Document:

<PAGE>

                                  EXHIBIT 10.20

                              EMPLOYMENT AGREEMENT
                              --------------------

     This  EMPLOYMENT AGREEMENT (the "Agreement") dated as of September 25, 2002
(the  "Date  of  this Agreement"), is made by and between HiEnergy Technologies,
Inc.,  a  Washington  corporation  (the  "Company"),  and  Tom  Pascoe  (the
"Executive").

     WHEREAS,  the  Company  wishes  to  employ Executive on the terms set forth
     below.

     WHEREAS,  Executive  wishes  to  accept  such  employment.

     Accordingly,  the  parties  hereto  agree  as  follows:

     1.     Term.  The  Company  hereby  employs Executive, and Executive hereby
            ----
accepts  such  employment, for an initial term commencing as of the Date of this
Agreement  and  ending  on  the  third  anniversary  of such date, unless sooner
terminated  in  accordance  with  the provisions of Section 4 or Section 5; with
such  employment  to  continue  thereafter  for  successive  one-year periods in
accordance  with  the terms of this Agreement on each anniversary of the Date of
this  Agreement  (subject  to  termination  as  aforesaid)  unless  either party
notifies  the  other  party  in  writing  not  less than ninety (90) days before
expiration  of  the  initial  term  and  each annual renewal thereof (the period
during  which  Executive  is employed hereunder being hereinafter referred to as
the  "Term")  of  an  intent  not  to  renew  this  Agreement.

     2.     Duties.  During the Term, Executive shall be employed by the Company
            ------
as  its President & Chief Executive Officer and have the powers set forth in the
Company's  bylaws  (as  currently in force and as proposed in an appendix to the
Company's  definitive  proxy  statement  for  its  2002  annual  meeting).  The
Executive  shall devote substantially all of his or her business time and effort
to  the performance of Executive's duties hereunder, and shall work primarily at
the  Company's  main  business  offices.

     3.     Compensation.
            ------------

     3.1     Salary.  The  Company  shall pay Executive during the Term a salary
             ------
at  the rate of $250,000 per annum (the "Annual Salary"), in accordance with the
customary  payroll  practices  of  the  Company applicable to senior executives,
provided the payments are no less frequent than monthly (or, if there is no such
policy,  payments  shall  be  semi-monthly).  Notwithstanding  the foregoing, in
light  of  the  Company's  early-stage  situation  and  need  to  preserve cash,
Executive  has  agreed  to receive a reduced portion of the Annual Salary on the
following  schedule: $135,000 annually until the first $2 million of New Revenue
and/or  New  Financing  (in  any  combination) is received by the Company.  "New
Revenue" shall mean any revenue actually received by the Company, as well as any
revenue  which  is  to  be  received  by the Company in the future pursuant to a
written contract or agreement with the US government, which shall be included in
New  Revenue  at  the time such contract or agreement is entered into, excluding
any  revenue  actually  received  prior  to the date hereof or received or to be
received pursuant to a contract or agreement with the US government entered into
prior  to  the  date  hereof  (the  SBIR  I and II contracts for an aggregate of
$775,000  are  expressly excluded from New Revenue).  "New Financing" shall mean
any  gross  proceeds  received  by  the  Company  from  the  issuance of Company
securities  excluding any financing received prior to the date of this Agreement
and  excluding the closing of the Company's offering of its Series A Convertible
Preferred  Stock,  provided  it closes by September 30, 2002.  At that time, the
portion of the Executive's Annual Salary will be increased to $175,000 annually.
When  cumulative  New  Revenue  and/or  New Financing exceeds $4 million (in any
combination)  Executive  will  receive  the  full  Annual  Salary  of  $250,000.
Executive  shall not retroactively receive any portion of the Annual Salary upon
attainment  of  the  $2  million  and  $4 million milestones, his salary for the
periods  prior  to attaining the milestones being strictly limited to the stated
reduced  portions.  The Executive's salary will also be annually reviewed by the
Company  for possible increases.  The Annual Salary shall be subject to possible
further  increase  from  time  to  time  in  the sole discretion of the Board of
Directors  of  the  Company (the "Board") or such committee of the Board as they
shall designate for such purpose from time to time.  Any increased Annual Salary
shall thereupon be the "Annual Salary" for the purposes hereof.  The Executive's
Annual  Salary  shall  not be decreased without his prior written consent at any
time  during  the  Term.

<PAGE>

     3.2   Incentive  Compensation.  During  the  Term,  Executive  shall,  in
           -----------------------
addition to his Annual Salary, be entitled to a bonus (the "PCF Bonus") equal to
$250,000  once  the  Company  achieves two consecutive quarters of positive cash
flow  from operations.  The bonus shall be payable from time to time, but not in
a  cumulative  amount  in  excess  of  Cumulative PCF (as defined below), out of
Excess  Cash  (as  defined  below),  within five business days after the Company
files  its  financial  statements  with the SEC and in no event no later than 90
days  after the close of the quarter, until such time as the full $250,000 bonus
is paid. "Cumulative PCF" means, at the end of any given quarter, the cumulative
amount  of "Net cash provided by (used in) operating activities" as shown in the
Company's  financial  statements  from  the  beginning  of  the first of the two
consecutive  quarters  in  which  the  Company  achieved positive cash flow from
operations.  "Excess Cash" means the difference of (a) that portion of "Cash and
cash  equivalents"  as  shown in the Company's financial statements equal to the
difference  of  "Total  current  assets"  minus  "Total  current  liabilities"
(excluding  indebtedness  to  related  parties)  each  as shown in the Company's
financial  statements,  minus  (b)  $250,000.  Executive  and  the Company shall
negotiate  in good faith to develop a more definitive bonus program, which shall
be  submitted  to  the Board within 90 days from the Date of this Agreement. The
Board  shall  have the right to award additional bonus amounts and the amount of
such  additional  bonus  and  any  performance standards or goals required to be
attained  in  order  to  receive  such  bonus  shall be set by the Board or such
committee  of  the  Board  as they shall designate for such purpose from time to
time.

     3.3  Stock Options.  Upon execution of this Agreement, Executive shall be
          ---------------
granted  incentive  stock  options  (the  "Options")  to  purchase shares of the
Company's  Common  Stock  pursuant  to  the  terms  of  a Stock Option Agreement
substantially  in  the  form  of  Exhibit A to this Agreement. The Options shall
entitle  Executive  to  purchase,  in  the  aggregate,  underlying shares of the
Company's  common stock in an amount equal to ten percent (10%) of the Company's
outstanding common stock on a fully diluted basis, based on the Company's equity
structure  on the earlier of (a) the final closing of its offering of its Series
A  Convertible Preferred Stock, provided that such final closing has occurred by
September  30,  2002,  or  (b)  September  30,  2002.

     3.4 Benefits.  Except  as  otherwise  provided  herein,  Executive  shall
         --------
participate  in  any  group  life, medical or disability insurance plans, health
programs,  retirement  plans,  fringe benefit programs and similar benefits that
may  be  available  to  other senior executives of the Company generally, on the
same  terms  as  such other executives, to the extent that Executive is eligible
under  the terms of such plans or programs as they may be in effect from time to
time.  The  Company  will  provide  coverage  for  Executive under the Company's
health  benefits  plan  and  will  pay  100%  of the cost of spouse or dependent
coverage.  Coverage  under the health benefits plan will be in effect commencing
with the first month following thirty (30) days of employment.  In addition, the
Company  will  provide  a  monthly  auto  allowance  in the amount of $900, paid
concurrent  with  the  first  salary  paycheck  of  each  month.

     3.5  Expenses.  The Company shall pay or reimburse Executive for all
          --------
ordinary  and  reasonable  out-of-pocket expenses actually incurred (and, in the
case  of reimbursement, paid) by Executive during the Term in the performance of
Executive's services under this Agreement, provided that Executive submits proof
of  such  expenses, with the properly completed forms as prescribed from time to
time by the Company, no later than thirty (30) days after the end of the monthly
period  in  which  such  expenses  have  been  so  incurred.

     4.     Termination  upon Death or Disability.  If Executive dies during the
            -------------------------------------
Term,  the  Term shall terminate as of the date of death, and the obligations of
the  Company  to  or with respect to Executive shall terminate in their entirety
upon  such date except as otherwise provided under this Section 4.  If Executive
becomes  disabled  for  purposes of the long-term disability plan of the Company
for which Executive is eligible, or, in the event that there is no such plan, if
Executive  by  virtue  of  ill  health  or other disability is unable to perform
substantially  and  continuously  the  duties  assigned to him for more than 180
consecutive or non-consecutive days out of any consecutive 12-month period, then
the  Company  shall have the right, to the extent permitted by law, to terminate
the  employment  of  Executive  upon  notice  in  writing  to  Executive.  Upon
termination  of  employment  due  to  death  or  disability,  (i)  Executive (or
Executive's estate or beneficiaries in the case of the death of Executive) shall
be  entitled  to  receive any Annual Salary, PCF Bonus and other benefits earned
and  accrued  under  this  Agreement  prior  to  the  date  of  termination (and

                                        2
<PAGE>

reimbursement  under  this  Agreement for expenses incurred prior to the date of
termination,  (ii) in the case of termination due to disability, Executive shall
be  entitled  to receive 60% of his Annual Salary (provided that Executive shall
be  entitled  to  any  more  favorable  percentage  accorded any other executive
officer  of  the  Company)  for  the lesser of twelve (12) months following such
termination,  or  the  period  until  long  term  disability  insurance benefits
commence  under  disability  coverage furnished by the Company to Executive; and
(iii)  Executive  (or,  in the case of Executive's death, Executive's estate and
beneficiaries)  shall  have  no  further  rights  to  any  other compensation or
benefits  hereunder  on  or  after  the  termination of employment, or any other
rights  hereunder, except as otherwise provided in the plans and policies of the
Company.

     5.     Certain  Terminations  of  Employment.
            -------------------------------------

     5.1     Termination  for  Cause;  Termination  of  Employment  by Executive
without  Good  Reason.

     (a)     For  purposes  of  this  Agreement, "Cause" shall mean Executive's:

               (i)  conviction  of  (or  pleading  nolo  contendere to) a felony
          involving physical violence or moral turpitude, or any crime involving
          the  Company  that  results  in material economic harm to the Company;

               (ii) engagement in the performance of his or her duties hereunder
          or  otherwise  to  the  material  and  demonstrable  detriment  of the
          Company,  in  willful  misconduct,  willful  or  gross neglect, fraud,
          misappropriation  or  embezzlement;

               (iii)  after  notice  from  the  Board,  and,  if  requested  by
          Executive,  the  opportunity  to be heard by the Board, the failure to
          adhere  to  the lawful and reasonable directions of the Board that are
          consistent  with the terms of this Agreement, or the failure to devote
          substantially  all  of  the  business  time  and effort to the Company
          (except  for  any  activities  expressly  authorized  by the Company);

               (iv) material breach of any of the provisions of Section 6, other
          than  inadvertent  breaches;  or

               (v) breach in any material respect of the terms and provisions of
          this Agreement and failure to cure such breach within thirty (30) days
          following  written  notice  from  the  Company specifying such breach;
          provided  however,  if  Executive  delivers  written notice to Company
          during  the  thirty  (30)  day cure period requesting to be heard at a
          meeting  of  the  Board,  his  or  her  termination under this Section
          5.1(a)(v)  shall  not  be  effective until such Board meeting at which
          Executive has had an opportunity to be heard.

provided  that Cause shall not exist except on written notice given to Executive
at any time not more than sixty (60) days following the occurrence of any of the
events  described  above  (or,  if  later,  the  Board's  knowledge  (excluding
Executive's  knowledge)  thereof).

     (b)     The  Company  may  terminate  Executive's  employment hereunder for
Cause,  and  Executive  may  terminate his employment for any or no reason on at
least  30  days' and not more than 60 days' written notice given to the Company.
If  the  Company  terminates  Executive  for  Cause, or Executive terminates his
employment  and the termination by Executive is not covered by Section 4 or 5.2,
(i)  Executive shall receive Annual Salary, PCF Bonus, and other benefits earned
and  accrued  under  this  Agreement prior to the termination of employment (and
reimbursement  under  this  Agreement  for  expenses  incurred  prior  to  the
termination  of  employment); and (ii) Executive shall have no further rights to
any  other  compensation  or  benefits  hereunder on or after the termination of
employment,  or  any other rights hereunder, except as otherwise provided in the
plans  and  policies  of  the  Company.

     5.2     Termination  by the Company without Cause; or by Executive for Good
             -------------------------------------------------------------------
Reason.
------

     (a)     For  purposes  of  this Agreement, "Good Reason" shall mean, unless
otherwise  consented  to  in  writing  by  Executive;

                                        3
<PAGE>
               (i)  a reduction in Annual Salary or in benefits of Executive, or
          the  failure  of  the  Company  timely  to  make  any  payment  due to
          Executive;

               (ii)  any  action  by  the  Company  that  results  in a material
          diminution  in  Executive's  position,  authority,  duties  or
          responsibilities;

               (iii) a material breach of any provision of this Agreement by the
          Company;

               (iv)  relocation  of  Executive  outside  of  the  Orange County,
          California  area  without  Executive's  written  consent;  or

               (v)  a  failure  of  the  Company  to  have  a  successor  entity
          specifically  assume  this  Agreement.

Notwithstanding  the  foregoing,  (i)  Good  Reason shall not be deemed to exist
unless  notice  of termination on account thereof (specifying a termination date
no  later  than thirty (30) days from the date of such notice) is given no later
than  sixty (60) days after the time at which the event or condition purportedly
giving  rise  to  Good  Reason  first  occurs or arises (or when Executive first
becomes  aware  of such circumstances); and (ii) if there exists (without regard
to  this  clause  (ii))  an event or condition that constitutes Good Reason, the
Company  shall  have thirty (30) days from the date notice of such a termination
is  given to cure such event or condition and, if the Company does so fully cure
such  event  or  condition, or, if it commences a cure within such 30-day period
that  would  reasonably  take  longer  than  30 days to complete, so long as the
Company  diligently  prosecutes such cure to completion, such event or condition
shall  not  constitute  Good  Reason  hereunder.

     (b)     The  Company  may  terminate Executive's employment at any time for
any  reason or no reason and Executive may terminate Executive's employment with
the  Company  for  Good  Reason.  A  notice  of non-renewal by the Company shall
constitute  a  termination  of  employment  by  the  Company  without  Cause.

     (c)     If  the  Company  terminates  Executive's  employment  and  the
termination  is  not  covered  by  Section 4 or 5.1, or Executive terminates his
employment  for  Good  Reason,  Executive  shall  receive:

          (i)   Annual Salary, PCF Bonus, and other benefits earned and accrued
                under this Agreement prior to the termination of employment (and
                reimbursement under this Agreement for expenses incurred prior
                to the termination of employment);

          (ii)  an amount equal to Executive's Annual Salary, payable in twelve
                (12) monthly installments over the twelve (12) month period
                following the termination date; and

          (iii) reimbursement for COBRA payments equal to Executive's regular
                monthly contributions toward Executive's health insurance
                benefits for the twelve (12) month period following the
                termination date if Executive elects COBRA benefits.

     6.     Invention,  Non-Disclosure  and  Non-Solicitation.
            -------------------------------------------------
     6.1     Inventions  and  Patents.
             ------------------------

     (a)     The  Executive  will promptly and fully disclose to the Company any
and  all  inventions,  discoveries,  improvements, ideas, developments, designs,
products,  formulas,  software  programs,  processes,  techniques,  technology,
know-how,  negative  know-how, data, research, technical data and original works
of  authorship (whether or not patentable or registrable under patent, copyright
or  similar  statutes  and including all rights to obtain, register, perfect and
enforce  those  proprietary  interests)  that  are  related  to or useful in the

                                        4
<PAGE>
Company's  present  or  future  business  or  result from use of property owned,
leased,  or  contracted  for by the Company and which Executive develops, makes,
conceives  or  reduces to practice during Executive's employment by the Company,
either  solely  or  jointly with others (collectively, the "Developments").  All
such  Developments  shall  be  the  sole  property of the Company, and Executive
hereby  assigns to the Company, without further compensation, all of Executive's
right,  title  and  interest in and to such Developments and any and all related
patents,  patent  applications,  copyrights, copyright applications, trademarks,
service  marks  and  trade  names  in  the  United  States  and  elsewhere.

     (b)     The Executive shall disclose promptly to an officer or to attorneys
of  the  Company  in  writing  any inventions, discoveries, improvements, ideas,
developments,  designs,  products,  formulas,  software  programs,  processes,
techniques,  technology,  know-how, negative know-how, data, research, technical
data  and original works of authorship, whether or not patentable or registrable
under  patent,  copyright  or  similar  statutes,  Executive may conceive, make,
develop  or  work  on, in whole or in part, solely or jointly with others during
Executive's  employment,  for the purpose of permitting the Company to determine
whether  they  constitute  Developments.  The  Company  shall  receive  such
disclosures  in  confidence.

     (c)  The  Executive  will  keep  and  maintain adequate and current written
records of all Developments (in the form of notes, sketches, drawings and as may
be specified by the Company), which records shall be available to and remain the
sole  property  of  the  Company  at  all  times.

     (d)  The  Executive  will  assist  the  Company  in obtaining and enforcing
patent,  copyright, trademark, service marks and other forms of legal protection
for  the  Developments  in  any  country.  Upon request, Executive will sign all
applications, assignments, instruments and papers and perform all acts necessary
or  desired  by the Company to assign all such Developments fully and completely
to  the Company and to enable the Company, its successors, assigns and nominees,
to  secure  and  enjoy  the  full and exclusive benefits and advantages thereof.

     (e)  The  Executive  understands  that  Executive's  obligations under this
section  will  continue after the termination of Executive's employment with the
Company  and  that  during  Executive's  employment  Executive will perform such
obligations  without  further compensation, except for reimbursement of expenses
incurred  at  the request of the Company. The Executive further understands that
if Executive is not employed by the Company as an employee at the time Executive
is  requested  to  perform  any  obligations under this section, Executive shall
receive for such performance a reasonable per diem fee, as well as reimbursement
of  any  reasonable  expenses  incurred  at  the  request  of  the  Company.

     (f)  Any  provision  in  this  Agreement  requiring  Executive  to  assign
Executive's  rights  in  all  Developments  shall not apply to an invention that
qualifies  fully under the provisions of California Labor Code section 2870, the
terms  of  which  are  set  forth  below:

          (i)  Any  provision  in an employment agreement which provides that an
     employee  shall  assign, or offer to assign, any of his or her rights in an
     invention  to  his or her employer shall not apply to an invention that the
     employee  developed  entirely  on  his  or  her  own time without using the
     employer's  equipment,  supplies,  facilities,  or trade secret information
     except  for  those  inventions  that  either:

                    (1)  Relate  at  the  time  of  conception  or  reduction to
               practice  of  the invention to the employer's business, or actual
               or  demonstrably  anticipated  research  or  development  of  the
               employer;  or

                    (2)  Result  from any work performed by the employee for the
               employer.

          (ii)  To the extent a provision in an employment agreement purports to
     require  an  employee  to assign an invention otherwise excluded from being
     required to be assigned under subdivision (i), the provision is against the
     public  policy  of  this  state  and  is  unenforceable.

                                        5
<PAGE>
     6.2     Proprietary  Information.
             ------------------------

     (a)     The  Executive  recognizes  that  Executive's relationship with the
Company  is  one of high trust and confidence by reason of Executive's access to
and  contact with the trade secrets and confidential and proprietary information
of  the  Company  including,  without  limitation,  information  not  previously
disclosed  to  the  public  regarding  current and projected revenues, expenses,
costs,  profit  margins  and  any  other  financial  and  budgeting information;
marketing  and  distribution plans and practices; business plans, opportunities,
projects  and  any other business and corporate strategies; product information;
names,  addresses,  terms  of  contracts  and other arrangements with customers,
suppliers,  agents  and  employees  of  the  Company; confidential and sensitive
information  regarding  other  employees,  including information with respect to
their  job descriptions, performance strengths and weaknesses, and compensation;
and  other  information  not generally known regarding the business, affairs and
plans  of  the  Company  (collectively,  the  "Proprietary  Information").  The
Executive  acknowledges and agrees that Proprietary Information is the exclusive
property  of the Company and that Executive shall not at any time, either during
Executive's  employment  with  the  Company or thereafter disclose to others, or
directly or indirectly use for Executive's own benefit or the benefit of others,
any  of  the  Proprietary  Information.

     (b)     The  Executive acknowledges that the unauthorized use or disclosure
of  Proprietary  Information  would  be  detrimental  to  the  Company and would
reasonably  be  anticipated  to  materially  impair  the  Company's  value.

     (c)  The  Executive's  undertakings  and obligations under this Section 6.2
will not apply, however, to any Proprietary Information which: (a) is or becomes
generally  known  to  the  public  through no action on Executive's part, (b) is
generally  disclosed to third parties by the Company without restriction on such
third  parties,  (c)  is  approved  for  release by written authorization of the
Board,  (d)  is  known to Executive other than as a result of work performed for
the  Company, or (e) is required to be disclosed by law or governmental or court
process  or  order.

     (d)  Upon  termination of Executive's employment with the Company or at any
other  time  upon  request,  Executive  will promptly deliver to the Company all
notes,  memoranda, notebooks, drawings, records, reports, written computer code,
files  and other documents (and all copies or reproductions of such materials in
whatever  media) in Executive's possession or under Executive's control, whether
prepared  by  Executive  or  others,  which contain Proprietary Information. The
Executive  acknowledges  that this material is the sole property of the Company.

     6.3     Absence  of  Restrictions  Upon  Disclosure  and  Competition.
             -------------------------------------------------------------

     (a)     The  Executive  hereby  represents  that,  except  as Executive has
disclosed  in  writing to the Company on Exhibit A attached hereto, Executive is
not  bound  by  the  terms  of any agreement with any previous employer or other
party  to  refrain  from using or disclosing any trade secret or confidential or
proprietary information in the course of Executive's employment with the Company
or  to refrain from competing, directly or indirectly, with the business of such
previous  employer  or  any  other  party.

     (b)     The  Executive  further  represents that Executive's performance of
all  the  terms of this Agreement and as an employee of the Company does not and
will  not  breach  any  agreement to keep in confidence proprietary information,
knowledge  or  data acquired by Executive in confidence or in trust prior to his
employment  with  the Company, and Executive will not disclose to the Company or
induce  the  Company  to  use  any  confidential  or  proprietary information or
material  belonging  to  any  previous  employer  or  others.

     6.4     Prohibition  on Solicitation of Customers.  During the Term and for
             -----------------------------------------
a  period  of  one  (1)  year  thereafter,  Executive agrees not to, directly or
indirectly,  either for Executive or for any other person or entity, solicit any
person  or  entity  to  terminate  such  person's or entity's contractual and/or
business  relationship  with  the  Company, nor will Executive interfere with or
disrupt  or attempt to interfere with or disrupt any such relationship.  None of
the  foregoing  shall  be deemed a waiver of any and all rights and remedies the
Company  may  have  under  applicable  law.

<PAGE>

     6.5     Prohibition  on  Solicitation  of  Employees, Agents or Independent
             -------------------------------------------------------------------
Contractors.  During  the  Term  and  for  a  period of one (1) year thereafter,
------------
Executive  agrees  not  to  solicit  any of the employees, agents or independent
contractors  of the Company to leave the employ of the Company for a competitive
company  or  business.  However,  Executive  may  solicit any employee, agent or
independent contractor who voluntarily terminates his or her employment with the
Company  after  a  period of ninety (90) days have elapsed since the termination
date  of  such employee, agent or independent contractor.  None of the foregoing
shall be deemed a waiver of any and all rights and remedies the Company may have
under  applicable  law.

     6.6    Other Obligations. The Executive acknowledges that the Company from
            ------------------
time  to time may have agreements with other persons or with the U.S. Government
or  agencies  thereof,  which  impose obligations or restrictions on the Company
regarding  inventions  made  during  the course of work under such agreements or
regarding  the  confidential  nature  of  such work.  The Executive agrees to be
bound by all such obligations and restrictions which are made known to Executive
and  to  take  all  action necessary to discharge the obligations of the Company
under  such  agreements.

     6.7    Rights and Remedies upon Breach.  The Executive acknowledges and
           --------------------------------
agrees  that  any  breach  by  him  of  any  of the provisions of Section 6 (the
"Restrictive Covenants") would result in irreparable injury and damage for which
money  damages  may  not  provide  an  adequate  remedy. Therefore, if Executive
breaches  any  of  the  provisions  of  Section  6,  the  Company shall have the
following  rights  and  remedies,  each  of  which  rights and remedies shall be
independent  of the other and severally enforceable, and all of which rights and
remedies  shall  be  in  addition  to,  and not in lieu of, any other rights and
remedies  available  to  the  Company under law or in equity (including, without
limitation,  the  recovery  of  damages):  the  right  and  remedy  to  have the
Restrictive  Covenants  specifically  enforced (without posting bond and without
the  need  to prove damages) by any court having equity jurisdiction, including,
without  limitation,  the  right  to  an  entry against Executive of restraining
orders and injunctions (preliminary, mandatory, temporary and permanent) against
violations,  threatened  or  actual, and whether or not then continuing, of such
covenants.

     7.     Other  Provisions.
            -----------------

     7.1     Severability.  The  Executive  acknowledges  and agrees that (i) he
             ------------
has  had  an  opportunity  to  seek  advice  of  counsel in connection with this
Agreement  and (ii) the Restrictive Covenants are reasonable in geographical and
temporal  scope  and in all other respects.  If it is determined that any of the
provisions  of  this  Agreement,  including,  without  limitation,  any  of  the
Restrictive  Covenants,  or  any  part thereof, is invalid or unenforceable, the
remainder  of the provisions of this Agreement shall not thereby be affected and
shall  be  given  full  effect,  without  regard  to  the  invalid  portions.

     7.2     Duration  and  Scope  of  Covenants.  If  any  court  or  other
             -----------------------------------
decision-maker  of  competent  jurisdiction  determines  that any of Executive's
covenants contained in this Agreement, including, without limitation, any of the
Restrictive  Covenants,  or  any  part  thereof, is unenforceable because of the
duration or geographical scope of such provision, then, after such determination
has  become  final and unappealable, the duration or scope of such provision, as
the  case  may  be,  shall be reduced so that such provision becomes enforceable
and,  in its reduced form, such provision shall then be enforceable and shall be
enforced.

     7.3     Arbitration.
             ------------

     (a)     Any  controversy,  dispute,  or  claim  between the parties to this
Agreement,  including  any  claim  arising  out  of,  in  connection with, or in
relation  to  the  formation,  interpretation,  performance  or  breach  of this
Agreement  shall  be  settled  exclusively  by  arbitration,  before  a  single
arbitrator,  in  accordance with this section and the then most applicable rules
of  the  American  Arbitration Association.  Judgment upon any award rendered by
the  arbitrator may be entered by any state or federal court having jurisdiction
thereof.  Such  arbitration  shall  be  administered by the American Arbitration
Association.  Arbitration shall be the exclusive remedy for determining any such
dispute,  regardless of its nature.  Notwithstanding the foregoing, either party
may  in  an  appropriate  matter apply to a court pursuant to California Code of
Civil  Procedure  Section  1281.8,  or any comparable provision, for provisional
relief,  including a temporary restraining order or a preliminary injunction, on
the  ground that the award to which the applicant may be entitled in arbitration
may  be  rendered  ineffectual  without  provisional  relief.

                                        7
<PAGE>
     (b)     In  the  event  the parties are unable to agree upon an arbitrator,
the  parties  shall  select  a single arbitrator from a list of nine arbitrators
drawn  by  the parties at random from the "Independent" (or "Gold Card") list of
retired  judges  or, at Executive's option, from a list of nine persons from the
Employment  Panel  and provided by the American Arbitration Association.  If the
parties  are unable to agree upon an arbitrator from the list so drawn, then the
parties  shall  each  strike  names alternately from the list, with the first to
strike  being  determined  by  lot.  After each party has used four strikes, the
remaining name on the list shall be the arbitrator.  If such person is unable to
serve  for any reason, the parties shall repeat this process until an arbitrator
is  selected.

     (c)  This  agreement  to  resolve any disputes by binding arbitration shall
extend to claims against any parent, subsidiary or affiliate of each party, and,
when  acting  within such capacity, any officer, director, shareholder, employee
or  agent  of  each  party,  or  of any of the above, and shall apply as well to
claims arising out of state and federal statutes and local ordinances as well as
to  claims  arising  under  the common law. In the event of a dispute subject to
this  paragraph the parties shall be entitled to reasonable discovery subject to
the discretion of the arbitrator. The remedial authority of the arbitrator shall
be  the  same  as,  but  no greater than, would be the remedial power of a court
having  jurisdiction  over  the parties and their dispute. The arbitrator shall,
upon  an appropriate motion, dismiss any claim without an evidentiary hearing if
the  party  bringing the motion establishes that he, she or it would be entitled
to  summary  judgment if the matter had been pursued in court litigation. In the
event  of  a  conflict  between the applicable rules of the American Arbitration
Association  and  these  procedures,  the  provisions  of these procedures shall
govern.

     (d) Any filing or administrative fees shall be borne initially by the party
requesting arbitration. The Company shall initially be responsible for the costs
and  fees  of the arbitrator, unless Executive wishes to contribute up to 50% of
the  costs and fees of the arbitrator. The prevailing party in such arbitration,
as  determined  by  the  arbitrator,  and  in  any  enforcement  or  other court
proceedings, shall be entitled, to the extent permitted by law, to reimbursement
from  the other party for all of the prevailing party's costs (including but not
limited  to  the  arbitrator's  costs  and fees), expenses, and attorneys' fees.

     (e) The arbitrator shall render an award and written opinion, and the award
shall  be  final  and binding upon the parties. If any of the provisions of this
Section  7.3,  or  of this Agreement, are determined to be unlawful or otherwise
unenforceable,  in  whole  or  in  part, such determination shall not affect the
validity  of  the  remainder  of  this  Agreement,  and  this Agreement shall be
reformed  to  the  extent  necessary to carry out its provisions to the greatest
extent  possible  and to insure that the resolution of all conflicts between the
parties,  including  those arising out of statutory claims, shall be resolved by
neutral,  binding  arbitration.  If  a  court  should  find  that this Section's
arbitration  provisions  are not absolutely binding, then the parties intend any
arbitration  decision  and  award  to  be  fully  admissible  in evidence in any
subsequent  action,  given  great  weight  by any finder of fact, and treated as
determinative  to  the  maximum  extent  permitted  by  law.

     (f)  Unless mutually agreed by the parties otherwise, any arbitration shall
take  place  in  Orange  County,  California.

     7.4     Covenant  to  Notify  Management.  Executive agrees to abide by the
             ---------------------------------
ethics  policies  of  the  Company  as  well  as  the  Company's  other  rules,
regulations,  policies  and procedures.  Executive agrees to comply in full with
all  governmental laws and regulations as well as ethics codes applicable to the
profession.  In  the  event  that Executive is aware or suspects the Company, or
any  of its officers or agents, of violating any such laws, ethics codes, rules,
regulations,  policies  or procedures, Executive agrees to bring all such actual
and suspected violations to the attention of the Company immediately so that the
matter  may  be  properly  investigated and appropriate action taken.  Executive
understands  that  he is precluded from filing a complaint with any governmental
agency  or  court having jurisdiction over wrongful conduct unless Executive has
first  notified  the  Company  of  the  facts  and permits it to investigate and
correct  the  concerns.

     7.5     Statute  of  Limitations.  Executive  and  the Company hereby agree
             -------------------------
that  there  shall  be  a  one year statute of limitations for the filing of any
requests  for arbitration or any lawsuit relating to this Agreement or the terms
or  conditions  of  Executive's  employment  by the Company.  If such a claim is
filed  more  than  one  year subsequent to Executive's last day of employment it
shall be precluded by this provision, regardless of whether or not the claim has
accrued  at  that  time.

                                        8
<PAGE>
     7.6     Company  Information.  The  Company  has  timely  filed all request
             ---------------------
forms,  reports,  statements  and  documents  with  the  Securities and Exchange
Commission  (the  "Commission"),  all  of  which  have  complied in all material
respects  with  all  applicable  requirements  of the Securities Act of 1933, as
amended,  and  the  Securities  Exchange Act of 1934, as amended.  The Executive
represents  that  he has reviewed the following filings with the Commission: (i)
the  Company's  Annual Report on Form 10-KSB for the fiscal year ended April 30,
2002,  (ii)  the  definitive  proxy  statement  relating to the Company's annual
shareholders  meeting  to  be  held October 10, 2002, and (iii) all other forms,
reports,  statements  and  documents  filed  by the Company since April 30, 2002
(collectively,  the  "Company  Reports").  As  of  their  respective  dates, the
Company  Reports did not contain any untrue statement of a material fact or omit
to  state a material fact required to be stated therein or necessary to make the
statements  therein,  in  the  light  of the circumstances under which they were
made,  not  misleading.

     7.7     Notices.  All notices or deliveries authorized or required pursuant
             -------
to  this  Agreement  shall be deemed to have been given when in writing and when
(i)  deposited  in  the  U.S. mail, certified, return receipt requested, postage
prepaid,  or  (ii) otherwise delivered by hand or by overnight delivery, against
written  receipt,  by a common carrier or commercial courier or delivery service
addressed  to  the parties at the following addresses or to such other addresses
as  either  may  designate  in  writing  to  the  other  party:

 to the Company:      HiEnergy Technologies, Inc.
                      10 Mauchly Drive
                      Irvine, CA 92618
                      Attn: Secretary

 To Executive:        Tom Pascoe
                      ________________
                      ________________

     7.8     Entire  Agreement.  This  Agreement  contains  the entire agreement
             -----------------
between  the  parties  with respect to the subject matter hereof and thereof and
supersedes  all  prior  agreements,  written  or  oral,  with  respect  thereto.

     7.9     Waivers and Amendments.  This Agreement may be amended, superseded,
             ----------------------
canceled,  renewed  or  extended,  and the terms hereof may be waived, only by a
written  instrument  signed  by  the parties or, in the case of a waiver, by the
party  waiving  compliance.  No delay on the part of any party in exercising any
right, power or privilege hereunder shall operate as a waiver thereof, nor shall
any  waiver  on  the part of any party of any such right, power or privilege nor
any  single  or partial exercise of any such right, power or privilege, preclude
any  other  or further exercise thereof or the exercise of any other such right,
power  or  privilege.

    7.10    GOVERNING LAW.  THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN
            --------------
ACCORDANCE  WITH THE LAWS OF THE STATE OF CALIFORNIA WITHOUT REGARD TO CONFLICTS
OF  LAWS  PRINCIPLES.

    7.11    Assignment. This Agreement, and  Executive's  rights and obligations
            ----------
hereunder,  may  not  be  assigned  by  Executive;  any  purported assignment by
Executive in violation hereof shall be null and void.  In the event of any sale,
transfer  or  other  disposition  of  all  or substantially all of the Company's
assets  or  business, whether by merger, consolidation or otherwise, the Company
may  assign  this  Agreement  and  its  rights  hereunder;  provided  that  such
assignment  shall  not  limit  the  Company's  liability under this Agreement to
Executive.

    7.12    Withholding. The Company shall be  entitled  to  withhold  from any
           -----------
payments  or  deemed  payments  any  amount  of tax withholding required by law.

    7.13    Binding Effect. This Agreement shall be binding upon and inure to
           ---------------
the benefit  of  the  parties  and  their  respective successors, permitted
assigns, heirs,  executors  and  legal  representatives.

    7.14    Counterparts.  This  Agreement may be executed by the parties hereto
            ------------
in separate  counterparts, each of which when so executed and delivered shall
be an original  but  all  such counterparts together shall constitute one and
the same

                                        9
<PAGE>
instrument.  Each  counterpart  may  consist of two copies hereof each signed by
one  of  the  parties  hereto.

     7.15     Survival.  Anything  contained  in  this Agreement to the contrary
              --------
notwithstanding,  the provisions of Sections 6, 7.3, 7.5, 7.11 and 7.16, and the
other  provisions  of  this Section 7 (to the extent necessary to effectuate the
survival  of  Sections 6, 7.3, 7.5, 7.11 and 7.16), shall survive termination of
this  Agreement  and  any  termination  of  Executive's  employment  hereunder.

     7.16     Headings.  The  headings  in this Agreement are for reference only
              --------
and  shall  not  affect  the  interpretation  of  this  Agreement.

     7.17     Indemnification; Directors and Officers Insurance.  To the fullest
              -------------------------------------------------
extent  permitted  by law, the Company shall indemnify, defend and hold harmless
Executive  from  and  against  all  actual  or  threatened  actions,  suits  or
proceedings,  whether  civil  or  criminal,  administrative  or  investigative,
together  with  all  attorneys'  fees and costs, fines, judgments or settlements
imposed  upon  or incurred by Executive in connection therewith, that arise from
Executive's  employment by, or serving as an officer of, the Company, so long as
Executive acted or refrained from acting legally and in good faith or reasonably
believed  that his actions or refraining from acting were legal and performed or
omitted  in  good faith.  Company currently has directors and officers liability
insurance  and  will  use reasonable efforts to maintain such insurance coverage
during  the  term  of  this  Agreement.

     IN  WITNESS  WHEREOF,  the parties hereto have signed their names as of the
day  and  year  first  above  written.

                                   EMPLOYER

                                   Hi  Energy  Technologies,  Inc.,  a
                                   Washington  corporation

                                   By:  /s/  B.C.  Maglich
                                   ---------------------
                                   Name:  Dr.  Bogdan  C.  Maglich
                                   Its:  Chairman

                                   By:  /s/  Barry  Alter
                                   --------------------
                                   Name:  Barry  Alter
                                   Its:  Director
                                   EXECUTIVE

                                   /s/  Tom  Pascoe
                                   ------------------
                                   Tom  Pascoe

                                       10
<PAGE>

             INVENTION, NON-DISCLOSURE AND NON-COMPETITION AGREEMENT
             -------------------------------------------------------
                                    Exhibit A
                                    ---------
     Please  list  terms  of  any agreements with any previous employer or other
party  which  restrains  you  from  using  or  disclosing  any  trade  secret or
confidential  or  proprietary  information in the course of your employment with
___________________  or restrains you from competing directly or indirectly with
the  business  of  such  previous  employer  or  any  other  party.

Date Signed by
Executive:

9-23-02                                   /s/ Tom Poscoe
_____________________________________   _____________________________________
                                        Signature of Executive

                                        TOM POSCOE
                                        _____________________________________
                                        Printed Name of Executive
Reviewed and accepted by

B.C. Maglich
_________________________

    9/24/02
On_______________________

    /s/ B.C. Maglich
By:______________________

<PAGE><PAGE>

                                  EXHIBIT 10.21

                             STOCK OPTION AGREEMENT
                           (NONQUALIFIED STOCK OPTION)

OPTIONEE:                    Tom  Pascoe

NUMBER  OF  SHARES:          3,005,038

OPTION  EXERCISE  PRICE:     See  Section  1.3,  below

DATE  OF  GRANT:             September  25,  2002

EXERCISE  TERM:              Ten  Years  from  the  Date  of  Grant

VESTING  SCHEDULE:           See  Section  3,  below

     THIS OPTION AGREEMENT (the "AGREEMENT") is entered into effective as of the
25th  day  of  September,  2002  by  and  between HIENERGY TECHNOLOGIES, INC., a
Washington corporation (the "Company"), and the individual designated above (the
"Optionee").

                                    RECITALS
                                    --------

     WHEREAS,  an employment agreement (the "Employment Agreement") was executed
between  the  Optionee  and  the  Company  on  September  25,  2002;  and

     WHEREAS,  the  Optionee  has  agreed  to  perform valuable services for 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  $0.0001  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") shall be the lesser of (a) $1.00 per share;
or  (b) for any Offering (as defined below) that closes within six months of the
Date  of  Grant,  the  percentage  of the price per unit of the Company's equity
securities  (or the price per share at which a series of the Company's preferred
stock is convertible into the Company's Common Stock) set forth in the following
table:

Stock  Option  Agreement,  Tom  Pascoe  -  Page  1

<PAGE>
                                          Preferred     Common
                                        -----------  -----------
                        With Warrants        70%        90%
                        Without Warrants     80%       100%

An  "Offering"  shall be a sale of the Company's Common Stock or preferred stock
(either of which may be bundled with warrants or other securities to form a unit
of  securities)  for  cash  to  one  or  more investors who are not employees or
consultants of the Company for gross proceeds of $500,000 or more; provided that
the  term  "Offering"  shall  not  include  a  sale  of  the  Company's Series A
Convertible  Preferred  Stock  that  closes  by  September 30, 2002.  As soon as
practicable  after  the  date  that  is  six months after the Date of Grant, the
Company  and  the  Optionee  shall  execute a writing acknowledging the specific
Option  Exercise  Price.

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 or Section
5  hereof.

3.     VESTING.

     The  Option  shall  vest, 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, as follows: (a) with respect to 2,251,524 underlying Shares,
the  Option shall vest one-twelfth (1/12) with respect to such Shares on each of
the  dates that is the following number of months after the Date of Grant: 3, 6,
9,  12,  15,  18,  21,  24,  27,  30,  33,  36;  and (b) with respect to 750,499
underlying  Shares,  the  Option  shall  vest  with  respect to such Shares, the
earlier  of  (i) on the date when the closing sale price of the Company's common
stock  has  equaled  or  exceeded  $1.75  on every trading day in a period of 90
consecutive  calendar days, (ii) on the date immediately preceding a sale of the
Company  (whether  by  merger,  share  exchange or sale of assets) for $1.75 per
share  of Common Stock or more, or (iii) if the Company's Common Stock ceases to
be publicly traded, on the date following the Closing of an Offering at a deemed

Stock  Option  Agreement,  Tom  Pascoe  -  Page  2

<PAGE>
price  per  share  of Common Stock of $1.75 or more, using the pricing structure
set  forth  in  Section 1.3(b).  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  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 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 of 1933, as amended (the "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 (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 and (ii) the Company shall have issued
and  delivered  the  Shares  to  the  Optionee.

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:

          X  =  Y  -  (A)(Y)
                      ------
                         B

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

Stock  Option  Agreement,  Tom  Pascoe  -  Page  3

<PAGE>
          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.

"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
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.     TERMINATION.

5.1     Termination  Due  to  Death.  In  the event of the death of the Optionee
        ---------------------------
during  the Term of the Employment Agreement, any vested options shall terminate
at  the end of the Exercise Term.  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  options  shall  terminate immediately upon the death of the Optionee.

Stock  Option  Agreement,  Tom  Pascoe  -  Page  4

<PAGE>

5.2     Termination  Due  to  Disability.  If  the  Optionee's  status  as Chief
        --------------------------------
Executive  Officer  is  terminated at any time during the Term of the Employment
Agreement  by  reason  of  a  disability (as provided in Section 4 therein), any
vested  options  shall terminate at the end of the Exercise Term.  Any nonvested
options shall terminate immediately upon termination of the Optionee's status as
     Chief  Executive  Officer.

5.3     Termination  of  Employment  Agreement  for  Other  Reasons.  If  the
        -----------------------------------------------------------
Optionee's status as Chief Executive Officer is terminated at any time after the
grant  of  the  Option  other  than  due  to death or disability, as provided in
Sections  5.1  and  5.2,  and  not  pursuant  to  Section  5.1 of the Employment
Agreement,  then  (a)  any  vested  options  shall  terminate  at the end of the
Exercise  Term,  (b) subject to clause (c), below, 50% of such nonvested options
shall  vest  immediately  prior  to termination of the Employment Agreement, (c)
notwithstanding clause (b), above, and clause (d), below, if a change in control
event  or a sale transaction, as provided by Section 9.3, shall occur within six
months  following  the  Company's  termination  of  Optionee without cause under
Section  5.2  of  the  Employment Agreement, then any nonvested options that may
have  expired  shall  be deemed reinstated and fully vested immediately prior to
termination  of  the Employment Agreement, and (d) subject to clause (c), above,
any  remaining nonvested options shall terminate immediately upon termination of
the Employment Agreement. If the Optionee's status as Chief Executive Officer is
terminated pursuant to Section 5.1 of the Employment Agreement, (x) for cause by
the  Company,  then  any  options  that  have been granted to the Optionee shall
terminate  on the date of termination of the Employment Agreement, or (y) by the
Optionee,  then any vested options shall terminate 90 days following termination
of  the  Employment  Agreement,  and  any  nonvested  options  shall  terminate
immediately  upon  termination  of  the  Employment  Agreement.

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.  Upon
demand  by the Optionee, the Company shall register the Shares issuable upon the
exercise  of  the  Option  under any such laws within 30 days of such demand and
shall  make  all  reasonable  efforts  to  maintain  the  effectiveness  of such

Stock  Option  Agreement,  Tom  Pascoe  -  Page  5

<PAGE>

registration statement.  The Optionee shall cooperate with the Company to effect
such  registration,  including  certifying  such information about Optionee, his
plan  of distribution or other matters as may be necessary to prepare and file a
registration  statement.  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  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 provided that all other officers and directors of the Company
are  subject  to  the  same  restrictions.

8.     NO  RIGHT  TO  CONTINUED  STATUS  AS  CHIEF  EXECUTIVE  OFFICER.

     Nothing  in this Agreement shall be interpreted or construed to confer upon
the  Optionee  any  right with respect to continuance as Chief Executive Officer
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  Chief  Executive  Officer  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

Stock  Option  Agreement,  Tom  Pascoe  -  Page  6

<PAGE>
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 vested 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 become fully vested immediately prior to
such  transaction,  or, with the consent of the Optionee, be assumed or replaced
with  a  substitute  equivalent  option  as  proposed  by  the  Board.

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.

Stock  Option  Agreement,  Tom  Pascoe  -  Page  7

<PAGE>
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.

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  as  provided by the Employment Agreement.  Any
determination  made  hereunder  shall  be  final,  binding and conclusive on the
Optionee  and  the  Company  for  all  purposes.

16.     RATIFICATION.

     This  Agreement  and  the  Option  granted hereby shall be submitted to the
shareholders  for  their  ratification  at the next special or annual meeting of
shareholders  following  the  2002  annual meeting.  This Option shall remain in
effect  whether  or  not  such  ratification  is  obtained.

                  [remainder of page intentionally left blank]

Stock  Option  Agreement,  Tom  Pascoe  -  Page  8

<PAGE>

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

HIENERGY  TECHNOLOGIES,  INC.

By: ________________

Name: ______________

Title: _____________

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

OPTIONEE

Signature: ______________

Print  Name: ____________

                                [EXHIBIT  FOLLOWS]

Stock  Option  Agreement,  Tom  Pascoe  -  Page  9

<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 other than in compliance with the safe harbor
provisions  of  Rule  144  under  the  Securities Act of 1933, as amended, or as
permitted  by  the  general  instructions  to  Form  S-8;  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

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

Option  Exercise  Form  -  Page  1

<PAGE>
e)     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

f)     the  undersigned  has  reviewed  all of Company's 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>

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00044-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00044-of-00352.parquet"}]]