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      Exhibit
        10.2

      

      

      ADVISORY
        SERVICES AGREEMENT

      

      

      This
        Advisory Services Agreement (the “Agreement”) is entered into this 18th day of
        July, 2005 by and between Ascendiant Capital Group LLC (hereinafter referred
        to
        as “Consultant”) and SmartVideo Technologies, Inc. (hereinafter referred to as
“Client” or “Company”), collectively referred to as the “Parties,” with
        reference to the following terms:

      

      Preliminary
        Statement: The
        Client desires to be assured of the association and services of the Consultant
        in order to avail itself of the Consultant's experience, skills, abilities,
        knowledge, and background to facilitate strategic and financial development,
        and
        to advise the Client in business and financial matters, and is therefore
        willing
        to engage Consultant upon the terms and conditions set forth herein. Consultant
        desires to be assured, and Client desires to assure Consultant, that Consultant
        will be paid the consideration described herein and said consideration once
        paid
        will be nonrefundable, regardless of the circumstances. 

      

      Consultant
        agrees to be engaged and retained by Client upon the terms and conditions
        set
        forth herein.

      

      NOW,
        THEREFORE, in consideration of the foregoing, of the mutual promises hereinafter
        set forth and for other good and valuable consideration, the receipt and
        sufficiency of which are hereby acknowledged, the Parties hereto agree as
        follows:

      

      
        	
                1.

              	
                Engagement.
                  Client hereby engages Consultant and Consultant hereby accept the
                  engagement to become Consultant to Client and, as requested and
                  applicable, to render such assistance, advice, consultation, information,
                  and services to the Officers and/or Directors of Client regarding
                  general
                  business matters including, but not limited to the following: Business
                  Strategy, Strategic Alliances, Mergers and Acquisitions, Stock
                  Option
                  Plans, Corporate Governance, and analysis regarding Qualification
                  for
                  National Stock Exchanges.

              

      

       

      
        	 	
                1.1.

              	
                Additional
                  Duties.
                  Client and Consultant shall mutually agree, in writing, for any
                  additional
                  duties that Consultant may provide to Client for compensation paid
                  or
                  payable by Client under this Agreement. Although there is no requirement
                  to do so, such additional agreement(s) may be attached hereto and
                  made a
                  part hereof by written amendments to be listed as "Exhibits" beginning
                  with "Exhibit A" and initialed by both
                  parties.

              

      

      

      
        	 	
                1.2.

              	
                Standard
                  of Performance.
                  Consultant shall devote such time and efforts to the affairs of
                  the Client
                  as is reasonably necessary to render the services contemplated
                  by this
                  Agreement. Any work or task of Consultant provided for herein which
                  requires Client to provide certain information to assist Consultant
                  in
                  completion of the work shall be excused (without effect upon any
                  obligation of Client) until such time as Client has fully provided
                  all
                  information and cooperation necessary for Consultant to complete
                  the work.
                  The services of Consultant shall not include the rendering of any
                  legal
                  opinions or the performance of any work that is in the ordinary
                  purview of
                  a certified public accountant, or other licensed professional.
                  Consultant
                  shall not make
                  a market in Client’s securities, engage in stock promotion, or be part of
                  a capital raising transaction. Consultant
                  cannot guarantee results on behalf of Client, but shall use commercially
                  reasonable efforts in providing the services listed
                  above.

              

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

         

      

      
        	
                2.

              	
                Compensation
                  to Consultant. The
                  engagement compensation to Consultant shall be 750,000 shares of
                  Client’s
                  restricted common stock, par value $.001, with piggyback registration
                  rights. The engagement compensation shall be delivered to Consultant
                  within five (5) days of the signing of this Agreement. Note:
                  Consultant shall have no obligation to perform
                  any duties provided for herein if full payment is not received
                  within the
                  time described
                  herein this Section 2. Furthermore, once paid, said engagement
                  fee
                  is nonrefundable
                  regardless of the
                  circumstances.

              

      

      

      
        	 	
                2.1.

              	
                Expenses.
                  If
                  the Client requests that Consultant travel outside of Southern
                  California
                  to perform the services described herein, Client shall reimburse
                  Consultant for travel-related expenses and payment shall be made
                  within
                  seven (7) days of invoice. Notwithstanding the foregoing, all such
                  expenses over $500 shall be pre-approved by the Client prior to
                  being
                  incurred. 

              

      

      

      
        	 	
                2.2.

              	
                Additional
                  Fees.
                  Client and Consultant shall mutually agree upon any additional
                  fees that
                  Client may pay in the future for services rendered by Consultant
                  under
                  this Agreement. Such additional agreement(s) may, although there
                  is no
                  requirement to do so, be attached hereto and made a part hereof
                  as
                  Exhibits beginning with Exhibit A.

              

      

      

      
        	 	
                2.3.

              	
                Term/Termination. This
                  Agreement shall be in effect for six (6) months from the date of
                  the
                  Agreement. Additional extensions may be negotiated as necessary
                  at the
                  mutual written consent of the Client and
                  Consultant.

              

      

      

      
        	
                3.

              	
                Mergers
                  and Acquisitions.
                  Consultant will provide assistance to Client, as mutually agreed,
                  in
                  introducing and/or assisting Client in identifying, acquiring,
                  merging,
                  and/or divesting on a non-exclusive basis, assisting in due-diligence,
                  recommending transaction terms and providing advice and assistance
                  during
                  negotiations, as needed. It is expressly understood that Consultant
                  shall
                  have no power to bind Client to any contract or transaction obligation.
                  

              

      

      

      If
        requested by Client in writing, Consultant will assist the Client with one
        or
        more parties who might be interested in (whether by way of merger,
        consolidation, asset purchase, technology license, or substantially similar
        transaction) either, (a) acquiring some or all of Client’s assets or, (b)
        selling some or all of their own assets to Client and/or, (c) entering into
        some
        form of strategic alliance with Client. In consideration of Consultant’s
        services, Client agrees to pay Consultant ten percent (10 %) of the value
        of the
        transaction in the same ratio of cash and / or stock as the transaction.
“Total
        value” shall include, but is not limited to cash, cash equivalents, stock, and
        the value of any consideration other than cash paid or received by Client.
        Should the transaction be with a party identified and introduced by Client,
        Client agrees to pay Consultant five percent (5%) of the total value of the
        transaction. For consultant to receive such compensation, Consultant and
        Client
        shall agree in writing to each merger and/or acquisition assignment(s) and
        related compensation due and payable to Consultant resulting from the successful
        completion of such transaction(s). Additionally,
        Client and Consultant agree that for any pre-existing initiatives relating
        to
        mergers and acquisitions, compensation arrangements will be negotiated
        separately and will be agreed to in writing by the Parties.

      

      
        	
                4.

              	
                Mutual
                  Indemnification.
                  Either Party agrees to indemnify and hold harmless the other against
                  any
                  and all liability, loss and costs, expenses or damages, including
                  but not
                  limited to, any and all expenses whatsoever reasonably incurred
                  in
                  investigating, preparing or defending against any litigation, commenced
                  or
                  threatened, or any claim whatsoever or howsoever caused by reason
                  of any
                  injury (whether to body, property, personal or business character
                  or
                  reputation) sustained by any person or to any person or property,
                  arising
                  out of any act, failure to act, neglect, any untrue or alleged
                  untrue
                  statement of a material fact or failure to state a material fact
                  which
                  thereby makes a statement false or misleading, or any breach of
                  any
                  material representation, warranty or covenant by either Party or
                  any of
                  its agents, employees, or other representatives. Nothing herein
                  is
                  intended to nor shall it relieve either party from liability for
                  its own
                  willful act, omission or negligence. All remedies provided by law,
                  or in
                  equity shall be cumulative and not in the
                  alternative.

              

      

      

      
        
          
          

        

        
           

          
            

          

        

        
          
          

        

         

      

      
        	
                5.

              	
                Mutual
                  Confidentiality.
                  Consultant and Client each agree to keep confidential and provide
                  reasonable security measures to keep confidential information where
                  release may be detrimental to their respective business interests.
                  Consultant and Client shall each require their employees, agents,
                  affiliates, other licensees, and others who will have access to
                  the
                  information through Consultant and Client respectively, to first
                  enter
                  appropriate non-disclosure Agreements requiring the confidentiality
                  contemplated by this Agreement in perpetuity. Consultant will not,
                  either
                  during its engagement by the Client pursuant to this Agreement
                  or at any
                  time thereafter, disclose, use or make known for its or another's
                  benefit
                  any confidential information, knowledge, or data of the Client
                  or any of
                  its affiliates in any way acquired or used by Consultant during
                  its
                  engagement by the Client. Confidential information, knowledge or
                  data of
                  the Client and its affiliates shall not include any information
                  that is,
                  or becomes generally available to the public other than as a result
                  of a
                  disclosure by Consultant or their
                  representatives.

              

      

      

      
        	
                6.

              	
                Amendments
                  and Modification.
                  This Agreement may be amended, modified and supplemented only by
                  written
                  agreement of Consultant and Client.

              

      

      

      
        	 	
                6.1

              	
                Assignment.
                  This Agreement and all of the provisions hereof shall be binding
                  upon and
                  inure to the benefit of the parties hereto and their respective
                  successors
                  and permitted assigns. The obligations of either party hereunder
                  cannot be
                  assigned without the express written consent of the other
                  party.

              

      

      

      
        	 	
                6.2

              	
                Governing
                  Law; Venue.
                  This Agreement and the legal relations among the parties hereto
                  shall be
                  governed by and construed in accordance with the laws of the State
                  of
                  California, without regard to its conflict of law doctrine. Client
                  and
                  Consultant agree that if any action is instituted to enforce or
                  interpret
                  any provision of this Agreement, the jurisdiction and venue shall
                  be
                  Orange County, California.

              

      

      

      
        	 	
                6.3

              	
                Attorneys'
                  Fees and Costs.
                  If
                  any action is necessary to enforce and collect upon the terms of
                  this
                  Agreement, the prevailing party shall be entitled to reasonable
                  attorneys’
                  fees and costs, in addition to any other relief to which that party
                  may be
                  entitled. This provision shall be construed as applicable to the
                  entire
                  Agreement.

              

      

      

      
        	 	
                6.4

              	
                Survivability.
                  If
                  any part of this Agreement is found, or deemed by a court of competent
                  jurisdiction, to be invalid or unenforceable, that part shall be
                  severable
                  from the remainder of the
                  Agreement.

              

      

      

      
        	 	
                6.5

              	
                Facsimile
                  Signatures.
                  The Parties hereto agree that facsimile signatures may execute
                  this
                  Agreement and such signature shall be deemed originals.
                  

              

      

      

      
        	
                7

              	
                Arbitration. All
                  disputes, controversies, or differences between client, consultant,
                  or any
                  of their officers, directors, legal representatives, attorneys,
                  accountants, agents or employees, or any customer or other person
                  or
                  entity, arising out of, in connection with or as a result of this
                  agreement, shall be resolved through arbitration rather than through
                  litigation. With respect to the arbitration of any dispute, the
                  undersigned hereby acknowledge and agree
                  that:

              

      

      

      
        	 	
                A.

              	
                Arbitration
                  is final and binding on the
                  parties;

              

      

      
        	 	
                B.

              	
                The
                  parties waive their right to seek remedy in court, including their
                  right
                  to jury trial;

              

      

      
        	 	
                C.

              	
                Pre-arbitration
                  discovery is generally more limited and different from court
                  proceeding;

              

      

      
        	 	
                D.

              	
                The
                  arbitrator’s award is not required to include factual findings or legal
                  reasoning and any party’s right of appeal or to seek modification of
                  ruling by the arbitrators is strictly
                  limited;

              

      

      
        	 	
                E.

              	
                This
                  arbitration provision is specifically intended to include any and
                  all
                  statutory claims which might be asserted by any
                  party;

              

      

       

      
        
          
          

        

        
           

          
            

          

        

        
          
          

        

         

      

      
        	 	
                F.

              	
                Each
                  party hereby agrees to submit the dispute for resolution to the
                  American
                  Arbitration Association in Orange County, California within five
                  (5) days
                  after receiving a written request to do so from the other
                  party;

              

      

      
        	 	
                G.

              	
                If
                  either party fails to submit the dispute to arbitration on request,
                  then
                  the requesting party may commence an arbitration proceeding, but
                  is under
                  no obligation to do so;

              

      

      
        	 	
                H.

              	
                Any
                  hearing scheduled after an arbitration is initialed shall take
                  place in
                  Orange County, California;

              

      

      
        	 	
                I.

              	
                If
                  either party shall institute a court proceeding in an effort to
                  resist
                  arbitration and be unsuccessful in resisting arbitration or shall
                  unsuccessfully contest the jurisdiction of any arbitration forum
                  located
                  in Orange County, California, over any matter which is the subject
                  of this
                  agreement, the prevailing party shall be entitled to recover from
                  the
                  losing party its legal fees and any out-of-pocket expenses incurred
                  in
                  connection with the defense of such legal proceeding or its efforts
                  to
                  enforce its rights to arbitration as provided for
                  herein;

              

      

      
        	 	
                J.

              	
                The
                  parties shall accept the decision of any award as being final and
                  conclusive and agree to abide
                  thereby;

              

      

      
        	 	
                K.

              	
                Any
                  decision may be filed with any court as a basis for judgment and
                  execution
                  for collection.

              

      

      

      
        	8.	
                Representations,
                  Warrants and Covenants.
                  The Client represents, warrants and covenants to the Consultant
                  as
                  follows:

              

      

      

      The
        Client has the full authority, right, power and legal capacity to enter into
        this Agreement and to consummate the transactions which are provided for
        herein.
        The execution of this Agreement by the Client and its delivery to the
        Consultant, and the consummation by it of the transactions which are
        contemplated herein have been duly approved and authorized by all necessary
        action by the Client’s Board of Directors and no further authorization shall be
        necessary on the part of the Client for the performance and consummation
        by the
        Client of the transactions which are contemplated by this
        Agreement.

      

      The
        business and operations of the Client have been and are being conducted in
        all
        material respects in accordance with all applicable laws, rules and regulations
        of all authorities which affect the Client or its properties, assets, businesses
        or prospects. The performance of this Agreement shall not result in any breach
        of, or constitute a default under, or result in the imposition of any lien
        or
        encumbrance upon any property of the Client or cause acceleration under any
        arrangement, agreement or other instrument to which the Client is a party
        or by
        which any of its assets are bound. The Client has performed in all respects
        all
        of its obligations which are, as of the date of this Agreement, required
        to be
        performed by it pursuant to the terms of any such agreement, contract or
        commitment.

      

      Consultant,
        on behalf of itself, and its affiliates, hereby covenants and agrees not
        to
        directly or indirectly, offer to "short sell", contract to "short sell",
        or
        otherwise "short sell" the Securities of the Client.

      

      
        	9.	
                Non-Circumvention.
                  In
                  and for valuable consideration, Client hereby agrees that Consultant
                  may
                  introduce (whether by written, oral, data, or other form of communication)
                  Client to one or more opportunities, including, without limitation,
                  natural persons, corporations, limited liability companies, partnerships,
                  unincorporated businesses, sole proprietorships and similar entities
                  (hereinafter an “Opportunity” or “Opportunities”). Client further
                  acknowledges and agrees that the identity of the subject Opportunities,
                  and all other information concerning an Opportunity (including
                  without
                  limitation, all mailing information, phone and fax numbers, email
                  addresses and other contact information) introduced hereunder are
                  the
                  property of Consultant, and shall be treated as confidential and
                  proprietary information by Client, its affiliates, officers, directors,
                  shareholders, employees, agents, representatives, successors and
                  assigns.
                  Client shall not use such information, except in the context of
                  any
                  arrangement with Consultant in which Consultant is directly and
                  actively
                  involved, and never without Consultant’s prior written approval. Client
                  further agrees that neither it nor its employees, affiliates or
                  assigns,
                  shall enter into, or otherwise arrange (either for it/him/herself,
                  or any
                  other person or entity) any business relationship, contact any
                  person
                  regarding such Opportunity, either directly or indirectly, or any
                  of its
                  affiliates, or accept any compensation or advantage in relation
                  to such
                  Opportunity except as directly though Consultant, without the prior
                  written approval of Consultant. Consultant is relying on Client’s assent
                  to these terms and their intent to be bound by the terms by evidence
                  of
                  their signature. Without Client’s signed assent to these terms, Consultant
                  would not introduce any Opportunity or disclose any confidential
                  information to Client as herein
                  described.

              

      

      

      
        
          
          

        

        
           

          
            

          

        

        
          
          

        

      

      
        	
                10.

              	
                Notices.
                  Any notice or other communication required or permitted hereunder
                  must be
                  in writing and sent by either (i) certified mail, postage prepaid,
                  return
                  receipt requested and First Class mail; or (ii) overnight delivery
                  with
                  confirmation of delivery; or (iii) facsimile transmission with
                  an original
                  mailed by first class mail, postage prepaid, or in each case to
                  such other
                  address and facsimile number as shall have last been furnished
                  by like
                  notice. If mailing is impossible due to an absence of postal service,
                  and
                  other methods of sending notice are not otherwise available, notice
                  shall
                  be hand-delivered to the aforesaid addresses. Each notice or communication
                  shall be deemed to have been given as of the date so mailed or
                  delivered,
                  as the case may be; provided, however, that any notice sent by
                  facsimile
                  shall be deemed to have been given as of the date sent by facsimile
                  if a
                  copy of such notice is also mailed by first class mail on the date
                  sent by
                  facsimile; if the date of mailing is not the same as the date of
                  sending
                  by facsimile, then the date of mailing by first class mail shall
                  be deemed
                  to be the date upon which notice
                  given.

              

      

      

      
        	11.	
                Counterparts.
                  This Agreement may be executed simultaneously in one or more counterparts,
                  each of which shall be deemed an original, but all of which together
                  shall
                  constitute one and the same
                  instrument.

              

      

      

      
        	12.	
                Preliminary
                  Statement.
                  The Preliminary Statement is incorporated herein by this reference
                  and
                  made a material part of this Agreement.

              

      

      

      
        	13.	
                Entire
                  Agreement. With
                  respect to the services specific to this Agreement, this Agreement
                  supersedes any and all other agreements, either oral or written,
                  between
                  the parties hereto. Each party to this Agreement acknowledges that
                  no
                  representation, inducements, promises or agreement, orally or otherwise,
                  have been made by any party, or anyone acting on behalf of any
                  party,
                  which are not embodied herein, and that no other agreement, statement,
                  or
                  promise not contained in this Agreement with respect to the services
                  identified shall be valid or binding. Any modification of this
                  Agreement
                  will be effective only if it is in writing and signed by all
                  parties.

              

      

      

      IN
        WITNESS WHEREOF,
        the
        Parties hereto have caused this Agreement to be duly executed, all as of
        the day
        and year indicated above.

      

      

      CONSULTANT:

      

      

      /s/
        Bradley J.
        Wilhite                                
          

      Ascendiant
        Capital Group, LLC

      By:     
        Bradley
        J. Wilhite

      Its:     
        Managing
        Director

      Date:  
        July
        18,
        2005

      

      

      CLIENT:

      

      SmartVideo
        Technologies, Inc.

      

      

      /s/
        Richard E. Bennett,
        Jr.                          
         

      By:     
        Richard
        E. Bennett, Jr.

      Its:     
        President
        & CEO

      Date: 
        July
        18,
        2005EXHIBIT 10.106

THE SECURITIES REFERRED TO HEREIN HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED, NOR QUALIFIED UNDER ANY STATE SECURITIES LAW IN
RELIANCE UPON EXEMPTIONS THEREFROM. THE SECURITIES MAY BE ACQUIRED FOR
INVESTMENT PURPOSES ONLY AND NOT WITH A VIEW TO DISTRIBUTION OR RESALE, AND MAY
NOT BE SOLD, MORTGAGED, PLEDGED, HYPOTHECATED OR OTHERWISE TRANSFERRED OR
OFFERED TO BE SO TRANSFERRED WITHOUT AN EFFECTIVE REGISTRATION STATEMENT FOR
SUCH SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND QUALIFICATION
UNDER APPLICABLE STATE SECURITIES LAWS, OR AN OPINION OF COUNSEL SATISFACTORY TO
THE COMPANY THAT SUCH TRANSACTION SHALL NOT VIOLATE ANY FEDERAL OR STATE
SECURITIES LAWS.

                            STOCK PURCHASE AGREEMENT

      This STOCK PURCHASE AGREEMENT (the "Agreement") is dated March ____, 2005
between the purchaser identified on the signature page hereto and any assignee
of such person (the "Purchaser"), and HiEnergy Technologies, Inc., a Delaware
corporation (the "Company").

1. Purchase and Sale. Purchaser agrees to buy and the Company agrees to sell and
issue to Purchaser, for an aggregate purchase price of ___________________
($__________) in cash (the "Purchase Price"): (a) 200,000 shares of the
Company's authorized and previously unissued common stock at $0.45 per share,
par value $0.001 per share (the "Common Stock"); (b) a warrant (W-____) to
purchase 100,000 shares of the Company's authorized and previously unissued
common stock, par value $0.001 per share, at a purchase price of $0.75 per share
for a term ending five (5) years from the date of the Agreement ; (c) a warrant
(W-___) to purchase 100,000 shares of the Company's authorized and previously
unissued common stock, par value $0.001 per share, at a purchase price of $1.00
per share for a term ending five (5) years from the date of the Agreement; and
(d) a warrant (W-___) to purchase 100,000 shares of the Company's authorized and
previously unissued common stock, par value $0.001 per share, at a purchase
price of $1.25 per share for a term ending five (5) years from the date of the
Agreement (each a "Warrant" and collectively "Warrants"). The Shares, Warrants,
and any shares of common stock issuable upon exercise of the Warrants, are
herein collectively called the "Securities".

2. Representations and Warranties of the Company. The Company hereby makes the
following representations and warranties to the Purchaser:

      (a) Organization and Qualification. The Company is a corporation duly
      incorporated, validly existing and in good standing under the laws of the
      State of Delaware with the requisite corporate power and authority to own
      and use its properties and assets and to carry on its business as
      currently conducted. The Company is duly qualified to conduct business and
      is in good standing as a foreign corporation or other entity in each
      jurisdiction in which the nature of the business conducted or property
      owned by it makes such qualification necessary.

                                       1
<PAGE>

      (b) Authorization. The Company has the requisite corporate power and
      authority to enter into and to consummate the transactions contemplated by
      this Agreement and otherwise to carry out its obligations hereunder. The
      execution and delivery of this Agreement by the Company and the
      consummation of the transaction contemplated hereby have been duly
      authorized by all necessary action on the part of the Company, the
      undersigned is duly authorized to execute this Agreement on behalf of the
      Company, and no further action is required by the Company or its
      shareholders for the Company to execute and consummate this Agreement and
      the transactions contemplated hereby. This Agreement has been duly
      executed by the Company and, when delivered in accordance with the terms
      hereof, and assuming the valid execution hereof by the Purchaser, will
      constitute the valid and binding obligation of the Company enforceable
      against the Company in accordance with its terms, except (a) as such
      enforceability may be limited by bankruptcy, insolvency, reorganization or
      similar laws affecting creditors' rights generally, (b) as enforceability
      of any indemnification and contribution provisions may be limited under
      the federal and state securities laws and public policy, and (c) that the
      remedy of specific performance and injunctive and other forms of equitable
      relief may be subject to equitable defenses and to the discretion of the
      court before which any proceeding therefore may be brought.

      (c) No Conflicts. The execution, delivery and performance of this
      Agreement by the Company and the consummation by the Company of the
      transactions contemplated hereby does not and will not: (i) conflict with
      or violate any provision of the Company's certificate of incorporation or
      bylaws (each as amended through the date hereof), or (ii) conflict with,
      or constitute a default (or an event which with notice or lapse of time or
      both would become a default) under, or give to others any rights of
      termination, amendment or acceleration (with or without notice, lapse of
      time or both) of, any material agreement or indebtedness to which the
      Company is a party or by which any material property or asset of the
      Company is bound or affected, or (iii) result in a violation of any law,
      rule, regulation, order, judgment, decree or other restriction of any
      court, governmental authority or stock market to which the Company or the
      Common Stock is subject.

      (d) Issuance of the Securities. The Shares and the Warrants are duly
      authorized and, when issued and paid for in accordance with the terms
      hereof, will be legally issued, fully paid and nonassessable, free and
      clear of all liens and encumbrances (other than any that are the result of
      any action or inaction of the Purchaser). The shares issuable upon
      exercise of the Warrants, when paid for in accordance with the terms of
      the Warrant, will be legally issued, fully paid and nonassessable, free
      and clear of all liens and encumbrances (other than any that are the
      result of any action or inaction of the Purchaser).

                                       2
<PAGE>

      (f) Disclosure. Neither the Company nor any other Person acting on its
      behalf has provided the Purchaser or their agents or counsel with any
      information that constitutes or may, in the Company's opinion, constitute
      material non-public information.

      (g) Capitalization. The authorized capital stock of the Company is
      comprised of 100,000,000 shares of Common Stock, par value $.001 per
      share, and 20,000,000 shares of Preferred Stock, par value $.001. As of
      March 30, 2005, there were ______________ shares of Common Stock and no
      shares of Preferred Stock outstanding. The Company has a sufficient amount
      of authorized and unissued shares of Common Stock to reserve for issuance,
      under this Agreement and the Warrants, the maximum number of shares
      issuable thereunder initially.

3. Representations and Warranties of the Purchaser. The Purchaser hereby
represents and warrants to the Company as follows:

      (a) Validity. Upon the execution and delivery of this Agreement, and
      assuming the valid execution thereof by the Company, this Agreement shall
      constitute the valid and binding obligation of the Purchaser, enforceable
      against the Purchaser in accordance with its terms, except (a) as such
      enforceability may be limited by bankruptcy, insolvency, reorganization or
      similar laws affecting creditors' rights generally, (b) as enforceability
      of any indemnification and contribution provisions may be limited under
      the federal and state securities laws and public policy, and (c) that the
      remedy of specific performance and injunctive and other forms of equitable
      relief may be subject to equitable defenses and to the discretion of the
      court before which any proceeding therefor may be brought.

      (b) No Conflicts. The execution, delivery and performance of this
      Agreement by the Purchaser and the consummation by the Purchaser of the
      transactions contemplated hereby does not and will not (i) conflict with
      or violate any provision of the Purchaser's or Company's certificate of
      incorporation or bylaws (each as amended through the date hereof), or (ii)
      conflict with, or constitute a default (or an event which with notice or
      lapse of time or both would become a default) under, or give to others any
      rights of termination, amendment or acceleration (with or without notice,
      lapse of time or both) of, any material agreement or indebtedness to which
      the Purchaser is a party or by which any material property or asset of the
      Purchaser is bound or affected, or (iii) result in a violation of any
      order, judgment or decree of any court to which the Purchaser is subject.

      (c) Investment Representations.

            (i) The Purchaser is capable of bearing the economic risks of this
            investment, including the possible loss of the entire investment;

            (ii) The Securities are being acquired for investment only and for
            the Purchaser's own account and not with a view to, or for sale in
            connection with, the distribution thereof, nor with any present
            intention of distributing or selling any of the Securities;

                                       3
<PAGE>

            (iii) The Purchaser understands that the Securities have not been
            qualified under the Delaware Securities Act, as amended, (the "Law")
            or any other applicable state securities laws and that the
            Securities have not been registered under the Securities Act of
            1933, as amended, (the "Act"), and are being offered and sold
            pursuant to exemptions thereunder, and that in this connection the
            Company is relying on the Purchaser's representations set forth in
            this Stock Purchase Agreement;

            (iv) The Purchaser understands and agrees that the Securities may
            not be offered or transferred in any manner unless (i) the
            Securities are subsequently registered under the Act and any
            applicable state securities laws, or (ii) an opinion of counsel
            satisfactory to the Company has been rendered stating that such
            offer or transfer will not violate any applicable federal or state
            securities laws;

            (v) The Purchaser understands and agrees that in addition to any
            other restrictive legend which may be imposed on the certificates,
            the certificates evidencing said Securities will bear substantially
            the following legend or a similar legend:

            THE SECURITIES EVIDENCED HEREBY HAVE NOT BEEN REGISTERED UNDER THE
            SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE SOLD,
            TRANSFERRED, ASSIGNED OR HYPOTHECATED UNLESS PURSUANT TO SEC RULE
            144 (IF AVAILABLE) OR THERE IS AN EFFECTIVE REGISTRATION STATEMENT
            UNDER THE 1933 ACT COVERING SUCH SECURITIES OR THE COMPANY RECEIVES
            AN OPINION OF COUNSEL FOR THE HOLDER OF THESE SECURITIES REASONABLY
            SATISFACTORY TO THE COMPANY, STATING THAT SUCH SALE, TRANSFER,
            ASSIGNMENT OR HYPOTHECATION IS EXEMPT FROM THE REGISTRATION AND
            PROSPECTUS DELIVERY REQUIREMENTS OF THE 1933 ACT.

            (vi) The Purchaser is an Accredited Investor as defined in
            Regulation D under the Act;

            (vii) By executing this Stock Purchase Agreement, the Purchaser
            hereby acknowledges receipt of all such information as the Purchaser
            deems necessary and appropriate to enable the Purchaser to evaluate
            the merits and risks in acquiring the Securities. The Purchaser
            acknowledges receipt of satisfactory and complete information
            covering the business and financial condition of the Company,
            including the opportunity to obtain information regarding the
            Company's financial status, in response to all inquiries in respect
            thereof. The Purchaser has such knowledge and experience in
            financial and business matters that he is capable of evaluating the
            merits and risks of acquiring the Securities and the capacity of
            protecting its own interests in the transaction;

            (viii) The Purchaser has been furnished with the materials relating
            to the Company and the offering of the Securities which he has
            requested, and has been afforded the opportunity to make inquiries
            concerning the Company and such matters as the Purchaser has deemed
            necessary, and has further been afforded the opportunity to obtain
            any additional information required by the Purchaser to the extent
            the Company possesses such information or could acquire it without
            unreasonable effort or expense;

                                       4
<PAGE>

            (ix) The Purchaser has substantial means of providing for its
            current needs and contingencies and has no need for liquidity in
            this investment;

            (x) The Purchaser has determined that the Securities are a suitable
            investment for it and that it could bear a complete loss of its
            entire investment;

            (xi) The Purchaser has relied on its own tax and legal advisor and
            its own investment counselor with respect to the income tax and
            investment considerations of a purchase of the Securities;

            (xii) The Purchaser did not learn of the offering described herein
            through any general advertising or other literature, and it has
            relied only on the information furnished or made available to them
            by the Company described above;

            (xiii) No representations or warranties have been made to the
            Purchaser by the Company, its officers, directors or shareholders or
            any persons acting on behalf of the Company, or any affiliates of
            any of them, other than the representations set forth herein; and

            (xiv) The foregoing representations, warranties and agreements of
            the Purchaser shall survive the sale and issuance of the Securities
            to the Purchaser.

4. Payment. The parties are entering into the Escrow Agreement attached as
Exhibit A (the "Escrow Agreement"), and the Purchaser will wire funds prior to
the Closing Day to the Escrow Agent, as defined in the Escrow Agreement. The
Seller shall notify its transfer agent within one (1) Trading Day thereafter to
deliver the Shares to the Purchaser. On the Closing Day: (x) the Company will
deliver or cause to be delivered to the Purchaser a Warrant and a duly executed
stock certificate representing the number of Shares set forth herein; and (y)
the Escrow Agent will deliver to the Company an amount in United States dollars
equal to the full Purchase Price, via check or wire transfer of immediately
available funds to an account designated in writing by the Company for such
purpose less any out-of-pocket costs. The Seller and Purchaser may mutually
waive their participation in the Escrow Agreement if they so desire.

5. Registration Rights. The Company shall use its best efforts to cause a
Registration Statement on Form SB-2 that includes the Shares and the shares of
Common Stock issuable upon conversion of the Warrant, and remains effective to
April 30, 2006, or any earlier date when all the Shares and the shares of Common
Stock issuable upon conversion of the Warrant are or may be sold under Rule 144.
If the Company has not caused the shares to become registered by October 31,
2005 and the Holder continues to hold the Shares and the Warrant, the Company
will pay a penalty representing a number of securities equal to two percent (2%)

                                       5
<PAGE>

of the Securities originally purchased. Thereafter, the Holder shall be entitled
to receive the same penalty on the last day for each calendar month the Company
has not caused the Shares to become registered. In addition, no such payment is
due to the extent such payment causes the total amount payable for failure to
obtain an effective registration statement to exceed the amount permitted by
law. It is the express intention of the parties that at all times they shall
comply with all applicable laws, including usury laws. This Agreement shall
automatically be modified to the extent necessary to achieve that purpose.

6. Counterparts. This Agreement may be executed in two or more counterparts, all
of which shall be considered one and the same agreement and shall become
effective when counterparts have been signed by each party and delivered to the
other party. This Agreement, once executed by a party, may be delivered to the
other party hereto by facsimile transmission of a copy of this Agreement bearing
the signature of the party so delivering this Agreement, which shall be deemed
fully valid and binding. The parties also agree to forward promptly their
original signature on a copy of this Agreement to the other party.

7. Entire Agreement. This Agreement contains the entire understanding of the
parties with respect to the matters covered herein and, except as specifically
set forth herein, neither the Company nor the Purchaser make any representation,
warranty, covenant or undertaking with respect to such matters. No provision of
this Agreement may be amended other than by an instrument in writing signed by
the Company and Purchaser.

8. Severability. In the event that any provision of this Agreement shall be
determined to be invalid or unenforceable by any court of competent
jurisdiction, the remainder of this agreement shall not be affected thereby, and
any invalid or unenforceable provision shall be reformed so as to be valid and
enforceable to the full extent permitted by law.

9. Notices. Any and all notices or other communications or deliveries required
or permitted to be provided hereunder shall be in writing and shall be deemed
given and effective on the earlier of (i) the date of transmission, if such
notice or communication is delivered via facsimile at the facsimile telephone
number specified for notice prior to 5:00 p.m., eastern time, on a Trading Day,
(ii) the Trading Day after the date of transmission, if such notice or
communication is delivered via facsimile at the facsimile telephone number
specified for notice later than 5:00 p.m., eastern time, on any date and earlier
than 11:59 p.m., eastern time, on such date, (iii) the Trading Day following the
date of mailing, if sent by nationally recognized overnight courier service or
(iv) actual receipt by the party to whom such notice is required to be given.
The addresses for such communications shall be with respect to the Purchaser,
addressed to such Purchaser at his last known address or facsimile number
appearing on the books of the Issuer maintained for such purposes, with a copy
to the Purchaser's legal counsel, if designated by Purchaser, or with respect to
the Issuer, addressed to:

                        HiEnergy Technologies, Inc.
                        1601B Alton Parkway
                        Irvine, California 92606
                        Attention: Secretary
                        Tel. No.: (949) 757-0855
                        Fax No.: (949) 757-1477

                                       6
<PAGE>

Any party hereto may from time to time change its and its counsel's address for
notices by giving at least ten (10) days written notice of such changed address
to the other party hereto.

                            [SIGNATURE PAGE FOLLOWS]

                                       7
<PAGE>

      IN WITNESS WHEREOF, the parties hereto have caused this Stock Purchase
Agreement to be duly executed by their respective authorized signatories as of
the date first indicated above.

                        COMPANY:
                        HIENERGY TECHNOLOGIES, INC.

                        By:
                            -----------------------------------------
                        Name:  Bogdan C. Maglich
                        Title: Chairman, Chief Executive Officer and Treasurer

                        PURCHASER:
                        Print or Type Name in which Title is to be Held:

                        By:
                            -----------------------------------------
                        Name:

                                       8
<PAGE>

                                   ASSIGNMENT

The Purchaser may in the future assign the foregoing Agreement to an assignee of
the Purchaser's choice. The Purchaser may use the following assignment form.

FOR VALUE RECEIVED, the above-signed Purchaser, _________________, pursuant to
the provisions of the within Stock Purchase Agreement hereby assigns and
transfers unto ________________________ the rights, titles and interests of
Purchaser under the within Stock Purchase Agreement and all rights evidenced
thereby and does irrevocably constitute and appoint ________________________,
attorney, to transfer the Shares and Warrant W-____ on the books of the within
named corporation.

Dated:            ________________

Assignor Name:    ______________________________

Signature:        ______________________________

Address:          ______________________________
                  ______________________________
Tax ID. No.:      ______________________________

Assignee Name:    ______________________________

Address:          ______________________________
                  ______________________________

Tax ID. No.:      ______________________________

                                       9

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