Document:

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                                  EXHIBIT 10.16

          ASSIGNMENT, ASSUMPTION AND AMENDMENT OF EMPLOYMENT AGREEMENT

                    BY AND AMONG HIENERGY TECHNOLOGIES, INC.,

                   HIENERGY MICRODEVICES, INC. AND MICHAL LEVY

     THIS  ASSIGNMENT,  ASSUMPTION  AND AMENDMENT AGREEMENT (the "Agreement") is
entered  into  as  of  the  17th  day  of September, 2002, by and among HiEnergy
                           -----
Technologies,  Inc.  (the  "Parent" or the "Company"), a Washington corporation,
HiEnergy  Microdevices,  Inc.  (the  "Subsidiary"),  a Delaware corporation, and
Michal  Levy  ("Levy"),  individually  (together,  the  "parties").

                                    RECITALS

     WHEREAS, a letter employment agreement (the "Subsidiary Employment
Agreement") was entered into by and between the Subsidiary and Levy on February
28, 2002; and

     WHEREAS, a letter employment agreement (the "Parent Employment Agreement")
was entered into by and between the Parent and Levy on May 28, 2002; and

     WHEREAS, the Subsidiary Employment Agreement contains a provision granting
Levy 1,000 shares of the Subsidiary's Class A common stock (the "Shares") and an
option to purchase 4,000 shares of the Subsidiary's Class A common stock (the
"Option"), which grant was approved by resolution of the Board of Subsidiary at
a meeting held on March 11, 2002; and

     WHEREAS, the Option was converted into 4,000 shares of Class A common stock
subject to payment of a promissory note in the amount of $3.50 per share or
$14,000; and

     WHEREAS, the Subsidiary desires to assign to the Parent and the Parent
desires to assume from the Subsidiary the Subsidiary Employment Agreement,
rescind the Parent Employment Agreement and amend the Subsidiary Employment
Agreement;

NOW THEREFORE, in consideration of the promises and mutual covenants set forth
in this Agreement, the parties hereby agree as follows:

1.     AMENDMENT  NO.  1  TO  EMPLOYMENT  AGREEMENT

a.     Definitions;  References.  All  capitalized  terms used in this Agreement
       ------------------------
not  defined  herein  shall  have  the  meanings  given  them  in the Subsidiary
Employment  Agreement. References in this Agreement to the Subsidiary Employment
Agreement  shall  mean  the  Subsidiary Employment Agreement as modified by this
Agreement.

b.     Unwind  of  the  Parent  Employment Agreement. The Parent and Levy hereby
       -----------------------------------------
agree to rescind the Parent Employment Agreement and treat it as if it had never

                                     Page 1
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been executed. Levy agrees to release and forever discharge the Parent, its
principals,  partners,  agents and employees from all claims, costs and expenses
incurred  by  Levy  arising  from  or  related to the actions and conduct of the
Parent  and/or  its officers, directors, employees, or agents in connection with
the  execution  and  subsequent  rescission  of the Parent Employment Agreement.

c.     Effect  of  Amendments  to  the  Subsidiary  Employment  Agreement.  This
       ------------------------------------------------------------------
Agreement  modifies  the  Subsidiary  Employment  Agreement.  The  Subsidiary
Employment Agreement, as amended by this Agreement, is in full force and effect,
and the parties hereby ratify and affirm the same. In the event of any conflict
between the provisions of the Employment Agreement and this Amendment No. 1, the
provisions of this Amendment No. 1 shall control.

d.     Amendment  of  Subsidiary Employment Agreement. The Subsidiary Employment
       ----------------------------------------------
Agreement  is  hereby  amended  as  follows:

(1)  Instead  of  "the  position  of  Vice  President  / Corporate Secretary for
     HiEnergy  Microdevices,  Inc.,"  the  Subsidiary Employment Agreement shall
     read  "the  position  of  Vice  President / Corporate Secretary of HiEnergy
     Technologies,  Inc."

(2)  Instead  of  "the position will be part-time, averaging 2.5 days per week,"
     the  Subsidiary  Employment  Agreement  shall  read  "the position shall be
     full-time,  averaging  at  least  40  hours  per  week."

(3)  All  language  pertaining  to  compensation  in  the  Subsidiary Employment
     Agreement  is  hereby  superseded  and  replaced  by  the  following:

     -    Gross  Salary:  $1,750.00  per  week;  and
     -    Car  Allowance:  $100  per  week;  and
     -    Stock  Option:  a non-qualified stock option to purchase 89,410 shares
          of  HiEnergy  Technologies,  Inc.  common  stock  at  $0.157 per share
          vesting  immediately;  and
     -    Stock: up to 22,356 shares of HiEnergy Technologies, Inc. common stock
          to be issued to you at the rate of 5,589 shares per three-month period
          commencing  on  February  24,  2002  (to  be  paid  at the end of each
          three-month  period  that  you  remain  an  employee  of  HiEnergy
          Technologies,  Inc.).

(4)     The  second  sentence  in  the  last  paragraph on the first page of the
Subsidiary  Employment  Agreement  is  hereby  superseded  and  replaced  by the
following:  "The grant of the stock option to you is contingent upon approval of
the  grant  by  the  Board  of  Directors."

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     e.  Purpose  and  Effect.  The  purpose  of this Agreement is to assign the
         --------------------
Subsidiary  Employment  Agreement from the Subsidiary to the Parent and to amend
the  Subsidiary  Employment  Agreement  as  provided  herein.

2.     CANCELLATION  OF  OPTION

     Levy  hereby  agrees to rescind the issuance of the Shares and the grant of
the Option to her by the Subsidiary through the Subsidiary Employment Agreement.
The  Parties  agree  that  the  Shares and the Option are hereby cancelled. Upon
execution  of this Agreement, Levy no longer holds the Option to purchase shares
of  the  Subsidiary's  common  stock  pursuant  to  the  Subsidiary  Employment
Agreement.  Upon receipt of the Shares and any shares underlying the Option from
Levy, along with executed blank stock powers, the Subsidiary will no longer have
any  securities  outstanding in the name of Levy nor will it have any obligation
to  issue  any  of  its  securities  to  Levy.

3.     ASSIGNMENT  AND  ASSUMPTION

     The  Subsidiary  hereby assigns all of its right, title and interest in and
to  the Subsidiary Employment Agreement to the Parent. The Parent hereby accepts
such  assignment,  assumes  all obligations of the Subsidiary arising out of the
Employment  Agreement  and  agrees to indemnify and hold the Subsidiary harmless
from  any  liabilities,  claims  or  demands  based  upon  or  arising under the
Subsidiary  Employment  Agreement.  Levy  hereby  consents to the assignment and
assumption  of  the  Subsidiary  Employment  Agreement and agrees to release and
forever discharge the Subsidiary, its principals, partners, agents and employees
from  all claims, costs and expenses incurred by Levy arising from or related to
the  actions  and  conduct  of  the  Subsidiary  and/or its officers, directors,
employees  or  agents  in  connection  with the assignment and assumption of the
Subsidiary  Employment  Agreement.

4.     OTHER PROVISIONS

a.     Applicable Law and Forum.  This Agreement shall be construed and enforced
       ------------------------
     according to the laws of the State of California. All legal actions arising
under  this  Agreement  shall  be  instituted  in,  and  each  party consents to
jurisdiction  in  the  County  of  Orange,  State  of  California.

b.     Notices.  Any  notice  or other communication required or permitted under
       -------
this  Agreement shall be given in writing and delivered by hand or by registered
or  certified  mail,  postage  prepaid  and  return  receipt  requested,  to the
following  persons  (or  their  successors  pursuant  to  due  notice):

     If to the Parent:          HiEnergy Technologies, Inc.
                                10 Mauchly Drive
                                Irvine, CA  92618
                                Attn: President

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     If to the Subsidiary:      HiEnergy Microdevices, Inc.
                                10 Mauchly Drive
                                Irvine, CA  92618
                                Attn: President

     If to Levy:                Ms. Michal Levy
                                _______________________
                                ________________________

Such  address may be changed from time to time by any party by providing written
notice  to  the  other  parties  in  the  manner  set  forth  above.

c.     Waiver.  The  failure  of  the  parties  to enforce any provision of this
       ------
Agreement shall not be construed as a waiver or limitation of that party's right
     to  subsequently  enforce and compel strict compliance with every provision
of  this  Agreement.

d.     Entire  Agreement.  This  Agreement  constitutes  the  entire  agreement
       -----------------
between  the  parties.

e.     Amendments.  This  Agreement  may be modified or amended if the amendment
       ----------
is  made  in  writing  and  is  signed  by  all  parties.

f.     Severability.  If one or more provisions of this Agreement are held to be
       ------------
     invalid  or  unenforceable under applicable law, such provision(s) shall be
excluded  from  this  Agreement  and  the  balance  of  the  Agreement  shall be
interpreted  as  if  such provision(s) were excluded and shall be enforceable in
accordance  with  its  terms.

IN WITNESS WHEREOF, and in acknowledgment that the parties hereto have read and
understood each and every provision hereof, the parties have executed this
Agreement on the date first set forth above.

HIENERGY MICRODEVICES, INC.                  HIENERGY TECHNOLOGIES, INC.

By:     /s/ Gregory F. Gilbert               By:     /s/ Barry Alter
     ------------------------------                ---------------------------
      Gregory F. Gilbert, President                Barry Alter, President and
CEO

     /s/ Michal Levy
--------------------------
Michal Levy, Individually

                                     Page 4

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                                  EXHIBIT 10.17

                             STOCK OPTION AGREEMENT
                           (NONQUALIFIED STOCK OPTION)

EMPLOYEE/OPTIONEE:          Michal Levy

NUMBER OF SHARES:           89,410

OPTION EXERCISE PRICE:      $0.157 per  Share

DATE OF GRANT:              September 17, 2002

EXERCISE TERM:              Through September 16, 2007

VESTING:                    Immediate

     THIS OPTION AGREEMENT (the "AGREEMENT") is entered into effective as of the
  17th  day  of  September, 2002 by and between HIENERGY TECHNOLOGIES, INC. (the
-------
"Company"),  a  Washington corporation, and the individual designated above (the
"Optionee").

                                    RECITALS
                                    --------

A.   An  employment  agreement (the "Employment Agreement") was executed between
     the  Optionee and HiEnergy Microdevices, Inc., a Delaware corporation and a
     majority-owned  subsidiary  of  the  Company,  on  February 26, 2002, which
     confirmed  the  grant  of  an  option  to purchase 4,000 shares of HiEnergy
     Microdevices,  Inc.  common stock to the Optionee with an exercise price of
     $3.50  per  share;  and

B.   Based on the same exchange rate as the voluntary share exchange transaction
     between  the  Company  and  HiEnergy  Microdevices, Inc. that took place on
     April  25,  2002,  the  Board  of Directors of the Company has approved the
     grant  to  the  Optionee  of  an  option  to  purchase 89,410 shares of the
     Company's  common  stock  pursuant  to  Rule  506 of Regulation D under the
     Securities  Act of 1933, as amended, in exchange for canceling her HiEnergy
     Microdevices,  Inc.  option  and other transactions taken or proposed to be
     taken  in  connection  with  such  HiEnergy  Microdevices, Inc. option; and

C.   The Optionee performs valuable services for the Company and its subsidiary,
     HiEnergy  Microdevices,  Inc.;

Stock Option Agreement, Michal Levy - Page 1
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NOW,  THEREFORE, the parties agree to the terms and conditions herein, including
the  recitals.

1.     GRANT OF OPTION.

     1.1     Option.  An  option  to  purchase  shares  of  the Company's Common
             ------
Stock,  par  value  $0.0001  per  share, (the "Shares") is hereby granted to the
Optionee  (the  "Option").

     1.2     Number  of  Shares.  The  number  of  Shares  that the Optionee can
             ------------------
purchase  upon  exercise  of  the  Option  is  set  forth  above.

     1.3     Option Exercise Price.  The price the Optionee must pay to exercise
             ---------------------
the  Option  (the  "Option  Exercise  Price")  is  set  forth  above.

     1.4     Date  of  Grant.  The  date  the  Option  is  granted (the "Date of
             ---------------
Grant")  is  set  forth  above.

     1.5     Type of Option.  The Option is intended to be a Non-qualified Stock
             --------------
Option.  It  is  not intended to qualify as an Incentive Stock Option within the
meaning  of  Section  422  of the Internal Revenue Code of 1986, as amended from
time  to  time,  or  any  successor  provision  thereto.

     1.6     Condition.  The  Option  is conditioned on the Optionee's execution
             ---------
of  this Agreement. If this Agreement is not executed by the Optionee, it may be
canceled  by  the  Board.

2.     DURATION.

     The  Option  shall  be exercisable to the extent and in the manner provided
herein  during  the  Exercise Term, which is set forth above; provided, however,
that  the Option may be earlier terminated as provided in Section 1.6 or Section
5  hereof  or  in  the  Employment  Agreement.

3.     VESTING.

     The  Option  is  fully  vested,  and  may be exercised, with respect to the
Shares,  subject to earlier termination of the Option as provided in Section 1.6
and  Section  5  hereof  or  in  the  Employment  Agreement.

4.     MANNER OF EXERCISE AND PAYMENT.

     4.1     To  exercise the Option, the Optionee must deliver a completed copy
of  the  Option  Exercise  Form,  attached  hereto  as Exhibit A, to the address
indicated on such Form or such other address designated by the Company from time
to  time.  Contemporaneously  with the delivery of the Option Exercise Form, the

Stock Option Agreement, Michal Levy - Page 2

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Optionee  shall tender the Option Exercise Price to the Company, by cash, check,
wire  transfer or such other method of payment (e.g., delivery or attestation of
Shares  already  owned)  as  may be acceptable to the Company. The Option may be
exercised  in  whole or in part with respect to the vested Shares. Within thirty
(30)  days  of  delivery  of  the  Option Exercise Form and tender of the Option
Exercise  Price, the Company shall deliver certificates evidencing the Shares to
the  Optionee, duly endorsed for transfer to the Optionee, free and clear of all
liens,  security  interests,  pledges  or  other  claims  or  charges.

     4.2     The  Optionee  shall  not be deemed to be the holder of, or to have
any  of  the rights of a holder with respect to any Shares subject to the Option
until  (i)  the  Option  shall have been exercised pursuant to the terms of this
Agreement  and  the  Optionee  shall  have  paid the full purchase price for the
number  of Shares in respect of which the Option was exercised, (ii) the Company
shall  have  issued  and  delivered  the  Shares  to the Optionee, and (iii) the
Optionee's  name shall have been entered as a stockholder of record on the books
of  the  Company,  whereupon  the  Optionee  shall  have  full  voting and other
ownership  rights  with  respect  to  such  Shares.

5.     TERMINATION  OF  EMPLOYMENT.

     5.1     Termination  of Employment Due to Death.  In the event of the death
             ---------------------------------------
of  the  Optionee, who at the time of her death was an Employee and who had been
in  Continuous  Status as an Employee since the date of the grant of the option,
any vested Option shall terminate on the earlier of (i) six (6) months after the
date  of the Optionee's death, or (ii) the expiration date otherwise provided in
this Agreement. Under these circumstances, the Option will be exercisable at any
time  prior  to  such termination by the Optionee's estate, or by such person or
persons  who  have  acquired  the  right to exercise the Option by bequest or by
inheritance  or  by  reason  of  the death of the Optionee. Any nonvested Option
terminates  immediately  upon  the  death  of  the  Optionee.

     5.2     Termination  of  Employment  Due  to  Disability. If the Optionee's
             ------------------------------------------------
status  as  an  Employee  is  terminated at any time during the Option period by
reason  of a disability (within the meaning of Section 22(e)(3) of the Code) and
if  the Optionee had been in Continuous Status as an Employee at all times since
the  date  of  grant  of  the  Option,  any vested Option shall terminate on the
earlier  of (i) six (6) months after the date of termination of her status as an
Employee  or  Consultant, or (ii) the expiration date otherwise provided in this
Agreement.  Any  nonvested Option terminates immediately upon termination of the
Optionee's  status  as  an  Employee.

     5.3     Termination  of  Employment  for  Other  Reasons.  If  the
             ------------------------------------------------
Optionee's status as an Employee is terminated by the Optionee at any time after
the  grant  of  an  Option  for  any  reason  other than death or disability, as
provided  in  Sections  5.1 and 5.2, and not for "cause" as provided below, then
any  vested  Option  terminates on the earlier of (i) three (3) months after the
date  of  termination  of her status as an Employee, or (ii) the expiration date
otherwise provided in the Option agreement. Any nonvested Options are terminated
immediately  upon  termination  of  Optionee's  status  as  an  Employee. If the
Optionee's  status  as  an  Employee is terminated for "cause" (such termination

Stock Option Agreement, Michal Levy - Page 3

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being referred to as a "Termination for Cause") at any time by the Company after
the grant of an Option by the Company, then the Option terminates on the date of
termination  of  Optionee's  status as an Employee. For purposes of this Section
5.3, Termination for Cause shall mean a termination due to objective evidence of
any  of the following:  (i) conviction of a felony; (ii) illegal conduct that is
injurious  to  the  Company;  (iii)  willful or gross misconduct in carrying out
duties;  (iv)  material  dishonesty  related  to  employment;  or  (v)  fraud.

     5.4     Employment by Subsidiary.  For purposes of this Section and Section
             ------------------------
8, employment with the Company includes employment with any Parent or Subsidiary
of  the  Company  and  service  as  a  Director  of the Company or any Parent or
Subsidiary  shall  be  considered  employment  with  the  Company.  A  change of
employment  between  the  Company  and  any  Parent  or  Subsidiary  (or between
Subsidiaries  or  between  a  Subsidiary  and  a Parent) is not a termination of
employment  under  this  Agreement.

6.     TRANSFERABILITY.

     The  Option  shall not be transferable other than by will or by the laws of
descent  and distribution. During the lifetime of the Optionee, the Option shall
be  exercisable  only  by  the  Optionee.

7.     RESTRICTIONS ON THE OPTIONS; RESTRICTIONS ON THE SHARES.

     The  Option  may  not  be  exercised  at any time unless, in the opinion of
counsel  for  the  Company, the issuance and sale of the Shares issued upon such
exercise  is  exempt  from  registration  under  the  Securities Act of 1933, as
amended,  or  any  other  applicable  federal  or  state securities law, rule or
regulation, or the Shares have been duly registered under such laws. The Company
shall  not  be required to register the Shares issuable upon the exercise of the
Option  under  any  such  laws. Unless the Shares have been registered under all
applicable laws, the Optionee shall represent, warrant and agree, as a condition
to  the  exercise  of  the  Option,  that  the  Shares  are  being purchased for
investment  only  and  without a view to any sale or distribution of such Shares
and  that  such  Shares  shall  not  be transferred or disposed of in any manner
without  registration  under  such laws, unless it is the opinion of counsel for
the  Company  that  such  a  disposition  is  exempt from such registration. The
Optionee  acknowledges  that  an appropriate legend, in such form as the Company
shall  determine,  giving  notice  of  the  foregoing  restrictions shall appear
conspicuously on all certificates evidencing the Shares issued upon the exercise
of  the  Option.

     The  Optionee  also  acknowledges  and  agrees that, in connection with any
public  offering  of  the  Company's  stock,  upon request of the Company or the
underwriters  managing  any  underwritten public offering of the Company's stock
and  making  such request with the approval of the Company's Board of Directors,
not to sell, make any short sale of, loan, grant any option for the purchase of,
or  otherwise  dispose of any of her Shares without the prior written consent of
the Company or such underwriters, as the case may be, from the effective date of
such  registration  for  so long as the Company or the underwriters may specify,
but  in  any  event  not  to  exceed  180  days.

Stock Option Agreement, Michal Levy - Page 4
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8.     NO RIGHT TO CONTINUED EMPLOYMENT.

     Nothing  in this Agreement shall be interpreted or construed to confer upon
the  Optionee any right with respect to continuance of employment by the Company
or  any Parent or Subsidiary, nor shall this Agreement interfere in any way with
the  right  of the Company or a Parent or Subsidiary to terminate the Optionee's
employment  at  any  time.

9.     ADJUSTMENTS UPON CERTAIN EVENTS.

     9.1     Adjustments  Upon  Changes  in  Capitalization.  Subject  to  any
             ----------------------------------------------
required  action  by  the  shareholders of the Company, the event of a change in
capitalization,  such  as a stock split or other subdivision or consolidation of
Shares  or  the  payment of any stock dividend consisting of Shares or any other
increase  or  decrease  in  the  number  of  Shares  effected without receipt of
consideration  by  the  Company,  the  Company  shall  make  appropriate  and
proportionate  adjustments  to  the  number  and  class of Shares subject to the
Option  and  the  purchase  price  for such Shares or other stock or securities;
provided, however, that conversion of the Option will not be deemed to have been
"effected  without  receipt  of consideration". Any adjustments as a result of a
change  in  the Company's capitalization will be made by the Board of Directors,
whose  determination in that respect is final, binding and conclusive. Except as
otherwise  expressly  provided  in this Section 9.1, any issue by the Company of
shares  of stock of any class, or securities convertible into shares of stock of
any  class,  shall  not affect the number of Shares or the exercise price of the
Shares  subject to the Option, and no adjustments in the Option shall be made by
reason thereof. The grant of this Option does not in any way affect the right or
power  of the Company to make adjustments, reclassifications, reorganizations or
changes  of  its  capital  or  business  structure.

     9.2     Liquidation  or  Dissolution.  In  the  event  of  a liquidation or
             ----------------------------
dissolution, any unexercised options will terminate. The Board of Directors may,
in its discretion, provide that the Optionee will have the right to exercise the
Optionee's  Option  as to all of the optioned stock prior to the consummation of
the  liquidation  or  dissolution.

     9.3     Change  of  Control,  Merger, Sale of Assets, Etc.  In the event of
             -------------------------------------------------
the  sale or other transfer of the outstanding shares of stock of the Company in
one  transaction  or  a  series  of  related  transactions  or  a  merger  or
reorganization  of  the  Company  with  or  into  any  other  corporation, where
immediately  following  the  transaction, those persons who were shareholders of
the  Company  immediately  before  the  transaction control less than 50% of the
voting  power  of the surviving organization (a "change of control event") or in
the  event  of a proposed sale of substantially all of the assets of the Company
(collectively, "sale transaction"), the Option shall be assumed or replaced with
a  substitute  equivalent  option.

Stock Option Agreement, Michal Levy - Page 5
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10.     WITHHOLDINGS OF TAXES.

     The Company shall have the right to deduct from any distribution of cash to
the  Optionee  an  amount equal to the federal, state and local income taxes and
other  amounts  as  may  be  required  by  law to be withheld (the "Withholdings
Taxes")  with  respect  to  the  Option.  If the Optionee is entitled to receive
Shares  upon  exercise  of  the  Option, the Optionee shall pay the Withholdings
Taxes  (if  any) to the Company in cash prior to the issuance of such Shares. In
satisfaction of the Withholdings Taxes, the Optionee may make a written election
(the "Tax Election"), which may be accepted or rejected in the discretion of the
Company,  to  have  withheld a portion of the Shares issuable to him or her upon
exercise  of  the  Option,  having  an  aggregate Fair Market Value equal to the
Withholdings  Taxes,  provided that, if the Optionee may be subject to liability
under  Section  16(b)  of  the  Exchange  Act, the election must comply with the
requirements  applicable  to  Share  transactions  by  such  Optionees.

11.     MODIFICATION OF AGREEMENT.

     This  Agreement  may be modified, amended, suspended or terminated, and any
terms  or conditions may be waived, only by a written instrument executed by the
parties  hereto.

12.     SEVERABILITY.

     Should  any  provision  of  this  Agreement be held by a court of competent
jurisdiction  to  be  unenforceable  or  invalid  for  any reason, the remaining
provisions  of  this  Agreement shall not be affected by such holdings and shall
continue  in  full  force  in  accordance  with  their  terms.

13.     GOVERNING LAW.

     The  validity,  interpretation,  construction  and  performance  of  this
Agreement  shall  be  governed  by  the  laws of the State of California without
giving  effect  to  the  conflicts  of  laws  principles  thereof.

14.     SUCCESSORS IN INTEREST.

     This  Agreement  shall  be  binding  upon, and inure to the benefit of, the
Company  and  its successors and assigns, and upon any person acquiring, whether
by  merger,  consolidation,  reorganization,  purchase  of  stock  or assets, or
otherwise,  all  or substantially all of the Company's assets and business. This
Agreement  shall  inure  to  the  benefit  of  the  Optionee's  heirs  and legal
representatives.  All  obligations  imposed  upon  the  Optionee  and all rights
granted  to  the  Company  under  this  Agreement  shall  be  final, binding and
conclusive  upon the Optionee's heirs, executors, administrators and successors.

Stock Option Agreement, Michal Levy - Page 6
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15.     RESOLUTION OF DISPUTES.

     Any dispute or disagreement which may arise under, or as a result of, or in
any  way  relate  to,  the  interpretation,  construction or application of this
Agreement  shall  be  determined  by  the Board of Directors of the Company. Any
determination  made  hereunder  shall  be  final,  binding and conclusive on the
Optionee  and  the  Company  for  all  purposes.

     IN  WITNESS  WHEREOF, the parties have executed this Agreement effective as
of  the  date  first  above  written.

               HIENERGY TECHNOLOGIES, INC.

     By:     /s/ Barry Alter
             ----------------------

     Name:     Barry Alter
             ----------------------

     Title:    CEO and President
             ----------------------

     By  signing  below,  Optionee  hereby accepts the Option subject to all its
terms  and  provisions.

     OPTIONEE

     Signature:     /s/ Michal Levy
                    ---------------

     Name:              Michal Levy
                   -----------------

                               [EXHIBIT  FOLLOWS]

Stock Option Agreement, Michal Levy - Page 7
<PAGE>
                                    EXHIBIT A

                              OPTION EXERCISE FORM
                              --------------------

To:  HiEnergy Technologies, Inc.

(1)     The  undersigned  hereby  elects to purchase the number of shares of the
Common  Stock  of  HiEnergy  Technologies, Inc. (the "Company") set forth below,
pursuant  to  the  terms of the Stock Option Agreement dated __________________,
2002, tendering simultaneous full payment of the Total Option Exercise Price for
such  shares.

     Number of Shares:                           _______________  Shares

     Option Exercise Price Per Share:           x   $____________ per Share

     Total Option Exercise Price:               =   $____________

(2)     In exercising this Option, the undersigned hereby confirms and
acknowledges that:

a)     the  shares of Common Stock to be issued upon exercise are being acquired
solely  for  the  account  of the undersigned and not as a nominee for any other
party;  and

b)     the shares of Common Stock to be issued upon exercise are not acquired
with a view toward distribution; and

c)     the undersigned is an "accredited investor" as that term is defined in
Rule 501 of Regulation D under the Securities Act of 1933, as amended, and as
provided in the Subscription Agreement; and

d)     the undersigned will not offer, sell or otherwise dispose of any such
shares of Common Stock except pursuant to an effective registration, or an
exemption therefrom, under the Securities Act of 1933, as amended, together with
a similar exemption under the securities laws of all applicable jurisdictions;
and

e)     the undersigned otherwise reaffirms all representations, warranties, and
indemnifications contained in the Stock Option Agreement and Certificate of
Representations, Warranties and Covenants, including, but not limited to, those
contained in Section 7 of the Stock Option Agreement; and

f)     the undersigned has reviewed all of Company's public filings with the
Securities and Exchange Commission; and

Options Exercise Form - Page 1

<PAGE>

g)     the undersigned consents to delay the exercise of the Option until, in
the Company's judgment, the Company has disclosed any additional matters that
need to be disclosed to the undersigned, beyond those contained in the public
filings with the Securities and Exchange Commission.

(3)     Subject  to  Section  (2),  please  issue  a certificate or certificates
representing  said  shares  of  Common  Stock  in the name of the undersigned as
instructed.

(4)     Please  issue  a  new Option for the unexercised portion of the attached
Option  in  the  name  of  the  undersigned.

This __________ day of, ____________, _____:

______________________________________
Signature

______________________________________
Print Name of Signatory

______________________________________
Name of Entity (if applicable)

Send  or  deliver  this  Form  with  an  original  signature  to:

HiEnergy Technologies, Inc.
Attn:  President
10 Mauchly Drive
Irvine, CA  92618
USA

Option Exercise Form - Page 2
<PAGE>

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