July 22, 2003



Seabury Transportation Advisors LLC
Attention:  Roy Clauss, Managing Director
540 Madison Avenue, 17th Floor
New York, NY 10022

Dear Roy:

With reference to our Agreement dated December 16, 2002,  herein please find our
notification  according to Section 2:  Authorization  Period,  to terminate  the
agreement according to a "Company Termination Event".

On a personal  note, I would be pleased to meet with you on my next visit to New
York to discuss potential future cooperation.


Sincerely yours,
HiEnergy Technologies, Inc. by


/s/ Bogdan C. Maglich
---------------------------------
Bogdan C. Maglich
CEO


P.S. We are aware of our  obligation to Seabury of the  remaining  amount of the
retainer  of  $25,000  which  will be paid to you as soon as our  situation  has
improved.