Document:

EXHIBIT 10.70

                               SECURITY AGREEMENT

     This Security Agreement, made as of the 7th day of October, 2002 is entered
into by and between Laurus Master Fund, Ltd. ("Laurus") and Implant Sciences
Corporation, a Massachusetts company (the "Company") (the "Agreement").

     1. To secure the payment of all Obligations (as hereafter defined), the
Company hereby grants to Laurus a continuing security interest in all of the
following property now owned or at any time hereafter acquired by the Company,
or in which the Company now has or at any time in the future may acquire any
right, title or interest (the "Collateral"): all accounts (the "Accounts"),
inventory, equipment, goods, documents, instruments (including, without
limitation, promissory notes), contract rights, general intangibles (including,
without limitation, payment intangibles), chattel paper, supporting obligations,
investment property, letter-of-credit rights, trademarks and tradestyles in
which the Company now has or hereafter may acquire any right, title or interest,
all proceeds and products thereof (including, without limitation, proceeds of
insurance) and all additions, accessions and substitutions thereto or therefor.
Terms used in this paragraph which are defined in the Uniform Commercial Code as
enacted and in effect from time to time in the State of New York (the "Code")
are used herein as so defined in the Code.

     2. The term "Obligations" as used herein shall mean and include all debts,
liabilities and obligations owing by the Company to Laurus and all loans,
advances, extensions of credit, endorsements, guaranties, benefits and/or
financial accommodations heretofore or hereafter made, granted or extended by
Laurus to the Company or which Laurus has or will become obligated to make,
grant or extend to us or for the Company's account or any of its accounts and
any and all interest, charges and/or expenses heretofore or hereafter owing by
the Company to Laurus and any and all renewals or extensions of any of the
foregoing, no matter how or when arising, direct or indirect, absolute or
contingent, liquidated or unliquidated, and whether under any present or future
agreement or instruments between the Company, Laurus and any or all subsidiaries
or otherwise, including, without limitation, all obligations owing by the
Company to Laurus under the Securities Purchase Agreement of even date herewith
and related Series A Preferred Stock in the original Stated Value of $2,500,000
(as amended, modified and supplemented from time to time, the "Preferred
Stock").

     3. The Company hereby warrants and covenants to Laurus that: (a) it is a
corporation validly existing, in good standing and formed under the laws of the
Commonwealth of Massachusetts and it will provide Laurus thirty days prior
written notice of any change in its state of formation; (b) it is the lawful
owner of the Collateral, and has the sole right to grant a security interest
therein and will defend the Collateral against all claims and demands of all
persons and entities; (c) it will keep the Collateral free and clear of all
attachments, levies, taxes, liens, security interests and encumbrances of every
kind and nature; (d) it will not without Laurus' prior written consent, sell,
exchange or otherwise dispose of the Collateral or any of the Company's rights
therein or permit any lien or security interest to attach to same, except that
created by this Agreement or sales of inventory or the disposition of obsolete
or worn out equipment in the ordinary course of business; (e) it will allow
Laurus and/or Laurus' representatives free access to and the right of inspection
of the Company's premises where the books and records relating to the Collateral
are located; and (f) it hereby indemnifies and saves Laurus harmless from all
loss, costs, damage, liability and/or expense, including reasonable

<PAGE>
attorneys' fees, that Laurus may sustain or incur to enforce payment,
performance or fulfillment of any of the Obligations or in the enforcement of
this Agreement or in the prosecution or defense of any action or proceeding
either against Laurus or the Company concerning any matter growing out of or in
connection with this Agreement and/or any of the Obligations and/or any of the
Collateral.

     4. Laurus agrees to terminate the security interest in the Collateral upon
the Company tendering the final payment in satisfaction of the Obligations.
Laurus agrees to join with the Company in executing termination statements and
other instruments pursuant to the Code in form satisfactory to the Company and
in executing such other documents or instruments as may be required or deemed
necessary by the Company for purposes of terminating the security interest in
the Collateral.

     5. The Company shall be in default under this Agreement upon the happening
of any of the following events or conditions (each, a "Default"): (a) it shall
fail to pay when due or punctually perform any of the Obligations; (b) any
covenant, warranty, representation or statement made or furnished to Laurus by
the Company or on its behalf was false in any material respect when made or
furnished and such failure shall have a material adverse effect on the Company;
(c) it shall fail to comply with any term or provision set forth in this
Agreement and such failure (to the extent not covered by any other clause of
this Section 4) shall remain uncured for a period of two (2) business days after
the date on which Laurus notified the Company of such failure; and (d) a default
shall occur under the Preferred Stock.

     6. Upon the occurrence of any Default and at any time thereafter, Laurus
may declare all Obligations immediately due and payable and Laurus shall have
the remedies of a secured party provided in the Code, this Agreement and other
applicable law. Upon the occurrence of any Default and at any time thereafter,
Laurus will have the right to take possession of the Collateral and to maintain
such possession on our premises or to remove the Collateral or any part thereof
to such other premises as you may desire, including, without limitation, the
right to contact account debtors liable in respect of the Accounts for the
purpose of engaging in collection activities with respect thereto. Upon Laurus'
request, the Company shall assemble the Collateral and make it available to
Laurus at a place designated by Laurus. If any notification of intended
disposition of any Collateral is required by law, such notification, if mailed,
shall be deemed properly and reasonably given if mailed at least ten business
days before such disposition, postage prepaid, addressed to us either at our
address shown herein or at any address appearing on Laurus' records for the
Company. Any proceeds of any disposition of any of the Collateral shall be
applied by Laurus to the payment of all expenses in connection with the sale of
the Collateral, including reasonable attorneys' fees and other legal expenses
and disbursements and the reasonable expense of retaking, holding, preparing for
sale, selling, and the like, and any balance of such proceeds may be applied by
Laurus toward the payment of the Obligations in such order of application as
Laurus may elect, and the Company shall be liable for any deficiency.

     7. If the Company defaults in the performance or fulfillment of any of the
terms, conditions, promises, covenants, provisions or warranties on our part to
be performed or fulfilled under or pursuant to this Agreement, Laurus may, at
its sole option without waiving its right to enforce this Agreement according to
its terms, immediately or at any time thereafter and without

                                      -2-
<PAGE>
notice to the Company, perform or fulfill the same or cause the performance or
fulfillment of the same for the Company's account and at its sole cost and
expense, and the cost and expense thereof (including reasonable attorneys' fees)
shall be added to the Obligations and shall be payable on demand with interest
thereon at the highest rate permitted by law.

     8. The Company appoints Laurus, any of its officers, employees or any other
person or entity whom Laurus may designate as the Company's attorney, with power
to execute such documents in its behalf and to supply any omitted information
and correct patent errors in any documents executed by the Company or on its
behalf; to file financing statements against the Company covering the
Collateral; to sign the Company's name on public records; and to do all other
things Laurus deem necessary to carry out this Agreement. The Company hereby
ratifies and approves all acts of the attorney and neither Laurus nor the
attorney will be liable for any acts of commission or omission, nor for any
error of judgment or mistake of fact or law. This power being coupled with an
interest, is irrevocable so long as any Obligations remains unpaid.

     9. No delay or failure on Laurus' part in exercising any right, privilege
or option hereunder shall operate as a waiver of such or of any other right,
privilege, remedy or option, and no waiver whatever shall be valid unless in
writing, signed by Laurus and then only to the extent therein set forth, and no
waiver by Laurus of any default shall operate as a waiver of any other default
or of the same default on a future occasion. Laurus' books and records
containing entries with respect to the Obligations shall be admissible in
evidence in any action or proceeding, shall be binding upon the Company for the
purpose of establishing the items therein set forth and shall constitute prima
facie proof thereof. Laurus shall have the right to enforce any one or more of
the remedies available to Laurus, successively, alternately or concurrently. The
Company agrees to join with Laurus in executing financing statements or other
instruments pursuant to the Code in form satisfactory to Laurus and in executing
such other documents or instruments as may be required or deemed necessary by
Laurus for purposes of affecting or continuing Laurus' security interest in the
Collateral.

     10. This Agreement shall be governed by and construed in accordance with
the laws of the State of New York and cannot be terminated orally. All of the
rights, remedies, options, privileges and elections given to Laurus hereunder
shall enure to the benefit of its successors and assigns. The term "Laurus" as
herein used shall include Laurus, any parent of Laurus, any of Laurus'
subsidiaries and any co-subsidiaries of its parent, whether now existing or
hereafter created or acquired, and all of the terms, conditions, promises,
covenants, provisions and warranties of this Agreement shall enure to the
benefit of and shall bind the representatives, successors and assigns of each of
the Company and them. Laurus and the Company hereby (a) waive any and all right
to trial by jury in litigation relating to this Agreement and the Company agrees
not to assert any counterclaim in such litigation, (b) submit to the
nonexclusive jurisdiction of the state and federal courts located in the State
of New York and (c) waive any objection Laurus or the Company may have as to the
bringing or maintaining of such action with any such court.

     11. All notices and other communications hereunder shall be deemed given
three (3) business days after delivered or deposited in the mails, first class
postage prepaid (provided, however, that notices given by telegram, telex or
telefax shall be deemed given when dispatched

                                      -3-
<PAGE>
by telegram, telex or telefax, as the case may be) and if to (a) the Company
addressed as set forth beneath the Company's name on the signature page unless
the Company shall give notice in writing of a different address or telefax
number in the manner provided herein, with a copy to Foley Hoag LLP 155 Seaport
Boulevard, Boston, MA 02210, Attention: David A. Broadwin, Esq. and (b) Laurus,
at the address set forth for Laurus on the last page of this Agreement unless
Laurus shall give the Company notice in writing of a different address.

     12. No amendment, modification, termination, or waiver of any provision of
this Agreement shall be effective unless the same shall be in writing and signed
by Laurus, and then such waiver or consent shall be effective only in the
specific instance and for the specific purpose for which given.

     13. No course of dealing between Laurus and the Company, nor any failure or
delay on Laurus' part in exercising any right, power, or remedy under this
Agreement shall operate as a waiver thereof; nor shall any single or partial
exercise of any such right, power, or remedy preclude any other or further
exercise thereof or the exercise of any other right, power, or remedy under this
Agreement. The rights and remedies provided in this Agreement and the Preferred
Stock are cumulative, and are not exclusive of any other rights, powers,
privileges, or remedies, now or hereafter existing, at law or in equity or
otherwise. The Company hereby waives in favor of Laurus all suretyship defenses
and waives notice of (a) acceptance hereof and of all notices and demands of any
kind to which the Company may be entitled and (b) presentment to or demand of
payment from anyone whomsoever liable upon the Accounts or the Obligations,
protest, notices of presentment, non-payment or protest and notice of any sale
of the Collateral or any default of any sort. The Company further waives all of
the Company's rights of subrogation, reimbursement, indemnity, exoneration,
contribution or any other claim which any of the Company or Laurus may now or
hereafter have against any party liable for the Obligations.

     14. Any provision of this Agreement which is prohibited or unenforceable in
any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
such prohibition or unenforceability without invalidating the remaining
provisions of this Agreement or affecting the validity or enforceability of such
provision in any other jurisdiction. In no event shall any payments hereunder
(if deemed interest under applicable law or regulation) exceed the maximum rate
permitted under applicable law or regulation. If any provision of this Agreement
is in contravention of any such law or regulation, then such provision shall be
deemed amended to provide for interest at said maximum rate and any excess
amount shall be applied to the Obligations in such order as Laurus shall elect.

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<PAGE>
                                IMPLANT SCIENCES CORPORATION

                                By: /s/ Anthony J. Armini
                                   ---------------------------
                                   Name: Anthony J. Armini
                                   Title: President
                                Address: 107 Audubon Road, #5
                                         Wakefield, Massachusetts 01880

                                LAURUS MASTER FUND, LTD.

                                By: /s/ David Grin
                                   ---------------------------
                                Name: David Grin
                                Title: Director

                                Address:  c/o Ironshore Corporate Services, Ltd.
                                P.O. Box 1234 G.T.
                                Queensgate House
                                South Church Street
                                Grand Cayman, Cayman Islands

                      [Security Agreement Signature Page]

                                      -5-
<PAGE>EXHIBIT 10.71

THIS  WARRANT  AND  THE COMMON STOCK ISSUABLE UPON EXERCISE OF THIS WARRANT HAVE
NOT  BEEN  REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED. THIS WARRANT
AND  THE  COMMON  STOCK  ISSUABLE UPON EXERCISE OF THIS WARRANT MAY NOT BE SOLD,
OFFERED  FOR  SALE,  PLEDGED  OR  HYPOTHECATED  IN  THE  ABSENCE OF AN EFFECTIVE
REGISTRATION  STATEMENT  AS  TO  THIS  WARRANT  UNDER  SAID ACT OR AN OPINION OF
COUNSEL  REASONABLY  SATISFACTORY  TO  IMPLANT  SCIENCES  CORPORATION  THAT SUCH
REGISTRATION  IS  NOT  REQUIRED.

                              Right to Purchase 55,000 shares of Common Stock of
                              Implant Sciences Corporation (subject to
                              adjustment as provided herein)

                          COMMON STOCK PURCHASE WARRANT

No. 2002-1                                         Issue Date:  October 7, 2002

     IMPLANT SCIENCES CORPORATION, a corporation organized under the laws of the
State of Massachusetts (the "COMPANY"), hereby certifies that, for value
received, LAURUS MASTER FUND, LTD., or its assigns (the "HOLDER"), is entitled,
subject to the terms set forth below, to purchase from the Company from and
after the Issue Date of this Warrant and at any time or from time to time before
5:00 p.m., New York time, through five (5) years after such date (the
"EXPIRATION DATE"), up to 55,000 fully paid and nonassessable shares of Common
Stock (as hereinafter defined), $0.10 par value per share, of the Company, at
the Purchase Price (as defined below). The number and character of such shares
of Common Stock and the Purchase Price are subject to adjustment as provided
herein.

     As used herein the following terms, unless the context otherwise requires,
have the following respective meanings:

     (a)     The term "Company" shall include Implant Sciences Corporation and
any corporation which shall succeed or assume the obligations of Implant
Sciences Corporation hereunder.

     (b)     The term "Common Stock" includes (a) the Company's Common Stock,
$.10 par value, as authorized on the date of the Securities Purchase Agreement
of even date herewith between the Company and the Holder (the "SECURITIES
PURCHASE AGREEMENT") and (b) any other securities into which or for which any of
the securities described in (a) or (b) may be converted or exchanged pursuant to
a plan of recapitalization, reorganization, merger, sale of assets or otherwise.

     (c)     The term "Other Securities" refers to any stock (other than Common
Stock) and other securities of the Company or any other person (corporate or
otherwise) which the Holder at any time shall be entitled to receive, or shall
have received, on the exercise of the Warrant, in lieu of or in addition to
Common Stock, or which at any time shall be issuable or shall have been issued
in exchange for or in replacement of Common Stock or Other Securities pursuant
to Section 4 or otherwise.

          (ii)     The term "Purchase Price" shall be $6.23.

     1.   Exercise of Warrant.
          -------------------

          1.1.     Number of Shares Issuable upon Exercise.  From and after the
                   ---------------------------------------
date hereof through and including the Expiration Date, the Holder hereof shall
be entitled to receive, upon exercise of this Warrant in whole in accordance
with the terms of subsection 1.2 or upon exercise of this Warrant in part in
accordance with subsection 1.3, shares of Common Stock of the Company, subject
to adjustment pursuant

                                        1
<PAGE>
to Section 4.

          1.2.     Full Exercise.  This Warrant may be exercised in full by the
                   -------------
Holder hereof by delivery of an original or fax copy of the form of subscription
attached as Exhibit A hereto (the "SUBSCRIPTION FORM") duly executed by such
Holder, to the Company at its principal office or at the office of its warrant
agent (as provided hereinafter), accompanied by payment, in cash, wire transfer,
or by certified or official bank check payable to the order of the Company, in
the amount obtained by multiplying the number of shares of Common Stock for
which this Warrant is then exercisable by the Purchase Price (as hereinafter
defined) then in effect.

          1.3.     Partial Exercise.  This Warrant may be exercised in part (but
                   ----------------
not for a fractional share) by surrender of this Warrant in the manner and at
the place provided in subsection 1.2 except that the amount payable by the
Holder on such partial exercise shall be the amount obtained by multiplying (a)
the number of shares of Common Stock designated by the Holder in the
Subscription Form by (b) the Purchase Price then in effect.  On any such partial
exercise, the Company, at its expense, will forthwith issue and deliver to or
upon the order of the Holder hereof a new Warrant of like tenor, in the name of
the Holder hereof or as such Holder (upon payment by such Holder of any
applicable transfer taxes) may request, the number of shares of Common Stock for
which such Warrant may still be exercised.

          1.4.     Fair Market Value. Fair Market Value of a share of Common
                   -----------------
Stock as of a particular date (the "DETERMINATION DATE") shall mean the Fair
Market Value of a share of the Common Stock. Fair Market Value of a share of
Common Stock as of a Determination Date shall mean:

               (a)     If the Common Stock is traded on an exchange or is quoted
on the National Association of Securities Dealers, Inc. Automated Quotation
("NASDAQ") National Market or the NASDAQ SmallCap Market, then the closing or
last sale price, respectively, reported for the last business day immediately
preceding the Determination Date.

               (b)     If the Common Stock is not traded on an exchange or on
the NASDAQ National Market or the NASDAQ SmallCap Market but is traded on the
NASD OTC Bulletin Board, then the mean of the closing bid and asked prices
reported for the last business day immediately preceding the Determination Date.

               (c)     Except as provided in clause (d) below, if the Common
Stock is not publicly traded, then as the Holder and the Company agree or in the
absence of agreement by arbitration in accordance with the rules then standing
of the American Arbitration Association, before a single arbitrator to be chosen
from a panel of persons qualified by education and training to pass on the
matter to be decided.

               (d)     If the Determination Date is the date of a liquidation,
dissolution or winding up, or any event deemed to be a liquidation, dissolution
or winding up pursuant to the Company's charter, then all amounts to be payable
per share to holders of the Common Stock pursuant to the charter in the event of
such liquidation, dissolution or winding up, plus all other amounts to be
payable per share in respect of the Common Stock in liquidation under the
charter, assuming for the purposes of this clause (d) that all of the shares of
Common Stock then issuable upon exercise of the Warrant are outstanding at the
Determination Date.

          1.5.     Company Acknowledgment. The Company will, at the time of the
                   ----------------------
exercise of the Warrant, upon the request of the Holder hereof acknowledge in
writing its continuing obligation to afford to such Holder any rights to which
such Holder shall continue to be entitled after such exercise in

                                        2
<PAGE>
accordance with the provisions of this Warrant. If the Holder shall fail to make
any such request, such failure shall not affect the continuing obligation of the
Company to afford to such Holder any such rights.

          1.6.     Trustee for Warrant Holder. In the event that a bank or trust
                   --------------------------
company shall have been appointed as trustee for the Holder pursuant to
Subsection 3.2, such bank or trust company shall have all the powers and duties
of a warrant agent (as hereinafter described) and shall accept, in its own name
for the account of the Company or such successor person as may be entitled
thereto, all amounts otherwise payable to the Company or such successor, as the
case may be, on exercise of this Warrant pursuant to this Section 1.

     2.1     Delivery of Stock Certificates, etc. on Exercise. The Company
             ------------------------------------------------
agrees that the shares of Common Stock purchased upon exercise of this Warrant
shall be deemed to be issued to the Holder hereof as the record owner of such
shares as of the close of business on the date on which this Warrant shall have
been surrendered and payment made for such shares as aforesaid. As soon as
practicable after the exercise of this Warrant in full or in part, and in any
event within 7 business days thereafter, the Company at its expense (including
the payment by it of any applicable issue taxes) will cause to be issued in the
name of and delivered to the Holder hereof, or as such Holder (upon payment by
such Holder of any applicable transfer taxes) may direct in compliance with
applicable Securities Laws, a certificate or certificates for the number of duly
and validly issued, fully paid and nonassessable shares of Common Stock (or
Other Securities) to which such Holder shall be entitled on such exercise, plus,
in lieu of any fractional share to which such Holder would otherwise be
entitled, cash equal to such fraction multiplied by the then Fair Market Value
of one full share, together with any other stock or other securities and
property (including cash, where applicable) to which such Holder is entitled
upon such exercise pursuant to Section 1 or otherwise.

     2.2.     Cashless Exercise.
              ------------------

          (a)     Payment may be made either in (i) cash or by certified or
official bank check payable to the order of the Company equal to the applicable
aggregate Purchase Price, (ii) by delivery of the Warrant, Common Stock and/or
Common Stock receivable upon exercise of the Warrant in accordance with Section
(b) below, or (iii) by a combination of any of the foregoing methods, for the
number of shares of Common Stock specified in such form (as such exercise number
shall be adjusted to reflect any adjustment in the total number of shares of
Common Stock issuable to the Holder per the terms of this Warrant) and the
Holder shall thereupon be entitled to receive the number of duly authorized,
validly issued, fully-paid and non-assessable shares of Common Stock (or Other
Securities) determined as provided herein.

          (b)     Notwithstanding any provisions herein to the contrary, if the
Fair Market Value of one share of Common Stock is greater than the Purchase
Price (at the date of calculation as set forth below), in lieu of exercising
this Warrant for cash, the Holder may elect to receive shares equal to the value
(as determined below) of this Warrant (or the portion thereof being cancelled)
by surrender of this Warrant at the principal office of the Company together
with the properly endorsed Subscription Form in which event the Company shall
issue to the Holder a number of shares of Common Stock computed using the
following formula:

                                        3
<PAGE>
          X=Y (A-B)
               ---
                A
          --------

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

          Y=   the number of shares of Common Stock purchasable under the
               Warrant or, if only a portion of the Warrant is being exercised,
               the portion of the Warrant being exercised (at the date of such
               calculation)

          A=   the Fair Market Value of one share of the Company's Common Stock
               (at the date of such calculation)

          B=   Purchase Price (as adjusted to the date of such calculation)

     3.     Adjustment for Reorganization, Consolidation, Merger, etc.
            ---------------------------------------------------------

          3.1.     Reorganization, Consolidation, Merger, etc. In case at any
                   ------------------------------------------
time or from time to time, the Company shall (a) effect a reorganization, (b)
consolidate with or merge into any other person, or (c) transfer all or
substantially all of its properties or assets to any other person under any plan
or arrangement contemplating the dissolution of the Company, then, in each such
case, as a condition to the consummation of such a transaction, proper and
adequate provision shall be made by the Company whereby the Holder, on the
exercise hereof as provided in Section 1 at any time after the consummation of
such reorganization, consolidation or merger or the effective date of such
dissolution, as the case may be, shall receive, in lieu of the Common Stock (or
Other Securities) issuable on such exercise prior to such consummation or such
effective date, the stock and other securities and property (including cash) to
which such Holder would have been entitled upon such consummation or in
connection with such dissolution, as the case may be, if such Holder had so
exercised this Warrant, immediately prior thereto, all subject to further
adjustment thereafter as provided in Section 4.

          3.2.     Continuation of Terms. Upon any reorganization,
                   ---------------------
consolidation, merger or transfer (and any dissolution following any transfer)
referred to in this Section 3, this Warrant shall continue in full force and
effect and the terms hereof shall be applicable to the shares of stock and other
securities and property receivable on the exercise of this Warrant after the
consummation of such reorganization, consolidation or merger or the effective
date of dissolution following any such transfer, as the case may be, and shall
be binding upon the issuer of any such stock or other securities, including, in
the case of any such transfer, the person acquiring all or substantially all of
the properties or assets of the Company, whether or not such person shall have
expressly assumed the terms of this Warrant as provided in Section 4.

     4.     Extraordinary Events Regarding Common Stock. In the event that the
            -------------------------------------------
Company shall (a) issue additional shares of the Common Stock as a dividend or
other distribution on outstanding Common Stock, (b) subdivide its outstanding
shares of Common Stock, or (c) combine its outstanding shares of the Common
Stock into a smaller number of shares of the Common Stock, then, in each such
event, the Purchase Price shall, simultaneously with the happening of such
event, be adjusted by multiplying the then Purchase Price by a fraction, the
numerator of which shall be the number of shares of Common Stock outstanding
immediately prior to such event and the denominator of which shall be the number
of shares of Common Stock outstanding immediately after such event, and the
product so obtained shall thereafter be the Purchase Price then in effect. The
Purchase Price, as so adjusted, shall be readjusted in the same manner upon the
happening of any successive event or events described herein in this Section 4.

                                        4
<PAGE>
The number of shares of Common Stock that the Holder shall thereafter, on the
exercise hereof as provided in Section 1, be entitled to receive shall be
increased to a number determined by multiplying the number of shares of Common
Stock that would otherwise (but for the provisions of this Section 4) be
issuable on such exercise by a fraction of which (a) the numerator is the
Purchase Price that would otherwise (but for the provisions of this Section 4)
be in effect, and (b) the denominator is the Purchase Price in effect on the
date of such exercise.

     5.     Certificate as to Adjustments. In each case of any adjustment or
            -----------------------------
readjustment in the shares of Common Stock (or Other Securities) issuable on the
exercise of the Warrant, the Company at its expense will promptly cause its
Chief Financial Officer or other appropriate designee to compute such adjustment
or readjustment in accordance with the terms of the Warrant and prepare a
certificate setting forth such adjustment or readjustment and showing in detail
the facts upon which such adjustment or readjustment is based, including a
statement of (a) the consideration received or receivable by the Company for any
additional shares of Common Stock (or Other Securities) issued or sold or deemed
to have been issued or sold, (b) the number of shares of Common Stock (or Other
Securities) outstanding or deemed to be outstanding, and (c) the Purchase Price
and the number of shares of Common Stock to be received upon exercise of this
Warrant, in effect immediately prior to such adjustment or readjustment and as
adjusted or readjusted as provided in this Warrant. The Company will forthwith
mail a copy of each such certificate to the Holder and any Warrant agent of the
Company (appointed pursuant to Section 11 hereof).

     6.     Reservation of Stock, etc. Issuable on Exercise of Warrant;
            -----------------------------------------------------------
Financial Statements. The Company will at all times reserve and keep available,
--------------------
solely for issuance and delivery on the exercise of the Warrant, all shares of
Common Stock (or Other Securities) from time to time issuable on the exercise of
the Warrant.  This Warrant entitles the Holder hereof to receive copies of all
financial and other information distributed or required to be distributed to the
holders of the Common Stock.

     7.     Assignment; Exchange of Warrant. Subject to compliance with
            -------------------------------
applicable Securities laws, this Warrant, and the rights evidenced hereby, may
be transferred by any registered Holder hereof (a "TRANSFEROR") with respect to
any or all of the shares of Common Stock. On the surrender for exchange of this
Warrant, with the Transferor's endorsement in the form of Exhibit B attached
hereto (the "TRANSFEROR ENDORSEMENT FORM") and together with evidence reasonably
satisfactory to the Company demonstrating compliance with applicable Securities
Laws, the Company at its expense but with payment by the Transferor of any
applicable transfer taxes) will issue and deliver to or on the order of the
Transferor thereof a new Warrant of like tenor, in the name of the Transferor
and/or the transferee(s) specified in such Transferor Endorsement Form (each a
"TRANSFEREE"), calling in the aggregate on the face or faces thereof for the
number of shares of Common Stock called for on the face or faces of the Warrant
so surrendered by the Transferor.

     8.     No Rights as Shareholders.  This Warrant does not entitle the Holder
            -------------------------
hereof to any voting rights or other rights as a shareholder of the Company
prior to exercise hereof.

     9.     Transferability; Compliance with Securities Laws.
            ------------------------------------------------

          a.     The Holder is experienced in evaluating companies such as the
     Company, is able to fend for itself in transactions such as the one
     contemplated by this Warrant, has such knowledge and experience in
     financial and business matters that the Holder is capable of evaluating the
     merits and risks of an investment in the Company, and has the ability to
     bear the economic risks of the investment.

                                        5
<PAGE>
          b.     The Holder is acquiring this Warrant and upon exercise the
     shares of Common Stock for investment for such Holder's own account and not
     with the view to, or for resale in connection with, any distribution
     thereof. The Holder understands that this Warrant (and the Common Stock
     issuable upon exercise hereof) have not been registered under the
     Securities Act of 1933, as amended (the "Securities Act"), by reason of a
     specific exemption from the registration provisions of the Securities Act
     which depends upon, among other things, the bona fide nature of the
     investment intent as expressed herein. The Holder does not have any
     contract, undertaking, agreement or arrangement with any person to sell,
     transfer or grant participation to any third person with respect to the
     Warrant (or any Common Stock issuable upon exercise hereof). The Holder
     understands and acknowledges that the offering of the Warrant and the
     Common Stock issuable upon exercise of this Warrant will not be registered
     under the Securities Act on the ground that the sale provided for in this
     Warrant and the issuance of securities hereunder is exempt from the
     registration requirements of the Securities Act.

          c.     The Holder acknowledges that the Warrant (and the Common Stock
     issuable upon exercise of this Warrant) must be held indefinitely unless
     subsequently registered under the Securities Act or an exemption from such
     registration is available. The Holder is aware of Rule 144 promulgated
     under the Securities Act which permits limited resale of securities
     purchased in a private placement subject to the satisfaction of certain
     conditions. In the absence of an effective registration statement covering
     the securities in question, the Holder may sell, transfer, or otherwise
     dispose of the Warrant (and any Common Stock issued on exercise hereof)
     only in a manner consistent with the terms hereof and the Holder's
     representations and warranties herein. In connection therewith, the Holder
     acknowledges that the Company will make a notation on its stock books
     regarding the restrictions on transfer set forth in this Section 9 and will
     transfer securities on the books of the Company only to the extent not
     inconsistent therewith.

          d.     The Holder has received and reviewed information about the
     Company and has had an opportunity to discuss the Company's business,
     management and financial affairs with its management and to review the
     Company's facilities. The Holder understands that such discussions, as well
     as any written information issued by the Company, were intended to describe
     the aspects of the Company's business and prospects which the Company
     believes to be material, but were not necessarily a thorough or exhaustive
     description.

          e.     The Holder acknowledges that he is an "accredited investor" as
     defined in Rule 501 of the Regulation D as promulgated by the Securities
     and Exchange Commission under the Securities Act and shall submit to the
     Company such further assurances of such status as may be reasonably
     requested by the Company. For state securities law purposes, the Holder is
     a resident of the Cayman Islands.

          f.     This Warrant may not be transferred or assigned in whole or in
     part without compliance with all applicable federal and state securities
     laws by the transferor and transferee (including the delivery of investment
     representation letters and legal opinions reasonably satisfactory to the
     Company, if requested by the Company). Subject to such restrictions, prior
     to the Expiration Time, this Warrant and all rights hereunder are
     transferable by the Holder hereof, in whole or in part, at the office or
     agency of the Company referred to in Section 1 hereof. Any such transfer
     shall be made in person or by the Holder's duly authorized attorney, upon
     surrender of this Warrant together with the Assignment Form attached hereto
     properly endorsed.

          g.     This Warrant may not be exercised except by an "accredited
     investor" as defined in Rule 501(a) under the Securities Act of 1933, as
     amended, who makes the representations and

                                        6
<PAGE>
     warranties to the Company as set forth on the notice of exercise attached
     hereto. Each certificate representing the Common Stock or other securities
     issued in respect of the Common Stock upon any stock split, stock dividend,
     recapitalization, merger, consolidation or similar event, shall be stamped
     or otherwise imprinted with a legend substantially in the following form (
     in addition to any legend required under applicable securities laws):

     THE  SECURITIES  REPRESENTED  BY  THIS  CERTIFICATE  HAVE  NOT  BEEN
     REGISTERED  UNDER  THE  SECURITIES  ACT  OF  1933,  AS  AMENDED, OR IF
     APPLICABLE,  STATE  SECURITIES  LAWS.  THESE  SHARES  MAY NOT BE SOLD,
     OFFERED  FOR  SALE,  PLEDGED  OR  HYPOTHECATED  IN  THE  ABSENCE OF AN
     EFFECTIVE  REGISTRATION  STATEMENT  UNDER  SUCH  SECURITIES  ACT  AND
     APPLICABLE  STATE  LAWS  OR  COMPLIANCE  WITH  AN  APPLIABLE EXEMPTION
     THEREFROM,  SUCH  COMPLIANCE,  AT  THE  OPTION  OF  THE COMPANY, TO BE
     EVIDENCED  BY  AN  OPINION  OF  COUNSEL REASONABLY SATISFACTORY TO THE
     COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED

     10.     Replacement of Warrant. On receipt of evidence reasonably
             ----------------------
satisfactory to the Company of the loss, theft, destruction or mutilation of
this Warrant and, in the case of any such loss, theft or destruction of this
Warrant, on delivery of an indemnity agreement or security reasonably
satisfactory in form and amount to the Company or, in the case of any such
mutilation, on surrender and cancellation of this Warrant, the Company at its
expense will execute and deliver, in lieu thereof, a new Warrant of like tenor.

     11.     Registration Rights.  The Holder of this Warrant has been granted
             -------------------
certain registration rights by the Company.  These registration rights are set
forth in a Securities Purchase Agreement.

     12.     Maximum Exercise.   The Holder shall not be entitled to exercise
             ----------------
this Warrant on an exercise date, in connection with that number of shares of
Common Stock which would be in excess of the sum of (i) the number of shares of
Common Stock beneficially owned by the Holder and its affiliates on an exercise
date, and (ii) the number of shares of Common Stock issuable upon the exercise
of this Warrant with respect to which the determination of this proviso is being
made on an exercise date, which would result in beneficial ownership by the
Holder and its affiliates of more than 4.99% of the outstanding shares of Common
Stock of the Company on such date.  For the purposes of the proviso to the
immediately preceding sentence, beneficial ownership shall be determined in
accordance with Section 13(d) of the Securities Exchange Act of 1934, as
amended, and Regulation 13d-3 thereunder.  Subject to the foregoing, the Holder
shall not be limited to aggregate exercises which would result in the issuance
of more than 4.99%.  The restriction described in this paragraph may be revoked
upon 75 days prior notice from the Holder to the Company and is automatically
null and void upon an Event of Default (as defined in the Certificate of Vote of
Directors Establishing a Class or Series of Stock).

     13.     Warrant Agent.  The Company may, by written notice to the Holder,
             -------------
appoint an agent for the purpose of issuing Common Stock (or Other Securities)
on the exercise of this Warrant pursuant to Section 1, exchanging this Warrant
pursuant to Section 7, and replacing this Warrant pursuant to Section 8, or any
of the foregoing, and thereafter any such issuance, exchange or replacement, as
the case may be, shall be made at such office by such agent.

     14.     Transfer on the Company's Books.  Until this Warrant is transferred
             -------------------------------
on the books of the Company, the Company may treat the registered Holder hereof
as the absolute owner hereof for all purposes, notwithstanding any notice to the
contrary.

                                        7
<PAGE>
     15.     Notices, etc.  All notices and other communications from the
             ------------
Company to the Holder shall be mailed by first class registered or certified
mail, postage prepaid, at such address as may have been furnished to the Company
in writing by such Holder or, until any such Holder furnishes to the Company an
address, then to, and at the address of, the last Holder who has so furnished an
address to the Company.

     16.     Voluntary Adjustment by the Company.  The Company may at any time
             -----------------------------------
during the term of this Warrant reduce the then current Purchase Price to any
amount and for any period of time deemed appropriate by the Board of Directors
of the Company.

     17.     Miscellaneous. This Warrant and any term hereof may be changed,
             -------------
waived, discharged or terminated only by an instrument in writing signed by the
party against which enforcement of such change, waiver, discharge or termination
is sought. This Warrant shall be governed by and construed in accordance with
the laws of State of New York without regard to principles of conflicts of laws.
Any action brought concerning the transactions contemplated by this Warrant
shall be brought only in the state courts of New York or in the federal courts
located in the state of New York; provided, however that the Holder may choose
to waive this provision and bring an action outside the state of New York.  The
individuals executing this Warrant on behalf of the Company agree to submit to
the jurisdiction of such courts and waive trial by jury.  The prevailing party
shall be entitled to recover from the other party its reasonable attorney's fees
and costs.  In the event that any provision of this Warrant is invalid or
unenforceable under any applicable statute or rule of law, then such provision
shall be deemed inoperative to the extent that it may conflict therewith and
shall be deemed modified to conform with such statute or rule of law.  Any such
provision which may prove invalid or unenforceable under any law shall not
affect the validity or enforceability of any other provision of this Warrant.
The headings in this Warrant are for purposes of reference only, and shall not
limit or otherwise affect any of the terms hereof.  The invalidity or
unenforceability of any provision hereof shall in no way affect the validity or
enforceability of any other provision.  The Company acknowledges that legal
counsel participated in the preparation of this Warrant and, therefore,
stipulates that the rule of construction that ambiguities are to be resolved
against the drafting party shall not be applied in the interpretation of this
Warrant to favor any party against the other party.

                      [THIS SPACE INTENTIONALLY LEFT BLANK]

                                        8
<PAGE>
     IN WITNESS WHEREOF, the Company has executed this Warrant under seal as of
the date first written above.

                                    IMPLANT SCIENCES CORPORATION

                                    By:/s/ Anthony J. Armini
                                    Name: Anthony J. Armini
                                    Title: President

Witness:

/s/ Stephen N. Bunker

                                        9
<PAGE>
                                                                       Exhibit A
                              FORM OF SUBSCRIPTION
                   (To be signed only on exercise of Warrant)

TO:  Implant Sciences Corporation

The undersigned, pursuant to the provisions set forth in the attached Warrant
(No.____), hereby irrevocably elects to purchase (check applicable box):

___     ________ shares of the Common Stock covered by such Warrant; or

___     the maximum number of shares of Common Stock covered by such Warrant
pursuant to the cashless exercise procedure set forth in Section 2.

The undersigned herewith makes payment of the full purchase price for such
shares at the price per share provided for in such Warrant, which is
$___________.  Such payment takes the form of (check applicable box or boxes):

___     $__________ in lawful money of the United States; and/or

___     the cancellation of such portion of the attached Warrant as is
exercisable for a total of _______ shares of Common Stock (using a Fair Market
Value of $_______ per share for purposes of this calculation); and/or

___     the cancellation of such number of shares of Common Stock as is
necessary, in accordance with the formula set forth in Section 2, to exercise
this Warrant with respect to the maximum number of shares of Common Stock
purchaseable pursuant to the cashless exercise procedure set forth in Section 2.

The undersigned requests that the certificates for such shares be issued in the
name of, and delivered to                       whose address is
                          ---------------------
                                                                               .
-------------------------------------------------------------------------------

In exercising this Warrant, the undersigned hereby confirms and acknowledges
that the shares of Common Stock to be issued upon exercise hereof are being
acquired solely for the account of the undersigned and not as a nominee for any
other party, and for investment, and that the undersigned will not offer, sell
or otherwise dispose of any such shares of Common Stock except under the
circumstances that will not result in a violation of the Securities Act of 1933,
ad amended or any state securities laws.

Please issue a certificate or certificates representing said shares of Common
Stock in the name of the undersigned or in such other name as is specified
below:

                   ------------------------------------------
                                     (Name)

                   ------------------------------------------
                                    (Address)

The undersigned represents that (a) he, she or it is an "accredited investor"
within the meaning of Rule 501(a) under the Securities Act of 1933, as amended,

                                       10
<PAGE>
and hereby ratifies and confirms as of the date hereof those representations and
warranties made by the undersigned in the securities purchase agreement entered
into by the undersigned at the time of the undersigned's purchase of the Warrant
from the Company and (b) the aforesaid shares of Common Stock are being acquired
for the account of the undersigned for investment and not with a view to, or for
resale in connection with, the distribution thereof and that the undersigned has
no present intention of distributing or reselling such shares.

Dated:
      -------------------              -----------------------------------------
                                       (Signature must conform to name of Holder
                                        as specified on the face of the Warrant)

                                       -----------------------------------------
                                       (Address)

                                       11
<PAGE>
                                    Exhibit B

                         FORM OF TRANSFEROR ENDORSEMENT
                   (To be signed only on transfer of Warrant)

          For value received, the undersigned hereby sells, assigns, and
transfers unto the person(s) named below under the heading "Transferees" the
right represented by the within Warrant to purchase the percentage and number of
shares of Common Stock of Implant Sciences Corporation to which the within
Warrant relates specified under the headings "Percentage Transferred" and
"Number Transferred," respectively, opposite the name(s) of such person(s) and
appoints each such person Attorney to transfer its respective right on the books
of Implant Sciences Corporation with full power of substitution in the premises.

                                    Percentage                 Number
        Transferees                Transferred               Transferred
 ------------------------  ---------------------------  ----------------------

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

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

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

The undersigned also represents that, by assignment hereof, the Assignee
acknowledges that this Warrant and the shares of Common Stock to be issued upon
exercise hereof are being acquired for investment and that the Assignee will not
offer, sell or otherwise dispose of this Warrant or any shares of Common Stock
to be issued upon exercise hereof except under circumstances which will not
result in a violation of the Securities Act of 1933, as amended, or any state
securities laws.  Further, the Assignee shall, if requested by the Company,
confirm in writing, in a form satisfactory to the Company, that the shares of
Common Stock so purchased are being acquired for investment and not with a view
toward distribution or resale.

Dated:           , 200
      -----------     -              -------------------------------------------
                                    (Signature must conform to name of Holder as
                                     specified on the face of the Warrant)

Signed in the presence of:

------------------------------       -------------------------------------------
           (Name)                                      (address)

                                     -------------------------------------------
ACCEPTED AND AGREED:                                   (address)
[TRANSFEREE]

------------------------------
(Name)

                                       12
<PAGE>

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