Document:

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                                                                     Exhibit 4.2

                        REGISTRATION RIGHTS AGREEMENT

         This Registration Rights Agreement (this "Agreement") is made and
entered into as of October 23, 2003, by and among SureBeam Corporation, a
Delaware corporation (the "Company"), and the purchasers identified on the
signature pages hereto (each, a "Purchaser" and collectively, the "Purchasers")
in connection with the execution of that certain Securities Purchase Agreement
dated as of the date hereof among the Company and the Purchasers (the "Purchase
Agreement").

         NOW, THEREFORE, IN CONSIDERATION of the mutual covenants contained in
this Agreement, and for other good and valuable consideration the receipt and
adequacy of which are hereby acknowledged, the Company and Purchasers agree as
follows:

1. Definitions. In addition to the terms defined elsewhere in this Agreement,
any capitalized terms set forth herein shall have the meaning set forth on
EXHIBIT A hereto.

2. Registration.

         2.1 Registration Statement.

                  (a) On or prior to a Filing Date, if any, the Company shall
prepare and file with the Commission a Registration Statement covering the
resale of all Registrable Securities for an offering to be made on a continuous
basis pursuant to Rule 415. Each Registration Statement shall be on Form S-1
(except if the Company is eligible to register for resale the Registrable
Securities on Form S-3, in which case such registration may be on Form S-3) and
shall contain the "Plan of Distribution" attached hereto as EXHIBIT B or such
other "Plan of Distribution" language approved by Holders. The Company shall
cause such Registration Statement to remain effective as provided herein. The
Company shall use commercially reasonable efforts to file the initial
Registration Statement as soon as practicable after the Closing Date, and will
use its best efforts to cause each Registration Statement to be declared
effective under the Securities Act on or before the Effectiveness Date, and
shall use its best efforts to keep each Registration Statement continuously
effective under the Securities Act until the date which is two (2) years after
the date that such Registration Statement is declared effective by the
Commission or such earlier date when all Registrable Securities covered by such
Registration Statement have been sold or may be sold without volume restrictions
pursuant to Rule 144(k) as determined by the counsel to the Company pursuant to
a written opinion letter to such effect, addressed and reasonably acceptable to
the Company's transfer agent and the affected Holders (the "Effectiveness
Period").

                  (b) If any Registration Statement shall not be declared
effective by the Commission on or prior to the applicable Effectiveness Date (an
"Event", and the date being the "Event Date") then, in addition to any other
rights available to the Holders: (x) on each Event Date, the Company shall pay
to each Holder an amount in cash, as liquidated damages and not as a

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penalty, equal to 1% of the aggregate purchase price paid by such Holder
pursuant to the Purchase Agreement; and (y) on each monthly anniversary of each
such Event Date thereof (if the applicable Event shall not have been cured by
such date) until the applicable Event is cured, the Company shall pay to each
Holder an amount in cash, as liquidated damages and not as a penalty, equal to
1% of the aggregate purchase price paid by such Holder pursuant to the Purchase
Agreement. If the Company fails to pay any liquidated damages pursuant to this
Section in full within seven (7) days after the date payable, the Company will
pay interest thereon at a rate of 18% per annum (or such lesser maximum amount
that is permitted to be paid by applicable law) to the Holder, accruing daily
from the date such liquidated damages are due until such amounts, plus all such
interest thereon, are paid in full.

         2.2 Additional Registration Statements. If the number of Registrable
Securities at any time after the Effectiveness Date exceeds 85% of the number of
shares of Common Stock then registered in a Registration Statement, then the
Company shall file an additional Registration Statement covering the resale of
such additional shares or Registrable Securities (as applicable) in accordance
with this Agreement.

3. Registration Procedures.

         3.1 Obligations of the Company. In connection with the Company's
registration obligations hereunder, the Company shall:

                  (a) Furnish to the Holders prior to the filing of the
Registration Statement copies of those portions of the Registration Statement
which refer to the Holder;

                  (b) Prepare and file with the Commission such amendments,
including post-effective amendments, to the Registration Statement and the
Prospectus used in connection therewith as may be necessary to keep the
Registration Statement continuously effective as to the applicable Registrable
Securities for the Effectiveness Period and prepare and file with the Commission
such additional Registration Statements in order to register for resale under
the Securities Act all of the Registrable Securities;

                  (c) Cause the related Prospectus to be amended or supplemented
by any required Prospectus supplement, and as so supplemented or amended to be
filed pursuant to Rule 424;

                  (d) Respond to any comments received from the Commission with
respect to the Registration Statement or any amendment thereto;

                  (e) Notify the Holders of Registrable Securities to be sold
(i) with respect to the Registration Statement or any post-effective amendment,
when the same has become effective; (ii) of the issuance by the Commission of
any stop order suspending the effectiveness of the Registration Statement
covering any or all of the Registrable Securities; and (iii) of the receipt by
the Company of any notification with respect to the suspension of the
qualification or exemption from qualification of any of the Registrable
Securities for sale in any jurisdiction;

                  (f) Use its commercially reasonable best efforts to avoid the
issuance of, or, if issued, obtain the withdrawal of (i) any order suspending
the effectiveness of the Registration Statement or (ii) any suspension of the
qualification (or exemption from qualification) of any of the Registrable
Securities for sale in any jurisdiction, at the earliest practicable moment;

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                  (g) Furnish to each Holder, without charge, at least one (1)
conformed copy of each Registration Statement and each amendment thereto,
including financial statements and schedules, all documents incorporated or
deemed to be incorporated therein by reference, and all exhibits to the extent
requested by such Person (including those previously furnished or incorporated
by reference) promptly after the filing of such documents with the Commission;

                  (h) Promptly deliver to each Holder, without charge, as many
copies of the Prospectus or Prospectuses (including each form of prospectus) and
each amendment or supplement thereto as such Persons may reasonably request;

                  (i) Prior to any public offering of Registrable Securities,
use its best efforts to register or qualify or cooperate with the selling
Holders in connection with the registration or qualification (or exemption from
such registration or qualification) of such Registrable Securities for offer and
sale under the securities or Blue Sky laws of such jurisdictions within the
United States as any Holder requests in writing, to keep each such registration
or qualification (or exemption therefrom) effective during the Effectiveness
Period and to do other acts or things necessary or advisable to enable the
disposition in such jurisdictions of the Registrable Securities covered by a
Registration Statement; provided, that the Company shall not be required to
qualify generally to do business in any jurisdiction where it is not then so
qualified or subject the Company to any material tax in any such jurisdiction
where it is not then so subject; and

                  (j) Cooperate with the Holders to facilitate the timely
preparation and delivery of certificates representing Registrable Securities to
be delivered to a transferee pursuant to a Registration Statement.

         3.2 Obligations of the Holders. The Company may require each selling
Holder to furnish to the Company a certified statement as to the number of
shares of Common Stock beneficially owned by such Holder and, if requested by
the Commission, the controlling person thereof.

4. Registration Expenses. All fees and expenses incident to the performance of
or compliance with this Agreement by the Company shall be borne by the Company
whether or not any Registrable Securities are sold pursuant to the Registration
Statement.

5. Indemnification

         5.1 Indemnification by the Company. The Company shall, notwithstanding
any termination of this Agreement, indemnify and hold harmless each Holder, the
officers, directors, agents, brokers, investment advisors and employees of each
of them, each Person who controls any such Holder (within the meaning of Section
15 of the Securities Act or Section 20 of the Exchange Act) and the officers,
directors, agents and employees of each such controlling Person, from and
against any and all losses, claims, damages, liabilities, costs (including,
without limitation, reasonable costs of preparation and reasonable attorneys
fees) and expenses (collectively, "Losses"), arising out of or relating to any
untrue statement of a material fact contained in the Registration Statement, any
Prospectus or any form of prospectus or in any amendment or supplement thereto,
or arising out of or relating to any omission or alleged omission of a material
fact required to be stated therein or necessary to make the statements

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therein (in the case of any Prospectus or form of prospectus or supplement
thereto, in light of the circumstances under which they were made) not
misleading, except to the extent that (i) such untrue statements or omissions
are based upon information regarding such Holder furnished to the Company by
such Holder, or to the extent that such information relates to such Holder or
such Holder's proposed method of distribution of Registrable Securities and
approved by such Holder for use in the Registration Statement, such Prospectus
or such form of Prospectus or in any amendment or supplement thereto (it being
understood that the Holder has approved Exhibit B hereto for this purpose) or
(ii) the use by such Holder of an outdated or defective Prospectus after the
Company has notified such Holder in writing that the Prospectus is outdated or
defective.

         5.2 Indemnification by the Holders. Each Holder shall, severally and
not jointly, indemnify and hold harmless the Company, its directors, officers,
agents and employees, each Person who controls the Company (within the meaning
of Section 15 of the Securities Act and Section 20 of the Exchange Act), and the
directors, officers, agents or employees of such controlling Persons, to the
fullest extent permitted by applicable law, from and against all Losses, as
incurred, arising out of or based upon: (i) such Holder's failure to comply with
the prospectus delivery requirements of the Securities Act or (ii) any untrue
statement of a material fact contained in any Registration Statement, any
Prospectus or any form of prospectus, or in any amendment or supplement thereto,
or arising out of or based upon any omission of a material fact required to be
stated therein or necessary to make the statements therein not misleading to the
extent, but only to the extent, that such untrue statement or omission is
contained in any information so furnished by such Holder to the Company or to
the extent that (A) such untrue statements or omissions are based upon
information regarding such Holder furnished in writing to the Company by such
Holder, or to the extent that such information relates to such Holder or such
Holder's proposed method of distribution of Registrable Securities and was
reviewed and approved by such Holder for use in the Registration Statement (it
being understood that the Holder has approved Exhibit B hereto for this
purpose), such Prospectus or such form of Prospectus or in any amendment or
supplement thereto or (B) the use by such Holder of an outdated or defective
Prospectus after the Company has notified such Holder in writing that the
Prospectus is outdated or defective. In no event shall the liability of any
selling Holder hereunder be greater in amount than the dollar amount of the net
proceeds received by such Holder upon the sale of the Registrable Securities
giving rise to such indemnification obligation.

         5.3 Conduct of Indemnification Proceedings. If any Proceeding shall be
brought or asserted against any Person entitled to indemnity hereunder (an
"Indemnified Party"), such Indemnified Party shall promptly notify the Person
from whom indemnity is sought (the "Indemnifying Party") in writing, and the
Indemnifying Party shall assume the defense thereof, including the employment of
counsel reasonably satisfactory to the Indemnified Party and the payment of all
fees and expenses incurred in connection with defense thereof; provided, that
the failure of any Indemnified Party to give such notice shall not relieve the
Indemnifying Party of its obligations or liabilities pursuant to this Agreement,
except (and only) to the extent that it shall be finally determined by a court
of competent jurisdiction (which determination is not subject to appeal or
further review) that such failure shall have proximately and materially
adversely prejudiced the Indemnifying Party.

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         5.4 Separate Counsel. An Indemnified Party shall have the right to
employ separate counsel in any such Proceeding and to participate in the defense
thereof, but the fees and expenses of such counsel shall be at the expense of
such Indemnified Party or Parties unless: (i) the Indemnifying Party has agreed
in writing to pay such fees and expenses; (ii) the Indemnifying Party shall have
failed promptly to assume the defense of such Proceeding and to employ counsel
reasonably satisfactory to such Indemnified Party in any such Proceeding; or
(iii) the named parties to any such Proceeding (including any impleaded parties)
include both such Indemnified Party and the Indemnifying Party, and such
Indemnified Party shall have been advised by counsel that a conflict of interest
is likely to exist if the same counsel were to represent such Indemnified Party
and the Indemnifying Party (in which case, if such Indemnified Party notifies
the Indemnifying Party in writing that it elects to employ separate counsel at
the expense of the Indemnifying Party, the Indemnifying Party shall not have the
right to assume the defense thereof and such counsel shall be at the expense of
the Indemnifying Party). The Indemnifying Party shall not be liable for any
settlement of any such Proceeding affected without its written consent, which
consent shall not be unreasonably withheld. No Indemnifying Party shall, without
the prior written consent of the Indemnified Party, effect any settlement of any
pending Proceeding in respect of which any Indemnified Party is a party, unless
such settlement includes an unconditional release of such Indemnified Party from
all liability on claims that are the subject matter of such Proceeding.

         5.5 Right of Contribution. If a claim for indemnification under Section
5.1 or 5.2 is unavailable to an Indemnified Party (by reason of public policy or
otherwise), then each Indemnifying Party, in lieu of indemnifying such
Indemnified Party, shall contribute to the amount paid or payable by such
Indemnified Party as a result of such Losses, in such proportion as is
appropriate to reflect the relative fault of the Indemnifying Party and
Indemnified Party in connection with the actions, statements or omissions that
resulted in such Losses as well as any other relevant equitable considerations.
The relative fault of such Indemnifying Party and Indemnified Party shall be
determined by reference to, among other things, whether any action in question,
including any untrue or alleged untrue statement of a material fact or omission
or alleged omission of a material fact, has been taken or made by, or relates to
information supplied by, such Indemnifying Party or Indemnified Party, and the
parties' relative intent, knowledge, access to information and opportunity to
correct or prevent such action, statement or omission. The amount paid or
payable by a party as a result of any Losses shall be deemed to include, subject
to the limitations set forth in Section 5.3, any reasonable attorneys' or other
reasonable fees or expenses incurred by such party in connection with any
Proceeding to the extent such party would have been indemnified for such fees or
expenses if the indemnification provided for in this Section was available to
such party in accordance with its terms. The parties hereto agree that it would
not be just and equitable if contribution pursuant to Section 5.5 were
determined by pro rata allocation or by any other method of allocation that does
not take into account the equitable considerations referred to in such section.

6. Miscellaneous

         6.1 Remedies. In addition to being entitled to exercise all rights
provided herein or granted by law, including recovery of damages, each of the
Holders and the Company will be entitled to specific performance under this
Agreement. Monetary damages may not be adequate compensation for any loss
incurred by reason of any breach of obligations described in the

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foregoing sentence and hereby agrees to waive in any action for specific
performance of any such obligation the defense that a remedy at law would be
adequate. The remedies provided herein are cumulative and not exclusive of any
remedies provided by law.

         6.2 Prospectus Delivery Compliance. Each Holder covenants and agrees
that it will comply with the prospectus delivery requirements of the Securities
Act as applicable to it in connection with sales of Registrable Securities
pursuant to the Registration Statement.

         6.3 Discontinued Disposition. Each Holder agrees by its acquisition of
such Registrable Securities that, upon receipt of a notice from the Company of
the occurrence of any event of the kind described in Section 3.1(f), such Holder
will forthwith discontinue disposition of such Registrable Securities under the
Registration Statement until such Holder's receipt of the copies of the
supplemented Prospectus and/or amended Registration Statement or until it is
advised in writing (the "Advice") by the Company that the use of the applicable
Prospectus may be resumed, and, in either case, has received copies of any
additional or supplemental filings that are incorporated or deemed to be
incorporated by reference in such Prospectus or Registration Statement. The
Company may provide appropriate stop orders to enforce the provisions of this
paragraph.

         6.4 Piggyback Registrations. If at any time during the Effectiveness
Period there is not an effective Registration Statement covering all of the
Registrable Securities and the Company shall determine to prepare and file with
the Commission a registration statement relating to an offering for its own
account or the account of others under the Securities Act of any of its equity
securities, other than on Form S-4 or Form S-8 (each as promulgated under the
Securities Act) or their then equivalents relating to equity securities to be
issued solely in connection with any acquisition of any entity or business or
equity securities issuable in connection with stock option or other employee
benefit plans or pursuant to that certain Registration Rights Agreement dated
December 2, 2002 between the Company and the investors listed therein, then the
Company shall send to each Holder written notice of such determination and, if
within one (1) day after receipt of such notice, any such Holder shall so
request in writing, the Company shall include in such Registration Statement
such Registrable Securities such holder requests to be included, subject to pro
rata underwriter cutbacks applicable to all holders of registrable securities.

         6.5 Amendments; Waivers. No provision of this Agreement may be waived
or amended except in a written instrument signed, in the case of an amendment,
by the Company and each of the Holders or, in the case of a waiver, by the party
against whom enforcement of any such waiver is sought. Notwithstanding the
foregoing, a waiver or consent to depart from the provisions hereof with respect
to a matter that relates exclusively to the rights of certain holders and that
does not directly or indirectly affect the rights of other Holders may be given
by Holders of at least a majority of the Registrable Securities to which such
waiver or consent relates, provided, that the provisions of this sentence may
not be amended, modified, or supplemented except in accordance with the
provisions of the immediately preceding sentence. No waiver of any default with
respect to any provision, condition or requirement of this Agreement shall be
deemed to be a continuing waiver in the future or a waiver of any subsequent
default or a waiver of any other provision, condition or requirement hereof, nor
shall any delay

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or omission of either party to exercise any right hereunder in any manner impair
the exercise of any such right.

         6.6 Notices. Any and all notices or other communications or deliveries
required or permitted to be provided hereunder shall be in writing and shall be
deemed given and effective on the earliest of (i) the date of transmission, if
such notice or communication is delivered via facsimile at the facsimile number
specified in this Agreement prior to 6:30 p.m. (Pacific Standard time) on a
Trading Day; (ii) the next Trading Day after the date of transmission, if such
notice or communication is delivered via facsimile at the facsimile number
specified in this Section on a day that is not a Trading Day or later than 6:30
p.m. (Pacific Standard time) on any Trading Day; (iii) the Trading Day following
the date of mailing, if sent by U.S. nationally recognized overnight courier
service; or (iv) upon actual receipt by the party to whom such notice is
required to be given. The address for such notices and communications shall be
as follows:

       If to the Company:                 SureBeam Corporation
                                          9276 Scranton Road, Suite 600
                                          San Diego, CA 92121
                                          Attn: Chief Financial Officer
                                          Fax No.: (858) 795-6231

       If to a Purchaser :                To the address set forth under such
                                          Purchaser's name on the signature
                                          page to the Purchase Agreement

       If to any other Person who is      To the address of such Holder as it
       then the registered Holder:        appears in the stock transfer books
                                          of the Company

or such other address as may be designated in writing hereafter, in the same
manner, by such Person.

         6.7 Successors and Assigns. This Agreement shall be binding upon and
inure to the benefit of the parties and their successors and permitted assigns.
The Company may not assign this Agreement or any rights or obligations hereunder
without the prior written consent of the Holders. Each Purchaser or Holder may
assign its respective rights hereunder in the manner and to the Persons, as
permitted under the Purchase Agreement.

         6.8 Execution. This Agreement may be executed in counterparts, all of
which when taken together shall be considered one and the same agreement and
shall become effective when counterparts have been signed by each party and
delivered to the other party, it being understood that both parties need not
sign the same counterpart. In the event that any signature is delivered by
facsimile transmission, such signature shall create a valid and binding
obligation of the party executing (or on whose behalf such signature is
executed) with the same force and effect as if such facsimile signature page
were an original thereof

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         6.9 Governing Law. All questions concerning the construction, validity,
enforcement and interpretation of this Agreement shall be governed by and
construed and enforced in accordance with the internal laws of the State of
California, without regard to the principles of conflicts of law thereof. All
legal proceedings concerning the interpretations, enforcement and defense of the
transactions contemplated by this Agreement (whether brought against a party
hereto or its respective affiliates, directors, officers, shareholders,
employees or agents) shall be commenced exclusively in the state and federal
courts sitting in the City of San Diego, California. Each party hereto hereby
irrevocably submits to the exclusive jurisdiction of the state and federal
courts sitting in the City of San Diego, California for the adjudication of any
dispute hereunder or in connection herewith or with any transaction contemplated
hereby or discussed herein (including with respect to the enforcement of the any
of the Transaction Documents), 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 improper. Each party hereto (including its affiliates, agents,
officers, directors and employees) hereby irrevocably waives, to the fullest
extent permitted by applicable law, any and all right to trial by jury in any
legal proceeding arising out of or relating to this Agreement or the
transactions contemplated hereby. If either party shall commence an action or
proceeding to enforce any provisions of this Agreement, then the prevailing
party in such action or proceeding shall be reimbursed by the other party for
its attorneys fees and other costs and expenses incurred with the investigation,
preparation and prosecution of such action or proceeding.

         6.10 Severability. If any provision of this Agreement is held to be
invalid or unenforceable in any respect, the validity and enforceability of the
remaining terms and provisions of this Agreement shall not in any way be
affected or impaired thereby and the parties will attempt to agree upon a valid
and enforceable provision that is a reasonable substitute therefor, and upon so
agreeing, shall incorporate such substitute provision in this Agreement.

         6.11 Construction. The headings herein are for convenience only, do not
constitute a part of this Agreement and shall not be deemed to limit or affect
any of the provisions hereof. 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. This Agreement
shall be construed as if drafted jointly by the parties, and no presumption or
burden of proof shall arise favoring or disfavoring any party by virtue of the
authorship of any provisions of this Agreement.

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                           SIGNATURE PAGES TO FOLLOW]

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         IN WITNESS WHEREOF, the parties have executed this Registration Rights
Agreement as of the date first written above.

                                      SUREBEAM CORPORATION

                                       By:
                                              ----------------------------------
                                       Name:
                                              ----------------------------------
                                       Title:
                                              ----------------------------------

                   [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK

                    SIGNATURE PAGES OF PURCHASERS TO FOLLOW]

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                                    EXHIBIT A

      IN WITNESS WHEREOF, the parties have executed this Registration Rights
Agreement as of the date first written above.

                                       RAM TRADING LTD.

                                       By:
                                              ----------------------------------
                                       Name:
                                              ----------------------------------
                                       Title:
                                              ----------------------------------

                                       RAM TRADING LTD.

                                       By:
                                              ----------------------------------
                                       Name:
                                              ----------------------------------
                                       Title:
                                              ----------------------------------

                                    EXHIBIT A
<PAGE>
      IN WITNESS WHEREOF, the parties have executed this Registration Rights
Agreement as of the date first written above.

                                     FLYLINE HOLDINGS LTD.

                                     By:
                                              ----------------------------------
                                     Name:
                                              ----------------------------------
                                     Title:
                                              ----------------------------------

                                    EXHIBIT A
<PAGE>
      IN WITNESS WHEREOF, the parties have executed this Registration Rights
Agreement as of the date first written above.

                                    DURANGO INVESTMENTS, LP

                                    By:
                                              ----------------------------------
                                    Name:
                                              ----------------------------------
                                    Title:
                                              ----------------------------------

                                    EXHIBIT A
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                                    EXHIBIT A

                                   DEFINITIONS

         "Effectiveness Date" means, with respect to the initial Registration
Statement required to be filed hereunder, the date which is six months after the
Closing Date.

         "Effectiveness Period" shall have the meaning set forth in Section 2.1.

         "Filing Date" means, with respect to the initial Registration Statement
required to be filed hereunder, the day on which such Registration Statement is
filed, and, with respect to any additional Registration Statements that may be
required pursuant to Section 2.2, the 30th day following the date on which the
Company first knows, or reasonably should have known that such additional
Registration Statement is required under such Section.

         "Holder" or "Holders" means the holder or holders, as the case may be,
from time to time of Registrable Securities.

         "Indemnified Party" shall have the meaning set forth in Section 5.3.

         "Indemnifying Party" shall have the meaning set forth in Section 5.3.

         "Losses" shall have the meaning set forth in Section 5.1.

         "New Warrants" shall have the meaning set forth in the Warrant.

         "Prospectus" means the prospectus included in a Registration Statement
(including, without limitation, a prospectus that includes any information
previously omitted from a prospectus filed as part of an effective registration
statement in reliance upon Rule 430A promulgated under the Securities Act), as
amended or supplemented by any prospectus supplement, with respect to the terms
of the offering of any portion of the Registrable Securities covered by the
Registration Statement, and all other amendments and supplements to the
Prospectus, including post-effective amendments, and all material incorporated
by reference or deemed to be incorporated by reference in such Prospectus.

         "Registrable Securities" means the Shares.

         "Registration Statement" means the registration statement required to
be filed hereunder including the Prospectus, amendments and supplements to such
registration statement or Prospectus, including pre- and post-effective
amendments, all exhibits thereto, and all material incorporated by reference or
deemed to be incorporated by reference in such registration statement.

         "Rule 144" means Rule 144 promulgated by the Commission pursuant to the
Securities Act, as such Rule may he amended from time to time, or any similar
rule or regulation hereafter adopted by the Commission having substantially the
same effect as such Rule.

                                    EXHIBIT A
<PAGE>
         "Rule 415" means Rule 415 promulgated by the Commission pursuant to the
Securities Act, as such Rule may be amended from time to time, or any similar
rule or regulation hereafter adopted by the Commission having substantially the
same effect as such Rule.

         "Rule 424" means Rule 424 promulgated by the Commission pursuant to the
Securities Act, as such Rule may be amended from time to time, or any similar
rule or regulation hereafter adopted by the Commission having substantially the
same effect as such Rule.

         "Shares" means the shares of Common Stock issued to Purchaser upon
exercise of the Warrant and conversion of Convertible Preferred Stock of the
Company, $.001 par value issued to the Purchasers pursuant to the Purchase
Agreement.

         "Warrant" means (i) the Warrant issued under the Purchase Agreement,
and (ii) the New Warrants.

                                    EXHIBIT A
<PAGE>
                                    EXHIBIT B

                              PLAN OF DISTRIBUTION

         The common stock covered by this prospectus may be offered and sold at
various times by the selling stockholders. As used herein, "selling
stockholders" includes the selling stockholders named in the table above and
pledgees, donees, transferees or other successors-in-interest selling shares
received from a named selling stockholder as a gift, partnership distribution or
other non-sale-related transfer after the date of this prospectus. The selling
stockholders will act independently of us in making decisions with respect to
the timing, manner and size of each sale. The common stock may be sold by or for
the account of the selling stockholders in transactions on the Nasdaq National
Market, the over-the-counter market, or otherwise. The sales may be made at
fixed prices, at market prices prevailing at the time, or at privately
negotiated prices. The selling stockholders may sell the common stock by means
of one or more of the following methods:

-     ordinary brokerage transactions and transactions in which the
      broker-dealer solicits purchasers;

-     a block trade in which the broker-dealer so engaged will attempt to sell
      the common stock as agent, but may position and resell a portion of the
      block as a principal to facilitate the transaction;

-     purchases by brokers, dealers or underwriters as principal and resale
      by those purchasers for their own accounts under this prospectus;

-     an exchange distribution in accordance with the rules of the applicable
      exchange;

-     privately negotiated transactions;

-     short sales;

-     in connection with the writing of non-traded and exchanged-traded call
      options, in hedge transactions and in settlement of other transactions
      in standardized or over-the-counter option;

-     a combination of any such methods of sale; and

-     any other method permitted pursuant to applicable law.

         The Selling Stockholders may also sell shares under Rule 144 under the
Securities Act, if available, rather than under this prospectus.

         In effecting sales, brokers or dealers engaged by the selling
stockholders may arrange for other brokers or dealers to participate in the
resales. Brokers, dealers or agents may receive compensation in the form of
discounts, concessions or commissions from the selling stockholders or from the
purchasers, or from both. The selling stockholders do not expect these

                                    EXHIBIT B
<PAGE>
discounts, concessions or commissions to exceed what is customary in the
applicable types of transactions.

         The selling stockholders and any participating brokers or dealers may
be deemed to be "underwriters" within the meaning of the Securities Act in
connection with such sales. In such event, any commission, discount or
concession these "underwriters" receive may be deemed to be underwriting
compensation. In addition, because selling stockholders may be deemed to be
"underwriters" within the meaning of Section 2(11) of the Securities Act, the
selling stockholders will be subject to the prospectus delivery requirements of
the Securities Act. In addition, any shares of a selling stockholder covered by
this prospectus which qualify for sale pursuant to Rule 144 promulgated under
the Securities Act may be sold under Rule 144 rather than pursuant to this
prospectus. The selling stockholders informed us that they do not have any
agreement or understanding, directly or indirectly, with any person to
distribute the common stock.

         The selling stockholders have been advised that while they are engaged
in a distribution of the common stock included in this prospectus, they may be
required to comply with the anti-manipulative provisions of Regulation M as
promulgated under the Securities Exchange Act of 1934, as amended (the "Exchange
Act"). With certain exceptions, Regulation M precludes the selling stockholders,
any affiliated purchasers, and any broker-dealer or other person who
participates in such distribution from bidding for or purchasing, or attempting
to induce any person to bid for or purchase any security which is the subject of
the distribution until the entire distribution is complete. Regulation M also
prohibits any bids or purchases made in order to stabilize the price of a
security in connection with the distribution of that security. Regulation M's
prohibition on purchases may include purchases to cover short positions by the
selling stockholders, and a selling stockholder's failure to cover a short
position at a lender's request and subsequent purchases of shares by the lender
in the open market to cover such short positions, may constitute an inducement
to buy shares which is prohibited by Regulation M. Broker-dealers engaged by the
Selling Stockholders ay arrange for other broker-dealers to participate in
sales. Broker-dealers may receive commissions or discounts from the Selling
Stockholders (or, if any broker-dealer acts as agent for Purchaser of shares,
from Purchaser ) in amounts to be negotiated. The Selling Stockholders do not
expect these commissions and discounts to exceed what is customary in the types
of transactions involved.

         The selling stockholder may from time to time pledge or grant a
security interest in some or all of the Shares or Common Stock or Warrant owned
by them and, if they default in the performance of their secured obligations,
the pledgees or secured parties may offer and sell the shares of Common Stock
from time to time under this prospectus, or under an amendment to this
prospectus under Rule 424(b)(3) or other applicable provision of the Securities
Act of 1933 amending the list of selling stockholders to include the pledgee,
transferee or other successors in interest as selling stockholder under this
prospectus.

         The selling stockholders also may transfer the shares of Common Stock
in other circumstances, in which case the transferees, pledgees or other
successors in interest will be the selling beneficial owners for purposes of
this prospectus.

                                    EXHIBIT B
<PAGE>
         The selling stockholders and any broker-dealers or agents that are
involved in selling the shares may be deemed to be "underwriters" within the
meaning of the Securities Act in connection with such sales. In such event, any
commissions received by such broker-dealers or agents and any profit on the
resale of the shares purchased by them may be deemed to be underwriting
commissions or discounts under the Securities Act. The Selling Stockholders have
informed the Company that it does not have any agreement or understanding,
directly or indirectly, with any person to distribute the Common Stock.

         The Company is required to pay all fees and expenses incident to the
registration of the shares. The Company has agreed to indemnify the Selling
Stockholders against certain losses, claims, damages and liabilities, including
liabilities under the Securities Act.

                                    EXHIBIT B<PAGE>

                                                                     Exhibit 4.3

NEITHER THESE SECURITIES NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE
EXERCISABLE HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR
THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM
REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES
ACT"), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN
EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN
AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE
SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO
SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE
COMPANY.

                              SUREBEAM CORPORATION

                                     WARRANT

Warrant No. 2003-__               Date of Original Issuance: October 23, 2003

         SureBeam Corporation, a Delaware corporation (the "Company"), hereby
certifies that, for value received, __________________________ or its registered
assigns (the "Holder"), is entitled to purchase from the Company up to a total
of _______1 shares of Class A common stock, $.001 par value (the "Common
Stock"), of the Company (each such share, a "Warrant Share" and all such shares,
the "Warrant Shares") at an exercise price equal to $1.00 (as adjusted from time
to time as provided in SECTION 9, the "Exercise Price"), at any time and from
time to time from and after 90 days after the date hereof and through and
including October 23, 2008 (the "Expiration Date"), and subject to the following
terms and conditions.

         1. Definitions. In addition to the terms defined elsewhere in this
Warrant, capitalized terms that are not otherwise defined herein shall have the
meanings given to such terms in the Securities Purchase Agreement, of even date
herewith to which the Company and the original Holder are parties (the "Purchase
Agreement").

         2. Registration of Warrant. The Company shall register this Warrant,
upon records to be maintained by the Company for that purpose (the "Warrant
Register"), in the name of the record Holder hereof from time to time. The
Company may deem and treat the registered Holder of this Warrant as the absolute
owner hereof for the purpose of any exercise hereof or any distribution to the
Holder, and for all other purposes, absent actual notice to the contrary.

         3. Registration of Transfers. The Company shall register the transfer
of any portion of this Warrant in the Warrant Register, upon surrender of this
Warrant, with the Form of Assignment attached hereto duly completed and signed,
to the Company at its address specified herein. Upon any such registration or
transfer, a new Warrant to purchase Common Stock, in

--------
(1) Number of shares equal to 50% of the shares of Common Stock available upon
conversion of the Series A Convertible Preferred Stock to be issued to the
original Holder at the Closing under the Purchase Agreement.

                                       1
<PAGE>
substantially the form of this Warrant (any such new Warrant, a "New Warrant"),
evidencing the portion of this Warrant so transferred shall be issued to the
transferee and a New Warrant evidencing the remaining portion of this Warrant
not so transferred, if any, shall be issued to the transferring Holder. The
acceptance of the New Warrant by the transferee thereof shall be deemed the
acceptance by such transferee of all of the rights and obligations of a holder
of a Warrant.

         4. Exercise and Duration of Warrants. This Warrant shall be exercisable
by the registered Holder at any time and from time to time on or after the date
hereof to and including the Expiration Date. At 6:30 p.m., Pacific Standard Time
on the Expiration Date, the portion of this Warrant not exercised prior thereto
shall be and become void and of no value.

         5. Delivery of Warrant Shares. To effect conversions hereunder, the
Holder shall not be required to physically surrender this Warrant unless the
aggregate Warrant Shares represented by this Warrant is being exercised. Upon
delivery of the Form of Election to Purchase to the Company (with the attached
Warrant Shares Exercise Log) at its address for notice set forth in SECTION 13
and upon payment of the Exercise Price multiplied by the number of Warrant
Shares that the Holder intends to purchase hereunder, the Company shall promptly
(but in no event later than three Trading Days after the Date of Exercise (as
defined herein)) issue and deliver to the Holder, a certificate for the Warrant
Shares issuable upon such exercise. The Company shall, upon request of the
Holder and subsequent to the date on which a registration statement covering the
resale of the Warrant Shares has been declared effective by the Securities and
Exchange Commission, use its best efforts to deliver Warrant Shares hereunder
electronically through the Depository Trust Corporation or another established
clearing corporation performing similar functions, if available, provided, that,
the Company may, but will not be required to change its transfer agent if its
current transfer agent cannot deliver Warrant Shares electronically through the
Depository Trust Corporation. A "Date of Exercise" means the date on which the
Company shall have received (or be deemed to have received pursuant to the terms
hereof) from the Holder: (i) the Form of Election to Purchase attached hereto
(with the Warrant Exercise Log attached to it), appropriately completed and duly
signed and (ii) payment of the Exercise Price for the number of Warrant Shares
so indicated by the Holder to be purchased.

         6. Charges, Taxes and Expenses. Issuance and delivery of certificates
for shares of Common Stock upon exercise of this Warrant shall be made without
charge to the Holder for any issue or transfer agent fee in respect of the
issuance of such certificates, all of which taxes and expenses shall be paid by
the Company; provided, however, that the Company shall not be required to pay
any tax which may be payable in respect of any transfer involved in the
registration of any certificates for Warrant Shares or Warrants in a name other
than that of the Holder. The Holder shall be responsible for all other tax
liability that may arise as a result of holding or transferring this Warrant or
receiving Warrant Shares upon exercise hereof.

         7. Replacement of Warrant. If this Warrant is mutilated, lost, stolen
or destroyed, the Company shall issue or cause to be issued in exchange and
substitution for and upon cancellation hereof, or in lieu of and substitution
for this Warrant, a New Warrant, but only upon receipt of evidence reasonably
satisfactory to the Company of such loss, theft or destruction and customary and
reasonable indemnity, which shall include a surety bond, if requested.
Applicants

                                       2
<PAGE>
for a New Warrant under such circumstances shall also comply with such other
reasonable regulations and procedures and pay such other reasonable third-party
costs as the Company may prescribe.

         8. Reservation of Warrant Shares. The Company covenants that it will at
all times reserve and keep available out of the aggregate of its authorized but
unissued and otherwise unreserved Common Stock, solely for the purpose of
enabling it to issue Warrant Shares upon exercise of this Warrant as herein
provided, the number of Warrant Shares which are then issuable and deliverable
upon the exercise of this entire Warrant, free from preemptive rights or any
other contingent purchase rights of persons other than the Holder (taking into
account the adjustments and restrictions of SECTION 9). The Company covenants
that all Warrant Shares so issuable and deliverable shall, upon issuance and the
payment of the applicable Exercise Price in accordance with the terms hereof, be
duly and validly authorized, issued and fully paid and nonassessable.

         9. Certain Adjustments. The Exercise Price and number of Warrant Shares
issuable upon exercise of this Warrant are subject to adjustment from time to
time as set forth in this SECTION 9.

                  (a) Stock Dividends and Splits. If the Company, at any time
while this Warrant is outstanding, (i) pays a stock dividend on its Common Stock
or otherwise makes a distribution on any class of capital stock that is payable
in shares of Common Stock, (ii) subdivides outstanding shares of Common Stock
into a larger number of shares, or (iii) combines outstanding shares of Common
Stock into a smaller number of shares, then in each such case the Exercise Price
shall be multiplied by a fraction of which the numerator shall be the number of
shares of Common Stock outstanding immediately before such event and of which
the denominator shall be the number of shares of Common Stock outstanding
immediately after such event. Any adjustment made pursuant to clause (i) of this
paragraph shall become effective immediately after the record date for the
determination of stockholders entitled to receive such dividend or distribution,
and any adjustment pursuant to clause (ii) or (iii) of this paragraph shall
become effective immediately after the effective date of such subdivision or
combination. If any event requiring an adjustment under this paragraph occurs
during the period that an Exercise Price is calculated hereunder, then the
calculation of such Exercise Price shall be adjusted appropriately to reflect
such event.

                  (b) Fundamental Transactions. If, at any time while this
Warrant is outstanding, (i) the Company effects any merger or consolidation of
the Company with or into another Person; (ii) the Company effects any sale of
all or substantially all of its assets in one or a series of related
transactions; (iii) any tender offer or exchange offer (whether by the Company
or another Person) is completed pursuant to which holders of Common Stock are
permitted to tender or exchange their shares for other securities, cash or
property; or (iv) the Company effects any reclassification of the Common Stock
or any compulsory share exchange pursuant to which the Common Stock is
effectively converted into or exchanged for other securities, cash or property
(in any such case, a "Fundamental Transaction"), then the Holder shall have the
right thereafter to receive, upon exercise of this Warrant, the same amount and
kind of securities, cash or property as it would have been entitled to receive
upon the occurrence of such Fundamental Transaction if it had been, immediately
prior to such Fundamental Transaction, the holder of the

                                       3
<PAGE>
number of Warrant Shares then issuable upon exercise in full of this Warrant
(the "Alternate Consideration"). If holders of Common Stock are given any choice
as to the securities, cash or property to be received in a Fundamental
Transaction, then the Holder shall be given the same choice as to the Alternate
Consideration it receives upon any exercise of this Warrant following such
Fundamental Transaction.

                  (c) Number of Warrant Shares. Simultaneously with any
adjustment to the Exercise Price pursuant to paragraphs (a) or (b) of this
Section, the number of Warrant Shares that may be purchased upon exercise of
this Warrant shall be increased or decreased proportionately, so that after such
adjustment the aggregate Exercise Price payable hereunder for the adjusted
number of Warrant Shares shall be the same as the aggregate Exercise Price in
effect immediately prior to such adjustment.

                  (d) Calculations. All calculations under this SECTION 9 shall
be made to the nearest cent or the nearest 1/100th of a share, as applicable.
The number of shares of Common Stock outstanding at any given time shall not
include shares owned or held by or for the account of the Company, and the
disposition of any such shares shall be considered an issue or sale of Common
Stock.

                  (e) Notice of Adjustments. Upon the occurrence of each
adjustment pursuant to this SECTION 9, the Company at its expense will compute
such adjustment in accordance with the terms of this Warrant and prepare a
certificate setting forth such adjustment, including a statement of the adjusted
Exercise Price and adjusted number or type of Warrant Shares or other securities
issuable upon exercise of this Warrant (as applicable), describing the
transactions giving rise to such adjustments and showing in detail the facts
upon which such adjustment is based. Upon written request, the Company will
promptly deliver a copy of each such certificate to the Holder and to the
Company's Transfer Agent.

                  (f) Payment of Exercise Price. The Holder shall pay the
Exercise Price by delivery of immediately available funds to the Company.

         10. Limitation on Exercise.

                  (a) Notwithstanding anything to the contrary contained herein,
the number of shares of Common Stock that may be acquired by the Holder upon any
exercise of this Warrant (or otherwise in respect hereof) shall be limited to
the extent necessary to insure that, following such exercise (or other
issuance), the total number of shares of Common Stock then beneficially owned by
such Holder and its Affiliates and any other Persons whose beneficial ownership
of Common Stock would be aggregated with the Holder's for purposes of Section
13(d) of the Exchange Act, does not exceed 4.999% of the total number of issued
and outstanding shares of Common Stock (including for such purpose the shares of
Common Stock issuable upon such exercise). For such purposes, beneficial
ownership shall be determined in accordance with Section 13(d) of the Exchange
Act and the rules and regulations promulgated thereunder. Each delivery of an
Exercise Notice hereunder will constitute a representation by the Holder that it
has evaluated the limitation set forth in this paragraph and determined that
issuance of the full number of Warrant Shares requested in such Exercise Notice
is permitted under this paragraph. By written notice to the Company, the Holder
may waive the provisions of this Section but

                                       4
<PAGE>
(i) any such waiver will not be effective until the 61st day after such notice
is delivered to the Company, and (ii) any such waiver will apply only to the
Holder and not to any other holder of Warrants.

                  (b) Notwithstanding anything to the contrary contained herein,
the number of shares of Common Stock that may be acquired by the Holder upon any
exercise of this Warrant (or otherwise in respect hereof) shall be limited to
the extent necessary to insure that, following such exercise (or other
issuance), the total number of shares of Common Stock then beneficially owned by
such Holder and its Affiliates and any other Persons whose beneficial ownership
of Common Stock would be aggregated with the Holder's for purposes of Section
13(d) of the Exchange Act, does not exceed 9.999% of the total number of issued
and outstanding shares of Common Stock (including for such purpose the shares of
Common Stock issuable upon such exercise). For such purposes, beneficial
ownership shall be determined in accordance with Section 13(d) of the Exchange
Act and the rules and regulations promulgated thereunder. Each delivery of an
Exercise Notice hereunder will constitute a representation by the Holder that it
has evaluated the limitation set forth in this paragraph and determined that
issuance of the full number of Warrant Shares requested in such Exercise Notice
is permitted under this paragraph. This provision shall not restrict the number
of shares of Common Stock which a Holder may receive or beneficially own in
order to determine the amount of securities or other consideration that such
Holder may receive in the event of a merger or other business combination or
reclassification involving the Company as contemplated in SECTION 9 of this
Warrant.

                  (c) If the Company has not obtained the Shareholder Approval
(as defined below), then the Company may not issue shares of Common Stock upon
exercise of the Warrants (as defined in the Purchase Agreement) (such number of
shares of Common Stock, the "Issuable Maximum") such that the aggregate number
of shares of Common Stock to be issued pursuant to the Purchase Agreement
together with shares to be issued in any other transaction which may be deemed
by NASDAQ to be a single "transaction" under Marketplace Rule 4350(i) would be
in excess of 19.9% of the issued and outstanding shares of Common Stock
immediately prior to the Closing (as defined in the Purchase Agreement). If on
any Date of Exercise: (A) the aggregate number of shares of Common Stock that
would then be issuable upon exercise in full of this Warrant would exceed the
Issuable Maximum, and (B) the Company shall not have previously obtained the
vote of shareholders (the "Shareholder Approval"), if any, as may be required by
the applicable rules and regulations of the NASDAQ (or any successor entity)
applicable to approve the issuance of shares of Common Stock in excess of the
Issuable Maximum pursuant to the terms hereof, then the Company shall issue to
the Holder up to the number of shares of Common Stock available within the
Issuable Maximum and, with respect to the remainder of the Warrant Shares then
issuable under the Warrant for which an exercise in accordance with the
applicable exercise price would result in an issuance of shares of Common Stock
in excess of the Issuable Maximum (the "Excess Warrant Shares"), the Holder
shall have the option to require the Company to use its best efforts to obtain
the Shareholder Approval applicable to such issuance as soon as is possible. The
Company and the Holder understand and agree that shares of Common Stock issued
to and then held by the Holder as a result of exercise of this Warrant shall not
be entitled to cast votes on any resolution to obtain Shareholder Approval
pursuant hereto. If the Company shall succeed in obtaining the Shareholder
Approval, the Excess Warrant Shares shall again become fully exercisable by the
Holder.

                                       5
<PAGE>
         11. No Fractional Shares. No fractional shares of Warrant Shares will
be issued in connection with any exercise of this Warrant. In lieu of any
fractional shares which would, otherwise be issuable, the Company shall pay cash
equal to the product of such fraction multiplied by the closing price of one
Warrant Share as reported on the Nasdaq National Market on the date of exercise.

         12. Notices. Any and all notices or other communications or deliveries
hereunder (including without limitation any Exercise Notice) shall be in writing
and shall be deemed given and effective on the earliest of (i) the date of
transmission, if such notice or communication is delivered via facsimile at the
facsimile number specified in this Section prior to 6:30 p.m. (Pacific Standard
Time) on a Trading Day, (ii) the next Trading Day after the date of
transmission, if such notice or communication is delivered via facsimile at the
facsimile number specified in this Section on a day that is not a Trading Day or
later than 6:30 p.m. (Pacific Standard Time) on any Trading Day, (iii) the
Trading Day following the date of mailing, if sent by nationally recognized
overnight courier service, or (iv) upon actual receipt by the party to whom such
notice is required to be given. The addresses for such communications shall be:
(i) if to the Company, to SureBeam Corporation, Facsimile No.: (858) 795-6231,
Attn: Chief Financial Officer, or (ii) if to the Holder, to the address or
facsimile number appearing on the Warrant Register or such other address or
facsimile number as the Holder may provide to the Company in accordance with
this Section.

         13. Warrant Agent. The Company shall serve as warrant agent under this
Warrant. Upon 30 days notice to the Holder, the Company may appoint a new
warrant agent. Any corporation into which the Company or any new warrant agent
may be merged or any corporation resulting from any consolidation to which the
Company or any new warrant agent shall be a party or any corporation to which
the Company or any new warrant agent transfers substantially all of its
corporate trust or shareholders services business shall be a successor warrant
agent under this Warrant without any further act. Any such successor warrant
agent shall promptly cause notice of its succession as warrant agent to be
mailed (by first class mail, postage prepaid) to the Holder at the Holder's last
address as shown on the Warrant Register.

         14. Miscellaneous.

                  (a) This Warrant shall be binding on and inure to the benefit
of the parties hereto and their respective successors and assigns. Subject to
the preceding sentence, nothing in this Warrant shall be construed to give to
any Person other than the Company and the Holder any legal or equitable right,
remedy or cause of action under this Warrant. This Warrant may be amended only
in writing signed by the Company and the Holder and their successors and
assigns.

                  (b) All questions concerning the construction, validity,
enforcement and interpretation of this Warrant shall be governed by and
construed and enforced in accordance with the internal laws of the State of
California, without regard to the principles of conflicts of law thereof. Each
party agrees that all legal proceedings concerning the interpretations,
enforcement and defense of the transactions contemplated by this Warrant
(whether brought against a party hereto or its respective affiliates, directors,
officers, shareholders, employees or agents) shall be commenced in the state and
federal courts sitting in San Diego, California. Each

                                       6
<PAGE>
party hereto hereby irrevocably submits to the exclusive jurisdiction of the
state and federal courts sitting in San Diego, California for the adjudication
of any dispute hereunder or in connection herewith or with any transaction
contemplated hereby or discussed herein (including with respect to the
enforcement of this Warrant), 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 improper. Each party hereto 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 via registered or certified mail or
overnight delivery (with evidence of delivery) to such party at the address in
effect for notices to it under this Warrant 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. Each party hereto (including its affiliates,
agents, officers, directors and employees) hereby irrevocably waives, to the
fullest extent permitted by applicable law, any and all right to trial by jury
in any legal proceeding arising out of or relating to this Warrant or the
transactions contemplated hereby. If either party shall commence an action or
proceeding to enforce any provisions of this Warrant, then the prevailing party
in such action or proceeding shall be reimbursed by the other party for its
attorneys fees and other costs and expenses incurred with the investigation,
preparation and prosecution of such action or proceeding.

                  (c) The headings herein are for convenience only, do not
constitute a part of this Warrant and shall not be deemed to limit or affect any
of the provisions hereof.

                  (d) In case any one or more of the provisions of this Warrant
shall be invalid or unenforceable in any respect, the validity and
enforceability of the remaining terms and provisions of this Warrant shall not
in any way be affected or impaired thereby and the parties will attempt in good
faith to agree upon a valid and enforceable provision which shall be a
commercially reasonable substitute therefor, and upon so agreeing, shall
incorporate such substitute provision in this Warrant.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK,
                             SIGNATURE PAGE FOLLOWS]

                                       7
<PAGE>
         IN WITNESS WHEREOF, the Company has caused this Warrant to be duly
executed by its authorized officer as of the date first indicated above.

                                 SUREBEAM CORPORATION

                                 By:
                                     -----------------------------------------
                                     David Rane, Executive Vice President and
                                     Chief Financial Officer

                                       8
<PAGE>
                          FORM OF ELECTION TO PURCHASE

To SUREBEAM CORPORATION:

         In accordance with the Warrant enclosed with this Form of Election to
Purchase, the undersigned hereby irrevocably elects to purchase _____________
shares of common stock ("Common Stock"), $0.001 par value per share, of SureBeam
Corporation and encloses herewith $________ in cash, certified or official bank
check or checks or other immediately available funds, which sum represents the
aggregate Exercise Price (as defined in the Warrant) for the number of shares of
Common Stock to which this Form of Election to Purchase relates, together with
any applicable taxes payable by the undersigned pursuant to the Warrant.

         By its delivery of this Form of Election To Purchase, the Holder
represents and warrants to the Company that in giving effect to the exercise
evidenced hereby the Holder will not beneficially own in excess of the number of
shares of Common Stock (determined in accordance with Section 13(d) of the
Securities Exchange Act of 1934) permitted to be owned under SECTION 11 of this
Warrant to which this notice relates.

         The undersigned requests that certificates for the shares of Common
Stock issuable upon this exercise be issued in the name of ___________________,
whose Social Security/Tax Identification number is
___________________________________. The certificate evidencing the shares of
Common Stock acquired hereunder should be sent to the following address:

                    _______________________________________

                    _______________________________________

                    _______________________________________

                    _______________________________________.
<PAGE>
                           Warrant Shares Exercise Log

<TABLE>
<CAPTION>
           Number of Warrant Shares     Number of Warrant      Number of Warrant Shares
 Date      Available to be Exercised    Shares Exercised       Remaining to be Exercised
 ----      -------------------------    -----------------      -------------------------
<S>        <C>                          <C>                          <C>

</TABLE>
<PAGE>
                               FORM OF ASSIGNMENT

         [To be completed and signed only upon transfer of Warrant]

         FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers
unto ________________________________ the right represented by the within
Warrant to purchase ____________ shares of Common Stock of SureBeam Corporation
to which the within Warrant relates and appoints ________________ attorney to
transfer said right on the books of SureBeam Corporation with full power of
substitution in the premises.

Dated:  _______________, ____

                              _________________________________________________
                              (Signature must conform in all respects to name
                              of holder as specified on the face of the
                              Warrant)

                              _________________________________________________
                              Address of Transferee

                              _________________________________________________
                              _________________________________________________

In the presence of:

____________________________________

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