Document:

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                                  EXHIBIT 10.32

                      SEABURY TRANSPORTATION ADVISORS LLC

December 16, 2002

CONFIDENTIAL

Mr. Thomas Pascoe
President & Chief Executive Officer
HiEnergy Technologies, Inc.
1601 Alton Parkway, Unit B
Irvine, California 92606

Re: Engagement of Seabury

Gentlemen:

This  letter  agreement  (this  "Agreement")  confirms the engagement of Seabury
Transportation  Advisors  LLC  and  the designated NASD-registered broker-dealer
affiliate  of  Seabury  Transportation Advisors LLC, (collectively "Seabury") by
HiEnergy  Technologies, Inc. ("HiEnergy" or the "Company") as placement agent to
arrange  the  sale  of  equity or equity-linked securities (the "Securities") on
behalf  of the Company. The sale of Securities (the "Financing" or "Financings")
may  occur  through  a private placement pursuant to one or more exemptions from
registration  under  the  Securities  Act  of  1933, as amended (the "Securities
Act"),  and  in  compliance  with applicable securities laws of states and other
jurisdictions  ("Blue  Sky  Laws").

     1.     Retention.  Subject  to  the terms and conditions of this Agreement,
HiEnergy  hereby  engages  Seabury  to act on behalf of the Company as placement
agent  during the Authorization Period (as defined below) to arrange the sale of
Securities  in  the  amount  of  approximately  $15  million  and  on  terms and
conditions  satisfactory  to  the  Company  and  Seabury  hereby  accepts  such
engagement.

Subject  to the exceptions set forth below, (a) during the Authorization Period,
HiEnergy shall not, and shall not permit its affiliates or their representatives
to,  directly  or indirectly, (i) offer any Securities for sale to, or otherwise
contact,  discuss  or  negotiate  with  respect  to  any  offer  or  sale of any
Securities  with, any person, (ii) authorize anyone other than Seabury to act on
behalf  of  the Company to place any Securities or (iii) have any discussions or
negotiations  with  any  person other than Seabury with respect to engaging such
person  as  a  finder,  broker, dealer, agent or financial advisor in connection
with  any  sale  of  Securities;  and  (b)  HiEnergy  shall, and shall cause its
affiliates  and its and their officers, directors, employees and representatives
to,  promptly  refer  to Seabury all offers, inquiries and proposals relating to
any  Securities  received  at  any  time  during  the  Authorization  Period.

Although  Seabury  is retained on a non-exclusive basis by HiEnergy, the Company
agrees  that HC Wainwright is the only financial intermediary currently retained
by  the  company  and  is  focused on individual investors.  Wainwright will not
approach  institutional  investors  or strategic partners without the consent of
both  Seabury  and  HiEnergy.  In  addition,  due  to  SEC and NASD regulations,
HiEnergy will ensure that Seabury is provided with, and consents to, any and all
material  HC  Wainwright delivers to potential investors in order to ensure that
it  materially  conforms  to  the material HiEnergy and Seabury have created for
distribution  to  potential investors.  If HiEnergy in its sole discretion deems
it  appropriate,  HiEnergy may direct Wainwright and retain such other placement
agents as it sees fit to conduct a private placement with registration rights to
investors  other  than  institutional  investors or strategic partners.  Seabury
acknowledges  that HiEnergy is in discussions with respect to a placement in the
$3  million  to  $5 million range, in which the parties do not expect Seabury to
participate.

     2.     Authorization  Period.  Seabury's  engagement shall become effective
on  the  date  hereof and, unless extended by HiEnergy and Seabury, shall expire
one  (1)  year  after the signing of this Agreement. In the event that there has
not  been  an acceptable term sheet regarding a Financing within one hundred and
eighty  (180)  days  of  the execution of this Agreement, or a closing of such a
Financing  within  two  hundred  forty  (240)  days  of  the  execution  of this
Agreement, the Company may terminate (either a "Company Termination Event") this
Agreement  in  writing  upon  ten  days  notice. The period from the date hereof
through  the  expiration of this Agreement is called the "Authorization Period."
In  the  event  of  a material change affecting Seabury's status as a company or
related  to  its  personnel  occurs, the Company may terminate this Agreement in
writing  upon  ten  days  notice.

     3.     Compensation.  HiEnergy shall pay Seabury the compensation set forth
below:

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     a.     Fee.  In  consideration  for  entering into this agreement, HiEnergy
shall  pay  Seabury  a  retainer  fee  of $25,000 in cash upon execution of this
Agreement  and $25,000 in cash on March 1, 2003. HiEnergy shall also pay Seabury
a  cash placement fee equal to 8.0% on that portion of any gross proceeds placed
by  Seabury  and  received  by  the  Company  (the "Aggregate Consideration") in
connection  with  the  Financings  thereafter.  The  cash placement fee shall be
payable on the closing date on which such Aggregate Consideration is received by
the  Company.

     b.    Placement  Agent  Warrants.  On  each closing date on which Aggregate
Consideration is paid or becomes payable, HiEnergy shall issue to Seabury or its
permitted  assigns  warrants  (the  "Warrants")  to provide 10% warrant coverage
based  on  the  Aggregate  Consideration received from purchasers divided by the
exercise  price.  The exercise price of the Warrants shall be equal to the price
at  which  common  equity  of  the  Company  is  issued  (or  in  the event of a
convertible  security, the conversion price or exercise price into common equity
on  the  closing  date).  The  Warrants  shall  be exercisable after the date of
issuance  and  shall  expire  five  years  after  the  date  of issuance, unless
otherwise  extended  by  the Company. The Warrants shall be substantially in the
form  of  Exhibit  3(b)  hereto.  The  Warrants  shall  also  include  piggyback
registration  rights.  The  Warrants  shall  be  transferable within Seabury, at
Seabury's  discretion.  Notwithstanding  the foregoing, the compensation payable
under  this  section  may  be  paid in HiEnergy common shares, subject to mutual
agreement  between  Seabury  and  HiEnergy.

          c.     Tail  Period.  HiEnergy  shall,  and shall cause its affiliates
to,  pay to Seabury all compensation described in this Section 3 with respect to
all Securities including debt, convertible debt or any equity or debt investment
sold  to a purchaser or purchasers at any time prior to the expiration of twelve
(12)  months  after  the expiration of this Agreement (the "Tail Period") if (i)
such  purchaser  or  purchasers were identified to the Company by Seabury during
the  Authorization Period, (ii) Seabury advised the Company with respect to such
purchaser  or purchasers during the Authorization Period or (iii) the Company or
Seabury  had substantive discussions with such purchaser or purchasers regarding
a  significant  investment  in  HiEnergy  during  the  Authorization  Period.
Notwithstanding the foregoing, in the event the Agreement is terminated due to a
Company  Termination  Event, (1) the Tail Period shall be reduced to a period of
six months after expiration of this Agreement and (2) the corresponding cash fee
percentage shall be reduced to 4% from 8% and the corresponding warrant coverage
percentage  shall  be  reduced  to  4%  from  10%.

     4.     Reimbursements.  Regardless  of  whether  the  Private Placements or
sales of Securities are consummated, the Company shall reimburse Seabury for all
of  its  reasonable  out-of-pocket  expenses,  not to exceed $10,000 without the
written  consent  of  HiEnergy,  incurred  in  connection  with  its engagement,
including  the fees and disbursements of counsel for Seabury and the expenses of
any  travel  that  may  be  necessary.

     5.     Representations.  Warranties  and  Covenants  of HiEnergy.  HiEnergy
represents  and  warrants  to,  and  covenants  with,  Seabury  as  follows:

          a.      Neither  the  Company  nor any person acting on its behalf has
taken,  and  HiEnergy  shall  not  and  shall not permit its affiliates to take,
directly  or  indirectly,  any  action  so  as  to cause any of the transactions
contemplated  by  this  agreement  to  fail  to  be  entitled  to exemption from
registration  or  qualification  under  all  applicable securities laws or which
constitutes general advertising or general solicitation (as those terms are used
in  Regulation  D  under  the  Securities  Act)  with respect to the Securities.

          b.     HiEnergy shall take and shall cause its affiliates to take such
actions  as  may  be  required  to cause compliance with this Agreement. Seabury
acknowledges  that  HiEnergy  may  cause  its  affiliates  to perform any of its
obligations hereunder; provided, however, that HiEnergy's intention to do so (or
any action by HiEnergy or Seabury in respect thereof) shall not relieve HiEnergy
from  its  obligation  to  perform  such  obligations  when  due.

     c.     HiEnergy  shall  render its performance hereunder in compliance with
all  applicable  laws.

6.     Representations,  Warranties  and  Covenants  of  Seabury.  Seabury
represents  and  warrants  to,  and  covenants  with,  HiEnergy  as  follows:

     a.   None  of  Seabury,  its  affiliates  or any person acting on behalf of
Seabury  or  any  of  such  affiliates has engaged or will engage in any general
solicitation  or  general  advertising  (as those terms are used in Regulation D
under  the  Securities  Act)  with  respect  to  the  Securities.

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     b.    Seabury will use its best efforts to conduct the offering and sale of
Securities  so  that  Securities  are  sold  in  a  transaction  or  series  of
transactions  exempt  from  registration  under  the  Securities  Act.

     c.     Seabury  shall  render  its performance hereunder in compliance with
all  applicable  laws.  Seabury  shall deliver to potential investors only those
materials  that  HiEnergy and Seabury have created and HiEnergy has approved for
distribution  to  potential  investors.

     d.     Seabury  will  send  materials  related  to  the  Financings only to
persons  that  the  Seabury  reasonably  believes are "accredited investors" (as
defined  under  Rule  501(a)  of  the  Securities  Act).

     7.     Indemnification.  The  Company  agrees  to  the  indemnification and
other  agreements  set  forth  in  the  attached  Indemnification Agreement, the
provisions  of  which  are  incorporated  herein  by  reference.

     8.     Subsequent  Offerings.  Seabury  shall  have the right from the date
hereof until twelve months after the expiration of this Agreement, to act as the
managing  placement agent in connection with the sale of equity or equity-linked
securities  through  a  Private Placement. In addition, during the Authorization
Period and for two years thereafter, Seabury shall have the right to participate
as  a  co-manager, on a non-risk basis in an underwritten public offering of the
Company's  securities  and,  unless  otherwise  determined  by  HiEnergy  in
consultation with the lead managing underwriter, Seabury shall receive a minimum
allocation of 10% of the gross underwriting fees and any non-accountable expense
allowances,  and Seabury's name shall appear as a co-managing underwriter on the
cover  of  any  prospectus used in connection with any sale of equity securities
described  in  this  clause.  Seabury  agrees  to  consider  alternate roles and
proportionate  economically comparable compensation arrangements if HiEnergy, in
consultation  with  the  lead  managing  underwriter,  determines  that  market
conditions  are not favorable to the allocations contemplated by this Section 8.
Notwithstanding  the other provisions of this Section 8, Seabury shall have none
of  the  rights  contemplated  by  this  Section 8 in the event the Agreement is
terminated  due  to  a  Company  Termination  Event.

     9.     Mergers  &  Acquisitions.  During  the Authorization Period, Seabury
shall  act as the financial advisor to the Company with respect to any potential
business combination involving the Company, including acquisitions or mergers or
the  sale  of  the  Company  or  certain  assets  or divisions of the Company (a
"Business  Combination").  Seabury  shall  be  compensated  for  any  Business
Combination  completed  during  the  Authorization Period or for the twelve (12)
month  period  thereafter  (the  "Tail  Period")  with  any person with whom the
Company  or Seabury had substantive discussions regarding a Business Combination
during  the  Authorization  Period.  HiEnergy  shall  pay Seabury an amount (the
'Transaction Fee") according to the schedule hereunder, based on the transaction
value,  which  is  payable  in  cash  on  the  closing  date  of  such  Business
Combination,  subject  to a minimum Transaction Fee of  $250,000 and a carve out
for  a  Business  Combination  with a transaction value of less than $5 million.

     Transaction  Value              Transaction  Fee
     Up  to  $50,000,000             2.0%  of  such  amount;  plus
     In  excess  of  $50,000,000     1.5%  of  such  amount

For the six month period following the expiration of this Agreement, if HiEnergy
elects  to  pursue  the  sale of the Company or receives an offer to purchase or
merge with the Company by a person not covered under the section above, HiEnergy
agrees  to  engage  Seabury  and  Seabury  agrees to act as HiEnergy's financial
advisor  in  connection with the potential sale or merger according to the terms
set  forth  above.

Notwithstanding the other provisions of this Section 9, Seabury shall have none
of the rights or entitlement to compensation contemplated by this Section 9 in
the event the Agreement is terminated due to a Company Termination Event.

     10.        Further  Investment.  Seabury  has  the  right,  but  not  the
obligation,  to  participate in any equity transaction completed during the term
of  this  Engagement,  on  the  same terms as the other investors to such equity
transaction.  Seabury's  allocation  in any equity transaction shall be limited,
however,  to  ten  percent  (10%)  of  the  total  capital  raise.

     11.     Survival  of  Certain  Provisions.  The  expense,  indemnification,
reimbursement  and  contribution  obligations of HiEnergy provided herein and in
the  attached  Indemnification  Agreement  and,  except  as  expressly  provided
otherwise  in  Sections  3(c),  8 and 9, Seabury's rights to compensation (which

<PAGE>
term  includes all fees, amounts and Warrants due or which may become due) shall
remain  operative and in full force and effect regardless of (i) any withdrawal,
termination  or  consummation  of  or  failure  to  initiate  or  consummate any
transaction  described  herein  or  (ii)  any  termination  or the completion or
expiration  of  this  Agreement.

     12.     Notices.  Notice  given  pursuant  to any of the provisions of this
Agreement  shall be given in writing and shall be sent by certified mail, return
receipt  request  or recognized overnight courier or personally delivered (a) if
to  the  Company,  to  HiEnergy Technologies, Inc. office at 1601 Alton Parkway,
Unit  B,  Irvine,  California 92606. Attention: Thomas Pascoe, President & Chief
Executive  Officer, and; (b) if to Seabury, to its office at 540 Madison Avenue,
17th  floor,  New  York,  NY  10022.  Attention:  Roy Clauss, Managing Director.

     13.     Confidentiality.  No  financial advice rendered by Seabury pursuant
to  this  Agreement or by HC Wainwright pursuant to its engagement agreement may
be  disclosed  publicly  in any manner without Seabury's prior written approval,
except  as  may be required by law, regulation or court order but subject to the
limitation  below.  If  the  Company  is required or reasonably expects to be so
required  to  disclose  any  advice,  HiEnergy shall provide Seabury with prompt
notice  thereof so that Seabury may seek a protective order or other appropriate
remedy  and  take reasonable efforts to assure that all of such advice disclosed
will  be covered by such order or other remedy. Whether or not such a protective
order  or  other remedy is obtained, HiEnergy will and will cause its affiliates
to  disclose  only that portion of such advice, which the Company is so required
to  disclose.

     14.     Miscellaneous.  This  Agreement  (including  the  attached
Indemnification  Agreement) sets forth the entire agreement between the parties,
supersedes  and  merges all prior written or oral agreements with respect to the
subject  matter  hereof, may only be amended in writing and shall be governed by
the  laws  of  the  State  of  New  York applicable to agreements made and to be
performed  entirely within such State. The parties shall make reasonable efforts
to  resolve  any  dispute  concerning  this  Agreement,  its construction or its
alleged  breach  by  face-to-face  negotiations.  If  such  negotiations fail to
resolve  the  dispute,  the  dispute  shall be finally decided by arbitration in
accordance  with  the  rules  then  in  effect  of  the  American  Arbitration
Association. Any arbitration will be conducted in the New York City metropolitan
area.  HiEnergy  (for the Company, for anyone claiming through or in the name of
the  Company  and  on behalf of the equity holders the Company) and Seabury each
hereby  irrevocably  waives any right it may have to trial by jury in respect of
any claim arising out of this Agreement or the transactions contemplated hereby.

This  Agreement  may  not  be assigned by either party without the prior written
consent  of  the  other  party.

If  any provision of this Agreement is determined to be invalid or unenforceable
in  any  respect, such determination will not effect such provision in any other
respect  or  any  other  provision  of  this  Agreement. Please confirm that the
foregoing correctly sets forth our agreement by signing and returning to Seabury
the  enclosed  duplicate  copy  of  this  Agreement.

     Very  truly  yours,

     Seabury  Transportation  Advisors  LLC

     By:  /s/  John  E.  Luth
        ---------------------
     John  E.  Luth
     President  &  CEO

Accepted  and  agreed  to  as  of  the  date  first  written  above

     HiEnergy  Technologies,  Inc.

     By:  /s/  Tom  Pascoe
        ------------------
     Thomas  Pascoe
     President  &  Chief  Executive  Officer

<PAGE><PAGE>

                                  EXHIBIT 10.33

                             STOCK OPTION AGREEMENT
                           (NONQUALIFIED STOCK OPTION)

OPTIONEE:             Chapin E. Wilson

NUMBER OF SHARES:     13,636

OPTION EXERCISE PRICE: $2.24 per Share

DATE OF GRANT:        December 19, 2002

EXERCISE TERM:        Ten Years from the Date of Grant

VESTING SCHEDULE:     25% on the date 3 months following the Date of Grant;
                      25%  on  the  date  6 months following the Date of Grant;
                      25%  on  the  date  9 months following the Date of Grant;
                      25%  on  the  date  1  year  following the Date of Grant.

     THIS OPTION AGREEMENT (the "AGREEMENT") is entered into effective as of the
19th  day  of  December,  2002  by  and  between  HIENERGY TECHNOLOGIES, INC., a
Delaware  corporation  (the "Company"), and the individual designated above (the
"Optionee").

                                    RECITALS
                                    --------

     WHEREAS,  QED  Law  Group, P.L.L.C., a Washington limited liability company
("QED"),  has  provided  legal  services  to  the  Company;  and

     WHEREAS,  the  Optionee,  as  a  member of QED, has agreed to accept, as an
accommodation  to  adjust  amounts owing to QED, stock options from the Company;

NOW,  THEREFORE,  the  parties  agree  to  the  terms and conditions as follows:

1.     GRANT OF OPTION.

1.1     Option.  An option to purchase shares of the Company's Common Stock, par
        ------
     value  $0.001  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.

Stock Option Agreement, Chapin E. Wilson - Page 1

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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 Nonqualified 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  Company's  Board  of Directors or a duly authorized committee
thereof  (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 hereof.

3.     VESTING.

     The Option shall vest, and may be exercised, with respect to the Shares, on
or after the dates set forth above, subject to earlier termination of the Option
as  provided  in  Section  1.6 hereof.  The right to purchase the Shares as they
become  vested  shall  be cumulative and shall continue during the Exercise Term
unless  sooner  terminated  as  provided  herein.

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
Optionee  shall  tender  the  Option Exercise Price to the Company, (i) 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, (ii)
by "cashless exercise"in accordance with the provisions of Section 4.3, but only
when  a registration statement under Securities Act qualifying a public offering
of the underlying Shares is not then in effect, or (iii) by a combination of the
foregoing  methods  of  payment  selected  by  the  Optionee.  The Option may be
exercised in whole or in part with respect to the vested Shares. Within ten (10)
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

Stock Option Agreement, Chapin E. Wilson - Page 2

<PAGE>
(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.

4.3     Notwithstanding  any provisions herein to the contrary, if the Per Share
Market  Value  of  one share of Common Stock is greater than the Option Exercise
Price  (at  the  date  of calculation as set forth below), in lieu of exercising
this  Option  by  payment  of  cash,  the Optionee may exercise this Option by a
cashless  exercise  and shall receive the number of shares of Common Stock equal
to  an amount (as determined below) by surrendering this Option at the principal
office  of  the Company together with the properly endorsed Option Exercise Form
in  which  event  the  Company shall issue to the Optionee a number of shares of
Common  Stock  computed  using  the  following  formula:

<TABLE>
<CAPTION>
<S>     <C>
           X = Y - (A)(Y)
                  ------
           B

Where     X =     the number of shares of Common Stock to be issued to the Optionee.

          Y =     the number of shares of Common Stock purchasable upon exercise of all of
                  the Option or, if only a portion of the Option is being exercised, the portion
                  of the Option being exercised.

          A =     the Option Exercise Price.

          B  =    the  Per  Share  Market  Value  of one share of Common Stock.

</TABLE>

"Per  Share Market Value" means on any particular date (a) the closing bid price
for  a  share of Common Stock in the over-the-counter market, as reported by the
OTC  Bulletin Board (or in the National Quotation Bureau Incorporated or similar
organization  or agency succeeding to its functions of reporting prices), or any
United  States  market  or  exchange  senior to the OTC Bulletin Board where the
Company's Common Stock may become traded, at the close of business on such date,
or (b) if the Common Stock is not then reported by the OTC Bulletin Board or the
National  Quotation  Bureau  Incorporated  (or  similar  organization  or agency
succeeding  to  its  functions  of  reporting  prices  or  any  senior market or
exchange),  then  the  average  of  the  "Pink  Sheet"  quotes  for the relevant
conversion  period,  as  determined  in  good  faith by the Board, or (c) if the
Common  Stock  is  not  then publicly traded the fair market value of a share of
Common  Stock  as determined by the Board in good faith; provided, however, that
                                                         --------  -------
the  Optionee,  after  receipt of the determination by the Board, shall have the

Stock Option Agreement, Chapin E. Wilson - Page 3

<PAGE>
right  to  select,  jointly with the Company, an Independent Appraiser, in which
case,  the  fair  market  value  shall  be the determination by such Independent
Appraiser; and provided, further that all determinations of the Per Share Market
               --------  -------
Value  shall  be appropriately adjusted for any stock dividends, stock splits or
other similar transactions during such period.  The determination of fair market
value  shall  be based upon the fair market value of the Company determined on a
going  concern  basis as between a willing buyer and a willing seller and taking
into account all relevant factors determinative of value, and shall be final and
binding  on  all parties.  In determining the fair market value of any shares of
Common Stock, no consideration shall be given to any restrictions on transfer of
the Common Stock imposed by agreement or by federal or state securities laws, or
to  the  existence  or  absence  of,  or  any  limitations  on,  voting  rights.

"Independent  Appraiser"  means  a  nationally  recognized  or  major  regional
investment  banking  firm or firm of independent certified public accountants of
recognized standing (which may be the firm that regularly examines the financial
statements  of  the  Company)  that  is  regularly  engaged  in  the business of
appraising  the  capital  stock  or  assets of corporations or other entities as
going  concerns,  and  which  is  not  affiliated with either the Company or the
Optionee.

5.     DEATH  OF  OPTIONEE.

     In  the  event  of  the  death  of  the  Optionee  during  the Term of this
Agreement,  the options shall continue to vest as provided by Section 3, and the
options  shall  terminate  on  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.

6.     TRANSFERABILITY.

     Except  as  permitted  by  the  Board, the Option shall not be transferable
other  than  by will or by the laws of descent and distribution, and, 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

Stock Option Agreement, Chapin E. Wilson - Page 4

<PAGE>

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  Company  may,  in its sole discretion, place a "Blue Sky"
legend  on  the certificates in accordance with U.S. state securities laws or as
required  by  applicable  securities  laws.

     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 Board, not to sell, make any
short  sale of, loan, grant any option for the purchase of, or otherwise dispose
of  any  of  his 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.

8.     NO  RIGHT  TO  CONTINUED  STATUS  AS  LEGAL  COUNSEL.

     Nothing  in this Agreement shall be interpreted or construed to confer upon
the  Optionee  any  right  with  respect to continuance as legal counsel for the
Company or any successor, nor shall this Agreement interfere in any way with the
right  of  the  Company  or  any successor to terminate the Optionee's status as
legal  counsel  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,  in  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, 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 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.

Stock Option Agreement, Chapin E. Wilson - Page 5

<PAGE>

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 become fully vested immediately prior to
such  transaction  (and  the  Company  shall afford Optionee with notice of such
transaction  and  a reasonable opportunity to exercise the Option), or, with the
consent  of  the  Optionee,  be assumed or replaced with a substitute equivalent
option.

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 Washington without
giving  effect  to  the  conflicts  of  laws  principles  thereof.

Stock Option Agreement, Chapin E. Wilson - Page 6

<PAGE>

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.

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.  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/ Tom Pascoe
        ----------------------

Name:   Tom Pascoe
        ----------------------

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

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

OPTIONEE

Signature:     /s/ Chapin E. Wilson
               --------------------

Print Name:     Chapin E. Wilson
               --------------------

                                [EXHIBIT  FOLLOWS]

Stock Option Agreement, Chapin E. Wilson - Page 7

<PAGE>
                                    EXHIBIT A

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

To:  HiEnergy Technologies, Inc.

(1)     a)     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:              =  $____________

b)   The undersigned hereby elects to exercise the Option with respect to the
     number of underlying Shares set forth below according to the "cashless
     exercise" provisions of the Option.

    Number of underlying Shares:            ________________ Shares

The undersigned understands that he will be issued a certificate for a lesser
number of net Shares based on the provisions of the Option.

(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 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

Option Exercise Form - Page 1

<PAGE>

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

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

     f)   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
1601 Alton Parkway
Unit B
Irvine, CA  92606

Option Exercise Form - Page 2

<PAGE>

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