Document:

AMENDMENT NO. 1 TO NOTE

                                 March 31, 2004

     Reference  is  made  to that certain Secured Convertible Note dated June 3,
2003  (as  amended,  modified  or supplemented from time to time, the "Borrowing
Note"),  made  by  SpaceDev,  Inc.,  a Colorado corporation (the "Borrower"), in
favor  LAURUS MASTER FUND, LTD., c/o Ironshore Corporate Services Ltd., P.O. Box
1234  G.T.,  Queensgate House, South Church Street, Grand Cayman, Cayman Islands
("Laurus") in the original principal amount of One Million Dollars ($1,000,000),
and (ii) that certain Security Agreement, dated as of  June 3, 2003 (as amended,
modified  or  supplemented from time to time, the "Security Agreement"), between
the Borrower and Laurus.  Capitalized terms used herein without definition shall
have  the  meanings  ascribed  to  such  terms in the applicable Note or, if not
defined  therein,  in  the  Security  Agreement.

     WHEREAS,  the  Borrower  and  Laurus have agreed to amend, pursuant to this
Amendment  No.  1  (this  "Amendment"),  the  Note and the Security Agreement to
change  certain terms of the Note and the Borrower desires to make such changes;

     NOW,  THEREFORE,  in  consideration  for  the execution and delivery by the
Borrower  of  this Amendment, and for other good and valuable consideration, the
receipt  and  sufficiency  of  which  is hereby acknowledged, the parties hereto
agree  as  follows:

     1.     Section  3.2  of  the Note is hereby deleted in its entirety and the
following  new  Section  3.2  is  inserted  in  lieu  thereof:

          "CONVERSION PRICE.  Subject  to adjustment as provided in  Section 3.7
hereof,  the  Conversion  Price  per  share  for  the  first One Million Dollars
($1,000,000)  of  conversions  made  hereunder,  shall  be  $0.55   (the  "FIXED
CONVERSION PRICE") which price shall be determined at closing by multiplying the
volume weighted average closing price of the Borrower's Common Stock for the ten
(10) trading days prior to closing by 103%.  If an Event of Default has occurred
and  shall  be continuing hereunder, then the Conversion Price shall be equal to
the  lower of (i) the Fixed Conversion Price; or (ii) eighty three percent (83%)
of  the  average  of the three lowest closing prices for the Common Stock on the
principal  trading  exchange  or  market  for  the Common Stock, (the "PRINCIPAL
MARKET"),  or on any securities exchange or other securities market on which the
Common  Stock  is  then being listed or traded, for the thirty (30) trading days
prior  to  but  not  including  the  Conversion Date.  For the next Five Hundred
Thousand  Dollars  ($500,000)  converted  hereunder,  the Fixed Conversion Price
therefore  shall  be  set at eight five cents ($0.85) per share of Common Stock.
The  Fixed Conversion Price shall then immediately be reset to equal 103% of the
volume  weighted  average  closing  price  of  the Common Stock for the ten (10)
trading  days  prior to the last day on which such Five Hundred Thousand Dollars
($500,000)  has  been  converted.  Thereafter  for  every  One  Million  Dollars
($1,000,000) of conversions made hereunder, the Fixed Conversion Price per share
of  Common Stock shall thereafter be adjusted upward to equal 103% of the volume
weighted average closing price of the Common Stock for the ten (10) trading days
prior  to  the  last  day  on  which  One  Million Dollars ($1,000,000) has been
converted."

     2.  This  Amendment  shall be effective as of the date hereof following the
execution  of  same  by  the  Borrower  and  Laurus.

     3.  There  are  no  other amendments to the Notes or the Security Agreement
(other  than,  in  each  case,  as  have  been  agreed in writing by the parties
hereto),  and  all of the other forms, terms and provisions of each Note and the
Security  Agreement  remain  in  full  force  and  effect.

     4.  The  Borrower  hereby  represents and warrants to Laurus that as of the
date  hereof  all  representation,  warranties and covenants made by Borrower in
connection  with  each  Note  and  the  Security  Agreement are true correct and
complete,  all of Borrower's covenants requirements have been met and no Default
or  Event  of  Default  has  occurred  and  is  continuing.

     5. This Amendment shall be governed by and construed in accordance with the
laws  of  the State of New York, without giving effect to applicable conflict of
laws  provisions.

                               *     *     *     *

<PAGE>

     IN  WITNESS  WHEREOF,  each  of  the  Borrower  and  Laurus has caused this
Amendment  No.  1 to Note to be signed in its name effective as of this 31st day
of  March,  2004.

    SPACEDEV,  INC.

    By:  /s/ Richard B. Slansky
    ---------------------------
    Name:  Richard B. Slansky
    Title: Chief Financial Officer

    LAURUS  MASTER  FUND,  LTD.

    By:  /s/ David Grin
    -------------------
    Name:  David Grin
    Title:  DirectorMarch  31,  2004

Via  Telecopier
---------------
SpaceDev,  Inc.
13855  Stowe  Drive
Poway,  CA  92064
Attention:  Richard  Slansky

                    Re:     Waiver  Letter
                            --------------
Dear  Mr.  Slansky:

     Reference  is  hereby made to that certain Security Agreement dated June 3,
2003  by and between SpaceDev, Inc. (the "Company") and Laurus Master Fund, Ltd.
("Laurus")  (the  "Security Agreement").  Capitalized terms used but not defined
herein  shall have the meanings ascribed them in the Security Agreement and that
certain  waiver  letter  dated  June 3, 2003 between the Company and Laurus (the
"June  Waiver").  Laurus is hereby notifying you of its decision to exercise the
discretion granted to it pursuant to Section 2 (ii) of the Security Agreement to
make  a Revolving Credit Advance to the Company in the amount of $779,850 on the
date  hereof  (the  "Advance"),  which such amount would otherwise exceed eighty
five  percent  (85%)  of  the  Company's  Eligible  Accounts on the date hereof.

In  connection  with  making  the  advance  made  under the June Waiver and this
Advance,  for  a  period  of six (6) months from the date hereof (the "Period"),
Laurus  hereby  waives  compliance  with Sections 3 and 5(b)(iv) of the Security
Agreement  solely  as  they  relate  to  the immediate repayment requirement for
Overadvances  and the fees accruing thereto.  Laurus further agrees that, solely
for such Period, neither the advance made under the June Waiver nor this Advance
shall  be  deemed  an  Overadvance  and  shall  not  trigger an Event of Default
requiring a five (5) day cure under Section 19(a) of the Security Agreement.  As
of the date hereof, no Event of Default has occurred and is continuing under the
Security  Agreement  or  the  Note  and  all  other  terms and provisions of the
Security Agreement and the Ancillary Agreements remain in full force and effect.

                                   LAURUS  MASTER  FUND,  LTD.

                                   By: /s/ David Grin
                                   ------------------
                                   David  Grin

Agreed  and  accepted  on  the  date  hereof

SPACEDEV,  INC.

By:  /s/ Richard B. Slansky
     ----------------------
     Name:  Richard  B.  Slansky
     Title:  Chief  Financial  OfficerConfidential treatment has been requested for portions of this exhibit. The copy
filed  herewith  omits  the  information  subject  to a confidentiality request.
Omissions  are  designated  ******. A complete version of this exhibit has been
filed  separately  with  the  Securities  and  Exchange  Commission.

ORDER  FOR  SUPPLIES  OR  SERVICES
                                                                  PAGE  1  OF  9
1. CONTRACT/PURCH. ORDER/AGREEMENT NO. HQ0006-04-D-0002
2. DELIVERY ORDER/CALL NO.  00020001
3.  DATE  OF ORDER/CALL 2004 MAR 01
4.  REQ./PURCH. REQUEST NO. 48934, BASIC
5.  PRIORITY
6.  ISSUED  BY     CODE:  HQ0006
     MISSILE  DEFENSE  AGENCY  (MDA)
     7100  DEFENSE  PENTAGON
     WASHINGTON  DC  20301-7100
7.  ADMINISTERED  BY      CODE:  S0514A
     DCMA  SAN  DIEGO
     7675  DAGGET  STREET
     SUITE  100/200
     SAN  DIEGO  CA  92111-2241
8.  DELIVERY  FOB  [X]  DESTINATION  [  ]  OTHER
9.  CONTRACTOR     CODE:  1J2T1     FACILITY:
     SPACEDEV,  INC.
     RICHARD  SLANSKY
     13855  STOWE  DRIVE
     POWAY  CA  92064
10.  DELIVERY  TO  FOB  POINT  BY:  SEE  SCHEDULE
11.  MARK  IF  BUSINESS  IS  [  ]  SMALL [ ] SMALL DISADVANTAGED [ ] WOMEN-OWNED
12.  DISCOUNT  TERMS  N/A
13.  MAIL  INVOICES  TO  THE  ADRESS  IN  BLOCK   SEE  ITEM  15
14.  SHIP  TO     CODE:  HQ0006
     MISSILE  DEFENSE  AGENCY  (MDA)
     DIANA  EICHFELD
     7100  DEFENSE  PENTAGON
     WASHINGTON  DC  20301-7100
15.  PAYMENT  WILL  BE  MADE  BY     CODE:  HQ0339
     DFAS/CO  -  WEST  ENTITLEMENT  OPERATIONS
     P.O.  BOX  182381
     3990  EAST  BROAD  STREET  BLDG  21
     COLUMBUS  OH  43218-2381
16.  TYPE  OF  ORDER:
   [X]  DELIVERY/CALL  This  delivery order/call is issued on another Government
agency  or  in  accordance  with  and  subject  to terms and conditions of above
numbered  contract.
   [  ]  PURCHASE  Reference  your  quote dated   Furnish the following on terms
specified  herein.

ACCEPTANCE.  THE CONTRACTOR HEREBY ACCEPTS THE OFFER REPRESENTED BY THE NUMBERED
PURCHASE ORDER AS IT MAY PREVIOUSLY HAVE BEEN OR IS NOW MODIFIED, SUBJECT TO ALL
OF  THE  TERMS  AND  CONDITIONS  SET  FORTH,  AND  AGREES  TO  PERFORM THE SAME.

NAME  OF  CONTRACTOR  -  SIGNATURE  -
SpaceDev                 /s/ Richard B. Slansky
-----------------------------------------------
TYPED  NAME  AND  TITLE  -  DATE  SIGNED
Richard B. Slansky          April 1, 2004
-----------------------------------------

   [X]  If  this  box  is  marked,  supplier must sign Acceptance and return the
following  number  of  copies:  1
17.  ACCOUNTING  AND  APPROPRIATION  DATA/LOCAL  USE
     SEE  SCHEDULE
18.  ITEM NO. 19 SCHEDULE OF SUPPLIES/SERVICES
20.  QUANTITY ORDERED/ACCEPTED
21.  UNIT
22.  UNIT  PRICE
23.  AMOUNT SEE  SCHEDULE
24.  UNITED  STATES  OF  AMERICA
     TEL:
     EMAIL:
     BY:  CONTRACTING/ORDERING OFFICER
25.  TOTAL:  $  1,414,404.00
26.  DIFFERENCES
27   a.  QUANTITY  IN  COLUMN  20  HAS  BEEN  [  ]  INSPECTED  [  ]  RECEIVED
        [  ]  ACCEPTED,  AND  CONFORMS  TO  THE  CONTRACT  EXCEPT  AS  NOTED
     b.  SIGNATURE  OF  AUTHORIZED  GOVERNMENT  REPRESENTATIVE  c.  DATE
     d.  PRINTED  NAME  AND  TITLE  OF  AUTHORIZED  GOVERNMENT  REPRESENTATIVE
     e.  MAILING  ADDRESS  OF  AUTHORIZED  GOVERNMENT  REPRESENTATIVE
     f.  TELEPHONE  NUMBER
     g.  E-MAIL  ADDRES
28.  SHIP  NO.  [  ]  PARTIAL  [  ]  FINAL
29.  DO  VOUCHER  NO.
30.  INITIALS
31.  PAYMENT  [  ]  COMPLETE  [  ]  PARTIAL  [  ]  FINAL
32.  PAID  BY
33.  AMOUNT  VERIFIED  CORRECT  FOR
34.  CHECK  NUMBER
35.  BILL  OF  LADING  NO.
36.  I  CERTIFY  THIS  ACCOUNT  IS  CORRECT  AND  PROPER  FOR  PAYMENT.
     a.  DATE  b.  SIGNATURE  AND  TITLE  OF  CERTIFYING  OFFICER
37.  RECEIVED  AT
38.  RECEIVED  BY
39.  DATE  RECEIVED
40.  TOTAL  CONTAINERS
41.  S/R  ACCOUNT  NO.
42.  S/R  VOUCHER  NO.

DD  FORM  1155  DEC  2001

                                                                HQ0006-04-D-0002
                                                                            0001
                                                                     Page 2 of 9

Section  B  -  Supplies  or  Services  and  Prices

   ITEM NO     SUPPLIES/SERVICES     QUANTITY     UNIT     UNIT PRICE     AMOUNT
   0001                              7,018        Labor
                                                  Hours
               Micro  Sat  Distributed  Sensing  Experiment
               CPFF
               The  Contractor  shall  conduct  a  micro  satellite  distributed
               sensing  experiment and conduct other micro satellite studies and
               experiments  as  required  in  accordance  with  the Statement of
               Objectives  (SOO)  in  Section  C-1. NOTE: The unit of issue of 1
               Labor  Hour equates to 1 Direct Productive Labor Hour (DPLH). See
               Special  Contract  Requirement  H-1.
               PURCHASE  REQUEST  NUMBER:  48934,  BASIC

                                                ESTIMATED COST     $1,033,253.00
                                                        FIXED FEE     $87,476.00
                                          TOTAL EST COST + FEE     $1,120,729.00
                                                                   -------------
                                         ACRN AA Funded Amount     $1,120,729.00

FOB:  Destination

   ITEM NO     SUPPLIES/SERVICES     QUANTITY     UNIT     UNIT PRICE     AMOUNT
   0002                                           Cost
               Other  Direct  Costs  -  Travel
               COST
               Travel  to  support  MDA/AS  in  accordance with the SOO (Section
               C-1).  PURCHASE  REQUEST  NUMBER:  48934,  BASIC

                                                   ESTIMATED COST     $20,675.00
                                            ACRN AA Funded Amount     $20,675.00

FOB:  Destination

                                                                  PAGE  3  OF  9

   ITEM NO     SUPPLIES/SERVICES     QUANTITY     UNIT     UNIT PRICE     AMOUNT
   0003                                                                      NSP
               Data  and  Reports
               CPFF
               Provide  data  and  reports  for CLIN 0001 in accordance with the
               Statement  of  Objectives (SOO) in Section C-1. THIS LINE ITEM IS
               NOT  SEPARATELY  PRICED  (NSP)  FROM  LINE  ITEM  0001.
               PURCHASE  REQUEST  NUMBER:  48934,  BASIC

                                                        ESTIMATED COST     $0.00
                                                             FIXED FEE     $0.00
                                                  TOTAL EST COST + FEE     $0.00
                                                                           -----
                                                         Funded Amount     $0.00

FOB:  Destination

                                                                  PAGE  4  OF  9

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

Section  C  -  Descriptions  and  Specifications

CLAUSES  INCORPORATED  BY  FULL  TEXT

C-01     SCOPE  OF  WORK  (JAN  2001)

     The Contractor shall perform the work specified in the SOO below, and shall
provide  any  material,  equipment,  and  facilities  incidental to performance.

                             STATEMENT OF OBJECTIVES
                                 TASK ORDER 0001
                                HQ0006-04-D-0002
                              TYPE: CPFF COMPLETION
                             ESTIMATED DPLH:  7,018

                         DISTRIBUTIVE SENSING EXPERIMENT
                               EXPERIMENT ANALYSIS
                                 14 JANUARY 2004

1.0     BACKGROUND
        ----------

This  is  a task order contract to conduct a micro satellite Distributed Sensing
Experiment and, possibly as an option, a laser communications experiment, and to
conduct  other  micro  satellite  studies  and  experiments  as  required.  The
experiments  and  studies  shall  require SpaceDev, Inc. to procure hardware and
software  pursuant  to  design, build, test, integrate with launch vehicles, and
operate  micro  satellites  for  the purpose of supporting the Ballistic Missile
Defense  System  (BMDS).  This  task order contracts for the Experiment Analysis
Phase.

2.0     SCOPE
        -----

SpaceDev,  Inc. shall be the prime contractor providing all labor, material, and
administrative  activities necessary to perform the Experiment Analysis Phase of
the  Distributive  Sensing  Experiment.

3.0     PERIOD  OF  PERFORMANCE
        -----------------------

The  period  of  performance  for this phase is date of task order award through
September  30,  2004.

4.0     REQUIREMENTS
        ------------
4.1     [******]
4.1.1     [******]

                                                                  PAGE  5  OF  9

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

4.1.2     [******]
4.1.3     [******]
4.2       [******]
4.3       [******]
4.4       [******]
4.5       [******]
4.5.1     [******]
4.5.2     [******]
4.5.3     [******]
4.5.4     [******]
4.5.5     [******]
4.5.6     [******]
4.5.7     [******]
4.5.8     [******]

5.0     DELIVERABLES
        ------------

The  deliverables  for  the Experiment Analysis Phase are described in the table
below.
                           Deliverable                               Description
Funds  and  Labor  Hours  Expenditure  Report  (FLHER)                  [******]
------------------------------------------------------                 ---------
Monthly  Status  Report                                                 [******]
-----------------------                                                ---------
Quarterly  Progress  Review  Briefing                                   [******]
-------------------------------------                                  ---------

                                                                  PAGE  6  OF  9

System  Functional  Review  Documentation  and  Briefing                [******]
--------------------------------------------------------               ---------

<PAGE>

6.0     GOVERNMENT  FURNISHED  EQUIPMENT  (GFE)
        ---------------------------------------

The  Government  does  not  plan  to provide any GFE for the Experiment Analysis
Phase.

                                                                  PAGE  7  OF  9

Section  E  -  Inspection  and  Acceptance

INSPECTION  AND  ACCEPTANCE  TERMS

Supplies/services  will  be  inspected/accepted  at:

CLIN     INSPECT  AT     INSPECT  BY     ACCEPT  AT     ACCEPT  BY
----     -----------
0001     Destination     Government     Destination     Government
0002     Destination     Government     Destination     Government
0003     Destination     Government     Destination     Government

                                                                  PAGE  8  OF  9

Section  F  -  Deliveries  or  Performance

DELIVERY  INFORMATION

CLIN     DELIVERY  DATE       QUANTITY   SHIP  TO  ADDRESS                   UIC

0001     POP 01-MAR-2004 TO   N/A        MISSILE  DEFENSE  AGENCY  (MDA)  HQ0006
         01-SEP-2004                     DIANA  EICHFELD
                                         7100  DEFENSE  PENTAGON
                                         WASHINGTON  DC  20301-7100
                                         703-882-6587
                                         FOB:  Destination
0002     POP 01-MAR-2004 TO   N/A       (SAME  AS  PREVIOUS  LOCATION)    HQ0006
         01-SEP-2004                     FOB:  Destination
0003     POP 01-MAR-2004 TO   N/A       (SAME  AS  PREVIOUS  LOCATION)    HQ0006
         01-SEP-2004                     FOB:  Destination

                                                                  PAGE  9  OF  9

Section  G  -  Contract  Administration  Data

ACCOUNTING  AND  APPROPRIATION  DATA

AA:     9740400.2520  30603175C  2525  012123  BMDO0137218934
AMOUNT:     $1,141,404.00

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