Document:

EXHIBIT 10.97

                           HIENERGY TECHNOLOGIES, INC.

                                 PROMISSORY NOTE

U.S. $50,000.00                                            DATE: AUGUST 30, 2004
Irvine, California

         1. AMOUNT. HiEnergy Technologies, Inc., a Delaware corporation having
its principal place of business located at 1601 Alton Parkway, Unit B, Irvine,
California 92606 (the "Borrower"), for value received, hereby promises to pay to
the order of MAGLICH FAMILY HOLDINGS, INC. (the "Lender") the following:

         Principal:        $50,000.00
         Interest Rate:    5%
         Date Due:         ON CALL

         2. PAYMENT. Any unpaid Principal and Interest on this Promissory Note
will become due and payable no later than above stated date. All such payments
shall be made in same day funds denominated in United States Dollars.

         3. INTEREST. Interest on the outstanding principal balance of this Note
shall accrue at the above stated per annum. Interest on the outstanding
principal balance of the Note shall be computed on the basis of the actual
number of days elapsed and a year of three hundred and sixty-five (365) days.

         4. PRESENTMENT. The Borrower (i) waives presentment, demand, protest
and notice of presentment, notice of protest and notice of any kind respecting
this Promissory Note; and (ii) agrees that this Promissory Note shall be binding
upon the Borrower and the Borrower's successors and assigns.

         5. REPLACEMENT. Upon receipt of a duly executed, notarized and
unsecured written statement from the Lender with respect to the loss, theft or
destruction of this Note (or any replacement hereof), and without requiring an
indemnity bond or other security, or, in the case of a mutilation of this Note,
upon surrender and cancellation of such Note, the Borrower shall issue a new
Note, of like tenor and amount, in lieu of such lost, stolen, destroyed or
mutilated Note.

          6. SEVERABILITY. In the event any one or more of the provisions
contained in this Promissory Note shall for any reason be held to be invalid,
illegal or unenforceable in any respect, such invalidity, illegality or
unenforceability shall, at the option of the Lender or any holder hereof, not
affect any other provision of this Promissory Note, but this Promissory Note
shall be construed as if such invalid, illegal or unenforceable provision had
never been contained herein.

         7. MODIFICATION. This Promissory Note may only be modified by an
agreement in writing executed by the Borrower and Lender. The Borrower has the
full power, authority and legal right to execute and deliver this Promissory
Note, and represents that this Promissory Note constitutes a valid and binding
obligation of the Borrower.
<PAGE>

         8. WAIVERS. Any failure of the Lender to exercise any right hereunder
shall not be construed as a waiver of the right to exercise the same or any
other right at any other time.

         9. ENFORCEMENT EXPENSES. The Borrower agrees to pay all costs and
expenses of enforcement of this Note, including, without limitation, reasonable
attorneys' fees and expenses.

         10. TERMS DEFINED. The terms "Borrower" and "Lender" as used in this
Promissory Note shall include their respective heirs, executors, personal
representatives, successors and assigns.

         11. BINDING EFFECT. The obligations of the Borrower and the Lender set
forth herein shall be binding upon the successors and assigns of each such
party.

         12. CONTROLLING LAW. This Note shall be governed by the laws of the
United States of America and the State of California, without regard to the
principles of conflicts laws of those jurisdictions.

         IN WITNESS WHEREOF, the Borrower has executed and delivered this Note
as of the date first written above.

                             HIENERGY TECHNOLOGIES, INC.
                             A Delaware Corporation

                             By:     /s/ Bogdan C. Maglich
                                 -----------------------------
                                 Name: Dr. Bogdan C. Maglich
                                 Title: Chairman and CEOEXHIBIT 10.98

[LOGO] LOCKWOOD GREENE                             14901 Quorum Drive, Suite 900
ENGINEERING & CONSTRUCTION                                 Dallas, TX 75254-7021
                                                          Telephone 972.991.5505
                                                          Facsimile 972.960.2070
                                                                      www.lg.com
                                                dabp200406.005.PROP.HiEnergy.doc

07 June 2004

Mr. Bogdan Castle Maglich, M.Sc., Ph.D., F.A.P.S.
Chairman & Chief Scientific Officer
HiEnergy Technologies, Inc.
1601B Alton Parkway
Irvine, California 92606

Dear Mr. Maglich:

SUBJECT:   PROPOSAL FOR DETAILED CONCEPT DESIGN SERVICES
           LOCKWOOD GREENE PROPOSAL NO. DA-04-0097

The need for HiEnergy Technologies, Inc. to quickly define the manufacturing
resources that will be needed to produce its first commercial product, the
CarBomb Finder, and plan for potential future products has become more urgent
due to the award of the first contract for this project. As a result of this
urgency, Lockwood Greene proposes to skip our proposed Visioneering sessions and
move into the detailed concept design effort.

We, therefore, propose immediately to undertake the effort to build upon the
preliminary manufacturing assessment and develop a detailed conceptual design of
processes and facilities for the commercial manufacture of HiEnergy's CarBomb
Finder products.

SCOPE OF WORK

Lockwood Greene will provide the following services under this proposal:

Travel to HiEnergy Technologies' California headquarters for a two-day period
in kick off meeting with the purpose of reviewing and confirming information
gathered during the manufacturing needs assessment, and obtaining all available
information regarding the following:

o Product configuration and components, including integration of a vehicle
  and/or base modules
o Supplier information
o Schedule requirements
o Confirm strategic direction - facility options, flexibility needs for
  future products, facility size, facility rent/lease/build preference, etc.

From this information and information developed during the preliminary
manufacturing needs assessment, our team will determine design a "lean"
manufacturing process for the cost efficient production of CarBomb Finders in
response to customer demand. The manufacturing concept will include
manufacturing and testing activities, process flow, equipment requirements,
inventory/storage requirements, area requirements, equipment cost estimates and
direct labor headcount. Lockwood Greene will begin by developing a process flow
chart for the assembly of HiEnergy products. This will include identifying
process steps and cycle time analysis.
<PAGE>

Our manufacturing concept design effort will include the following activities: |
 Conduct analysis products to be produced at start-up and capacity requirements
forecasts
 Determine safety stock requirements
 Determine manufacturing equipment products and quantities required to meet
forecasted capacity requirements
 Develop specifications for key manufacturing tools and equipment including
material handling systems and electrical systems bench test modules
 Refine manufacturing equipment cost estimate

When this level of process definition has been established, we will determine
and develop the facility requirements to provide adequate support of the
processes and functions that will take place within it, including:

 Utilities, fire protection, and water
 Environmental and regulatory compliance
 Shielding
 Number of dock doors
 Management and support space (offices, conference rooms, amenities, etc.)
 Research and development area and equipment
 Overhead clearances
 Finish level
 Test area
 Manufacturing area
 Building footprint
 Facility cost estimate

This will provide the information required for the Lockwood Greene design team
to develop a site plan that includes highway access requirements, parking, site
traffic plan for trucks and private vehicles, environmental controls, site
drainage, and containment.

The Lockwood Greene team will then develop a schedule for facility design,
equipment procurement, construction, equipment installation, commissioning,
production, and manpower ramp-up.

Concurrent with the manufacturing, facility, and site plan design, Lockwood
Greene will contact potential suppliers of key components to determine their
capability to meet HiEnergy's anticipated demand quantities, and make
recommendations regarding the types of supplier relationships that will be
required to ensure the availability of needed quantities of components.

DELIVERABLE AND OUTPUT RESULTS

Lockwood Greene will document information developed in the scope of work above
in a final report. The Final Report will contain the following information:
<PAGE>

 Manufacturing process flow charts
 Cycle time estimates
 Direct labor headcount estimate
 Facility concept layout and elevation drawings with general arrangements for
equipment, area sizing, and facility footprint
 Generate equipment lists, instrument lists, and electrical load data sheets
 Site plan concept drawings
 Equipment and facility costs estimates
 Preliminary make-buy recommendations based on manufacturing needs
 Milestone project schedule
 List of concept assumptions
 Recommendations for key component procurement
 Recommended project schedule including site selection, design, construction,
equipment procurement, commissioning, production ramp-up, manpower ramp-up, and
training

This report will provide HiEnergy with key recommendations and schedule for the
path forward as well as a basis for detailed facility design and procurement of
key process equipment.

TO BE PROVIDED BY HIENERGY TECHNOLOGIES

In order to facilitate this report, HiEnergy Technologies, Inc. will need to
have as much of the following information as possible available prior to the
meeting with Lockwood Greene

Consulting:
 An updated list of parts and components and parts required for configuration
of CarBomb Finders product to be considered in the analysis
 Known information about components and manufacturing requirements
 All known material, tolerance, and finish requirements for each component
 Information regarding hazardous materials and radiation levels
 Identification of known and current manufacturer(s)/supplier(s) of each key
component
 All known and anticipated testing requirements for materials, individual
components, and assemblies
 Confirmation processes that cannot be outsourced due to their proprietary
nature
 Estimate of five-year sales/production rate per product

SCHEDULE

Lockwood Greene proposes to complete the scope of work described in this
proposal no later than five weeks from project kick-off as outlined in the
schedule below. Lockwood Greene will deliver the final report and present the
results of our concept design efforts to HiEnergy's management staff immediately
upon conclusion of the concept design.
<PAGE>

WORK PLAN ACTIVITIES                         1       2       3       4      5
1.  California kick-off meeting              X
2.  Develop process flow charts              X       X
3.  Estimate process cycle times                     X       X       X
4.  Determine storage requirements           X       X
5.  Develop process concept layouts          X       X       X
6.  Develop equipment lists                          X       X
7.  Develop specs for key equipment          X       X       X
8.  Develop final process layouts                            X       X
9.  Develop equipment cost estimate          X       X       X
10. Develop site plan                                               X
11. Develop facility cost estimate                   X       X
12. Supplier contacts and analysis           X       X       X
13. Develop schedule                                        X       X
14. Final facility and site layout
      drawings                                                      X      X
15. Prepare final report                                            X      X
16. Final presentation to client                                           X

PROJECT TEAM

Lockwood Greene proposes to maintain continuity and the eliminate learning curve
by assigning a preliminary manufacturing assessment team of Project Manager,
Steve Yellin, and Manufacturing Specialists, Dennis Stamm and Steve Frech, to
this project. Other manufacturing specialists and engineering disciplines will
participate as needed to complete this project.

COMPENSATION

We propose to complete this effort for a fixed fee of $82,875, plus expenses as
incurred. We anticipate that expenses will not exceed $4,000. Expenses will be
invoiced to HiEnergy with backup documentation as a pass through for incurred
expenses only.

Lockwood Greene is committed to providing HiEnergy Technologies with a quality
service for improving your operations and a competitive advantage in today's
market. Thank you for the opportunity to submit this proposal. We look forward
to working with your team.

Sincerely,

LOCKWOOD GREENE

       /s/

Stephen L. Yellin
Group Director Advanced Technology Western Division

APPROVED BY:
HIENERGY TECHNOLOGIES, INC.
<PAGE>

       /s/                                       July 26, 2004
------------------------------------------   --------------------
Signature                                    Date

This approval is subject to
1. The approval of the Board of Directors and               /s/
2. A mutually agreeable Activities and Payment Schedule.    Bodgan C. Maglich

This proposal, including all data contained herein, is proprietary and shall not
be disclosed to third parties without the express consent of Lockwood Greene.

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