Document:

EMPLOYMENT
      AGREEMENT

    

    This
      Employment Agreement (“Agreement”) is entered into and made effective as of
      January 1, 2007 (“Effective Date”), by and between Noninvasive Medical
      Technologies, Inc. (“Company”) and Ann McCaughan (“Executive”).

    

    1. Employment. Company
      employs Executive and Executive agrees to continue employment with Company,
      upon
      the terms and conditions set forth in this Agreement.

    

    2. Term
      of Employment.
      The
      employment of Executive pursuant to the terms of this Agreement will continue
      for five years from the Effective Date unless extended or sooner terminated
      pursuant to this Agreement (“Term”).

    

    3. Duties.

    

    3.1. Basic
      Duties.
      Executive
      agrees to serve as Chief Operations Officer and will be responsible for the
      general supervision of the business and affairs of the Company and will have
      such other powers, duties and responsibilities usually vested in such positions,
      subject to the direction of the Chief Executive Officer and the Board of
      Directors. During the Term, Executive’s title, duties, and responsibilities are
      subject to change as determined from time to time by the Chief Executive Officer
      and the Board of Directors.

    

    3.2. Time
      Devoted to Employment.
      Executive will devote her full time to the business of Company during the term
      of this Agreement and will perform her duties and responsibilities
      faithfully, diligently and to the best of her ability, consistent with the
      highest and best standards of the industry and in compliance with all applicable
      laws and the Company’s policies and procedures. 

    

    3.3. No
      Conflicting Agreements.
      Executive represents and warrants that her performance of all the terms and
      conditions of this Agreement does not and will not breach any other agreement,
      including any confidentiality and non-disclosure agreements with prior employers
      or other persons. Executive represents and warrants that she has not entered
      into, and will not enter into, any agreement, either written or oral in conflict
      with this Agreement. 

    

    3.4. Place
      of Performance of Duties.
      The
      services of Executive will be performed in Las Vegas, Nevada.

    

    4. Compensation
      and Method of Payment.

    

    4.1. Total
      Compensation.
      As
      compensation under this Agreement, Company will pay and Executive will accept
      the following:

    

    4.1.1. Executive’s
      base compensation (“Base Salary”) for the period beginning on the Effective Date
      and ending on the first anniversary of the Effective Date will be one hundred
      seventy-five thousand dollars ($175,000). On each anniversary of the Effective
      Date, Executive’s Base Salary will be increased to a sum equal to 115% of the
      amount of Executive’s Base Salary for the immediately prior year, unless the
      Board of Directors takes an action to the contrary. 

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    4.1.2. During
      the Term, Company will pay Executive, as an annual bonus, one percent of all
      gross sales made by NMT that have been paid for as of the end of each calendar
      year (the “Sales Bonus”). The Sales Bonus will be paid to Executive annually, by
      not later than January 31 of each calendar year. 

    

    4.1.3. For
      the
      calendar year in which this Agreement terminates, if Employee remains eligible
      to receive a Sales Bonus pursuant to Section 5 below, Company will pay Executive
      one percent of all gross sales made by NMT in the calendar year of the
      termination that have been paid for as of the effective date of the termination
      of this Agreement. Any payment of a Sales Bonus pursuant to this subsection
      will
      be paid to Executive within 30 days of the effective date of the termination
      of
      this Agreement.

    

    4.1.4. For
      each
      year of this Agreement, Executive is also eligible for such other amounts (if
      any) as may be approved by the Compensation Committee and subject to criteria
      to
      be established at the discretion of the Board of Directors (“Bonus”).

    

    4.1.5. Company
      will reimburse Executive for all reasonable travel, entertainment and other
      expenses incurred or paid by Executive in connection with, or related to, the
      performance of Executive’s duties, responsibilities or services under this
      Agreement, upon presentation by the Executive of documentation, expense
      statements, vouchers and/or such other reasonable supporting information as
      Company may request.

    

    4.1.6. Executive
      will be entitled to participate in Company’s employee fringe benefit, health
      insurance, life insurance, key man insurance and other programs in effect from
      time to time for executives of Company and its affiliates at comparable levels
      of responsibility. Participation will be in accordance with any applicable
      policies adopted by Company. Executive will be entitled to vacations of not
      less
      than two weeks per year, absences for illness, and to similar benefits of
      employment, and will be subject to such policies and procedures as may be
      adopted by Company. 

    

    4.1.7. Executive
      will be entitled to an automobile allowance of $400 per month. 

    

    4.1.8. Subject
      to the approval of the Board of Directors, Executive will be granted incentive
      stock options (as such term is defined in Section 422(b) of the Internal Revenue
      Code of 1986, as amended) in accordance with the Employee Stock Option Plan.
      

    

    4.2. Reservation
      of Rights.
      Notwithstanding any other provision of this Agreement, Company reserves the
      right to modify, suspend or discontinue any and all benefit plans, practices,
      policies and programs at any time whether before or after termination of
      employment without advance notice to or recourse by Executive.

    

    4.3. Payment
      of Compensation.
      All
      compensation to the Executive will be subject to applicable taxes, withholding
      and other required, normal or elected employee deductions.

    

    5. Termination
      of Agreement.

    

    
      
        
        

      

      
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    This
      Agreement and all obligations under this Agreement (except the obligations
      contained in Section 6 below which will survive any termination of this
      Agreement) will terminate upon the earliest to occur of any of the
      following:

    

    5.1. By
      Expiration or Notice.
      This
      Agreement and the employment of Executive will terminate at the expiration
      of
      the Term and may otherwise be terminated by Executive or Company upon thirty
      (30) days written notice of termination. 

    

    5.2. Other
      Termination by Company.
      Company
      may terminate Executive immediately for “Cause.”
      Executive’s employment will terminate
      immediately following written notice from Company to Executive which identifies
      the termination provision relied upon and outlines in reasonable detail the
      circumstances claimed to provide the basis for termination. If appropriate
      to
      the circumstances, Executive will be provided a reasonable opportunity to
      correct the circumstances leading to termination before the notice of
      termination is issued. For the purpose of this Section 5.2, “Cause” for
      termination will be deemed to include (a) acts or omissions by Executive which,
      in the reasonable opinion of Company, could materially adversely affect
      Company’s reputation in the community; (b) acts or omissions by Executive which
      constitute discriminatory, harassing or retaliatory conduct; (c) theft, fraud,
      dishonesty or Executive’s conviction of a felony; (d) Executive’s breach of her
      fiduciary duty or duty of loyalty to Company, including violation of the
      restrictive covenants in Section 6 of this Agreement; (e) the failure of
      Executive to comply with any material term of this Agreement; and (f)
      Executive’s disability or death. 

    

    5.3. Other
      Termination by Executive.
      Executive may terminate this Agreement for “Good Reason.” For purposes of this
      Section 5.3, “Good Reason” will mean the following unless such circumstances are
      fully corrected within a reasonable period following written notice from
      Executive to Company which identifies the termination provision relied upon
      and
      outlines in reasonable detail the circumstances claimed to provide the basis
      for
      terminating her employment for Good Reason: (a) a material adverse change in
      Executive’s status, working conditions or management responsibilities; or (b)
      any reduction by Company in Executive’s Base Salary (other than as agreed to by
      Executive) in effect on the Effective Date or as the same may be increased
      after
      such date.

    

    5.4. Effect
      of Termination.

    

    5.4.1. Termination
      due to Expiration of Employment Period.
      If
      Executive’s employment is terminated due to the expiration of the Term, Company
      will pay Executive the compensation (including Base Salary, accrued Sales Bonus
      and accrued Bonus, if any) and benefits due to Executive under Section 4 through
      the last day of Executive’s actual employment.
      

    

    5.4.2. Termination
      by Company for Cause.
      In the
      event that Executive’s employment is terminated for “Cause” pursuant to Section
      5.2, Company will pay Executive the Base Salary (but not any accrued Sales
      Bonus
      or other Bonus, if any) and benefits due to Executive under Section 4 through
      the last day of Executive’s actual employment. 

    

    
      
        
        

      

      
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    5.4.3. Termination
      by Company Without Cause of by Executive for Good Reason .
      Company
      may not terminate Executive’s employment without cause until after the second
      anniversary of the Effective Date. Thereafter, in the event that Company
      terminates Executive’s employment other than pursuant to Section 5.2 or Section
      7 or in the event of termination by Executive for Good Reason pursuant to
      Section 5.3, Company will pay Executive the greater of the amount of one year’s
      of Base Salary at the date of termination or the remaining amount of unpaid
      Base
      Salary that Executive would have received if this Agreement did not terminate
      before the end of the Term (payments to be made in equal monthly installments).
      Further, Executive will be paid the amount of Sales Bonus and any other Bonus
      that would have been due pursuant to Section 4 during the year of her
      termination, payable at the usual time such bonus payments are made by Company.
      In addition, Company will pay or reimburse Executive for the costs of health
      care benefits that Executive would have received if this Agreement did not
      terminate before the end of the Term (“Continued Benefits”). In addition, to the
      extent permitted under the Employee Stock Option Plan, the vesting schedule
      for
      all incentive stock options granted to the Executive pursuant to Section 4.1.6
      will accelerate and will fully vest effective immediately prior to termination.
      

    

    5.4.4. Termination
      by Executive Without Good Reason.
      In the
      event Executive’s employment is terminated by her not for “Good Reason”, as
      defined in Section 5.3, Company will pay Executive the Base Salary (but not
      accrued Sales Bonus or other Bonus, if any) and benefits due Executive under
      Section 4 through the last day of Executive’s actual employment. 

    

    5.4.5. Resignation
      as Board Member or Officer.
      Immediately upon the termination of Executive’s employment with Company,
      Executive will tender a written notice of Executive’s resignation from any and
      all offices of the Company and all subsidiaries, affiliates or clients in which
      the Executive represents the Company in the capacity of an officer or director.
      Notwithstanding any failure by the Executive to provide the Company with such
      written notice of resignation within three days after the date of the
      termination of Executive’s employment with Company, Executive authorizes and
      directs the Board of Directors to accept the Executive’s resignation from all
      said positions effective as of the date of termination of the Executive’s
      employment. 

    

    6. Property
      Rights and Obligations of Executive.

    

    6.1. Trade
      Secrets.
      For
      purposes of this Agreement, “trade secrets” will include without limitation any
      and all financial, cost and pricing information and any and all information
      contained in any drawings, designs, plans, proposals, customer lists, records
      of
      any kind, data, formulas, specifications, concepts or ideas, where such
      information is reasonably related to the business of Company, has been divulged
      to or learned by Executive during the term of her employment by Company, and
      has
      not previously been publicly released by duly authorized representatives of
      Company or otherwise lawfully entered the public domain. The definition of
      trade
      secrets is not intended to be narrowly interpreted or limited to statutory
      definitions of trade secrets but is intended to broadly refer and relate to
      all
      confidential information of the Company.

    

    6.2. Preservation
      of Trade Secrets.
      Executive will preserve as confidential all trade secrets pertaining to
      Company’s business that have been obtained or learned by her by reason of her
      employment. Executive will not, without the prior written consent of Company,
      either use for her own benefit or purposes or disclose or permit disclosure
      to
      any third parties, either during the term of her employment hereunder or
      thereafter (except as required in fulfilling the duties of her employment),
      any
      trade secret connected with the business of Company.

    

    
      
        
        

      

      
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    6.3. Trade
      Secrets of Others.
      Executive agrees that she will not disclose to Company or induce Company to
      use
      any trade secrets belonging to any third party.

    

    6.4. Property
      of Company.
      Executive agrees that all documents, reports, files, analyses, drawings,
      designs, tools, equipment, plans (including, without limitation, marketing
      and
      sales plans), proposals, customer lists, computer software or hardware, and
      similar materials that are made by her or come into her possession by reason
      of
      and during the term of her employment with Company are the property of Company
      and will not be used by her in any way adverse to Company’s interests. Executive
      will not allow any such documents or things, or any copies, reproductions or
      summaries thereof to be delivered to or used by any third party without the
      specific consent of Company. Executive agrees to deliver to the Board of
      Directors or its designee, upon demand, and in any event upon the termination
      of
      Executive’s employment, all of such documents and things which are in
      Executive’s possession or under her control.

    

    6.5. Non-Solicitation
      by Executive.

    

    6.5.1. General.
      Executive agrees during the Term and for one year following the termination
      of
      her employment, not to recruit, solicit or induce any person or entity who
      during the period within one year prior to the termination of Executive’s
      employment with Company, was an employee or independent contractor of Company
      or
      any of its affiliates (“Company Group”) to leave or cease employment or other
      relationship with Company Group for any reason whatsoever or hire or engage
      the
      services of such person for Executive in any business substantially similar
      to
      or competitive with that in which Company Group was engaged during Executive’s
      employment.

    

    6.5.2. Non-Solicitation
      of Customers.
      Executive acknowledges that in the course of her employment, she will learn
      about Company Group’s business, services, materials, programs and products and
      the manner in which they are developed, marketed, served and provided. Executive
      knows and acknowledges that Company Group has invested considerable time and
      money in developing its programs, agreements, offices, representatives,
      services, products and marketing techniques and that they are unique and
      original. Executive further acknowledges that Company Group must keep secret
      all
      pertinent information divulged to Executive about Company Group business
      concepts, ideas, programs, plans and processes, so as not to aid Company Group’s
      competitors. Accordingly, Company Group is entitled to the following protection,
      which Executive agrees is reasonable: Executive agrees that for a period of
      one
      year following the termination of her employment, she will not, on her own
      behalf or on behalf of any person, firm, partnership, association, corporation,
      or other business organization, entity or enterprise, knowingly solicit, call
      upon, or initiate communication or contact with any person or entity or any
      representative of any person or entity, with whom Executive had contact during
      her employment, with a view to the sale or the providing of any product,
      equipment or service sold or provided or under development by Company Group
      during the period of one (1) year immediately preceding the date of Executive’s
      termination. 

    

    
      
        
        

      

      
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    6.6. Survival
      Provisions and Certain Remedies.
      Unless
      otherwise agreed to in writing between the parties hereto, the provisions of
      this Section 6 will survive the termination of this Agreement. The covenants
      in
      this Section 6 will be construed as separate covenants and to the extent any
      covenant will be judicially unenforceable, it will not affect the enforcement
      of
      any other covenant. In the event Executive breaches any of the provisions of
      this Section 6, Executive agrees that Company will be entitled to injunctive
      relief in addition to any other remedy to which Company may be
      entitled.

    

    7. General
      Provisions.

    

    7.1. Notices.
      Any
      notices or other communications required or permitted to be given under this
      Agreement must be in writing and addressed to Company or Executive at the
      addresses below, or at such other address as either party may from time to
      time
      designate in writing. Any notice or communication that is addressed as provided
      in this Section will be deemed given (a) upon delivery, if delivered personally
      or via certified mail, postage prepaid, return receipt requested; or (b) on
      the
      first business day of the receiving party after the transmission if by facsimile
      or after the timely delivery to the courier, if delivered by overnight courier.
      Other methods of delivery will be acceptable only upon proof of receipt by
      the
      party to whom notice is delivered.

    

    If
      to
      Company:  _____

    

     

    If
      to
      Executive:

    [address/home
      fax]

    

    7.2. Choice
      of Law and Forum.
      Except
      as expressly provided otherwise in this Agreement, this Agreement will be
      governed by and construed in accordance with the laws of the State of Nevada
      and
      both parties consent to the personal jurisdiction of the courts of the State
      of
      Nevada.

    

    7.3. Entire
      Agreement; Modification and Waiver.
      This
      Agreement supersedes any and all other agreements, including the employment
      agreement between Executive and Company dated January 20, 2004, whether oral
      or
      in writing, between the parties hereto with respect to the employment of
      Executive by Company and contains all covenants and agreements between the
      parties relating to such employment in any manner whatsoever. Each party to
      this
      Agreement acknowledges that no representations, inducements, promises, or
      agreements, oral or written, have been made by any party, or anyone acting
      on
      behalf of any party, that are not embodied herein, and that no other agreement,
      statement, or promise not contained in this Agreement will be valid or binding.
      Any modification of this Agreement will be effective only if it is in writing
      signed by the party to be charged. No waiver of any of the provisions of this
      Agreement will be deemed, or will constitute, a waiver of any other provision,
      whether or not similar, nor will any waiver constitute a continuing waiver.
      No
      waiver will be binding unless executed in writing by the party making the
      waiver.

    

    7.4. Assignment.
      Because
      of the personal nature of the services to be rendered hereunder, this Agreement
      may not be assigned in whole or in part by Executive without the prior written
      consent of Company. However, subject to the foregoing limitation, this Agreement
      will be binding on, and will inure to the benefit of, the parties hereto and
      their respective heirs, legatees, executors, administrators, legal
      representatives, successors and assigns.

    

    
      
        
        

      

      
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    7.5. Severability.
      If for
      any reason whatsoever, any one or more of the provisions of this Agreement
      will
      be held or deemed to be inoperative, unenforceable, or invalid as applied to
      any
      particular case or in all cases, such circumstances will not have the effect
      of
      rendering any such provision inoperative, unenforceable, or invalid in any
      other
      case or of rendering any of the other provisions of this Agreement inoperative,
      unenforceable or invalid. 

    

    7.6. Representation
      by Counsel; Interpretation.
      Company
      and Executive acknowledge that each party to this agreement has had the
      opportunity to be represented by counsel in connection with this Agreement
      and
      the matters contemplated by this Agreement. Accordingly, any rule of law or
      decision which would require interpretation of any claimed ambiguities in this
      Agreement against the party that drafted it has no application and is expressly
      waived. The provisions of this Agreement will be interpreted in a reasonable
      manner to affect the intent of the parties.

    

    7.7. 
      Indemnification.
      Company
      agrees that it will indemnify and hold harmless Executive to the fullest extent
      permitted by law from and against any and all liabilities, costs, claims and
      expenses, including all costs and expenses incurred in defense of litigation
      (including attorneys’ fees), arising out of the employment of Executive, except
      to the extent arising out of or based upon the gross negligence or willful
      misconduct of Executive. Costs and expenses incurred by Executive in defense
      of
      such litigation (including attorneys’ fees) will be paid by Company upon
      receiving from Executive (a) a written request for payment, (b) appropriate
      documentation evidencing the incurrence, amount and nature of the costs and
      expenses for which payment is being sought, and (c) an undertaking adequate
      under Nevada law made by or on behalf of Executive to repay the amounts so
      paid
      if it will ultimately be determined that Executive is not entitled to be
      indemnified by Company under this Agreement. 

    

    7.8. Attorneys’
      Fees.
      In any
      action at law or in equity to enforce or construe any provisions or rights
      under
      this Agreement, the unsuccessful party or parties to such litigation, as
      determined by the courts pursuant to a final judgment or decree, will pay the
      successful party or parties all costs, expenses, and reasonable attorneys’ fees
      incurred by such successful party or parties (including, without limitation,
      such costs, expenses, and fees on any appeals), and if such successful party
      or
      parties will recover judgment in any such action or proceedings, such costs,
      expenses, and attorneys’ fees will be included as part of such
      judgment.

    

    7.9. Counterparts.
      This
      Agreement may be executed simultaneously in one or more counterparts, each
      of,
      which will be deemed an original, but all of which together will constitute
      one
      and the same instrument. Fax signatures will be valid and binding.

    

    7.10. Headings
      and Captions.
      Headings and captions are included for purposes of convenience only and are not
      a part hereof.

    

    
      
        
        

      

      
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    IN
      WITNESS WHEREOF, the parties hereto have executed this Agreement effective
      as of
      the day and year first written above at Las Vegas, Nevada.

    

    

    “Company”

    Noninvasive
      Medical Technologies, Inc.

    By: /s/
      Ronald McCaughan

    
      
        

      

      Its: CEO

    

     

    “Executive”

    

    /s/
      Ann
      McCaughan

    
      
        

      

     

    
      
        
        

      

      
        8AMENDMENT NO. 1 TO THE CONFIDENTIAL SETTLEMENT
                               AND MUTUAL RELEASE

      This Amendment No. 1 to the Confidential  Settlement  Agreement and Mutual
Release,  dated as of June 9, 2006 (the  "Amendment")  between  Isaac Yeffet and
Yeffet Security Consultants, Inc. ("Claimants") and HiEnergy Technologies,  Inc.
(the "Company") is entered into on January 30, 2007.

      WHEREAS, the Parties entered into a Confidential  Settlement Agreement and
Mutual Release, dated as of June 9, 2006 (the "Original Agreement");

      WHEREAS,  the Company is  currently in breach of Section 3 of the Original
Agreement;

      WHEREAS,  the Company and the  Claimants  desire to amend the terms of the
Original Agreement as follows.

      NOW,  THEREFORE,  in  consideration  of the  mutual  agreements  contained
herein, and other good and valuable  consideration,  the receipt and sufficiency
of which is hereby acknowledged, the parties hereto agree as follows:

1. Defined Terms. Unless otherwise defined herein, capitalized terms used herein
shall have the meanings ascribed to them in the Original Agreement.

2. Amendment of Original Agreement.  The Original Agreement is hereby amended as
follows:

      (a) Cash  Payments.  The  Parties  agree  that the sum  currently  owed to
Claimants  under  Section 3 of the Original  Agreement is  $189,540.91  plus the
accrued interest as provided for in the Original Agreement,  which shall be paid
as follows:

            (i)  Payment  of  $100,000.  The  Company  shall  pay the  Claimants
$100,000 in five equal monthly  installments  of $20,000 each (the  "Installment
Payments"),  with the first  installment  sent to Claimants  immediately  on the
mutual  execution of this  Amendment and the next four  installments  paid on or
before  the last  business  day of  January,  February,  March,  and April  2007
respectively. Payment of the Installment Payments shall by guaranteed by William
A. Nitze  though the  execution of a Personal  Guaranty in the form  attached in
Exhibit A and provided to Claimants  immediately on the mutual execution of this
Amendment.

            (ii) Payment of Additional  $89,540.91 plus Interest. In addition to
the Installment Payments described in paragraph 2(a)(i) above, the Company shall
pay the Claimants  $89,540.91 plus all accrued interest  (including any interest
earned on the amount subject to the Installment Payments) as provided for in the
Original Agreement on or before June 30, 2007.

<PAGE>

      (b)  Repurchase  Obligations.  The  repurchase  obligations of the Company
pursuant  to  Section  4(d) of the  Original  Agreement  shall not  commence  on
November 1, 2006 as  provided  by the  Original  Agreement,  but  instead  shall
commence on July 1, 2007. The repurchase  obligations of the Company pursuant to
Section 4(d) of the Original  Agreement  shall not  terminate  until Mr.  Yeffet
shall have had the opportunity to exercise the repurchase rights with respect to
the  same  number  of days as he  would  have  been  entitled  to  exercise  the
repurchase  rights if such rights  commenced on November 1, 2006. As an example,
for the avoidance of doubt,  if the repurchase  rights under Section 4(d) of the
Original  Agreement  would have  terminated on April 30, 2007 under the Original
Agreement,  then,  pursuant to this Amendment,  Mr. Yeffet's  repurchase  rights
shall commence on July 1, 2007 and terminate on December 31, 2007.

      (c)  Additional   Warrants.   As  consideration  for  entering  into  this
Amendment, in addition to the Settlement Shares issued to the Claimants pursuant
to the  Original  Agreement,  the  Claimants  are  hereby  granted  an option to
purchase  775,000  shares of Company  common stock at an exercise price of $0.20
per  share  (subject  to  equitable  adjustment  in the  case of a stock  split,
combination, stock dividend,  recapitalization,  or similar event) for a term of
five years from the date of this Amendment (the  "Option").  The Option shall be
exercisable  by the Claimants  either through cash payment of the exercise price
or as a "cashless  exercise" through surrender to the Company of the appropriate
number of shares  of common  stock,  in the  discretion  of the  Claimants.  The
Claimants  shall  have the  rights  provided  under  Section  4 of the  Original
Agreement  with  respect to the stock to be issued upon  exercise of the Option,
other than the rights contained in Sections 4(c), (d) and (e).

3. Notices. Section 19 of the Original Agreement is hereby amended to delete the
address for notices to Claimants  set forth  therein in its entirety and replace
it as follows:

"If to Claimants:

Patterson Belknap Webb & Tyler LLP
1133 Avenue of the Americas
New York, NY 10036
Fax: 212 336 2222
Attention: Alexander Shapiro"

<PAGE>

4. Terms of Original Agreement.  Unless specifically  modified hereby, all terms
of the Original Agreement shall remain unchanged and in full force and effect.

5.  Representations  and Warranties of the Company.  The Company  represents and
warrants to the Claimants that (i) the Company has the corporate  power to enter
into and perform  its  obligations  under this  Amendment,  (ii) the  execution,
delivery and  performance of this Amendment have been authorized by all required
corporate  action on the part of the Company and do not conflict  with or result
in a breach of or  constitute a default  under any  documents or  agreements  to
which the  Company is party or by which it is bound,  and (iii)  this  Amendment
constitutes a valid and binding  obligation,  enforceable against the Company in
accordance with its terms.

Applicable Law. This Amendment  shall be governed  exclusively by the applicable
laws  of the  State  of New  Jersey  without  regard  to its  conflict  of  laws
principles,  and the rights and remedies  available to the Claimants pursuant to
the Original Agreement shall apply with equal force to this Amendment.

6.  Execution  of  Counterparts.  This  Amendment  may be  executed  in  several
counterparts,  each  of  which  shall  be an  original  and all of  which  shall
constitute but one and the same instrument.

                    [SIGNATURES APPEAR ON THE FOLLOWING PAGE]

<PAGE>

      IN WITNESS  WHEREOF,  the Parties have  executed  this  Amendment No. 1 to
Confidential  Settlement  Agreement  and  Mutual  Release as of the day and year
first above written.

Isaac Yeffet:

  /S/ ISAAC YEFFET
------------------------------------

By:  Isaac Yeffet

Yeffet Security Consultants, Inc.

  /S/ ISAAC YEFFET
------------------------------------
By:  Isaac Yeffet
Its:  President

HiEnergy Technologies, Inc.

  /S/ ROGER W.A. SPILLMANN
------------------------------------
By:  Roger W.A. Spillmann
Its:  President

<PAGE>

                                    EXHIBIT A

                         FORM OF UNCONDITIONAL GUARANTY

<PAGE>

                             UNCONDITIONAL GUARANTY

      For and in consideration of Isaac Yeffet and Yeffet Security  Consultants,
Inc.  ("Claimants")  entry into Amendment No. 1 to the  Confidential  Settlement
Agreement  and Mutual  Release,  dated as of January 30, 2007 (the  "Amendment")
with HiEnergy Technologies,  Inc. (the "Company"),  the undersigned,  William A.
Nitze, an adult  individual  residing in the District of Columbia at the address
set forth on the signature page hereof (the "Guarantor"), hereby unconditionally
and  irrevocably  guarantees the prompt and complete  payment of the Installment
Payments (as defined in the Amendment) owed by the Company to Claimants pursuant
to the Amendment (the "Obligations").  For sake of clarification,  the Claimants
agree and understand that the Obligations guaranteed by this Guarantee encompass
only the payment of the five  Installment  Payments of $20,000 each as set forth
in the Amendment and do not extend to any other  requirements  or obligations of
the Company.  The Guarantor  hereby  expressly  agrees with and covenants to the
Claimants as follows:

1.    If Company does not perform the Obligations, or any of them, the Guarantor
      shall,  within five (5) business  days  following  written  notice of such
      failure  from  Claimants  to the  address  or fax  number set forth on the
      signature page hereof, pay and otherwise perform all of the Obligations.

2.    The obligations of the Guarantor hereunder are independent of and distinct
      from the Obligations of the Company,  and a separate action or actions may
      be  brought  and  prosecuted  against  the  Guarantor  whether  action  is
      previously or simultaneously  brought against the Company,  and/or whether
      the Company may  thereafter  be joined in any such action or actions.  The
      Guarantor  waives the benefit of any statute of limitations  affecting its
      liability hereunder or the enforcement thereof, to the extent permitted by
      law.

3.    Guarantor waives any right to require the Claimants to (a) proceed against
      Company or any other person;  (b) proceed  against or exhaust any security
      held from Company;  or (c) pursue any other remedy in the Claimants' power
      whatsoever.  Claimants may, at their election, exercise or decline or fail
      to  exercise  any right or remedy  they may have  against  Company  or any
      security held by the Claimants  including without  limitation the right to
      foreclose upon any such security by judicial or nonjudicial sale,  without
      affecting or impairing  in any way the  liability of Guarantor  hereunder.
      Guarantor  waives any defense arising by reason of any disability or other
      defense of Company or by reason of the cessation from any cause whatsoever
      of the liability of the Company,  and waives any and all other defenses of
      any kind or nature  now or  hereafter  available  to a  surety.  Guarantor
      waives any setoff,  defense or counterclaim  that Company may have against
      Claimants.  Guarantor  waives  any  defense  arising  out of the  absence,
      impairment or loss of any right of  reimbursement  or  subrogation  or any
      other  rights  against  the  Company.   Guarantor  waives  all  rights  to
      participate  in any  security  now or  hereafter  held  by the  Claimants.
      Guarantor waives all  presentments,  demands for  performance,  notices of
      nonperformance,  protests,  notices of protest,  notices of dishonor,  and
      notices of acceptance of this Guaranty and of the existence,  creation, or
      incurring  of  new  or  additional  indebtedness.  Guarantor  assumes  the
      responsibility  for being and keeping  itself  informed  of the  financial
      condition of Company and of all other circumstances  bearing upon the risk
      of nonpayment of any  indebtedness or  nonperformance  of the Obligations,
      and  agrees  that  Claimants  shall  have no duty to advise  Guarantor  of
      information  known  to  Claimants  regarding  such  condition  or any such
      circumstances

<PAGE>

4.    If  Company  becomes  insolvent  or is  adjudicated  bankrupt  or  files a
      petition for  reorganization,  arrangement,  composition or similar relief
      under any  present or future  provision  of the United  States  Bankruptcy
      Code,  or if such a petition  is filed  against  Company,  and in any such
      proceeding  some  or all  of the  Obligations  are  terminated,  rejected,
      modified or abrogated, or if the Obligations are otherwise avoided for any
      reason,  Guarantor agrees that Guarantor's  liability  hereunder shall not
      thereby be affected or modified and such liability  shall continue in full
      force and effect as if no such action or  proceeding  had  occurred.  This
      Guaranty shall continue to be effective or be reinstated,  as the case may
      be, if any  payment  must be returned by  Claimants  upon the  insolvency,
      bankruptcy or reorganization of Company, Guarantor, any other guarantor or
      surety, or otherwise, as though such payment had not been made.

5.    No terms or provisions of this Guaranty may be changed, waived, revoked or
      amended  without  the prior  written  consent of the  parties.  Should any
      provision  of  this  Guaranty  be  determined  by  a  court  of  competent
      jurisdiction to be unenforceable, all of the other provisions shall remain
      effective. This Guaranty,  together with any agreements (including without
      limitation any security  agreements or any pledge agreements)  executed in
      connection  with this Guaranty,  embodies the entire  agreement  among the
      parties  hereto  with  respect  to  the  matters  set  forth  herein,  and
      supersedes  all prior  agreements  among the parties  with  respect to the
      matters set forth herein. No course of prior dealing among the parties, no
      usage of trade, and no parole or extrinsic evidence of any nature shall be
      used to supplement,  modify or vary any of the terms hereof.  There are no
      conditions to the full effectiveness of this Guaranty.

6.    Guarantor  represents  and warrants to the Claimants that (i) Guarantor is
      an adult individual,  with full power and capacity to enter into,  execute
      and perform this Guaranty,  (ii)  execution,  delivery and  performance of
      this  Guaranty do not conflict with or result in a breach of or constitute
      a default  under any  documents or  agreements  to which he is party or by
      which he is bound, and (iii) this Guaranty constitutes a valid and binding
      obligation, enforceable against Guarantor in accordance with its terms.

7.    GUARANTOR WAIVES ANY RIGHT TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION
      BASED  UPON OR ARISING  OUT OF THIS  GUARANTY  OR ANY OF THE  TRANSACTIONS
      CONTEMPLATED  THEREIN,  INCLUDING CONTRACT CLAIMS, TORT CLAIMS,  BREACH OF
      DUTY CLAIMS,  AND ALL OTHER COMMON LAW OR STATUTORY CLAIMS.  This Guaranty
      shall be governed by and construed in accordance with the internal laws of
      the State of New Jersey  applicable to the  performance and enforcement of
      contracts  made  within such state,  without  giving  effect to the law of
      conflicts of laws applied  thereby.  In the event that the Claimants shall
      be  forced  to bring  any  legal  action  to  enforce,  protect  or defend
      Claimants'  rights  under  this  Guarantee,  then the  Claimants  shall be
      entitled to reimbursement from the Guarantor of all reasonable fees, costs
      and other expenses (including, without limitation, the reasonable expenses
      of counsel ) in such action.

<PAGE>

      IN WITNESS WHEREOF,  the undersigned  Guarantor has executed this Guaranty
as of this 30th day of January 2007.

                  WILLIAM A. NITZE

                  ------------------------------------

Address for Notice:

[Address]
[Fax]

                  Agreed:

                  ---------------------------
                  Isaac Yeffet

                  Yeffet Security Consultants, Inc.

                  By:
                     ------------------------
                           Isaac Yeffet
                           President

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