Document:

SECURITY AGREEMENT

     This  Security  Agreement  (the  "Agreement")  is  made and entered into on
December  1,  2004,  by  and  between Rapidtron, Inc., a Nevada corporation (the
"Debtor"),  and  Oceanus  Value  Fund,  L.P.(the  "Secured  Party").

     A.     Debtor  and  Secured  Party  have entered into a Securities Purchase
Agreement  dated  concurrently  herewith  (the "Securities Purchase Agreement").

     B.     Pursuant  to  the  Securities  Purchase Agreement, Debtor has, among
other  things,  delivered  to  Secured  Party a $400,000 15% Secured Convertible
Promissory  Note  (the  "Note").

     C.     The  parties  now enter into this Agreement as security for Debtor's
obligations  under  the  Note.

     NOW,  THEREFORE,  in  consideration  of their respective promises contained
herein and other good and valuable consideration, the receipt and sufficiency of
which  are  hereby  acknowledged  by  the  parties,  the parties hereto agree as
follows:

     1.     Definitions.  Capitalized  terms  used  in  this  Agreement  and not
            -----------
defined  elsewhere herein or in the Securities Purchase Agreement shall have the
meanings  set  forth  below:

     "Accounts"  means  and  includes  all  of  Debtor's  presently existing and
hereafter  arising  accounts  receivable,  contract  rights,  rights of payment,
instruments,  notes,  drafts,  documents,  chattel paper, and all other forms of
obligations  owing  to  Debtor  arising out of the sale or lease of goods or the
rendition  of  services by Debtor, whether or not earned by performance, and any
and  all  letters  of  credit,  credit insurance, guaranties, and other security
therefor,  and  all  merchandise  returned  to  or  reclaimed by Debtor, and all
proceeds  and  products  of  any of the foregoing, and all of Debtor's Books (as
defined  below)  relating  to  any  of  the  foregoing.

     "Collateral"  means  and  includes  all of the following: (i) the Accounts,
Equipment, General Intangibles, Inventory, Negotiable Collateral, and such other
assets  of  Debtor  as to which Secured Party may from time-to-time be granted a
security  interest and (ii) the proceeds of any of the foregoing, including, but
not  limited  to,  proceeds  of  insurance covering the foregoing or any portion
thereof,  and  any  and  all  money,  deposit  accounts  or  other  tangible and
intangible  property of Debtor resulting from a sale or other disposition of the
foregoing  or  any  portion  thereof;  provided,  however,  that notwithstanding
anything  to  the  contrary contained in this Agreement, the Collateral does not
include  any  "infectious  waste,"  "restricted  hazardous waste," or "hazardous
waste"  as  those  terms  are  defined  under 42 U.S.C. Section 6903(5), as such
section  may  be from time to time amended, or under any regulations thereunder.

     "Debtor's  Books"  means  and  includes  all of Debtor's books and records,
including,  but not limited to, all records, ledgers and computer programs, disk
or  tape  files,  printouts  and other computer-prepared information indicating,
summarizing  or  evidencing  the  Collateral.

<PAGE>
     "Equipment"  means  and  includes  all  of  Debtor's  present and hereafter
acquired equipment wherever located, including but not limited to, machinery and
machine  tools  with motors, controls, attachments, parts, tools and accessories
incidental  thereto,  all  present  and future furniture, furnishings, fixtures,
motor vehicles, tools, drawings, blueprints, catalogs and computer programs; and
all attachments, accessories, accessions, replacements, substitutions, additions
and  improvements  thereto, wherever located, as well as Debtor's Books relating
to  any  of  the  foregoing.

     "Event of Default" means the occurrence of any one of the events set forth
in Section 7 of this Agreement.

     "General Intangibles" means and includes all of Debtor's presently existing
and hereafter acquired or arising general intangibles and other personal
property (including, without limitation, any and all choses in action, licenses,
leasehold interests, equity interests (including equity interests in
subsidiaries, partnerships and joint ventures), goodwill, intellectual property
of any kind (including patents, copyrights, trademarks, trade names and service
marks), blueprints, drawings, purchase orders, customer lists, monies due or
recoverable from pension funds, monies due or recoverable from factors, route
lists,  infringement claims, software source codes, computer programs and disks,
literature, reports, catalogs, deposit accounts, tax refunds and tax refund
claims, together with the proceeds and products of any of the foregoing, as well
as Debtor's Books relating to any of the foregoing.

     "Inventory" means and includes all of Debtor's present and hereafter
acquired inventory in which Debtor has any interest, including goods held for
sale or lease or to be furnished under a service contract, and all of Debtor's
present and future goods, parts, raw materials, work in process, finished goods
and supplies that are or might be used in connection with the manufacture,
packing, shipping advertising, selling or finishing of such goods, as well as
Debtor's Books relating to any of the foregoing.

     "Negotiable Collateral" means and includes all of Debtor's presently
existing and hereafter acquired or arising letters of credit, advices of credit,
promissory notes, drafts, instruments, documents, leases of personal property
and chattel paper, as well as Debtor's Books relating to any of the foregoing

     "Obligations" means and includes any and all liabilities and indebtedness
owing by Debtor to Secured Party pursuant to the Note, including, without
limitation, all interest and other payments required thereunder that are not
paid when due, and all of the Secured Party Expenses which Debtor is required to
pay or reimburse by this Agreement, by law, or otherwise.

     "Secured Party Expenses" means and includes (i) all costs or expenses
required to be paid by Debtor under this Agreement that are instead paid or
advanced by Secured Party; (ii) all costs and expenses incurred to correct any
default or enforce any provision of this Agreement, or in gaining possession of,
maintaining, handling, preserving, storing, shipping, selling, preparing for
sale and/or advertising to sell the Collateral, irrespective of whether a sale
is consummated; and (iii) all costs and expenses (including reasonable
attorney's fees) incurred by Secured Party in enforcing or defending this
Agreement, irrespective of whether suit is brought.

     "Senior Lender" means Silicon Valley Bank, in connection with that certain
Accounts Receivable Purchase Agreement dated as of June 29, 2004, as amended
from time to time, and

<PAGE>
its successors and assigns or any other person or entity who provides funds to
Debtor to refinance, refund or replace such Accounts Receivable Purchase
Agreement.

     "Senior Liens" means the liens, security interests and other encumbrances
in favor of Senior Lender.

     2.     Construction.  Unless the context of this Agreement clearly requires
            ------------
otherwise, references to the plural include the singular and vice versa, to the
part include the whole, "including" is not limiting, and "or" has the inclusive
meaning represented by the phrase "and/or."  References in this Agreement to a
"determination" by Secured Party include reasonable, good faith estimates by
Secured Party (in the case of quantitative determinations) and reasonable, good
faith beliefs by Secured Party (in the case "of qualitative determinations).
The words "hereof," "herein," "hereby," "hereunder," and similar terms in this
Agreement refer to this Agreement as a whole and not to any particular provision
of this Agreement.  Section references are to this Agreement, unless otherwise
specified.

     3.     Creation of Security Interest.
            -----------------------------

     3.1     Grant of Security Interest.  In order to secure Debtor's  timely
             --------------------------
payment of the Obligations and timely performance of each and all of its
covenants and obligations under this Agreement and any other document,
instrument or agreement executed by Debtor and/or delivered by Debtor to Secured
Party in connection with the Obligations (other than in connection with a
conversion of the Note), Debtor hereby grants to Secured Party a continuing
security interest in all presently existing and hereafter acquired or arising
Collateral.  Such security interest in the Collateral shall (i) be a
first-priority security interest except as to the Senior Liens] and (ii) attach
to all Collateral without further act on the part of Secured Party or Debtor.

     3.2     Rights as to Inventory and Accounts.  Unless an Event of Default
             -----------------------------------
under this Agreement has occurred and is continuing, Debtor may, subject to the
provisions hereof and consistent herewith, (i) sell the Inventory and enter into
licenses with respect to its property, but in each case only in the ordinary
course of Debtor's business, and (ii) sell the Accounts to Senior Lender.  A
sale of Inventory in Debtor's ordinary course of business does not include an
exchange or a transfer in partial or total satisfaction of a debt owing by
Debtor, nor does it include an exchange for less than the lower of cost or fair
market value.

     4.     Insurance.  Debtor, at its expense, shall keep and maintain the
            ---------
Inventory and Equipment insured against loss or damage by fire, theft,
explosion, sprinklers and all other hazards and risks and in such amounts as are
ordinarily insured against by other owners of such properties in similar
businesses.  Debtor shall also keep and maintain public liability and property
damage insurance relating to Debtor's ownership and use of the Inventory and
Equipment and its other assets.  At the request of Secured Party, all such
policies of insurance (except those of public liability and property damage)
shall contain an endorsement, in a form satisfactory to Secured Party, showing
Secured Party as loss payee thereof (except to the extent necessary to reflect
the Senior Liens), and all proceeds payable thereunder shall be payable to

                                                                               3
<PAGE>
Secured Party (subject to the Senior Liens). At the request of Secured Party,
each such insurer shall agree (by endorsement upon the policy or policies of
insurance issued by it to Debtor or by independent instruments) that it will
give Secured Party at least thirty (30) days written notice before any such
policy or policies of insurance will be altered or cancelled, and that no act or
default of Debtor, or any other person, shall affect the right of Secured Party
to recover under such policy or policies of insurance or to pay any premium in
whole or in part relating thereto.

     5.     Further Assurances.
            ------------------

     5.1     General.  Following the Closing, Secured Party is authorized to
             -------
file a UCC-1 Financing Statement with the Secretary of State of the State of
Nevada evidencing Secured Party' security interest in the Collateral.  Debtor
also authorizes the filing by Secured Party of such other UCC financing
statements, continuation financing statements, fixture filings, security
agreements, chattel mortgages, assignments and other documents as Secured Party
may reasonably require in order to perfect and maintain Secured Party's security
interests in the Collateral and in order to fully consummate all of the
transactions contemplated under this Agreement; provided, however, unless
specifically required by this Agreement or the Note, (i) Debtor shall not be
required to execute or deliver (A) possession of any of the Collateral, (B) any
agreements providing for control with respect to any of the Collateral or (C)
any agreements providing for acknowledgment by any third party, such as a
bailee, of Secured Party's security interests in the Collateral (other than the
SVB Subordination Agreement and the Designa Subordination Agreement) and (ii)
Secured Party will make no filing or recordation with respect to the Collateral
with the United States Patent and Trademark Office or the United States
Copyright Office.  Subject to the foregoing, if so requested by Secured Party at
any time hereafter, Debtor shall promptly execute and deliver such fixture
filings, security agreements, chattel mortgages, assignments and other documents
that Secured Party may reasonably require from Debtor.  Debtor hereby
irrevocably makes, constitutes and appoints Secured Party (and any of Secured
Party's employees or agents designated by Secured Party ) as Debtor's true and
lawful attorney with power, upon Debtor's failure or refusal to promptly comply
with its obligations in this Section 5.1, to sign the name of Debtor on any of
the above-described documents or on any other similar documents which need to be
executed, recorded and/or filed in order to perfect or maintain Secured Party's
security interests in the Collateral.

     5.2     Additional Matters.  Without limiting the generality of Section
             ------------------
5.1, Debtor will (i) at the reasonable request of Secured Party, appear in and
defend any action or proceeding which may affect Debtor's title to, or the
security interests of Secured Party in, the Collateral (other than action
brought by Senior Lender) and (ii) promptly furnish to Secured Party, from time
to time, such reports in connection with the Collateral as Secured Party may
reasonably request, all in reasonable detail, including reports describing the
Equipment and Inventory, specifying the locations at which the Equipment and
Inventory are based and setting forth the then current location of Debtor's
Books pertaining to the Collateral.

     5.3     Accounts and Negotiable Collateral.  In the event that any portion
             ----------------------------------
of the Collateral, including proceeds, is evidenced by or consists of Accounts
and/or Negotiable Collateral as to which no Senior Lien exists, Debtor shall,
immediately upon request therefore

                                                                               4
<PAGE>
from Secured Party, endorse (where appropriate) and assign such Accounts and/or
Negotiable Collateral over to Secured Party, and deliver actual physical
possession of the Accounts and/or Negotiable Collateral to Secured Party in
order to perfect fully the security interest therein (subject to the Senior
Liens).

     6.     Warranties, Representations and Covenants.  Debtor warrants,
            -----------------------------------------
represents, covenants and agrees as follows:

     6.1     No Other Encumbrances.  Debtor has good and marketable title to the
             ---------------------
Collateral, free and clear of any liens, claims, encumbrances and rights of any
kind except the Senior Liens.

     6.2     Merchantable Inventory.  Except for defects arising in the ordinary
             ----------------------
and usual course of business, all Inventory is now and at all times hereafter
shall be of good and merchantable quality.

     6.3     Storage of Inventory.  The Inventory is not now and shall not at
             --------------------
any time hereafter be stored with a bailee, warehouseman or similar party,
unless Debtor has given fifteen (15) days prior written notice to Secured Party
specifying the name and address of such entity and, in such event, Debtor shall,
unless a Permitted Interest therein then exists, concurrently therewith, cause
any such bailee, warehouseman or similar party to issue and deliver to Secured
Party (in a form acceptable to Secured Party) warehouse receipts in Secured
Party's name evidencing the storage of the Inventory.

     6.4     Inventory Records.  Debtor now keeps, and at all times hereafter
             -----------------
shall keep, correct and accurate records itemizing and describing the kind,
type, quality and quantity of the Inventory and Debtor's cost therefor.  All of
such records shall be available upon demand to any of Secured Party's agents and
employees for inspection and copying during normal business hours and upon
reasonable advance notice.

     6.5     Right to Inspect Inventory and Equipment.  Secured Party shall have
             ----------------------------------------
the right, during Debtor's usual business hours and upon reasonable advance
notice, to inspect and examine the Inventory and the Equipment and to check and
test the same as to quality, quantity value and condition.  Debtor agrees that
any reasonable expenses incurred by Secured Party in connection with this
Section 6.5 shall constitute Secured Party Expenses.

     6.6     Title to Equipment.  Upon Secured Party's request, Debtor shall
             ------------------
immediately deliver to Secured Party, properly endorsed, any and all evidences
of ownership of or title to any items of Debtor's Equipment (provided no Senior
Liens shall then exist ).

     6.7     Maintenance of Equipment.  Debtor shall keep and maintain the
             ------------------------
Equipment in good operating condition and repair, and shall make all necessary
replacements thereto, so that the value and operating efficiency thereof shall
at all times be maintained and preserved consistent with reasonable business
practices.

                                                                               5
<PAGE>
     6.8     Negative Covenants.  Debtor shall not (i) sell, lease, or otherwise
             ------------------
dispose of,  relocate or transfer, whether by sale or otherwise, any of Debtor's
assets other than transfers of Accounts to the Senior Lender and/or sales of
Inventory and licenses of property in the ordinary course of Debtor's business,
(ii) allow any liens on the Collateral except the Senior Liens and liens created
by this Agreement or (iii) change Debtor's name or add any new fictitious name
without providing Secured Party with forty-five (45) days prior written notice.

     6.9     Relocation of Principal Place of Business.  The principal place of
             -----------------------------------------
business of Debtor is at the address indicated in Section 10, and Debtor shall
not, during the term of this Agreement, without prior written notification to
Secured Party, relocate such principal place of business.

     6.10     Further Information.  Debtor shall promptly supply Secured Party
              -------------------
with such  information concerning Debtor's business as Secured Party may
reasonably request from time to time hereafter, and shall promptly notify
Secured Party of any material adverse change in Debtor's financial condition or
any event which constitutes an Event of Default.

     6.11     Solvency.  Debtor is now and shall be at all times hereafter able
              --------
to pay its debts (including trade debts) as they mature.

     6.12     Secured Party Expenses.  Debtor shall within ten (10) days of
              ----------------------
written demand, reimburse Secured Party for all sums expended by Secured Party
which constitute Secured Party Expenses and, in the event that Debtor does not
pay Secured Party Expenses payable to a third party within ten (10) days after
notice thereof, then Secured Party may immediately and without further notice
pay such Secured Party Expenses on Debtor's behalf, and Debtor hereby authorizes
and approves all advances and payments by Secured Party for items constituting
such Secured Party Expenses.

     6.13     Reliance by Secured Party; Representations Cumulative.  Each
              -----------------------------------------------------
warranty, representation and agreement contained in this Agreement shall be
conclusively presumed to have been relied on by Secured Party regardless of any
investigation made or information possessed by Secured Party.  The warranties,
representations and agreements set forth herein shall be cumulative and in
addition to any and all other warranties, representations and agreements which
Debtor shall now or hereafter give, or cause to be given, to Secured Party.

     7.     Events of Default.  The occurrence of any Event of Default under the
            -----------------
Note, after the expiration of any applicable cure period, shall constitute an
"Event of Default" by Debtor under this Agreement.

     8.     Rights and Remedies.
            -------------------

     8.1     Secured Party' Rights and Remedies.
             ----------------------------------

     (a)     Upon the occurrence and during the continuance of an Event of
Default, without notice of election and without demand (but subject to the
rights of the holders of Senior Liens),

                                                                               6
<PAGE>
Secured Party, upon the written consent and direction of Secured Party, may
cause any one or more of the following to occur, all of which are authorized by
Debtor:

          (i)     Secured Party may make such payments and do such acts as it
considers necessary or reasonable to protect its security interests in the
Collateral.  Debtor agrees to assemble and make available the Collateral if
Secured Party so requires.  Subject to the Senior Liens, Debtor authorizes
Secured Party to enter the premises where the Collateral is located, take and
maintain possession of the Collateral, or any part thereof, and pay, purchase,
contest or compromise any encumbrance, claim, right or lien (other than the
Senior Liens) which, in the opinion of Secured Party or its assignee, appears to
be prior or superior to Secured Party's security interests, and to pay all
expenses incurred in connection therewith;

          (ii)     Secured Party shall be automatically deemed to be granted a
license or other right to use, without charge, Debtor's labels, patents,
copyrights, rights of use of any name, trade secrets, trade names, trademarks
and advertising matter, and any other property of a similar nature, as it
pertains to the Collateral, in completing production of, advertising for sale
and selling any Collateral;

          (iii)     Secured Party may ship, reclaim, recover, store, finish,
maintain, repair, prepare for sale, advertise for sale and sell (in the manner
provided for herein) the Collateral;

          (iv)     Secured Party may sell the Collateral at either a public or
private sale, or both, by way of one or more contracts or transactions, for cash
or on terms, in such manner and at such places (including Debtor's premises) as
is commercially reasonable (it not being necessary that the Collateral be
present at any such sale);

          (v)     Secured Party shall be entitled to give notice of the
disposition of the Collateral as follows:  (A) Secured Party shall give Debtor a
notice in writing of the time and place of public sale, or, if the sale is a
private sale or some other disposition other than a public sale is to be made of
the Collateral, the time on or after which the private sale or other disposition
is to be made, (B) the notice shall be personally delivered or mailed, postage
prepaid, to Debtor at least ten (10) calendar days before the date fixed for the
sale, or at least five (5) calendar days before the date on or after which the
private sale or other disposition is to be made, unless the Collateral is
perishable or threatens to decline speedily in value and (C) if the sale is to
be a public sale, Secured Party shall also give notice of the time and place by
publishing a notice one time at least five (5) calendar days before the date of
the sale in a newspaper of general circulation, if one exists, in the county in
which the sale is to be held; and

          (vi)     Secured Party may credit bid and purchase all or any portion
of the Collateral at any public sale.

     (b)     Upon demand, Debtor shall pay all the Secured Party Expenses
incurred in connection with the enforcement and exercise of any of the rights
and remedies of Secured Party provided for herein, irrespective of whether suit
is commenced.  Any deficiency which exists after disposition of the Collateral
as provided herein will be paid immediately by Debtor, and any

                                                                               7
<PAGE>
excess that exists will be returned, without interest and subject to the rights
of third parties, to Debtor by Secured Party.

     8.2     Rights and Remedies Cumulative.  The rights and remedies of Secured
             ------------------------------
Party under this Agreement and any other agreements and documents delivered
and/or executed in connection with the Obligations shall be cumulative.  Secured
Party shall also have all other rights and remedies not inconsistent herewith as
are provided under applicable law, or in equity.  No exercise by Secured Party
of one right or remedy shall be deemed an election, and no waiver by Secured
Party of any default on Debtor's part shall be deemed a continuing waiver.  No
delay by Secured Party shall constitute a waiver, election or acquiescence.

     9.     Additional Waivers.  Secured Party shall not in any way or manner be
            ------------------
liable or responsible for (i) the safekeeping of the Collateral, (ii) any loss
or damage thereto occurring or arising in any manner or fashion from any cause,
(iii) any diminution in the value thereof or (iv) any act or default of any
carrier, warehouseman, bailee, forwarding agency or other person whomsoever.

     10.     Notices.  All notices or demands by any party relating to this
             -------
Agreement shall be made in writing as provided in Section 8(f) of the Securities
Purchase Agreement.

     11.     Choice of Law.  The validity of this Agreement, its construction,
             -------------
interpretation and enforcement, and the rights of the parties hereunder and
concerning the Collateral, shall be determined under, governed by, and construed
in accordance with the laws of the State of California.

     12.     Waiver of Jury Trial.  Debtor and Secured Party each waive any
             --------------------
right to trial by jury in any action or proceeding relating to this Agreement.

     13.     General Provisions.
             ------------------

     13.1     Effectiveness.  This Agreement shall be binding and deemed
              -------------
effective when executed by Debtor and Secured Party.

     13.2     Successors and Assigns.  This Agreement shall bind and inure to
              ----------------------
the benefit of the respective successors and permitted assigns of Secured Party.
Debtor shall not assign this Agreement or any rights hereunder, and any such
assignment shall be absolutely void.

     13.3     Section Headings.  Section headings are for convenience only.
              ----------------

     13.4     Interpretation.  Neither this Agreement nor any uncertainty or
              --------------
ambiguity herein shall be construed or resolved against Secured Party or Debtor,
whether under any rule of construction or otherwise.  On the contrary, this
Agreement has been reviewed by all parties and shall be construed and
interpreted according to the ordinary meaning of the words used so as to fairly
accomplish the purposes and intentions of the parties.

                                                                               8
<PAGE>
     13.5     Severability of Provisions.  Each provision of this Agreement
              --------------------------
shall be severable from every other provision of this Agreement for the purpose
of determining the legal enforceability of any specific provision.

     13.6     Entire Agreement; Amendments.  This Agreement and the documents
              ----------------------------
referenced herein contain the entire understanding of the parties with respect
to the matters covered herein and supercede all prior agreements, negotiations
and understandings, written or oral, with respect to such subject matter.  No
provision of this Agreement shall be waived or amended other than by an
instrument in writing signed by Debtor and Secured Party.

     13.7     Good Faith.  The parties intend and agree that their respective
              ----------
rights, duties, powers, liabilities and obligations shall be performed, carried
out, discharged and exercised reasonably and in good faith.

     13.8     Counterparts.  This Agreement may be executed in any number of
              ------------
counterparts, each of which, when executed and delivered, shall be deemed to be
an original, and all of which, when taken together, shall constitute but one and
the same agreement.

     13.9     Senior Liens.  Notwithstanding anything in this Agreement to the
              ------------
contrary, the rights and remedies of Secured Party hereunder with respect to the
Collateral are subject to the prior rights and remedies of the holder of the
Senior Liens, and Debtor shall not be in violation of this Agreement for taking
actions or failing to take actions with respect to the Collateral if such
actions are expressly required or prohibited, as applicable, by the documents
evidencing  the Senior Liens.

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed by their respective authorized persons on the date first written
above.

                                 RAPIDTRON, INC.

                                 By:
                                     President

                                 By:
                                     Secretary

                                 OCEANUS  VALUE  FUND,  L.P.
                                 By:  Oceanus  Asset  Management,  L.L.C.,
                                      General  Partner

                                 By:
                                     ----------------------------
                                     John  C.  Tausche,  Member

                                                                               9
<PAGE>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. 1                       Number of Shares: 800,000

                       Date of Issuance: December 1, 2004

     Rapidtron,  Inc.,  a  Nevada  corporation (the "Company"), hereby certifies
that,  for  value received, Oceanus Value Fund, L.P., 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) 800,000
fully  paid  and nonassessable shares of Common Stock (as defined herein) of the
Company  (each  a  "Warrant  Share"  and collectively the "Warrant Shares") at a
purchase  price  (the  "Warrant  Exercise  Price")  equal  to  $0.33  per share;
provided,  however,  that  one (1) time prior to the Expiration Date, the Holder
shall  have  the  right,  upon  written notice to the Company (the "Notice"), to
reset the Warrant Exercise Price to an amount equal to  the closing price of the
Common Stock on the trading day immediately preceding the date of the Notice (as
specified  in  the  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.  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 $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.

                                        1
<PAGE>
     "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.

     "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  Securities  Purchase
Agreement  between  the  Holder (or its predecessor in interest) and the Company
for  the  purchase  of  this Warrant and the other Securities (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

                                        2
<PAGE>
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  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.

                                        3
<PAGE>
     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  nonassessable.  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.

     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

                                        4
<PAGE>
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  the Registration Rights Agreement
entered  into concurrently therewith (the "Registration Rights 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 and the Registration Rights 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.

     (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.

                                        5
<PAGE>
     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 Section 8(f) of the Securities Purchase
Agreement  (with Holder being defined therein as the "Buyer").  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  Kansas, 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  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
Sections  8 and 12 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.

                                        6
<PAGE>
                                 RAPIDTRON, INC.

                                 By:_____________________
                                        President
                                 By:

                                        Secretary

                                    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 U.S.
$__________ (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 1933 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:
                                              --------------------------

                                        7
<PAGE>

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