Document:

<PAGE>   1

                                                                   EXHIBIT 10.49

***************************** NOTICE OF GRANT AWARD ****************************
SMALL BUSINESS INNOVATION RESEARCH PROG                   Issue Date: 12/10/1999
Department of Health and Human Services
National Institutes Of Health
NATIONAL HEART, LUNG, AND BLOOD INSTITUTE
********************************************************************************

Grant Number: 2 R44 HL59121-02A1 (Revised)
Principal Investigator: ARMINI, ANTHONY J PHD
Project Title: CORONARY STENTS WITH ION IMPLANTED RADIOACTIVITY

CONTRACTS MANAGER
IMPLANT SCIENCES CORPORATION
107 AUDUBON ROAD #5
WAKEFIELD, MA  01880

Budget Period:  09/30/1999 - 08/31/2000
Project Period: 12/01/1998 - 08/31/2001

Dear Business Official:

The National Institutes of Health hereby revises this award to reflect an
increase in the amount of $118,109 (see "Award Calculation" in Section I and
"Terms and Conditions" in Section III) to IMPLANT SCIENCES CORPORATION in
support of the above referenced project. This award is pursuant to the authority
of 42 USC 241 42 CFR PART 52 15 USC 638 and is subject to attached terms and
conditions.

Acceptance of this award including attached Terms and Conditions is acknowledged
by the grantee when funds are drawn down or otherwise obtained from the grant
payment system.

Award recipients are responsible for reporting inventions derived or reduced to
practice in the performance of work under this grant. Rights to inventions vest
with the grantee organization provided certain requirements are met and there is
acknowledgement of NIH support. In addition, recipients must ensure that patent
and license activities are consistent with their responsibility to make unique
research resources developed under this award available to the scientific
community, in accordance with NIH policy. For additional information, please
visit http://www.iedison.gov.

If you have any questions about this award, please contact the individual(s)
referenced in the attachments.

Sincerely yours,

/s/ Jane R. Davis

Grants Management Officer
NATIONAL HEART, LUNG, AND BLOOD INSTITUTE

Attachments

<PAGE>   2

SECTION I - AWARD DATA - 2 R44 HL59121-02A1 (Revised)

AWARD CALCULATION (U.S. Dollars):

Salaries and Wages                                          $ 51,272
Personnel Costs                                             $ 51,272
Supplies                                                    $  9,100
Consortium/Contractual Cost                                 $131,930
Direct Costs                                                $192,302
F&A Costs                                                   $160,574
APPROVED BUDGET                                             $352,876
Fee                                                         $ 24,701
TOTAL                                                       $377,577

AMOUNT OF THIS ACTION (FEDERAL SHARE)                      +$118,109

Recommended future year total cost support, subject to the availability of funds
and satisfactory progress of the project, is as follows.

03      $372,423

FISCAL INFORMATION:
CFDA Number:        93.837
EIN:    1042837126A1
Document Number:         R4HL59121B

IC          /     FY1999     /     FY2000
HL/8424277  /       377,577  /       372,423

NIH ADMINISTRATIVE DATA:
PCC: HHHEEN / OC: 41.4B /Processed: KEATINGK 991207 0214

SECTION II - PAYMENT/HOTLINE INFORMATION - 2 R44 HL59121-02A1 (Revised)

For Payment and HHS Office of Inspector General Hotline Information, see the NIH
Home Page at http://www.nih.gov/grants/policy/awardconditions.htm

SECTION III - TERMS AND CONDITIONS - 2 R44 HL59121-02A1 (Revised)

This award is based on the application submitted to, and as approved by, the NIH
on the above-titled project and is subject to the terms and conditions
incorporated either directly or by reference in the following:

a. The grant program legislation and program regulation cited in this Notice of
Grant Award.
b. The restrictions on the expenditure of federal funds in appropriations acts,
to the extent those restrictions are pertinent to the award.
c. 45 CFR Part 74 or 45 CFR Part 92 as applicable.
d. The NIH Grants Policy Statement, including addenda in effect as of the
beginning date of the budget period.
e. This award notice, INCLUDING THE TERMS AND CONDITIONS CITED BELOW.

(see NIH Home Page at http://www.nih.gov/grants/policy/awardconditions.htm for
certain references cited above.)

This grant is included under Expanded Authorities.

This grant is subject to Streamlined Noncompeting Award Procedures (SNAP).

<PAGE>   3

Treatment of Program Income:
Additional Costs

SECTION IV - ADDITIONAL TERMS AND CONDITIONS
Revision #1

2 R44 HL59121-02A1
Dr. Armini

FACILITIES AND ADMINISTRATIVE (F&A) COSTS
The purpose of this revision is to reflect appropriate Facilities and
Administrative costs in accordance with the current F&A cost rate agreement.

PREVIOUS FOOTNOTES AND TERMS
All other Footnotes and Terms and Conditions reflected on the Notice of Grant
 Award issued 9/21/99 are still in effect.

STAFF CONTACTS
The Program Official is responsible for the scientific, programmatic and
technical aspects of this project. The Grants Management Specialist is
responsible for the negotiation, award and administration of this project and
for interpretation of Grants Administration policies and provisions. These
individuals work together in overall project administration. For up-to-date
information, you may access the NIH Home Page at http://www.nih.gov/ and the
NHLBI Home Page at http://www.nhlbi.nih.gov/nhlbi/nhlbi.htm.

Program: Dr. George Sopko (301) 435-0515
               Fax Number (301) 480-1454
Grants Management: J. Kevin Keating (301) 435-0177
                         Fax Number (301) 480-0422

I. Kevin Keating, Grants Specialist

SPREADSHEET

GRANT NUMBER: 2 R44 HL59121-02A1 (Revised)
P.I.: ARMINI, ANTHONY J
INSTITUTION: IMPLANT SCIENCES CORPORATION

                               YEAR    02                  YEAR    03

Salaries and Wages                   51,272                      51,272
Personnel Costs                      51,272                      51,272
Supplies                              9,100                       9,800
Consortium/Contractual Cost         131,930                     131,930

T0TAL DC                            192,302                     193,002
TOTAL F&A                           160,574                     160,827
TOTAL COST                          352,876                     353,829

<PAGE>   4

                               YEAR    02                  YEAR    03

F&A Cost Rate 1                     131.00%                     131.00%
F&A Cost Base 1                      51,272                      51,272
F&A Costs 1                          67,166                      67,166

F&A Cost Rate 2                      36.00%                      36.00%
F&A Cost Base 2                     259,468                     260,169
F&A Costs 2                          93,408                      93,661

                                     24,701                      18,594<PAGE>   1

                                                                   EXHIBIT 10.50

                           FIRST AMENDMENT TO SUBLEASE

        This First Amendment to Sublease, made this 17th day of November, 1999
by and between CP Clare Corporation (hereinafter referred to as "Sublessor") and
Implant Sciences Corporation (hereinafter referred to as "Sublessee").

                                   WITNESSETH

       Whereas, the parties have previously entered into a Sublease Agreement
for 9,300 SF of space at Building 1, 107 Audubon Road, Wakefield, MA dated
October 1, 1999 (hereinafter referred to as the "Sublease") and

Whereas, the parties hereto do hereby agree as follows:

1. SUBLEASE PREMISES: Increased by 8,000 SF in accordance with plan attached as
   Exhibit A.
2. OCCUPANCY: Upon completion ofsublessors work or no later than December 6,
   1999.
3. RENT COMMENCEMENT: March 1, 2000
4. TERM: Remains the same
5. SECURITY DEPOSIT: Increased by $4833.00
6. RENTAL RATE: In accordance with Exhibit C of Sublease.
7. EXPEDITE FEE: Sublessee agrees to pay sublessor a $4,000.00 expedite fee to
   ensure December 6, 1999 occupancy. Expedite fee payable upon completion of
   sublessor's work as described in Item 8.
8. SUBLESSOR'S WORK: Sublessor shall provide a tile floor (VAT), new ceiling
   tiles, painted walls, 2-3 opening cut in walls, and install all HVAC systems,
   but otherwise broom clean.
9. The parties confirm, ratify and agree that all other terms and provisions and
   conditions of the Sublease, except as heretofore noted, shall continue as
   heretofore rented and as if they were printed at large herein and they are
   hereby incorporated by reference.

In witness whereof, the parties hereto, intending to be legally bound, have
caused this instrument to be executed on the day written above.

Witness:                                Sublessor: CP Clare Corporation

                                        By: /s/ Harry Andersen
                                           ---------------------------------
                                        Its: CFO
                                            --------------------------------

                                        Sublessee: Implant Sciences Corporation

                                        By: /s/ Darlene M. Deptula-Hicks
                                           ---------------------------------
                                        Its: VP CFO
                                            --------------------------------

<PAGE>   2

                     [LEGGAT MCCALL PROPERTIES LETTERHEAD]

                                        February 2, 2000

VIA OVERNIGHT MAIL

Mr. Hank Cote
Facilities Manager
CP Clare Corporation
78 Cherry Hill Drive
Beverly, MA 01945-1048

Ms. Darlene M. Deptula-Hicks
Vice President and Chief Financial Officer
Implant Sciences Corporation
107 Audubon Road, Suite 15
Wakefield, MA 01880-1246

RE: 107 AUDUBON ROAD, BUILDING 1, WAKEFIELD, MASSACHUSETTS

Dear Hank and Darlene:

I have enclosed for your files, one (1) fully executed original sublease package
consisting of a fully executed original First Amendment to Sublease agreement
and a fully executed Consent to Amendment of Sublease agreement between CP Clare
Corporation and Implant Sciences Corporation for space at the above referenced
property.

If you have any further questions, please do not hesitate to call.

                                        Sincerely,

                                        /S/ Neil A. Schneider

                                        Neil A. Schneider
                                        Vice President

cc:       Steven D. Werst, Leggat McCall Properties LLC
          Steven Schaub, Leggat McCall Properties LLC
          Paul David Machado, Esq., Carolan & Greeley
          Greg Klemmer, Klemmer & Associates, Inc.
          Lease File

<PAGE>   3

                        CONSENT TO AMENDMENT OF SUBLEASE
                        --------------------------------

                                    PREAMBLE
                                    --------

       THIS CONSENT TO AMENDMENT OF SUBLEASE ("Consent") is dated as of January
31, 2000 and is made with reference to that certain Sublease Agreement (the
"Sublease Agreement") dated October 1, 1999 as amended by First Amendment to
Sublease ("First Amendment") dated as of November 17, 1999 (the Sublease
Agreement as amended by the First Amendment is hereafter collectively the
"Sublease") by and between C.P. Clare Corporation ("Sublandlord") and Implant
Sciences Corporation ("Subtenant"), and is entered into by and among TIAA
Realty, Inc. having an address c/o Leggat McCall Properties, LLC, 500 Edgewater
Drive, Wakefield, MA ("Overlandlord"), Sublandlord, and Subtenant, with respect
to the following facts:

       A.     Overlandlord and Sublandlord are the parties to that certain Lease
              dated as of April 1, 1998 as amended by First Amendment to Lease
              dated July 10, 1998 (said Lease as so amended is hereafter
              collectively the "Ovedease") pertaining to certain space in a
              Building known as and numbered Building 1,107 Audubon Road,
              Wakefield, Massachusetts (the "Building");

       B.     Sublandlord and Subtenant have previously entered into the
              Sublease Agreement and now wish to enter into the First Amendment;

       C.     Overlandlord consented to the original Sublease Agreement by
              virtue of and upon the terms and conditions set forth in that
              certain Consent to Sublease dated as of September 23, 1999 (the
              "Original Consent")

       D.     The Overlease provides, inte.r alia, that Sublandlord may not
              enter into any sublease nor amend the Sublease Agreement without
              Overlandlord's prior written approval; and

       E.     Sublandlord and Subtenant have presented the fully executed
              Sublease (a true copy of which is attached hereto as Exhibit A) to
              Overlandlord for Overlandlord's review and approval.

       NOW, THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties agree as follows:

              1.     Overlandlord hereby consents to the execution and delivery
                     of the First Amendment of the Sublease upon the terms and
                     conditions set forth in the General Conditions of Consent
                     to Sublease ("General Conditions") attached to the Odginal
                     Consent as if each were originally set forth herein.

<PAGE>   4

              2.     Sublandlord and Subtenant hereby acknowledge receipt of the
                     General Conditions and further acknowledge that
                     Overlandlord's consent is subject to such General
                     Conditions, and that in the event of a conflict between
                     this Consent and the General Conditions and the Sublease,
                     this Consent and the General Conditions shall control.

EXECUTED under seal as of the date first written above.

OVERLANDLORD:                           SUBLANDLORD:

TIAA Realty, Inc,..                     C.P. Clare Corporation

By:   Teachers Insurance and Annuity    By: /s/ Harry Andersen
      Association of Amedca, a New          --------------------------------
      York corporation.
Its:  Authorized Representative         Its:  CFO
                                             -------------------------------

By: /s/ Alan E. Lang
    --------------------------------
     Alan E. Lang
Its: Director

                                        SUBTENANT:

                                        Implant Sciences Corporation

                                        By: /s/ Darlene M. Deptula-Hicks
                                            --------------------------------

                                        Its:  VP and CFO
                                             -------------------------------
                                                  hereunto duly authorized

                                      -2-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00001-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00001-of-00352.parquet"}]]