Document:

NEITHER
      THE
      WARRANTS
      REPRESENTED BY THIS CERTIFICATE NOR
      THE SHARES OF COMMON STOCK HAVE
      BEEN
      REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“1933
      ACT”),
      OR ANY STATE SECURITIES
      LAWS AND NEITHER SUCH SHARES NOR ANY INTEREST THEREIN MAY BE OFFERED, SOLD,
      PLEDGED, ASSIGNED OR OTHERWISE TRANSFERRED UNLESS (1) A REGISTRATION STATEMENT
      WITH RESPECT THERETO IS EFFECTIVE UNDER THE 1933 ACT,
      OR (2) PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE 1933
      ACT
      AND ANY APPLICABLE STATE SECURITIES LAWS
      AND THE COMPANY SHALL HAVE RECEIVED AN OPINION OF COUNSEL ACCEPTABLE TO THE
      COMPANY AS TO SUCH EXEMPTION.

    

    IN
      ADDITION, A SECURITIES PURCHASE AGREEMENT DATED AS OF SEPTEMBER 15, 2006, AS
      AMENDED (THE “PURCHASE AGREEMENT”), A COPY OF WHICH MAY BE OBTAINED FROM THE
      COMPANY AT ITS PRINCIPAL EXECUTIVE OFFICE, CONTAINS CERTAIN ADDITIONAL
      AGREEMENTS BETWEEN THE PARTIES WITH RESPECT TO THIS
      WARRANT.

    
       

      
        

      

    

    

    SCIENCE
      DYNAMICS CORPORATION

    

    COMMON
      STOCK PURCHASE WARRANT “B”

    

    
      	
              Number
                of Shares: 125,000,000

            	 	
              Holder:
                Barron Partners LP

            
	 	 	
              c/o
                Barron Capital Advisors LLC

            
	 	 	 
	
              Original
                Issue Date: September 19, 2006

            	 	
              Managing
                Partner

            
	 	 	
              Attn:
                Andrew Barron Worden

            
	 	 	
              730
                Fifth Avenue, 259th Floor

            
	 	 	 
	
              Expiration
                Date: September 19, 2011

            	 	
              New
                York NY 10019

            
	 	 	
              tel
                212-359-0200

            
	 	 	 
	
              Exercise
                Price per Share: $.125

            	 	
              fax
                212-359-0222

            

    

     

    Science
      Dynamics Corporation, a Delaware corporation (the “Company”),
      hereby certifies that, for value received, BARRON
      PARTNERS LP,
      or
      registered assigns (the “Warrant
      Holder”),
      is
      entitled, subject to the terms set forth below, to purchase from the Company
      up
      to one
      hundred twenty five million (125,000,000)
      shares (as adjusted from time to time as provided in Section 7 of this Warrant,
      the “Warrant
      Shares”)
      of
      common stock, $.01 par value (the “Common
      Stock”),
      of
      the Company at a price of twelve and one-half cents ($.125) per Warrant Share
      (as adjusted from time to time as provided in Section 7, the “Exercise
      Price”),
      at
      any time and from time to time from and after the date thereof and through
      and
      including 5:00 p.m. New York City time on September
      19, 2011
      (the
“Expiration Date”), and subject to the following terms and
      conditions:

     

    1. Registration
      of Warrant.
      The
      Company shall register this Warrant upon records to be maintained by the Company
      for that purpose (the “Warrant
      Register”),
      in
      the name of the record Warrant Holder hereof from time to time. The Company
      may
      deem and treat the registered Warrant Holder of this Warrant as the absolute
      owner hereof for the purpose of any exercise hereof or any distribution to
      the
      Warrant Holder, and for all other purposes, and the Company shall not be
      affected by notice to the contrary.

    
      
        
        

      

      
        
        

        
          

        

      

       

    

     

    2. Investment
      Representation.
      The
      Warrant Holder by accepting this Warrant represents that the Warrant Holder
      is
      acquiring this Warrant for its own account or the account of an affiliate
that
      is
      an accredited investor which has been identified to and approved by (such
      approval not to be unreasonably withheld or delayed) for
      investment purposes and not with the view to any offering or distribution and
      that the Warrant Holder will not sell or otherwise dispose of this Warrant
      or
      the underlying Warrant Shares in violation of applicable securities laws. The
      Warrant Holder acknowledges that the certificates representing any Warrant
      Shares will bear a legend indicating that they have not been registered under
      the 1933
      Act,
      and may
      not be sold by the Warrant Holder except pursuant to an effective registration
      statement or pursuant to an exemption from registration requirements of the
      1933
      Act and in accordance with federal and state securities laws. If this Warrant
      was acquired by the Warrant Holder pursuant to the exemption from the
      registration requirements of the 1933 Act afforded by Regulation S thereunder,
      the Warrant Holder acknowledges and covenants that this Warrant may not be
      exercised by or on behalf of a Person during the one year distribution
      compliance period (as defined in Regulation S) following the date hereof.
“Person”
      means an
      individual, partnership, firm, limited liability company, trust, joint venture,
      association, corporation, or any other legal entity.

     

    3. Validity
      of Warrant and Issue of Shares.
      The
      Company represents and warrants that this Warrant has been duly authorized
      and
      validly issued and warrants and agrees that all of Common Stock that may be
      issued upon the exercise of the rights represented by this Warrant will, when
      issued upon such exercise, be duly authorized, validly issued, fully paid and
      nonassessable and free from all taxes, liens and charges with respect to the
      issue thereof
      other
      than those incurred by the Holder.
      The
      Company further warrants and agrees that during the Exercise
      Period,
      the
      Company will at all times have authorized and reserved a sufficient number
      of
      Common Stock to provide for the exercise of the rights represented by this
      Warrant.

     

    4. Registration
      of Transfers and Exchange of Warrants.

     

    (a) Subject
      to compliance with the federal
      and state securities laws,
      the
      Company shall register the transfer of any portion of this Warrant in the
      Warrant Register, upon surrender of this Warrant with the Form of Assignment
      attached hereto duly completed and signed, to the Company at the office
      specified in or pursuant to Section 12. Upon any such registration or transfer,
      a new warrant to purchase Common Stock, in substantially the form of this
      Warrant (any such new warrant, a “New
      Warrant”),
      evidencing the portion of this Warrant so transferred shall be issued to the
      transferee and a New Warrant evidencing the remaining portion of this Warrant
      not so transferred, if any, shall be issued to the transferring Warrant Holder.
      The acceptance of the New Warrant by the transferee thereof shall be deemed
      the
      acceptance of such transferee of all of the rights and obligations of a Warrant
      Holder of a Warrant.

     

    (b) This
      Warrant is exchangeable, upon the surrender hereof by the Warrant Holder to
      the
      office of the Company specified in or pursuant to Section 9 for one or more
      New
      Warrants, evidencing in the aggregate the right to purchase the number of
      Warrant Shares which may then be purchased hereunder. Any such New Warrant
      will
      be dated the date of such exchange.

    
      
        
        

      

      
        
        

        
          

        

      

       

    

    5. Exercise
      of Warrants.

     

    (a) Upon
      surrender of this Warrant with the Form of Election to Purchase attached hereto
      duly completed and signed to the Company, at its address set forth in Section
      12, and upon payment and delivery of the Exercise Price per Warrant Share
      multiplied by the number of Warrant Shares that the Warrant Holder intends
      to
      purchase hereunder, in lawful money of the United States of America,
by
      wire
      transfer
      or by
      certified or official bank check or checks, to the Company, all as specified
      by
      the Warrant Holder in the Form of Election to Purchase, the Company shall
      promptly (but in no event later than 7 business days after the Date of Exercise
      (as defined herein)) issue or cause to be issued and cause to be delivered
      to or
      upon the written order of the Warrant Holder and in such name or names as the
      Warrant Holder may designate (subject to the restrictions on transfer described
      in the legend set forth on the face of this Warrant), a certificate for the
      Warrant Shares issuable upon such exercise, with such restrictive legend as
      required by the 1933 Act. Any person so designated by the Warrant Holder to
      receive Warrant Shares shall be deemed to have become holder of record of such
      Warrant Shares as of the Date of Exercise of this Warrant.

     

    (b) A
“Date
      of Exercise” means the date on which the Company shall have received (i) this
      Warrant (or any New Warrant, as applicable), with the Form of Election to
      Purchase attached hereto (or attached to such New Warrant) appropriately
      completed and duly signed, and (ii) payment of the Exercise Price for the number
      of Warrant Shares so indicated by the Warrant Holder to be
      purchased.

     

    (c) This
      Warrant shall be exercisable at any time and from time to time
      during
      the Exercise Period
      for such
      number of Warrant Shares as is indicated in the attached Form of Election To
      Purchase. If less than all of the Warrant Shares which may be purchased under
      this Warrant are exercised at any time, the Company shall issue or cause to
      be
      issued, at its expense, a New Warrant evidencing the right to purchase the
      remaining number of Warrant Shares for which no exercise has been evidenced
      by
      this Warrant.

     

    (d) (i) Notwithstanding
      anything contained herein to the contrary,
      but
      subject to
      Section
      5(e) and
      Section
      6, the holder of this Warrant may, at its election exercised in its sole
      discretion, exercise this Warrant in whole or in part and, in lieu of making
      the
      cash payment otherwise contemplated to be made to the Company upon such exercise
      in payment of the Aggregate Exercise Price, elect instead to receive upon such
      exercise the “Net
      Number”
of
      shares of Common Stock determined according to the following formula (a
“Cashless
      Exercise”):

     

    Net
      Number = (A x (B - C))/B

     

    (ii) For
      purposes of the foregoing formula:

     

    A=
      the
      total number shares with respect to which this Warrant is then being
      exercised.

     

    B=
      the
      last reported sale price (as reported by Bloomberg) of the Common Stock on
      the
      trading day immediately preceding the date of the Exercise Notice.

     

    C=
      the
      Warrant Exercise Price then in effect at the time of such
      exercise.

    
      
        
        

      

      
        
        

        
          

        

      

       

    

     

    (e) The
      holder of this Warrant may
      not
make
      a
      Cashless Exercise (i)
      during the nine (9) months following the Original Issue Date and (ii) thereafter
      if the sale by the Holder of the Warrant Shares is covered by
      an
      effective registration statement.

     

    6. Maximum
      Exercise.
      The
      Warrant Holder shall not be entitled to exercise this Warrant
      on a Date of Exercise in connection with that number of shares of Common Stock
      which would be in excess of the sum of (i) the number of shares of Common Stock
      beneficially owned by the Warrant Holder and its affiliates on the
      Date
      of Exercise,
      and
      (ii) the number of shares of Common Stock issuable upon the exercise of this
      Warrant with respect to which the determination of this limitation is being
      made
      on an Date
      of
      Exercise,
      which
      would result in beneficial ownership by the Warrant Holder and its affiliates
      of
      more than 4.9% of the outstanding shares of Common Stock on such date. This
      Section 6 may be not be waived or amended. As used in this Warrant, beneficial
      ownership shall be determined in accordance with Section 13(d) of the Securities
      Exchange Act of 1934, as amended, and Regulation 13d-3 thereunder.

     

    7. Adjustment
      of Exercise Price and Number of Shares.
      The
      character of the shares of stock or other securities at the time issuable upon
      exercise of this Warrant and the Exercise Price therefore, are subject to
      adjustment upon the occurrence of the following events, and all such adjustments
      shall be cumulative:

     

    (a) Adjustment
      for Stock Splits, Stock Dividends, Recapitalizations, Etc.
      The
      Exercise Price of this Warrant and the number of shares of Common Stock or
      other
      securities at the time issuable upon exercise of this Warrant shall be
      appropriately adjusted to reflect any stock dividend, stock split, stock
      distribution, combination
      of shares,
      reverse
      split,
      reclassification, recapitalization or other similar event affecting the number
      of outstanding shares of stock or securities.

     

    (b) Adjustment
      for Reorganization, Consolidation, Merger, Etc.
      In case
      of any consolidation or merger of the Company with or into any other
      corporation, entity or person, or any other corporate reorganization, in which
      the Company shall not be the continuing or surviving entity of such
      consolidation, merger or reorganization (any such transaction being hereinafter
      referred to as a “Reorganization”),
      then, in
      each case, the holder of this Warrant, on exercise hereof at any time after
      the
      consummation or effective date of such Reorganization (the “Effective
      Date”),
      shall
      receive, in lieu of the shares of stock or other securities at any time issuable
      upon the exercise of the Warrant issuable on such exercise prior to the
      Effective Date, the stock and other securities and property (including cash)
      to
      which such holder would have been entitled upon the Effective Date if such
      holder had exercised this Warrant immediately prior thereto (all subject to
      further adjustment as provided in this Warrant).

     

    (c) Certificate
      as to Adjustments.
      In case
      of any adjustment or readjustment in the price or kind of securities issuable
      on
      the exercise of this Warrant, the Company will promptly give written notice
      thereof to the holder of this Warrant in the form of a certificate, certified
      and confirmed by the Board of Directors of the Company, setting forth such
      adjustment or readjustment and showing in reasonable detail the facts upon
      which
      such adjustment or readjustment is based.

     

    (d) Sales
      of Common Stock at less than the Exercise Price. From
      the
      date hereof until such time as Barron Partners LP holds no Securities, as
      defined in the Purchase Agreement, except for (i) Exempt Issuances, as defined
      in the Purchase Agreement, (ii) issuances
      covered by Sections 7(a), 7(b) and 7(e) hereof or (iii) an issuance of Common
      Stock upon exercise or upon conversion of warrants, options or other convertible
      securities for which an adjustment has already been made pursuant to this
      Section 7,
      as to
      all of which this Section 7(d) does not apply, if the Company closes on the
      sale
      or issuance of Common Stock at a price, or warrants, options, convertible debt
      or equity securities with a exercise price per share or exercise price per
      share
      which is less than the Exercise Price then in effect (such lower sales price,
      conversion or exercise price, as the case may be, being referred to as the
      “Lower Price”), the Exercise Price in effect from and after the date of such
      transaction shall be is reduced to the Lower Price. For purpose of determining
      the exercise price of warrants, the price, if any, paid per share for the
      warrants shall be added to the exercise price of the warrants. 

    
      
        
        

      

      
        
        

        
          

        

      

       

    

     

    (e) Price
      Adjustments
      Based on EBITDA Per
      Share.
      

     

    
      	 	
              i.

            	
              In
                the event the Company’s consolidated EBITDA for the year ended December
                31, 2006 is less than $.0019 per share on a fully-diluted basis,
                then the
                Exercise Price shall be reduced by the percentage shortfall, up to
                a
                maximum of 30%. Thus, if EBITDA per share for the year ended December
                31,
                2006 is $.00133 per share on a fully-diluted basis, the Exercise
                Price
                shall be reduced by 30%. Such
                reduction shall be made at the time the Company files its Form 10-KSB
                for
                the year ended December 31, 2006, and shall apply to this Warrant
                based on
                the number of shares of Common Stock issuable upon exercise of this
                Warrant on the date the Form 10-KSB is filed, or, if not filed on
                time, on
                the date that filing was required.
                For purpose of this Section, EBITDA shall be based on net income
                plus
                (A)
                any charges relating to the transaction contemplated by the Purchase
                Agreement, the Note, as defined in the Purchase Agreement, and the
                Registration Rights Agreement
                plus (B) any non-recurring items other than those referred to in
                clause
                (C) of this Section 7(e)(i), minus (C) any Earn-Out Payment, as defined
                in
                the RTI Agreement, or comparable payments to the former stockholders
                of
                RTI which, in the aggregate, are in excess of
                $750,000.

            

    

     

    
      	 	
              ii.

            	
              In
                the event the Company’s consolidated EBITDA for the year ended December
                31, 2007 is less than $.00549 per share on a fully-diluted basis,
                then the
                Exercise Price shall be reduced by the percentage shortfall, up to
                a
                maximum of 30%. Thus, if EBITDA for the year ended December 31, 2007
                is
                $.003843 per share on a fully-diluted basis, the Exercise Price shall
                be
                reduced by 30%. Such
                reduction shall be made at the time the Company files its Form 10-KSB
                for
                the year ended December 31, 2007, and shall apply to this Warrant
                based on
                the number of shares of Common Stock issuable upon exercise of this
                Warrant on the date the Form 10-KSB is filed, or, if not filed on
                time, on
                the date that filing was required.

            

    

     

    
      	 	
              iii.

            	
              For
                purpose of determining EBITDA Per Share on a fully-diluted basis,
                all
                shares of Common Stock issuable upon conversion of convertible securities
                and upon exercise of warrants and options shall be deemed to be
                outstanding, regardless of whether (i) such shares are treated as
                outstanding for determining diluted earnings per share under GAAP,
                (ii)
                such securities are “in the money,” or (iii) such shares may be issued as
                a result of the 4.9% Limitation. The per share amounts set forth
                in this
                Section 7(e) shall be adjusted in accordance with GAAP to reflect
                any
                stock dividend, split, distribution, reverse split or combination
                of
                shares or other recapitalization.

            

    

     

    
      	 	
              iv.

            	
              An
                adjustment pursuant to Sections 7(d) or 7(e) of this Warrant shall
                not
                affect the number of shares of Common Stock issuable upon exercise
                of this
                Warrant.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

       

    

     

    (f)
      Price
      Adjustment if the Certificate of Amendment is not timely filed.
In
      the
      event that the Restated
      Certificate (as defined in the Purchase Agreement) is not filed with the
      Secretary of State of the State of Delaware within one hundred fifty days (150)
      from the Closing Date (as defined in the Purchase Agreement), then for each
      whole or partial month that elapses between the 150th
      day from
      the Closing Date and the date of such filing, the Exercise Price then in effect
      shall automatically be reduced by 6%.

     

    8. Fractional
      Shares.
      The
      Company shall not be required to issue or cause to be issued fractional Warrant
      Shares on the exercise of this Warrant. The number of full Warrant Shares that
      shall be issuable upon the exercise of this Warrant shall be computed on the
      basis of the aggregate number of Warrants Shares purchasable on exercise of
      this
      Warrant so presented. If any fraction of a Warrant Share would, except for
      the
      provisions of this Section 8, be issuable on the exercise of this Warrant,
      the
      Company shall, at its option, (i) pay an amount in cash equal to the Exercise
      Price multiplied by such fraction or (ii) round the number of Warrant Shares
      issuable, up to the next whole number.

     

    9. Sale
      or Merger of the Company.
      Upon
      a
Merger
      Transaction,
      the
      restriction contained in Section 6 shall immediately be released and the Warrant
      Holder will have the right to exercise this Warrant concurrently with such
      Merger
      Transaction.
      For
      purposes of this Warrant, the term “Merger
      Transaction”
shall
      mean a consolidation or merger of the Company into
      another company or entity in which the Company is not the surviving entity
      or
      the sale of all or substantially all of the assets of the Company to another
      company or entity not controlled by the then existing stockholders of the
      Company.

     

    10. Notice
      of Intent to Sell or Merge the Company.
      The
      Company will give Warrant Holder ten (10) business days notice before
any
      Merger Transaction.

     

    11. Issuance
      of Substitute Warrant.
      In the
      event of a merger, consolidation, recapitalization or reorganization of the
      Company or a reclassification of Company shares of stock, which results in
      an
      adjustment to the number of shares subject to this Warrant and/or the Exercise
      Price hereunder, the Company agrees to issue to the Warrant Holder a substitute
      Warrant reflecting the adjusted number of shares and/or Exercise Price upon
      the
      surrender of this Warrant to the Company.
      However,
      in the event that the Company does not issue a substitute warrant, the number
      and class of Warrant Shares or other securities and the Exercise Price shall
      be
      adjusted as provided in this Warrant, and this Warrant shall relate the adjusted
      number of Warrant Shares and Exercise Price.

     

    12. Notice.
      All
      notices and other communications hereunder shall be in writing and shall be
      deemed to have been given (i) on the date they are delivered if delivered in
      person; (ii) on the date initially received if delivered by facsimile
      transmission followed by registered or certified mail confirmation; (iii) on
      the
      date delivered by an overnight courier service; or (iv) on the date
      of
      delivery
      after it
      is mailed by registered or certified mail, return receipt requested with postage
      and other fees prepaid as follows:

     

    If
      to
      the Company:

     

    Science
      Dynamics Corporation

    7150
      North Park Drive; Suite 500

    Pennsauken,
      NJ 08109 

    Attn:
      Mr.
      Paul Burgess, CEO

    Facsimile:
      

    e-mail:
      pburgess@sysmanagement.com

    
      
        
        

      

      
        
        

        
          

        

      

       

    

    

    With
      a
      copy to:

     

    Sichenzia
      Ross Friedman Ference LLP

    1065
      Avenue of the Americas

    New
      York,
      New York 10018

    Attention:
      Asher S. Levitsky P.C.

    Facsimile
      No.: (212) 930-9725

    e-mail:
      alevitsky@srff.com

    

    If
      to
      the Warrant Holder:

    

    at
      the
      address or telecopier number and to the attention of the person shown on the
      Company’s warrant register.

    13. Miscellaneous.

     

    (a) This
      Warrant shall be binding on and inure to the benefit of the parties hereto
      and
      their respective successors and permitted assigns. This Warrant may be amended
      only by a writing signed by the Company and the Warrant Holder.

     

    (b) Nothing
      in this Warrant shall be construed to give to any person or corporation other
      than the Company and the Warrant Holder any legal or equitable right, remedy
      or
      cause of action under this Warrant; this Warrant shall be for the sole and
      exclusive benefit of the Company and the Warrant Holder.

     

    (c) This
      Warrant shall be governed by, construed and enforced in accordance with the
      internal laws of the State of New York without regard to the principles of
      conflicts of law thereof.

     

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

     

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

     

    (f) The
      Warrant Holder shall not, by virtue hereof, be entitled to any voting or other
      rights of a stockholder of the Company, either at law or equity, and the rights
      of the Warrant Holder are limited to those expressed in this
      Warrant.

     

    IN
      WITNESS WHEREOF, the Company has caused this Warrant to be duly executed by
      the
      authorized officer as of the date first above stated.

     

    
      	 	 	 
	Date:
              September 19, 2006 	SCIENCE
              DYNAMICS
              CORPORATION
	 
 	 
 	 
 
	 	By:  	 
	 	
              
Joseph
              Noto, CFO

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    FORM
      OF ELECTION TO PURCHASE

    

    (To
      be
      executed by the Warrant Holder to exercise the right to purchase shares of
      Common Stock under the foregoing Warrant)

    

    To:
      Science
      Dynamics Corporation:

    

    In
      accordance with the Warrant enclosed with this Form of Election to Purchase,
      the
      undersigned hereby irrevocably elects to purchase ______________ shares of
      Common Stock (“Common Stock”), $.01 par value, of Science Dynamics Corporation,
      Inc. and encloses the warrant and $____ for each Warrant Share being purchased
      or an aggregate of $________________ in cash or certified or official bank
      check
      or checks, which sum represents the aggregate Exercise Price (as defined in
      the
      Warrant) together with any applicable taxes payable by the undersigned pursuant
      to the Warrant.

    

    The
      undersigned requests that certificates for the shares of Common Stock issuable
      upon this exercise be issued in the name of:

     

    
      
        

      

      
 

    
      

    

    (Please
      print name and address)

     

    

      
 (Please
      insert Social Security or Tax Identification Number)

    

    If
      the
      number of shares of Common Stock issuable upon this exercise shall not be all
      of
      the shares of Common Stock which the undersigned is entitled to purchase in
      accordance with the enclosed Warrant, the undersigned requests that a New
      Warrant (as defined in the Warrant) evidencing the right to purchase the shares
      of Common Stock not issuable pursuant to the exercise evidenced hereby be issued
      in the name of and delivered to:

    

    
      
 

      

    

     

    
      
 (Please
      print name and address)

     

    
      	 	 	 
	Dated:________________________	Name
              of Warrant
              Holder:
	 
 	 
(Print)
              	 
_______________________________
	 	 	 
	 	(By:) 	___________________________
	 	 	 
	 	(Name:)
              	_______________________________
	 	 	 
	 	(Title:) 	___________________________
	 	 	 
	 	
              Signature
                must conform in all respects to name of

              Warrant
                Holder as specified on the face of the

              WarrantC-1

              	 	
                Warrant
                  to Purchase

                **4,891,000**

                Shares
                  of Common Stock

              

      

       

      NEITHER
        THIS WARRANT NOR THE SHARES OF COMMON STOCK ISSUABLE UPON EXERCISE OF THIS
        WARRANT HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED,
        AND
        NEITHER THIS WARRANT NOR SUCH SHARES MAY BE SOLD, ENCUMBERED OR OTHERWISE
        TRANSFERRED EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER
        SUCH
        ACT OR AN EXEMPTION FROM SUCH REGISTRATION REQUIREMENT, AND, IF AN EXEMPTION
        SHALL BE APPLICABLE, THE HOLDER SHALL HAVE DELIVERED AN OPINION OF COUNSEL
        ACCEPTABLE TO THE COMPANY THAT SUCH REGISTRATION IS NOT
        REQUIRED.

       

      Void
        after 5:30 P.M. New York City time on September 19, 2011

       

      SERIES
        C COMMON STOCK PURCHASE WARRANT

       

      OF

       

      SCIENCE
        DYNAMICS CORPORATION 

       

      This
        is
        to certify that, FOR VALUE RECEIVED, Dragonfly Capital Partners, LLC or
        registered assigns (“Holder”), is entitled to purchase, on the terms and subject
        to the provisions of this Warrant, from Science Dynamics Corporation, a Delaware
        corporation (the “Company”), four million eight hundred ninety one thousand
        (4,891,000) shares of the common stock, par value $.01 per share (“Common
        Stock”), of the Company at an exercise price per share (the “Exercise Price”) of
        five cents ($.05), during the period (the “Exercise Period”) commencing on the
        Availability Date, as hereinafter defined, and ending at 5:30 P.M. New York
        City
        time, on September 19, 2011; provided, however, that if such date is a day
        on
        which banking institutions in the State of New York are authorized by law
        to
        close, then on the next succeeding day on which such banks are not authorized
        to
        be closed. 

       

      (a)  EXERCISE
        OF WARRANT. 

       

      (1)
        This
        Warrant may be exercised in whole at any time or in part from time to time
        during the Exercise Period by presentation and surrender of this Warrant
        to the
        Company at its principal office, or at the office of its stock transfer agent,
        if any, with the Purchase Form annexed hereto duly executed and accompanied
        by
        payment of the Exercise Price for the number of shares of Common Stock specified
        in such form. Payment of the Exercise Price shall be made by wire transfer
        or
        check (subject to collection) in the amount of the Exercise Price payable
        to the
        order of the Company. If this Warrant should be exercised in part only, the
        Company shall, upon surrender of this Warrant for cancellation, execute and
        deliver a new Warrant evidencing the rights of the Holder to purchase the
        balance of the shares of Common Stock purchasable hereunder. Upon receipt
        by the
        Company of this Warrant at its office, or by the stock transfer agent of
        the
        Company at its office, in proper form for exercise, the Holder shall be deemed
        to be the holder of record of the shares of Common Stock issuable upon such
        exercise, notwithstanding that the stock transfer books of the Company shall
        then be closed or that certificates representing such shares of Common Stock
        shall not then be actually delivered to the Holder; provided, however, that
        if
        payment of the Exercise Price is made by check, the Company shall not issue
        the
        Common Stock until the Company has been advised by its bank that the check
        has
        cleared. The shares of Common Stock issued or issuable upon exercise of this
        Warrant are referred to as the “Warrant Shares.”

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

         

      

      (2) As
        used
        in this Warrant, the term “Availability Date” shall mean shall mean the date on
        which a certificate of amendment to or restatement of the Company’s certificate
        of incorporation is filed with the Secretary of State of the State of Delaware
        provided that such certificate of amendment effects a one-for-ten reverse
        split.

       

      (b)  RESERVATION
        OF SHARES. The Company hereby agrees that at all times from and after the
        Availability Date, there shall be reserved for issuance and/or delivery upon
        exercise of this Warrant such number of shares of Common Stock as shall be
        required for issuance and delivery upon exercise of this Warrant and that
        it
        shall not, without the prior approval of the holders of a majority of the
        Warrants then outstanding, increase the par value of the Common Stock in
        a
        manner such that the exercise price is less than the par value.

       

      (c)  FRACTIONAL
        SHARES. No fractional shares or script representing fractional shares shall
        be
        issued upon the exercise of this Warrant. If the fraction is less than one-half
        (1⁄2), the fraction shall be dropped, and if the fraction is one-half (1⁄2) or more,
        the number of shares of Common Stock to be issued shall be rounded to the
        next
        higher integral number of shares.

       

      (d)  EXCHANGE,
        TRANSFER, ASSIGNMENT OR LOSS OF WARRANT. This Warrant is exchangeable, without
        expense, at the option of the Holder, upon presentation and surrender hereof
        to
        the Company or at the office of its stock transfer agent, if any, for other
        Warrants of different denominations entitling the holder thereof to purchase
        in
        the aggregate the same number of shares of Common Stock purchasable hereunder.
        Subject to the provisions of Section (k) of this Warrant, upon surrender
        of this
        Warrant to the Company or at the office of its stock transfer agent, if any,
        with the Assignment Form annexed hereto duly executed and funds sufficient
        to
        pay any transfer tax, the Company shall, without charge, execute and deliver
        a
        new Warrant in the name of the assignee named in such instrument of assignment
        and this Warrant shall promptly be canceled. This Warrant may be divided
        or
        combined with other Warrants which carry the same rights upon presentation
        hereof at the office of the Company or at the office of its stock transfer
        agent, if any, together with a written notice specifying the names and
        denominations in which new Warrants are to be issued and signed by the Holder
        hereof. The term “Warrant” as used herein includes any Warrants into which this
        Warrant may be divided or exchanged. Upon receipt by the Company of evidence
        satisfactory to it of the loss, theft, destruction or mutilation of this
        Warrant, and (in the case of loss, theft or destruction) of reasonably
        satisfactory indemnification, and upon surrender and cancellation of this
        Warrant, if mutilated, the Company will execute and deliver a new Warrant
        of
        like tenor. Any such new Warrant executed and delivered shall constitute
        an
        additional contractual obligation on the part of the Company, whether or
        not
        this Warrant so lost, stolen, destroyed, or mutilated shall be at any time
        enforceable by anyone.

       

      (e)  RIGHTS
        OF
        THE HOLDER. The Holder shall not, by virtue of this Warrant, be entitled
        to any
        rights of a stockholder in the Company, either at law or equity, and the
        rights
        of the Holder are limited to those expressed in the Warrant and are not
        enforceable against the Company except to the extent set forth in this
        Warrant.

       

      (f)  ANTI-DILUTION
        PROVISIONS. If the Company shall, subsequent to September 19, 2006, (i) pay
        a
        dividend or make a distribution on its shares of Common Stock in shares of
        Common Stock (ii) subdivide or reclassify its outstanding Common Stock into
        a
        greater number of shares, or (iii) combine or reclassify its outstanding
        Common
        Stock into a smaller number of shares or otherwise effect a reverse split,
        the
        Exercise Price in effect at the time of the record date for such dividend
        or
        distribution or the effective date of such subdivision and the number of
        shares
        of Common Stock (or other securities) issuable upon exercise of this Warrant
        shall be proportionately adjusted to reflect such transaction. Whenever the
        Exercise Price payable upon exercise of this Warrant is adjusted pursuant
        to
        this Section (f), the number of Warrant Shares purchasable upon exercise
        of this
        Warrant shall simultaneously be adjusted by multiplying the number of shares
        of
        Common Stock issuable upon exercise of this Warrant in effect on the date
        thereof by the Exercise Price in effect on the date thereof and dividing
        the
        product so obtained by the Exercise Price, as adjusted. In no event shall
        the
        Exercise Price per share be less than the par value per share, and, if any
        adjustment made pursuant to this Section (f) shall in an exercise price of
        less
        than the par value per share, then, in such event, the Exercise Price per
        share
        shall be the par value per share. Such adjustment shall be made successively
        whenever any event listed in this Section (f) shall occur.

       

      
        
          
          

        

        
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      (g)  OFFICER’S
        CERTIFICATE. Whenever the Exercise Price shall be adjusted as required by
        the
        provisions of Section (f) of this Warrant, the Company shall forthwith file
        in
        the custody of its Secretary or an Assistant Secretary at its principal office
        and with its stock transfer agent, if any, an officer’s certificate showing the
        adjusted Exercise Price and the adjusted number of shares of Common Stock
        issuable upon exercise of each Warrant, determined as herein provided, setting
        forth in reasonable detail the facts requiring such adjustment. Each such
        officer’s certificate shall be made available at all reasonable times for
        inspection by the Holder, and the Company shall, forthwith after each such
        adjustment, mail, by first class mail, a copy of such certificate to the
        Holder
        at the Holder’s address set forth in the Company’s Warrant
        Register.

       

      (h)  NOTICES
        TO WARRANT HOLDERS. So long as this Warrant shall be outstanding, (1) if
        the
        Company shall pay any dividend or make any distribution upon Common Stock
        (other
        than a cash dividend payable out of retained earnings) or (2) if the Company
        shall offer to the holders of Common Stock for subscription or purchase by
        them
        any share of any class or any other rights or (3) if any capital reorganization
        of the Company, reclassification of the capital stock of the Company,
        consolidation or merger of the Company with or into another corporation,
        sale,
        lease or transfer of all or substantially all of the property and assets
        of the
        Company to another corporation, or voluntary or involuntary dissolution,
        liquidation or winding up of the Company shall be effected, then in any such
        case, the Company shall cause to be mailed by certified mail, return receipt
        requested, to the Holder, at least ten days prior to the date specified in
        the
        following clauses (i) and (ii), as the case may be, of this Section (h) a
        notice
        containing a brief description of the proposed action and stating the date
        on
        which (i) a record is to be taken for the purpose of such dividend, distribution
        or rights, or (ii) such reclassification, reorganization, consolidation,
        merger,
        conveyance, lease, dissolution, liquidation or winding up is to take place
        and
        the date, if any is to be fixed, as of which the holders of Common Stock
        or
        other securities shall receive cash or other property deliverable upon such
        reclassification, reorganization, consolidation, merger, conveyance,
        dissolution, liquidation or winding up.

       

      (i)  RECLASSIFICATION,
        REORGANIZATION OR MERGER.

       

      (1)  In
        case
        of any reclassification, capital reorganization or other change of outstanding
        shares of Common Stock of the Company, or in case of any consolidation or
        merger
        of the Company with or into another corporation (other than a 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 of the class issuable upon exercise of this Warrant) or in
        case
        of any sale, lease or conveyance to another corporation of the property of
        the
        Company as an entirety, the Company shall, as a condition precedent to such
        transaction, cause effective provisions to be made so that the Holder shall
        have
        the right thereafter by exercising this Warrant, to purchase the kind and
        amount
        of shares of stock and other securities and property receivable upon such
        reclassification, capital reorganization and other change, consolidation,
        merger, sale or conveyance by a holder of the number of shares of Common
        Stock
        which might have been purchased upon exercise of this Warrant immediately
        prior
        to such reclassification, change, consolidation, merger, sale or conveyance.
        Any
        such provision shall include provision for adjustments which shall be as
        nearly
        equivalent as may be practicable to the adjustments provided for in this
        Warrant. The foregoing provisions of this Section (i)(1) shall similarly
        apply
        to successive reclassifications, capital reorganizations and changes of shares
        of Common Stock and to successive consolidations, mergers, sales or
        conveyances.

       

      
        
          
          

        

        
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      (2)  Notwithstanding
        the provisions of Section (i)(1) of this Warrant, in the event of a Specified
        Merger, as hereinafter defined, this Warrant, if not exercised prior to the
        effective time of the Specified Merger, shall, at the effective time of the
        Specified Merger, without any action on the part of the holder, become and
        be
        converted into the right to receive cash or securities equal to the amount
        determined by multiplying the number of shares of Common Stock issuable upon
        exercise of this Warrant by the amount by which (x) the consideration payable
        with respect to one share of Common Stock in the Specified Merger exceeds
        (y)
        the Exercise Price. A Specified Merger shall mean the merger or consolidation
        of
        the Company into another corporation or entity or the sale by the Company
        of all
        or substantially all of its business and assets in a transaction in which
        the
        net proceeds or other consideration from such sale are distributed to the
        Company’s stockholders in liquidation of their shares of Common Stock, if, and
        only if, the sole consideration to be received by the holders of the Common
        Stock is cash, including any contingent cash, and/or securities all of which
        are
        listed on the New York or American Stock Exchange, the Nasdaq Stock Market
        or
        the OTC
        Bulletin Board.
        Securities issued in the Specified Merger shall be valued at the average
        closing
        price thereof on the principal stock exchange or market on which the securities
        are listed for the five-day period ending the day prior to the effective
        date of
        the Specified Merger. Payment to the holder of this Warrant with respect
        to any
        such securities shall be payable in either cash or in such securities (valued
        as
        herein provided), as the Company shall determine. If, in a Specified Merger,
        the
        value of the consideration payable with respect to one share of Common Stock
        is
        less than the Exercise Price, no payment shall be made to the holder of this
        Warrant, and this Warrant shall terminate.

       

      (j)  REGISTRATION
        PURSUANT TO THE SECURITIES ACT OF 1933.

       

      (1)  This
        Warrant was initially issued in connection with a securities purchase agreement
        dated September 15, 2006, between the Company and Barron Partners LP. The
        Company agrees to use its commercially reasonable efforts to include the
        Warrant
        Shares in the first registration statement filed by the Company with respect
        to
        the Common Stock issuable upon conversion or exercise of the securities issued
        pursuant to such agreement; provided, however, that the Company is not granting
        the Holder any rights not expressly set forth in this Section (j). 

       

      (2)  The
        following provision of this Section (j) shall also be applicable:

       

      (A)  The
        Company shall bear the entire cost and expense of any registration made pursuant
        to Section (j)(1) of this Warrant; provided, however, bear the fees of his
        own
        counsel and accountants and any transfer taxes or underwriting or brokers’
discounts or commissions applicable to the Warrant Shares sold by him pursuant
        thereto.

       

      (B)  The
        Company shall indemnify and hold harmless each such holder and each underwriter,
        within the meaning of the Securities Act, who may purchase from or sell for
        any
        such holder any Warrant Shares each other person, if any, who controls such
        holder or underwriter, and their respective directors, officers, partners,
        agents and affiliates from and against any and all losses, claims, damages
        or
        liabilities, joint or several, to which they or any of them may become subject
        under the Securities Act, the Securities Exchange Act of 1934, as amended,
        or
        other federal or state statutory law or regulation, at common law or otherwise,
        insofar as such losses, claims, damages or liabilities (or actions in respect
        thereof), which are collectively referred to as “Losses,” arise out of or are
        based upon (i) any untrue statement or alleged untrue statement of a material
        fact made by the Company contained in the registration statement, or any
        amendment thereof, or in any preliminary prospectus or the prospectus, or
        any
        amendment thereof or supplement thereto, or in any blue sky application or
        other
        document executed by the Company specifically for that purpose (or based
        upon
        written information furnished by the Company) filed in any state or other
        jurisdiction in order to qualify any of the Warrant Shares under the securities
        laws thereof (any such application, document or information being referred
        to as
        a “Blue Sky Application”); or (ii) the omission or alleged omission to state in
        any such registration statement, preliminary prospectus or prospectus, or
        amendment thereof or supplement thereto, or Blue Sky Application a material
        fact
        required to be stated therein or necessary to make the statements made therein
        not misleading, and agrees to reimburse each such indemnified party for any
        legal or other expenses reasonably incurred by it in connection with
        investigating or defending against any such loss, claim, damage, liability
        or
        action; provided, however, that the Company will not be liable in any such
        case
        to the extent that any such loss, claim, damage, liability or action arises
        out
        of or is based upon any such untrue statement or alleged untrue statement
        or
        omission or alleged omission made therein or omitted therefrom in reliance
        upon
        and in conformity with written information furnished to the Company by or
        on
        behalf of any holder specifically for use in connection with the preparation
        thereof, and further provided, however, that the foregoing indemnity with
        respect to any untrue statement, alleged untrue statement, omission, or alleged
        omission contained in any preliminary prospectus shall not inure to the benefit
        of any holder from whom the person asserting any such loss, claims, damage,
        liability or action purchased any of the securities that are the subject
        thereof
        (or to the benefit of any person who controls such holder or other person),
        if a
        copy of the prospectus was not delivered to such person with or prior to
        the
        written confirmation of the sale of such security to such person. The indemnify
        provided for in this Section (j)(2)(B) shall remain in full force and effect
        regardless of any investigation made by or on behalf of the indemnified party
        and shall survive any transfer of the Warrant Shares by the indemnified party.
        This indemnity agreement will be in addition to any liability that the Company
        may otherwise have.

       

      
        
          
          

        

        
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      (C)  In
        connection with any registration statement filed by the Company pursuant
        to this
        Section (j) in which a holder has registered for sale Warrant Shares, the
        holder
        shall, and by acceptance of this Warrant, agrees to, indemnify and hold harmless
        the Company and each of its directors, officers, employees and agents, each
        underwriter and each other person, if any, who controls the Company, the
        underwriter and each other seller and such underwriter’s and such seller’s
        directors, officers, stockholders, partners, employees, agents and affiliates
        from and against any and all Losses to which they or any of them may become
        subject under the Securities Act, the Exchange Act, or other federal or state
        statutory law or regulation, at common law or otherwise, insofar as such
        losses,
        claims, damages, or liabilities (or actions in respect thereof) arise out
        of or
        are based upon (i) any untrue statement or alleged untrue statement of a
        material fact contained in the registration statement, or any amendment thereof,
        or in any preliminary prospectus or the prospectus, or any amendment thereof
        or
        supplement thereto, or in a Blue Sky Application, or (ii) the omission or
        the
        alleged omission to state in any such registration statement, preliminary
        prospectus or prospectus, amendment thereof or supplement thereto, or Blue
        Sky
        Application a material fact required to be stated therein or necessary to
        make
        the statements made therein not misleading, in each case to the extent, but
        only
        to the extent, that the same was made therein or omitted therefrom in reliance
        upon and in conformity with written information furnished to the Company
        by or
        on behalf of such holder specifically for use in the preparation thereof,
        and
        agrees to reimburse each such indemnified party for any legal or other expenses
        reasonably incurred by it in connection with investigating or defending against
        any such loss, claim, damage, liability or action. The indemnify provided
        for in
        this Section (j)(2)(C) shall remain in full force and effect regardless of
        any
        investigation made by or on behalf of the indemnified party and shall survive
        any transfer of the Warrant Shares by the indemnified party. This indemnity
        agreement will be in addition to any liability that the holder may otherwise
        have.

       

      
        
          
          

        

        
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      (D)  Within
        five (5) days after receipt by an indemnified party under Section (j)(2)(B)
        or
        (C) of this Warrant of notice of the commencement of any action, such
        indemnified party shall, if a claim in respect thereof is to be made against
        an
        indemnifying party under either of such sections, notify the indemnifying
        party
        in writing of the commencement thereof; the failure so to notify the
        indemnifying party shall relieve the indemnifying party from any liability
        under
        this Section (j)(2) as to the particular item for which indemnification is
        then
        being sought, unless such indemnifying party has otherwise received actual
        notice of the action at least thirty (30) days before any answer or response
        is
        required by the indemnifying party in its defense of such action, but will
        not
        relieve it from any liability that it may have to any indemnified party
        otherwise than under this Section (j)(2). If any such action is brought against
        any indemnified party and it notifies the indemnifying party of the commencement
        thereof, the indemnifying party will be entitled to participate therein and,
        to
        the extent that it may elect by written notice delivered to the indemnified
        party promptly after receiving the aforesaid notice from such indemnified
        party,
        to assume the defense thereof; provided, that if the defendants in any such
        action include both the indemnified party and the indemnifying party and
        either
        (i) the indemnifying party or parties agree, or (ii) in the opinion of counsel
        for the indemnifying parties, representation of both the indemnifying party
        or
        parties and the indemnified party or parties by the same counsel is
        inappropriate under applicable standards of professional conduct because
        of
        actual or potential conflicting interests between them, then the indemnified
        party or parties shall have the right to select separate counsel to assume
        such
        legal defense and to otherwise participate in the defense of such action.
        The
        indemnifying party will not be liable to such indemnified party under this
        Section (j)(2)(D) for any legal or other expenses subsequently incurred by
        such
        indemnified party in connection with the defense thereof unless (x) the
        indemnified party shall have employed counsel in connection with the assumption
        of legal defenses in accordance with the proviso to the immediately preceding
        sentence (it being understood, however, that the indemnifying party shall
        not be
        liable for the expenses of more than one separate counsel in each jurisdiction
        which counsel is approved by indemnified parties (whether pursuant to this
        Warrant, or other Warrants issued by the Company or other agreements if the
        claim relates to the same or similar allegations) holding a majority of the
        shares as to which indemnification is claimed), (ii) the indemnifying party
        shall not have employed counsel to represent the indemnified party within
        a
        reasonable time after notice of commencement of the action, or (iii) the
        indemnifying party has authorized the employment of counsel for the indemnified
        party at the expense of the indemnifying party. In no event shall an
        indemnifying party be liable under this Section (j)(2)(D) for any settlement,
        effected without its written consent, which consent shall not be unreasonably
        withheld, of any claim or action against an indemnified party.

       

      (E)  If
        the
        indemnification provided for in this Section (j) shall for any reason be
        unavailable to an indemnified party under Section (j)(2)(B) or (C) of this
        Warrant in respect of any Losses, then, in lieu of the amount paid or payable
        under said Section (j)(2)(B) or (C), the indemnified party and the indemnifying
        party under said Section (j)(2)(B) or (C) shall contribute to the aggregate
        Losses (including legal or other expenses reasonably incurred in connection
        with
        investigating the same) (i) in such proportion as is appropriate to reflect
        the
        relative fault of the Company and the prospective sellers of Warrant Shares
        covered by the registration statement which resulted in such Loss or action
        in
        respect thereof, with respect to the statements, omissions or action which
        resulted in such Loss or action in respect thereof, as well as any other
        relevant equitable considerations, or (ii) if the allocation provided by
        clause
        (i) above is not permitted by applicable law, in such proportion as shall
        be
        appropriate to reflect the relative benefits received by the Company, on
        the one
        hand, and such prospective sellers, on the other hand, from their sale of
        Warrant Shares; provided, that, for purposes of this clause (ii), the relative
        benefits received by any prospective sellers shall be deemed not to exceed
        (and
        the amount to be contributed by any prospective seller shall not exceed)
        the
        amount received by such seller. No person guilty of fraudulent misrepresentation
        (within the meaning of Section 11(f) of the Securities Act) shall be entitled
        to
        contribution from any person who was not guilty of such fraudulent
        misrepresentation. The obligations, if any, of the holders of Warrant Shares
        to
        contribute as provided in this Section (j)(2)(E) are several in proportion
        to
        the relative value of their respective Warrant Shares covered by such
        registration statement and not joint. In addition, no person shall be obligated
        to contribute hereunder any amounts in payment for any settlement of any
        action
        or Losses effected without such person’s consent.

       

      
        
          
          

        

        
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      (F)  Neither
        the giving of any notice by any holder nor the making of any request for
        prospectuses shall impose any upon any holder making such request any obligation
        to sell any Warrant Shares or exercise any Warrants.

       

      (G)  In
        connection with any registration statement filed pursuant to this Section
        (j),
        the Company shall supply prospectuses and qualify the Warrant Shares for
        sale in
        such states as the Company is otherwise qualifying shares of Common Stock
        being
        registered thereunder, provided, that the Company shall not be required to
        qualify or register the Warrant Shares in any jurisdiction where such
        qualification or registration would require the Company to submit generally
        to
        the jurisdiction of such state.

       

      (3)  As
        a
        condition to the inclusion of the Warrant Shares of the holder of this Warrant,
        in any registration statement pursuant to this Section (j), the holder
        shall:

       

      (A)  furnish
        the information and indemnification as set forth in this Section (j), together
        with any additional information which the Company may request in order to
        enable
        it to file the registration statement and update such information immediately
        upon the occurrence of any events or condition which make the information
        concerning the holder inaccurate in any material respect;

       

      (B)  not
        sell
        any Warrant Shares pursuant to the registration statement except in the manner
        set forth in the registration statement;

       

      (C)  comply
        with the prospectus delivery requirements and the provisions of Regulation
        M of
        the Commission pursuant to the Securities Act; 

       

      (D)  not
        sell
        or otherwise transfer or distribute any Warrant Shares if the holder possesses
        any material nonpublic information concerning the Company; 

       

      (E)  not
        sell
        or otherwise transfer any Warrant Shares pursuant to a registration statement
        upon receipt of advice from the Company that the registration statement is
        no
        longer current until the holder is advised that the Warrant Shares may be
        sold
        pursuant to the registration statement; and

       

      (F)  agree
        to
        indemnity and confidentiality provisions and the restrictions on sale set
        forth
        in Sections (j)(2) and (j)(4) of this Warrant.

       

      (4)  (A)The
        term
“Excusable Reason” means the occurrence of negotiations with respect to material
        agreements prior to the announcement of the execution of the agreement or
        the
        termination of the negotiations and other similar material corporate events
        to
        which the Company is a party or expects to be a party if, in the reasonable
        judgment of the Company, disclosure of the negotiations or other event would
        be
        adverse to the best interests of the Company provided that the Company is
        continuing to treat such negotiations as confidential and provided further
        that
        the period during which the Company is precluded from filing the registration
        statement (or suspended the use of an effective registration statement) as
        a
        result of any Excusable Reason has not exceeded one hundred twenty (120)
        days in
        any twelve month period.

       

      
        
          
          

        

        
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      (B)  Any
        information relating to an Excusable Reason shall be deemed to be confidential
        information regardless of whether it is expressly marked as confidential.
        Information that is or becomes available to a holder of Warrant Shares from
        a
        public source or is disclosed to a holder of Warrant Shares by a third-party
        source who has the right to disclose such information shall not be deemed
        to be
        confidential information for purposes of this Section (j)(4)(B). Each holder
        shall indemnify and hold harmless the Company, its officer, directors and
        counsel from and against any Losses which they may incur as a result of any
        breach of the provisions of this Section (j)(4)(B).

       

      (C)  Notwithstanding
        any provisions of Section (j)(1) of this Warrant, the Company shall not be
        required to file a registration statement or take any action to cause a
        registration statement to become effective for an Excusable Reason, and,
        if the
        registration statement covering Warrant Shares has been declared effective,
        the
        Company shall notify the holder, and the holder shall not sell any Warrant
        Shares pursuant to a registration statement or otherwise as long as an Excusable
        Reason exists.

       

      (5)  Nothing
        in this Section (j)(5) shall be construed to restrict the ability of any
        Selling
        Holder to sell Warrant Shares in a transaction which is exempt from registration
        pursuant to Rule 144 of the Commission pursuant to Securities Act.

       

      (6)  The
        Company’s agreements with respect to Warrants or Warrant Shares in this Section
        (j) shall continue in effect regardless of the exercise and surrender of
        this
        Warrant.

       

      (7)  The
        provisions of this Section (j) relate to the Warrant Shares, and no holder
        shall
        have any right to register or require the Company to register the
        Warrants.

       

      (k)  TRANSFER
        TO COMPLY WITH THE SECURITIES ACT. This Warrant or the Warrant Shares or
        any
        other security issued or issuable upon exercise of this Warrant may not be
        sold
        or otherwise disposed of except as follows:

       

      (1)  To
        a
        person who, in the opinion of counsel for the Company, is a person to whom
        this
        Warrant or Warrant Shares may legally be transferred without registration
        and
        without the delivery of a current prospectus under the Securities Act and
        in
        compliance with applicable state securities laws with respect thereto and
        then
        only against receipt of an agreement of such person to comply with the
        provisions of this Section (k) with respect to any resale or other disposition
        of such securities which agreement shall be satisfactory in form and substance
        to the Company and its counsel; or

       

      (2)  To
        any
        person upon delivery of a prospectus then meeting the requirements of the
        Securities Act and state securities laws relating to such securities and
        the
        offering thereof for such sale or disposition.

       

      Dated
        as
        of September 19, 2006

       

      
        	 	 	 
	 	SCIENCE
                DYNAMICS
                CORPORATION 
	 
 	 
 	 
 
	 	By:  	 
	 	
                
Paul
                Burges, Chief Executive Officer

      

      
        
          
          

        

        
          
          

          
            

          

        

         

      

      PURCHASE
        FORM

       

      Dated:                                               ,
        20  

       

      The
        undersigned hereby irrevocably exercises this Warrant to the extent of
        purchasing _______ shares of Common Stock and hereby makes payment of
        $____________ in payment of the Exercise Price therefor.

       

      INSTRUCTIONS
        FOR REGISTRATION OF STOCK

       

      Name:______________________________________________________________________________
        

      (Please
        typewrite or print in block letters)

      

      Signature:___________________________________________
        

       

      Social
        Security or Employer Identification No.________________________

      

      ASSIGNMENT
        FORM

      

      FOR
        VALUE
        RECEIVED,_______________________________________________________

      hereby
        sells, assigns and transfer unto

      Name_________________________________________________________________________
        

      (Please
        typewrite or print in block letters)

      Address________________________________________________________________________
        

      

      Social
        Security or Employer Identification No._______________________ 

      

      The
        right
        to purchase Common Stock represented by this Warrant to the extent of
        _________shares as to which such right is exercisable and does hereby
        irrevocably constitute and appoint __________________ attorney to transfer
        the
        same on the books of the Company with full power of substitution.

      

      Dated:                          
        , 20 

       

      Signature____________________________________
        

       

       

      Signature
        Medallion Guaranteed:

      _________________________________________
        

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

    

    
      	
              C-2

            	 	
              Warrant
                to Purchase

              **4,891,000**

              Shares
                of Common Stock

            

    

     

    NEITHER
      THIS WARRANT NOR THE SHARES OF COMMON STOCK ISSUABLE UPON EXERCISE OF THIS
      WARRANT HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED,
      AND
      NEITHER THIS WARRANT NOR SUCH SHARES MAY BE SOLD, ENCUMBERED OR OTHERWISE
      TRANSFERRED EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER SUCH
      ACT OR AN EXEMPTION FROM SUCH REGISTRATION REQUIREMENT, AND, IF AN EXEMPTION
      SHALL BE APPLICABLE, THE HOLDER SHALL HAVE DELIVERED AN OPINION OF COUNSEL
      ACCEPTABLE TO THE COMPANY THAT SUCH REGISTRATION IS NOT
      REQUIRED.

     

    Void
      after 5:30 P.M. New York City time on September 19, 2011

     

    SERIES
      C COMMON STOCK PURCHASE WARRANT

     

    OF

     

    SCIENCE
      DYNAMICS CORPORATION 

     

    This
      is
      to certify that, FOR VALUE RECEIVED, Dragonfly Capital Partners, LLC or
      registered assigns (“Holder”), is entitled to purchase, on the terms and subject
      to the provisions of this Warrant, from Science Dynamics Corporation, a Delaware
      corporation (the “Company”), four million eight hundred ninety one thousand
      (4,891,000) shares of the common stock, par value $.01 per share (“Common
      Stock”), of the Company at an exercise price per share (the “Exercise Price”) of
      twelve and one-half cents ($.125), during the period (the “Exercise Period”)
      commencing on the Availability Date, as hereinafter defined, and ending at
      5:30
      P.M. New York City time, on September 19, 2011; provided, however, that if
      such
      date is a day on which banking institutions in the State of New York are
      authorized by law to close, then on the next succeeding day on which such banks
      are not authorized to be closed. 

     

    (a)  EXERCISE
      OF WARRANT. 

     

    (1)
      This
      Warrant may be exercised in whole at any time or in part from time to time
      during the Exercise Period by presentation and surrender of this Warrant to
      the
      Company at its principal office, or at the office of its stock transfer agent,
      if any, with the Purchase Form annexed hereto duly executed and accompanied
      by
      payment of the Exercise Price for the number of shares of Common Stock specified
      in such form. Payment of the Exercise Price shall be made by wire transfer
      or
      check (subject to collection) in the amount of the Exercise Price payable to
      the
      order of the Company. If this Warrant should be exercised in part only, the
      Company shall, upon surrender of this Warrant for cancellation, execute and
      deliver a new Warrant evidencing the rights of the Holder to purchase the
      balance of the shares of Common Stock purchasable hereunder. Upon receipt by
      the
      Company of this Warrant at its office, or by the stock transfer agent of the
      Company at its office, in proper form for exercise, the Holder shall be deemed
      to be the holder of record of the shares of Common Stock issuable upon such
      exercise, notwithstanding that the stock transfer books of the Company shall
      then be closed or that certificates representing such shares of Common Stock
      shall not then be actually delivered to the Holder; provided, however, that
      if
      payment of the Exercise Price is made by check, the Company shall not issue
      the
      Common Stock until the Company has been advised by its bank that the check
      has
      cleared. The shares of Common Stock issued or issuable upon exercise of this
      Warrant are referred to as the “Warrant Shares.”

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    (2) As
      used
      in this Warrant, the term “Availability Date” shall mean shall mean the date on
      which a certificate of amendment to or restatement of the Company’s certificate
      of incorporation is filed with the Secretary of State of the State of Delaware
      provided that such certificate of amendment effects a one-for-ten reverse
      split.

     

    (b)  RESERVATION
      OF SHARES. The Company hereby agrees that at all times from and after the
      Availability Date, there shall be reserved for issuance and/or delivery upon
      exercise of this Warrant such number of shares of Common Stock as shall be
      required for issuance and delivery upon exercise of this Warrant and that it
      shall not, without the prior approval of the holders of a majority of the
      Warrants then outstanding, increase the par value of the Common Stock in a
      manner such that the exercise price is less than the par value.

     

    (c)  FRACTIONAL
      SHARES. No fractional shares or script representing fractional shares shall
      be
      issued upon the exercise of this Warrant. If the fraction is less than one-half
      (1⁄2), the fraction shall be dropped, and if the fraction is one-half (1⁄2) or more,
      the number of shares of Common Stock to be issued shall be rounded to the next
      higher integral number of shares.

     

    (d)  EXCHANGE,
      TRANSFER, ASSIGNMENT OR LOSS OF WARRANT. This Warrant is exchangeable, without
      expense, at the option of the Holder, upon presentation and surrender hereof
      to
      the Company or at the office of its stock transfer agent, if any, for other
      Warrants of different denominations entitling the holder thereof to purchase
      in
      the aggregate the same number of shares of Common Stock purchasable hereunder.
      Subject to the provisions of Section (k) of this Warrant, upon surrender of
      this
      Warrant to the Company or at the office of its stock transfer agent, if any,
      with the Assignment Form annexed hereto duly executed and funds sufficient
      to
      pay any transfer tax, the Company shall, without charge, execute and deliver
      a
      new Warrant in the name of the assignee named in such instrument of assignment
      and this Warrant shall promptly be canceled. This Warrant may be divided or
      combined with other Warrants which carry the same rights upon presentation
      hereof at the office of the Company or at the office of its stock transfer
      agent, if any, together with a written notice specifying the names and
      denominations in which new Warrants are to be issued and signed by the Holder
      hereof. The term “Warrant” as used herein includes any Warrants into which this
      Warrant may be divided or exchanged. Upon receipt by the Company of evidence
      satisfactory to it of the loss, theft, destruction or mutilation of this
      Warrant, and (in the case of loss, theft or destruction) of reasonably
      satisfactory indemnification, and upon surrender and cancellation of this
      Warrant, if mutilated, the Company will execute and deliver a new Warrant of
      like tenor. Any such new Warrant executed and delivered shall constitute an
      additional contractual obligation on the part of the Company, whether or not
      this Warrant so lost, stolen, destroyed, or mutilated shall be at any time
      enforceable by anyone.

     

    (e)  RIGHTS
      OF
      THE HOLDER. The Holder shall not, by virtue of this Warrant, be entitled to
      any
      rights of a stockholder in the Company, either at law or equity, and the rights
      of the Holder are limited to those expressed in the Warrant and are not
      enforceable against the Company except to the extent set forth in this
      Warrant.

     

    (f)  ANTI-DILUTION
      PROVISIONS. If the Company shall, subsequent to September 19, 2006, (i) pay
      a
      dividend or make a distribution on its shares of Common Stock in shares of
      Common Stock (ii) subdivide or reclassify its outstanding Common Stock into
      a
      greater number of shares, or (iii) combine or reclassify its outstanding Common
      Stock into a smaller number of shares or otherwise effect a reverse split,
      the
      Exercise Price in effect at the time of the record date for such dividend or
      distribution or the effective date of such subdivision and the number of shares
      of Common Stock (or other securities) issuable upon exercise of this Warrant
      shall be proportionately adjusted to reflect such transaction. Whenever the
      Exercise Price payable upon exercise of this Warrant is adjusted pursuant to
      this Section (f), the number of Warrant Shares purchasable upon exercise of
      this
      Warrant shall simultaneously be adjusted by multiplying the number of shares
      of
      Common Stock issuable upon exercise of this Warrant in effect on the date
      thereof by the Exercise Price in effect on the date thereof and dividing the
      product so obtained by the Exercise Price, as adjusted. In no event shall the
      Exercise Price per share be less than the par value per share, and, if any
      adjustment made pursuant to this Section (f) shall in an exercise price of
      less
      than the par value per share, then, in such event, the Exercise Price per share
      shall be the par value per share. Such adjustment shall be made successively
      whenever any event listed in this Section (f) shall occur.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

       

    

    (g)  OFFICER’S
      CERTIFICATE. Whenever the Exercise Price shall be adjusted as required by the
      provisions of Section (f) of this Warrant, the Company shall forthwith file
      in
      the custody of its Secretary or an Assistant Secretary at its principal office
      and with its stock transfer agent, if any, an officer’s certificate showing the
      adjusted Exercise Price and the adjusted number of shares of Common Stock
      issuable upon exercise of each Warrant, determined as herein provided, setting
      forth in reasonable detail the facts requiring such adjustment. Each such
      officer’s certificate shall be made available at all reasonable times for
      inspection by the Holder, and the Company shall, forthwith after each such
      adjustment, mail, by first class mail, a copy of such certificate to the Holder
      at the Holder’s address set forth in the Company’s Warrant
      Register.

     

    (h)  NOTICES
      TO WARRANT HOLDERS. So long as this Warrant shall be outstanding, (1) if the
      Company shall pay any dividend or make any distribution upon Common Stock (other
      than a cash dividend payable out of retained earnings) or (2) if the Company
      shall offer to the holders of Common Stock for subscription or purchase by
      them
      any share of any class or any other rights or (3) if any capital reorganization
      of the Company, reclassification of the capital stock of the Company,
      consolidation or merger of the Company with or into another corporation, sale,
      lease or transfer of all or substantially all of the property and assets of
      the
      Company to another corporation, or voluntary or involuntary dissolution,
      liquidation or winding up of the Company shall be effected, then in any such
      case, the Company shall cause to be mailed by certified mail, return receipt
      requested, to the Holder, at least ten days prior to the date specified in
      the
      following clauses (i) and (ii), as the case may be, of this Section (h) a notice
      containing a brief description of the proposed action and stating the date
      on
      which (i) a record is to be taken for the purpose of such dividend, distribution
      or rights, or (ii) such reclassification, reorganization, consolidation, merger,
      conveyance, lease, dissolution, liquidation or winding up is to take place
      and
      the date, if any is to be fixed, as of which the holders of Common Stock or
      other securities shall receive cash or other property deliverable upon such
      reclassification, reorganization, consolidation, merger, conveyance,
      dissolution, liquidation or winding up.

     

    (i)  RECLASSIFICATION,
      REORGANIZATION OR MERGER.

     

    (1)  In
      case
      of any reclassification, capital reorganization or other change of outstanding
      shares of Common Stock of the Company, or in case of any consolidation or merger
      of the Company with or into another corporation (other than a 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 of the class issuable upon exercise of this Warrant) or in
      case
      of any sale, lease or conveyance to another corporation of the property of
      the
      Company as an entirety, the Company shall, as a condition precedent to such
      transaction, cause effective provisions to be made so that the Holder shall
      have
      the right thereafter by exercising this Warrant, to purchase the kind and amount
      of shares of stock and other securities and property receivable upon such
      reclassification, capital reorganization and other change, consolidation,
      merger, sale or conveyance by a holder of the number of shares of Common Stock
      which might have been purchased upon exercise of this Warrant immediately prior
      to such reclassification, change, consolidation, merger, sale or conveyance.
      Any
      such provision shall include provision for adjustments which shall be as nearly
      equivalent as may be practicable to the adjustments provided for in this
      Warrant. The foregoing provisions of this Section (i)(1) shall similarly apply
      to successive reclassifications, capital reorganizations and changes of shares
      of Common Stock and to successive consolidations, mergers, sales or
      conveyances.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

       

    

    (2)  Notwithstanding
      the provisions of Section (i)(1) of this Warrant, in the event of a Specified
      Merger, as hereinafter defined, this Warrant, if not exercised prior to the
      effective time of the Specified Merger, shall, at the effective time of the
      Specified Merger, without any action on the part of the holder, become and
      be
      converted into the right to receive cash or securities equal to the amount
      determined by multiplying the number of shares of Common Stock issuable upon
      exercise of this Warrant by the amount by which (x) the consideration payable
      with respect to one share of Common Stock in the Specified Merger exceeds (y)
      the Exercise Price. A Specified Merger shall mean the merger or consolidation
      of
      the Company into another corporation or entity or the sale by the Company of
      all
      or substantially all of its business and assets in a transaction in which the
      net proceeds or other consideration from such sale are distributed to the
      Company’s stockholders in liquidation of their shares of Common Stock, if, and
      only if, the sole consideration to be received by the holders of the Common
      Stock is cash, including any contingent cash, and/or securities all of which
      are
      listed on the New York or American Stock Exchange, the Nasdaq Stock Market
      or
      the OTC
      Bulletin Board.
      Securities issued in the Specified Merger shall be valued at the average closing
      price thereof on the principal stock exchange or market on which the securities
      are listed for the five-day period ending the day prior to the effective date
      of
      the Specified Merger. Payment to the holder of this Warrant with respect to
      any
      such securities shall be payable in either cash or in such securities (valued
      as
      herein provided), as the Company shall determine. If, in a Specified Merger,
      the
      value of the consideration payable with respect to one share of Common Stock
      is
      less than the Exercise Price, no payment shall be made to the holder of this
      Warrant, and this Warrant shall terminate.

     

    (j)  REGISTRATION
      PURSUANT TO THE SECURITIES ACT OF 1933.

     

    (1)  This
      Warrant was initially issued in connection with a securities purchase agreement
      dated September 15, 2006, between the Company and Barron Partners LP. The
      Company agrees to use its commercially reasonable efforts to include the Warrant
      Shares in the first registration statement filed by the Company with respect
      to
      the Common Stock issuable upon conversion or exercise of the securities issued
      pursuant to such agreement; provided, however, that the Company is not granting
      the Holder any rights not expressly set forth in this Section (j). 

     

    (2)  The
      following provision of this Section (j) shall also be applicable:

     

    (A)  The
      Company shall bear the entire cost and expense of any registration made pursuant
      to Section (j)(1) of this Warrant; provided, however, bear the fees of his
      own
      counsel and accountants and any transfer taxes or underwriting or brokers’
discounts or commissions applicable to the Warrant Shares sold by him pursuant
      thereto.

     

    (B)  The
      Company shall indemnify and hold harmless each such holder and each underwriter,
      within the meaning of the Securities Act, who may purchase from or sell for
      any
      such holder any Warrant Shares each other person, if any, who controls such
      holder or underwriter, and their respective directors, officers, partners,
      agents and affiliates from and against any and all losses, claims, damages
      or
      liabilities, joint or several, to which they or any of them may become subject
      under the Securities Act, the Securities Exchange Act of 1934, as amended,
      or
      other federal or state statutory law or regulation, at common law or otherwise,
      insofar as such losses, claims, damages or liabilities (or actions in respect
      thereof), which are collectively referred to as “Losses,” arise out of or are
      based upon (i) any untrue statement or alleged untrue statement of a material
      fact made by the Company contained in the registration statement, or any
      amendment thereof, or in any preliminary prospectus or the prospectus, or any
      amendment thereof or supplement thereto, or in any blue sky application or
      other
      document executed by the Company specifically for that purpose (or based upon
      written information furnished by the Company) filed in any state or other
      jurisdiction in order to qualify any of the Warrant Shares under the securities
      laws thereof (any such application, document or information being referred
      to as
      a “Blue Sky Application”); or (ii) the omission or alleged omission to state in
      any such registration statement, preliminary prospectus or prospectus, or
      amendment thereof or supplement thereto, or Blue Sky Application a material
      fact
      required to be stated therein or necessary to make the statements made therein
      not misleading, and agrees to reimburse each such indemnified party for any
      legal or other expenses reasonably incurred by it in connection with
      investigating or defending against any such loss, claim, damage, liability
      or
      action; provided, however, that the Company will not be liable in any such
      case
      to the extent that any such loss, claim, damage, liability or action arises
      out
      of or is based upon any such untrue statement or alleged untrue statement or
      omission or alleged omission made therein or omitted therefrom in reliance
      upon
      and in conformity with written information furnished to the Company by or on
      behalf of any holder specifically for use in connection with the preparation
      thereof, and further provided, however, that the foregoing indemnity with
      respect to any untrue statement, alleged untrue statement, omission, or alleged
      omission contained in any preliminary prospectus shall not inure to the benefit
      of any holder from whom the person asserting any such loss, claims, damage,
      liability or action purchased any of the securities that are the subject thereof
      (or to the benefit of any person who controls such holder or other person),
      if a
      copy of the prospectus was not delivered to such person with or prior to the
      written confirmation of the sale of such security to such person. The indemnify
      provided for in this Section (j)(2)(B) shall remain in full force and effect
      regardless of any investigation made by or on behalf of the indemnified party
      and shall survive any transfer of the Warrant Shares by the indemnified party.
      This indemnity agreement will be in addition to any liability that the Company
      may otherwise have.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

       

    

    (C)  In
      connection with any registration statement filed by the Company pursuant to
      this
      Section (j) in which a holder has registered for sale Warrant Shares, the holder
      shall, and by acceptance of this Warrant, agrees to, indemnify and hold harmless
      the Company and each of its directors, officers, employees and agents, each
      underwriter and each other person, if any, who controls the Company, the
      underwriter and each other seller and such underwriter’s and such seller’s
      directors, officers, stockholders, partners, employees, agents and affiliates
      from and against any and all Losses to which they or any of them may become
      subject under the Securities Act, the Exchange Act, or other federal or state
      statutory law or regulation, at common law or otherwise, insofar as such losses,
      claims, damages, or liabilities (or actions in respect thereof) arise out of
      or
      are based upon (i) any untrue statement or alleged untrue statement of a
      material fact contained in the registration statement, or any amendment thereof,
      or in any preliminary prospectus or the prospectus, or any amendment thereof
      or
      supplement thereto, or in a Blue Sky Application, or (ii) the omission or the
      alleged omission to state in any such registration statement, preliminary
      prospectus or prospectus, amendment thereof or supplement thereto, or Blue
      Sky
      Application a material fact required to be stated therein or necessary to make
      the statements made therein not misleading, in each case to the extent, but
      only
      to the extent, that the same was made therein or omitted therefrom in reliance
      upon and in conformity with written information furnished to the Company by
      or
      on behalf of such holder specifically for use in the preparation thereof, and
      agrees to reimburse each such indemnified party for any legal or other expenses
      reasonably incurred by it in connection with investigating or defending against
      any such loss, claim, damage, liability or action. The indemnify provided for
      in
      this Section (j)(2)(C) shall remain in full force and effect regardless of
      any
      investigation made by or on behalf of the indemnified party and shall survive
      any transfer of the Warrant Shares by the indemnified party. This indemnity
      agreement will be in addition to any liability that the holder may otherwise
      have.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    (D)  Within
      five (5) days after receipt by an indemnified party under Section (j)(2)(B)
      or
      (C) of this Warrant of notice of the commencement of any action, such
      indemnified party shall, if a claim in respect thereof is to be made against
      an
      indemnifying party under either of such sections, notify the indemnifying party
      in writing of the commencement thereof; the failure so to notify the
      indemnifying party shall relieve the indemnifying party from any liability
      under
      this Section (j)(2) as to the particular item for which indemnification is
      then
      being sought, unless such indemnifying party has otherwise received actual
      notice of the action at least thirty (30) days before any answer or response
      is
      required by the indemnifying party in its defense of such action, but will
      not
      relieve it from any liability that it may have to any indemnified party
      otherwise than under this Section (j)(2). If any such action is brought against
      any indemnified party and it notifies the indemnifying party of the commencement
      thereof, the indemnifying party will be entitled to participate therein and,
      to
      the extent that it may elect by written notice delivered to the indemnified
      party promptly after receiving the aforesaid notice from such indemnified party,
      to assume the defense thereof; provided, that if the defendants in any such
      action include both the indemnified party and the indemnifying party and either
      (i) the indemnifying party or parties agree, or (ii) in the opinion of counsel
      for the indemnifying parties, representation of both the indemnifying party
      or
      parties and the indemnified party or parties by the same counsel is
      inappropriate under applicable standards of professional conduct because of
      actual or potential conflicting interests between them, then the indemnified
      party or parties shall have the right to select separate counsel to assume
      such
      legal defense and to otherwise participate in the defense of such action. The
      indemnifying party will not be liable to such indemnified party under this
      Section (j)(2)(D) for any legal or other expenses subsequently incurred by
      such
      indemnified party in connection with the defense thereof unless (x) the
      indemnified party shall have employed counsel in connection with the assumption
      of legal defenses in accordance with the proviso to the immediately preceding
      sentence (it being understood, however, that the indemnifying party shall not
      be
      liable for the expenses of more than one separate counsel in each jurisdiction
      which counsel is approved by indemnified parties (whether pursuant to this
      Warrant, or other Warrants issued by the Company or other agreements if the
      claim relates to the same or similar allegations) holding a majority of the
      shares as to which indemnification is claimed), (ii) the indemnifying party
      shall not have employed counsel to represent the indemnified party within a
      reasonable time after notice of commencement of the action, or (iii) the
      indemnifying party has authorized the employment of counsel for the indemnified
      party at the expense of the indemnifying party. In no event shall an
      indemnifying party be liable under this Section (j)(2)(D) for any settlement,
      effected without its written consent, which consent shall not be unreasonably
      withheld, of any claim or action against an indemnified party.

     

    (E)  If
      the
      indemnification provided for in this Section (j) shall for any reason be
      unavailable to an indemnified party under Section (j)(2)(B) or (C) of this
      Warrant in respect of any Losses, then, in lieu of the amount paid or payable
      under said Section (j)(2)(B) or (C), the indemnified party and the indemnifying
      party under said Section (j)(2)(B) or (C) shall contribute to the aggregate
      Losses (including legal or other expenses reasonably incurred in connection
      with
      investigating the same) (i) in such proportion as is appropriate to reflect
      the
      relative fault of the Company and the prospective sellers of Warrant Shares
      covered by the registration statement which resulted in such Loss or action
      in
      respect thereof, with respect to the statements, omissions or action which
      resulted in such Loss or action in respect thereof, as well as any other
      relevant equitable considerations, or (ii) if the allocation provided by clause
      (i) above is not permitted by applicable law, in such proportion as shall be
      appropriate to reflect the relative benefits received by the Company, on the
      one
      hand, and such prospective sellers, on the other hand, from their sale of
      Warrant Shares; provided, that, for purposes of this clause (ii), the relative
      benefits received by any prospective sellers shall be deemed not to exceed
      (and
      the amount to be contributed by any prospective seller shall not exceed) the
      amount received by such seller. No person guilty of fraudulent misrepresentation
      (within the meaning of Section 11(f) of the Securities Act) shall be entitled
      to
      contribution from any person who was not guilty of such fraudulent
      misrepresentation. The obligations, if any, of the holders of Warrant Shares
      to
      contribute as provided in this Section (j)(2)(E) are several in proportion
      to
      the relative value of their respective Warrant Shares covered by such
      registration statement and not joint. In addition, no person shall be obligated
      to contribute hereunder any amounts in payment for any settlement of any action
      or Losses effected without such person’s consent.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

       

    

    (F)  Neither
      the giving of any notice by any holder nor the making of any request for
      prospectuses shall impose any upon any holder making such request any obligation
      to sell any Warrant Shares or exercise any Warrants.

     

    (G)  In
      connection with any registration statement filed pursuant to this Section (j),
      the Company shall supply prospectuses and qualify the Warrant Shares for sale
      in
      such states as the Company is otherwise qualifying shares of Common Stock being
      registered thereunder, provided, that the Company shall not be required to
      qualify or register the Warrant Shares in any jurisdiction where such
      qualification or registration would require the Company to submit generally
      to
      the jurisdiction of such state.

     

    (3)  As
      a
      condition to the inclusion of the Warrant Shares of the holder of this Warrant,
      in any registration statement pursuant to this Section (j), the holder
      shall:

     

    (A)  furnish
      the information and indemnification as set forth in this Section (j), together
      with any additional information which the Company may request in order to enable
      it to file the registration statement and update such information immediately
      upon the occurrence of any events or condition which make the information
      concerning the holder inaccurate in any material respect;

     

    (B)  not
      sell
      any Warrant Shares pursuant to the registration statement except in the manner
      set forth in the registration statement;

     

    (C)  comply
      with the prospectus delivery requirements and the provisions of Regulation
      M of
      the Commission pursuant to the Securities Act; 

     

    (D)  not
      sell
      or otherwise transfer or distribute any Warrant Shares if the holder possesses
      any material nonpublic information concerning the Company; 

     

    (E)  not
      sell
      or otherwise transfer any Warrant Shares pursuant to a registration statement
      upon receipt of advice from the Company that the registration statement is
      no
      longer current until the holder is advised that the Warrant Shares may be sold
      pursuant to the registration statement; and

     

    (F)  agree
      to
      indemnity and confidentiality provisions and the restrictions on sale set forth
      in Sections (j)(2) and (j)(4) of this Warrant.

     

    (4)  (A)The
      term
“Excusable Reason” means the occurrence of negotiations with respect to material
      agreements prior to the announcement of the execution of the agreement or the
      termination of the negotiations and other similar material corporate events
      to
      which the Company is a party or expects to be a party if, in the reasonable
      judgment of the Company, disclosure of the negotiations or other event would
      be
      adverse to the best interests of the Company provided that the Company is
      continuing to treat such negotiations as confidential and provided further
      that
      the period during which the Company is precluded from filing the registration
      statement (or suspended the use of an effective registration statement) as
      a
      result of any Excusable Reason has not exceeded one hundred twenty (120) days
      in
      any twelve month period.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

       

    

    (B)  Any
      information relating to an Excusable Reason shall be deemed to be confidential
      information regardless of whether it is expressly marked as confidential.
      Information that is or becomes available to a holder of Warrant Shares from
      a
      public source or is disclosed to a holder of Warrant Shares by a third-party
      source who has the right to disclose such information shall not be deemed to
      be
      confidential information for purposes of this Section (j)(4)(B). Each holder
      shall indemnify and hold harmless the Company, its officer, directors and
      counsel from and against any Losses which they may incur as a result of any
      breach of the provisions of this Section (j)(4)(B).

     

    (C)  Notwithstanding
      any provisions of Section (j)(1) of this Warrant, the Company shall not be
      required to file a registration statement or take any action to cause a
      registration statement to become effective for an Excusable Reason, and, if
      the
      registration statement covering Warrant Shares has been declared effective,
      the
      Company shall notify the holder, and the holder shall not sell any Warrant
      Shares pursuant to a registration statement or otherwise as long as an Excusable
      Reason exists.

     

    (5)  Nothing
      in this Section (j)(5) shall be construed to restrict the ability of any Selling
      Holder to sell Warrant Shares in a transaction which is exempt from registration
      pursuant to Rule 144 of the Commission pursuant to Securities Act.

     

    (6)  The
      Company’s agreements with respect to Warrants or Warrant Shares in this Section
      (j) shall continue in effect regardless of the exercise and surrender of this
      Warrant.

     

    (7)  The
      provisions of this Section (j) relate to the Warrant Shares, and no holder
      shall
      have any right to register or require the Company to register the
      Warrants.

     

    (k)  TRANSFER
      TO COMPLY WITH THE SECURITIES ACT. This Warrant or the Warrant Shares or any
      other security issued or issuable upon exercise of this Warrant may not be
      sold
      or otherwise disposed of except as follows:

     

    (1)  To
      a
      person who, in the opinion of counsel for the Company, is a person to whom
      this
      Warrant or Warrant Shares may legally be transferred without registration and
      without the delivery of a current prospectus under the Securities Act and in
      compliance with applicable state securities laws with respect thereto and then
      only against receipt of an agreement of such person to comply with the
      provisions of this Section (k) with respect to any resale or other disposition
      of such securities which agreement shall be satisfactory in form and substance
      to the Company and its counsel; or

     

    (2)  To
      any
      person upon delivery of a prospectus then meeting the requirements of the
      Securities Act and state securities laws relating to such securities and the
      offering thereof for such sale or disposition.

     

    Dated
      as
      of September 19, 2006

     

    
      	 	 	 
	 	SCIENCE
              DYNAMICS
              CORPORATION 
	 
 	 
 	 
 
	 	By:  	 
	 	
              
Paul
              Burges, Chief Executive Officer

    

     

    
      
        
        

      

      
        8

        
          

        

      

       

    

    PURCHASE
      FORM

     

    Dated:                                
       ,
      20  

     

    The
      undersigned hereby irrevocably exercises this Warrant to the extent of
      purchasing _______ shares of Common Stock and hereby makes payment of
      $____________ in payment of the Exercise Price therefor.

     

    INSTRUCTIONS
      FOR REGISTRATION OF STOCK

     

    Name:______________________________________________________________________________
      

    (Please
      typewrite or print in block letters)

    

    Signature:___________________________________________
      

    

    Social
      Security or Employer Identification No.________________________

    

    ASSIGNMENT
      FORM

    

    FOR
      VALUE
      RECEIVED,_______________________________________________________

    hereby
      sells, assigns and transfer unto

    Name_________________________________________________________________________
      

    (Please
      typewrite or print in block letters)

    Address________________________________________________________________________
      

    

    Social
      Security or Employer Identification No._______________________ 

    

    The
      right
      to purchase Common Stock represented by this Warrant to the extent of
      _________shares as to which such right is exercisable and does hereby
      irrevocably constitute and appoint __________________ attorney to transfer
      the
      same on the books of the Company with full power of substitution.

    

    Dated:                              
      , 20 

     

     

    Signature____________________________________
      

     

    Signature
      Medallion Guaranteed:

     

    _________________________________________
      

     

    
      
        
        

      

      
        9

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