Document:

THE  SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933 OR THE SECURITIES LAWS OF ANY STATE (COLLECTIVELY, THE "LAWS").  THE
SECURITIES  MAY  NOT  BE  OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED IN THE
ABSENCE  OF  EITHER  (I)  AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES
UNDER  THE  APPLICABLE LAWS OR (II) AN OPINION OF COUNSEL IN FORM, SUBSTANCE AND
SCOPE  REASONABLY ACCEPTABLE TO THE ISSUER, TO THE EFFECT THAT SUCH REGISTRATION
IS NOT REQUIRED DUE TO AN AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS
OF  THE  APPLICABLE  LAWS.

                                 RAPIDTRON, INC.

                        WARRANT TO PURCHASE COMMON STOCK

                 Warrant No. B-003     Number of Shares: 342,857

                      Date of Issuance:  SEPTEMBER 8, 2005

     Rapidtron,  Inc.,  a  Nevada  corporation (the "COMPANY"), hereby certifies
that,  for  value  received,  Ceres Financial Limited and permitted assigns, the
registered holder hereof ("HOLDER"), is entitled, subject to the terms set forth
below,  to  purchase from the Company upon surrender of this Warrant to Purchase
Common  Stock  (the "WARRANT"), at any time after the date hereof, but not after
5:00  P.M.  California  time on the Expiration Date (as defined herein), 342,857
fully  paid and non-assessable shares of Common Stock (as defined herein) of the
Company  (each  a  "WARRANT  SHARE"  and collectively the "WARRANT SHARES") at a
purchase  price  per  share (the "WARRANT EXERCISE PRICE") equal to the lower of
(i) US$0.175 or (ii) an amount equal to seventy-five percent (75%) of the lowest
closing  bid  price  of  the  Common Stock for the five trading days immediately
preceding the date of the Exercise Notice as quoted on the OTC Bulletin Board or
such  national  securities exchange or other market on which the Common Stock is
then listed or quoted.  The Warrant Exercise Price shall be paid in lawful money
of  the  United  States, unless exercised pursuant to Section 2(b) hereof.  Both
the  number  of  Warrant  Shares  purchasable hereunder and the Warrant Exercise
Price  are  subject  to  adjustment  as  provided  in  Section  9  below.

Section 1.     Definitions.
               -----------

     (a)  The  following  words  and  terms  used in this Warrant shall have the
following  meanings:

     "COMMON  STOCK" means (i) the Company's US$0.001 par value common stock and
(ii)  any  capital stock into which such Common Stock shall have been changed or
any  capital  stock  resulting  from  a  reclassification  of such Common Stock.

     "EXPIRATION  DATE"  means the date which is five (5) years from the date of
this  Warrant or, if such date falls on a Saturday, Sunday or other day on which
banks  are  required  or  authorized  to be closed in the State of California (a
"HOLIDAY"),  the  next  preceding  date  that  is  not  a  Holiday.

<PAGE>
     "MARKET PRICE" means the average of the closing stock prices for the Common
Stock  for  the  ten  (10) trading days immediately prior to the date on which a
Notice  of  Exercise  is delivered to the Company, as quoted on the OTC Bulletin
Board  or  such national securities exchange or other market on which the Common
Stock  may  then  be  listed  or  quoted.

     "SECURITIES  ACT"  means  the  Securities  Act  of  1933,  as  amended.

     "SECURITIES PURCHASE AGREEMENT" shall mean the Convertible Note and Warrant
Purchase  Agreement  between the Holder (or its predecessor in interest) and the
Company  for  the  purchase  of  this  Warrant  and  the Note (as defined in the
Securities  Purchase  Agreement).

     (b)  Other definitional provisions:

     (i)     Except  as otherwise specified herein, all references herein (A) to
the  Company  shall be deemed to include the Company's successors and (B) to any
applicable law shall be deemed references to such applicable law as the same may
be  amended  or  supplemented  from  time  to  time.

     (ii)    When  used  in  this  Warrant,  unless  otherwise  specified  in  a
particular instance, the words "herein," "hereof," and "hereunder," and words of
similar  import, shall refer to this Warrant as a whole and not to any provision
of  this  Warrant, and the words "Section" and "Exhibit" shall refer to Sections
of,  and  Exhibits  to,  this  Warrant  unless  otherwise  specified.

     (iii)   Whenever  the  context  so requires, the neuter gender includes the
masculine  or  feminine,  and  the singular number includes the plural, and vice
versa.

     (iv)    When  used  in  this  Warrant,  "transfer"  shall  include  any
disposition  of this Warrant or any Warrant Shares, or of any interest in either
thereof,  which  would  constitute  a  sale  thereof  within  the meaning of the
Securities  Act  or  applicable  state  securities  laws.

Section 2.     Exercise of Warrant.
               -------------------

     (a)  Subject  to  the  terms  and  conditions  hereof,  this Warrant may be
exercised  by  the Holder, as a whole or in part (except that this Warrant shall
not  be  exercisable  as  to a fractional share), at any time prior to 5:00 p.m.
California  time on the Expiration Date.  The rights represented by this Warrant
shall be exercised by the Holder by (i) delivery of a written notice in the form
attached  as  Exhibit I hereto (a "NOTICE OF EXERCISE") of the Holder's election
to  exercise  this  Warrant,  which  notice  shall specify the number of Warrant
Shares  to  be  purchased, (ii) payment to the Company of an amount equal to the
Warrant  Exercise  Price  multiplied by the number of Warrant Shares as to which
the  Warrant is being exercised, plus any applicable issuance or transfer taxes,
in  immediately  available  funds  (either  by  wire  transfer or a certified or
cashier's  check  drawn on a United States bank) and (iii) the surrender of this
Warrant,  properly  endorsed, at the principal office of the Company (or at such
other  agency or office of the Company as the Company may designate by notice to
the  Holder).

     (b)  In  addition,  and  notwithstanding anything to the contrary contained
in  this Warrant, at such time as the Market Price per share of the Common Stock
exceeds  the  Warrant  Exercise  Price,  this  Warrant  may  be  exercised  by
presentation  and  surrender  of  this  Warrant  to  the

                                        2
<PAGE>
Company in a cashless exercise, including a written calculation of the number of
Warrant  Shares  to  be  issued  upon such exercise in accordance with the terms
hereof (a "CASHLESS EXERCISE").  In the event of a Cashless Exercise, in lieu of
paying  the Warrant Exercise Price, the Holder shall surrender this Warrant for,
and  the  Company  shall  issue in respect thereof, the number of Warrant Shares
determined by multiplying the number of Warrant Shares to which the Holder would
otherwise  be entitled by a fraction, the numerator of which shall be determined
by subtracting the Warrant Exercise Price from the then current Market Price per
share  of  Common  Stock, and the denominator of which shall be the then current
Market  Price  per  share  of  Common  Stock.

     (c)  Any  Warrant  Shares  shall  be  deemed  to be issued to the Holder or
Holder's designee, as the record owner of such Warrant Shares, as of the date on
which this Warrant shall have been surrendered, the completed Notice of Exercise
shall  have  been  delivered,  and payment (or notice of an election to effect a
Cashless  Exercise)  shall  have  been made for such Warrant Shares as set forth
above,  irrespective  of  the date of delivery of such share certificate, except
that,  if  the  date  of  such  surrender  and  payment is a date when the stock
transfer  books  of the Company are properly closed, such person shall be deemed
to  have  become the holder of such Warrant Shares at the opening of business on
the  next  succeeding date on which the stock transfer books are open.  For each
exercise  of  the  rights  represented  by  this Warrant in compliance with this
Section  2,  a  certificate or certificates for the Warrant Shares so purchased,
registered in the name of, or as directed by, the Holder, shall be delivered to,
or  as  directed by, the Holder within three (3) business days after such rights
shall  have  been  so  exercised.

     (d)  Unless  this  Warrant  shall  have  expired  or  shall have been fully
exercised,  the  Company  shall issue a new Warrant identical in all respects to
the  Warrant  exercised  except  that  it shall represent rights to purchase the
number  of  Warrant  Shares purchasable immediately prior to such exercise under
the  Warrant  exercised, less the number of Warrant Shares with respect to which
such Warrant is exercised (or, in the case of a Cashless Exercise, the number of
shares  to  which  the  Holder  would  otherwise  have  been  entitled).

     (e)  In  the  case  of any dispute with respect to an exercise, the Company
shall  promptly  issue  such  number  of  Warrant  Shares as are not disputed in
accordance  with  this  Section.  If  such  dispute  only involves the number of
Warrant  Shares  receivable by the Holder under a Cashless Exercise, the Company
shall  submit  the  disputed  calculations  to an independent accounting firm of
national  standing  via facsimile within two (2) business days of receipt of the
Notice of Exercise.  The accountant shall review the calculations and notify the
Company  and  the Holder of the results no later than two (2) business days from
the  date  it  receives the disputed calculations.  The accountant's calculation
shall  be deemed conclusive absent manifest error.  The Company shall then issue
the  appropriate  number  of  shares  of  Common  Stock  in accordance with this
Section.

NOTWITHSTANDING  ANY  OTHER  PROVISION  HEREOF,  NO  HOLDER SHALL EXERCISE THESE
WARRANTS,  IF AS A RESULT OF SUCH CONVERSION THE HOLDER WOULD THEN BECOME A "TEN
PERCENT  BENEFICIAL  OWNER"  (AS  DEFINED  IN  RULE  16A-2  UNDER THE SECURITIES
EXCHANGE  ACT  OF 1934, AS AMENDED) OF COMMON STOCK.  FOR GREATER CERTAINTY, THE
WARRANTS SHALL NOT BE CONVERTIBLE BY THE HOLDER, IF, AFTER GIVING EFFECT TO SUCH
EXERCISE,  THE HOLDER OF SUCH SECURITIES, TOGETHER WITH ITS AFFILIATES, WOULD IN
AGGREGATE  BENEFICIALLY  OWN,  OR  EXERCISE  CONTROL  OR  DIRECTION  OVER  THAT

                                        3
<PAGE>
NUMBER  OF VOTING SECURITIES OF THE COMPANY WHICH IS 10% OR GREATER OF THE TOTAL
ISSUED  AND  OUTSTANDING  VOTING  SECURITIES  OF  THE COMPANY, IMMEDIATELY AFTER
GIVING  EFFECT  TO SUCH EXERCISE.  NOTWITHSTANDING THE FOREGOING, IF THE COMPANY
DEFAULTS  ON ITS PAYMENT OBLIGATIONS UNDER THE CONVERTIBLE PROMISSORY NOTE DATED
SEPTEMBER  8,  2005, AND SUCH DEFAULT IS NOT CURED WITHIN 30 DAYS OF THE WRITTEN
NOTICE  OF  THE  HOLDER OF SUCH DEFAULT, THEN THE FOREGOING LIMITATION SHALL NOT
APPLY.

Section 3.     Covenants as to Common Stock.
               ----------------------------

     The  Company  covenants  and  agrees  that  all Warrant Shares which may be
issued  upon  the  exercise of the rights represented by this Warrant will, upon
issuance, be validly issued, fully paid and non-assessable.  The Company further
covenants  and agrees that during the period within which the rights represented
by  this Warrant may be exercised, the Company will at all times have authorized
and  reserved  a  sufficient number of shares of Common Stock to provide for the
exercise  of  the rights then represented by this Warrant and that the par value
of said shares will at all times be less than or equal to the applicable Warrant
Exercise  Price.

Section 4.     Taxes.
               -----

     The  Company  shall not be required to pay any tax or taxes attributable to
the  initial  issuance  of  the  Warrant  Shares or any transfer involved in the
issuance or delivery of any certificates for Warrant Shares in a name other than
that  of  the  Holder  or  any  permitted  transferee  of  this  Warrant.

Section 5.     Warrant Holder Not Deemed a Stockholder.
               ---------------------------------------

     No  Holder  of  this Warrant, as such, shall be entitled to vote or receive
dividends  or be deemed the holder of shares of the Company for any purpose, nor
shall anything contained in this Warrant be construed to confer upon the Holder,
as such, any of the rights of a stockholder of the Company or any right to vote,
give  or  withhold  consent to any corporate action (whether any reorganization,
issuance  of stock, reclassification of stock, consolidation, merger, conveyance
or  otherwise),  receive  notice  of meetings, receive dividends or subscription
rights,  or otherwise, prior to the issuance to the Holder of the Warrant Shares
which  the  Holder  is  then  entitled  to receive upon the due exercise of this
Warrant.  Notwithstanding  the  foregoing,  the  Company will provide the Holder
with  copies of the same notices and other information given to the stockholders
of  the  Company  generally,  contemporaneously with the delivery thereof to the
stockholders.

Section 6.     No Limitation on Corporate Action.
               ---------------------------------

     No  provisions  of this Warrant and no right or option granted or conferred
hereunder  shall in any way limit, affect or abridge the exercise by the Company
of  any of its corporate rights or powers to recapitalize, amend its Articles of
Incorporation,  reorganize,  consolidate  or  merge  with  or  into  another
corporation,  or  to  transfer all or any part of its property or assets, or the
exercise  of  any  other  of  its  corporate  rights  and  powers.

                                        4
<PAGE>
Section 7.     Representations of Holder.
               -------------------------

     By  the  acceptance  hereof,  the  Holder  represents  that  the  Holder is
acquiring  this  Warrant and the Warrant Shares for the Holder's own account for
investment  and  not  with  a  view  to,  or  for  sale  in connection with, any
distribution  hereof or of any of the shares of Common Stock or other securities
issuable  upon  the  exercise  hereof,  and  not  with  any present intention of
distributing  any  of  the  same.  The  Holder further represents, by acceptance
hereof,  that,  as  of this date, the Holder is an "accredited investor" as such
term is defined in Rule 501(a) of Regulation D promulgated by the Securities and
Exchange  Commission  under  the Securities Act.  Upon exercise of this Warrant,
the  Holder  shall,  if  requested  by  the  Company,  confirm  the  foregoing
representations  in  writing,  in  a  form  satisfactory to the Company.  If the
Holder  cannot  make  such  representations  because  they  would  be  factually
incorrect,  it shall be a condition to the Holder's exercise of the Warrant that
the  Company  receive  such  other  representations  as  the  Company  considers
reasonably  necessary  to assure the Company that the issuance of its securities
upon  exercise  of the Warrant shall not violate any federal or state securities
laws.

Section 8.     Restrictions on Transfer.
               ------------------------

     The  Holder  understands  that (i) this Warrant and the Warrant Shares have
not  been  and  are  not  being registered under the Securities Act or any state
securities  laws (other than as described in the Securities Purchase Agreement),
and  may  not  be  offered  for  sale,  sold, assigned or transferred unless (A)
subsequently  registered  thereunder  or  (B) pursuant to an exemption from such
registration,  and  (ii)  neither  the Company nor any other person is under any
obligation  to  register  such  securities  (other  than  as  described  in  the
Securities  Purchase Agreement) under the Securities Act or any state securities
laws  or  to  comply  with the terms and conditions of any exemption thereunder.

Section 9.     Adjustments.
               -----------

     (a)  Reclassification  and  Reorganization.  In  case  of  any
          -------------------------------------
reclassification,  capital  reorganization or other change of outstanding shares
of  the  Common  Stock, or in case of any consolidation or merger of the Company
with  or into another corporation (other than a consolidation or merger in which
the  Company  is  the  continuing  corporation  and which does not result in any
reclassification,  capital  reorganization or other change of outstanding shares
of Common Stock), the Company shall cause effective provision to be made so that
the  Holder  shall  have  the  right  thereafter, by exercising this Warrant, to
purchase  the kind and number of shares of stock or other securities or property
(including  cash)  receivable upon such reclassification, capital reorganization
or  other change, consolidation or merger by a holder of the number of shares of
Common  Stock  that  could  have  been  purchased  upon  exercise of the Warrant
immediately  prior  to  such  reclassification,  capital reorganization or other
change, consolidation or merger.  Any such provision shall include provision for
adjustments  that  shall  be  as  nearly equivalent as may be practicable to the
adjustments  provided  for  in  this  Section 9.  The foregoing provisions shall
similarly  apply  to  successive  reclassifications, capital reorganizations and
other  changes  of  outstanding  shares  of  Common  Stock  and  to  successive
consolidations  or  mergers.  If  the  consideration  received by the holders of
Common  Stock  is other than cash, the value shall be as determined by the Board
of  Directors  of  the  Company  acting  in  good  faith.

                                        5
<PAGE>
     (b)  Dividends  and  Stock  Splits.  If  and  whenever  the  Company  shall
          -----------------------------
effect  a stock dividend, a stock split, a stock combination, or a reverse stock
split  of  the  Common Stock, the number of Warrant Shares purchasable hereunder
and  the  Warrant Exercise Price shall be proportionately adjusted in the manner
determined by the Company's Board of Directors acting in good faith.  The number
of shares, as so adjusted, shall be rounded down to the nearest whole number and
the  Warrant  Exercise  Price  shall  be  rounded  to  the  nearest  cent.

     (c)  Default  Adjustment.  Any  other  provision  of  this  Warrant
          -------------------
notwithstanding,  in  the  event  of a default under the Note (as defined in the
Securities  Purchase  Agreement), until the Expiration Date the Warrant Exercise
Price  shall  automatically  be  reduced  to  the par value of the Common Stock.

Section 10.     Lost, Stolen, Mutilated or Destroyed Warrant.
                --------------------------------------------

     If this Warrant is lost, stolen or destroyed, the Company shall, on receipt
of  an indemnification undertaking reasonably satisfactory to the Company, issue
a  new  Warrant of like denomination and tenor as the Warrant so lost, stolen or
destroyed.  In  the  event the Holder asserts such loss, theft or destruction of
this  Warrant,  the  Company  may  require the Holder to post a bond issued by a
surety  reasonably  satisfactory  to the Company with respect to the issuance of
such  new  Warrant.

Section 11.     Notice.
                ------

     Any  notices  required  or  permitted  to  be given under the terms of this
Warrant  shall  be  sent  by  mail  or  delivered  personally  or  by courier or
facsimile,  and  shall be effective five days after being placed in the mail, if
mailed,  certified  or registered, return receipt requested, or upon receipt, if
delivered  personally  or  by  courier  or  by  facsimile, in each case properly
addressed  to  the  party  to  receive  the  same.  The  addresses  for  such
communications  shall be as provided in the Securities Purchase Agreement.  Each
party  shall  provide  notice  to  the  other  party  of  any change in address.

Section 12.     Miscellaneous.
                -------------

     This  Warrant  and  any  term hereof may be changed, waived, discharged, or
terminated  only  by  an  instrument  in  writing  signed by the party or Holder
against  which  enforcement  of such change, waiver, discharge or termination is
sought.  This Warrant shall be governed by and interpreted under the laws of the
State  of  California,  without  regard  to  the principles of conflict of laws.
Headings  are  for  convenience  only  and  shall  not  affect  the  meaning  or
construction  of  any  of  the provisions hereof.  This Warrant shall be binding
upon  the  Company and its successors and assigns and shall inure to the benefit
of  the  Holder  and  its  permitted successors and assigns.  The Holder may not
assign  this  Warrant  except  in  accordance  with applicable federal and state
securities  laws.

Section 13.     Attorney's Fees.
                ---------------

     If  Holder  or  the  Company  shall bring any action for relief against the
other  arising  out  of  or  in connection with this Warrant, in addition to all
other  remedies  to which the prevailing party may be entitled, the losing party
shall  be  required  to  pay  to  the  prevailing  party  a  reasonable  sum

                                        6
<PAGE>
for  attorney's fees and costs incurred in bringing such action and/or enforcing
any  judgment granted therein, all of which shall be deemed to have accrued upon
the  commencement of such action and shall be paid whether or not such action is
prosecuted  to  judgment.  Any  judgment  or  order entered in such action shall
contain  a  specific provision providing for the recovery of attorney's fees and
costs  incurred  in  enforcing such judgment.  For the purposes of this Section,
attorney's fees shall include, without limitation, fees incurred with respect to
the  following:  (i)  post-judgment  motions,  (ii)  contempt proceedings, (iii)
garnishment,  levy  and  debtor  and  third  party  debtor  and  third  party
examinations,  (iv)  discovery  and  (v)  bankruptcy  litigation.

Section 14.     Effect of Expiration.
                --------------------

     This  Warrant,  in  all events, shall be wholly void and of no effect after
the  close  of  business on the Expiration Date, except that notwithstanding any
other  provisions  hereof,  the  provisions of Section 13 shall continue in full
force  and  effect  after such date as to any Warrant Shares or other securities
issued  upon  the  exercise  of  this  Warrant.

                                       RAPIDTRON, INC.

                                       By:
                                          --------------------------------------
                                                        President

                                       By:
                                          --------------------------------------
                                                        Secretary

                                        7
<PAGE>
                                    EXHIBIT I

                             NOTICE OF EXERCISE FORM

                                 RAPIDTRON, INC.

     The  undersigned  hereby  exercises  the  right  to  purchase the number of
Warrant  Shares  covered  by  the  Warrant  attached  hereto  as specified below
according to the conditions thereof and herewith makes payment of US$___________
(unless  effected  by  a  Cashless  Exercise in accordance with the terms of the
Warrant), which constitutes the aggregate Warrant Exercise Price of such Warrant
Shares  pursuant  to  the  terms  and  conditions  of  the  Warrant.

     (i)     The  undersigned  agrees  not to offer, sell, transfer or otherwise
dispose  of  any Common Stock obtained upon exercise of the Warrant except under
circumstances  that  will  not  result  in  a violation of the Securities Act or
applicable  state  securities  laws.

     (ii)    The  undersigned  requests  that  the  stock  certificates  for the
Warrant  Shares  be  issued,  and a Warrant representing any unexercised portion
hereof be issued, pursuant to the terms of the Warrant in the name of the Holder
(or  such  other person(s) indicated below) and delivered to the undersigned (or
designee(s))  at  the  address  or  addresses  set  forth  below.

Dated:_____________, _____.

                                       HOLDER:
                                              ----------------------------------

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

                                         Address:
                                                 -------------------------------

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

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

Number of Warrant Shares being purchased:
                                         ----------------------------------

                                        8THE  SECURITIES  REPRESENTED  BY  THIS CONVERTIBLE PROMISSORY NOTE HAVE NOT BEEN
REGISTERED  UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND HAVE BEEN ACQUIRED
FOR  INVESTMENT  AND  NOT  WITH  A  VIEW  TO, OR IN CONNECTION WITH, THE SALE OR
DISTRIBUTION  THEREOF.  NO  SUCH SALE OR DISTRIBUTION MAY BE EFFECTED WITHOUT AN
EFFECTIVE  REGISTRATION  STATEMENT RELATED THERETO OR AN OPINION OF COUNSEL IN A
FORM  SATISFACTORY  TO  THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED UNDER
THE  SECURITIES  ACT  OF  1933,  AS  AMENDED.

                           CONVERTIBLE PROMISSORY NOTE
                           ---------------------------

US$397,566.29                                                      June 21, 2005

     For  value received, RAPIDTRON, INC., a Nevada corporation (the "Company"),
                                                                      -------
promises  to pay to CERES FINANCIAL LIMITED, a BVI company, of Walkers Chambers,
P.O.  Box  92,  Mill  Mall,  Road  Town,  Tortola,  British  Virgin Islands (the
"Holder"),  the  principal  sum of U.S. Three Hundred Ninety-Seven Thousand Five
 ------
Hundred  Sixty-Six  and  29/100  Dollars (US$397,566.29).  Interest shall accrue
from  the  date  of this Convertible Promissory Note (this "Note") on the unpaid
                                                            ----
principal  amount  at  a  rate equal to eight percent (8%) per annum, compounded
annually.  This  Note  is  subject  to  the  following  terms  and  conditions.

     1.     MATURITY.  Unless converted as provided in Section 2, this Note will
            --------
automatically mature and be due and payable on September 30, 2005 (the "Maturity
                                                                        --------
Date").  Subject  to  Section  2  below,  interest shall accrue on this Note but
----
shall  not  be  due  and  payable  until the Maturity Date.  Notwithstanding the
foregoing,  the  entire unpaid principal sum of this Note, together with accrued
and  unpaid  interest thereon, shall become immediately due and payable upon the
insolvency  of  the  Company,  the  commission  of  any act of bankruptcy by the
Company, the execution by the Company of a general assignment for the benefit of
creditors,  the  filing by or against the Company of a petition in bankruptcy or
any  petition for relief under the federal bankruptcy act or the continuation of
such petition without dismissal for a period of ninety (90) days or more, or the
appointment  of  a  receiver  or  trustee  to take possession of the property or
assets  of  the  Company.

     2.     CONVERSION;  PAYMENT;  ETC.
            --------------------------

          (a)     This  Note  shall  be  convertible at any time, in whole or in
part,  at  the  option  of  the  Holder,  into  such  number  of  fully paid and
nonassessable  shares  of  Common  Stock  of  the Company ("Common Stock") as is
determined  by  dividing (i) the entire principal amount of, and at the Holder's
option  accrued  interest on, this Note on the date of such optional conversion,
by (ii) a conversion price equal to the lesser of (i) US$0.175 per share or (ii)
seventy-five  percent (75%) of the lowest closing bid price for the Common Stock
(as  reported  by  Bloomberg)  in  any  of the five (5) trading days immediately
preceding  the  conversion  date.

          (b)     The conversion price shall be subject to adjustment from time
to time as hereinafter provided in this Section 2(b):

          (i)  If the Company at any time divides the outstanding shares of its
               Common Stock into a greater number of shares (whether pursuant to
               a stock split, stock dividend or otherwise), and conversely, if
               the outstanding shares of its Common Stock are combined into a
               smaller number of shares, the conversion price in effect
               immediately prior to

                                      -1-
<PAGE>
               such division or combination shall be proportionately adjusted to
               reflect the reduction or increase in the value of each such
               common share.

          (ii) If any capital reorganization or reclassification of the capital
               stock of the Company, or consolidation or merger of the Company
               with another corporation, or the sale of all or substantially all
               of its assets to another corporation shall be effected in such a
               way that holders of the Company's Common Stock shall be entitled
               to receive stock, securities or assets with respect to or in
               exchange for such Common Stock, then, as a condition of such
               reorganization, reclassification, consolidation, merger or sale,
               Holder shall have the right to purchase and receive upon the
               basis and upon the terms and conditions specified in this
               debenture and in lieu of the shares of the Common Stock of the
               Company immediately theretofore purchasable and receivable upon
               the exercise of the rights represented hereby, such shares of
               stock, other securities or assets as would have been issued or
               delivered to Holder if Holder had exercised this debenture and
               had received such shares of Common Stock immediately prior to
               such reorganization, reclassification, consolidation, merger or
               sale. The Company shall not effect any such consolidation, merger
               or sale unless prior to the consummation thereof the successor
               corporation (if other than the Company) resulting from such
               consolidation or merger or the corporation purchasing such assets
               shall assume by written instrument executed and mailed to the
               Holder at the last address of the Holder appearing on the books
               of the Company the obligation to deliver to the Holder such
               shares of stock, securities or assets as, in accordance with the
               foregoing provisions, the Holder may be entitled to purchase.

          (iii) If and whenever the Company shall (1) issue or sell any shares
               of its Common Stock for a consideration per share less than the
               conversion price in effect immediately prior to the time of such
               issuance or sale, (2) issue or sell any warrants, options or
               other rights to acquire shares of its Common Stock at a purchase
               price less than the conversion price in effect immediately prior
               to the time of such issuance or sale or (3) issue or sell any
               other securities that are convertible into shares of its Common
               Stock for a purchase or exchange price less than the conversion
               price in effect immediately prior to the time of such issuance or
               sale then, upon such issuance or sale, the conversion price shall
               be reduced to the price at which such shares of Common Stock are
               being issued or sold by the Company or the price at which such
               other securities are exercisable or convertible into shares of
               the Company's Common Stock.

          (c)     No  fractional  shares  of the Company's capital stock will be
issued  upon  conversion of this Note.  In lieu of any fractional share to which
the  Holder  would  otherwise be entitled, the Company will pay to the Holder in
cash  the  amount of the unconverted principal and interest balance of this Note
that  would  otherwise be converted into such fractional share.  Upon conversion
of  this  Note pursuant to this Section 2, the Holder shall surrender this Note,
duly  endorsed, at the principal offices of the Company or any transfer agent of
the  Company.  At  its  expense,  the  Company  will,  as  soon  as  practicable
thereafter,  issue  and  deliver  to  such  Holder,  at such principal office, a
certificate  or  certificates  for  the number of shares to which such Holder is
entitled  upon  such conversion, together with any other securities and property
to  which  the

                                      -2-
<PAGE>
Holder  is entitled upon such conversion under the terms of this Note, including
a  check payable to the Holder for any cash amounts payable as described herein.
Upon  conversion  of  this  Note  and  the  deliveries required pursuant to this
Section  2  in  connection  with  such  conversion,  the Company will be forever
released from all of its obligations and liabilities under this Note with regard
to  that  portion  of  the principal amount and accrued interest being converted
including without limitation the obligation to pay such portion of the principal
amount  and  accrued  interest.

NOTWITHSTANDING ANY OTHER PROVISION HEREOF, NO HOLDER SHALL CONVERT THIS NOTE OR
ANY  PORTION  THEREOF,  IF  AS A RESULT OF SUCH CONVERSION THE HOLDER WOULD THEN
BECOME  A  "TEN  PERCENT  BENEFICIAL  OWNER" (AS DEFINED IN RULE 16A-2 UNDER THE
SECURITIES  EXCHANGE  ACT  OF  1934,  AS  AMENDED) OF COMMON STOCK.  FOR GREATER
CERTAINTY,  THE  NOTE SHALL NOT BE CONVERTIBLE BY THE HOLDER TO THE EXTEND THAT,
IF,  AFTER  GIVING  EFFECT  TO  SUCH  CONVERSION, THE HOLDER OF SUCH SECURITIES,
TOGETHER  WITH  ITS AFFILIATES, WOULD IN AGGREGATE BENEFICIALLY OWN, OR EXERCISE
CONTROL  OR DIRECTION OVER THAT NUMBER OF VOTING SECURITIES OF THE COMPANY WHICH
IS  10%  OR GREATER OF THE TOTAL ISSUED AND OUTSTANDING VOTING SECURITIES OF THE
COMPANY,  IMMEDIATELY  AFTER  GIVING  EFFECT  TO  SUCH  CONVERSION.

          (d)     PAYMENT  OF INTEREST.  Upon conversion of the entire principal
                  --------------------
amount  of  this  Note into the Company's capital stock, any interest accrued on
this  Note  that  is  not by reason of Section 2 hereof simultaneously converted
into  Common  Stock  shall  be  immediately  paid  to  the  Holder.

          (e)     PAYMENT.  All  payments  shall  be made in lawful money of the
                  -------
United  States  of  America  at such place as the Holder hereof may from time to
time  designate  in  writing to the Company.  Payment shall be credited first to
the  accrued  interest  then  due  and  payable  and  the  remainder  applied to
principal.  This  Note  may not be prepaid at any time without the prior written
consent  of  the  Holder.

          (f)     SECURITY.  This  Note  is  secured  by  a security interest in
                  --------
substantially  all  of  the  Company's tangible and intangible assets (including
intellectual  property)  (collectively, the "Collateral"), granted to the Holder
under  a  Security  Agreement  dated June 21, 2005. A default under the terms of
this  Note  shall  also  constitute  a  default  under  the  Security Agreement.

     3.     DUE ON SALE CLAUSE.   The Holder shall have the right, at its sole
            -------------------
option, to declare this Note immediately due and payable irrespective of the
Maturity Date specified herein, upon the following events:

          (a)     Twenty business days prior to the effective date of any Change
of Control transaction undertaken without the prior written consent of the
Holder, which consent the Holder shall have no obligation to give.  A "Change of
Control Transaction" means (i) any sale of equity securities or securities
convertible into equity securities of the Company; (ii) any merger,
consolidation, statutory share exchange or acquisition transaction involving the
Company; (iii) any sale of substantially all of the assets of the Company; or
(iv) any similar transaction involving the issuance, cancellation or
restructuring of equity securities of the Company unless, following the
completion of such transaction, the then existing shareholders of Company own or
control, directly or indirectly, at least 50% of the voting power or liquidation
rights of Company or the successor of such merger, consolidation or statutory
share exchange.

          (b)     If the Company shall sell, convey, transfer, assign or further
encumber the Collateral or any part thereof or any interest therein, whether
legal or equitable, in any manner (whether voluntarily or involuntarily) not
permitted under the Security Agreement, without the prior written consent of the
Holder, which consent the Holder shall have no obligation to give.   Any consent
by the Holder to such a transfer may be predicated upon such terms, conditions
and

                                      -3-
<PAGE>
covenants as may be deemed advisable or necessary in the sole discretion of the
Holder, including, but not limited to, the right to (i) require the transferee's
assumption of personal liability on the debt hereunder, (ii) approve the form
and substance of all transfer and assumption documents, (iii) change the
interest rate, date of maturity and amount and/or schedule of payments hereunder
and (iv) charge a fee based on a percentage of the original principal amount of
this Note. The granting of permission for a transferee of the Collateral to
assume this Note shall not in any manner be deemed a consent to any subsequent
transfer, and the Holder shall retain the right to consent to such subsequent
transfer or transfers on the terms and conditions stated above. Consent to one
such transfer shall not be deemed to be a waiver of the right of such consent to
further or successive transfers. No assumption or consent to any subsequent
transfer shall be deemed to constitute a release of the Company's obligations
hereunder.

     4.     TRANSFER;  SUCCESSORS  AND  ASSIGNS.
            -----------------------------------

          (a)     The  terms  and  conditions  of  this  Note shall inure to the
benefit  of  and  be  binding  upon the respective successors and assigns of the
parties.  This  Note  may  be  transferred, or divided into two or more Notes of
smaller  denomination,  subject  to  the  following  conditions.  The Holder, by
acceptance  hereof,  agrees  to  give  written  notice  to  the  Company  before
transferring  this  Note of such Holder's intention to do so, describing briefly
the  manner  of  the  proposed  transfer.  Promptly  upon receiving such written
notice,  the  Company shall present copies thereof to the Company's counsel.  If
in  the  opinion  of the Company's counsel the proposed transfer may be effected
without  constituting  a  violation  of  the  applicable  U.S.  state or federal
securities  laws, then the Company, as promptly as practicable, shall notify the
Holder  of such opinion, whereupon the Holder shall be entitled to transfer this
Note,  provided  that  an  appropriate  legend  may  be  endorsed  on  this Note
respecting  restrictions  upon  transfer  thereof  necessary or advisable in the
opinion  of  counsel  satisfactory  to  the Company to prevent further transfers
which  would  be  in  violation of  such securities laws or adversely affect the
exemptions  relied upon by the Company.  To such effect, the Company may request
that  the  intended  transferee execute an investment letter satisfactory to the
Company  and  its  counsel.

          (b)     A  register of the issuance and transfer of this Note shall be
kept  at the office of the Company, and this Note may be transferred only on the
books  of  the  Company  maintained  at  its  office.  Each transfer shall be in
writing  signed  by  the  then  registered  Holder  hereof or the Holder's legal
representatives  or successors, and no transfer hereof shall be binding upon the
Company  unless in writing and duly registered on the register maintained at the
Company's  office.  Upon transfer of this Note, the transferee, by accepting the
Note, agrees to be bound by the provisions, terms, conditions and limitations of
this  Note  and  the Convertible Note and Warrant Purchase Agreement between the
Company  and  the  Holder  dated  effective  as  of  June  21,  2005.

          (c)     If  in  the opinion of the counsel referred to in this Section
4,  the  proposed  transfer or disposition of the Note described in the Holder's
written  notice  given  pursuant  to  this Section 4 may not be effected without
registration  or  without  adversely affecting the exemptions relied upon by the
Company,  the  Company  shall promptly give written notice to the Holder and the
Holder  will  limit  its  activities  and  restrict  its  transfer  accordingly.

     5.     GOVERNING  LAW.  This  Note  and  all acts and transactions pursuant
            --------------
hereto  and  the rights and obligations of the parties hereto shall be governed,
construed  and  interpreted  in  accordance  with  the  laws  of  the  State  of
California,  without  giving  effect  to  principles  of  conflicts  of  law.

     6.     NOTICES.  Any  notice required or permitted by this Note shall be in
            -------
writing  and shall be deemed sufficient upon delivery, when delivered personally
or  by  a  nationally-

                                      -4-
<PAGE>
recognized  delivery  service  (such  as Federal Express or UPS), or seventy-two
(72)  hours  after  being deposited in the U.S. mail, as certified or registered
mail,  with  postage  prepaid,  addressed  to  the  party to be notified at such
party's  address  as  set  forth  herein  or as subsequently modified by written
notice.

     7.     AMENDMENTS  AND  WAIVERS.  Any term of this Note may be amended only
            ------------------------
with the written consent of the Company and the Holder.  Any amendment or waiver
effected  in  accordance  with this Section 7 shall be binding upon the Company,
the  Holder  and  each  transferee  of  the  Note.

     Company hereby waives presentment for payment, notice of dishonor, protest
and notice of protest.  If this Note is not paid when due, the Company agrees to
pay all costs of collection, including reasonable attorneys' fees.

     THIS NOTE SHALL BE GOVERNED BY THE LAWS OF THE STATE OF CALIFORNIA.

                                             RAPIDTRON, INC.

                                             By:
                                                 ------------------------------
                                             Its:
                                                 ------------------------------

                                             Address: 3151 Airway Ave., Bldg. Q,
                                             Costa Mesa, CA 92626

                                      -5-

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