Document:

EXHIBIT 10.4

--------------------------------------------------------------------------------
AWARD/CONTRACT      1.This Contract is A Rated Order     Rating      Page 1 of 2
                        Under DPAS (15 CFR 700)              DOA?
--------------------------------------------------------------------------------
2.Contract (Proc. Inst.   3.Effective Date    4.Requisition/Purchase Request/
  Indent) No.                                   Project No.
 DAAB07-02-C-P006                                     SEE SCHEDULE
--------------------------------------------------------------------------------
5.Issued By               Code W15P7T        6.Administered By       Code S0513A
                                               (If Other Than Item 5)
COMMANDER US ARMY CECOM, ACQ CENTER            DCMC SANTA ANA
AMSEL-ACCC-RT-E                                34 CIVIC CENTER PLAZA
ANITA FISCHER (732) 427-1343 new               P O BOX C-12700
FORT MONMOUTH, NJ 07703-5008                   SANTA ANA, CA 92712-2700

e-mail address:                                SCD c  PAS NONE  ADP PT SC1002
ANITA.FISCHER@MAIL1.MONMOUTH.ARMY.MIL
--------------------------------------------------------------------------------
7.Name And Address of Contractor                 8. Delivery
(No, Street, City, County, State, And Zip Code)
HI ENERGY MICRODEVICES, INC.                       [ ] FOB Origin   [x] Other
10 MAUCHLY DRIVE                                                    (See Below)
IRVINE, CA 92618-2306                                               SEE SCHEDULE
                                                 -------------------------------
                                                 9. Discount For Prompt Payment

                                                 -------------------------------
                                                 10. Submit Invoices        Item
TYPE BUSINESS: Other Small Business              (4 Copies Unless            12
Performing in U.S.                                Otherwise Specified)
-------------------------------------------------
Code 076M8           Facility Code                To The Address Shown As:
--------------------------------------------------------------------------------
11.Ship To/Mark For       Code         12. Payment Will Be Made By   Code HQ0339
 SEE SCHEDULE                              DFAS-COLUMBUS CENTER
                                           WEST ENTITLEMENT OPERATIONS
                                           P O BOX 182381
                                           COLUMBUS, OH 43218-2391

--------------------------------------------------------------------------------
13. Authority For Using Other Than      14. Accounting and Appropriation Date
Full And Open Competition
[ ] 10 U.S.C.2304(c)(  ) 41 U.S.C.253(c) ACRN: AA 21 2204000002627525P665502255Y
                                               S2B043  W15GK8
--------------------------------------------------------------------------------
15A.Item No.  15B.Schedule of    15C.Quantity   15D.Unit   15E.Unit   15F.Amount
              Supplies/Services                               Price
--------------------------------------------------------------------------------
SEE SCHEDULE   CONTRACT TYPE:         KIND OF CONTRACT:
               Firm-Fixed-Price         Research and Development Contracts
--------------------------------------------------------------------------------
                                        15G.Total Amount of Contract  $70,000.00
--------------------------------------------------------------------------------
                              16. Table of Contents
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(X)  Section    Description     Page(s)  (X)  Section  Description       Page(s)
--------------------------------------------------------------------------------
           Part I - The Schedule                 Part II-Contract Clauses
--------------------------------------------------------------------------------
x    A       Solicitation/Contract  1             I     Contract Clauses
             Form
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     B       Supplies or Services and            PART III-List of Documents,
             Prices/Costs                        Exhibits, And Other Attachments
--------------------------------------------------------------------------------
     C       Description/Specs./                  J     List of Attachments
             Work Statement
--------------------------------------------------------------------------------
     D       Packaging and Marking               PART IV-Representations And
                                                 Instructions
--------------------------------------------------------------------------------
     E       Inspection and Acceptance            K     Representations,
                                                        Certifications, and
--------------------------------------------
     F       Deliveries or Performance                  Other Statements of
                                                        Offerors
--------------------------------------------------------------------------------
     G       Contract Administration              L     Intrs., Conds., and
             Data                                       Notices to Offerors
--------------------------------------------------------------------------------
     H       Special Contract Requirements        M     Evaluation Factors for
                                                        Award
--------------------------------------------------------------------------------
          Contracting Officer Will Complete Item 17 Or 18 As Applicable
--------------------------------------------------------------------------------
17. [x] Contractor's Negotiated Agreement (Contractor is required to sign this
document and return 2 signed copies to issuing office.) Contractor agrees to
                    --------
furnish and deliver all items or perform all the services set forth or otherwise
identified above and on any continuation sheets for the consideration stated
herein. The rights and obligations of the parties to this contract shall be
subject 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.)

18. [ ] Award (Contractor is not required to sign this document.) Your offer on
Solicitation Number             including the additions or changes made by you
                   -------------
which additions or changes are set forth in full above, is hereby accepted as to
the items listed above and on any continuation sheets. This award consummates
the contract which consists of the following documents: (a) the Government's
solicitation and your offer, and (b) this award/contract. No further contractual
document is necessary.
--------------------------------------------------------------------------------
19A.Name And Title Of Signer (Type Or Print)    20A.Name of Contracting Officer
 KEITH COWAN, PRESIDENT                         VIRIGINIA KNIGHT
                                                ANDERSJ2@MONMOUTH.ARMY.MIL
                                                (732) 532-4348
--------------------------------------------------------------------------------
19B. Name of Contractor   19c.Date Signed    20B.United States   20C.Date Signed
                                                 Of America

By /s/ Keith Cowan             12 Feb 02     By
  ---------------------                        -------------------
  (Signature of person                         (Signature of
   authorized to sign)                          Contracting Officer)
--------------------------------------------------------------------------------
NSN 7540-152-8069             25-106           Standard Form 26 (Rev. 4-85)
PREVIOUS EDITIONS      GPO: 1985 0-478-632     Prescribed By GSA-FAR
UNUSABLE                                       (4.8 CFR) 53.214(a)

<PAGE>
--------------------------------------------------------------------------------
                         Reference No. of Document Being Continued
    CONTINUATION SHEET                                              Page 2 of 21
                          PIIN/SIIN DAAB07-02-C-P006     MOD/AMD
--------------------------------------------------------------------------------
NAME OF OFFEROR or CONTRACTOR:  Hi ENERGY MICRODEVICES, INC.
--------------------------------------------------------------------------------
SECTION A - SUPPLEMENTAL INFORMATION

         Regulatory Cite               Title                           Date
         -----------------------------------------------------------------------

A-1      52.6106           NOTICE: SOLICITATION OMBUDSMAN             JUN/1997
     (a) The US Army Communications-Electronics Command (CECOM) has established
the Office of Solicitation Ombudsman to assist industry in removing unnecessary
and burdensome requirements from CECOM solicitations. The Ombudsman is
authorized to suspend, cancel or revise solicitations that do not represent
proper procurement practices or sound business judgment.

     (b) If you feel that a CECOM solicitation contains improper elements or can
be further streamlined to promote more efficient use of taxpayer dollars, you
                                                                          ---
should first identify these issues to the Procuring Contracting Officer (PCO),
------------------------------------------------------------------------------
JUDITH A. ANDERSON (732) 427-1408. If the PCO is unable to resolve your concerns
--------------------------------------------------------------------------------
satisfactorily, or cannot do so in a timely manner, you are encouraged to call
------------------------------------------------------------------------------
the CECOM Ombudsman at (732) 532-3028. The PCO/Ombudsman should be advised at
least 5 days prior to the date established in the solicitation for the receipt
      ------
of offers of any deficiency. You may also write to:

                      Commander, US ARMY CECOM
                      CECOM Acquisition Center
                      Solicitation Ombudsman
                      Attn: Mrs. Kathleen T. Walk
                      AMSEL-ACSB-B
                      Fort Monmouth, NJ  07703-5008

<PAGE>
--------------------------------------------------------------------------------
                         Reference No. of Document Being Continued
    CONTINUATION SHEET                                              Page 3 of 21
                          PIIN/SIIN DAAB07-02-C-P006     MOD/AMD
--------------------------------------------------------------------------------
NAME OF OFFEROR or CONTRACTOR:  HI ENERGY MICRODEVICES, INC.
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------
ITEM NO.  SUPPLIES/SERVICES                                     QUANTITY    UNIT  UNIT PRICE    AMOUNT
------------------------------------------------------------------------------------------------------
<S>       <C>                                                 <C>           <C>   <C>         <C>
          SECTION B - SUPPLIES OR SERVICES AND PRICES/COSTS

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

0001A     HI ENERGY DEVICES - SUPER SENSOR                                  LO                $**NSP**
          --------------------------------                                                    --------

          NOUN: SBIR PHASE I - R&D EFFORT
          SECURITY CLASS:    Unclassified
          This SBIR Phase I effort is for R&D services
          to develop a non-intrusive long-range trans-
          metal explosive-specific landmine super
          sensor operating as both primary and/or
          confirmation detector in accordance to the
          attached Statement of Work (SOW) at Section
          B.  Attachment 001.

          These services are to be funded as payable
          reports/data items as outlined in CLINs 0002
          through 0007 below.

                    (End of narrative B001)

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

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

0002AA    SCIENTIFIC AND TECHINICAL REPORT                               1  EA                $11,667.00
          --------------------------------                                                    ----------

          NOUN: DATA ITEM
          SECURITY CLASS:  Unclassified
          PRON: 1G21072ACJ PRON AMD: 01 ACRN: AA
          AMS CD: 665502M4055
            The Progress, Status and Management Report
            shall be provided in accordance with (IAW)
            Contract Data Requirements List (CDRL), DI
            MGMT-80227, Exhibit A which references 5.1
            of the Statement of Work (SOW).

          (End of Narrative B001)

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

          Deliveries or Performance
          -------------------------
          DLVR SCH                               PERF COMPL
           REL CD            QUANTITY              DATE
          --------           --------            -----------
            001                 1                26-MAR-2002

                            $      11,667.00

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

0003AA    PROGRESS, STATUS AND MANAGEMENT REPORT                         1  EA                $11,667.00
          --------------------------------------                                              ----------

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

<PAGE>
--------------------------------------------------------------------------------
                         Reference No. of Document Being Continued
    CONTINUATION SHEET                                              Page 4 of 21
                          PIIN/SIIN DAAB07-02-C-P006     MOD/AMD
--------------------------------------------------------------------------------
NAME OF OFFEROR or CONTRACTOR:  HI ENERGY MICRODEVICES, INC.
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------
ITEM NO.  SUPPLIES/SERVICES                                     QUANTITY    UNIT  UNIT PRICE    AMOUNT
------------------------------------------------------------------------------------------------------
<S>       <C>                                                 <C>           <C>   <C>         <C>

          NOUN: DATA ITEM
          SECURITY CLASS:  Unclassified
          PRON: 1G21072ACJ   PRON AMD: 01   ACRN: AA
          AMS CD: 665502M4055
            The Progress, Status and Management Report
            shall be provided in accordance with (IAW)
            Contract Data Requirements List (CDRL), DI
            MGMT-80227, Exhibit A which references 5.1
            of the Statement of Work (SOW).

                     (End of Narrative B001)

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

          Deliveries or Performance
          -------------------------
          DLVR SCH                               PERF COMPL
           REL CD            QUANTITY               DATE
          --------           --------            -----------
            001                 1                15-APR-2002

                            $      11,667.00

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

0004AA    PROGRESS, STATUS AND MANAGEMENT REPORT                         1  EA                $11,667.00
          --------------------------------------                                              ----------

          NOUN: DATA ITEM
          SECURITY CLASS:  Unclassified
          PRON: 1G21072ACJ PRON AMD: 01 ACRN: AA
          AMS CD: 665502M4055
            The Progress, Status and Management Report
            shall be provided in accordance with (IAW)
            Contract Data Requirements List (CDRL), DI
            MGMT-80227, Exhibit A which references 5.1
            of the Statement of Work (SOW).

                     (End of Narrative B001)

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

          Deliveries or Performance
          -------------------------
          DLVR SCH                               PERF COMPL
           REL CD            QUANTITY              DATE
          --------           --------            ----------
            001                 1                15-MAY-2002

                            $      11,667.00

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

0005AA    PROGRESS, STATUS AND MANAGEMENT REPORT                         1  EA                $11,667.00
          --------------------------------------                                              ----------

          NOUN: DATA ITEM
          SECURITY CLASS:  Unclassified
          PRON: 1G21072ACJ    PRON AMD: 01    ACRN: AA
--------------------------------------------------------------------------------------------------------
</TABLE>

<PAGE>
--------------------------------------------------------------------------------
                         Reference No. of Document Being Continued
    CONTINUATION SHEET                                              Page 5 of 21
                          PIIN/SIIN DAAB07-02-C-P006     MOD/AMD
--------------------------------------------------------------------------------
NAME OF OFFEROR or CONTRACTOR:  HI ENERGY MICRODEVICES, INC.
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------
ITEM NO.  SUPPLIES/SERVICES                                     QUANTITY    UNIT  UNIT PRICE    AMOUNT
------------------------------------------------------------------------------------------------------
<S>       <C>                                                 <C>           <C>   <C>         <C>

          AMS CD: 665502M4055
            The Progress, Status and Management Report
            shall be provided in accordance with (IAW)
            Contract Data Requirements List (CDRL), DI
            MGMT-80227, Exhibit A which references 5.1
            of the Statement of Work (SOW).

                     (End of Narrative B001)

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

          Deliveries or Performance
          -------------------------
          DLVR SCH                               PERF COMPL
           REL CD            QUANTITY              DATE
          --------           --------            ----------
            001                 1                15-JUN-2002

                            $      11,667.00

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

0006AA    PROGRESS, STATUS AND MANAGEMENT REPORT                         1  EA                $11,666.00
          --------------------------------------                                              ----------

          NOUN: DATA ITEM
          SECURITY CLASS:  Unclassified
          PRON: 1G21072ACJ    PRON AMD: 01    ACRN: AA
          AMS CD: 665502M4055
            The Progress, Status and Management Report
            shall be provided in accordance with (IAW)
            Contract Data Requirements List (CDRL), DI
            MGMT-80227, Exhibit A which references 5.1
            of the Statement of Work (SOW).

                    (End of Narrative B001)

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

          Deliveries or Performance
          -------------------------
          DLVR SCH                               PERF COMPL
           REL CD            QUANTITY              DATE
          --------           --------            ----------
            001                 1                15-JUL-2002

                            $      11,666.00

0007      Supplies or Services and Prices/Costs
          -------------------------------------

0007AA    PROGRESS, STATUS AND MANAGEMENT REPORT                         1  EA                $11,666.00
          --------------------------------------                                              ----------

          NOUN: DATA ITEM
          SECURITY CLASS:  Unclassified
          PRON: 1G21072ACJ     PRON AMD:   01 ACRN: AA
          AMS CD: 665502M4055
            The Progress, Status and Management Report
            shall be provided in accordance with (IAW)
------------------------------------------------------------------------------------------------------
</TABLE>

<PAGE>
--------------------------------------------------------------------------------
                         Reference No. of Document Being Continued
    CONTINUATION SHEET                                              Page 6 of 21
                          PIIN/SIIN DAAB07-02-C-P006     MOD/AMD
--------------------------------------------------------------------------------
NAME OF OFFEROR or CONTRACTOR:  HI ENERGY MICRODEVICES, INC.
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------
ITEM NO.  SUPPLIES/SERVICES                                     QUANTITY    UNIT  UNIT PRICE    AMOUNT
------------------------------------------------------------------------------------------------------
<S>       <C>                                                 <C>           <C>   <C>         <C>

            Contract Data Requirements List (CDRL), DI
            MGMT-#0227, Exhibit A which references 5.1
            of the Statement of Work (SOW).

                    (End of Narrative B001)

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

          Deliveries or Performance
          -------------------------
          DLVR SCH                               PERF COMPL
           REL CD            QUANTITY               DATE
          --------           --------            ----------
            001                 1                15-AUG-2002

                            $      11,666.00

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

<PAGE>
--------------------------------------------------------------------------------
                         Reference No. of Document Being Continued
    CONTINUATION SHEET                                              Page 7 of 21
                          PIIN/SIIN DAAB07-02-C-P006     MOD/AMD
--------------------------------------------------------------------------------
NAME OF OFFEROR or CONTRACTOR:  HI ENERGY MICRODEVICES, INC.
--------------------------------------------------------------------------------
SECTION C - DESCRIPTION/SPECIFICATIONS/WORK STATEMENT

           Regulatory Cite                 Title                        Date
           -------------------------------------------------------------------

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

     1. The documents listed at Attachment 1 (Statement of Work) 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 (see Statement of Work) 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 or the Contract Data Requirements Lists (CDRLs -
DD Form 14253) that apply to this contract is furnished at Exhibits A and B. 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 -4- 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 3.

     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), dated 01
July 2001, and Supplement September 2001. 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 materials 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 all drawings and related drawing lists needed to prepare a
realistic bid/offer and construct the equipment are included therein.

<PAGE>
--------------------------------------------------------------------------------
                         Reference No. of Document Being Continued
    CONTINUATION SHEET                                              Page 8 of 21
                          PIIN/SIIN DAAB07-02-C-P006     MOD/AMD
--------------------------------------------------------------------------------
NAME OF OFFEROR or CONTRACTOR:  HI ENERGY MICRODEVICES, INC.
--------------------------------------------------------------------------------
               (2) The bidder/offeror/contractor shall utilize the documents
(35mm 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
not be government-furnished for incorporation into 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>
--------------------------------------------------------------------------------
                         Reference No. of Document Being Continued
    CONTINUATION SHEET                                              Page 9 of 21
                          PIIN/SIIN DAAB07-02-C-P006     MOD/AMD
--------------------------------------------------------------------------------
NAME OF OFFEROR or CONTRACTOR:  HI ENERGY MICRODEVICES, INC.
--------------------------------------------------------------------------------
SECTION D - PACKAGING AND MARKING

           Regulatory Cite                 Title                        Date
           --------------------------------------------------------------------

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

     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 IAW ANSI/AIM-BC1, 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 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>
--------------------------------------------------------------------------------
                         Reference No. of Document Being Continued
    CONTINUATION SHEET                                             Page 10 of 21
                          PIIN/SIIN DAAB07-02-C-P006     MOD/AMD
--------------------------------------------------------------------------------
NAME OF OFFEROR or CONTRACTOR:  HI ENERGY MICRODEVICES, INC.
--------------------------------------------------------------------------------
SECTION E - INSPECTION AND ACCEPTANCE

           Regulatory Cite                 Title                        Date
           --------------------------------------------------------------------
    E-1    52.246-01             CONTRACTOR INSPECTION REQUIREMENTS   APR/1984
    E-2    52.246-09             INSPECTION OF RESEARCH AND
                                 DEVELOPMENT (SHORT FORM)             APR/1984
    E-3    52.246-16             RESPONSIBILITY FOR SUPPLIES          APR/1984

<PAGE>
--------------------------------------------------------------------------------
                         Reference No. of Document Being Continued
    CONTINUATION SHEET                                             Page 11 of 21
                          PIIN/SIIN DAAB07-02-C-P006     MOD/AMD
--------------------------------------------------------------------------------
NAME OF OFFEROR or CONTRACTOR:  HI ENERGY MICRODEVICES, INC.
--------------------------------------------------------------------------------
SECTION F - DELIVERIES OR PERFORMANCE

           Regulatory Cite                 Title                        Date
           --------------------------------------------------------------------
    F-1    52.242-15             STOP-WORK ORDER                     AUG/1989
    F-2    52.242-17             GOVERNMENT DELAY OF WORK            APR/1984
    F-3    52.247-34             F.O.B. DESTINATION                  NOV/1991

<PAGE>
--------------------------------------------------------------------------------
                         Reference No. of Document Being Continued
    CONTINUATION SHEET                                             Page 12 of 21
                          PIIN/SIIN DAAB07-02-C-P006     MOD/AMD
--------------------------------------------------------------------------------
NAME OF OFFEROR or CONTRACTOR:  HI ENERGY MICRODEVICES, INC.
--------------------------------------------------------------------------------
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>      <C>
0002AA  1G21072ACJ    AA     2  21 2204000002627525P665502255Y S28043  2JF8M4  W15GK8   $11,667.00
     665502M4055

0003AA  1G21072ACJ    AA     2  21 2204000002627525P665502255Y S28043  2JF8M4  W15GK8   $11,667.00
     665502M4055

0004AA  1G21072ACJ    AA     2  21 2204000002627525P665502255Y S28043  2JF8M4  W15GK8   $11,667.00
     665502M4055

0005AA  1G21072ACJ    AA     2  21 2204000002627525P665502255Y S28043  2JF8M4  W15GK8   $11,667.00
     665502M4055

0006AA  1G21072ACJ    AA     2  21 2204000002627525P665502255Y S28043  2JF8M4  W15GK8   $11,666.00
     665502M4055

0007AA  1021072ACJ    AA     2  21 2204000002627525P665502255Y S28043  2JF8M4  W15GK8   $11,666.00
     665502M4055
                                                                                       -----------
                                                                               TOTAL    $70,000.00
</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    $70,000.00
                                                                                        ----------

                                                                               TOTAL    $70,000.00
</TABLE>

           Regulatory Cite                 Title                        Date
           --------------------------------------------------------------------

    G-1    252.204-7004        REQUIRED CENTRAL CONTRACTOR            NOV/2001
                               REGISTRATION (CCR)

     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

<PAGE>
--------------------------------------------------------------------------------
                         Reference No. of Document Being Continued
    CONTINUATION SHEET                                             Page 13 of 21
                          PIIN/SIIN DAAB07-02-C-P006     MOD/AMD
--------------------------------------------------------------------------------
NAME OF OFFEROR or CONTRACTOR:  HI ENERGY MICRODEVICES, INC.
--------------------------------------------------------------------------------
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 date. 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

                                (End of Clause)

    G-2    52.7025       PLACE OF PERFORMANCE AND SHIPPING POINT        MAR/1999

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

     Location of Final Manufacture: IRVINE, CA 92618-2306
                                        (City, County, State)

     Packaging and Packing: IRVINE, CA 92618-2306
                            ---------------------
                                        (City, County, State)

     Shipping Point (at or near):  IRVINE, CA 92618-2306
                                        (Street Address, City, State, Zip Code)

     Producing Facilities: IRVINE, CA 92618-2306
                                  (Owner, Street Address, City, State, Zip Code)

     Operator:
                               (Operator, Street Address, City, State, Zip Code)

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

            10 MAUCHLY DRIVE, IRVINE, CA 92618-2306

     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 PERFORMACE 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.

    G-3    52.7055       MANDATORY USE OF GOVERNMENT TO                JUN/1999
                         GOVERNMENT ELECTRONIC MAIL

     (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*

<PAGE>
--------------------------------------------------------------------------------
                         Reference No. of Document Being Continued
    CONTINUATION SHEET                                             Page 14 of 21
                          PIIN/SIIN DAAB07-02-C-P006     MOD/AMD
--------------------------------------------------------------------------------
NAME OF OFFEROR or CONTRACTOR:  HI ENERGY MICRODEVICES, INC.
--------------------------------------------------------------------------------

          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>
--------------------------------------------------------------------------------
                         Reference No. of Document Being Continued
    CONTINUATION SHEET                                             Page 15 of 21
                          PIIN/SIIN DAAB07-02-C-P006     MOD/AMD
--------------------------------------------------------------------------------
NAME OF OFFEROR or CONTRACTOR:  HI ENERGY MICRODEVICES, INC.
--------------------------------------------------------------------------------
SECTION H - SPECIAL CONTRACT REQUIREMENTS

           Regulatory Cite                 Title                        Date
           ---------------------------------------------------------------------

    H-1    252.204-7003  CONTROL OF GOVERNMENT PERSONNEL WORK PRODUCT   APR/1992

    H-2    52.6110       MANDATORY USE OF CONTRACTOR TO                 JUN/1999
                         GOVERNMENT ELECTRNIC MAIL

(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 Outlook/Windows NT

     (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,
shall 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 Letter
          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 megabytes)
          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:
          Judith.Anderson@mail1.monmouth.army.mil
          The  Contract  Specialist's  e-mail  address  is:
          Anita.Fischer@mail1.monmouth.army.mil
          The Technical Point of Contact's e-mail address is:
          placko@exchange.nvl.army.mil

                                (End of clause)

    H-3    52.6115       MATERIAL INSPECTION AND RECEIVING REPORTS      APR/1999
                         (DD FORM 250) DFARS APPENDIX F

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

<PAGE>
--------------------------------------------------------------------------------
                         Reference No. of Document Being Continued
    CONTINUATION SHEET                                             Page 16 of 21
                          PIIN/SIIN DAAB07-02-C-P006     MOD/AMD
--------------------------------------------------------------------------------
NAME OF OFFEROR or CONTRACTOR:  HI ENERGY MICRODEVICES, INC.
--------------------------------------------------------------------------------
        ADDRESS                                       NO. OF COPIES
        -------                                       -------------
        Commander,                                         1
        US Army CECOM
        ATTN: AMSEL-AC-CC-RT-E (Anita Fischer)
        Fort Monmouth, NJ 07703-5000

        Commander,                                         1
        US Army CECOM
        ATTN: AMSEL-RD-NV-ST-CM (Peter Lacko)
        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.

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

    H-4    52.6195      CONTRACTOR AND COTR IDENTIFICATION      OCT/1999

Contracting personnel must identify themselves as "contractors" when attending
meetings, answering Government telephones, or working in situations where their
actions could be construed as official Government acts. The Government manager
or Contracting Officer's Technical Representative (COTR) must ensure that the
contracted employee displays his or her name and the name of the company while
in the work area, wears and displays a building pass at all times, and includes
the company's name in his or her email display.

If a Government manager wishes to send a contractor to any type of meeting where
classified or sensitive unclassified material may be presented, the COTR must
provide in writing or e-mail verification of the contractors' security clearance
and/or need to know.

As prescribed by other laws herein, sexual harassment and other forms of
discrimination are unacceptable conduct in the Army workplace whether committed
by or against its Government or contractors' employees. Violations of this
policy could result in joint liability for both the Army and the contractor(s).

The COTR point-of-contact for this acquisition is:     Mr. Peter Lacko
                                                               (703) 704-3873

                                (End of clause)

<PAGE>
--------------------------------------------------------------------------------
                         Reference No. of Document Being Continued
    CONTINUATION SHEET                                             Page 17 of 21
                          PIIN/SIIN DAAB07-02-C-P006     MOD/AMD
--------------------------------------------------------------------------------
NAME OF OFFEROR or CONTRACTOR:  HI ENERGY MICRODEVICES, INC.
--------------------------------------------------------------------------------

    H-5    252.235-7011        FINAL SCIENTIFIC OR               SEP/1999
                               TECHNICAL REPORT

     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          SEPT/1997
                        TO THE 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
of  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:

<TABLE>
<CAPTION>
                                  Material to be                                 Number of  Days Required By
Approve                          Reviewed/Approved                                Copies     Government to
-------  -----------------------------------------------------------------  ---  ---------  ----------------
<S>      <C>                                                                <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 viewgraphs, 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 Production 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.
</TABLE>

<PAGE>
--------------------------------------------------------------------------------
                         Reference No. of Document Being Continued
    CONTINUATION SHEET                                             Page 18 of 21
                          PIIN/SIIN DAAB07-02-C-P006     MOD/AMD
--------------------------------------------------------------------------------
NAME OF OFFEROR or CONTRACTOR:  HI ENERGY MICRODEVICES, INC.
--------------------------------------------------------------------------------

          TV  NEWS  FILM
          --------------

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

     (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
    written approval of US Army CECOM, Fort Monmouth, NJ (see 35 USC 205).

    H-7    52.7630      YEAR 2000 COMPLIANCE              APR/2001

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

<PAGE>
--------------------------------------------------------------------------------
                         Reference No. of Document Being Continued
    CONTINUATION SHEET                                             Page 19 of 21
                          PIIN/SIIN DAAB07-02-C-P006     MOD/AMD
--------------------------------------------------------------------------------
NAME OF OFFEROR or CONTRACTOR:  HI ENERGY MICRODEVICES, INC.
--------------------------------------------------------------------------------
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/1996
I-5    52.203-6        RESTRICTIONS ON SUBCONTRACTOR SALES TO THE GOVERNMENT                    JUL/1995
                       (JUL 1995) AND ALTERNATE I (OCT 1995)
I-6    52.203-7        ANTI-KICKBACK PROCEDURES                                                 JUL/1995
I-7    52.203-8        CANCELLATION, RESCISSION, AND RECOVERY OF FUNDS FOR ILLEGAL              JAN/1997
                       OR 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
I-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   52.215-6        ORDER OF PRECEDENCE--UNIFORM CONTRACT FORMAT                             OCT/1997
I-14   52.219-8        UTILIZATION OF SMALL BUSINESS CONCERNS                                   OCT/2000
I-15   52.222-1        NOTICE TO THE GOVERNMENT OF LABOR DISPUTES                               FEB/1997
I-16   52.222-20       WALSH-HEALEY PUBLIC CONTRACTS ACT                                        DEC/1996
I-17   52.222-35       EQUAL OPPORTUNITY FOR SPECIAL DISABLED VETERANS, VETERANS OF THE         DEC/2001
                       VIETNAM ERA & OTHER ELIGIBLE VETERANS
I-18   52.222-36       AFFIRMATIVE ACTION FOR WORKERS WITH DISABILITIES                         JUN/1998
I-19   52.222-37       EMPLOYMENT REPORTS ON SPECIAL DISABLED VETERANS, VETERANS OF THE         DEC/2001
                       VIETNAM ERA & OTHER ELIGIBLE VETERANS
I-20   52.223-6        DRUG-FREE WORKPLACE                                                      MAR/2001
I-21   52.223-14       TOXIC CHEMICAL RELEASE REPORTING                                         OCT/1996
I-22   52.225-10       NOTICE OF BUY AMERICAN ACT/BALANCE OF PAYMENTS PROGRAM                   FEB/2000
                       REQUIREMENT--CONSTRUCTION MATERIALS
I-23   52.225-13       RESTRICTIONS ON CERTAIN FOREIGN PURCHASES                                JUL/2000
I-24   52.227-2        NOTICE AND ASSISTANCE REGARDING PATENT AND COPYRIGHT INFRINGEMENT        AUG/1996
I-25   52.227-03       PATENT INDEMNITY                                                         APR/1984
I-26   52.227-09       REFUND OF ROYALTIES                                                      APR/1984
I-27   52.227-11       PATENT RIGHTS - RETENTION BY THE CONTRACTOR  (SHORT FORM)                JUN/1997
I-28   52.229-4        FEDERAL, STATE, AND LOCAL TAXES (NON-COMPETITIVE CONTRACT)               JAN/1991
I-29   52.229-05       TAXES - CONTRACTS PERFORMED IN U.S. POSESSIONS OR PUERTO RICO            APR/1984
I-30   52.230-2        COST ACCOUNTING STANDARDS                                                APR/1998
I-31   52.232-02       PAYMENTS UNDER FIXED-PRICE RESEARCH AND DEVELOPMENT CONTRACTS            APR/1984
I-32   52.232-08       DISCOUNTS FOR PROMPT PAYMENT                                             FEB/2002
I-33   52.232-11       EXTRAS                                                                   APR/1984
I-34   52.232-23  ALT  ASSIGNMENT OF CLAIMS (JAN 1986) AND ALTERNATE I (APR 1904)               JAN/1986
       I
I-35   52.232-25       PROMPT PAYMENT                                                           MAY/2001
I-36   52.232-33       PAYMENT BY ELECTRONIC FUNDS TRANSFER - CENTRAL CONTRACTOR                MAY/1999
                       REGISTRATION
I-37   52.233-1        DISPUTES                                                                 DEC/1999
I-38   52.233-3        PROTEST AFTER AWARD                                                      AUG/1996
I-39   52.242-13       BANKRUPTCY                                                               JUL/1995
I-40   52.243-01       CHANGES - FIXED-PRICE (AUG 1987) AND ALTERNATIVE V (APR 1984)            AUG/1987
I-41   52.244-5        COMPETITION IN SUBCONTRACTING                                            DEC/1996
I-42   52.248-25       LIMITATION OF LIABILITY                                                  FEB/1997
I-43   52.249-01       TERMINATION FOR CONVENIENCE OF THE GOVERNMENT (FIXED-PRICE)              APR/1984
                       (SHORT FORM)
I-44   52.249-02       TERMINATION FOR CONVENIENCE OF THE GOVERNMENT (FIXED-PRICE)              SEP/1996
I-45   52.249-04       TERMINATION FOR CONVENIENCE OF THE GOVERNMENT (SERVICES) (SHORT FORM)    APR/1984
I-46   52.249-09       DEFAULT (FIXED-PRICE RESEARCH AND DEVELOPMENT)                           APR/1984
I-47   52.253-1        COMPUTER GENERATED FORMS                                                 JAN/1991
I-48   252.203-7001    PROHIBITION ON PERSONS CONVICTED OF FRAUD OR OTHER DEFENSE-CONRACT-      MAR/1999
                       RELATED FELONIES
I-49   252.204-7000    DISCLOSURE OF INFORMATION                                                DEC/1991
I-50   252.200-7000    ACQUISITION FROM SUBCONTRACTORS SUBJECT TO ON-SITE INSPECTION UNDER      NOV/1995
                       THE INTERMEDIATE-RANGE NUCLEAR FORCES (INF) TREATY
I-51   252.225-7009    DUTY-FREE ENTRY--QUALIFYING COUNTRY SUPPLIES (END PRODUCTS AND           AUG/2000

<PAGE>
--------------------------------------------------------------------------------
                         Reference No. of Document Being Continued
    CONTINUATION SHEET                                             Page 20 of 21
                          PIIN/SIIN DAAB07-02-C-P006     MOD/AMD
--------------------------------------------------------------------------------
NAME OF OFFEROR or CONTRACTOR:  HI ENERGY MICRODEVICES, INC.
--------------------------------------------------------------------------------

      Regulatory Cite                                   Title                                     Date
      ---------------  -----------------------------------------------------------------------  --------
                       COMPONENTS)
I-52   252.225-7012    PREFERENCE FOR CERTAIN DOMESTIC COMMODITIES                              AUG/2000
I-53   252.225-7025    RESTRICTION ON ACQUISITION OF FORGINGS                                   JUN/1997
I-54   252.225-7031    SECONDARY ARAB BOYCOTT OF ISRAEL                                         JUN/1992
I-55   252.227-7018    RIGHTS IN NONCOMMERCIAL TECHNICAL DATA AND COMPUTER SOFTWARE--SMALL      JUN/1995
                       BUSINESS INNOVATIVE RESEARCH (SBIR) PROGRAM (JUN 1995) AND ALTERNATE
                       I (JUN 1995)
I-56   252.227-7027    DEFERRED ORDERING OF TECHNICAL DATA OR COMPUTER SOFTWARE                 APR/1988
I-57   252.227-7030    TECHNICAL DATA--WITHOLDING OF PAYMENT                                    MAR/2000
I-58   252.227-7036    DECLARATION OF TECHNICAL DATA CONFORMITY                                 JAN/1997
I-59   252.227-7037    VALIDATION OF RESTRICTIVE MARKINGS ON TECHNICAL DATA                     SEP/1999
I-60   252.227-7039    PATENTS - REPORTING OF SUBJECT INVENTIONS                                APR/1990
I-61   252.231-7000    SUPPLEMENTAL COST PRINCIPLES                                             DEC/1991
I-62   252.243-7001    PRICING OF CONTRACT MODIFICATIONS                                        DEC/1991
I-63   252.243-7002    CERTIFICATION OF REQUESTS FOR EQUITABLE ADJUSTMENT                       MAR/1998
I-64   252-246-7000    MATERIAL INSPECTION AND RECEIVING REPORT                                 DEC/1991

I-65   52.227-03       PATENT INDEMNITY (ALTERNATE II)                                          FEB/2001
</TABLE>

The following paragraph (C) is added to the clause FAR 52.227-03 (APR 84), which
is  incorporated  by  reference:

     (c)  This patent indemnification shall cover the following items.

This patent indemnification shall be applicable to any patent claims or suits
against the Government arising out of any activity occurring pursuant to this
contract regarding the making, use, or sale of any items, or materials; or the
practicing of any processes; which, in either case, have been sold or offered
for sale by the contractor or its subcontractors hereunder to the public, in the
commercial open market, and to such items, materials, or processes with
relativity minor modifications thereto.

    I-66    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
    CONTINUATION SHEET                                             Page 21 of 21
                          PIIN/SIIN DAAB07-02-C-P006     MOD/AMD
--------------------------------------------------------------------------------
NAME OF OFFEROR or CONTRACTOR:  HI ENERGY MICRODEVICES, INC.
--------------------------------------------------------------------------------

SECTION  J  -  LIST  OF  ATTACHMENTS

<TABLE>
<CAPTION>
List of                                                                                   Number
Addenda                                   Title                                Date      of Pages  Transmitted By
--------------  ----------------------------------------------------------  -----------  --------  --------------
<S>             <C>                                                         <C>          <C>       <C>
Exhibit A       CONTRACT DATA REQUIREMENTS LIST (CDRL), DD FORM 1423, DATA  28-NOV-2001
                ITEM DESCRIPTION, A001

Exhibit B       CONTRACT DATA REQUIREMENTS LIST (CDRL), DD FORM 1423, DATA  28-NOV-2001
                ITEM DESCRIPTION, B001

Attachment 001  STATEMENT OF WORK ENTITLED: *HIENERGY MICRODEVICES FOR
                SUPERSENSOR SBIR PHASE I *
</TABLE>

<PAGE>
                             PADDS DISTRIBUTION LIST
                                                                PCN: P10CC99114R
                                                                        PAGE:  1
                                                        PRINT DATE:  12-FEB-2002
PIIN  DAAB07-02-C-P006                                                   MOD NO:
SUBMITTED  BY  P3BEU                                   BUYER NAME: ANITA FISCHER
DOLLAR  VALUE  $  70,000.00                                   DD350 INCLUDED [X]

<TABLE>
<CAPTION>
                                         NUMBER  DATE                                            NUMBER  DATE
                                         COPIES  STAMP                                           COPIES  STAMP
<S>                                      <C>     <C>    <C>                                      <C>     <C>
Office of PCO (Original Contract/Mod)       1           Procuring Element AMSEL-ACCC-RT-E           1

              Contractor                    1           Requiring Element ______ (Contract/Mod)     1
       Dup/Orig Contract/Mod                1
HI ENERGY MICRODEVICES, INC.                            DCMC SANTA ANA
6000 UNIVERSITY STATION                                 34 Civic Center Plaza
IRVINE, CA 92616-6000                                   P O BOX C-12700
                                                        SANTA ANA, CA 92712-2700

               Paying Office                            Contract Admin ADD Point                    1
                Contract/Mod                1           Contract/Mod                                1
DFAS - COLUMBUS CENTER                                  DFC/EL SEGUNDO
WEST ENTITLEMENT OPERATIONS                             P.O. BOX 182351
P.O. BOX 182381                                         COLUMBUS, OH 43218-2351
COLUMBUS, OH 43218-2191

             SBA Office
            Contract/Mod
No SBA Office
</TABLE>

<PAGE>EXHIBIT 10.5

                              Employment Agreement

Agreement  made this 6th day of March 2002, between HiEnergy Microdevices, Inc.,
a  Delaware  Corporation  (the  "Company"); and Bogdan C. Maglich, an individual
("Maglich").
                                   WITNESSETH

IN  CONSIDERATION of the mutual covenants contained herein, the parties agree as
follows:

     1.   EMPLOYMENT. The Company hereby agrees to employ Maglich, during the
          -----------
          term specified in Paragraph 2, and Maglich agrees to accept such
          employment, all subject to the terms and conditions hereinafter set
          forth in this Agreement.

     2.   TERM. Subject to the terms and conditions of this Agreement, Maglich's
          -----
          employment by the Company shall be for a term commencing on the date
          hereof and ending on December 31, 2006, unless sooner terminated as
          hereinafter provided.

     3.   DUTIES AND RESPONSIBILITIES.
          ----------------------------

                    (a)  During the term, Maglich shall serve as Chief
                         Scientific Officer and Chairman of the Company and
                         shall devote the stated time and attention to the
                         business of the Company. The business of the Company,
                         for purposes of this Agreement, shall include (i) the
                         detection of the substances of which objects are
                         comprised and the development, production, sale and
                         promotion of devices and technologies to effect such
                         detection, and (ii) such other endeavors as to which
                         Maglich and the Board shall mutually agree.
                    (b)  Subject to the supervision of the Board of Directors,
                         Maglich, as Chief Scientific Officer of the Company,
                         will be responsible for the determination of the
                         Company's research and development program; its
                         research and development associations and consortiums;
                         its patent policy; the selection, hiring, and/or firing
                         of its scientific, engineering and technical personnel
                         and of any Principal Investigator or Co-principal
                         Investigator on research and development contracts of
                         the Company and of their clerical assistants, as well
                         as their respective remuneration and budgeting
                         priorities.
                    (c)  Subject to such requirements as shall be imposed by law
                         or governmental regulation, Maglich, as Chief
                         Scientific Officer, shall be responsible for
                         determining what technical information may be publicly
                         disclosed by any officer or employee of the Company.
                    (d)  As Chairman, Maglich agrees to perform, and shall
                         perform, the functions of the Chairman as set forth in
                         the By-Laws of the Company; shall be one of two
                         signatories on all checks and drafts of the Company in
                         excess of $1000; and, subject to review

                                                                               1
<PAGE>
                         by the Board of Directors, shall be the officer of the
                         Company responsible for submitting budgetary
                         recommendations to the Board.
                    (e)  It is recognized by the Company that Maglich has
                         heretofore been engaged, and in the future may be
                         engaged, in other endeavors, including, without
                         limitation, those relating to nuclear fusion energy,
                         satellite-borne nuclear power, and anti-missile
                         defense, as well as scientific education, including,
                         without limitation, scientific publications and
                         documentary films. It is recognized by the Company that
                         such activities are indirectly beneficial to its
                         reputation, standing and governmental and business
                         relations. It is further recognized that, provided the
                         company does not furnish its personnel, equipment,
                         facilities or funding for such other endeavors and that
                         the work conducted on such other endeavors does not
                         interfere with the services and time on the job
                         provided to the Company by Maglich, any patents or
                         other intellectual property or other benefits derived
                         from such other endeavors are the sole property of
                         Maglich and that the Company shall neither have or
                         claim any interest therein.
                         A list of Maglich's other endeavors, as discussed
                         above, shall be maintained mutually by the Company and
                         Maglich. All other work conducted by Maglich during his
                         employed time, or using the Company's personnel,
                         facilities or funding, and which is not so listed, will
                         be work for hire to the Company by Maglich.
                    (f)  Maglich shall devote not less than 35 hours per week to
                         the business of the Company, it being understood that
                         he may give such time and attention to other endeavors
                         as does not materially detract from his services for,
                         and attention to, the business of the Company.
                    (g)  It is contemplated that, for the continuance of this
                         Agreement, Maglich will be employed as Chief Scientific
                         Officer and Chairman of the Company. In the event
                         Maglich is not so elected and not so continued in any
                         or all of such posts, for any reason other than
                         termination for cause (as defined below), such failure
                         shall constitute a breach of this Agreement by the
                         Company and Maglich shall have the right to terminate
                         his employment hereunder forthwith by written notice of
                         such intention to the Company and the Company will be
                         obligated to make the severance payments set forth in
                         Paragraph 11 of this Agreement and to satisfy all other
                         obligations set forth in Paragraph 10.

     4.   COMPENSATION. In consideration of the services to be rendered by
          -------------
          Maglich hereunder, the Company agrees to pay Maglich, and he agrees to
          accept, the following:

                    (a)  BASE SALARY. For the period commencing January 1, 2002,
                         ------------
                         and ending December 31, 2002, the Company shall pay
                         Maglich at the annual

                                                                               2
<PAGE>
                         rate of $125,000 annually, payable in cash monthly. For
                         the period January 1, 2003, through December 31, 2006,
                         the Company shall pay Maglich as follows:

                         (i)  For the period January 1, 2003, through December
                              31, 2003, $137,500 annually, payable in cash
                              monthly;
                         (ii) For the period January 1, 2004, through December
                              31, 2004, $151,250 annually, payable in cash
                              monthly;
                        (iii) For the period January 1, 2005, through December
                              31, 2005, $166, 375 annually, payable in cash
                              monthly; and
                         (iv) For the period January 1, 2006, through December
                              31, 2006, $183,012 annually, payable in cash
                              monthly.
                         (v)  In the event that Maglich, with the approval of
                              the Company, shall work less than the time
                              required of him under Paragraph 3(c), his base
                              salary shall decrease proportionally.

                    (b)  SIGNING BONUS.
                         --------------
                         In consideration of Maglich executing and delivering
                         this Agreement, the Company has agreed to pay Maglich a
                         signing bonus by issuing to him its promissory note in
                         the face amount of $100,000 in the form of Exhibit A
                         hereto, payable (i) $50,000 upon receipt by the Company
                         of One Million Dollars or more from any source, and
                         (ii) $50,000 upon receipt by the Company of in excess
                         of $500,000 from its sales or operations (including
                         grants not directed for equipment) or receipt by the
                         Company of a further cash infusion of One Million
                         Dollars or more.

                    (c)  ANNUAL BONUS.
                         -------------
                         (i)At the beginning of each fiscal year, the Board of
                         Directors of the Company shall establish a bonus plan
                         based upon Company performance goals. At the end of the
                         fiscal year, officers of the Company, including
                         Maglich, shall receive a bonus based upon performance
                         against the established plan.
                         (ii) In no event shall Maglich's bonus be less than 20%
                         of the total amount of bonuses paid to officers of the
                         Company pursuant to the bonus plan referred to in "(i)"
                         above.
                         (iii) In the event the Company's gross pretax profit in
                         any fiscal year shall exceed $.20 per share, then
                         Maglich's bonus in that year shall not be less than
                         $50,000.

                    (d)  STOCK OPTIONS.
                         -------------
                         (i) The Company represents, warrants, and confirms to
                         Maglich its agreement in 1998 to then issue to him
                         options entitling him to purchase 111,040 shares of the
                         Common Stock of the Company at an exercise price of $3
                         per share, such options to be exercisable at any time
                         and from time to time within the period ending November
                         30, 2008. The Company represents

                                                                               3
<PAGE>
                         and warrants that it will take all corporate action
                         necessary or desirable to effect the valid issuance of
                         all such options to Maglich and the delivery of
                         certificates therefor to Maglich no later than March
                         30, 2002; and
                         (ii) The Company shall grant and issue to Maglich
                         annually during the term hereof five-year stock options
                         at a rate of not less than one (1%) per annum of the
                         Company's stock issued and outstanding at the end of
                         the year, such options to have an exercise price of the
                         most recent arms length sale, or if publicly traded,
                         the average price for the preceding thirty days. In no
                         event shall Maglich receive, in the aggregate, in any
                         one year less than 10% of the total number of options
                         granted by the Company for services in that year.

     5.   PENSION AND FRINGE BENEFITS.
          ----------------------------

                    (a)  Maglich shall be entitled to participate in any
                         employee benefit plans generally available to senior
                         officers and/or key employees of the Company, including
                         medical, disability, pension, non-qualified deferred
                         compensation plans, the programs for the allowance for
                         or the reimbursement of automobile expenses, and any
                         other plans of general application to senior officers
                         and/or key employees of the Company on the date hereof
                         and such plans and programs adopted hereafter for the
                         benefit of senior officers and/or key employees of the
                         Company.
                    (b)  As Maglich is covered by Medicare, the Company shall
                         pay his supplemental Blue Cross, TIAA Long-Term Care
                         insurance, medical insurance for his children under
                         eighteen (18) years of age, and dental insurance for
                         himself and his children, and not less than $1000 per
                         month into his TIAA annuity pension fund until August
                         31, 2003.
                    (c)  The Company will provide Maglich with a Lincoln,
                         Cadillac, or equivalent U.S. brand automobile of his
                         choosing for his business and personal use and will pay
                         for all related expenses thereof, including, without
                         limitation, the costs of registration, fuel, repairs,
                         and insurance.
                    (d)  Maglich shall be entitled to take time off for vacation
                         or illness in accordance with the Company's policy for
                         senior executives and/or key employees and to receive
                         all other fringe benefits as from time to time made
                         generally available to senior executives and/or key
                         employees of the Company.
                    (d)  The Company shall reimburse Maglich for reasonable and
                         necessary personal attorneys' fees, costs and expenses
                         incurred in connection with matters relating to the
                         affairs of the Company, excluding any disputes with the
                         Company itself. Such reimbursement shall not exceed
                         $20,000 in any one year, except as may be necessary to
                         protect the Company from actual or

                                                                               4
<PAGE>
                         claimed liability to others or as shall be otherwise
                         agreed by the Company or provided for in Paragraph 12
                         hereof. Nothing contained herein shall limit the Board
                         of Directors from providing defense costs to all
                         officers and directors of the Company, including
                         Maglich.

     6.   REIMBURSEMENT. The Company shall reimburse Maglich for all proper
          --------------
          expenses, including, without limitation, travel and entertainment
          expenses, incurred by him in the performance of his duties hereunder
          in accordance with the Company's policies and procedures in effect
          from time to time.

     7.   OFFICE AND LOCATION. The Company shall provide Maglich, at the
          --------------------
          Company's sole expense, with an executive office at its headquarters
          commensurate with his positions as Chief Scientific Officer and
          Chairman within the facility then occupied by the Company.

     8.   EXECUTIVE SECRETARY. The Company shall provide Maglich, at the
          --------------------
          Company's sole expense, with the services on a full-time basis of an
          executive secretary of his choosing. Said executive secretary shall
          perform those services for Maglich that are regularly performed for
          the Chairman of the Board of a public company and shall also assist
          Maglich in his positions as Chief Scientific Officer of the Company. A
          salary customary in the area in which the Company's offices are
          located shall be paid by the Company to Dr. Maglich's executive
          secretary.

     9.   INSURANCE. The Company shall, at its sole expense, provide Maglich
          ----------
          with the following insurance:

                    (a)  Life Insurance. The Company shall provide Maglich with,
                         and pay up to $1,000 in premium per month for two key
                         man life insurance policies. The owner and beneficiary
                         of one policy shall be the Company. The owner of the
                         other ("Maglich Policy") shall be Maglich and/or the
                         beneficiary or beneficiaries designated by him. Every
                         time the Company increases its insurance on Maglich's
                         life the Maglich Policy shall increase at the Company's
                         expense by an identical amount.

                    (b)  Disability Insurance. The Company shall pay the premium
                         on the disability insurance policy presently maintained
                         by Maglich and any renewals thereof provided the
                         premium shall not exceed $500 per month.

     10.  TERMINATION.
          ------------

                    (a)  Termination for Cause. The Company may terminate
                         Maglich's employment at any time upon Maglich's gross
                         negligence or willful malfeasance in the material
                         performance of his duties and responsibilities to the
                         Company under Paragraph 3 of this Agreement. Such
                         discharge shall be effected by notice (the

                                                                               5
<PAGE>
                         "Discharge Notice") to Maglich which shall specify the
                         reasons for Maglich's discharge and effective date
                         thereof. In each instance, such termination shall not
                         be effective if the gross negligence or willful
                         malfeasance specified in the Discharge Notice is cured
                         by Maglich within ten (10) days following the date of
                         receipt by Maglich of the Discharge Notice.

                    (b)  TERMINATION FOR DISABILITY. In the event of disability
                         --------------------------
                         of Maglich rendering him unable to perform his services
                         hereunder for a period of one hundred eighty (180)
                         consecutive days, the Company shall have the right to
                         terminate this Agreement upon giving not less than
                         thirty (30) days' notice ("Termination Notice") of its
                         intention to do so. If Maglich shall have resumed his
                         duties hereunder within such a thirty (30) day period
                         and shall have continuously performed his services for
                         at least thirty (30) consecutive days thereafter, the
                         Termination Notice shall be deemed of no force and
                         effect and this Agreement shall thereupon continue in
                         full force as though such notice of termination had not
                         been given.

                    (c)  TERMINATION BY MAGLICH. Maglich may terminate this
                         -----------------------
                         Agreement at any time by giving not less than three (3)
                         months' notice of his intention to terminate, in which
                         case all Company benefits shall be terminated "in due
                         course" as of the effective date of termination. Any
                         notes and earned stock options of Maglich shall
                         immediately vest and be paid as agreed.

     11. SEVERANCE PAYMENTS. If this agreement is terminated, the Company shall
         -------------------
     pay Maglich, on the termination date, an amount of money equal to the
     aggregate unpaid balance of the minimum annual base salaries provided for
     in Paragraph 4(a) hereof through a period of two (2) years after the
     termination date. Additionally, the Company shall continue to pay Maglich,
     for said two year period, all of the benefits provided for in Paragraph
     5(a) and (b) above and, thereafter, all premiums associated with the
     continuation of Maglich's insurance under COBRA for the period that COBRA
     shall be available to Maglich. Upon termination, all of Maglich's options
     respecting shares of the capital stock of the Company shall forthwith vest
     in Maglich and become immediately exercisable.

          12. COMPROMISE OF UNPAID CONTRACTUAL OBLIGATIONS TO MAGLICH. Maglich
              --------------------------------------------------------
          and the Company have certain differences in their understanding of the
          existence and magnitude of the Company's obligations to Maglich under
          an Employment Agreement initially entered into between Maglich and
          Advanced Physics Corporation on the 31st day of December 1993 and
          understood by Maglich to have been adopted and approved by the Company
          on August 23, 1995. If Maglich is correct, the Company's current
          obligations to Maglich under the aforesaid Employment Agreement would
          exceed $4,000,000. Maglich and the Company have agreed that Maglich
          will cancel all obligations or alleged obligations of the Company to
          Maglich respecting the aforesaid Employment Agreement in exchange for
          indemnification of Maglich by the Company against any personal tax
          liabilities arising from the issuance to

                                                                               6
<PAGE>
          Maglich of securities of the Company, up to a total possible
          indemnification payment of Seventy-five Thousand dollars ($75,000).
          Accordingly, upon the release by Maglich of the Company from his
          claims under the aforesaid Employment Agreement, the Company agrees to
          indemnify and hold harmless Maglich from and against any and all
          personal tax liability or liabilities or alleged tax liability or
          liabilities of any kind or description, and against all attorney's
          fees, costs and expenses of counsel of Maglich's selection with
          respect to such tax liabilities or alleged tax liabilities, to the
          fullest extent permitted by law and subject to the payment of no more
          than $75,000. It is understood by the Company that it is a material
          condition of Dr. Maglich's entering into this Employment Agreement
          with the Company that he have no tax liability whatsoever respecting
          the issuance by the Company of securities to him, and it is the
          intention of the Company that to the limit of $75,000, it bear any and
          all such liability in full. The parties will execute and deliver such
          other and further documents as shall be necessary or advisable to
          carry out the transactions contemplated by this Paragraph 12. If the
          ultimate determination of tax liability by Maglich is in excess of
          $75,000, the Company will advance to Maglich an additional amount
          equal to the excess, up to an additional $75,000, as an advance
          against salary, without the collection of interest thereon.

     13. EXCHANGE BY MAGLICH OF SHARES OF CLASS B COMMON STOCK FOR SHARES OF
         -------------------------------------------------------------------
     CLASS A COMMON STOCK OF THE COMPANY. Maglich is the owner of record of 100%
     ------------------------------------
     of the authorized and issued Class B shares of the Company. The Company has
     determined that it is in the best interests of the Company and its
     shareholders for it to exchange Class A shares of the Company for all of
     Maglich's Class B shares. Maglich agrees that he will accept 100,000 shares
     of the Class A common stock of the Company in exchange for all of his Class
     B shares, and the Company agrees that such an exchange is fair and
     reasonable and agrees to such exchange. The Company represents and warrants
     to Maglich that its Board of Directors has or will take all necessary or
     appropriate action to vest in Maglich full and unfettered title to such
     100,000 shares of Class A Common Stock, free and clear of any liens or
     encumbrances of any kind whatsoever, upon Maglich's delivery to the Company
     of his Class B Common Stock in exchange for said 100,000 shares of Class A
     Common Stock.

14.  REPRESENTATIONS AND WARRANTIES OF THE COMPANY RESPECTING CERTAIN SECURITIES
     ---------------------------------------------------------------------------
     ISSUED TO MAGLICH AND ASSOCIATES AND RATIFICATION OF TRANSACTIONS RELATED
     -------------------------------------------------------------------------
     THERETO.
     --------

          (a)  The Company hereby represents and warrants to Maglich that the
               securities set forth below have been duly and validly issued by
               the Company and registered by the Company in the names of the
               persons listed below and are outstanding, fully paid and
               non-assessable securities of the Company:

               (i) Advanced Projects Group, Inc.         58,000 share of Class A
               (majority  owned  by  Bogdan  Maglich     Common Stock
               and  Maglich  Family  Holdings,  Inc.)

                                                                               7
<PAGE>
               (ii)  Bogdan C. Maglich                   76,000 shares of
                                                         Class A Common Stock
                                                         and all shares of Class
                                                         B Common Stock
                                                         (converted by Maglich
                                                         into 100,000 shares of
                                                         Class A Common Stock
                                                         pursuant to Paragraph
                                                         13 hereof)

               (iii)  Maglich  Family  Holdings, Inc.    166,049 shares of
                                                         Class  A  Common
                                                         Stock

          (b)  The Company hereby ratifies and reaffirms all transactions which
               resulted in the issuance of the securities listed in "(a)" above
               and represents and warrants that its Board of Directors has or
               will take all action necessary or appropriate to vest in the
               parties listed above full and unfettered title to all of said
               shares as stated above.

     15.  NON-DISCLOSURE AND COVENANT NOT TO COMPETEE
          -------------------------------------------

          (a) NON-DISCLOSURE. During the term of this Agreement and from and
              ---------------
          after the termination of this Agreement, Maglich shall not, except as
          required by law or to perform his duties under this Agreement,
          divulge, disclose or communicate to any person, firm, or corporation,
          any confidential information. The term "confidential information"
          includes, without limitation, information about the business of the
          Company (or any division, subsidiary or affiliate of the Company)
          including, but not limited to, methods of operation, pricing
          information and customer lists, but excluding such information that
          was in the public domain at the time it was acquired by Maglich or
          that comes into the public domain other than through disclosure by
          Maglich. If confidential information is contained in any document or
          writing or is fixed in any other tangible form, magnetically,
          electronically, or otherwise, and if such confidential information is
          in Maglich's possession or under his control, he shall return such
          information and all copies thereof to the Company upon his
          termination. Maglich shall not directly or indirectly, take, copy, or
          transfer, in any manner whatsoever, any of the business records of the
          Company (or any division, subsidiary or affiliate of the Company).

          (b)  NON-COMPETE. During the term of Maglich's employment hereunder,
               -----------
               and for a period of five (5) years following the date of
               termination of Maglich's employment hereunder, Maglich shall not,
               directly or indirectly, engage (whether for compensation or
               without compensation) as an individual proprietor, partner,
               stockholder, officer, employee, director, consultant, joint
               venturer, lender, or in any other capacity whatsoever (otherwise
               than as a holder of no more than 1% of the total outstanding
               stock of a publicly held company) in any business activity or
               business activities that compete with the remote-non-intrusive
               detection business of the Company, it being understood and agreed
               by the Company that "other endeavors" of Maglich referred to and
               listed in Paragraph

                                                                               8
<PAGE>
               3(a) and 3(b) hereof are not and never shall be considered as
               competing activities to those of the Company. During the term of
               Maglich's employment hereunder, and for a period of the greater
               of one year or any time during which Maglich is receiving
               severance payments pursuant to Paragraph 11 hereof, Maglich shall
               not, directly, or indirectly: either for himself or for any other
               person, firm or corporation, divert or take away or attempt to
               divert or take away any person, firm or corporation who was or is
               a customer of the Company during the term of this Agreement, or
               (b) induce or influence any person who is engaged by the Company
               as an employee, agent or otherwise, to terminate his or her
               engagement or to engage or otherwise participate in a business
               activity directly or indirectly competitive with the Company.
          (c)  SCOPE OF RESTRICTIONS. The restrictions set forth in this
               ----------------------
               Paragraph 15 are considered by the parties to be reasonable.
               However, if any such restriction is found to be unenforceable
               because it extends for too long a period of time or over too
               great a range of activities or in too broad a geographic area, it
               shall be interpreted to extend only over the maximum period of
               time, range of activities or geographic area as to what may be
               enforceable.
          (d)  REMEDIES. In the event of a breach or a threatened breach of this
               --------
               Paragraph 15 that is not cured by Maglich after receipt of ten
               day's written notice from the Company, the Company shall be
               entitled to an injunction restraining Maglich from committing or
               continuing such breach, as well as to any and all other legal and
               equitable remedies permitted by law.

     16.  MISCELLANEOUS.
          --------------

          (a)  ENFORCEABILITY. The failure of any party at any time to require
               ---------------
               performance by another party of any provision hereunder shall in
               no way affect the right of that party thereafter to enforce the
               same, nor shall it affect any other party's right to enforce the
               same, or to enforce any of the other provisions of this
               Agreement; nor shall the waiver by any party of the breach of any
               provision hereof be taken or held to be a waiver of any
               subsequent breach of such provision or as a waiver of the
               provision itself.

          (b)  BINDING EFFECT. This Agreement shall be binding upon the Company,
               --------------
               its successors and assigns and Maglich, his heirs, and personal
               representatives. This Agreement may not be assigned by either
               party without the prior written consent of the other party being
               first obtained.

          (c)  MODIFICATIONS. This Agreement may not be orally cancelled,
               --------------
               changed, modified or amended, and no cancellation, change,
               codification or amendment shall be effective or binding, unless
               in writing and signed by the parties to this Agreement.

          (d)  SEVERABILITY; SURVIVAL. In the event any provision or portion of
               ----------------------
               this Agreement is determined to be invalid or unenforceable for
               any reason, in whole or in part, the remaining provisions of this
               Agreement shall nevertheless be binding upon the parties

                                                                               9
<PAGE>
               with the same effect as through the invalid or unenforceable part
               had been severed and deleted. The respective rights and
               obligations of the parties thereunder shall survive the
               termination of the executive's employment to the extent provided
               elsewhere herein and to the extent necessary to the intended
               preservation of such rights and obligations.

          (e)  NOTICES. Any notice, request, instruction or other document to be
               -------
               given hereunder by any party to another party shall be in writing
               and shall be deemed effective (i) upon personal delivery, if
               delivered by hand against receipt, (ii) mailed postage prepaid,
               by United States certified or registered mail, return receipt
               requested, (iii) upon being sent by facsimile transmission (if
               receipt is electronically confirmed) and, in each case, addressed
               as follows:

                              If to the Company:

                              HiEnergy Microdevices, Inc.
                              10  Mauchly  Drive
                              Irvine,  CA  92618

                              With  a  copy  to:

                              Blackwell  Sanders  Pepper  Martin
                              2300  Main  Street,  Suite  1000
                              Kansas  City,  MO  62108
                              Attention:  Steve  Carman,  Esq.

                              If  to  Maglich:

                              Bogdan  C.  Maglich
                              559  Vista  Flora
                              Newport  Beach,  CA  92660

                              With  a  copy  to:
                              James  Monroe  Marx,  Esq.
                              590  Madison  Avenue,  23rd  Floor
                              New  York,  New  York  10022

Any  party  may  change  the  address  to which notices are to be sent by giving
notice  of  such  change  of  address  to  the  other party in the manner herein
provided  for  giving  notice.

          (f)  APPLICABLE LAW. This Agreement shall be governed by, and
               --------------
               construed in accordance with, the laws of the State of
               California, without application of conflict of law provisions
               applicable herein.

          (g)  ENTIRE AGREEMENT. This Agreement represents the entire agreement
               ----------------
               between the Company and Maglich with respect to the subject
               matter hereof, and all prior agreements, plans and arrangements

                                                                              10
<PAGE>
               relating to the employment of Maglich by the Company are
               nullified and superceded hereby.

          (h)  HEADINGS. The headings contained in this Agreement are for
               --------
               reference purposes only, and shall not affect the meaning or
               interpretation of this Agreement

          (i)  COUNTERPARTS. This Agreement may be executed in one or more
               ------------
               counterparts, all of which shall constitute one and the same
               agreement, and each of which shall be deemed an original.

     IN WITNESS WHEREOF, the parties have executed this Agreement as of the day
     and year first above written.

                             HiEnergy Microdevices, Inc., a Delaware Corporation

                             By:   /s/  Gregory Gilbert
                                ------------------------------------
                                  Gregory  Gilbert
                                  President and Duly Authorized Signatory

                                   /s/  B.  C.  Maglich
                                ------------------------------------
                                Bogdan  C.  Maglich,  Individually

                                                                              11
<PAGE>

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