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EXHIBIT 10.7

                               SSP SOLUTIONS, INC.
                   AMENDED AND RESTATED 1999 STOCK OPTION PLAN
                        INCENTIVE STOCK OPTION AGREEMENT

         This Option Agreement (this "Agreement") is made and entered into by
and between SSP Solutions, a Delaware corporation ("Company"), and ___________
("Optionee"), as of ____________ ("Date of Grant"). If the Optionee is presently
or subsequently becomes employed by a subsidiary of the Company, the term
"Company" shall be deemed to refer collectively to SSP Solutions, Inc. and the
subsidiary or subsidiaries that employs the Optionee.

                                    RECITALS

         A. The Board of Directors and the stockholders of the Company have
adopted the SSP Solutions, Inc. Amended and Restated 1999 Stock Option Plan
("Plan") as an incentive to retain key employees, officers, directors, and
consultants of the Company and to enhance the ability of the Company to attract
new employees, officers, directors, and consultants whose services are
considered unusually valuable by providing an opportunity to have a proprietary
interest in the success of the Company.

         B. The entire Board of Directors or the committee established to
administer the Plan ("Committee"), has approved the granting of options to the
Optionee pursuant to the Plan to provide an incentive to the Optionee to focus
on the long-term growth of the Company.

         In consideration of the mutual covenants and conditions hereinafter set
forth and for other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the Company and the Optionee agree as follows:

         1. GRANT OF OPTION. The Company hereby grants to the Optionee the right
and option ("Option") to purchase up to an aggregate of __________ shares (such
number being subject to adjustment as provided in paragraph 10 below and Section
13 of the Plan) of Common Stock of SSP Solutions, Inc. ("Stock") on the terms
and conditions herein set forth. This Option may be exercised in whole or in
part and from time to time as hereinafter provided. The Option granted under
this Agreement IS intended to be an "incentive stock option" as set forth in
Section 422 of the Internal Revenue Code of 1986, as amended ("Code").

         2. VESTING OF OPTION. Subject to paragraph 8 below, the Option shall
vest and become exercisable in accordance with the schedule below:

                  On the Date of Grant, 1/5 of the shares of Stock shall vest
                  and become exercisable. The remaining 4/5 of the shares of
                  Stock shall vest and become exercisable at the monthly rate of
                  1/48 of the total shares of Stock subject to the Option,
                  commencing ______________.

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         3. PURCHASE PRICE. The price at which the Optionee shall be entitled to
purchase the Stock covered by the Option shall be $1.30 per share, which price
is not less than 100% of the Fair Market Value (as defined in the Plan) of the
Stock on the Date of Grant.

         4. TERM OF OPTION. The Option granted under this Agreement shall
expire, unless otherwise exercised, at the normal close of business of the
Company on __________ ("Expiration Date"), subject to earlier termination as
provided in paragraph 8 below.

         5. EXERCISE OF OPTION. The Option may be exercised by the Optionee as
to all or any part of the Stock then vested by delivery to the Company of
written notice of exercise and payment of the purchase price as provided in
paragraphs 6 and 7 below.

         6. METHOD OF EXERCISING OPTION. Subject to the terms and conditions of
this Agreement, the Option may be exercised by timely delivery to the Company of
written notice, which notice shall be effective on the date received by the
Company ("Effective Date"). The notice shall state the Optionee's election to
exercise the Option, the number of shares in respect of which an election to
exercise has been made, the method of payment elected (see paragraph 7 below),
the exact name or names in which the shares will be registered and the taxpayer
identification number of the Optionee. The notice shall be signed by the
Optionee and shall be accompanied by payment of the purchase price of such
shares. If the Option is exercised by a person or persons other than Optionee
pursuant to paragraph 8 below, the notice shall be signed by the other person or
persons and shall be accompanied by proof acceptable to the Company of the legal
right of the person or persons to exercise the Option. All shares delivered by
the Company upon exercise of the Option shall be fully paid and nonassessable
upon delivery.

         7. METHOD OF PAYMENT FOR OPTIONS. Payment for shares purchased upon the
exercise of the Option shall be made by the Optionee in cash or such other
method permitted by the Committee and communicated to the Optionee in writing
prior to the date the Optionee exercises all or any portion of the Option.

         8. TERMINATION OF EMPLOYMENT.

                  8.1. GENERAL. If the Optionee's employment with the Company
terminates for any other reason than for cause (as that term is defined in the
Plan, referred to herein as "Cause") or voluntary resignation in violation of
any agreement to remain in the employ of the Company, then the Optionee may at
any time within three months after the effective date of termination of
employment exercise the Option to the extent that the Optionee was entitled to
exercise the Option at the date of termination of employment, provided that in
no event shall the Option be exercisable after the Expiration Date. If the
Optionee's employment with the Company terminates for Cause or voluntary
resignation in violation of any agreement to remain in the employ of the
Company, the Option shall terminate immediately upon termination of employment,
and the Option shall be deemed to have been forfeited by the Optionee.

                  8.2. DEATH OR DISABILITY OF OPTIONEE. In the event of the
death or the disability (as that term is defined in the Plan, referred to herein
as "Disability") of the Optionee within a period during which the Option, or any
part thereof, could have been exercised by the Optionee ("Option Period"), the
Option shall lapse unless it is exercised within the Option Period, and in no

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event later than 12 months after the date of the Optionee's death or Disability,
by the Optionee or the Optionee's legal representative or representatives in the
case of a Disability or, in the case of death, by the person or persons entitled
to do so under the Optionee's last will and testament or if the Optionee fails
to make a testamentary disposition of the Option or shall die intestate, by the
person or persons entitled to receive the Option under the applicable laws of
descent and distribution. An Option may be exercised following the death or
Disability of the Optionee only if the Option was exercisable by the Optionee
immediately prior to his death or Disability. In no event shall the Option be
exercisable after the Expiration Date. The Committee shall have the right to
require evidence satisfactory to it of the rights of any person or persons
seeking to exercise the Option under this paragraph 8 to exercise the Option.

         9. NONTRANSFERABILITY. The Option granted by this Agreement shall be
exercisable only during the term of the Option provided in paragraph 4 above
and, except as provided in paragraph 8 above, only by the Optionee during his
lifetime and while an Optionee of the Company. This Option shall not be
transferable by the Optionee or any other person claiming through the Optionee,
either voluntarily or involuntarily, except by will or the laws of descent and
distribution or such other events as are set forth in the Plan.

         10. ADJUSTMENTS IN NUMBER OF SHARES AND OPTION PRICE. In the event of a
stock dividend or if the Stock is changed into or exchanged for a different
number or class of shares of stock of the Company or of another corporation,
whether through reorganization, recapitalization, stock split-up, combination of
shares, merger or consolidation, there shall be substituted for each remaining
share of Stock then subject to this Option the number and class of shares of
stock into which each outstanding share of Stock is to be so exchanged, all
without any change in the aggregate purchase price for the shares then subject
to the Option, all as set forth in Section 13 of the Plan.

         11. DELIVERY OF SHARES. No shares of Stock shall be delivered upon
exercise of the Option until (i) the purchase price has been paid in full in the
manner herein provided; (ii) applicable taxes required to be withheld have been
paid or withheld in full; (iii) approval of any governmental authority required
in connection with the Option, or the issuance of shares thereunder, has been
received by the Company; and (iv) if required by the Committee, the Optionee has
delivered to the Committee an Investment Letter in form and content satisfactory
to the Company as provided in paragraph 12 below.

         12. SECURITIES ACT. The Company shall not be required to deliver any
shares of Stock pursuant to the exercise of all or any part of the Option if, in
the opinion of counsel for the Company, the issuance would violate the
Securities Act of 1933, as amended ("Securities Act"), or any other applicable
federal or state securities laws or regulations. The Committee may require that
the Optionee, prior to the issuance of any shares pursuant to exercise of the
Option, sign and deliver to the Company a written statement ("Investment
Letter") stating (i) that the Optionee is purchasing the shares for investment
and not with a view to the sale or distribution thereof; (ii) that the Optionee
will not sell any shares received upon exercise of the Option or any other
shares of the Company that the Optionee may then own or thereafter acquire
except either (a) through a broker on a national securities exchange or (b) with
the prior written approval of the Company; and (iii) containing such other terms
and conditions as counsel for the Company may reasonably require to assure
compliance with the Securities Act or other applicable federal or state
securities laws and regulations. The Investment Letter shall be in form and
content acceptable to the Committee in its sole discretion.

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         13. FEDERAL AND STATE TAXES. Upon exercise of the Option, or any part
thereof, the Optionee may incur certain liabilities for federal, state or local
taxes, and the Company may be required by law to withhold taxes for payment to
taxing authorities. Upon determination by the Company of the amount of taxes
required to be withheld, if any, with respect to the shares to be issued
pursuant to the exercise of the Option, the Optionee shall pay all federal,
state and local tax withholding requirements to the Company.

         14. DEFINITIONS; COPY OF PLAN. To the extent not specifically provided
herein, all capitalized terms used in this Agreement have the same meanings
ascribed to them in the Plan. By the execution of this Agreement, the Optionee
acknowledges receipt of a copy of the Plan.

         15. ADMINISTRATION. This Agreement shall at all times be subject to the
terms and conditions of the Plan, and the Plan shall in all respects be
administered by the Committee in accordance with the terms of and as provided in
the Plan. The Committee shall have the sole and complete discretion with respect
to all matters reserved to it by the Plan, and decisions of the majority of the
Committee with respect thereto and to this Agreement shall be final and binding

upon the Optionee and the Company. In the event of any conflict between the
terms and conditions of this Agreement and the Plan, the provisions of the Plan
shall control.

         16. CONTINUATION OF EMPLOYMENT. This Agreement shall not be construed
to confer upon the Optionee any right to continue in the employ of the Company
and shall not limit the right of the Company's, in its sole discretion, to
terminate the employment of the Optionee at any time.

         17. OBLIGATION TO EXERCISE. The Optionee shall have no obligation to
exercise the Option evidenced by this Agreement.

         18. GOVERNING LAW. This Agreement shall be interpreted and administered
under the laws of the State of Delaware. The Company and the Optionee hereby
consent, in any dispute, action, litigation or other proceeding concerning the
Option (including arbitration) to the jurisdiction of the courts of the State of
California, with the County of Orange being the sole venue for the bringing of
the action or proceeding.

         19. AMENDMENTS. This Agreement may be amended only by a written
agreement executed by the Company and the Optionee. The Company and the Optionee
acknowledge that changes in federal tax laws enacted subsequent to the Date of
Grant, and applicable to stock options, may provide for tax benefits to the
Company or the Optionee. In that event, the Company and the Optionee agree that
this Agreement may be amended as necessary to secure for the Company and the
Optionee any benefits that may result from that legislation. Any amendment shall
be made only upon the mutual consent of the parties, which consent (of either
party) may be withheld for any reason.

         20. TAX INFORMATION AND NOTICE OF DISQUALIFYING DISPOSITION. The Option
is intended to be eligible for treatment as an incentive stock option under
Section 422 of the Code. Whether the Option will receive that tax treatment will
depend, in part, on the actions by the Optionee after exercise of the Option.
For example, if the Optionee disposes of any of the Stock acquired under the

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Option within two years after the Date of Grant or within one year of the date
of exercise of the Option, the Optionee may lose the benefits of Code Section
422. Accordingly, the Company makes no representations by way of the Plan, this
Agreement, or otherwise, with respect to the actual tax consequences of the
grant or exercise of the Option or the subsequent disposition of the Stock
acquired under the Option.

                  If the Optionee sells or makes a disposition (within the
meaning of Section 422 of the Code) of any of the Stock acquired under the
Option prior to the later of (i) one year from the date of exercise of the
Option, or (ii) two years from the Date of Grant, the Optionee agrees to give
written notice to the Company of the disposition. The notice shall include the
Optionee's name, the number, exercise price and exercise date of the shares of
Stock disposed of, and the date of disposition.

         IN WITNESS WHEREOF, the Company has caused this Agreement to be duly
executed by its officer thereunto duly authorized, and the Optionee has hereunto
set his or her hand as of the date first written above.

SSP SOLUTIONS, INC.                                  OPTIONEE

By:
    --------------------------------------         -----------------------------
         Thomas E. Schiff,                         ________________
         Chief Financial Officer                   ____________

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EXHIBIT 10.15

                                   KRDS, INC.
                                  6 CHATTANOOGA
                                IRVINE, CA 92620

April 11, 2002

SSP Solutions, Inc.
17861 Cartwright Road
Irvine, CA 92614

Dear Sir,

Lessor, KRDS, Inc. and Lessee, SSP Solutions, Inc. ("SSP", formerly known as
Litronic Inc.), hereby agree to cancel that certain Lease dated January 2, 2000
for the premises known as 17861 Cartwright Road, Irvine, California provided
that:

         o        Both Lessor and Lessee have the right to cancel the Lease;
         o        The party exercising cancellation provides sixty (60) days
                  advance written notice;
         o        Should the Lessee exercise the right to cancel, Lessee shall
                  be released from all future liability under the lease provided
                  that all amounts due under the Lease are paid current through
                  the date of termination.

Landlord:                                         Tenant:

/S/ Dilip Shah                                    /S/ Thomas E. Schiff
-----------------------                           -------------------------
KRDS, Inc.                                        SSP Solutions, Inc.
Dilip Shah                                        Thomas E. Schiff
Managing Partner                                  Chief Financial Officer

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