                DEC/1996
I-16      52.222-35          EQUAL OPPORTUNITY FOR SPECIAL DISABLED VETERANS, VETERANS OF THE                 DEC/2001
                             VIETNAM ERA & OTHER ELIGIBLE VETERANS
I-17      52.222-36          AFFIRMATIVE ACTION FOR WORKERS WITH DISABILITES                                  JUN/1998
I-18      52.222-37          EMPLOYMENT REPORTS ON SPECIAL DISABLED VETERANS, VETERANS OF THE                 DEC/2001
                             VIETNAM ERA AND OTHER ELIGIBLE VETERANS
I-19      52.223-02          CLEAN AIR AND WATER                                                              APR/1984
I-20      52.223-6           DRUG-FREE WORKPLACE                                                              MAR/2OOl
I-21      52.225-10          NOTICE OF BUY AMERICAN ACT/BALANCE OF PAYMENTS PROGRAM REQUIREMENT--             FEB/2000
                             CONSTRUCTION MATERIALS
I-22      52.225-13          RESTRICTIONS ON CERTAIN FOREIGN PURCHASES                                        JUL/2000
I-23      52.227-1           AUTHORIZATION AND CONSENT (JUL 1995) AND ALTERNATE I (APR 1984)                  JUL/1995
I-24      52.227-2           NOTICE AND ASSISTANCE REGARDING PATENT AND COPYRIGHT INFRINGEMENT                AUG/1996
1-25      52.227-09          REFUND OF ROYALTIES                                                              APR/1984
I-26      52.227-11          PATENT RIGHTS - RETENTION BY THE CONTRACTOR (SHORT FORM)                         JUN/1997
I-27      52.229-3           FEDERAL STATE, AND LOCAL TAXES                                                   JAN/1991
I-28      52.229-05          TAXES - CONTRCTS   PERFORMED IN U.S. POSSESSIONS OR PUERTO RICO                  APR/1984
1-29      52.232-02          PAYMENTS UNDER   FIXED-PRICE RESEARCH AND DEVELOPMENT CONTRACTS                  APR/1984
I-30      52.232-17          INTEREST                                                                         JUN/1996
I-31      52.232-23 ALT      ASSIGNMENT OF CLAIMS (JAN 1986) AND ALTERNATE I (APR 1984)                       JAN/1986
          I
I-32      52.232-25          PROMPT PAYMENT                                                                   MAY/2001
1-33      52.232-33          PAYMENT BY ELECTRONIC FUNDS TRANSFER - CENTRAL CONTRACTOR                        MAY/1999
                             REGISTRATION
I-34      52.233-1           DISPUTES                                                                         DEC/1998
I-35      52.242-13          BANKRUPTCY                                                                       JUL/1995
I-36      52.243-01          CHANGES - FIXED PRICE                                                            AUG/1987
I-37      52.244-5           COMPETITION IN SUBCONTRACTING                                                    DEC/1996
1-38      52.249-02          TERMINATION FOR CONVENIENCE OF THE GOVERNMENT (FIXED-PRICE)                      SEP/I996
1-39      52.249-09          DEFAULT (FIXED-PRICE RESEARCH AND DEVELOPMENT)                                   APR/1984
I-40      252.203-7001       PROHIBITION ON PERSONS CONVICTED OF FRAUD OR OTHER DEFENSE-CONTRACT-             MAR/1999
                             RELATED FELONIES
I-41      252.205-7000       PROVISION OF INFORMATION TO COOPERATIVE AGREEMENT HOLDERS                        DEC/1991
I-42      252.209-7000       ACQUISITION FROM SUBCONTRACTORS SUBJECT TO ON-SITE INSPECTION UNDER             NOV/1995
                             THE INTERMEDIATE-RANGE NUCLEAR FORCES (INF) TREATY
I-43      252.225-7009       DUTY-FREE ENTRY--QUALIFYING COUNTRY SUPPLIES (END   PRODUCTS AND                 AUG/2000
                             COMPONENTS)
I-44      252.225-7012       PREFERENCE FOR CERTAIN DOMESTIC COMMODITIES                                      AUG/2000
I-45      252.225-7031       SECONDARY ARAB   BOYCOTT OF ISRAEL                                               JUN/1992
i-46      252.227-7016       RIGHTS IN BID OR PROPOSAL INFORMATION                                            JUN/1995
I-47      252.227-7018       RIGHTS IN NONCOMMERCIAL TECHNICAL DATA AND COMPUTER SOFTWARE--SMALL              JUN/1995
                             BUSINESS INNOVATIVE RESEARCH (SBIR) PROGRAM
I-48      252.227-7027       DEFERRED ORDERING OF TECHNICAL DATA OR COMPUTER SOFTWARE                         APR/1988
1-49      252.227-7030       TECHNICAL DATA--WITHHOLDING OF PAYMENT                                           MAR/2000
I-50      252.227-7036       DECLARATION OF TECHNICAL DATA CONFORMITY                                         JAN/1997
</TABLE>

<PAGE>

--------------------------------------------------------------------------------
                     Reference No. of Document Being Continued     Page 24 of 25
CONTINUATION SHEET
                     PIIN/SIIN DAAB07-02-C-P608          MOD/AMD
--------------------------------------------------------------------------------
Name of Offeror or Contractor: IRVINE SENSORS CORP
--------------------------------------------------------------------------------

<TABLE>
<CAPTION>
          Regulatory Cite                                       Title                                           Date
          ---------------    ---------------------------------------------------------------------------    -------------
<S>       <C>                <C>                                                                              <C>
I-51      252.227-7037       VALIDATION OF RESTRICTIVE MARKINGS ON TECHNICAL DATA                             SEP/1999
I-52      252.243-7001       PRICING OF CONTRACT MODIFICATIONS                                                DEC/1991
I-53      252.246-7000       MATERIAL INSPECTION AND RECEIVING REPORT                                         DEC/1991

I-54      52.244-6           SUBCONTRACTS FOR COMMERCIAL ITBMS                                                DEC/2001
</TABLE>

     (a) Definitions.

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

            "Subcontract," as used in this clause, 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 shal1
     incorporate, and require its subcontractors at all tiers to
     incorporate, commercial items or nondevelopmental item as
     components of items to be supplied under this contract.

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

         (i) 52.219-08, Utilization of Small Business Concerns (Oct 2000)(15
U.S.C. 637(d)(2)(3)), in all subcontracts that offer further subcontracting
opportunities. If the subcontract (except subcontracts to small business
concerns) exceed $500,000.00 ($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 (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 (29
         U.S.C.793); and

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

         (2) While not required, the Contractor may flow down to the
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)

I - 55     52.252-02      CLAUSES INCORPORATED BY REFERENCE             FEB/1998
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.

<PAGE>

--------------------------------------------------------------------------------
                     Reference No. of Document Being Continued     Page 25 of 25
CONTINUATION SHEET
                     PIIN/SIIN DAAB07-02-C-P608          MOD/AMD
--------------------------------------------------------------------------------
Name of Offeror or Contractor: IRVINE SENSORS CORP
--------------------------------------------------------------------------------

SECTION J - LIST OF ATTACHMENTS

<TABLE>
<CAPTION>
    List of                                                                                               Number
    Addenda                       Title                                                        Date      of Pages     Transmitted By
----------------     ----------------------------------------------------------------------  ---------  -----------  ---------------
<S>                  <C>                                                                       <C>        <C>         <C>
Exhibit A            CDRL DD FORM 1423 DI-MGMT-80227-MONTHLY REPORT
Exhibit B            DATA ITEM DESCRIPTION (DID) DD FORM 1664
Exhibit C            CDRL DD FORM 1423 DI-MISC-80711A BI-MONTHLY REPORT
Exhibit D            DATA ITEM DESCRIPTION (DID) DD FORM 1664
Exhibit E            CDRL DD FORM 1423 DI - MISC - 80711A ANNUAL REPORT
Exhibit F            DATA ITEM DESCRIPTION (DID) DD FORM 1664
Exhibit G            CDRL DD FORM 1423 DI - MIS - 80711A - FINAL REPORT
Exhibit H            DATA ITEM DESCRIPTION (DID) DD FORM  1664
Exhibit I            CDRL DD FROM 1423 DI-MISC-8071lA - UFPA REPORT
Exhibit J            DATA ITEM DESCRIPTION (DID) DD FORM 1664
Exhibit K            CDRL DD FORM 1423 DI-MISC-8071lA - IR - CAMERA REPORT
Exhibit L            DATA ITEM DESCRIPTION (DID) DD FORM 1664
Attachment 001       STATEMENT OF WORK (SOW)
</TABLE>

<PAGE>

<TABLE>
<S>                                                                                              <C>
===================================================================================================================================
            CONTRACT DATA REQUIREMENTS LIST                                                      Original Form Approved
                     (1 Data Item)                                                               OMB No. 0704-0188
-----------------------------------------------------------------------------------------------------------------------------------
Public reporting burden for this collection of information is estimated to average 110 hours per response, including the time for
reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing
the collection of information. Send comments regarding this burden estimate or any other aspect of this collection of information,
including suggestions for reducing this burden, to Department of Defense, Washington Headquarters Services, Directorate for
Information Operations and Reports, 1215 Jefferson Davis Highway, Suite 1204, Arlington, VA 22202-4302, and to the Office of
Management and Budget. Paperwork Reduction Project (0704-0188), Washington, DC 20503. Please DO NOT RETURN your form to either of
these addresses. Send completed form to the Government Issuing Contracting Officer for Contract/PR No. listed in Block E.
-----------------------------------------------------------------------------------------------------------------------------------
A. CONTRACT LINE ITEM NO.                   B. EXHIBIT                  C. CATEGORY:
      0002AA                                      A                        TNP     TM      OTHER    MGMT
-----------------------------------------------------------------------------------------------------------------------------------
D. SYSTEM/ITEM                                 E. CONTRACT/PR NO.                             F. CONTRACTOR
     PHASE II SBIR                             TBD                                            Irvine Sensors Report
-----------------------------------------------------------------------------------------------------------------------------------
1. DATA ITEM NO.               2 TITLE OF DATA ITEM                                           3. SUBTITLE
     A001                      Progress, Status and Management Report                            Bi-Monthly Report
-----------------------------------------------------------------------------------------------------------------------------------
4. AUTHORITY (Data Acquisition Document No.)    5. CONTRACT REFERENCE                         6. REQUIRING OFFICE
     DI-MGMT -80227                                  SOW                                          AMSEL-RD-NV-ST-IR
-----------------------------------------------------------------------------------------------------------------------------------
7. DD 250 REQ          9. DIST STATEMENT         10. FREQUENCY        12. DATE OF FIRST       14.            DISTRIBUTION
                          REQUIRED                                    SUBMISSION             --------------------------------------
      LT                                            bi-monthly           45 DAC                                       b. COPIES
---------------------                            --------------------------------------------                    ------------------
8. APP CODE                                      11. AS OF DATE       13. DATE OF SUBSEQUENT
                           D                                             SUBMISSION           a. ADDRESSEE       Draft    Final
                                                                                                                        -----------
       N/A                                           N/A                    N/A                                         Reg   Repro
-----------------------------------------------------------------------------------------------------------------------------------
16. REMARKS:                                                                                   AMSEL-RD-NV-ST-IR   0      1      0
Documentation is to be prepared in contractor format.
Submit reports on odd-numbered months
First report due NLT 45 days after contract award.

Subsequent reports are due NLT 15 days after the month being
reported.

BLOCK 9: Distribution Statement D - Distribution authorized to the
Department of Defense and DoD contractors only. Reason: TO
protect technical operational data or information. Other requests
shall be referred to AMSEL-RD-NG-ST-IR.
                                                                                             --------------------------------------
                                                                                              15. TOTAL            0      1      0
-----------------------------------------------------------------------------------------------------------------------------------
G. PREPARED BY                  H. DATE                     I. APPROVED BY                                          J. DATE
/s/GWENDOLYN NEWSOME                                       /s/SHIRLEY J MATTHEWS                                    8/20/01
GWENDOLYN NEWSOME               20 Aug 2001                SHIRLEY J MATTHEWS
Project Ldr, ST-IR, NVESD                                  Acquisition Advisor, NVESD
===================================================================================================================================
</TABLE>

Based upon DD Form 1423-1, 1 Jun 90
                                               FRAB Validated:      N/A
                                                              ------------------

<PAGE>

                                    Exhibit B
--------------------------------------------------------------------------------
                   DATA ITEM DESCRIPTION                Form Approved
                                                        OMB No.0704-0188
                                                        Exp. Date : Jun 30, 1986
--------------------------------------------------------------------------------
1. Title                                     2. IDENTIFICATION NUMBER
     Contractor's Progress, Status and
     Management Report
                                                  DI-MGMT-80227
--------------------------------------------------------------------------------
3. DESCRIPTION/PURPOSE
     3.1 The Contractor's Progress, Status and Management Report Indicates the
         progress of work and the status of the program and of the assigned
         tasks, reports costs, and informs of existing or potential problem
         areas.

--------------------------------------------------------------------------------
4. APPROVAL DATE   5. OFFICE OF PRIMARY    6a. DTIC REQUIRED 6b. GIDEP REQUIRED
   (YYMMDD)           RESPONSIBILITY (OPR)
   860905,              N/SPAWAR
--------------------------------------------------------------------------------
7. APPLICATION/INTERRELATIONSHIP

     7.1 This Data Item Description (DID) contains the format and content
         preparation instructions for the data product generated by the specific
         and discrete task requirement for this data included in the contract.
     7.2 This DID may be applied in any contract and during any program phase.
     7.3 This DID supersedes DI-A-2090A, DI-A-3025A, UDI-A-22O5OB, UDI-A-22052A,
         UDI-A-23960, DI-A-30024, and DI-A-30606.    (cont. on page 2)

--------------------------------------------------------------------------------
8. APPROVAL LIMITATION           9a. APPLICABLE FORMS        9b. AMSC NUMBER

                                                                   N3947
--------------------------------------------------------------------------------
10. PREPARATION INSTRUCTIONS

  10.1 Contract - This data item is generated by the contract which contains a
       --------
       specific and discrete work task to develop this data product.
  10.2 Format - This report shall be typewritten on standard size (e.g. 8 1/2"
       ------
       by 11") white paper, and securely stapled. Pages shall be sequentially
       numbered. All attachments shall be identified and referenced in the text
       of the report. The report shall be prepared in the contractor's format
       and shall be legible and suitable for reproduction.
  10.3 Content - The report shall include:
       -------
       a.  A front cover sheet which includes the contractor's name and address,
           the contract number, the nomenclature of the system or program, the
           date of the report, the period covered by the report, the title of
           the report, either the serial number of the report or the Contract
           Data Requirements List (CDRL) sequence number, the security
           classification, and the name of the issuing Government activity;
       b.  Description of the progress made against milestones during the
           reporting period;
       c.  Results, positive or negative, obtained related to previously-
           identified problem areas, with conclusions and recommendations;
       d.  Any significant changes to the contractor's organization or method of
           operation, to the project management network, or to the milestone
           chart;
       e.  Problem areas affecting technical or scheduling elements, with
           background and any recommendations for solutions beyond the scope of
           the contract;
       f.  Problem areas effecting cost elements, with background and any
           recommendations for solutions beyond the scope of the Contract;
       g.  Cost curves showing actual and projected conditions throughout the
           contract;
       h.  Any cost incurred for the reporting period and total contractual
           expenditures as of reporting date;
       i.  Person-hours expended for the reporting period and cumulatively for
           the contract;
       j.  Any trips and significant results;      (cont. on page 2)
--------------------------------------------------------------------------------
DD Form 1664, FEB 85    Previous edition is **** PAGE    1    OF    2    PAGES
                                                      -------    -------

<PAGE>

                                  DI-MGMT- 80227

7.    APPLICATION/INTERRELATIONSHIP (Cont'd)

7.4   Paragraphs 10.3.f, 10.3.g, and 10.3.h herein should be tailored on DD Form
      1423 when such cost data is already submitted through a sophisticated cost
      reporting system under the contract.
--------------------------------------------------------------------------------
10.   PREPARATION INSTRUCTIONS (Cont'd)

      k.  Record of all significant telephone calls and any commitments made by
          telephone;
      1.  Summary of Engineering Change Proposal (ECP) status, including
          identification of proposed ECPs, approved ECPs, and implemented ECPs;
      m.  Contract schedule status;
      n.  Plans for activities during the following reporting period;
      o.  Name and telephone number of preparer of the report;
      p.  Appendixes for any necessary tables, references, photographs,
          illustrations, and charts.

Pages 2 of 2 Pages
--------------------------------------------------------------------------------

<PAGE>

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------------
       CONTRACT DATA REQUIREMENTS LIST                                                         Original Form Approved
              (1 Data Item)                                                                    OMB No. 0704-0188
-----------------------------------------------------------------------------------------------------------------------------------
<S>                                                       <C>                                                 <C>
Public reporting burden for this collection of information is estimated to average 110 hours per response, including the time for
reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing
the collection of information. Send comments regarding this burden estimate or any other aspect of this collection of information,
including suggestion for reducing this burden, to Department of Defense, Washington Headquarters Services, Directorate Information
Operations and Reports, 1215 Jefferson Davis Highway, Suite 1204, Arlington. VA. 22202-4302, and to the Office of the Management
and Budget, Paperwork Reduction Project (0704-0188), Washington, DC 20503. Please DO NOT RETURN your form to either of these
addresses. Send completed form to the Government Issuing Contracting Officer for Contract/PR No. listed in Block E.
-----------------------------------------------------------------------------------------------------------------------------------

A. CONTRACT LINE ITEM NO.               B. EXHIBIT             C. CATEGORY:

          0003AA                            c      C           TDP    TM   OTHER MISC
-----------------------------------------------------------------------------------------------------------------------------------
D. SYSTEM/ITEM                                    E. CONTRACT/PR NO.        F. CONTRACTOR

          PHASE II SBIR                           TBD                       Irvine Sensors Corp.
-----------------------------------------------------------------------------------------------------------------------------------
1. DATA ITEM NO.      2. TITLE OF DATA ITEM                                 3. SUBTITLE

    A002              Scientific and Technical Report                       Bi-Monthly Report
-----------------------------------------------------------------------------------------------------------------------------------
4. AUTHORITY (Data Acquisition Document No.)      5. CONTRACT REFERENCE         6. REQUIRING OFFICE

           DI-MISC-80711A                                           SOW                 AMSEL-RD-NV-ST-IR
-----------------------------------------------------------------------------------------------------------------------------------
7. DD 250 REQ    9. DIST STATEMENT    10. FREQUENCY    12. DATE OF FIRST         14.         DISTRIBUTION
                 REQUIRED                             SUBMISSION               ----------------------------------------------------

      DD                                                   SEE BLK 16                                         b. COPIES
----------------                    -------------------------------------------                     -------------------------------
8. APP CODE                          11. AS OF DATE   13. DATE OF SUBSEQUENT
                     D                                SUBMISSION                a. ADDRESSEE           Draft       Final

       A                                     N/A           SEE BLK 16                                          Reg     Reprort
-----------------------------------------------------------------------------------------------------------------------------------
16. REMARKS:                                                                    AMSEL-RD-NV-ST-IR       1       1        0
Documentation is to be prepared in contractor format.

  Submit reports on even numbered months.
Draft report due via letter of transmitta1 NLT 45 days prior to the
end of the technical effort. Government requires 2l days for review
and comment.

BLOCK 9: Distribution Statement D-Distribution authorized to the
Department of Defense and DoD contractors only. Reason: To
protect technical/operationa1 data or information. Other requests
shall be referred to AMSEL-RD-NV-ST-IR.

                                                                                15. TOTAL               1       1        0
-----------------------------------------------------------------------------------------------------------------------------------
G. PREPARED BY                      H. DATE        I. APPROVED BY                                      J. DATE
/s/ GWENDOLYN NEWSOME
GWENDOLYN NEWSOME                                  /s/ SHIRLEY J. MATTHEWS                              8/20/01
Project Ldr, ST-IR, NVESD           20Aug 01       SHIRLEY J. MATTHEWS
                                                   Acquisition Advisor, NVESD
-----------------------------------------------------------------------------------------------------------------------------------
Based upon DD Form 1423-1,1 Jun 90
                                        FRAB Validated:       N/A
                                                       ---------------
</TABLE>

<PAGE>

                                    Exhibit D

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------------
                              DATA ITEM DESCRIPTION                           Form Approved
                                                                            OMB No. 0704-0188
<S>                                                                     <C>
-----------------------------------------------------------------------------------------------------------------------------------
The Public reporting burden for this collection of information is estimated to average 110 hours per response, including the time
for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and
reviewing the collection of information. Send comments regarding this burden estimate or any other aspect of this collection of
information, including suggestion for reducing the burden, to Department of Defense, Washington Headquarters Services, Directorate
for Information Operations and Reports (0704-0188), 1215 Jefferson Davis Highway, Suite 1204, Arlington VA 22202-4302. Respondents
should be aware that notwithstanding any other provision of law, no person shall be subject to any penalty for failing to comply
with a collection of information if it does not display a currently valid OMB control number. PLEASE DO NOT RETURN YOUR FORM TO THE
ABOVE ADDRESS.
-----------------------------------------------------------------------------------------------------------------------------------
1. TITLE                                                                2. IDENTIFICATION NUMBER

Scientific and Technical Reports                                        DI-MISC-80711A
-----------------------------------------------------------------------------------------------------------------------------------
3. DESCRIPTION/PURPOSE
3.1 Scientific and Technical Reports document and disseminate the precise nature and results of analytical studies, research,
development, test and evaluation (RDT&E) on an assigned task(s) to the analytical, scientific, technical and management
community. Scientific and Technical Reports, may be definitive for the subject presented, exploratory in nature, or an evaluation
of critical subsystem or of technical problems.

-----------------------------------------------------------------------------------------------------------------------------------
4. APPROVAL DATE            5. OFFICE OF PRIMARY RESPONSIBILITY (OPR)   6a. DTIC APPLICABLE   6b. GIDEP APPLICABLE
   (YYYYMMDD)

        20000121                                 L/DD                               X
-----------------------------------------------------------------------------------------------------------------------------------
7. APPLICATION/lNTERRELATIONSHIP
7.1 This DID contains the format requirements and preparation instructions for the information product generated by the specific
and discrete task requirement as delineated in the contract.
7.2 This DID is applicable to the elements, organization and design of technical publications.
7.3 This DID supersedes UDI-S-23272C, DI-S-4057, DI-S-3591A, and DI-MISC-8O711.
7.4 Defense Technical Information Center (DTIC), 8725 John J. Kingman Rd., Ste. 0944, Ft. Belvoir, VA 22060-6218

-----------------------------------------------------------------------------------------------------------------------------------
8. APPROVAL LIMITATION                             9a. APPLICABLE FORMS                      9b. AMSC NUMBER

                                                   SF 298                                            L7382
-----------------------------------------------------------------------------------------------------------------------------------
10. PREPARATION INSTRUCTIONS
10.1 Reference document. The applicable issue of the documents cited herein, including their approval dates and dates of any
     ------------------
applicable amendments, notices, and revisions, shall be as specified in the contract.
10.2 Document format shall be in accordance with ANSI/NIS0 Z39.18 Scientific and Technical Reports - Elements, Organization, and
Design.
10.3 Document content shall be clearly written, describe accomplishments and other facts adequately with no technical errors, and
be acceptable for release. If marked unclassified, unlimited, they should be accompanied by a letter certifying that the documents
have been cleared for public release and sale, to include foreign nationals.

-----------------------------------------------------------------------------------------------------------------------------------
11. DISTRIBUTION STATEMENT.
Distribution Statement A: Approved for public release; distribution is unlimited.

-----------------------------------------------------------------------------------------------------------------------------------
DD FORM 1664, AUG 96 (EG)            PREVIOUS EDITION MAY BE USED.                  Page 1 of 1 Pages
</TABLE>

<PAGE>

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------------
                        CONTRACT DATA REQUIREMENTS LIST                                            Original Form Approved
                                  (1 Data Item)                                                    OMB No. 0704-0188
<S>                                                       <C>                                                 <C>
-----------------------------------------------------------------------------------------------------------------------------------
Public reporting burden for this collection of information is estimated to average 110 hours per response including the time for
reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing
the collection of information. Send comments regarding this burden estimate or any other aspect of this collection of information,
including suggestions for reducing this burden, to Department of Defense, Washington Headquarters Services, Directorate for
Information Operations and Reports, 1215 Jefferson Davis Highway, Suite 1204, Arlington, VA 22202-4302. and to the Office of
Management and Budget, Paperwork Reduction Project (0704-0188), Washington, DC 20503. Please DO NOT RETURN your form to either of
these addresses. Send completed form to the Government Issuing Contracting Officer for Contract/PR No. listed in Block E.
-----------------------------------------------------------------------------------------------------------------------------------
A. CONTRACT LINE ITEM NO.               B. EXHIBIT             C. CATEGORY:

          0004AA                            E                  TDP    TM   OTHER MISC
-----------------------------------------------------------------------------------------------------------------------------------
D. SYSTEM/ITEM                                    E. CONTRACT/PR NO.        F. CONTRACTOR

          PHASE II SBIR                           TBD                       Irvine Sensors Corp.
-----------------------------------------------------------------------------------------------------------------------------------
1. DATA ITEM NO.      2 TITLE OF DATA ITEM                                  3. SUBTITLE

    A003              Scientific and Technical Report                       Annual Report
-----------------------------------------------------------------------------------------------------------------------------------
4. AUTHORITY (Data Acquisition Document No.)      5. CONTRACT REFERENCE         6. REQUIRING OFFICE

           DI-MISC-80711A                                           SOW                 AMSEL-RD-NV-ST-IR
-----------------------------------------------------------------------------------------------------------------------------------
7. DD 250 REQ    9. DIST STATEMENT    10. FREQUENCY    12. DATE OF FIRST         14.        DISTRIBUTION
                 REQUIRED                             SUBMISSION              -----------------------------------------------------
      DD                                   ONE/P           SEE BLK 16                                       b. COPIES
--------------                     -------------------------------------------                        -----------------------------
8. APP CODE                          11. AS OF DATE   13. DATE OF SUBSEQUENT
                     D                                SUBMISSION                a. ADDRESSEE           Draft         Final
                                                                                                             ----------------------
       A                                     N/A           SEE BLK 16                                          Reg     Repro
-----------------------------------------------------------------------------------------------------------------------------------
16. REMARKS:                                                                    AMSEL-RD-NV-ST-IR        1       1        0
Documentation is to be prepared in contractor format.

Draft report due via letter of transmitta1 NLT 45 days prior to the
end of the technical effort. Government requires 2l days for review
and comment.

BLOCK 9: Distribution Statement D-Distribution authorized to the
Department of Defense and DoD contractors only. Reason: To
protect technical/operationa1 data or information. Other requests
shall be referred to AMSEL-RD-NV-ST-IR.

                                                                              -----------------------------------------------------
                                                                                15. TOTAL                1       1        0
-----------------------------------------------------------------------------------------------------------------------------------
G. PREPARED BY                      H. DATE        I. APPROVED BY                                      J. DATE
/s/ GWENDOLYN NEWSOME
GWENDOLYN NEWSOME                                  /s/ SHIRLEY J. MATTHEWS
Project Ldr, ST-IR, NVESD           20Aug 01       SHIRLEY J. MATTHEWS                                  8/20/01
                                                   Acquisition Advisor, NVESD
-----------------------------------------------------------------------------------------------------------------------------------
Based upon DD Form 1423-1,1 Jun 90
                                        FRAB Validated:       N/A
                                                       ---------------
</TABLE>

<PAGE>

                                    Exhibit F

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------------
                              DATA ITEM DESCRIPTION                                                       Form Approved
                                                                                                        OMB No. 0704-0188
<S>                                                                     <C>
-----------------------------------------------------------------------------------------------------------------------------------
The Public reporting burden for this collection of information is estimated to average 110 hours per response, including the time
for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and
reviewing the collection of information. Send comments regarding this burden estimate or any other aspect of this collection of
information, including suggestions for reducing the burden, to Department of Defense, Washington Headquarters Services, Directorate
for Information Operations and Reports, (0704-0188), 1215 Jefferson Davis Highway, Suite 1204, Arlington VA 22202-4302. Respondents
should be aware that notwithstanding any other provision of law, no person shall be subject to any penalty for failing to comply
with a collection of information if it does not display a currently valid OMB control number. PLEASE DO NOT RETURN YOUR FORM TO THE
ABOVE ADDRESS.
-----------------------------------------------------------------------------------------------------------------------------------
1. TITLE                                                                2. IDENTIFICATION NUMBER

Scientific and Technical Reports                                        DI-MISC-80711A
-----------------------------------------------------------------------------------------------------------------------------------
3. DESCRIPTION/PURPOSE
3.1 Scientific and Technical Reports document and disseminate the precise nature and results of analytical studies, research,
development, test and evaluation (RDT&E) on an assigned task(s) to the analytical, scientific, technical and management
community. Scientific and Technical Reports, may be definitive for the subject presented, exploratory in nature, or an evaluation
of critical subsystem or of technical problems.

-----------------------------------------------------------------------------------------------------------------------------------
4. APPROVAL DATE            5. OFFICE OF PRIMARY RESPONSIBILITY (OPR)   6a. DTIC APPLICABLE   6b. GIDEP APPLICABLE
   (YYYYMMDD)

        20000121                                 L/DD                               X
-----------------------------------------------------------------------------------------------------------------------------------
7. APPLICATION/INTERRELATIONSHIP
7.1 This DID contains the format requirements and preparation instructions for the information product generated by the specific
and discrete task requirement as delineated in the contract.
7.2 This DID is applicable to the elements, organization and design of technical publications.
7.3 This DID supersedes UDI-S-23272C, DI-S-4057, DI-S-3591A, and DI-MISC-8O711.
7.4 Defense Technical Information Center (DTIC), 8725 John J. Kingman Rd., Ste. 0944, Ft. Belvoir, VA 22060-6218

-----------------------------------------------------------------------------------------------------------------------------------
8. APPROVAL LIMITATION                             9a. APPLICABLE FORMS                      9b. AMSC NUMBER

                                                   SF 298                                            L7382
-----------------------------------------------------------------------------------------------------------------------------------
10. PREPARATION INSTRUCTIONS
10.1 Reference document. The applicable issue of the documents cited herein, including their approval dates and dates of any
     ------------------
applicable amendments, notices, and revisions, shall be as specified in the contract.
10.2 Document format shall be in accordance with ANSI/NIS0 Z39.18 Scientific and Technical Reports - Elements, Organization, and
Design.
10.3 Document content shall be clearly written, describe accomplishments and other facts adequately with no technical errors, and
be acceptable for release. If marked unclassified, unlimited, they should be accompanied by a letter certifying that the documents
have been cleared for public release and sale, to include foreign nationals.

-----------------------------------------------------------------------------------------------------------------------------------
11. DISTRIBUTION STATEMENT.
Distribution Statement A : Approved for public release; distribution is unlimited.

-----------------------------------------------------------------------------------------------------------------------------------
DD FORM 1664, AUG 96 (EG)            PREVIOUS EDITION MAY BE USED.                  Page 1 of 1 Pages
</TABLE>

<PAGE>

<TABLE>
<S>                                                                                              <C>
-----------------------------------------------------------------------------------------------------------------------------------
            CONTRACT DATA REQUIREMENTS LIST                                                      Original Form Approved
                     (1 Data Item)                                                               OMB No. 0704-0188
-----------------------------------------------------------------------------------------------------------------------------------
Public reporting burden for this collection of information is estimated to average 110 hours per responses, Including the time for
reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing
the collection of information. Send comments regarding this burden estimate or any other aspect of this collection of information,
including suggestions for reducing this burden, to Department of Defense, Washington Headquarters Services, Directorate for
Information Operations and Reports, 1215 Jefferson Davis Highway, Suite 1204, Arlington, VA. 22202-1302, and to the Office of
Management and Budget, Paperwork Reduction Project (0704-0188), Washington, DC 20503. Please DO NOT RETURN your form to either of
these addresses. Send completed form to the Government Issuing Contracting Officer for Contract/PR No. listed in Block E.
-----------------------------------------------------------------------------------------------------------------------------------
A. CONTRACT LINE ITEM NO.                   B. EXHIBIT                  C. CATEGORY:
      0005AA                                    G                          TDP     TM        OTHER    MISC
-----------------------------------------------------------------------------------------------------------------------------------
D. SYSTEM/ITEM                                 E. CONTRACT/PR NO.                             F. CONTRACTOR
     PHASE II SBIR                             TBD                                            Irvine Sensors Corp.
-----------------------------------------------------------------------------------------------------------------------------------
1. DATA ITEM NO.               2 TITLE OF DATA ITEM                                           3. SUBTITLE
     A004                      Scientific and Technical Report                                Final Report
-----------------------------------------------------------------------------------------------------------------------------------
4. AUTHORITY (Data Acquisition Document No.)    5. CONTRACT REFERENCE                         6. REQUIRING OFFICE
   DI-MISC-80711A                                             SOW                                    AMSEL-RD-NV-ST-IR
-----------------------------------------------------------------------------------------------------------------------------------
7. DD 250 REQ          9. DIST STATEMENT         10. FREQUENCY        12. DATE OF FIRST       14. DISTRIBUTION
                       REQUIRED                                       SUBMISSION              -------------------------------------
     DD                                                ONE/P                  SEE BLK 16
---------------------                            ---------------------------------------------                       b. COPIES
8. APP CODE                D                     11. AS OF DATE       13. DATE OF SUBSEQUENT                     ------------------
                                                                      SUBMISSION              a. ADDRESSEE       Draft      Final
                                                        N/A                SEE BLK 16                                    ----------
       A                                                                                                                 Reg  Repro
-----------------------------------------------------------------------------------------------------------------------------------
16. REMARKS:                                                                                   AMSEL-RD-NV-ST-IR   1      1      0
Documentation is to be prepared in contractor format.

Draft report due via letter of transmittal NLT 45 days prior to the                            DTIC-RSR            0      1      0
end of the technical effort. Government requires 21 days for review                            8725 JOHN KINGMAN
and comment.                                                                                   RD, SUITE 0944
                                                                                               FORT BELVOIR, VA
                                                                                               22060-6218
A copy of the final government-approved technical report shall be
sent to DTIC-RSR:
Cjacobso@dtic.mil
-----------------

BLOCK 9: Distribution Statement D - Distribution authorized to the
Department of Defense and DoD contractors only. Reason: To
protect technical/operational data or information. Other requests
shall be referred to AMSEL-RD-NV-STIR.
                                                                                               ------------------------------------
                                                                                               15. TOTAL           1      2      0
-----------------------------------------------------------------------------------------------------------------------------------
G. PREPARED BY                                   H. DATE                     I, APPROVED BY                      J. DATE
/s/ GWENDOLYN NEWSOME
GWENDOLYN NEWSOME                                20 Aug 2001                 /s/ SHIRLEY J. MATTHEWS             8/20/01
Project Ldr, ST-IR, NVESD                                                    SHIRLEY J. MATTHEWS
                                                                             Acquisition Advisor, NVESD
-----------------------------------------------------------------------------------------------------------------------------------
Based upon DD Form 1423-1, 1 Jun 90
                                                   FRAB Validated:       N/A
                                                                   ---------------
</TABLE>

<PAGE>

<TABLE>
                                                           Exhibit H
-----------------------------------------------------------------------------------------------------------------------------------
<S>                                                                                                      <C>
               DATA ITEM DESCRIPTION                                                                       Form Approved
                                                                                                         OMB No. 0704-0188
-----------------------------------------------------------------------------------------------------------------------------------
The public reporting burden for this collection of information is estimated to average 110 hours per response, including the time
for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and
reviewing the collection of information. Send comments regarding this burden estimate or any other aspect of this collection of
information, including suggestions for reducing the burden to Department of Defense, Washington Headquarters Services, Directorate
for Information Operations and Reports (0704-0188), 1215 Jefferson Davis Highway, Suite 1204, Arlington, VA 22202-4302. Respondents
should be aware that notwithstanding any other provision of law, no person shall be subject to any penalty for failing to comply
with a collection of information if it does not display a currently valid OMB control number. PLEASE DO NOT RETURN YOUR FORM TO THE
ABOVE ADDRESS.
-----------------------------------------------------------------------------------------------------------------------------------
1. TITLE                                                                                 2. IDENTIFICATION NUMBER

Scientific and Technical Reports                                                          DI-MISC-80711A
-----------------------------------------------------------------------------------------------------------------------------------
3. DESCRIPTION/PURPOSE
3.1 Scientific and Technical Reports document and disseminate and precise nature and results of analytical studies, research,
development, test and evaluation (RDT&E) on an assigned task(s) to the analytical, scientific, technical and management community.
Scientific and Technical Reports, may be definitive for the subject presented, exploratory in nature, or an evaluation of critical
subsystem or of technical problems.

-----------------------------------------------------------------------------------------------------------------------------------
4. APPROVAL DATE             5. OFFICE OF PRIMARY RESPONSIBILITY (OPR)            6a. DTIC APPLICABLE      6b. GIDEP APPLICABLE
   (YYYYMMDD)

       20000121                              L/DD                                          X
-----------------------------------------------------------------------------------------------------------------------------------
7. APPLICATION/INTERRELATIONSHIP
7.1 This DID contains the format requirements and preparation instructions for the information product generated by the specific and
discrete task requirement as delineated in the contract.
7.2 This DID is applicable to the elements, organization and design of technical publications.
7.3 This DID supersedes UDI-S-23272C, DI-S-4057, DI-S-3591A, and DI-MISC-80711.
7.4 Defense Technical Information Center (DTIC), 8725 John J. Kingman Rd., Ste. 0944, Ft. Belvoir, VA 22060-6218

-----------------------------------------------------------------------------------------------------------------------------------
8. APPROVAL LIMITATION                                       9a. APPLICABLE FORMS                       9b. AMSC NUMBER
-----------------------------------------------------------------------------------------------------------------------------------
                                                             SF 298                                              L7382
-----------------------------------------------------------------------------------------------------------------------------------
10. PREPARATION INSTRUCTIONS
10.1 Reference document. The applicable issue of the documents cited herein, including their approval dates and dates of any
     ------------------
applicable amendments, notices, and revisions, shall be as specified in the contract.
10.2 Document format shall be in accordance with ANSI/NISO Z39.18 Scientific and Technical Reports -- Elements, Organization, and
Design.
10.3 Document content shall be clearly written, describe accomplishments and other facts adequately with no technical errors, and be
acceptable for release. If marked unclassified, unlimited, they should be accompanied by a letter certifying that the documents have
been cleared for public release and sale, to include foreign nationals.

-----------------------------------------------------------------------------------------------------------------------------------
11. DISTRIBUTION STATEMENT
Distribution Statement A: Approved for public release; distribution is unlimited.

-----------------------------------------------------------------------------------------------------------------------------------
DD FORM 1664, AUG 96 (EG)                             PREVIOUS EDITION MAY BE USED.                           Page 1 of 1 Pages
</TABLE>

<PAGE>

<TABLE>
-----------------------------------------------------------------------------------------------------------------------------------
<S>                                                                                                      <C>
                CONTRACT DATA REQUIREMENTS LIST                                                          Original Form Approved
                       (1 Data Item)                                                                     OM8 No. 0704-0188
-----------------------------------------------------------------------------------------------------------------------------------
Public reporting burden for this collection of information is estimated to average 110 hours per response, including the time for
reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the
collection of information. Send comments regarding this burden estimate or any other aspect of this collection of information,
including suggestions for reducing this burden, to Department of Defense, Washington Headquarters Services, Directorate for
Information Operations and Reports, 1215 Jefferson Davis Highway, Suite 1204, Arlington, VA. 22202-4302, and to the Office of
Management and Budget, Paperwork Reduction Project (0704-0188), Washington, DC 20503. Please DO NOT RETURN your form to either of
these addresses. Send completed form to the Government Issuing Contracting Officer for Contract/PR No. listed in Block E.
------------------------------------------------------------------------------------------------------------------------------------
A. CONTRACT LINE ITEM NO.                    B. EXHIBIT                            C. CATEGORY:

    0006AA                                        I                                 TDP     TM       OTHER        MISC
------------------------------------------------------------------------------------------------------------------------------------
D. SYSTEM/ITEM                                   E. CONTRACT/PR NO.                               F. CONTRACTOR

        PHASE II SBIR                            TBD                                              Irvine Sensors Corp.
------------------------------------------------------------------------------------------------------------------------------------
1. DATA ITEM NO.             2. TITLE OF DATA ITEM                                                3. SUBTITLE

     A005                    Scientific and Technical Report                                      UFPA Report
------------------------------------------------------------------------------------------------------------------------------------
4. AUTHORITY (Data Acquisition Document No.)     5. CONTRACT REFERENCE                               6. REQUIRING OFFICE

       DI-MISC-80711A                                      SOW                                            AMSEL-RD-NV-ST-IR
------------------------------------------------------------------------------------------------------------------------------------
7. DO 250 REQ            9. DIST STATEMENT REQUIRED       10. FREQUENCY    12. DATE OF FIRST        14.      DISTRIBUTION
                                                                           SUBMISSION              ---------------------------------
      DD                                                        ONE/P         SEE BLK 16                              b. COPIES
------------------------                                ----------------------------------------------------------------------------
8. APP CODE                          D                    11. AS OF DATE   13. DATE OF SUBSEQUENT
                                                                           SUBMISSION              a. ADDRESSEE   Draft     Final
                                                                                                                         ---------
      A                                                          N/A          SEE BLK 16                                 Reg   Repro
------------------------------------------------------------------------------------------------------------------------------------
                                                                                                   AMSEL-RD-NV-ST-IR  1   1      0

16. REMARKS:
Documentation is to be prepared in contractor format.

Draft report due via letter of transmittal NLT 45 days prior to the end of the technical
effort. Government requires 21 days for review and comment.

BLOCK 9: Distribution Statement D - Distribution authorized to the Department of Defense
and DoD contractors only. Reason: To protect technical/operational data or information.
Other requests shall be referred to AMSEL-RD-NV-ST-IR.

                                                                                                  ----------------------------------
                                                                                                   15. TOTAL        1     1      0
------------------------------------------------------------------------------------------------------------------------------------
G. PREPARED BY                         H. DATE                    I. APPROVED BY                                 J. DATE
/s/ GWENDOLYN NEWSOME                                             /s/ SHIRLEY J. MATTHEWS
GWENDOLYN NEWSOME                                                 SHIRLEY J. MATTHEWS
Project Ldr, ST-IR, NVESD              20 Aug 01                  Acquisition Advisor, NVESD                     8/20/01
------------------------------------------------------------------------------------------------------------------------------------
Based upon DD Form 1423-1, 1 Jun 90
                                         FRAB Validated:         N/A
                                                         ------------------
</TABLE>

<PAGE>

<TABLE>
                                                            Exhibit J
------------------------------------------------------------------------------------------------------------------------------------
<S>                                                                                                       <C>
                           DATA ITEM DESCRIPTION                                                            Form Approved
                                                                                                          OMB No. 0704-0188
------------------------------------------------------------------------------------------------------------------------------------
The public reporting burden for this collection of information is estimated to average 110 hours per response, including the time
for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and
reviewing the collection of information. Send comments regarding this burden estimates or any other aspect of this collection of
information, including suggestions for reducing the burden, to Department of Defense, Washington Headquarters Services, Directorate
for Information Operations and Reports (0704-0188), 1215 Jefferson Davis Highway, Suite 1204, Arlington, VA 22202-4302. Respondents
should be aware that notwithstanding any other provision of law, no person shall be subject to any penalty for falling to comply
with a collection of information if it does not display a currently valid OMB control number. PLEASE DO NOT RETURN YOUR FORM TO THE
ABOVE ADDRESS.
------------------------------------------------------------------------------------------------------------------------------------
1. TITLE                                                                                      2. IDENTIFICATION NUMBER

Scientific and Technical Reports                                                              DI-MISC-80711A
------------------------------------------------------------------------------------------------------------------------------------
3. DESCRIPTION/PURPOSE
3.1 Scientific and Technical Reports document and disseminate the precise nature and results of analytical studies, research,
development, test and evaluation (RDT&E) on an assigned task(s) to the analytical, scientific, technical and management community.
Scientific and Technical Reports, may be definitive for the subject presented, exploratory in nature, or an evaluation of critical
subsystem or of technical problems.

------------------------------------------------------------------------------------------------------------------------------------
4. APPROVAL DATE              5. OFFICE OF PRIMARY RESPONSIBILITY (OPR)           6a. DTIC APPLICABLE    6b. GIDEP APPLICABLE
    (YYYYMMDD)

         20000121                          L/DD                                            X
------------------------------------------------------------------------------------------------------------------------------------
7. APPLICATION/INTERRELATIONSHIP
7.1 This DID contains the format requirements and preparation instructions for the information product generated by the specific and
discrete task requirement as delineated in the contract.
7.2 This DID is applicable to the elements, organization and design of technical publications.
7.3 This DID supersedes UDI-S-23272C, DI-S-4057, DI-S-3591A, and DI-MISC-80711.
7.4 Defense Technical Information Center (DTIC), 8725 John J. Kingman Rd., Ste. 0944, Ft. Belvoir, VA 22060-6218

------------------------------------------------------------------------------------------------------------------------------------
8. APPROVAL LIMITATION                        9a. APPLICABLE FORMS                               9b. AMSC NUMBER
                                              SF 298                                                    L7382
------------------------------------------------------------------------------------------------------------------------------------
10. PREPARATION INSTRUCTIONS
10.1 Reference document. The applicable issue of the documents cited herein, including their approval dates and dates of any
     ------------------
applicable amendments, notices, and revisions, shall be as specified in the contract.
10.2 Document format shall be in accordance with ANSI/NISO Z39. 18 Scientific and Technical Reports -- Elements, Organization, and
Design.
10.3 Document content shall be clearly written, describe accomplishments and other facts adequately with no technical errors, and be
acceptable for release. If marked unclassified, unlimited, they should be accompanied by a letter certifying that the documents have
been cleared for public release and sale, to include foreign nationals.

------------------------------------------------------------------------------------------------------------------------------------
11. DISTRIBUTION STATEMENT
Distribution Statement A: Approved for public release; distribution is unlimited.

------------------------------------------------------------------------------------------------------------------------------------
DD FORM 1664, AUG 96 (EG)                               PREVIOUS EDITION MAY BE USED.                        Page 1 of 1 Pages
</TABLE>

<PAGE>

<TABLE>
-----------------------------------------------------------------------------------------------------------------------------------
<S>                                                                                                      <C>
                CONTRACT DATA REQUIREMENTS LIST                                                          Original Form Approved
                       (1 Data Item)                                                                     OMB No. 0704-0188
-----------------------------------------------------------------------------------------------------------------------------------
Public reporting burden for this collection of information is estimated to average 110 hours per response, including the time for
reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the
collection of information. Send comments regarding this burden estimate or any other aspect of this collection of information,
including suggestions for reducing this burden, to Department of Defense, Washington Headquarters Services, Directorate for
Information Operations and Reports, 1215 Jefferson Davis Highway, Suite 1204, Arlington, VA, 22202-4302, and to the Office of
Management and Budget, Paperwork Reduction Project (0704-0186), Washington, DC 20503, Please DO NOT RETURN your form to either of
these addresses. Send completed form to the Government Issuing Contracting Officer for Contract/PR No. listed in Block E.
------------------------------------------------------------------------------------------------------------------------------------
A. CONTRACT LINE ITEM NO.                    B. EXHIBIT                            C. CATEGORY:

      0006AB                                      K                                 TDP     TM       OTHER        MISC
------------------------------------------------------------------------------------------------------------------------------------
D. SYSTEM/ITEM                                   E. CONTRACT/PR NO.                               F. CONTRACTOR
        PHASE II SBIR                            TBD                                              Irvine Sensors Corp.
------------------------------------------------------------------------------------------------------------------------------------
1. DATA ITEM NO.             2. TITLE OF DATA ITEM                                                3. SUBTITLE
     A006                    Scientific and Technical Report                                      IR Camera Test Report
------------------------------------------------------------------------------------------------------------------------------------
4. AUTHORITY (Data Acquisition Document No.)     5. CONTRACT REFERENCE                               6. REQUIRING OFFICE
       DI-MISC-80711A                                      SOW                                             AMSEL-RD-NV-ST-IR
------------------------------------------------------------------------------------------------------------------------------------
7. DO 250 REQ            9. DIST STATEMENT REQUIRED       10. FREQUENCY    12. DATE OF FIRST        14.       DISTRIBUTION
                                                                           SUBMISSION             ----------------------------------
      DD                                                        ONE/P         SEE BLK 16                               b. COPIES
------------------------                                -----------------------------------------                 ------------------
8. APP CODE                          D                    11. AS OF DATE   13. DATE OF SUBSEQUENT
                                                                           SUBMISSION               a. ADDRESSEE   Draft     Final
                                                                                                                         -----------
      A                                                          N/A            SEE BLK 16                               Reg   Repro
------------------------------------------------------------------------------------------------------------------------------------
                                                                                                    AMSEL-RD-NV-ST-IR  1    1      0
16. REMARKS:
Documentation is to be prepared in contractor format.

Draft report due via letter of transmittal NLT 45 days prior to the end of the technical
effort. Government requires 21 days for review and comment.

The contractor shall furnish an IR Camera User manual
-------------------------.

BLOCK 9: Distribution Statement D - Distribution authorized to the Department of Defense
and DoD contractors only. Reason: To protect technical/operational data or information.
Other requests shall be referred to AMSEL-RD-NV-ST-IR.

                                                                                                 -----------------------------------
                                                                                                   15. TOTAL           1    2      0
------------------------------------------------------------------------------------------------------------------------------------
G. PREPARED BY                         H. DATE                    I. APPROVED BY                                 J. DATE
/s/ GWENDOLYN NEWSOME                                             /s/ SHIRLEY J. MATTHEWS
GWENDOLYN NEWSOME                                                 SHIRLEY J. MATTHEWS
Project Ldr, ST-IR, NVESD              20 Aug 01                  Acquisition Advisor, NVESD                     8/20/01
------------------------------------------------------------------------------------------------------------------------------------
Based upon DD Form 1423-1, 1 Jun 90
                                         FRAB Validated:         N/A
                                                         ------------------
</TABLE>

<PAGE>

<TABLE>
                                                            Exhibit L
------------------------------------------------------------------------------------------------------------------------------------
<S>                                                                                                       <C>
                           DATA ITEM DESCRIPTION                                                            Form Approved
                                                                                                          OMB No. 0704-0188
------------------------------------------------------------------------------------------------------------------------------------
The public reporting burden for this collection of information is estimated to average 110 hours per response, including the time
for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and
reviewing the collection of information. Send comments regarding this burden estimates or any other aspect of this collection of
information, including suggestions for reducing the burden, to Department of Defense, Washington Headquarters Services, Directorate
for Information Operations and Reports (0704-0188), 1215 Jefferson Davis Highway, Suite 1204, Arlington, VA 22202-4302. Respondents
should be aware that notwithstanding any other provision of law, no person shall be subject to any penalty for falling to comply
with a collection of information if it does not display a currently valid OMB control number. PLEASE DO NOT RETURN YOUR FORM TO THE
ABOVE ADDRESS.
------------------------------------------------------------------------------------------------------------------------------------
1. TITLE                                                                                      2. IDENTIFICATION NUMBER

Scientific and Technical Reports                                                              DI-MISC-80711A
------------------------------------------------------------------------------------------------------------------------------------
3. DESCRIPTION/PURPOSE
3.1 Scientific and Technical Reports document and disseminate the precise nature and results of analytical studies, research,
development, test and evaluation (RDT&E) on an assigned task(s) to the analytical, scientific, technical and management community.
Scientific and Technical Reports, may be definitive for the subject presented, exploratory in nature, or an evaluation of critical
subsystem or of technical problems.

------------------------------------------------------------------------------------------------------------------------------------
4. APPROVAL DATE              5. OFFICE OF PRIMARY RESPONSIBILITY (OPR)           6a. DTIC APPLICABLE      6b. GIDEP APPLICABLE
    (YYYYMMDD)

        20000121                                 L/DD                                       X
------------------------------------------------------------------------------------------------------------------------------------
7. APPLICATION/INTERRELATIONSHIP
7.1 This DID contains the format requirements and preparation instructions for the information product generated by the specific and
discrete task requirement as delineated in the contract.
7.2 This DID is applicable to the elements, organization and design of technical publications.
7.3 This DID supersedes UDI-S-23272C, DI-S-4057, DI-S-3591A, and DI-MISC-80711.
7.4 Defense Technical Information Center (DTIC), 8725 John J. Kingman Rd., Ste. 0944, Ft. Belvoir, VA 22060-6218

------------------------------------------------------------------------------------------------------------------------------------
8. APPROVAL LIMITATION                        9a. APPLICABLE FORMS                                 9b. AMSC NUMBER

                                              SF 298                                                      L7382
------------------------------------------------------------------------------------------------------------------------------------
10. PREPARATION INSTRUCTIONS
10.1 Reference document. The applicable issue of the documents cited herein, including their approval dates and dates of any
     ------------------
applicable amendments, notices, and revisions, shall be as specified in the contract.
10.2 Document format shall be in accordance with ANSI/NISO Z39. 18 Scientific and Technical Reports -- Elements, Organization, and
Design.
10.3 Document content shall be clearly written, describe accomplishments and other facts adequately with no technical errors, and be
acceptable for release. If marked unclassified, unlimited, they should be accompanied by a letter certifying that the documents have
been cleared for public release and sale, to include foreign nationals.

------------------------------------------------------------------------------------------------------------------------------------
11. DISTRIBUTION STATEMENT
Distribution Statement A: Approved for public release; distribution is unlimited.

------------------------------------------------------------------------------------------------------------------------------------
DD FORM 1664, AUG 96 (EG)                               PREVIOUS EDITION MAY BE USED.                        Page 1 of 1 Pages
</TABLE>

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