Document:

<PAGE>

                                                                   EXHIBIT 10.15

                SPACEDEV INC. CODE OF BUSINESS CONDUCT AND ETHICS
                -------------------------------------------------

SpaceDev strives to achieve the highest business and personal ethical standards
as well as compliance with the laws and regulations that apply to our business.
Adherence to the standards contained in this Code will help to ensure decisions
that reflect care for all of our stakeholders. This CODE OF BUSINESS CONDUCT AND
ETHICS (the "Code") is intended as an overview of the Company's guiding
principles and not as a restatement of Company policies and procedures.

This Code cannot and is not intended to cover every applicable law or provide
answers to all questions that might arise; for that we must ultimately rely on
each person's good sense of what is right, including a sense of when it is
proper to seek guidance from others on the appropriate course of conduct.
Because our business depends upon the reputation of the Company and its
directors, officers and employees for integrity and principled business conduct,
in many instances this Code goes beyond the requirements of the law.

Employees should refer to the confidential and proprietary policies contained in
the SpaceDev Employee Handbook. This Code is a statement of goals and
expectations for individual and business conduct. It is not intended to and does
not in any way constitute an employment contract or assurance of continued
employment, and does not create any rights in any employee, client, supplier,
competitor, shareholder or any other person or entity.

It is the obligation of each and every director, officer and employee of
SpaceDev to become familiar with the goals and policies of the Company and
integrate them into every aspect of our business. Our ethics are ultimately
determined by all of us as we do our daily jobs. Our standard has been, and will
continue to be, that of the highest ethical conduct.

CONFLICTS OF INTEREST
---------------------

Directors, officers and employees of SpaceDev have a duty of loyalty to the
Company, and must therefore avoid any actual or apparent conflict of interest
with the Company. A conflict situation can arise when an employee, officer or
director takes actions or has interests that may make it difficult to perform
his or her work objectively and effectively. Conflicts of interest also arise
when an employee, officer, or director, or a member of his or her family,
receives improper personal benefits as a result of his or her position in the
Company. If such a situation arises, employees must immediately report the
circumstances to their immediate supervisor, officer or director of the Company.
The Chief Executive Officer and members of the Board of Directors must report
any such circumstances to the Corporate Audit Committee. To review the policy
and specific employee reporting procedures, employees should refer to the
Company's Employee Handbook.

<PAGE>

CORPORATE OPPORTUNITIES
-----------------------

No director, officer or employee may: (a) take for himself or herself personally
opportunities that are discovered through the use of Company property,
information or position; (b) use Company property, information or position for
personal gain; or (c) compete with the Company. Employees, officers and
directors owe a duty to the Company to advance its legitimate interests when the
opportunity to do so arises.

USE OF INSIDE INFORMATION
-------------------------

It is the Company's goal to protect shareholder investments through strict
enforcement of the prohibition against insider trading set forth in federal
securities laws and regulations. No director, officer or employee may buy or
sell securities of SpaceDev at a time when in possession of "material non-public
information." (There is, however, an exception for trades made pursuant to
certain pre-existing trading plans established in compliance with applicable
law.) Passing such information to someone who may buy or sell securities is also
prohibited. The prohibition on insider trading applies to SpaceDev's securities
and to securities of other companies if the director, officer or employee learns
of material non-public information about those other companies in the course of
his or her duties for SpaceDev. This prohibition also extends to certain
non-employees who may learn about the "material non-public information" about
the Company, such as spouses, relatives, and close friends of directors,
officers or employees. Insider trading is both unethical and illegal and will be
dealt with firmly. To review the policy and for specific employee reporting
procedures, employees should refer to the Company's Employee Handbook.

FAIR DEALING
------------

Each director, officer and employee shall endeavor to deal fairly and in good
faith with SpaceDev customers, shareholders, employees, suppliers, regulators,
business partners, competitors and others. No director, officer or employee
shall take unfair advantage of anyone through manipulation, concealment, abuse
of privileged or confidential information, misrepresentation, fraudulent
behavior or any other unfair dealing practice.

CONFIDENTIALITY
---------------

All directors, officers and employees should maintain the confidentiality of
information entrusted to them by the Company, its business partners, suppliers,
customers or others related to SpaceDev's business. Such information must not be
disclosed to others, except when disclosure is authorized by SpaceDev or legally
mandated. Confidential information includes all non-public information that
might be of use to competitors or harmful to SpaceDev, or its customers, if
disclosed. To review the policy and for specific employee reporting procedures,
employees should refer to the Company's Employee Handbook.

PROTECTION AND USE OF COMPANY ASSETS
------------------------------------

Company assets, such as information, materials, supplies, time, intellectual
property, software, hardware, and facilities, among other property, are valuable
resources owned, licensed to, or otherwise belonging to the Company.
Safeguarding Company assets is the responsibility of all directors, officers and
employees. All Company assets should be used for legitimate business purposes.

                                       2
<PAGE>

The personal use of Company assets without permission is prohibited. To review
the policy and for specific employee reporting procedures, employees should
refer to the Company's Employee Handbook.

ACCOUNTING PRACTICES
--------------------

It is the policy of SpaceDev to fully and fairly disclose the financial
condition of the Company in compliance with applicable accounting principles,
laws, rules and regulations. All books and records of SpaceDev shall be kept in
such a way as to fully and fairly reflect all Company transactions.

COMPLIANCE WITH LAWS, RULES, REGULATIONS
----------------------------------------

SpaceDev takes a proactive stance on compliance with all applicable laws, rules,
and regulations, including securities laws, insider-trading laws and applicable
anti-trust laws. In addition, Spacedev requires that its officers and employees
comply with the following work-place policies and applicable laws and
regulations:

DISCLOSURE

SpaceDev is a reporting company under the Securities Exchange Act of 1934 and,
as such has certain disclosure obligations to which it must adhere. All
directors, officers and employees of the Company responsible for the preparation
and filing of such disclosure shall be responsible for ensuring that the
periodic reports of the Company contain full, fair, accurate, timely and
understandable disclosure. In preparing the periodic reports of the Company, the
directors, officers and employees of the Company shall act in good faith,
responsibly, with due care, competence and diligence, without misrepresenting
material facts or allowing one's independent judgment to be subordinated.

EQUAL EMPLOYMENT OPPORTUNITY

SpaceDev's people are a key source of our competitive edge. The Company strongly
supports and recognizes its responsibility to provide equal employment
opportunities to all qualified individuals. The Company places a high value on
diversity. The Company strongly believes that all people are unique and valuable
and should be respected for their individual abilities.

In support of this goal the Company has established a corporate policy regarding
discrimination or harassment on the basis of race, gender, age, color, religion,
disability status, Veteran status, sexual orientation, marital status, or
ethnic, national, or Appalachian regional origin, or any other characteristic
protected by law. The policy applies to all personnel relationships including,
but not limited to: promotions, transfers, training, job assignments, job
stations, hours of work, rates of pay, working conditions, terminations, and all
terms and conditions of employment. The Company will take affirmative action to
employ qualified disabled veterans, veterans of the Vietnam era, disabled
persons, minorities, and women. All officers and employees are expected to
adhere to the laws, regulations and Company policies relating to equal
opportunity, affirmative action and non-discrimination. To review the policy and
for specific employee reporting procedures, employees are instructed to refer to
the Company's Employee Handbook.

                                       3
<PAGE>

HARASSMENT FREE WORKPLACE

SpaceDev maintains a strict Harassment Free Workplace policy. The Company
requires all officers and employees to treat each other, customers, and all
other persons encountered in the course of business with respect. To review the
applicable policies and for specific employee reporting procedures, employees
should refer to the Company's Employee Handbook.

THREATS & VIOLENCE

SpaceDev strives to maintain a work environment that is free from intimidation,
threats or violent acts. To review the applicable policies, employees should
refer to the Company's Employee Handbook.

DRUG, ALCOHOL & TOBACCO USE

SpaceDev wants to establish and maintain a work environment that is free from
the effects of alcohol and drug abuse. To review the applicable policies,
employees should refer to the Company's Employee Handbook.

FOREIGN CORRUPT PRACTICES ACT (FCPA)

U.S. law generally prohibits the Company from making or offering to make a
payment, promise or granting another benefit, directly or indirectly, to a
"foreign official", foreign candidate for political office or foreign political
party for the purpose of improperly causing the foreign official, candidate or
political party to act or cause an act for the benefit of the Company or a
subsidiary. "Foreign official" may include employees of state owned foreign
companies as well as governmental officials. Those directors, officers or
employees whose jobs subject them to interactions with foreign countries and
foreign based companies should request and receive FCPA compliance training from
the Legal Department and should immediately contact the Legal Department at
513-287-2644, with respect to any questions regarding business conduct with
foreign entities.

GIFTS, BRIBES AND KICKBACKS

Other than for modest gifts given or received in the normal course of business
(including travel or entertainment), neither you nor your relatives may give
gifts to, or receive gifts from, SpaceDev's clients and vendors. Other gifts may
be given or accepted only with prior approval of your senior management. In no
event should you put SpaceDev or yourself in a position that would be
embarrassing if the gift was made public.

Dealing with government employees is often different than dealing with private
persons. Many governmental bodies strictly prohibit the receipt of any
gratuities by their employees, including meals and entertainment. You must be
aware of and strictly follow these prohibitions.

                                       4
<PAGE>

Any associate who pays or receives bribes or kickbacks will be immediately
terminated and reported, as warranted, to the appropriate authorities. A
kickback or bribe includes any item intended to improperly obtain favorable
treatment.

CITIZENSHIP
-----------

CIVIC AND POLITICAL PARTICIPATION

SpaceDev is an active participant in the democratic process at the national,
state and local levels, within the parameters of the law. SpaceDev also
encourages all employees to participate in our political system by voting,
speaking out on public issues, and becoming active in civic and political
activities. It is important, however, that directors, officers and employees
clearly distinguish their personal views from those of the Company, unless
specifically authorized by the Company to speak on the Company's behalf.

POLITICAL CONTRIBUTION

Laws of certain jurisdictions (including the U.S. federal government) govern
SpaceDev's actions in contributing, directly or indirectly, to any candidate for
public office, political parties, or other political organizations. However,
directors, officers and employees are free to contribute to candidates or
otherwise partake in the political process in their individual capacity. In
fact, the Company highly encourages its directors, officers and employees to
take part in the political process, but employees may not be given time off with
pay for political activity and may not use Company funds or assets for
contributions of any kind to a political party or candidate for elected public
office.

LOBBYING

SpaceDev recognizes the right of any director, officer and employee, as a
citizen, to communicate with his or her elected public officials and the Company
encourages directors, officers and employees to do so. However, if requested to
make such contact on behalf of the Company, such persons must be cognizant of
state and/or federal laws regarding lobbying activities and strictly follow the
applicable guidelines and reporting requirements.

CONTACT WITH COURTS AND STATE AND FEDERAL AGENCIES

All employees must avoid discussing with decision-makers any matters pending
before courts or agencies affecting the Company unless the employee is part of
the Company's legal counsel or authorized by the Company to do so.

CHARITABLE ACTIVITIES

SpaceDev is committed to maintaining good will and to being a good civic
neighbor. Directors, officers and employees are encouraged to serve on
non-profit boards and in other volunteer capacities. However, if a director,
officer or employee serves in any capacity with a not-for-profit organization,
such person may not represent either the Company or the organization in any
transactions between them.

                                       5
<PAGE>

DUTY TO REPORT AND CONSEQUENCES
-------------------------------

Every director, officer and employee has a duty to adhere to this CODE OF
BUSINESS CONDUCT AND ETHICS and all existing Company policies and to report to
the Company any suspected violations in accordance with applicable procedures.

Employees shall report suspected violations of Company policies contained in the
Employee Handbook by following the reporting procedures as stated in the
Employee Handbook.. All other suspected violations of the Code must be reported.
The Company will investigate any matter so reported and may take appropriate
disciplinary and corrective action, up to and including termination. The Company
forbids retaliation against employees who report violations of this CODE OF
BUSINESS CONDUCT AND ETHICS in good faith.

Any employee who ignores or violates any of SpaceDev's ethical standards, and
any officer or manager who penalizes a subordinate for trying to follow these
ethical standards, will be subject to corrective action, including possible
immediate dismissal. Please refer to the Company's Employee Handbook. However,
it is not the threat of discipline that should govern your actions. We hope you
share our belief that a dedicated commitment to ethical behavior is the right
thing to do and is good business.

SCOPE
-----

This Code does not supercede, change or alter the existing Company policies and
procedures already in place as stated in the Employee Handbook and communicated
to Company employees. Certain policies referred to herein are contained in the
Employee Handbook, and Company employees are instructed to refer to this
Handbook for a copy of those policies and required reporting procedures. As
previously indicated, the Employee Handbook contains information that is
proprietary and confidential, and the Company hereby expressly denies waiving
any right to assert claims that the contents of the Employee Handbook are
proprietary and/or confidential.

No Company policy can provide definitive answers to all questions. If employees
have questions regarding any of the goals, or standards discussed or policies
referenced in this Code or are in doubt about the best course of action in a
particular situation, the employee should refer to the Employee Handbook, their
immediate supervisor, or officer or director of the Company.

Any waivers of this Code for executive officers or directors may be made only by
the Board of Directors or a Board committee to which such responsibility has
been delegated, and must be promptly disclosed to shareholders.

                                       6<PAGE>

                                                                   EXHIBIT 10.16

                              [SPACEDEV LOGO HERE]

                              EMPLOYMENT AGREEMENT

                                 BY AND BETWEEN

                                 SPACEDEV, INC.

                                       AND

                               RICHARD B. SLANSKY

                                       2
<PAGE>

                                 SPACEDEV, INC.
                              EMPLOYMENT AGREEMENT

         This At-Will Employment Agreement ("Agreement") is made and entered
into as of the date written next to the signature lines by and between SPACEDEV,
INC., a Colorado corporation (the "Company"), and the undersigned individual
(the "Employee").

         1. EMPLOYMENT. The Company hereby employs Employee as the position
listed on Schedule A to this Agreement, which incorporated herein by this
reference. Employee accepts such employment and agrees to perform services for
the Company, subject always to such resolutions as are established from time to
time by the Board of Directors of the Company and its President or CEO.

         2. AT-WILL EMPLOYMENT. Employee acknowledges and understands that the
employment is "at-will". Employee and Company may terminate this Agreement at
any time with or without cause and without notice.

         3. POSITION AND DUTIES.

              3.1. SERVICES WITH THE COMPANY. Employee agrees to perform such
duties and exercise such powers as specified under Schedule A and as may from
time to time be assigned to Employee by the Company's Board of Directors (the
"Board") and its President or CEO. Employee shall duly and diligently perform
all duties assigned to Employee while in the employ of the Company. Employee
shall be bound by and faithfully observe and abide by all rules and regulations
of the Company which are brought to their notice or of which they should be
reasonably aware.

              3.2. NO CONFLICTING DUTIES. Employee shall devote sufficient
productive time, ability, and attention to the business of the Company during
the term of this Agreement in a manner that will serve the best interests of the
Company. During the term hereof, Employee shall not serve as an officer,
director, employee, consultant or advisor to any other business without the
prior written consent of the Company's Board, which shall not be unreasonably
withheld. Employee hereby confirms Employee is under no contractual commitments
inconsistent with Employee's obligations set forth in this Agreement. During the
term of this Agreement, Employee will not render or perform services, or enter
into any contract to do so, for any other corporation, firm, entity or person
that are inconsistent with the provisions of this Agreement. This Agreement
shall not be interpreted to prohibit Employee from making passive personal
investments or conduct private business affairs if those activities do not
materially interfere with the services required under this Agreement. However,
Employee shall not directly or indirectly, acquire, hold, or retain any interest
in any business competing with or similar in nature to the business of the
Company.

              3.3. COMPETITIVE ACTIVITIES. During the term of this Agreement,
Employee shall not, directly or indirectly, either as an employee, employer,
consultant, agent, principal, partner, stockholder, corporate officer, director,
or in any other individual or representative capacity, engage or participate in
any business that is in competition in any manner whatsoever with the business
of the Company.

              3.4. UNIQUENESS OF EMPLOYEE'S SERVICES. Employee hereby represents
and agrees that the services to be performed under the terms of this Agreement
are of a special, unique, unusual, extraordinary, and intellectual character
that gives them a unique value, the loss of which cannot be adequately
compensated in damages in an action at law. Employee, therefore, expressly
agrees that the Company, in addition to any other rights or remedies that the
Company may possess, shall be entitled to injunctive and other equitable relief
to prevent or remedy the breach of this Agreement by Employee.

                                       3
<PAGE>

         4. COMPENSATION.

              4.1. BASE SALARY. As compensation for all services to be rendered
by Employee under this Agreement, the Company shall pay to Employee a base
annual salary as described in Schedule A. Employee's salary shall be paid on a
regular basis in accordance with the Company's normal payroll procedures and
policies.

              4.2. BONUS. Based on the Company's performance and Employee's
success in meeting annual objectives, the Company has the discretion to offer
Employee an annual bonus in cash and/or stock and/or stock options. A
description of the Bonus Compensation is set forth in Schedule A along with the
conditions and criteria.

              4.3 INCENTIVE STOCK OPTION. The Company has adopted an Incentive
Stock Option Plan (the "Plan"), which Employee shall be eligible to participate
in. A copy of the Plan is being provided to Employee concurrently with this
Agreement. Any incentive stock options issued to Employee shall be subject to
the terms and conditions of the Plan.

              4.4. MEDICAL INSURANCE. Employee shall have the right to
participate in the Company's comprehensive medical insurance plan upon the terms
and conditions of other similar situated employees of the Company.

              4.5. EXPENSES. The Company shall reimburse Employee for all
pre-approved business or travel expenses and office-related expenses incurred by
Employee in the performance of Employee's duties.

              4.6. ANNUAL VACATION. Employee shall be entitled vacation time
each year without loss of compensation. The number of vacation days is specified
in Schedule A of this Agreement. In the event that Employee is unable for any
reason to take the total amount of vacation time authorized herein during any
year, Employee shall be deemed to have waived any entitlement to vacation time
for that year, unless a carryover is specifically approved by the Company in
writing.

         5. PROPRIETARY MATTER. Except as permitted or directed by the Company,
Employee shall not during the term of employment or at any time thereafter
divulge, furnish, disclose, or make accessible (other than in the ordinary
course of the business of the Company) to anyone for use in any way any
confidential, secret, or proprietary knowledge or information of the Company
("Proprietary Matter") which Employee has acquired or become acquainted with or
will acquire or become acquainted with, whether developed by himself or by
others, including, but not limited to, any trade secrets, confidential or secret
designs, processes, formulae, software or computer programs, plans, devices or
material (whether or not patented or patentable, copyrighted or copyrightable)
directly or indirectly useful in any aspect of the business of the Company, any
confidential customer, distributor or supplier lists of the Company, any
confidential or secret development or research work of the Company, or any other
confidential, secret or non-public aspects of the business of the Company.
Employee acknowledges that the Proprietary Matter constitutes a unique and

                                       4
<PAGE>

valuable asset of the Company acquired at great time and expense by the Company,
and that any disclosure or other use of the Proprietary Matter other than for
the sole benefit of the Company would be wrongful and would cause irreparable
harm to the Company. Both during and after the term of this Agreement, Employee
will refrain from any acts or omissions that would reduce the value of
Proprietary Matter to the Company. The foregoing obligations of confidentiality,
however, shall not apply to any knowledge or information which is now published
or which subsequently becomes generally publicly known, other than as a direct
or indirect result of the breach of this Agreement by Employee.

         6. VENTURES. If, during the term of this Agreement, Employee is engaged
in or associated with the planning or implementing of any project, program, or
venture involving the Company and a third party or parties, all rights in the
project, program, or venture shall belong to the Company and shall constitute a
corporate opportunity belonging exclusively to the Company. Except as expressly
approved in writing by the Company, Employee shall not be entitled to any
interest in such project, program, or venture or to any commission, finder's fee
or other compensation in connection therewith, other than the compensation to be
paid to Employee as provided in this Agreement.

         7. SOLICITATION OF CUSTOMERS AND SOLICITATION OF EMPLOYEES.

              7.1. AGREEMENT NOT TO SOLICIT CUSTOMERS. Employee agrees that
during the term of employment by the Company hereunder and for the period in
which any covenant not to compete is in effect hereunder, Employee will not,
either directly or indirectly, on Employee's own behalf or in the service or on
behalf of others, solicit, divert or appropriate, or attempt to solicit, divert,
or appropriate, to any competing business (i) any person or entity whose account
is with the Company or any distributor of the Company that is/was sold or
serviced by or under the direct or indirect supervision of Employee during the
year preceding the termination of such employment, or (ii) any person or entity
whose account has been directly solicited at least twice by the Company within
the eighteen (18) month period prior to the date of any above described event.

              7.2. AGREEMENT NOT TO SOLICIT EMPLOYEES. During Employee's
employment by the Company hereunder and for the three-year period following the
termination of such employment for any reason, Employee shall not, either
directly or indirectly, on Employee's own behalf or in the service or on behalf
of others solicit, divert or hire away, or attempt to solicit, divert or hire
away any person then employed by the Company or serving the Company as an
independent contractor. For persons brought into the Company specifically by
Employee during Employee's employment by the Company, the period of
non-solicitation shall be for one-year following termination of Employee.

         8. SURRENDER OF RECORDS AND PROPERTY. Upon termination of employment
with the Company, Employee shall deliver promptly to the Company all records,
electronic media, manuals, books, blank forms, documents, letters, memoranda,
notes, notebooks, reports, data, tables, and calculations or copies thereof,
which are the property of the Company and which relate in any way to the
business, products, practices or techniques of the Company, and all other
property (keys, office equipment, computers, mobile phones, credit cards, etc.)
of the Company and Proprietary Matter, including but not limited to, all
documents which in whole or in part contain any trade secrets or confidential
information of the Company, which in any of these cases are in Employee's
possession or under Employee's control.

         9. ASSIGNMENT. This Agreement shall not be assignable, in whole or in
part, by either party without the written consent of the other party, except
that the Company may, without the consent of Employee, assign its rights and
obligations under this Agreement to any corporation, firm or other business
entity (i) with or into which the Company may merge or consolidate, or (ii) to
which the Company may sell or transfer all or substantially all of its assets or

                                       5
<PAGE>

of which fifty percent (50%) or more of the equity investment and of the voting
control is owned, directly or indirectly, by, or is under common ownership with,
the Company. Upon such assignment by the Company, the Company shall obtain the
assignees' written agreement enforceable by Employee to assume and perform, and
after the date of such assignment, the terms, conditions, and provisions imposed
by this Agreement upon the Company. After any such assignment by the Company and
such written agreement by the assignee, the Company shall be discharged from all
further liability hereunder and such assignee shall thereafter be deemed to be
the Company for the purposes of all provisions of this Agreement including this
section.

         10. INJUNCTIVE RELIEF. Employee agrees that it would be difficult to
compensate the Company fully for damages for any violation of the provisions of
this Agreement. Accordingly, Employee specifically agrees that the Company shall
be entitled to temporary and permanent injunctive relief to enforce the
provisions of this Agreement. This provision with respect to injunctive relief
shall not, however, diminish the right of the Company to claim and recover
damages in addition to injunctive relief.

         11. INDEMNIFICATION. The company shall indemnify Employee as provided
in the California Corporations Code, Company Articles or Company's Bylaws in
effect at the commencement of this Agreement. The scope of indemnification to
which Employee is entitled shall not be diminished, but may be expanded by the
Company, by amendment of the Company's Bylaws, Articles of Incorporation or
otherwise. Employee shall indemnify and hold the Company harmless from all
liability for loss, damages or injury resulting from the negligence or
misconduct of Employee.

         12. MISCELLANEOUS.

              12.1 GOVERNING LAW. This Agreement is made under and shall be
government by and construed in accordance with the laws of the State of
California.

              12.2 PRIOR AGREEMENTS AND ARBITRATION. This Agreement contains the
entire agreement of the parties relating to the subject matter hereof and
supersedes all prior agreements and understandings with respect to such subject
matter, and the parties hereto have made no agreements, representations or
warranties relating to the subject matter of this Agreement which are not set
forth herein. Any dispute(s) or differences(s) which arise during the course of
this Agreement and which either involve its interpretation or meaning, or relate
to performance required hereunder shall be submitted to and resolved by binding
arbitration; provided, however, that the parties are not waiving and are
expressly reserving their right to seek injunctive relief by judicial process.
Nevertheless, the parties may, by subsequent consent, agree to submit requests
for injunctive relief to an arbitrator or arbitration panel. If either party
shall, in the opinion of the other party, be in breach of or default in the
performance or observance of any term or condition of this Agreement, the
non-defaulting party shall notify the defaulting party in writing of such fact,
and the defaulting party shall have ten (10) days from the receipt of such
notice to remedy or correct such breach or default. If the non-defaulting party
asserts that the breach or default has not been timely and properly cured, it
may commence arbitration as described herein and ask the arbitrator to deem this
Agreement terminated and/or grant such relief as is shown appropriate. In the
event the parties are unable to agree upon an arbitrator to hear and resolve
their differences (hereinafter the "Dispute"), each party shall designate one
person licensed as an attorney in California. Said two attorneys shall select
the neutral arbitrator. Unless agreed upon by the parties to the contrary,
arbitration shall be by a single, neutral arbitrator (hereinafter, the
"Arbitrator"). If the two designated attorneys cannot agree on the selection of

                                       6
<PAGE>

the Arbitrator, the matter of the selection of the Arbitrator shall be submitted
to the presiding judge of the Sacramento County Superior Court. In such event,
the selection shall be limited to one person from a panel of retired judges,
each party hereto submitting three names for the court to consider and from
which the Arbitrator shall be selected. The Arbitrator shall have the full and
absolute authority to interpret this Agreement, to deem conduct by the parties
as either in compliance with or in breach of this Agreement, to terminate this
Agreement, and (if a breach is found) to award appropriate damages or relief.
The Dispute shall be settled in accordance with then existing substantive law
and, to the fullest extent possible, with California substantive law. While
evidence may be accepted, omitted, considered or excluded in the discretion of
the Arbitrator, the Arbitrator shall be bound by the California rules of
evidence and by the California Arbitration Act (CCP 1280 et seq.). The final
decision of the Arbitrator shall be served on the parties, in writing, within
twenty (20) days after conclusion of the arbitration hearing. The Arbitrator's
decision shall be binding and conclusive. Neither party shall pursue, prosecute
or otherwise file any legal action or proceeding (other than to seek injunctive
relief as described above). Except as provided in CCP 1286.2, no appeal shall be
taken from the Arbitrator's decision or from any subsequent court order
confirming said decision. The parties shall equally advance the costs incurred
by arbitration. The Arbitrator, however, shall have the discretion to award such
costs as well as attorneys' fees to the party prevailing in the arbitration
proceedings.

              12.3 WITHHOLDING TAXES. The Company may withhold from any benefits
payable under this Agreement all federal, state, city or other taxes as shall be
required pursuant to any law or governmental regulation or ruling.

              12.4 AMENDMENTS. No amendment or modification of this Agreement
shall be deemed effective unless made in writing signed by the parties hereto.

              12.5 NO WAVIER. No term or condition of this Agreement shall be
deemed to have been waived nor shall there be any estoppel to enforce any
provisions of this Agreement, except by a statement in writing signed by the
party against whom enforcement of the waiver or estoppel is sought. Any written
waiver shall not be deemed a continuing waiver unless specifically stated, shall
operate only as to the specific term or condition waived and shall not
constitute a waiver of such term or condition for the future or as to any act
other than that specifically waived.

              12.6 SEVERABILITY. To the extent any provision of this Agreement
shall be invalid or unenforceable, it shall be considered deleted here from and
the remainder of such provision and of this Agreement shall be unaffected and
shall continue in full force and effect.

              12.7 SURVIVAL. Sections 5, 6, 7, and 8 shall survive termination
of this Agreement.

              12.8 NOTICES. Any and all notices, requests or other
communications required or permitted in or by any provision of this Agreement
shall be in writing and may be delivered personally or by certified mail
directed to the addressee at such person's or entity's last known post office
address, and if given by certified mail, shall be deemed to have been delivered
when deposited in such, mail postage prepaid.

              12.9 LEGAL PROCEEDINGS. In the event of legal proceedings,
including arbitration as set forth in Section 12.2 above, the prevailing party
shall be entitled, in addition to such relief as is deemed to be appropriate, to
recover such costs and reasonable attorneys' fees as are incurred therein.

                                       7
<PAGE>

              This Agreement is executed on February 10, 2003, in San Diego,
California.

COMPANY:
SPACEDEV, INC.                                        EMPLOYEE:

By: /s/ James W. Benson                               /s/ Richard B. Slansky
                                                      --------------------------
Title: Chief Executive Officer                        Richard B. Slansky

                                       8
<PAGE>

                                 SPACEDEV, INC.
                         RICHARD B. SLANSKY --SCHEDULE A

STARTING DATE:  February 10, 2003

POSITION:  Chief Financial Officer

POSITION OBJECTIVE:
This position is directly responsible for overseeing all financial aspects of
the Company, and reports directly to CEO. This position also acts as the
Secretary of the Board of Directors.

RESPONSIBILITIES:

         o        SEC reporting
         o        Strategic financial planning/modeling
         o        Cash flow management
         o        Accounting management
         o        Investor relations
         o        Banking relationships
         o        Securing capital investment (as necessary).

SALARY PER ANNUM: $100,000 plus 1% of any equity financing raised at market on
an as-needed basis, or 4% of any equity financing raised above $1/share on an
as-needed basis. All equity financing raised implies that the Board of Directors
has accepted the terms and conditions of this financing. Performance and salary
review at the end of first six months with the plan to increase salary to
$112,500 triggered by establishing a line of credit acceptable to management and
the Board of Directors within this timeframe. Performance and salary reviews
will be conducted at the end of each of the subsequent three (3) six-month
periods, with the intention to increase salary an additional $12,500 with each
review, provided appropriate accomplishments (agreed upon between Employee and
CEO at the beginning of each of these periods) are achieved during that period.

SPACEDEV STOCK OPTIONS: Employee is eligible to participate in the SpaceDev's
annual Incentive Stock Option Plan. Employee will also receive incentive stock
options (defined in the Stock Option Plan) to purchase up to 180,000 SpaceDev
common shares ("standard block") to be granted at the date of the signing of
this agreement, and vesting during employment, over 60 months, as follows:

         -------------------- ------------------------ -------------------------
         STOCK OPTIONS        EXERCISE PRICE           VESTING
         -------------------- ------------------------ -------------------------
         18,000               FMV* at Grant Date       6 mos. after Grant Date
         -------------------- ------------------------ -------------------------
         18,000               FMV at Grant Date        12 mos. after Grant Date
         -------------------- ------------------------ -------------------------
         18,000               FMV at Grant Date        18 mos. after Grant Date
         -------------------- ------------------------ -------------------------
         18,000               FMV at Grant Date        24 mos. after Grant Date
         -------------------- ------------------------ -------------------------
         18,000               FMV at Grant Date        30 mos. after Grant Date
         -------------------- ------------------------ -------------------------
         18,000               FMV at Grant Date        36 mos. after Grant Date
         -------------------- ------------------------ -------------------------
         18,000               FMV at Grant Date        42 mos. after Grant Date
         -------------------- ------------------------ -------------------------
         18,000               FMV at Grant Date        48 mos. after Grant Date
         -------------------- ------------------------ -------------------------
         18,000               FMV at Grant Date        54 mos. after Grant Date
         -------------------- ------------------------ -------------------------
         18,000               FMV at Grant Date        60 mos. after Grant Date
         -------------------- ------------------------ -------------------------
          * Fair Market Value

                                       9
<PAGE>

The "Standard Block" of options shall vest in an accelerated fashion based upon
the following criteria -- 36,000 options shall vest upon the SpaceDev stock
closing price maintaining $1.00/share or more for thirty (30) consecutive
business days; the next 36,000 options shall vest upon the SpaceDev stock
closing price maintaining $1.50/share or more for thirty (30) consecutive
business days; the next 36,000 options shall vest upon the SpaceDev stock
closing price maintaining $2.00/share or more for thirty (30) consecutive
business days; the next 36,000 options shall vest upon the SpaceDev stock
closing price maintaining $2.50/share or more for thirty (30) consecutive
business days; the remaining unvested options in the standard block shall vest
upon the SpaceDev stock closing price maintaining $3.00/share or more for thirty
(30) consecutive business days. In the absence of these criteria being achieved,
the "Standard Block" of options shall vest according to the schedule outlined in
the table above.

In addition to the "Standard Block" of options, Employee will also be granted
additional incentive stock options (defined in the Stock Option Plan) to
purchase SpaceDev common shares which will vest upon completion of the following
accomplishments:

         o        25,000 stock options shall vest upon signing this agreement,
         o        20,000 stock options shall vest upon successfully negotiating
                  terms of the release of the current security for guarantees
                  linked with the SpaceDev building lease,
         o        20,000 stock options shall vest upon the Company achieving a
                  working capital ratio of 1:1 or better,
         o        Either 50,000 stock options shall vest upon full repayment of
                  the convertible debt by July 30, 2003; or 30,000 stock options
                  shall vest upon full repayment of the convertible debt by
                  December 31, 2003,
         o        20,000 stock options shall vest upon the establishment of a
                  Line of Credit for the Company.
         o        20,000 stock options shall vest upon listing the SpaceDev
                  stock on an exchange "above" the current OTC listing,
         o        20,000 stock options vest by performance of criteria
                  established by the CEO in 2004,
         o        20,000 stock options vest by performance of criteria
                  established by the CEO in 2005.

VACATION DAYS PER ANNUM: 3 weeks (combined vacation & sick leave), 2 Personal
Days. Time taken off before the normal vacation time accrues will be treated as
"leave without pay."

MEDICAL/DENTAL/OTHER BENEFITS PLAN: Standard SpaceDev Plan per Employee
Handbook.

SEVERANCE:

CHANGE OF CONTROL -- OWNERSHIP:
If, as a result of a Change in Control, Employee is either involuntarily
terminated other than for Cause or resigns for Good Reason within the Election
Window, as defined herein, the Company shall pay Employee the full amount of the
accrued but unpaid salary earned through the date of termination, plus a cash
payment for all unused vacation time which Employee may have accrued as of the
date of termination. In addition, the Company shall pay Employee a severance
allowance equal to six (6) months compensation at Employee's then current Base
Salary less taxes and social security required to be withheld, payable
semi-monthly pursuant to the payroll procedures regularly established by the
Company, and shall maintain health benefits for Employee for a period of six (6)

                                       10
<PAGE>

months following the date of termination. In addition, the Company shall provide
six (6) months of executive outplacement starting on the date of termination.
All stock options held by Employee as of the date of termination shall
immediately vest as of that date and shall expire within ninety (90) days in
accordance with their terms. If required by a successor company, Executive will
not engage in any competitive activity for a period of one (1) year following a
Change in Control.

For purposes of this provision, "Election Window" shall mean the thirty-day
period beginning on the earlier of the date a Change in Control is publicly
announced or the date a Change in Control takes effect. A Change in Control
shall be deemed to have occurred if:

(A) The acquisition (other than from Company) by any person, entity or "group",
within the meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act
(excluding, for this purpose, any employee benefit plan of Company or its
subsidiaries which acquires beneficial ownership of voting securities of
Company) of beneficial ownership (within the meaning of Rule 13d-3 promulgated
under the Exchange Act) of 50% or more of either the then outstanding shares of
Common Stock or the combined voting power of Company's then outstanding voting
securities entitled to vote generally in the election of directors; or

(B) Approval by the stockholders of Company of a reorganization, merger,
consolidation, in each case, with respect to which the shares of Company voting
stock outstanding immediately prior to such reorganization, merger or
consolidation do not constitute or become exchanged for or converted into more
than 50% of the combined voting power entitled to vote generally in the election
of directors of the reorganized, merged or consolidated company's then
outstanding voting securities, or a liquidation or dissolution of Company or of
the sale of all or substantially all of the assets of Company.

"Good Reason" shall mean a resignation of Employee's employment during the Term
as a result of any of the following: (i) a meaningful and detrimental alteration
in your position, titles, responsibilities or reporting responsibilities from
that contemplated under this Agreement; provided, however, that a change in your
position, titles, responsibilities or reporting responsibilities as a result of
or in connection with a Change in Control shall not constitute an event of Good
Reason for purposes of this Agreement; (ii) the failure of the Company to obtain
an agreement reasonably satisfactory to you from any successor to assume and
agree to perform this Agreement; or (iii) the significant reduction by the
Company in your annual rate of Base Salary; or (iv) relocation of the principal
place of employment of Employee by a distance greater than thirty-five (35)
miles from the current headquarters of the Company.

CHANGE OF CONTROL -- MANAGEMENT:
In the event of a change in CEO from Mr. Benson to anyone other than Mr.
Slansky, Mr. Schaffer or Mr. Skarupa, or the addition of a President or COO
other than Mr. Slansky, Mr. Schaffer or Mr. Skarupa, or within 90 days a new CFO
is brought in, or the Employee is either involuntarily terminated other than for
Cause or resigns due to irreconcilable differences between the employee and the
new CEO/President/COO (and not merely for financial gain), then the Company
shall pay Employee the full amount of the accrued but unpaid salary earned
through the date of termination, plus a cash payment for all unused vacation
time which Employee may have accrued as of the date of termination. In addition,

                                       11
<PAGE>

the Company shall pay Employee a severance allowance equal to three (3) months
compensation at Employee's then current Base Salary less taxes and social
security required to be withheld, payable semi-monthly pursuant to the payroll
procedures regularly established by the Company, and shall maintain health
benefits for Employee for a period of three (3) months following the date of
termination. In addition, the Company shall provide three (3) months of
executive outplacement starting on the date of termination. One-half of all
stock options held by Employee in the "Standard Block" as of the date of
termination shall immediately vest as of that date and shall expire within three
(3) years in accordance with their terms. Employee may not sell more than 1/3 of
purchased options (shares) per year, without prior consent of the Board of
Directors.

OTHER:
If Employee is involuntarily terminated other than for Cause, the Company shall
pay Employee the full amount of the accrued but unpaid salary earned through the
date of termination, plus a cash payment for all unused vacation time, which
Employee may have accrued as of the date of termination. In addition, the
Company shall pay Employee a severance allowance equal to a period of up to six
(6) months compensation at Employee's then current Base Salary less taxes and
social security required to be withheld, payable semi-monthly pursuant to the
payroll procedures regularly established by the Company, and shall maintain
health benefits for Employee for the same period of up to six (6) months
following the date of termination. The precise period shall be determined based
upon Employee's time of employment in the Company on the date of termination
according to the following schedule: one (1) month available on or after
Employee's three month anniversary of employment; two (2) months available on or
after Employee's six (6) month anniversary of employment; three (3) months
available on or after Employee's nine (9) month anniversary; four (4) months
available on or after Employee's twelve (12) month anniversary; five (5) months
available on or after Employee's fifteen (15) month anniversary; six (6) months
available on or after Employee's eighteen (18) month anniversary. In addition,
the Company shall provide, for the same period defined above, up to six (6)
months of executive outplacement starting on the date of termination. All vested
options held by Employee shall expire within three (3) years of termination date
in accordance with their terms. Employee may not sell more than 1/3 of purchased
options (shares) per year, without prior consent of the Board of Directors.

                                       12

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00049-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00049-of-00352.parquet"}]]