Document:

Exhibit 10.60

SBI USA
                                                         2361 C Drive, Suite 210
                                                                Irvine, CA 92612
                                                                  (949) 079 8330
                                                                  (940) 679 7280

August 1, 2003

HiEnergy Technologies, Inc.
1601 Alton Parkway
Unit B
Irvine, CA 92606

Attention: Bogdan Maglich
           Chief Executive Officer

Gentlemen:

         This will confirm the understanding and agreement (the "Agreement')
between SBI -- USA ("SBI") and HiEnergy Technologies, Inc. (together with its
successors, subsidiaries, or assigns, the "Company") as set forth below.

         1. Retention of SBI. The Company hereby engages SBI, and SBI accepts
such engagement, to provide to the Company a support letter (the "Support
Letter"), substantially in the form of the letter, addressed to William
Armstrong, Contracting Officer, Naval Surface Warfare Center, attached hereto as
Annex A.

         2. Offering and Sale. The Company acknowledges that, in the event that
SB! should be required to acquire any shares of common stock of the Company
("Shares"), as contemplated by the Support Letter, the proceeds of such
acquisition shall delivered against the delivery of securities of the Company in
accordance with, and subject to, the terms and conditions set forth herein. Any
such transaction shall be in compliance with Section 4(2) of the Securities Act
of 1933, as amended (the "Securities Act"), and, at the election of SBI,
Regulation D or Regulation S thereunder and state securities law, and be subject
to the registration provisions set forth herein.

         3. Fees and Expenses. In the event that the Company shall be awarded
the contract referenced in the Support Letter (Solicitation No- BAA N001 78-01 -
-Q-3040), the Company shall upon the execution of the contract pay to SBI a
non-refundable fee of $150,000. In the event that the Company shall not be
awarded the contract referenced in the Support Letter (Solicitation No. BAA N00l
78-01 -Q-3040), the Company shall upon the receipt of the first event of
communication from the Navy concerning notice of such potential award or
rejection pay to SBI a non-refundable fee of $50,000. In the event that the
Company shall receive either of the notices referenced in the two immediately
preceding sentences, but shall fail to promptly notify SBI or shall fail to
promptly pay such fee to SBI, such fee shall accrue interest at the rate of 24%
per annum. In addition to the fees set forth in this Paragraph 3, the Company
shall pay all of its costs and expenses incident to the purchase of the Shares,
including without limitation, all fees and expenses of filings with the
Securities and Exchange Commission and the National Association of

<PAGE>

Securities Dealers, Inc., in each case if applicable; all blue sky fees and
expenses; all fees of the counsel to SBI, fees of counsel and accountants for
the Company; any private placement documents; and blue sky memoranda.

         4. Conditions of SBI's Obligations; Corporate Changes:

         (a) The Company shall not be in violation of any term of its
Certificate of Incorporation or Bylaws or any material mortgage, indenture,
contract, agreement, instrument, judgment, decree, order, or any statute, rule
or regulation applicable to it, the violation of which shall have had or would
be likely to have a material adverse effect on the business, operations,
affairs, financial condition or prospects of the Company, or any of its
properties or assets, or shall have resulted or would be likely to result in any
material impairment of the right or ability of the Company to carry on its
business as now conducted or as proposed to be conducted or any material
liability on the part of the Company.

         (b) The Company shall, at the time of any acquisition of securities
contemplated hereby by SBI and for the period of 90 days prior thereto and
following the date of such acquisition, shall be in compliance in all material
respects with its reporting and other requirements under the Securities Exchange
Act of 1934, as amended (the "Exchange Act").

         (c) The registration statement relating to the resale of the Shares
(the "Registration Statement") shall have been declared effective under the
Securities Act. The Registration Statement, including the prospectus
constituting a part thereof, shall be at all times in conformity with the
requirements of the Securities Act and the applicable rules and regulations
whether under the Securities Act, the Exchange Act, or otherwise (the "Rules and
Regulations") of the Securities and Exchange Commission (the "Commission") under
the Securities Act Additional amendments or supplements to the Registration
Statement shall be prepared by the Company and filed with the Commission as may
hereafter be required in the reasonable opinion of SBI. The Commission shall not
have issued any order preventing or suspending the use of any final prospectus
(the "Prospectus") included in the Registration Statement or instituted
proceedings for that purpose, and the Prospectus shall conform to the
requirements of the Securities Act and the Rules; and at the time the
Registration Statement becomes effective under the Securities Act, and at all
times thereafter, (i) the Registration Statement and the Prospectus, and any
amendments or supplements thereto, contained and will contain all material
information required to be included therein by the Securities Act and the Rules
and Regulations and will conform to the requirements of the Securities Act and
the Rules and Regulations, and (ii) neither the Registration Statement nor the
Prospectus, or any amendments Or supplements thereto, will include any untrue
statement of a material fact or omit to state a material fact necessary to make
the statements therein not misleading; provided, however that none of the
representations and warranties contained in this subparagraph shall apply to
information contained in or omitted from the Registration Statement or
Prospectus, or any amendment or supplement thereto, in reliance upon, and in
conformity with, written information relating to SBI specifically and expressly
furnished to the Company by SBI for use in the preparation thereof.

         5. Representations and Covenants. The Company represents, warrants, and
covenants that:

<PAGE>

         (a) The Company is currently in compliance in all material respects
with all requirements under the Exchange Act All filings with the Commission
conform to the requirements of the Exchange Act and the Rules and Regulations.
Each filing by the Company with the Commission contained all material
information required to be included therein by the Exchange Act and the Rules
and Regulations and will conform to the requirements of the Exchange Act and the
Rules and Regulations, and (ii) no filing made or to be made by the Company with
the Commission under the Exchange Act, or any amendments or supplements thereto,
contained when filed or will include when filed any untrue statement of a
material fact or omit to state a material f necessary to make the statements
therein not misleading. SBI understands that the Company's Form 10-KSB for
fiscal year 2003 is being filed late.

         (b) The Company agrees to indemnify SBI in accordance with the
indemnification provisions (the "Indemnification Provisions') attached to this
Agreement as Exhibit A, which Indemnification Provisions arc incorporated herein
and made a part hereof

         6. Statement of Intent: SBI intends to proceed with the transactions
conemplated hereby as soon as practicable after availability of the required
final documentation and the terms of this Letter Agreement have been satisfied;
provided, however, that SBI reserves the right not to proceed with the
transactions contemplated hereby if any condition set forth herein is not
satisfied on a timely basis.

         7. Other Matters:

         (a) If the Company or SB1 decides not to proceed with the transactions
contemplated hereby for any reason whatsoever, all expenses incurred by SBI in
connection with the transactions contemplated hereby, and in connection
herewith, will be repaid promptly by the Company in accordance with all
provisions described herein.

         (b) SBI and the Company agree that any controversy arising out of or
relating to this letter of intent or proposed offering contemplated hereby,
shall be settled by arbitration in accordance with the rules then in effect on
the National Association of Securities Dealers, Inc.

                     [REMAINDER OF PAGE INTENTIONALLY BLANK]

<PAGE>

         If the foregoing correctly sets forth the understanding we have
heretofore reached regarding the proposed transactions, including the
Transaction, please sign and return the enclosed copy of this letter by August
1, 2003. If this Letter of Intent is not signed by August 1, 2003, and an
extension has not been mutually agreed upon in writing by the Company and SBI,
this Letter of intent will be considered void. By accepting this letter, the
Company agrees to keep this letter and all terms confidential and not to "shop"
it with any other investment bankers.

                                              Very truly yours,

                                              SBI-USA

                                              By: /s/ Shelly Singhal
                                                  ------------------
                                                  Shelly Singhal
                                                  Managing Director

ACCEPTED AND AGREED TO
this 1st day of August, 2003

HIENERGY TECHNOLOGY, INC.

By: /s/ Bogdan C. Maglich
     ---------------------
     Name:  Bogdan C. Maglich
     Title: President & CEO

<PAGE>

                                    EXHIBIT A

         SBI USA ("SBI") intends to conduct the transactions with HiEnergy
Technologies, Inc. (the "Company") contemplated by the Agreement (the
`Agreement') to which this Exhibit A is attached. Accordingly, the Company
agrees to indemnify and hold harmless SBI and its affiliates, its directors,
officers, agents, and employees and affiliates, and each other person, if any,
controlling SBI or any of its affiliates (collectively the "Indemnified
Persons"), from and against any losses, claims, damages, liabilities or expenses
(or actions, including shareholder actions, in respect thereof) related to or
arising out of such transactions or SBI's role in connection therewith, and will
reimburse the Indemnified Persons for all reasonable expenses (including
out-of-pocket expenses and SBI's counsel fees and expenses) as they are incurred
by the Indemnified Persons in connection with investigating, preparing or
defending any such action or claim, whether or not in connection with pending or
threatened litigation in which SBI or any Indemnified Person is a party. The
Company will not, however, be responsible to SBI for any losses, claims,
damages, liabilities, or expenses which are finally judicially determined to
have resulted primarily from such SBI's willful misconduct or bad faith or as a
result of the material misstatement or omission of any information relating to
SBI expressly provided thereby for inclusion in the Registration Statement (as
defined in the Agreement). The Company also agrees that none of the Indemnified
Persons shall have any liability to the Company for or in connection with the
services or matters pertaining to the Agreement except for any such liability
for losses, claims, damages, liabilities or expenses incurred by the Company
that results primarily from any SBI's willful misconduct or bad faith or any
such material misstatement or omission referenced in the immediately preceding
paragraph. If the forgoing indemnity is unavailable or insufficient to hold the
indemnified Persons harmless, then the Company shall contribute to the amount
paid or payable by the Indemnified Persons, in respect of the Indemnified
Persons, for losses, claims, damages, liabilities, or expenses in such
proportion as appropriately reflects the relative benefits received by, and
fault of, the Company, on the one hand and the Indemnified Persons, on the
other, in connection with the matters as to which such losses, claims, damages,
liabilities or expenses relate and other equitable consideration; provided,
however, the Company agrees that the aggregate contribution of all Indemnified
Persons shall in all cases be not more than the amount of paid by SBI to the
Company in connection with the transactions contemplated hereby. It is hereby
further agreed that the relative benefits to the Company on the one hand and the
Indemnified Persons on the other with respect to any transaction contemplated by
the Agreement shall be deemed to be in the same proportion as (I) the total
value of the transaction bears to (ii) the fees actually paid to SBI in respect
to such transaction. The foregoing Agreement shall be in addition to any rights
that SBI or any Indemnified Person may have at common law or otherwise. The
Company hereby consents to personal jurisdiction and service and venue in any
court in which any claim which is subject to this Agreement is brought against
SBI or any other Indemnified Person. If any action, proceeding, or investigation
is commenced as to which an Indemnified Person demands indemnification, the
Indemnified Person shall have the right to retain counsel of its own choice to
represent it, the Company shall pay the reasonable fees and expenses of such
counsel, and such counsel shall to the extent consistent with its professional
responsibilities cooperate with the Company and any counsel designated by the
Company; provided that the Company shall not be responsible for the fees and
expenses of more than one counsel. Nothing herein is intended to relieve SBI of
the risks incident to agreeing to make an investment as contemplated by the
support letter, without detracting from the Company's liability for any breach
or non-performance of the Agreement or this Exhibit A.

<PAGE>

                                     Annex A

[SBI USA LOGO]                                     SBI USA
                                                   2361 Campus Drive, Suite 210
                                                   Irvine, CA 92612
                                                   (949)679-8338
                                                   (949) 679-7280

William Armstrong
Contracting Officer
Naval Surface Warfare Center
17320 Dahlgren Road
Dahlgren, VA 22448-5100

Re: Solicitation No. BAA N00178-01-Q-3040
    HiEnergy Technologies, Inc.
    "Remote Stoichiometric screening system to detect anthrax and other
    biological and chemical agents inside sealed containers"

Dear Mr. Armstrong:

SBI USA is a firm specializing in financial advisory and fundraising for
technologies companies. We are part of the Softbank family, a multi-million
dollar Japanese conglomerate with investments in over 600 technology companies.
Our group has invested and raised over $10 million in the past 3 months.

This letter is a being delivered in support of HiEnergy's efforts to
successfully satisfy the Navy's requirements in order to execute the above
proposed contract of approximately $1.5 Million for a Feasibility Study and
Prototype Phase to build a system to detect Biological and Chemical agents
inside sealed containers and is in accordance with, and subject to, our existing
agreements with HiEnergy.

We confirm that SBI-USA will provide the necessary funding of a minimum of $2.5
Million an a maximum of $4 Million, by purchasing free trading shares, to
guarantee that HiEnergy will have positive cash flow through the performance of
the 18 Month contract which is contemplated by the Naval Surface Warfare Center.

Please feel free to contact myself directly at (949) 679-8326 with any questions
which you may have.

Sincerely,

/s/ Shelly Singhal
------------------------
Shelly Singhal
Managing DirectorExhibit 10.72

                                ESCROW AGREEMENT

                  This  ESCROW  AGREEMENT  (this  "Agreement")  is  made  as  of
________, 2003, by and among HiEnergy Technologies, Inc., a Delaware corporation
(the  "Seller"),  the  buyer  of the  Seller's  securities  as set  forth on the
signature   page  hereto  or  any   permitted   assignee  of  such  person  (the
"Purchaser"), and Yocca Patch & Yocca, LLP, having an address at 19900 MacArthur
Blvd.,  Suite 650, Irvine,  California  92612 (the "Escrow Agent").  CAPITALIZED
TERMS USED BUT NOT DEFINED HEREIN SHALL HAVE THE MEANINGS SET FORTH IN THE STOCK
PURCHASE AGREEMENT REFERRED TO IN THE FIRST RECITAL.

                  WHEREAS,  the  Purchaser  will  purchase  from the  Seller for
$_____ in cash (the "Purchase  Price") a total of _____ shares of authorized and
previously unissued Common Stock, par value $0.001, of the Seller (the "Shares")
plus a  warrant  to  purchase  an  additional  _____  shares of  authorized  and
previously  unissued  Common  Stock,  par  value  $0.001,  of  the  Seller  (the
"Warrant")  pursuant to the Stock Purchase Agreement (the "Purchase  Agreement")
entered into between the Purchaser and the Seller,  and such Shares and Warrants
shall be sold and issued  pursuant to the terms and conditions  contained in the
Purchase Agreement; and

                  WHEREAS,  the Seller and the Purchaser have requested that the
Escrow Agent hold in escrow the applicable purchase price pending receipt by the
Purchaser  of the Shares  and the  Warrant  issuable  pursuant  to the  Purchase
Agreement;

                  NOW,  THEREFORE,  in consideration of the covenants and mutual
promises contained herein and other good and valuable consideration, the receipt
and legal  sufficiency  of which are hereby  acknowledged  and  intending  to be
legally bound hereby, the parties agree as follows:

                                   ARTICLE I

                               TERMS OF THE ESCROW

                  1.1 On the date that the Seller and the  Purchaser  enter into
the Purchase  Agreement,  the  Purchaser  shall send the  Purchase  Price of the
Shares, as set forth on the signature pages hereto (the "Purchase Payment"),  to
the Escrow Agent.

                  1.2 Seller shall  promptly  thereafter,  but not more than one
(1) Trading Day after Escrow Agent's receipt of the Purchase  Payment from or on
behalf of the Purchaser,  cause its transfer agent or  intermediary to issue the
Shares  issuable  to  the  Purchaser  by  delivery  of  a  duly  executed  stock
certificate  representing  the Shares and cause the Warrant to be  delivered  to
Purchaser directly or through an agent or intermediary.

                  1.3 Upon receipt of written  confirmation  that the Shares and
Warrant have been  delivered,  the Escrow Agent shall, as promptly as reasonably
practicable,  wire or pay 100% of the  Purchase  Payment  to the  Seller per the
wiring or other instructions of the Seller.

                  1.4 In the event that,  within  three (3) Trading  Days of the
date of the Escrow  Agent's  notice that the Purchase  Price was  received,  the
applicable Shares and Warrant are not received by Purchaser, then the Purchaser

                                       1
<PAGE>

shall have the right to demand,  by notice to the Escrow  Agent and the  Seller,
the return of the full Purchase Payment,  and, at the election of the Purchaser,
the Purchase Agreement with the Purchaser shall be deemed null and void.

                  1.5  Purchaser  hereby  appoints  _________  as his  agent and
attorney-in-fact  for purposes of giving  notices and receipts of notices  under
this  Agreement,  and the  Escrow  Agent  may rely  upon  instructions  or other
communications  received from such attorney in fact as if such  instructions  or
communications were received directly from Purchaser.

                  1.6  Wire  transfers  to the  Escrow  Agent  shall  be made as
follows:

         Account Name:              Attorney Client Trust Account

         Account Number:            1664304022

         Routing Number:            121000358

         Bank:                      Bank of America
                                    Irvine Industrial Branch
                                    4101 MacArthur Boulevard
                                    Newport Beach, CA 92660

         Bank Contact:              John V. Dao, Senior Bank Officer
                                    (949) 477-2901

                                   ARTICLE II

                                  MISCELLANEOUS

                  2.1.  No waiver or any  breach of any  covenant  or  provision
herein contained shall be deemed a waiver of any preceding or succeeding  breach
thereof, or of any other covenant or provision herein contained. No extension of
time for  performance  of any  obligation or act shall be deemed an extension of
the time for performance of any other obligation or act.

                  2.2. All notices or other communications required or permitted
hereunder  shall be in  writing,  and shall be sent by fax,  overnight  courier,
registered or certified mail,  postage prepaid,  return receipt  requested,  and
shall be deemed  received  upon  receipt  thereof,  as set forth in the Purchase
Agreement.

                  2.3. This  Agreement  shall be binding upon and shall inure to
the benefit of the permitted  successors  and  permitted  assigns of the parties
hereto.

                  2.4. This  Agreement is the final  expression of, and contains
the entire  agreement  between,  the parties with respect to the subject  matter
hereof and  supersedes  all prior  understandings  with  respect  thereto.  This
Agreement may not be modified, changed,  supplemented or terminated, nor may any

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<PAGE>

obligations  hereunder  be waived,  except by written  instrument  signed by the
parties to be charged or by their  respective  agents duly authorized in writing
or as otherwise expressly permitted herein.

                  2.5. Whenever  required by the context of this Agreement,  the
singular shall include the plural and masculine shall include the feminine. This
Agreement  shall  not be  construed  as if it had  been  prepared  by one of the
parties,  but rather as if both parties had prepared the same.  Unless otherwise
indicated, all references to Articles are to this Agreement.

                  2.6. The parties  hereto  expressly  agree that this Agreement
shall be governed by, interpreted under and construed and enforced in accordance
with the laws of the State of Delaware.  Except as expressly  set forth  herein,
any action to enforce, arising out of, or relating in any way to, any provisions
of this Agreement shall be brought in the Federal or state courts of Delaware is
more fully set forth in the Purchase Agreement.

                  2.7.  The Escrow  Agent's  duties  hereunder  may be  altered,
amended,  modified or revoked only by a writing signed by the Seller,  Purchaser
and the Escrow Agent.

                  2.8.  The  Escrow  Agent  shall  be  obligated  only  for  the
performance of such duties as are specifically set forth herein and may rely and
shall be  protected  in  relying or  refraining  from  acting on any  instrument
reasonably believed by the Escrow Agent to be genuine and to have been signed or
presented  by the  proper  party or  parties.  The  Escrow  Agent  shall  not be
personally liable for any act the Escrow Agent may do or omit to do hereunder as
the  Escrow  Agent  while  acting in good  faith,  excepting  only its own gross
negligence  or  willful  misconduct,  and any act done or  omitted by the Escrow
Agent pursuant to the advice of the Escrow Agent's  attorneys-at-law (other than
Escrow Agent itself) shall be conclusive evidence of such good faith.

                  2.9.  The  Escrow  Agent is  hereby  expressly  authorized  to
disregard  any and all  warnings  given by any of the  parties  hereto or by any
other person or  corporation,  excepting only orders or process of courts of law
and is hereby expressly authorized to comply with and obey orders,  judgments or
decrees of any court.  In case the Escrow Agent obeys or complies  with any such
order,  judgment or decree,  the Escrow  Agent shall not be liable to any of the
parties  hereto or to any other person,  firm or  corporation  by reason of such
decree being subsequently  reversed,  modified,  annulled, set aside, vacated or
found to have been entered without jurisdiction.

                  2.10.  The Escrow  Agent shall not be liable in any respect on
account of the  identity,  authorization  or rights of the parties  executing or
delivering  or  purporting  to execute or deliver the Purchase  Agreement or any
documents or papers deposited or called for thereunder or hereunder.

                  2.11.  The Escrow Agent shall be entitled to employ such legal
counsel and other  experts as the Escrow  Agent may deem  necessary  properly to
advise the Escrow Agent in connection with the Escrow Agent's duties  hereunder,
may rely upon the advice of such  counsel,  and may pay such counsel  reasonable
compensation  therefor.  THE ESCROW AGENT ACTS AS LEGAL  COUNSEL FOR THE SELLER,
AND SHALL CONTINUE TO ACT AS LEGAL COUNSEL FOR THE SELLER,  NOTWITHSTANDING  ITS
DUTIES AS THE ESCROW AGENT  HEREUNDER.  THE SELLER  COMPENSATES THE ESCROW AGENT
FOR PERFORMING DUTIES  HEREUNDER.  THE PURCHASER AND SELLER EACH CONSENTS TO THE

                                       3
<PAGE>

ESCROW  AGENT IN SUCH  CAPACITY  AS LEGAL  COUNSEL FOR THE SELLER AND WAIVES ANY
CLAIM THAT SUCH REPRESENTATION REPRESENTS A CONFLICT OF INTERESTS ON THE PART OF
THE ESCROW AGENT.  THE SELLER AND PURCHASER EACH  UNDERSTAND THAT THE SELLER AND
THE ESCROW AGENT ARE RELYING  EXPLICITLY ON THE FOREGOING  PROVISION IN ENTERING
INTO THIS AGREEMENT.

                  2.12.  The Escrow  Agent's  responsibilities  as escrow  agent
hereunder  shall terminate if the Escrow Agent shall resign by written notice to
the  Seller  and the  Purchaser.  In the  event  of any  such  resignation,  the
Purchaser and the Seller shall appoint a successor Escrow Agent.

                  2.13. If the Escrow Agent reasonably requires other or further
instruments in connection  with this Agreement or obligations in respect hereto,
the necessary parties hereto shall join in furnishing such instruments.

                  2.14.  It is  understood  and agreed  that  should any dispute
arise with respect to the delivery  and/or  ownership or right of  possession of
the documents or the escrow funds held by the Escrow Agent hereunder, the Escrow
Agent is  authorized  and  directed  to deliver  the escrow  funds and any other
property and documents held by the Escrow Agent  hereunder to a state or Federal
court having competent  subject matter  jurisdiction and located in the State of
Delaware in accordance with the applicable procedure therefor.

                  2.15. The Seller and the Purchaser agree jointly and severally
to indemnify  and hold  harmless the Escrow Agent and its  partners,  employees,
agents  and  representatives  from  any and all  claims,  liabilities,  costs or
expenses in any way arising from or relating to the duties or performance of the
Escrow  Agent  hereunder  or  the  transactions  contemplated  hereby  or by the
Purchase Agreement other than any such claim, liability,  cost or expense to the
extent the same shall have been determined by final,  unappealable judgment of a
court of competent  jurisdiction  to have resulted from the gross  negligence or
willful misconduct of the Escrow Agent.

                  2.16.  The  execution  of  this  Agreement  and  delivery  and
exchange of signed copies by facsimile,  in one or more  counterparts,  shall be
deemed fully valid and binding. The parties also agree to forward promptly their
original signature on a copy of this Agreement to the other party.

                         [SIGNATURES ON FOLLOWING PAGE]

                                       4
<PAGE>

                  IN WITNESS  WHEREOF,  the parties  hereto have  executed  this
Escrow Agreement as of the date first indicated above.

SELLER:                                       ESCROW AGENT:

HIENERGY TECHNOLOGIES, INC.                   YOCCA PATCH & YOCCA, LLP

By:  __________________________               By:  _____________________________
Name: Bogdan C. Maglich                       Name:  Nicholas J. Yocca
Title: Chairman, CEO and Treasurer            Title:  Partner

PURCHASER:

By:___________________________
Name:
Title:

                                       5

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