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Exhibit 10.1  

 
  FIRST AMENDMENT TO
  STANDARD INDUSTRIAL/COMMERCIAL SINGLE-TENANT LEASE—NET    
  

        THIS FIRST AMENDMENT TO STANDARD INDUSTRIAL/COMMERCIAL SINGLE-TENANT LEASE—NET ("First Amendment") is made and entered into as of October 23,
2002 by and between RESEARCH VENTURE, LLC, a California limited liability company ("Lessor") and SSP
SOLUTIONS, INC., a Delaware corporation formerly known as "Litronic Inc." ("Lessee"), with reference to the following: 

RECITALS  

	A.
	Lessor
and Lessee entered into that certain Standard Industrial/Commercial Single Tenant Lease—Net (the "Lease") dated as of February 13, 2001, for the leasing by
Lessee from Lessor of certain real property more particularly described in the Lease and now commonly known as 9012 Research Drive, Irvine, California (the "Premises"). Unless otherwise defined
herein, capitalized terms used in this First Amendment shall have the same meanings as given them in the Lease.

	B.
	The
Commencement Date of the Lease was January 16, 2002, and initial Base Rent was $73,383.00 per month. Lessee took occupancy of the Premises on or before the Commencement
Date.

	C.
	In
connection with a settlement of various claims of Lessor against Lessee arising out of the Lease, Lessor and Lessee now desire to reaffirm the Lease and to modify certain terms and
provisions thereof as expressly set forth in this First Amendment. 

        NOW,
THEREFORE, in consideration of the foregoing Recitals, the agreements hereinafter set forth, and other good and valuable consideration the receipt and sufficiency of which are
hereby acknowledged, Lessor and Lessee hereby agree as follows: 

        1.    The
Lease is reinstated, reaffirmed and restated herein in its entirety as if set forth in full, as a leasing of the Premises by Lessor to Lessee on the terms, provisions
and conditions set forth in the Lease, as modified by this First Amendment. The Parties hereby acknowledge and agree that for all purposes, the Lease shall be deemed to be a legal, valid, binding and
enforceable contract and agreement between them with respect to the leasing of the Premises. 

        2.    Notwithstanding
the reaffirmation of the Lease as set forth in Paragraph 1 hereof, the Lease shall be deemed modified as follows: 

        (a)  Without
the prior written consent of Lessor, which Lessor may withhold in its sole discretion, Lessee shall forego further occupancy of the Premises, and Lessor shall
defer the further payment of Base Rent under the Lease, until December 18, 2002. From and after December 19, 2002, Lessee shall have full and complete occupancy rights of the Premises in
accordance with the Lease, and Lessor shall be entitled to the payment and collection of all Rent under the Lease as modified by this First Amendment. 

        (b)  Notwithstanding
the provisions of Paragraph 1.5 or Paragraph 4.1 of the Lease, for the period commencing as of December 19, 2002 and ending on
December 18, 2004, Base Rent shall be reduced to the amount of $55,000.00 per month. Such Base Rent shall be payable as follows: Lessee shall pay to Lessor each month without offset or
deduction (except for offset or deduction of amounts of Base Rent included in any judgment obtained by Lessor pursuant to the terms of a stipulation for entry of judgment being entered into between
Lessor and Lessee on or about the date of this First Amendment, to the extent such amounts of Base Rent have actually been collected by Lessor pursuant to the judgment) cash in the amount of
$40,000.00, plus either (i) additional cash in the amount of $15,000.00, or (ii) at Lessee's option, an equal amount in shares of the common stock of Lessee, valued at the higher of
(A) $1.30 per share, or (B) the arithmetic mean of the closing sale prices of a share of the common stock of Lessee for the 30-day period ending on the fifth day prior to the
Conversion Date (as defined in that certain Subordinated Convertible Promissory issued on or about the date of this First Amendment by 

 

Lessee in favor of Lessor). For the months of December 2002 and December 2004, such amounts shall be prorated based on a 30-day month. In this regard, Base Rent for
December 2002, shall be payable no later than December 16, 2002. Base Rent for the remainder of the twenty-four month period ending December 18, 2004 shall be due on
the first (1st) day of each calendar month commencing January 1,
2003. Commencing on December 19, 2004, and thereafter for the balance of the Term, Base Rent shall be increased to the amount as set forth in Paragraph 1.5 of the Lease and as increased
pursuant to Paragraph 4.1 of the Lease, payable all in cash each month in the manner set forth in Paragraph 4 of the Lease (with payment for any partial month prorated based on a
30-day month). 

        3.    Lessor
and Lessee acknowledge and agree that (i) Lessee has no further rights under Paragraph 2.2 of the Lease, (ii) Lessee has fully performed its
"due diligence" and investigations under Paragraphs 2.4 and 2.6 of the Lease and reaffirms all of the provisions of and its agreements and waivers under Paragraphs 2.4 and 2.6 of the Lease,
(iii) Lessor has completed the Improvements pursuant to the Work Letter attached to the Lease, Lessee has accepted the Improvements as so completed as to Lessor but reserves its rights under
Paragraph 9 of the Work Letter, and Lessor shall have no further obligations to construct any alterations, additions or improvements to the Premises, and (iv) the contingency set forth
in Paragraph 2.7 of the Lease has been satisfied and is of no further force or effect. 

        4.    Except
as amended and modified by this First Amendment, the terms and provisions of the Lease are hereby ratified and affirmed in all respects by Lessor and Lessee and
are confirmed to be binding and controlling upon the Parties. 

        IN
WITNESS WHEREOF, the Parties have executed this First Amendment as of the date set forth above. 

	"LESSOR"	 	"LESSEE"
	

RESEARCH VENTURE, LLC,

a California limited liability company	
 	

SSP SOLUTIONS, a Delaware corporation

formerly known as "Litronic Inc."
	

By:	

/s/  JACK J. KESSLER      
	
 	

By:	

/s/  THOMAS SCHIFF      

	 	Its:	Managing Member	 	 	Its:	CFO
	 	 	 	 	 	 	 

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FIRST AMENDMENT TO STANDARD INDUSTRIAL/COMMERCIAL SINGLE-TENANT LEASE—NETExhibit 10.2  

THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR UNDER THE SECURITIES ACT OF ANY STATE. THESE SECURITIES MAY NOT BE SOLD OR OFFERED
FOR SALE IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT COVERING THE SECURITIES BEING SOLD UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND SUCH STATE LAWS AS MAY BE APPLICABLE, OR A WRITTEN
OPINION OF COUNSEL TO THE EFFECT THAT SUCH TRANSFER OR SALE MAY BE EFFECTED WITHOUT THE REGISTRATION OF THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND THE APPLICABLE STATE SECURITIES
LAWS.

SUBORDINATED CONVERTIBLE PROMISSORY NOTE  

	Irvine, California	 	October 23, 2002

        FOR VALUE RECEIVED, the undersigned, SSP Solutions, Inc., a Delaware corporation (the "Company"), promises
to pay to Research Venture, LLC, a California limited liability company (the "holder") at the address specified for payment of rent in the Standard
Industrial/Commercial Single-Tenant Lease—Net dated February 13, 2001 ("Original Lease"), as amended by that certain First Amendment
to Standard Industrial/Commercial Single-Tenant Lease—Net of even date herewith (the "First Amendment to Lease", and together with the
Original Lease, the "Amended Lease") (or at such other place as may be designated from time to time), in lawful money of the United States of America
and in immediately available funds, the principal sum of Three Hundred Sixty Thousand Dollars ($360,000), or such lesser principal sum as may be outstanding from time to time under this Subordinated
Convertible Promissory Note (this "Note") at the times provided herein (as defined below). 

1.    Terms. 

        This
Note is executed and delivered by the Company pursuant and subject to that certain Stipulation for Entry of Judgment in Case Nos. 02CC10109 and 02CC10111 entered into between the
Company and the holder on or about the date hereof ("Stipulation") and pursuant and subject to the First Amendment to Lease. The principal balance of
this Note represents the prepayment of the portion of the rent that is payable under the First Amendment to Lease in cash or stock at the option of the Company for the twenty-four month
period ending December 18, 2004. 

2.    Payment of Interest and Principal. 

        Subject
to Section 3 and Section 8 of this Note, the principal balance of
this Note shall be payable in installments as follows: 

        (a)  On
December 16, 2002, Six Thousand Dollars ($6,000) shall be due and payable; 

        (b)  On
the first day of each month commencing on January 1, 2003 and continuing through November 1, 2004, Fifteen Thousand Dollars ($15,000) shall be due and
payable; and 

        (c)  On
December 1, 2004, Nine Thousand Dollars ($9,000) shall be due and payable. 

        This
Note shall not bear interest. The Company may prepay the whole or any part of the outstanding principal sum of this Note without prepayment penalty or premium. At the option of the
Company, any or all of the amounts due hereunder may be paid by the issuance of Common Stock (as defined below) pursuant to the conversion provisions of this Note, except that following the occurrence
of a Change of Control Event (as defined below), the conversion provisions of this Note no longer shall apply. "Common Stock" shall mean the shares of
the Company's common stock that currently are traded on the Nasdaq National Market under the stock symbol "SSPX." "Change of Control Event" shall mean
any of the following events (i) any consolidation or merger of the Company (other than a consolidation or merger made to effect a reincorporation of the Company) with another Person (as defined
below) the result of which is that the holders of Common Stock receive stock, securities or 

 

other property or assets (including cash) of another Person in exchange for their Common Stock; (ii) any sale or conveyance of the properties and assets of the Company as, or substantially as,
an entirety to any Person other than a Person controlling, controlled by or under common control with the Company; or (iii) any going private transaction, the effect of which is that the
Company's Common Stock is no longer publicly traded. 

3.    Cancellation. 

        After
all principal at any time owed on this Note has been paid in full, converted into Common Stock or included as a portion of any judgment entered pursuant to the Stipulation
("Stipulated Judgment"), this Note shall immediately be surrendered to the Company for cancellation. 

4.    Severability. 

        The
illegality or unenforceability of any provision of this Note shall not in any way affect or impair the legality or enforceability of the remaining provisions of this Note. 

5.    Subordination. 

        5.1    Obligations Subordinated to Senior Debt.    Notwithstanding any provision of this Note
to the contrary, the Company covenants and agrees, and the holder of this Note and any subsequent holder of this Note, by accepting this Note, likewise covenants and agrees, that all amounts owing,
whether due or to become due, under this Note (the "Note Obligations") shall be subordinated to the extent set forth in this  Section 5 to the prior
payment of the Senior Debt (as defined below) in full when due, in cash or cash equivalents satisfactory to the holders of
such Senior Debt. This Section 5 shall constitute a continuing offer to and covenant with all persons who become holders of, or continue to hold,
Senior Debt (irrespective of whether such Senior Debt was created or acquired concurrently or after the issuance of this Note). The provisions of this Section 5  are made for the benefit of all
present and future holders of Senior Debt, if any (and their successors and assigns), and shall be enforceable by them directly against every
holder of this Note. 

        5.2    Priority and Payment Over of Proceeds in Certain Events.    

        (a)  Upon
any payment or distribution of assets of the Company, whether in cash, property, securities or otherwise, in the event of any dissolution, winding up or total or
partial liquidation, reorganization, arrangement, adjustment, protection, relief or composition, or assignment for the benefit of creditors of the Company, whether voluntary or involuntary or in
bankruptcy, insolvency, receivership, reorganization, relief or other proceedings or upon an assignment for the benefit of creditors or any other marshalling of all or part of the assets and
liabilities of the Company (the foregoing events herein collectively referred to as an "Insolvency Event"), all Senior Debt shall first be paid in full,
in cash, or payment provided for in cash equivalents in a manner satisfactory to the holders of Senior Debt, before the holder of this Note or any subsequent holder of this Note shall be entitled to
receive any payment or distribution of assets of the Company for application to any of the Note Obligations. Upon any Insolvency Event, any payment or distribution of assets of the Company, whether in
cash, property, securities or otherwise, to which the holder of this Note or any subsequent holder of this Note would be entitled on account of the Note Obligations, except for the provisions of this  Section 5,
shall be made by the Company or by any receiver, trustee in bankruptcy, liquidating trustee, agent or other person making such payment
or distribution, directly to the holders of the Senior Debt or their representatives for application to the payment or prepayment of all such Senior Debt in full after giving effect to any concurrent
payment or distribution to the holders of such Senior Debt. 

        (b)  If
there has occurred and is continuing a default in (i) the payment of all or any portion of any Senior Debt, or (ii) compliance by the Company with any
covenant under the Senior Debt, unless and until such default shall have been cured or waived, the Company shall not make any payment on or with respect to any Note Obligations or acquire this Note
(or any portion thereof) 

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for cash, property, securities or otherwise and the holder of this Note shall not receive from the Company, directly or indirectly, any payment or distribution on account of the Note Obligations. The
failure to make any payment with respect to the Note Obligations by reason of the provisions of this Section 5.2 shall not be construed as
preventing the occurrence of an Event of Default. 

        (c)  If,
notwithstanding the foregoing provisions prohibiting payments or distributions, any holder hereof receives any payment of, or on account of, any Note Obligations
that were prohibited by this Section 5,
before all Senior Debt shall have been paid in full, then and in such event such payments or distributions shall be received and held in trust for the holders of the Senior Debt and promptly paid over
or delivered to the holders of the Senior Debt remaining unpaid to the extent necessary to pay in full, in cash or cash equivalents satisfactory to the holders of the Senior Debt, such Senior Debt
after giving effect to any concurrent payment or distribution to the holder of such Senior Debt, provided, that any such payment which is, for any reason, not so paid over or delivered shall be held
in trust by such holder for the holders of Senior Debt. 

        5.3    Rights of Holders of Senior Debt Not To Be Impaired, etc.    

        (a)  No
right of any present or future holder of any Senior Debt to enforce the subordination and other terms and conditions provided herein shall at any time in any way be
prejudiced or impaired by any act or failure to act in good faith by any such holder, or by any noncompliance by the Company with the terms and provisions and covenants herein regardless of any
knowledge thereof any such holder may have or otherwise be charged with. 

        (b)  This  Section 5 may not be amended without the written consent of each holder of the Senior Debt, if any, and of
the holder of this Note, and any purported amendment without such consent shall be void. No holder of Senior Debt shall be prejudiced in such holder's right to enforce the subordination and other
terms and conditions of this Note by any act or failure to act by the Company or anyone in custody of their respective assets or property. 

        5.4    Subrogation.    No payment of or distribution of or with respect to the Senior Debt
pursuant to the provisions of this Note shall entitle the holder of this Note to exercise any rights of subrogation in respect thereof until the Senior Debt shall have been paid and satisfied in full.
After the payment of the Senior Debt in full and provided no payments are voidable, the holder of this Note shall be subrogated to the rights of the holder or holders of the Senior Debt to receive
distributions applicable to the Senior Debt to the extent the distributions otherwise payable to the holder of this Note have been applied to the payment of the Senior Debt. 

        5.5    Obligations of the Company Unconditional.    Nothing contained in this Note is intended
to or shall impair, as between the Company and the holder of this Note, the obligation of the Company, which is absolute and unconditional, to pay to the holder of this Note all Note Obligations as
and when the same shall become due and payable in accordance with their terms, or to affect the relative rights of the holders of the Senior Debt, the holder of this Note, any subsequent holder of
this Note and other creditors of the Company (other than the holders of Senior Debt). 

        5.6    Additional Rights of Holders of the Senior Debt.    If the Senior Debt has not been
paid in full, in cash or cash equivalents satisfactory to the holders of the Senior Debt, at the time the Company is subject to an Insolvency Event, the holders of the Senior Debt are hereby
irrevocably authorized, but shall have no obligation, to demand, sue for, collect and receive every payment or distribution received in respect of any such Insolvency Proceeding and give acquittance
therefor. Furthermore, in connection with any
Insolvency Event, the holders of Senior Debt are irrevocably authorized to file a proof of claim for or collect the holder of this Note's claims hereunder first for the benefit of the holders
of Senior Debt to the extent thereof and then for the benefit of holder of this Note (but without creating any duty or liability to the holder of this Note other than to remit to the holder of this
Note distributions, if any, actually received in such proceedings after the Senior Debt has been paid and satisfied in full. 

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        5.7    Senior Debt Changes.    "Senior Debt"
means an amount owing by the Company now or in the future, including principal, interest (including any interest accruing during any bankruptcy proceeding), premium, if any, fees (including, without
limitation, any commitment, agency, facility, structuring, restructuring or other fee), costs, expenses and indemnities, from time to time for indebtedness for borrowed money under notes, debentures
or other evidence of indebtedness issued to, or agreements with, a bank, financial institution, institutional investor, investment fund or other lender for the purpose of obtaining working or
permanent capital for the Company ("Senior Debt"). The holder of this Note hereby waives any and all notice of renewal, extension or accrual of any of
the Senior Debt, present or future, and agrees and consents that without notice to or consent of the holder of this Note: (a) the obligations and liabilities of the Company or any other party
or parties under the Senior Debt may, from time to time, in whole or in part, be renewed, refinanced, replaced, increased, extended, refunded, modified, amended, accelerated, compromised,
supplemented, terminated, decreased, sold, exchanged, waived, or released; (b) the holders of Senior Debt and their representatives may exercise or refrain from exercising any right, remedy or
power granted by any document creating or evidencing the Senior Debt or at law, in equity, or otherwise, with respect to the Senior Debt or in connection with any collateral security or lien (legal or
equitable) held, given or intended to be given therefor (including, without limitation, the right to perfect any lien or security interest created in connection therewith); and (c) any and all
collateral security and/or liens (legal or equitable) at any time, present or future, held, given or intended to be given for the Senior Debt, and any rights or remedies of the holders of Senior Debt
and their representatives in respect thereof, may, from time to time, in whole or in part, be exchanged, sold, surrendered, released, modified, perfected, unperfected, waived or extended by the
holders of Senior Debt and their representatives. 

        5.8    Execution of Subordination Agreement.    The holder of this Note agrees that, upon the
request of any holder of Senior Debt, it shall execute and deliver a subordination agreement for the benefit of such holder of Senior Debt (in form reasonably acceptable to the holder of this Note and
its counsel) reflecting the terms of this Section 5; provided, however that the foregoing shall not require holder of this Note to execute or
deliver any agreement which provides for additional terms of subordination or otherwise adversely modifying (whether by change, addition or deletion) the terms hereof. 

6.    Conversion. 

        6.1    Conversion.    The Company shall have the right to convert any unpaid principal amounts
under this Note into such number of shares of Common Stock as is equal to the number determined by dividing the principal amount of this Note to be converted by the Conversion Rate in effect on the
date upon which the conversion is to be effective (which shall be the date upon which the notice is transmitted to the holder and which is referred to herein as the "Conversion
Date"). Each conversion shall be effected by delivery of written notice to the holder stating the amount of principal desired to be converted, the Conversion Date, and the
Conversion Rate in effect on Conversion Date. 

        6.2    Conversion Procedure in the Event of Conversion.    On the Conversion Date, the portion
of this Note specified in such notice to be converted shall be deemed converted. The Company will thereafter issue and deliver to the holder of this Note a certificate for the number of shares
to which the holder of this Note will be entitled upon such conversion (bearing such legends as are required by applicable state and federal securities laws in the opinion of counsel to the Company)
in the name of the holder, together with a check payable to the holder of this Note for any cash amounts payable as described in Section 6.3.
Upon conversion of this Note, the Company shall take all such actions as are necessary in order to insure that the securities issuable with respect to such conversion will be validly issued, fully
paid and non-assessable. 

        6.3    Fractional Shares.    No fractional shares shall be issued upon conversion of this
Note. In lieu of the Company issuing any fractional shares to the holder of this Note upon the conversion of this Note, the Company shall pay to the holder of this Note an amount in cash equal to the
product 

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obtained by multiplying the Conversion Rate applied to effect such conversion by the fraction of a share not issued pursuant to the previous sentence. 

        6.4    Adjustments to Conversion Rate.    

        For
purposes of this Note, the "Conversion Rate" shall be the greater of the Fixed Conversion Price (as defined below) and the Variable
Conversion Price (as defined below). Initially, the "Fixed Conversion Price" shall be $1.30, and the "Variable Conversion
Price" shall be the arithmetic mean of the closing sale prices of a share of Common Stock for the thirty-day period ending on the fifth day prior to the Conversion
Date. The Conversion Rate shall be adjusted from time to time in accordance with the provisions of this Section 6.4. "Capital Stock" means any
and all shares, rights to purchase, warrants, options, convertible securities, participation or other equivalents of or interests (other than security interests) in (however designed and whether
voting or nonvoting) corporate stock. "Person" means an individual, a limited liability company, a partnership, a joint venture, a corporation, a trust, an unincorporated organization and a government
or any department or agency thereof. 

        (a)  If
the Company (i) declares a dividend, or makes a distribution in shares of Common Stock, on the Common Stock, (ii) subdivides or reclassifies the
outstanding Common Stock into a greater number of shares of Common Stock, (iii) combines the outstanding Common Stock into a smaller number of shares of Common Stock, (iv) pays a
dividend or makes a distribution on the Common Stock in shares
of Capital Stock other than Common Stock or (v) issues by reclassification of the Common Stock shares of Capital Stock, then the Conversion Rate in effect immediately prior thereto shall be
adjusted so that the holder of the Note thereafter surrendered for conversion shall be entitled to receive the number of shares of Common Stock or other Capital Stock that such holder would have owned
or have been entitled to receive after the happening of any of the events described above had the Note been converted immediately prior to the happening of such event. An adjustment made pursuant to
this Section 6.4(a) shall become effective immediately after the record date in the case of a dividend or distribution and shall become effective immediately after the effective date in the
case of subdivision, combination or reclassification. Such adjustment shall be made successively whenever any event referred to above shall occur. If such dividend, distribution, subdivision,
reclassification or combination is not so made, the Conversion Rate then in effect shall be readjusted to the Conversion Rate that would then be in effect if such dividend, distribution, subdivision,
reclassification or combination had not been declared or made, but such readjustment shall not affect the number of shares of Common Stock or other shares of Capital Stock delivered upon any
conversion prior to the date such readjustment is made. In any case in which this Section 6.4 provides that an adjustment shall become effective immediately after a record date for an event,
the Company may defer until the occurrence of such event (i) issuing to the holder of the Note converted after such record date and before the occurrence of such event the additional shares of
Common Stock issuable upon such conversion by reason of the adjustment required by such event over and above the Common Stock issuable upon such conversion before giving effect to such adjustment, and
(ii) paying to such holder any amount in cash in lieu of any fractional share of Common Stock. 

        (b)  If
any reclassification or change of outstanding shares of Common Stock (other than as a result of a subdivision or combination) occurs, then the Company shall provide
that the principal of the Note then outstanding shall be convertible into the kind and amount of shares of stock and other securities receivable upon such reclassification by a holder of the number of
shares of Common Stock issuable upon conversion of the Note immediately prior to such reclassification. Such provisions shall provide for adjustments that shall be as nearly equivalent as may be
practicable to the adjustments provided for in this subsection 6.4(b). The above provisions of this subsection 6.4(b) shall similarly apply to successive reclassifications. 

        (c)  If
after an adjustment the holder of the Note may, upon conversion of the Note, receive shares of two or more classes of Capital Stock, the Company shall determine on a
fair basis the allocation of the adjusted Conversion Rate between the classes of Capital Stock. After such allocation, 

5

 

the Conversion Rate of each class of Capital Stock shall thereafter be subject to adjustment on terms comparable to those applicable to Common Stock set forth in this Section 6.4. 

7.    Event of Default. 

        The
failure of the Company to pay any part of the principal on this Note when due, which failure shall continue after the expiration of all applicable cure periods available under the
Amended Lease with regard to payments required to be made by the Company under the Amended Lease, shall constitute an "Event of Default" hereunder. 

8.    Remedies Upon an Event of Default. 

        If
any Event of Default occurs and the holder is otherwise entitled to file the Stipulated Judgment in accordance with the terms of the Stipulation, then the holder may file the
Stipulated Judgment. If the Stipulated Judgment is filed, then all remaining principal amounts due or to become due under this Note shall be deemed to be satisfied by entry of the Stipulated Judgment,
and the holder shall immediately surrender this Note to the Company for cancellation. 

9.    Amendment. 

        The
provisions of this Note may not be changed, altered or modified except in a writing signed by the Company and the holder of this Note. 

10.  Transfer. 

        This
Note may not be assigned by the holder without prior written consent of the Company. 

11.  Applicable Law. 

        This
instrument and the rights and obligations of all parties hereunder shall be governed by and construed under the laws of the State of California without regard to the conflicts of
law principles of such state. 

12.  Notices. 

        Any
notice, demand, request, waiver or other communication required or permitted to be given under this Note shall be made in the manner set forth in the Amended Lease. 

        IN
WITNESS WHEREOF, the Company has caused this Subordinated Convertible Promissory Note to be signed as of the date first written above. 

	 	 	SSP SOLUTIONS, INC.,

a Delaware corporation
	

 	
 	

By:	
 	

/s/  RICHARD M. DEPEW      
 Richard M. Depew, President
	 	 	 	 	 
	

 	
 	

By:	
 	

/s/  THOMAS SCHIFF      
 Thomas E. Schiff, Chief Financial Officer
	 	 	 	 	 

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