Document:

EXHIBIT 10.4

     THIS CONVERTIBLE TERM NOTE HAS NOT BEEN REGISTERED UNDER ANY STATE
SECURITIES LAW OR THE SECURITIES ACT OF 1933, AS AMENDED ("FEDERAL ACT"). THIS
CONVERTIBLE TERM NOTE HAS BEEN ACQUIRED FOR INVESTMENT AND MAY NOT BE OFFERED
FOR SALE, HYPOTHECATED, SOLD, OR TRANSFERRED, NOR WILL ANY ASSIGNEE OR
TRANSFEREE HEREOF BE RECOGNIZED BY THE MAKER HEREOF AS HAVING ANY INTEREST IN
THIS CONVERTIBLE TERM NOTE, IN THE ABSENCE OF AN EFFECTIVE REGISTRATION
STATEMENT WITH RESPECT TO THIS CONVERTIBLE TERM NOTE UNDER ANY APPLICABLE STATE
LAW AND THE FEDERAL ACT OR ANY OPINION OF COUNSEL SATISFACTORY TO THE MAKER
HEREOF THAT SUCH REGISTRATION IS NOT REQUIRED.

     THIS CONVERTIBLE TERM NOTE IS SUBJECT TO THE TERMS AND CONDITIONS OF THAT
CERTAIN AMENDMENT AGREEMENT BETWEEN LIFESTREAM TECHNOLOGIES, INC. AND HOLDER
DATED AS OF NOVEMBER 12, 2004 (THE "AMENDMENT AGREEMENT"), AND HOLDER AGREES AND
UNDERSTANDS THAT IT SHALL BE BOUND BY THE PROVISIONS OF THE AMENDMENT AGREEMENT.

                          LIFESTREAM TECHNOLOGIES, INC.
                              CONVERTIBLE TERM NOTE

$500,000                                           ISSUE DATE: NOVEMBER 12, 2004

         1. PROMISE TO PAY

         FOR VALUE RECEIVED, the undersigned LIFESTREAM TECHNOLOGIES, INC., a
Nevada corporation (the "Company"), HEREBY PROMISES TO PAY RAB Special
Situations LP ("Purchaser"), on or before February 1, 2006, the principal amount
of Five Hundred Thousand Dollars ($500,000), without interest on such principal
amount, and the amount of any "Registration Delay Payments" (as defined in the
Registration Rights Agreement by and among the parties of even date herewith
(the "Registration Rights Agreement") which Purchaser elects not to receive in
cash and which shall be added to (and shall not be in lieu of) the amount of
principal payable hereunder. Subject to the terms and conditions of this Note
permitting principal payments to be made through the issuance of shares of the
Company's common stock, par value $.001 per share, and stock of any other class
or classes into which such common stock or any such class may be hereafter
changed or reclassified ("Common Stock"), and/or conversion of this Note at the
option of Purchaser, all principal (including any Registration Delay Payments
which Purchaser elects to add to the principal amount hereof) hereunder are
payable in lawful money of the United States of America to Purchaser in

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immediately available funds. Notwithstanding the foregoing, in the event that
the Second Advance does not occur by the Second Advance Closing Date (as such
terms are defined in the Amended and Restated Loan and Security Agreement dated
as of November 12, 2004 by and among the Company, Purchaser and Lifestream
Diagnostics, Inc.), the outstanding principal amount of this Note shall be
reduced by fifty percent (50%) and the Company shall issue a replacement Note to
the Purchaser in such amount.

         The term of this Convertible Term Note (the "Note" or this "Note")
shall commence on the date hereof (the "Issue Date") and shall extend until
February 1, 2006 (the "Term"), when the entire principal amount of this Note,
and any unpaid Registration Delay Payments, shall be due and payable.

         Subject at all times to the terms and conditions hereof, the Company
may prepay the Note at any time or times, in whole or in part, on not less than
30 days' prior written notice to Purchaser (the "Prepayment Notice"). Each
Prepayment Notice shall specify the principal amount of this Note and all other
outstanding Notes to be redeemed. Each prepayment of principal of this Note
shall be accompanied by the payment of all Registration Delay Payments accrued
and unpaid to the prepayment date on the principal amount to be prepaid.

         Subject at all times to the terms and conditions of this Note
including, without limitation, any limitations on beneficial ownership set forth
in Section 2.10 below, this Note (including any Registration Delay Payments
which Purchaser elects to add to the principal amount hereof), may, at the
option of the Company, be paid or prepaid through the issuance of registered
shares of the Company's Common Stock ("Payment Shares"). The number of Payment

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Shares to be issued shall be determined by dividing the amount of principal
(including any Registration Delay Payments which Purchaser elects to add to the
principal amount hereof) to be paid by an amount equal to 80% of the average of
the five (5) lowest closing bid prices for the Common Stock on the OTC Bulletin
Board, or such other exchange or medium on which the Common Stock is principally
traded (the "Principal Market") during the twenty (20) consecutive trading days
immediately preceding the last trading day of the Term or, in the case of
prepayment, the date the Prepayment Notice is delivered to Purchaser.

         2. CONVERSION OF NOTE

         Purchaser shall have conversion rights as follows (the "Conversion
Rights"):

         2.1. Right to Convert - Purchaser. Subject to and upon compliance with
the provisions of this Section 2, at any time after the Issue Date, at the
option of Purchaser, the Note, or any $1,000 multiple of the principal amount
thereof then outstanding (including any Registration Delay Payments which
Purchaser elects to add to the principal amount hereof), may be converted at the
outstanding principal amount hereof, or at such portion hereof, into fully paid
and non-assessable shares of registered Common Stock ("Conversion Shares") as
provided in Section 2.2.

         2.2. Conversion Rate. The number of Conversion Shares to be issued
shall initially be determined by dividing the principal amount of this Note to
be converted (including any Registration Delay Payments which Purchaser elects
to add to the principal amount hereof) by Five Cents ($.05) (the "Conversion
Rate" or, as the context may require, the "Conversion "Price"); provided,
however, that the Conversion Rate shall be subject to the adjustments described
in Section 2.5 (exclusive of Section 2.5(a)) below.

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         2.3. Mechanics of Conversion. Before Purchaser shall be entitled to
convert this Note into shares of Common Stock, Purchaser shall surrender the
Note to the Company at its offices at its address below (or at such other
address of which the Company shall have notified Purchaser in writing), and
shall give written notice to the Company at such offices that Purchaser elects
to convert the Note, or if less than the entire principal amount of the Note is
to be converted, the portion thereof to be converted. Such notice shall also
state the name or names (with address or addresses) in which the certificate or
certificates for shares of Common Stock issuable upon such conversion shall be
issued and shall contain such representations as may reasonably be required by
the Company to the effect that the shares to be received upon conversion are not
being acquired and will not be transferred in any way that might violate the
then applicable laws. As promptly as practicable after the receipt of such
notice and the surrender of the Note as aforesaid, the Company shall issue and
shall deliver to Purchaser at the address specified by Purchaser in the written
notice of conversion a certificate or certificates for the number of full shares
issuable upon the conversion of the Note (or portion thereof) in accordance with
the provisions of this Section 2 and cash as provided in Section 2.4 hereof.
Such conversion shall be deemed to have been effected at the close of business
on the date on which such notice shall have been received at the office of the
Company and the Note shall have been surrendered as aforesaid (the "Conversion
Date"), and at such time the rights of Purchaser as obligee shall cease as to
the portion of the Note which has been converted, and the person or persons in
whose name or names any certificate or certificates for shares of Common Stock
shall be issuable upon such conversion shall be deemed to have become the holder
or holders of record of the shares of Common Stock represented thereby. Upon
conversion of the Note in part only, the Company shall execute and deliver to or
on the order of Purchaser, at the expense of the Company, a new note in
principal amount equal to the unconverted portion of the Note so converted.

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         2.4. Fractional Shares. No fractional shares of Common Stock or scrip
representing fractional shares shall be issued upon conversion of the Note.
Instead of any fractional shares which would otherwise be issuable upon
conversion of the Note or specified portions thereof, the Company shall pay to
Purchaser a cash adjustment in respect of such fraction in an amount equal to
such fraction multiplied by the Conversion Price per share of Common Stock as of
the Conversion Date.

         2.5. Adjustment of Conversion Price. The Conversion Price shall be
subject to adjustment from time to time as follows:

                  (a) Upon the completion of any offering by the Company of
         shares of Common Stock or other securities completed while this Note
         remains outstanding, at a purchase price or conversion price that is
         less than the Conversion Price (each such offering, a "Subsequent
         Offering"), the Conversion Price shall be subject to adjustment whereby
         such adjusted Conversion Price shall be equal to the lesser of (i) the
         price per share of Common Stock or conversion price of securities that
         is the subject of such Subsequent Offering, or (ii) such other amount
         as may be agreed to in writing between the Company and Purchaser (each,
         a "Subsequent Offering Conversion Price"). Upon completion of any
         Subsequent Offering, Purchaser may elect to convert such outstanding
         principal amount of the Note (including any Registration Delay Payments
         which Purchaser elects to add to the principal amount thereof) at the
         applicable Subsequent Offering Conversion Price up to an amount of
         Common Stock not to exceed the limitations on beneficial ownership set

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         forth in Section 2.10 below. Notwithstanding the foregoing, Purchaser
         shall be entitled to convert the principal amount of this Note
         (including any Registration Delay Payments which Purchaser elects to
         add to the principal amount hereof) into Common Stock at the Subsequent
         Offering Conversion Price on one occasion per Subsequent Offering, and
         if Purchaser converts less than the entire principal amount of this
         Note (including any Registration Delay Payments which Purchaser elects
         to add to the principal amount hereof) at the Subsequent Offering
         Price, than any principal balance of this Note not so converted shall
         thereafter be convertible at the Conversion Price, subject to
         adjustment as hereafter provided in this Section 2.5.

                  (b) If the number of shares of Common Stock outstanding is
         increased by a stock dividend payable in shares of Common Stock or by a
         subdivision or split of shares of Common Stock, then the Conversion
         Price in effect immediately prior to such stock dividend, subdivision
         or split shall be proportionately decreased and the number of shares of
         Common Stock convertible hereunder shall be proportionately increased.

                  (c) If the number of shares of Common Stock outstanding is
         decreased by a combination of the outstanding shares of Common Stock,
         then the Conversion Price in effect immediately prior to such
         combination shall be proportionately increased and the number of shares
         of Common Stock convertible hereunder shall be proportionately
         decreased.

                  (d) If the Company shall declare a cash dividend upon its
         Common Stock payable otherwise than out of earnings or earned surplus
         or shall distribute to holders of the Common Stock shares of its
         capital stock other than Common Stock, stock or other securities of
         other persons, evidences of indebtedness issued by the Company or other
         persons, assets (excluding cash dividends and distributions) or options

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         or rights (excluding options to purchase and rights to subscribe for
         Common Stock or other securities of the Company convertible into or
         exchangeable for Common Stock), then, in each such case, the Conversion
         Price in effect immediately prior to such dividend or distribution
         shall be adjusted as follows. Immediately following the record date
         fixed for the determination of holders of Common Stock entitled to
         receive such dividend or distribution, the Conversion Price in effect
         thereafter shall be determined by multiplying the Conversion Price in
         effect immediately prior to such record date by a fraction of which the
         numerator shall be an amount equal to (i) the Current Market Price (as
         defined below) of one share of Common Stock less (ii) the fair market
         value (as determined by the Board of Directors of the Company, which
         determination shall be conclusive absent manifest error) of the stock,
         securities, evidences of indebtedness, assets, options or rights so
         distributed in respect of one share of Common Stock, and of which the
         denominator shall be the Current Market Price. The term "Current Market
         Price" shall mean the average of the daily closing prices on the
         Principal Market of one share of Common Stock for the thirty (30)
         consecutive trading days ending on the day before the day in question
         and such average will be adjusted for any stock dividend, split,
         combination or reclassification that took effect during such thirty
         (30) business day period.

                  (e) All calculations under this Section 2.5 shall be made to
         the nearest one-tenth (1/10) of a share.

                  (f) Whenever the Conversion Price shall be adjusted as
         provided in this Section 2.5, the Company shall prepare a statement
         showing the facts requiring such adjustment and the Conversion Price
         and the number of shares of Common Stock convertible hereunder that
         shall be in effect after such adjustment. The Company shall cause a
         copy of such statement to be sent to the Purchaser. Where appropriate,
         such copy may be given in advance and may be included as part of the
         notice required to be mailed under the provisions of Section 2.5(h)
         hereof.

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                  (g) Adjustments made pursuant to Sections 2.5(b), (c) and (d)
         shall be made on the date such dividend, subdivision, split,
         combination or distribution is made, and shall become effective at the
         opening of business on the business day next following the record date
         for the determination of shareholders entitled to such dividend,
         subdivision, split, combination or distribution.

                  (h) In the event the Company shall propose to take any action
         of the types described in Sections 2.5(b), (c), or (d) the Company
         shall forward, at the same time and in the same manner, to the
         Purchaser such notice, if any, that the Company shall give to the
         holders of capital stock of the Company. Failure to give such notice,
         or any defect therein, shall not affect the legality or validity of any
         such action.

                  (i) Whenever the provisions of this Section 2.5 shall require
         that an adjustment shall become effective immediately after the record
         date for an event and the Purchaser exercises its Conversion Rights
         after such record date and before the occurrence of such event, the
         Company may defer until the occurrence of such event issuing to the
         Purchaser the additional shares of Common Stock issuable upon such
         exercise by reason of the adjustment required by such event over and
         above the shares of Common Stock issuable upon such exercise before
         giving effect to such adjustment; provided, however, that the Company
         shall deliver to such Purchaser a due bill or other appropriate
         instrument evidencing such Purchaser's right to receive such additional
         shares upon the occurrence of the event requiring such adjustment. (j)
         The sale or other disposition of any Common Stock theretofore held in
         the treasury of the Company shall be deemed to be an issuance thereof.

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         2.6. No Impairment. The Company will not, by amendment of its
Certificate of Incorporation or Bylaws or through any reorganization, transfer
of assets, consolidation, merger, dissolution, issue or sale of securities or
any other voluntary action, avoid or seek to avoid the observance or performance
of any of the terms to be observed or performed hereunder by the Company, but
will at all time in good faith assist in the carrying out of all the provisions
of this Section 2 and in the taking of all such action as may be necessary or
appropriate in order to protect the Conversion Rights of Purchaser of the Note
against impairment.

         2.7. Certificate as to Adjustments. Upon the occurrence of each
adjustment or readjustment of the Conversion Rate pursuant to this Section 2,
the Company at its expense shall promptly compute such adjustment or
readjustment in accordance with the terms hereof, and in any event, prepare and
furnish to Purchaser a certificate setting forth such adjustment or readjustment
and showing in detail the facts upon which such adjustment or readjustment is
based. The Company shall, upon the written request at any time of Purchaser,
furnish or cause to be furnished to Purchaser a like certificate setting forth
(a) such adjustments and readjustments, (b) the Conversion Rate at that time in
effect, and (c) the number of shares of Common Stock and the amount, if any, of
other property which at that time would be received upon the conversion of the
Note.

         2.8. Notices of Record Date. In the event of any taking by the Company
of a record of the holders of any class of securities other than this Note for
the purpose of determining the holders thereof who are entitled to receive any
dividend or other distribution, any common stock equivalents or any right to

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subscribe for, purchase or otherwise acquire any shares of stock of any class or
any other securities or property, or to receive any other right, other than a
right to vote at a meeting of shareholders, the Company shall mail to Purchaser
at least ten (10) days prior to the date specified therein, a notice specifying
the date on which any such record is to be taken for the purpose of such
dividend, distribution or rights, and the amount and character of such dividend,
distribution or rights.

         2.9. Reservation of Stock Issuable Upon Conversion; Registration Rights
Agreement. The Company shall at all times reserve and keep available out of its
authorized but unissued shares of Common Stock solely for the purpose of
effecting the conversion of this Note such number of its shares of Common Stock
as shall from time to time be sufficient to effect the conversion of this Note,
and if at any time the number of authorized but unissued shares of Common Stock
shall not be sufficient to effect such conversion, the Company will take such
corporate action as may, in the opinion of its counsel, be necessary to increase
its authorized but unissued shares of Common Stock to such number of shares as
shall be sufficient for such purpose. The parties expressly acknowledge and
agree that the Conversion Shares and the Payment Shares are subject to
registration pursuant to the Registration Rights Agreement.

         2.10. Conversion of Note and Effect on Beneficial Ownership.
Notwithstanding anything contained herein to the contrary, no payment or
conversion of this Note shall take place to the extent that after giving effect
to such payment or conversion, as the case may be, the beneficial owner of such
shares (together with such person's affiliates) would have acquired, through
payment, conversion of Notes or otherwise, beneficial ownership of a number of
shares of Common Stock during the 60-day period ending on and including the date
of such conversion (the "60-Day Period"), that, when added to the number of
shares of Common Stock beneficially owned by such person (together with such

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person's affiliates) at the beginning of the 60-Day Period, exceeds 9.99% of the
number of shares of Common Stock outstanding immediately after giving effect to
such payment and conversion. For purposes of the foregoing sentence, the number
of shares of Common Stock beneficially owned by a person and its affiliates
shall include the number of shares of Common Stock issuable upon payment and
conversion of the Notes with respect to which the determination of such sentence
is being made, but shall exclude the number of shares of Common Stock which
would be issuable upon (A) payment or conversion of the remaining,
non-converted, unpaid Notes beneficially owned by such person or any of its
affiliates and (B) payment, exercise or conversion of the unpaid, unexercised or
unconverted portion of any other securities of the Company (including, without
limitation, any warrants) subject to a limitation on payment, conversion or
exercise analogous to the limitation contained herein beneficially owned by such
person or any of its affiliates. Except as set forth in the preceding sentence,
for purposes of this Section 2.10, beneficial ownership shall be calculated in
accordance with Section 13(d) of the Securities Exchange Act of 1934, as
amended. For purposes of this Section 2.10, in determining the number of
outstanding shares of Common Stock, a holder may rely on the number of
outstanding shares of Common Stock as reflected in (1) the Company's most recent
Form 10-Q, Form 10-K or other public filing with the SEC, as the case may be,
(2) a more recent public announcement by the Company, or (3) any other notice by
the Company or its transfer agent setting forth the number of shares of Common
Stock outstanding. Upon the written request of any holder, the Company shall
promptly, but in no event later than one (1) Business Day following the receipt
of such notice, confirm in writing to any such holder the number of shares of
Common Stock then outstanding. In any case, the number of outstanding shares of
Common Stock shall be determined after giving effect to the payment, conversion
or exercise of securities of the Company, including the payment and/or
conversion of the Note(s), by such holder or its affiliates since the date as of
which such number of outstanding shares of Common Stock was reported.

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         3. LIQUIDATION

         3.1. Liquidation. For purposes of this Section 3, a liquidation shall
be deemed to be: (a) an assignment by the Company of substantially all of its
assets for the benefit of creditors, or (b) any reorganization, composition,
arrangement, liquidation or other debtor relief pursuant to any federal or state
law or through the action of any trustee or receiver of substantially all of the
assets of the Company, or (c) the Company's sale of all or substantially all of
its assets or the acquisition of the Company by another entity by way of merger
or consolidation resulting in the exchange of the outstanding shares of the
Company for securities or consideration issued, or caused to be issued, by the
acquiring corporation or its parent or subsidiary (the transactions described in
this Section 3.1 herein defined as "Sale or Merger").

         3.2. Liquidation Rights. In the event of liquidation (as described in
Section 3.1), dissolution or winding up of the Company (a "Liquidation Event"),
Purchaser shall at its election, be entitled to receive in exchange for and in
redemption of the Note or any portion of the principal amount thereof then
outstanding, prior and in preference to any distribution of any of the assets or
surplus funds of the Company to the holders of the Common Stock or any preferred
class of stock of the Company by reason of their ownership thereof, an amount
equal to the outstanding principal amount or of such portion thereof (including
any Registration Delay Payments which Purchaser elects to add to the principal
amount hereof).

         3.3. Payments. All of the amounts to be paid to Purchaser under this
Section 3 shall be paid or set apart for payment before the consummation of a
Liquidation Event, or before the payment or setting apart for payment of any
amount for, or the distribution of any assets of the Company to the holders of

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the Common Stock or any class of preferred stock in connection with any
Liquidation Event. If the assets or surplus funds to be distributed to the
holders of all notes, including this Note, are insufficient to permit the
payment to such holders of their full preferential amount, the assets and
surplus funds legally available for distribution shall be distributed ratably
among the holders of the notes and this Note in proportion to the full
preferential amount each such holder is otherwise entitled to receive.

         3.4. Notice of Liquidation Event. If the Board of Directors of the
Company shall declare a liquidation event (as described in Section 3.1), the
Company shall mail notice thereof to the Purchaser hereof not more than ten (10)
days following such declaration by the Board of Directors.

         4. EVENTS OF DEFAULT AND REMEDIES

         4.1. Events of Default. The following shall constitute Events of
Default (for purposes of this Section 4, the term "Company" shall include
Lifestream Technologies, Inc. and any majority-owned subsidiary of Lifestream
Technologies, Inc.):

                  (a) default in the due and punctual payment of any installment
         of principal on the Note (including any Registration Delay Payments
         which Purchaser elects to add to the principal amount thereof), when
         and as such payment shall become due and payable, whether on a payment
         due date, at maturity or by acceleration or otherwise if such payment
         is not made within five (5) days of written notice given to the Company
         by Purchaser specifying such default; or

                  (b) any material representation or warranty of the Company in
         this Note that is untrue in any material respect as of the date made;
         or

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                  (c) default in the performance or observance of any covenant
         or agreement of the Company in this Note and the continuance of such
         default for a period of thirty (30) days after there has been given to
         the Company by Purchaser written notice specifying such default and
         requiring that it be remedied; or

                  (d) actual acceleration of the maturity of indebtedness upon
         the occurrence of a default under any bond, note, debenture, lease or
         other evidence of indebtedness of the Company (other than the Note) or
         under any indenture or other instrument under which any such evidence
         of indebtedness has been issued or by which it is governed in an
         aggregate amount of at least $100,000.00, provided, however, that, (i)
         if such acceleration is rescinded, then the Event of Default hereunder
         by reason of such default shall be deemed likewise to have been
         thereupon cured or waived, or (ii) if such accelerated indebtedness in
         the aggregate does not exceed $100,000.00 or if such acceleration is
         being contested by the Company in good faith, then such acceleration
         shall not be deemed to be an Event of Default; or

                  (e) insolvency (as defined in the Uniform Commercial Code as
         in effect from time to time) of the Company; the making of an
         assignment for the benefit of creditors; the filing or acquiescence in
         the filing of a petition instituting any state or federal insolvency,
         bankruptcy, reorganization, arrangement, composition, or other debtor
         relief proceeding; the petition of or application to any tribunal for a
         receiver or trustee for itself or for any substantial part of any of
         its property; the commencement of any proceeding under any
         reorganization, arrangement, readjustment of debt, dissolution or
         liquidation law or statute of any federal or state jurisdiction,
         whether now or hereafter in effect, or the commencement against the
         Company of any such proceeding or the appointment of a receiver or any
         trustee for the Company or any part of the Company's property; or

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                  (f) the entry of any judgment against the Company or the
         attachment, seizure of, or levy against the Company with respect to a
         claim for any amount in excess of $200,000.00 that remains unpaid,
         unstayed, undischarged, unbonded, or undismissed for a period of thirty
         days; or

                  (g) the filing of record, at any time subsequent to the Issue
         Date, of any notice of lien, levy or assessment with respect to any or
         all of the Company's assets by the United States Government, or any
         department, agency or instrumentality thereof, or by any state, county,
         municipal or other governmental authority, or the automatic imposition
         of a lien, whether choate or otherwise, because of failure to pay any
         taxes or debt owing at any time hereafter to any one or more of such
         entities, upon any or all of the Company's assets, which lien is not
         paid on the payment date thereof unless such lien, levy or assessment
         is contested in good faith and for which adequate reserves have been
         maintained.

         4.2. Acceleration of Maturity, Rescission and Annulment.

                  (a) If an Event of Default occurs and is continuing then and
         in any such case Purchaser may declare the outstanding principal amount
         of the Note to be due and payable immediately, without advance notice
         to the Company, and, upon any such declaration, the outstanding
         principal amount of the Note (including any Registration Delay Payments
         which Purchaser elects to add to the principal amount hereof), together
         with all costs of collection, shall immediately become due and payable.

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                  (b) At any time after any declaration of acceleration has been
         made as provided in this Section 4.2, Purchaser may, by written notice
         to the Company, rescind and annul such declaration and its
         consequences. No such rescission shall affect any subsequent default or
         impair any right consequent thereon.

         4.3. Suits for Enforcement. In case any one or more Events of Default
shall have occurred and be continuing, Purchaser may proceed to protect and
enforce Purchaser's rights either by suit in equity or by action at law, or
both, whether for the specific performance of any covenant or agreement
contained herein or in aid of the exercise of any power granted herein or
proceed to enforce the payment of the Note or to enforce any other legal or
equitable right of Purchaser.

         4.4. Remedies Cumulative. No remedy herein conferred upon Purchaser is
intended to be exclusive of any other remedy and each and every such remedy
shall be cumulative and shall be in addition to every other remedy given
hereunder or now or hereafter existing at law or in equity or by statute or
otherwise.

         4.5. Remedies Not Waived. No course of dealing between the Company and
Purchaser or any delay in exercising any rights hereunder shall operate as a
waiver by Purchaser.

         5. NEGATIVE COVENANT

         The Company covenants and agrees with the Purchaser that it shall not,
and it shall cause its majority-owned subsidiaries to not, without the prior
written consent of the holder of this Note, which may be withheld in its sole
discretion, authorize, incur or suffer to exist any (a) Indebtedness with
repayment obligations senior to the Indebtedness evidenced by this Note or any
other obligation under the Amendment Agreement, or (b) Lien on any asset now
owned or hereafter acquired by the Company or its majority-owned subsidiaries,
except Liens in existence on the Issue Date and any Liens hereinafter granted
relating to the securities or assets of Secured Interactive Technologies, Inc.
For purposes of this Note, the terms "Indebtedness" and "Liens" shall have the
same meanings as set forth in the Amendment Agreement.

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         6. AMENDMENT AND WAIVER

         6.1. Procedure for Amendment and Waiver. Any term, covenant, agreement
or condition hereof may be amended by the Company and Purchaser or compliance
therewith may be waived (either generally or in a particular instance and either
retroactively or prospectively) by Purchaser; provided, however, that any such
amendment shall be effective only if made in writing and executed by both the
Company and Purchaser, and any such waiver shall be effective only if made in
writing and executed by Purchaser; and, further provided that no such waiver
shall extend to or affect any obligation which is not expressly so waived.

         7. MISCELLANEOUS

         7.1. Successors and Assigns and Bound by Covenants. All covenants,
stipulations, promises and agreements herein contained shall bind and inure to
the benefit of the Company and Purchaser and their respective permitted
successors and assigns.

         7.2. Severability. If any one or more of the provisions of this Note
shall be determined to be invalid, illegal or unenforceable in any respect for
any reason, the validity, legality and enforceability of any such provision in
every other respect and the remaining provisions hereof shall not in any way be
impaired.

         7.3. Headings. The headings in this Note are inserted for convenience
only and do not constitute a part of this Note.

         7.4. Governing Law. This Note shall be construed in accordance with and
governed by the laws of the State of New York.

                                       17
<PAGE>

         7.5. Loss, Theft, Destruction or Mutilation of Notes. Upon receipt of
evidence reasonably satisfactory to the Company of the loss, theft, destruction
or mutilation of the Note and, in the case of any such loss, theft or
destruction, upon receipt of any indemnity bond in such reasonable amount as the
Company may determine or, in the case of any such mutilation, upon surrender and
cancellation of the Note, the Company shall make and deliver, in lieu of such
lost, stolen, destroyed or mutilated Note, a new Note of like tenor and unpaid
principal amount and dated as of the date to which Registration Delay Payments,
if any, have been paid on the Note so lost, stolen, destroyed or mutilated.

         7.6. Survival of Covenants, Representations and Warranties. All
representations, warranties, covenants and agreements of the Company contained
in the Note shall survive the execution and delivery of the Note and shall
continue in full force and effect thereafter.

         7.7. Assignment. Subject to compliance with applicable securities laws,
Purchaser may assign or sell or otherwise convey the Note or any and all of the
rights and interests inuring to its benefit hereunder without the consent of the
Company. In the event that Purchaser wishes to assign the Note to more than one
person to hold same as tenants-in-common or any similar joint ownership, the
provisions of the Note shall be modified by agreement of the Company and
Purchaser to reflect such proposed assignment, including a modification of
Section 5 hereof to provide for amendment or waiver by the Company and the
holders of two-thirds (2/3) of the outstanding principal amount.

         7.8. Registration Delay Payment Rights Preserved. A Note delivered upon
transfer of or in exchange for or in lieu of this Note shall carry all the
rights to Registration Delay Payments that were carried by this Note, and each
such Note shall be so dated that neither gain nor loss in Registration Delay
Payments shall result from such transfer, exchange or substitution.

                                       18
<PAGE>

         7.9. Notices. Any notice or other document required or permitted to be
given or delivered to the Holder shall be delivered at, or sent by certified or
registered mail, postage prepaid, to the Holder's address as set forth in the
Company's records, or to such other address as shall have been furnished to the
Company in writing by the Holder, and a copy of any such notice shall be
provided to Holder's counsel as notified from time to time by Holder to the
Company. Any notice or other document required or permitted to be given or
delivered to the Company shall be delivered at, or sent by certified or
registered mail, postage prepaid, to, the address of the Company as set forth
following its signature below, or to such other address as shall have been
furnished to the Holder in writing by the Company. Any notice or other document
so addressed and mailed by registered or certified mail shall be deemed to be
given when so mailed. Any notice so addressed and otherwise delivered shall be
deemed to be given when actually received by the addressee.

         7.10. Entire Agreement. This Note, the Amendment Agreement and the
documents executed in furtherance thereof contains the entire understanding of
the parties with respect to the matters covered herein.

                                       19
<PAGE>

         IN WITNESS WHEREOF, the Company has caused this Note to be executed in
its corporate name, all as of the 12th day of November 2004.

[CORPORATE SEAL]                              LIFESTREAM TECHNOLOGIES, INC.
Attest:                                       By:
       -----------------------------             -------------------------------
Title:                                        Title:
      ------------------------------                ----------------------------
                                              510 Clearwater Loop
                                              Suite 101
                                              Post Falls, ID 83854

                                       20EXHIBIT 10.5

                          REGISTRATION RIGHTS AGREEMENT

         REGISTRATION RIGHTS AGREEMENT (this "AGREEMENT"), dated as of November
12, 2004, by and among Lifestream Technologies, Inc., a Nevada corporation, with
headquarters located at 510 West Clearwater Loop, Suite 101 Post Falls, Idaho
83854 (the "COMPANY"), and RAB Special Situations LP, a Delaware limited
partnership (the "BUYER").

         WHEREAS:

         A. Contemporaneously hereto, pursuant to the Amendment Agreement
between the Company and the Buyer dated as of the date hereof (the "AMENDMENT
AGREEMENT"), the Company, its wholly owned subsidiary, Lifestream Diagnostics,
Inc. (the "SUBSIDIARY") and the Buyer have agreed to enter into an Amended and
Restated Loan and Security Agreement (the "AMENDED LOAN AGREEMENT") whereby,
among other things, the Buyer will make certain financial accommodations
available to the Company and the Subsidiary subject to the terms and conditions
set forth therein.

         B. In connection with the entering into of the Amended Loan Agreement
pursuant to the Amendment Agreement, the Company has agreed to pay a commitment
fee to RAB in the amount of $500,000 (the "COMMITMENT Fee"), such Commitment Fee
being payable by the Company's issuance of its Convertible Term Note (the
"COMMITMENT NOTE").

         C. The Commitment Note is (i) payable, at the option of the Company, in
shares (the "PAYMENT Shares") of the Company's common stock, par value $.001 per
share and shares of any class or classes into which such common stock or any
such class may hereafter be changed or reclassified ("COMMON STOCK"); and (ii)
convertible, at the option of RAB, into shares (the "CONVERSION SHARES") of the
Company's Common Stock.

         D. To induce the Buyer to enter into the Amended Loan Agreement, the
Company has agreed to provide certain registration rights under the Securities
Act of 1933, as amended, and the rules and regulations thereunder, or any
similar successor statute (collectively, the "1933 ACT"), and applicable state
securities laws, for the Payment Shares and the Conversion Shares.

         NOW, THEREFORE, in consideration of the premises and the mutual
covenants contained herein and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the Company and the
Buyer hereby agree as follows:

1.       DEFINITIONS.

                  As used in this Agreement, the following terms shall have the
following meanings:

                  a. "INVESTOR" means the Buyer, any transferee or assignee
thereof to whom the Buyer assigns its rights under this Agreement and who agrees
to become bound by the provisions of this Agreement in accordance with Section 9
and any transferee or assignee thereof to whom a transferee or assignee assigns
its rights under this Agreement and who agrees to become bound by the provisions
of this Agreement in accordance with Section 9.

<PAGE>

                  b. "PERSON" means an individual, a limited liability company,
a partnership, a joint venture, a corporation, a trust, an unincorporated
organization and a governmental or any department or agency thereof.

                  c. "REGISTER," "REGISTERED," and "REGISTRATION" refer to a
registration effected by preparing and filing one or more Registration
Statements (as defined below) in compliance with the 1933 Act and pursuant to
Rule 415 under the 1933 Act or any successor rule providing for offering
securities on a continuous or delayed basis ("RULE 415"), and the declaration or
ordering of effectiveness of such Registration Statement(s) by the United States
Securities and Exchange Commission (the "SEC").

                  d. "REGISTRABLE SECURITIES" means (i) any Conversion Shares
issuable upon conversion of the Commitment Note; (ii) any Payment Shares
issuable upon payment or prepayment of all or any part of the outstanding
principal amount of the Commitment Note; (iii) any shares of capital stock
issued or issuable with respect to the Conversion Shares or the Payment Shares
as a result of any stock split, stock dividend, recapitalization, exchange or
similar event or otherwise; and (iv) any additional shares of Common Stock held
by an Investor as of the date hereof that are (A) not subject to a
currently-effective registration statement filed under the 1933 Act, (B)
restricted securities under the 1933 Act, and (C) not subject to resale in
accordance with Rule 144(k) under the 1933 Act; in each of the foregoing cases,
without regard to any contractual limitations on beneficial ownership.

                  e. "REGISTRATION STATEMENT" means a registration statement or
registration statements of the Company filed under the 1933 Act covering the
Registrable Securities.

         Capitalized terms used herein and not otherwise defined herein shall
have the respective meanings set forth in the Commitment Note.

         2. REGISTRATION.

                  a. Mandatory Registration. The Company shall prepare, and, as
soon as practicable but in no event later than sixty (60) days following the
date hereof (the "FILING DEADLINE"), file with the SEC the Registration
Statement on Form S-3 covering the resale of all of the Registrable Securities.
In the event that Form S-3 is unavailable for such a registration, the Company
shall use such other form as is available for such a registration, subject to
the provisions of Section 2(d). The Registration Statement prepared pursuant
hereto shall register for resale at least that number of shares of Common Stock
equal to the number of Registrable Securities as of the trading day immediately
preceding the date the Registration Statement is initially filed with the SEC,
subject to adjustment as provided in Section 2(e). The Company shall use all
reasonable efforts to have the Registration Statement declared effective by the
SEC within forty-five (45) days after the Filing Deadline.

                  b. Allocation of Registrable Securities. In the event that an
Investor sells or otherwise transfers any of such Investor's Registrable
Securities, each transferee shall be allocated a pro rata portion of the then
remaining number of Registrable Securities included in such Registration
Statement for such transferor. Any shares of Common Stock included in a
Registration Statement and which remain allocated to any Person which ceases to
hold any Registrable Securities covered by such Registration Statement shall be
allocated to the remaining Investors, pro rata based on the number of
Registrable Securities then held by such Investors which are covered by such
Registration Statement.

                                       2
<PAGE>

                  c. Legal Counsel. Subject to Section 5 hereof, the Buyer shall
have the right to select one legal counsel to review and oversee any offering
pursuant to this Section 2 ("LEGAL COUNSEL"), which shall be Katten Muchin Zavis
Rosenman or such other counsel as thereafter designated by a majority in
interest of holders of the Registrable Securities. The Company shall reasonably
cooperate with Legal Counsel in performing the Company's obligations under this
Agreement.

                  d. Ineligibility for Form S-3. In the event that Form S-3 is
not available for the registration of the resale of Registrable Securities
hereunder, the Company shall (i) register the resale of the Registrable
Securities on another appropriate form and (ii) undertake to register the
Registrable Securities on Form S-3 as soon as such form is available, provided,
that the Company shall maintain the effectiveness of the Registration Statement
then in effect until such time as a Registration Statement on Form S-3 covering
the Registrable Securities has been declared effective by the SEC.

                  e. Sufficient Number of Shares Registered. In the event the
number of shares available under a Registration Statement filed pursuant to
Section 2(a) is insufficient to cover all of the Registrable Securities required
to be covered by such Registration Statement or an Investor's allocated portion
of the Registrable Securities pursuant to Section 2(b), the Company shall amend
the Registration Statement, or file a new Registration Statement (on the short
form available therefor, if applicable), or both, so as to cover at least 100%
of the number of such Registrable Securities as of the trading day immediately
preceding the date of the filing of such amendment or new Registration
Statement, in each case, as soon as practicable, but in any event not later than
fifteen (15) days after the necessity therefor arises. The Company shall use all
reasonable efforts to cause such amendment and/or new Registration Statement to
become effective as soon as practicable following the filing thereof. For
purposes of the foregoing provision, the number of shares available under a
Registration Statement shall be deemed "insufficient to cover all of the
Registrable Securities" if at any time the number of Registrable Securities
covered by such Registration Statement is greater than the number of shares of
Common Stock available for resale under such Registration Statement. The
calculation set forth in the foregoing sentence shall be made without regard to
any limitations on the conversion of the Commitment Note and such calculation
shall assume that the Commitment Note is then convertible into shares of Common
Stock at the then prevailing Conversion Rate (as defined in the Commitment
Note).

                  f. Effect of Failure to File and Obtain and Maintain
Effectiveness of Registration Statement. If (i) a Registration Statement
covering all the Registrable Securities and required to be filed by the Company
pursuant to this Agreement is not filed with the SEC on or before the Filing
Deadline or (ii) on any day after the Registration Statement has been declared
effective by the SEC sales of all the Registrable Securities required to be
included on such Registration Statement cannot be made (other than during an
Allowable Grace Period (as defined in Section 3(q)) pursuant to the Registration
Statement (including, without limitation, because of a failure to keep the

                                       3
<PAGE>

Registration Statement effective, to disclose such information as is necessary
for sales to be made pursuant to the Registration Statement or to register
sufficient shares of Common Stock), then, as partial relief for the damages to
any holder by reason of any such delay in or reduction of its ability to sell
the underlying shares of Common Stock (which remedy shall not be exclusive of
any other remedies available at law or in equity), the Company shall pay to each
holder of Registrable Securities an amount in cash equal to the product of (A)
the sum of (I) the product of the Conversion Price (as defined in the Commitment
Note) multiplied by the principal amount of the Commitment Note held by such
holder, plus (II) the number of Registrable Securities multiplied by (B) the
product of (I) 0.00033 multiplied by (II) the sum of (x) the number of days
after the Filing Deadline but prior to and including the date which is one
hundred and fifty (150) days after the Closing Date that such Registration
Statement is not filed with the SEC, plus (y) the number of days after the date
which is one hundred and fifty (150) days after the Closing Date that the
Registration Statement is not declared effective by the SEC, plus (z) the number
of days after the Registration Statement has been declared effective by the SEC
that such Registration Statement is not available (other than during an
Allowable Grace Period) for the sale of at least all the Registrable Securities
required to be included on such Registration Statement pursuant to section 2(e).
The payments to which a holder shall be entitled pursuant to this Section 2(f)
are referred to herein as "REGISTRATION DELAY PAYMENTS." At the holders' option,
all or a portion of any Registration Delay Payment may be added to the principal
amount of the Commitment Note in lieu of a cash payment. Registration Delay
Payments paid in cash shall be paid on the earlier of (I) the last day of the
calendar month during which such Registration Delay Payments are incurred and
(II) the third business day after the event or failure giving rise to the
Registration Delayed Payments is cured. In the event the Company fails to make
Registration Delay Payments in a timely manner, such Registration Delay Payments
shall bear interest at the rate of 1.5% per month (prorated for partial months)
until paid in full.

         3. RELATED OBLIGATIONS.

         At such time as the Company is obligated to file a
Registration Statement with the SEC pursuant to Section 2(a) or 2(e), the
Company will use its best efforts to effect the registration of the Registrable
Securities in accordance with the intended method of disposition thereof and,
pursuant thereto, the Company shall have the following obligations:

                  a. The Company shall promptly prepare and file with the SEC a
Registration Statement with respect to the Registrable Securities (but in no
event later than the Filing Deadline) and use all reasonable efforts to cause
such Registration Statement relating to the Registrable Securities to become
effective as soon as practicable after such filing. The Company shall keep each
Registration Statement effective pursuant to Rule 415 at all times until the
earlier of (i) the date as of which the Investors may sell all of the
Registrable Securities covered by such Registration Statement without
restriction pursuant to Rule 144(k) (or successor thereto) promulgated under the
1933 Act or (ii) the date on which the Investors shall have sold all the
Registrable Securities covered by such Registration Statement (the "REGISTRATION
PERIOD"), which Registration Statement (including any amendments or supplements
thereto and prospectuses contained therein) shall not contain any untrue
statement of a material fact or omit to state a material fact required to be
stated therein, or necessary to make the statements therein, in light of the
circumstances in which they were made, not misleading. The term "all reasonable
efforts" shall mean, among other things, that the Company shall submit to the

                                       4
<PAGE>

SEC, within two (2) business days after the Company learns that no review of a
particular Registration Statement will be made by the staff of the SEC or that
the staff has no further comments on the Registration Statement, as the case may
be, a request for acceleration of effectiveness of such Registration Statement
to a time and date not later than 48 hours after the submission of such request.

                  b. Subject to Section 3(q), the Company shall prepare and file
with the SEC such amendments (including post-effective amendments) and
supplements to a Registration Statement and the prospectus used in connection
with such Registration Statement, which prospectus is to be filed pursuant to
Rule 424 promulgated under the 1933 Act, as may be necessary to keep such
Registration Statement effective at all times during the Registration Period,
and, during such period, comply with the provisions of the 1933 Act with respect
to the disposition of all Registrable Securities of the Company covered by such
Registration Statement until such time as all of such Registrable Securities
shall have been disposed of in accordance with the intended methods of
disposition by the seller or sellers thereof as set forth in such Registration
Statement. In the case of amendments and supplements to a Registration Statement
which are required to be filed pursuant to this Agreement (including pursuant to
this Section 3(b)) by reason of the Company filing a report on Form 10-K, Form
10-Q or Form 8-K or any analogous report under the Securities Exchange Act of
1934, as amended (the "1934 ACT"), the Company shall have incorporated such
report by reference into the Registration Statement, if applicable, or shall
file such amendments or supplements with the SEC on the same day on which the
1934 Act report is filed which created the requirement for the Company to amend
or supplement the Registration Statement.

                  c. The Company shall permit Legal Counsel to review and
comment upon (i) the Registration Statement at least five (5) days prior to its
filing with the SEC and (ii) all other Registration Statements and all
amendments and supplements to all Registration Statements (except for Annual
Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form
8-K and any similar or successor reports) within a reasonable number of days
prior to their filing with the SEC. The Company shall furnish to Legal Counsel,
without charge, (i) any correspondence from the SEC or the staff of the SEC to
the Company or its representatives relating to any Registration Statement, (ii)
promptly after the same is prepared and filed with the SEC, one copy of any
Registration Statement and any amendment(s) thereto, including financial
statements and schedules, all documents incorporated therein by reference and
all exhibits and (iii) upon the effectiveness of any Registration Statement, one
copy of the prospectus included in such Registration Statement and all
amendments and supplements thereto. The Company shall reasonably cooperate with
Legal Counsel in performing the Company's obligations pursuant to this Section
3. The Company may provide the documents required to be provided by it in
accordance with this paragraph via e-mail.

                  d. The Company shall furnish to each Investor whose
Registrable Securities are included in any Registration Statement, without
charge, (i) promptly after the same is prepared and filed with the SEC, at least
one copy of such Registration Statement and any amendment(s) thereto, including
financial statements and schedules, all documents incorporated therein by
reference, all exhibits and each preliminary prospectus, (ii) upon the
effectiveness of any Registration Statement, one (1) copy of the prospectus
included in such Registration Statement and all amendments and supplements
thereto (or such other number of copies as such Investor may reasonably request)
and (iii) such other documents, including copies of any preliminary or final

                                       5
<PAGE>

prospectus, as such Investor may reasonably request from time to time in order
to facilitate the disposition of the Registrable Securities owned by such
Investor. The Company may provide the documents required to be provided by it in
accordance with this paragraph via e-mail.

                  e. Subject to Section 3(q), the Company shall use all
reasonable efforts to (i) register and qualify, unless an exemption from
registration and qualification applies, the resale by Investors of the
Registrable Securities covered by a Registration Statement under such other
securities or "blue sky" laws of all the jurisdictions in the United States,
(ii) prepare and file in those jurisdictions, such amendments (including
post-effective amendments) and supplements to such registrations and
qualifications as may be necessary to maintain the effectiveness thereof during
the Registration Period, (iii) take such other actions as may be necessary to
maintain such registrations and qualifications in effect at all times during the
Registration Period, and (iv) take all other actions reasonably necessary or
advisable to qualify the Registrable Securities for sale in such jurisdictions;
provided, however, that the Company shall not be required in connection
therewith or as a condition thereto to (w) register or otherwise qualify as a
broker or dealer in any state, (x) qualify to do business in any jurisdiction
where it would not otherwise be required to qualify but for this Section 3(e),
(y) subject itself to general taxation in any such jurisdiction, or (z) file a
general consent to service of process in any such jurisdiction. The Company
shall promptly notify Legal Counsel and each Investor who holds Registrable
Securities of the receipt by the Company of any notification with respect to the
suspension of the registration or qualification of any of the Registrable
Securities for sale under the securities or "blue sky" laws of any jurisdiction
in the United States or its receipt of actual notice of the initiation or
threatening of any proceeding for such purpose.

                  f. The Company shall notify Legal Counsel and each Investor in
writing of the happening of any event, as promptly as practicable after becoming
aware of such event, as a result of which the prospectus included in a
Registration Statement, as then in effect, includes an untrue statement of a
material fact or omission to state a material fact required to be stated therein
or necessary to make the statements therein, in light of the circumstances under
which they were made, not misleading (provided that in no event shall such
notice contain any material, nonpublic information), and, subject to Section
3(q), promptly prepare a supplement or amendment to such Registration Statement
to correct such untrue statement or omission, and deliver one (1) copy of such
supplement or amendment to Legal Counsel and each Investor (or such other number
of copies as Legal Counsel or such Investor may reasonably request). The Company
may provide such supplement or amendment to Legal Counsel and each Investor via
e-mail. The Company shall also promptly notify Legal Counsel and each Investor
in writing (i) when a prospectus or any prospectus supplement or post-effective
amendment has been filed, and when a Registration Statement or any
post-effective amendment has become effective (notification of such
effectiveness shall be delivered to Legal Counsel and each Investor by facsimile
on the same day of such effectiveness and by overnight mail), (ii) of any
request by the SEC for amendments or supplements to a Registration Statement or
related prospectus or related information, and (iii) of the Company's reasonable
determination that a post-effective amendment to a Registration Statement would
be appropriate.

                                       6
<PAGE>

                  g. Subject to Section 3(q), the Company shall use all
reasonable efforts to prevent the issuance of any stop order or other suspension
of effectiveness of a Registration Statement, or the suspension of the
qualification of any of the Registrable Securities for sale in any jurisdiction
and, if such an order or suspension is issued, to obtain the withdrawal of such
order or suspension at the earliest practicable moment and to notify Legal
Counsel and each Investor who holds Registrable Securities being sold of the
issuance of such order and the resolution thereof or its receipt of actual
notice of the initiation or threat of any proceeding for such purpose.

                  h. At the reasonable request of any Investor, the Company
shall furnish to such Investor, at such Investor's expense, on the date of the
effectiveness of the Registration Statement and thereafter from time to time on
such dates as an Investor may reasonably request (i) a letter, dated such date,
from the Company's independent certified public accountants in form and
substance as is customarily given by independent certified public accountants to
underwriters in an underwritten public offering, addressed to the Investors, and
(ii) an opinion, dated as of such date, of counsel representing the Company for
purposes of such Registration Statement, in form, scope and substance as is
customarily given in an underwritten public offering, addressed to the
Investors.

                  i. The Company shall make available for inspection by (i) any
Investor, (ii) Legal Counsel and (iii) one firm of accountants or other agents
retained by a majority in interest of the Investors (collectively, the
"INSPECTORS"), all pertinent financial and other records, and pertinent
corporate documents and properties of the Company (collectively, the "RECORDS"),
as shall be reasonably deemed necessary by each Inspector, and cause the
Company's officers, directors and employees to supply all information which any
Inspector may reasonably request; provided, however, that each Inspector and
Investor exercising its rights under this Section 3(i) shall agree to hold in
strict confidence and shall not make any disclosure (except to an Investor who
is subject to the non-disclosure and other obligations set forth in this
paragraph) or use of any Record or of any other information which the Company
determines in good faith to be confidential, and of which determination the
Inspectors are so notified, unless (a) the release of such Records is ordered
pursuant to a final, non-appealable subpoena or order from a court or government
body of competent jurisdiction, or (b) the information in such Records has been
made generally available to the public other than by disclosure in violation of
this or any other agreement of which the Inspector has knowledge. Each Investor
agrees that it shall, upon learning that disclosure of such Records is sought in
or by a court or governmental body of competent jurisdiction or through other
means, give prompt notice to the Company and allow the Company, at its expense,
to undertake appropriate action to prevent disclosure of, or to obtain a
protective order for, the Records deemed confidential. Each Investor which
exercises rights under this Section 3(i) shall be obligated to execute a
non-disclosure agreement containing such reasonable terms as the Company may
request and covering the specific information disclosed.

                  j. The Company shall hold in confidence and not make any
disclosure of confidential information concerning an Investor provided to the
Company unless (i) the disclosure of such information is required to be included
in the Registration Statement or is necessary to avoid or correct a misstatement
or omission in any Registration Statement, (ii) the release of such information
is ordered pursuant to a subpoena or other final, non-appealable order from a
court or governmental body of competent jurisdiction, or (iii) such information
has been made generally available to the public other than by disclosure in
violation of this Agreement or any other agreement. The Company agrees that it

                                       7
<PAGE>

shall, upon learning that disclosure of such information concerning an Investor
is sought in or by a court or governmental body of competent jurisdiction or
through other means, give prompt written notice to such Investor and allow such
Investor, at the Investor's expense, to undertake appropriate action to prevent
disclosure of, or to obtain a protective order for, such information.

                  k. The Company shall use all reasonable efforts to cause all
the Registrable Securities covered by a Registration Statement to be listed on
each securities exchange or market on which securities of the same class or
series issued by the Company are then listed, if any, if the listing of such
Registrable Securities is then permitted under the rules of such exchange or
market, and, without limiting the generality of the foregoing, to arrange for at
least two market makers to register with the National Association of Securities
Dealers, Inc. ("NASD") as such with respect to such Registrable Securities. The
Company shall pay all fees and expenses in connection with satisfying its
obligation under this Section 3(k).

                  l. The Company shall cooperate with the Investors who hold
Registrable Securities being offered and, to the extent applicable, facilitate
the timely preparation and delivery of certificates (not bearing any restrictive
legend) representing the Registrable Securities to be offered pursuant to a
Registration Statement and enable such certificates to be in such denominations
or amounts, as the case may be, as the Investors may reasonably request and,
subject to compliance with this Agreement and applicable laws relating to
transfer(s) of the Registrable Securities, registered in such names as the
Investors may request.

                  m. If requested by an Investor, the Company shall (i) as soon
as practicable incorporate in a prospectus supplement or post-effective
amendment such information as an Investor requests to be included therein
relating to the sale and distribution of Registrable Securities, including,
without limitation, information with respect to the number of Registrable
Securities being offered or sold, the purchase price being paid therefor and any
other terms of the offering of the Registrable Securities to be sold in such
offering; (ii) as soon as practicable make all required filings of such
prospectus supplement or post-effective amendment after being notified of the
matters to be incorporated in such prospectus supplement or post-effective
amendment; and (iii) as soon as practicable, supplement or make amendments to
any Registration Statement if reasonably requested by an Investor of such
Registrable Securities.

                  n. The Company shall use its best efforts to cause the
Registrable Securities covered by the Registration Statement to be registered
with or approved by such other governmental agencies or authorities in the
United States as may be necessary to consummate the disposition of such
Registrable Securities in the United States.

                  o. The Company shall otherwise use its best efforts to comply
with all applicable rules and regulations of the SEC in connection with any
registration hereunder.

                  p. Within two (2) business days after a Registration Statement
which covers Registrable Securities is ordered effective by the SEC, the Company
shall deliver, and shall cause legal counsel for the Company to deliver, to the
transfer agent for such Registrable Securities (with copies to the Investors
whose Registrable Securities are included in such Registration Statement)
confirmation that such Registration Statement has been declared effective by the
SEC in the form attached hereto as Exhibit A.

                                       8
<PAGE>

                  q. Notwithstanding anything to the contrary herein, at any
time after the Registration Statement has been declared effective by the SEC,
the Company may delay the disclosure of material non-public information
concerning the Company the disclosure of which at the time is not, in the good
faith opinion of the Chairperson and Chief Executive Officer of the Company
after consultation with its counsel, in the best interest of the Company and, in
the opinion of counsel to the Company, otherwise required (a "GRACE PERIOD");
provided, that the Company shall promptly (i) notify the Investors in writing of
the existence of material non-public information giving rise to a Grace Period
(provided, that in each notice the Company will not disclose the content of such
material non-public information to the Investors) and the date on which the
Grace Period will begin, and (ii) notify the Investors in writing of the date on
which the Grace Period ends; and, provided, further, that no Grace Period shall
exceed twenty-five (25) consecutive days and during any 365-day period such
Grace Periods shall not exceed an aggregate of fifty (50) days and the first day
of any Grace Period must be at least two (2) trading days after the last day of
any prior Grace Period (an "ALLOWABLE GRACE PERIOD"); provided, however, that
such twenty-five (25) and fifty (50) day periods shall be extended to forty-five
(45) and ninety (90) days, respectively, in the event that such Grace Period is
pursuant to an acquisition by the Company which is required to be reported under
Item 2.01 of Form 8-K and for which pro forma financial information is required
to be reported pursuant to Regulation S-X promulgated under the 1933 Act. For
purposes of determining the length of a Grace Period above, the Grace Period
shall begin on and include the date the holders receive the notice referred to
in clause (i) and shall end on and include the later of the date the holders
receive the notice referred to in clause (ii) and the date referred to in such
notice. The provisions of Section 3(g) hereof shall not be applicable during the
period of any Allowable Grace Period. Upon expiration of the Grace Period, the
Company shall again be bound by the first sentence of Section 3(f) with respect
to the information giving rise thereto unless such material non-public
information is no longer applicable.

         4. OBLIGATIONS OF THE INVESTORS.

                  a. At least seven (7) business days prior to the first
anticipated filing date of a Registration Statement, the Company shall notify
each Investor in writing of the information the Company requires from each such
Investor if such Investor elects to have any of such Investor's Registrable
Securities included in such Registration Statement. It shall be a condition
precedent to the obligations of the Company to complete the registration
pursuant to this Agreement with respect to the Registrable Securities of a
particular Investor that such Investor shall furnish to the Company such
information regarding itself, the Registrable Securities held by it and the
intended method of disposition of the Registrable Securities held by it as shall
be reasonably required to effect the registration of such Registrable Securities
and shall execute such documents in connection with such registration as the
Company may reasonably request.

                  b. Each Investor, by such Investor's acceptance of the
Registrable Securities, agrees to cooperate with the Company as reasonably
requested by the Company in connection with the preparation and filing of any
Registration Statement hereunder, unless such Investor has notified the Company
in writing of such Investor's election to exclude all of such Investor's
Registrable Securities from such Registration Statement.

                                       9
<PAGE>

                  c. Each Investor agrees that, upon receipt of any notice from
the Company of a Grace Period under Section 3(q) or of the happening of any
event of the kind described in Section 3(g) or the first sentence of 3(f), such
Investor will immediately discontinue disposition of Registrable Securities
pursuant to any Registration Statement(s) covering such Registrable Securities
until such Investor's receipt of the copies of the supplemented or amended
prospectus contemplated by Section 3(g) or the first sentence of 3(f) or receipt
of notice that no supplement or amendment is required. Notwithstanding anything
to the contrary, the Company shall cause its transfer agent to deliver
unlegended shares of Common Stock to a transferee of an Investor in accordance
with the terms of the Commitment Note in connection with any sale of Registrable
Securities with respect to which an Investor has entered into a contract for
sale prior to the Investor's receipt of a notice from the Company of the
happening of any event of the kind described in Section 3(g) or the first
sentence of 3(f) and for which the Investor has not yet settled.

         5. EXPENSES OF REGISTRATION.

         All reasonable expenses, other than underwriting discounts and
commissions, incurred in connection with registrations, filings or
qualifications pursuant to Sections 2 and 3, including, without limitation, all
registration, listing and qualifications fees, printers and accounting fees, and
fees and disbursements of counsel for the Company shall be paid by the Company.

         6. INDEMNIFICATION.

         In the event any Registrable Securities are included in a
Registration Statement under this Agreement:

                  a. To the fullest extent permitted by law, the Company will,
and hereby does, indemnify, hold harmless and defend each Investor, the
directors, officers, partners, employees, agents, representatives of, and each
Person, if any, who controls any Investor within the meaning of the 1933 Act or
the 1934 Act (each, an "INDEMNIFIED Person"), against any losses, claims,
damages, liabilities, judgments, fines, penalties, charges, costs, reasonable
attorneys' fees, amounts paid in settlement or expenses, joint or several,
(collectively, "CLAIMS") incurred in investigating, preparing or defending any
action, claim, suit, inquiry, proceeding, investigation or appeal taken from the
foregoing by or before any court or governmental, administrative or other
regulatory agency, body or the SEC, whether pending or threatened, whether or
not an indemnified party is or may be a party thereto ("INDEMNIFIED DAMAGES"),
to which any of them may become subject insofar as such Claims (or actions or
proceedings, whether commenced or threatened, in respect thereof) arise out of
or are based upon: (i) any untrue statement or alleged untrue statement of a
material fact in a Registration Statement or any post-effective amendment
thereto or in any filing made in connection with the qualification of the
offering under the securities or other "blue sky" laws of any jurisdiction in
which Registrable Securities are offered ("BLUE SKY FILING"), or the omission or
alleged omission to state a material fact required to be stated therein or
necessary to make the statements therein not misleading, (ii) any untrue
statement or alleged untrue statement of a material fact contained in any

                                       10
<PAGE>

preliminary prospectus if used prior to the effective date of such Registration
Statement, or contained in the final prospectus (as amended or supplemented, if
the Company files any amendment thereof or supplement thereto with the SEC) or
the omission or alleged omission to state therein any material fact necessary to
make the statements made therein, in light of the circumstances under which the
statements therein were made, not misleading, (iii) any violation or alleged
violation by the Company of the 1933 Act, the 1934 Act, any other law,
including, without limitation, any state securities law, or any rule or
regulation thereunder relating to the offer or sale of the Registrable
Securities pursuant to a Registration Statement or (iv) any material violation
of this Agreement by the Company (the matters in the foregoing clauses (i)
through (iv) being, collectively, "VIOLATIONS"). Subject to Section 6(c), the
Company shall reimburse the Indemnified Persons, promptly as such expenses are
incurred and are due and payable, for any legal fees or other reasonable
expenses incurred by them in connection with investigating or defending any such
Claim. Notwithstanding anything to the contrary contained herein, the
indemnification agreement contained in this Section 6(a): (i) shall not apply to
a Claim by an Indemnified Person arising out of or based upon a Violation which
occurs in reliance upon and in conformity with information furnished in writing
to the Company by such Indemnified Person for such Indemnified Person expressly
for use in connection with the preparation of the Registration Statement or any
such amendment thereof or supplement thereto, if such prospectus was timely made
available by the Company pursuant to Section 3(d); (ii) with respect to any
preliminary prospectus, shall not inure to the benefit of any such person from
whom the person asserting any such Claim purchased the Registrable Securities
that are the subject thereof (or to the benefit of any person controlling such
person) if the untrue statement or omission of material fact contained in the
preliminary prospectus was corrected in the prospectus, as then amended or
supplemented, if such prospectus was timely made available by the Company
pursuant to Section 3(d), and the Indemnified Person was promptly advised in
writing not to use the incorrect prospectus prior to the use giving rise to a
violation and such Indemnified Person, notwithstanding such advice, used it or
failed to deliver the correct prospectus as required by the 1933 Act and such
correct prospectus was timely made available pursuant to Section 3(d); (iii)
shall not be available to the extent such Claim is based on a failure of the
Investor to deliver or to cause to be delivered the prospectus made available by
the Company, including a corrected prospectus, if such prospectus or corrected
prospectus was timely made available by the Company pursuant to Section 3(d);
and (iv) shall not apply to amounts paid in settlement of any Claim if such
settlement is effected without the prior written consent of the Company, which
consent shall not be unreasonably withheld. Such indemnity shall remain in full
force and effect regardless of any investigation made by or on behalf of the
Indemnified Person and shall survive the transfer of the Registrable Securities
by the Investors pursuant to Section 9.

                  b. In connection with any Registration Statement in which an
Investor is participating, each such Investor agrees to severally and not
jointly indemnify, hold harmless and defend, to the same extent and in the same
manner as is set forth in Section 6(a), the Company, each of its directors, each
of its officers who signs the Registration Statement each Person, if any, who
controls the Company within the meaning of the 1933 Act or the 1934 Act (each an
"INDEMNIFIED PARTY"), against any Claim or Indemnified Damages to which any of
them may become subject, under the 1933 Act, the 1934 Act or otherwise, insofar
as such Claim or Indemnified Damages arise out of or are based upon any
Violation, in each case to the extent, and only to the extent, that such
Violation occurs in reliance upon and in conformity with written information
furnished to the Company by such Investor expressly for use in connection with
such Registration Statement; and, subject to Section 6(c), such Investor will
reimburse any legal or other expenses reasonably incurred by an Indemnified
Party in connection with investigating or defending any such Claim; provided,
however, that the indemnity agreement contained in this Section 6(b) and the

                                       11
<PAGE>

agreement with respect to contribution contained in Section 7 shall not apply to
amounts paid in settlement of any Claim if such settlement is effected without
the prior written consent of such Investor, which consent shall not be
unreasonably withheld; provided, further, however, that the Investor shall be
liable under this Section 6(b) for only that amount of a Claim or Indemnified
Damages as does not exceed the net proceeds to such Investor as a result of the
sale of Registrable Securities pursuant to such Registration Statement. Such
indemnity shall remain in full force and effect regardless of any investigation
made by or on behalf of such Indemnified Party and shall survive the transfer of
the Registrable Securities by the Investors pursuant to Section 9.
Notwithstanding anything to the contrary contained herein, the indemnification
agreement contained in this Section 6(b) with respect to any preliminary
prospectus shall not inure to the benefit of any Indemnified Party if the untrue
statement or omission of material fact contained in the preliminary prospectus
was corrected on a timely basis in the prospectus, as then amended or
supplemented.

                  c. Promptly after receipt by an Indemnified Person or
Indemnified Party under this Section 6 of notice of the commencement of any
action or proceeding (including any governmental action or proceeding) involving
a Claim, such Indemnified Person or Indemnified Party shall, if a Claim in
respect thereof is to be made against any indemnifying party under this Section
6, deliver to the indemnifying party a written notice of the commencement
thereof, and the indemnifying party shall have the right to participate at its
own expense in, and, to the extent the indemnifying party so desires, jointly
with any other indemnifying party similarly noticed, to assume control of the
defense thereof with counsel mutually satisfactory to the indemnifying party and
the Indemnified Person or the Indemnified Party, as the case may be; provided,
however, that an Indemnified Person or Indemnified Party shall have the right to
retain its own counsel with the fees and expenses of not more than one counsel
for all such Indemnified Persons or Indemnified Parties to be paid by the
indemnifying party, if, in the reasonable opinion of counsel retained by the
indemnifying party, the representation by such counsel of the Indemnified Person
or Indemnified Party and the indemnifying party would be inappropriate due to
actual or potential differing interests between such Indemnified Person or
Indemnified Party and any other party represented by such counsel in such
proceeding. In the case of an Indemnified Person, legal counsel referred to in
the immediately preceding sentence shall be selected by the Investors. The
Indemnified Party or Indemnified Person shall cooperate fully with the
indemnifying party in connection with any negotiation or defense of any such
action or Claim by the indemnifying party and shall furnish to the indemnifying
party all information reasonably available to the Indemnified Party or
Indemnified Person which relates to such action or Claim. The indemnifying party
shall keep the Indemnified Party or Indemnified Person fully apprized at all
times as to the status of the defense or any settlement negotiations with
respect thereto. No indemnifying party shall be liable for any settlement of any
action, claim or proceeding effected without its prior written consent,
provided, however, that the indemnifying party shall not unreasonably withhold,
delay or condition its consent. No indemnifying party shall, without the prior
written consent of the Indemnified Party or Indemnified Person, consent to entry
of any judgment or enter into any settlement or other compromise which does not
include as an unconditional term thereof the giving by the claimant or plaintiff
to such Indemnified Party or Indemnified Person of a release from all liability
in respect to such Claim or litigation. Following indemnification as provided

                                       12
<PAGE>

for hereunder, the indemnifying party shall be subrogated to all rights of the
Indemnified Party or Indemnified Person with respect to all third parties, firms
or corporations relating to the matter for which indemnification has been made.
The failure to deliver written notice to the indemnifying party within a
reasonable time of the commencement of any such action shall not relieve such
indemnifying party of any liability to the Indemnified Person or Indemnified
Party under this Section 6, except to the extent that the indemnifying party is
prejudiced in its ability to defend such action.

                  d. The indemnification of costs, expenses and reasonable
attorneys' fees required by this Section 6 shall be made by periodic payments of
the amount thereof during the course of the investigation or defense, as and
when bills are received or such costs, expenses or fees are incurred.

                  e. The indemnity agreements contained herein shall be in
addition to (i) any cause of action or similar right of the Indemnified Party or
Indemnified Person against the indemnifying party or others, and (ii) any
liabilities the indemnifying party may be subject to pursuant to the law.

         7. CONTRIBUTION.

                  a. To the extent any indemnification by an indemnifying party
is prohibited or limited by law, the indemnifying party agrees to make the
maximum contribution with respect to any amounts for which it would otherwise be
liable under Section 6 to the fullest extent permitted by law; provided,
however, that: (i) no person involved in the sale of Registrable Securities
which person is guilty of fraudulent misrepresentation (within the meaning of
Section 11(f) of the 1933 Act) in connection with such sale shall be entitled to
contribution from any person involved in such sale of Registrable Securities who
was not guilty of fraudulent misrepresentation; and (ii) contribution by any
seller of Registrable Securities shall be limited in amount to the net amount of
proceeds received by such seller from the sale of such Registrable Securities
pursuant to such Registration Statement.

         8. REPORTS UNDER THE 1934 ACT.

         With a view to making available to the Investors the benefits
of Rule 144 promulgated under the 1933 Act or any other similar rule or
regulation of the SEC that may at any time permit the Investors to sell
securities of the Company to the public without registration ("RULE 144"), the
Company agrees to:

                  a. make and keep public information available, as those terms
are understood and defined in Rule 144;

                  b. file with the SEC in a timely manner all reports and other
documents required of the Company under the 1933 Act and the 1934 Act so long as
the Company remains subject to such requirements and the filing of such reports
and other documents is required for the applicable provisions of Rule 144; and

                  c. furnish to each Investor so long as such Investor owns
Registrable Securities, promptly upon request, (i) a written statement by the
Company, if true, that it has complied with the reporting requirements of Rule
144, the 1933 Act and the 1934 Act, (ii) unless unavailable on the SEC's EDGAR
database, a copy of the most recent annual or quarterly report of the Company
and such other reports and documents so filed by the Company, and (iii) such
other information as may be reasonably requested to permit the Investors to sell
such securities pursuant to Rule 144 without registration.

                                       13
<PAGE>

         9. ASSIGNMENT OF REGISTRATION RIGHTS.

         The rights under this Agreement shall be automatically
assignable by the Investors to any transferee of all or any portion of the
Registrable Securities if: (i) the Investor agrees in writing with the
transferee or assignee to assign such rights, and a copy of such agreement is
furnished to the Company within ten (10) days after such assignment; (ii) the
Company is, within ten (10) days after such transfer or assignment, furnished
with written notice of (a) the name and address of such transferee or assignee,
and (b) the securities with respect to which such registration rights are being
transferred or assigned; (iii) immediately following such transfer or assignment
the further disposition of such securities by the transferee or assignee is
restricted under the 1933 Act and applicable state securities laws; (iv) at or
before the time the Company receives the written notice contemplated by clause
(ii) of this sentence the transferee or assignee agrees in writing with the
Company to be bound by all of the provisions contained herein; and (v) such
transfer shall have been made in accordance with the applicable requirements of
the Commitment Note.

         10. AMENDMENT OF REGISTRATION RIGHTS.

         Provisions of this Agreement may be amended and the observance
thereof may be waived (either generally or in a particular instance and either
retroactively or prospectively), only with the written consent of the Company
and the Investors. Any amendment or waiver effected in accordance with this
Section 10 shall be binding upon each Investor and the Company. No such
amendment shall be effective to the extent that it applies to less than all of
the holders of the Registrable Securities. No consideration shall be offered or
paid to any Person to amend or consent to a waiver or modification of any
provision of any of this Agreement unless the same consideration also is offered
to all of the parties to this Agreement.

         11. MISCELLANEOUS.

                  a. A Person is deemed to be a holder of Registrable Securities
whenever such Person owns or is deemed to own of record such Registrable
Securities. If the Company receives conflicting instructions, notices or
elections from two (2) or more Persons with respect to the same Registrable
Securities, the Company shall act upon the basis of instructions, notice or
election received from the registered owner of such Registrable Securities.

                  b. Except as otherwise expressly permitted by this Agreement,
any notices, consents, waivers or other communications required or permitted to
be given under the terms of this Agreement must be in writing and will be deemed
to have been delivered: (i) upon receipt, when delivered personally; (ii) upon
receipt, when sent by facsimile (provided confirmation of transmission is
mechanically or electronically generated and kept on file by the sending party);
or (iii) three business days after deposit with a nationally recognized
overnight delivery service, in each case properly addressed to the party to
receive the same. The addresses and facsimile numbers for such communications
shall be:

                                       14
<PAGE>

         If to the Company:
                      Lifestream Technologies, Inc.
                      510 West Clearwater Loop, Suite 101
                      Post Falls, Idaho 83854
                      Telephone:  (208) 457-9409
                      Facsimile:  (208) 457-9509
                      E-Mail:  NikkiN@lifestreamtech.com
                      Attention:     Nikki Nessan
         If to Buyer:
                      RAB Special Situations LP
                      c/o RAB Capital plc
                      1 Adam Street
                      London
                      WC2N 6LE
                      United Kingdom
                      Telephone:  44 (0)20 7389 7000
                      Facsimile:  44 (0)20 7389 7050
                      E-Mail:  jj@rabcap.com
                      Attention:     Joseph Jayaraj

         If to Legal Counsel:
                      Katten Muchin Zavis Rosenman
                      525 West Monroe Street
                      Chicago, Illinois 60661-3693
                      Telephone:  (312) 902-5587
                      Facsimile:  (312) 577-4571
                      E-Mail:  milton.buckingham@kmzr.com
                      Attention:     Milton K. Buckingham, Esq.

         Any party may modify its notice information specified above by
providing written notice to each other party of such other address and/or
facsimile number and/or such other person whose attention a notice should be
directed, five days prior to the effectiveness of such change. Written
confirmation of receipt (A) given by the recipient of such notice, consent,
waiver or other communication, (B) mechanically or electronically generated by
the sender's facsimile machine containing the time, date, recipient facsimile
number and an image of the first page of such transmission or (C) provided by a
courier or overnight courier service shall be rebuttable evidence of personal
service, receipt by facsimile or receipt from a nationally recognized overnight
delivery service in accordance with clause (i), (ii) or (iii) above,
respectively.

                                       15
<PAGE>

                  c. Failure of any party to exercise any right or remedy under
this Agreement or otherwise, or delay by a party in exercising such right or
remedy, shall not operate as a waiver thereof.

                  d. All questions concerning the construction, validity,
enforcement and interpretation of this Agreement shall be governed by the
internal laws of the State of New York, without giving effect to any choice of
law or conflict of law provision or rule (whether of the State of New York or
any other jurisdictions) that would cause the application of the laws of any
jurisdictions other than the State of New York. Each party hereby irrevocably
submits to the non-exclusive jurisdiction of the state and federal courts
sitting in the City of New York, borough of Manhattan, for the adjudication of
any dispute hereunder or in connection herewith or with any transaction
contemplated hereby or discussed herein, and hereby irrevocably waives, and
agrees not to assert in any suit, action or proceeding, any claim that it is not
personally subject to the jurisdiction of any such court, that such suit, action
or proceeding is brought in an inconvenient forum or that the venue of such
suit, action or proceeding is improper. Each party hereby irrevocably waives
personal service of process and consents to process being served in any such
suit, action or proceeding by mailing a copy thereof to such party at the
address for such notices to it under this Agreement and agrees that such service
shall constitute good and sufficient service of process and notice thereof.
Nothing contained herein shall be deemed to limit in any way any right to serve
process in any manner permitted by law. If any provision of this Agreement shall
be invalid or unenforceable in any jurisdiction, such invalidity or
unenforceability shall not affect the validity or enforceability of the
remainder of this Agreement in that jurisdiction or the validity or
enforceability of any provision of this Agreement in any other jurisdiction.
EACH PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO
REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN
CONNECTION HEREWITH OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION
CONTEMPLATED HEREBY.

                  e. This Agreement, the Amendment Agreement between the Company
and Buyer of even date herewith and the Commitment Note supersede all other
prior oral or written agreements between the Company and the Buyer, their
affiliates and persons acting on their behalf with respect to the matters
discussed herein, and this Agreement and the instruments referenced herein
contain the entire understanding of the Company and the Buyer with respect to
the matters covered herein and therein and, except as specifically set forth
herein or therein, neither the Company nor the Buyer makes any representation,
warranty, covenant or undertaking with respect to such matters.

                  f. Subject to the requirements of Section 9, this Agreement
shall inure to the benefit of and be binding upon the permitted successors and
assigns of each of the parties hereto.

                  g. The headings in this Agreement are for convenience of
reference only and shall not limit or otherwise affect the meaning hereof.

                  h. This Agreement may be executed in identical counterparts,
each of which shall be deemed an original but all of which shall constitute one
and the same agreement. This Agreement, once executed by a party, may be
delivered to the other party hereto by facsimile transmission of a copy of this
Agreement bearing the signature of the party so delivering this Agreement.

                                       16
<PAGE>

                  i. Each party shall do and perform, or cause to be done and
performed, all such further acts and things, and shall execute and deliver all
such other agreements, certificates, instruments and documents, as the other
party may reasonably request in order to carry out the intent and accomplish the
purposes of this Agreement and the consummation of the transactions contemplated
hereby.

                  j. All consents and other determinations required to be made
by the Investors pursuant to this Agreement shall be made, unless otherwise
specified in this Agreement, by Investors holding at least two-thirds (67%) of
the Registrable Securities, determined as if all of the Commitment Notes then
outstanding have been converted into Registrable Securities without regard to
any limitations on conversion of the Commitment Note(s).

                  k. The language used in this Agreement will be deemed to be
the language chosen by the parties to express their mutual intent and no rules
of strict construction will be applied against any party.

                  l. This Agreement is intended for the benefit of the parties
hereto and their respective permitted successors and assigns, and is not for the
benefit of, nor may any provision hereof be enforced by, any other Person.

                                   * * * * * *

                                       17
<PAGE>

         IN WITNESS WHEREOF, the parties have caused this Registration Rights
Agreement to be duly executed as of day and year first above written.

COMPANY:                                        INVESTOR:
LIFESTREAM TECHNOLOGIES, INC.                   RAB SPECIAL SITUATIONS LP
By:                                             By:
         -------------------------------           -----------------------------
Name:                                           Name:
         -------------------------------             ---------------------------
Its:                                            Its:
         -------------------------------            ----------------------------

                                       18
<PAGE>

                                    EXHIBIT A

                         FORM OF NOTICE OF EFFECTIVENESS
                            OF REGISTRATION STATEMENT

[TRANSFER AGENT]
ATTN:
                     RE:      LIFESTREAM TECHNOLOGIES, INC.

Ladies and Gentlemen:

         We are counsel to Lifestream Technologies, Inc., a Nevada corporation
(the "COMPANY"), and have represented the Company in connection with one or more
convertible notes (the "COMMITMENT NOTE(S)") and shares of the Company's common
stock, par value $0.001 per share (the "COMMON STOCK"), issued by the Company to
the Investor(s) named in such Commitment Note(s) (collectively, the
"HOLDER(S)"), which Commitment Note(s) is (are) convertible into shares of
Common Stock. The Company also has entered into a Registration Rights Agreement
with the Holder(s) (the "REGISTRATION RIGHTS AGREEMENT") pursuant to which the
Company agreed, among other things, to register the Registrable Securities (as
defined in the Registration Rights Agreement) under the Securities Act of 1933,
as amended (the "1933 ACT"). In connection with the Company's obligations under
the Registration Rights Agreement, on _________, 200__, the Company filed a
Registration Statement on Form SB-2 (File No. 333-_____________) (the
"REGISTRATION STATEMENT") with the Securities and Exchange Commission (the
"SEC") relating to the Registrable Securities which names each of the Holders as
a selling stockholder thereunder.

         In connection with the foregoing, we advise you that a member of the
SEC's staff has advised us by telephone that the SEC has entered an order
declaring the Registration Statement effective under the 1933 Act at [ENTER TIME
OF EFFECTIVENESS] on [ENTER DATE OF EFFECTIVENESS] and we have no knowledge,
after telephonic inquiry of a member of the SEC's staff, that any stop order
suspending its effectiveness has been issued or that any proceedings for that
purpose are pending before, or threatened by, the SEC and the Registrable
Securities are available for resale under the 1933 Act pursuant to the
Registration Statement (subject to applicable prospectus delivery requirements
of the 1933 Act).

                                           Very truly yours,
                                           [ISSUER'S COUNSEL]

                                           By:
                                              -------------------------------

cc:  [LIST NAMES OF HOLDERS]

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