Document:

EXHIBIT
        4

       

       

       

      DIAMOND
        DISCOVERIES INTERNATIONAL CORP.

       

      2005
        STOCK INCENTIVE PLAN

       

       

      The
        purpose of the Diamond Discoveries International Corp. 2005 Stock Incentive
        Plan
        (the “Plan”)
        is to
        provide (a) designated employees (including employees who are also officers
        or
        directors) of Diamond Discoveries International Corp. and its subsidiaries
        (the
“Company”),
        (b)
        certain consultants and advisors to the Company, and (c) non-employee members
        of
        the Board of Directors of the Company (the “Board”)
        with
        the opportunity to receive grants of incentive stock options and nonqualified
        stock options (“Options”)
        and
        restricted stock awards (“Restricted
        Stock Awards”). Options
        and Restricted Stock Awards are collectively referred to herein as “Awards”).

      

      1. 
        Administration.  
        The
        Plan
        will be administered by the compensation committee (the “Committee”)
        of the
        Board. If no compensation committee is appointed by the Board, all references
        in
        the Plan to the Committee shall be deemed to refer to the Board. The Committee
        shall have the sole authority to (a) determine the individuals to whom Awards
        shall be granted under the Plan, (b) determine the type, size, and terms
        of the
        Awards to be granted to each such individual, (c) determine the time when
        the
        Awards will be granted and the duration of any applicable exercise period,
        including the criteria for exercisability and the acceleration of
        exercisability, and (d) deal with any other matters arising under the Plan.
        The
        Committee shall have full power and authority to administer and interpret
        the
        Plan, to make factual determinations and to adopt or amend such rules,
        regulations, agreements, and instruments for implementing the Plan and for
        the
        conduct of its business as it deems necessary or advisable, in its sole
        discretion. The Committee's interpretations of the Plan and all determinations
        made by the Committee pursuant to the powers vested in it hereunder shall
        be
        conclusive and binding on all persons having any interest in the Plan or
        in any
        Awards granted hereunder. All powers of the Committee shall be executed in
        its
        sole discretion, in the best interest of the Company, not as a fiduciary,
        and in
        keeping with the objectives of the Plan and need not be uniform as to similarly
        situated individuals. None of the Board of Directors or any member thereof,
        the
        Committee or any member thereof, any officer or delegate of any of the foregoing
        (collectively, the “Exculpated
        Persons”),
        shall
        be liable to anyone for any act, omission, interpretation, construction,
        or
        determination made in good faith in connection with the Plan (collectively,
        the
“Covered
        Acts”).
        Each
        Exculpated Person shall be entitled to indemnification and reimbursement
        by the
        Company in respect of any claim, loss, damage, or expense, including without
        limitation reasonable attorneys’ fees, arising out of or resulting from any
        Covered Act to the fullest extent permitted by law, any indemnification
        agreement between any Exculpated Person and the Company, and/or under any
        applicable insurance coverage which may be in effect from time to time.

       

      2. 
        Shares
        Subject to the Plan.   The
        aggregate number of shares of common stock of the Company (“Company
        Stock”)
        that
        may be issued under the Plan is Thirty Five Million (35,000,000) shares.
        The
        shares may be authorized but unissued shares of Company Stock or reacquired
        shares of Company Stock, including shares purchased by the Company on the
        open
        market for purposes of the Plan. If, and to the extent, Awards granted under
        the
        Plan terminate, expire, or are canceled, forfeited, exchanged, or surrendered
        without having been exercised, the shares subject to such Awards shall again
        be
        available for purposes of the Plan.

       

      3. 
        Eligibility
        for Participation.   All
        employees of the Company (“Employees”),
        including Employees who are officers or members of the Board, and members
        of the
        Board who are not Employees (“Non-Employee
        Directors”)
        shall
        be eligible to participate in the Plan. Consultants and advisors who perform
        services for the Company (“Key
        Advisors”)
        shall
        be eligible to participate in the Plan if the Key Advisors render bona fide
        services and such services are not in connection with the offer or sale of
        Company securities in a capital-raising transaction. Employees, Key Advisors,
        and Non-Employee Directors who receive Awards under the Plan shall hereinafter
        be referred to as “Grantees.”

       

      4. 
        Options.  
        Options
        granted under the Plan may be incentive stock options (“Incentive
        Stock Options”)
        or
        nonqualified stock options (“Nonqualified
        Stock Options”).
        All
        Awards shall be subject to the terms and conditions set forth herein and
        to such
        other terms and conditions consistent with the Plan as the Committee deems
        appropriate and as are specified in writing by the Committee to the individual
        in a grant instrument (the “Grant
        Instrument”)
        or an
        amendment to the Grant Instrument. The Committee shall approve the form and
        provisions of each Grant Instrument. Incentive Stock Options may be granted
        only
        to Employees. Nonqualified Stock Options may be granted to Employees,
        Non-Employee Directors, and Key Advisors. The purchase price (the “Exercise
        Price”)
        of
        Company Stock subject to an Option shall be determined by the Committee,
        provided
        however,
        that
        (x) the Exercise Price of an Incentive Stock Option shall be equal to, or
        greater than, the Fair Market Value of a share of Company Stock on the date
        the
        Incentive Stock Option is granted unless such Employee, at the time of grant,
        owns stock possessing more than 10 percent of the total combined voting power
        of
        all classes of stock of the Company or any parent or subsidiary of the Company,
        in which event the Exercise Price per share shall be not less than 110% of
        the
        Fair Market Value of Company Stock on the date of grant. “Fair Market Value” per
        share shall be the mean between the last reported “bid” and “asked” prices of
        Company Stock on the relevant date. The Exercise Price of a Nonqualified
        Stock
        Option may be any price approved by the Committee and is not required to
        be Fair
        Market Value.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

         

        5. 
          Restricted
          Stock Awards.   The
          Committee may grant Restricted Stock Awards pursuant to the Plan. Restricted
          Stock Awards may be granted to Employees, Non-Employee Directors, and Key
          Advisors. Restricted Stock Awards shall be in any form the Committee deems
          appropriate, including but not limited to, stock for converted options,
          stock
          bonuses, and stock purchase rights. Each Restricted Stock Award shall be
          evidenced by a Grant Instrument. A Grantee’s right to retain a Restricted Stock
          Award may be subject to such restrictions, including, but not limited to,
          continuous employment by the Company for a specified period as the Committee
          deems appropriate. The Committee may, in its sole discretion, require different
          periods of employment and objectives with respect to different Grantees,
          different Restricted Stock Awards, or designated portions of a single Restricted
          Stock Award. Company Stock subject to a Restricted Stock Award shall be
          issued
          and delivered at the time of the grant or as otherwise determined by the
          Committee, and may be free trading or may be subject to forfeiture until
          provided otherwise in the Grant Instrument or the Plan. Grants of Restricted
          Stock Awards shall be made at such cost to the Grantee as the Committee
          shall
          determine and may be issued in consideration for past services actually
          rendered
          to or for the benefit of the Company.

         

        6. 
          Amendment
          and Termination of the Plan.   The
          Board
          may amend or terminate the Plan at any time; provided, however, that any
          amendment to the Plan that requires stockholder approval shall be submitted
          to a
          vote of stockholders in order to comply with Section 162(m) of the Internal
          Revenue Code of 1986, as amended, if such Section is applicable to the
          Plan. The
          Plan shall terminate on the day immediately preceding the tenth anniversary
          of
          its effective date unless terminated earlier by the Board or unless extended
          by
          the Board with the approval of the stockholders. 

         

        7. 
          Administrative
          Provisions.   

         

      

      (a) Governing
        Document.
        The
        Plan and any Grant Instrument shall be the controlling document and shall
        govern
        the rights and obligations of the Company and the applicable Grantee. No
        other
        statements, representations, explanatory materials, or examples, oral or
        written, may amend the Plan in any manner. The Plan shall be binding upon
        and
        enforceable against the Company and its successors and assigns.

       

      (b) Rights
        of Participants.
        Nothing
        in the Plan shall entitle any Employee, Key Advisor or other person to any
        claim
        or right to be granted an Award under the Plan. Neither the Plan nor any
        action
        taken hereunder shall be construed as giving any individual any rights to
        be
        retained by or in the employ of the Company or any other employment
        rights.

       

      (c) Headings.
        Section
        headings are for reference only. In the event of a conflict between a title
        and
        the content of a section, the content of the section shall control.

       

      (d) Effective
        Date of the Plan.
        The
        Plan was adopted by the Board of Directors on September 22, 2005, and by
        the
        stockholders on effective November 14, 2005.

       

      (e) Certain
        Awards.
        Nothing
        contained in the Plan shall be construed to (a) limit the right of the Committee
        to grant Awards under the Plan in connection with the acquisition by purchase,
        lease, merger, consolidation or otherwise, of the business or assets of any
        corporation, firm or association, including Awards granted to employees thereof
        who become Employees of the Company, or for other proper corporate purpose,
        or
        (b) limit the right of the Company to grant stock options or restricted stock
        awards or to grant stock appreciation rights, performance shares, dividend
        equivalent payments or other stock based awards or make other awards outside
        of
        the Plan. Without limiting the foregoing, the Committee may grant Awards
        to an
        employee of another corporation who becomes an Employee by reason of a corporate
        merger, consolidation, acquisition of stock or property, reorganization or
        liquidation involving the Company in substitution for a stock option or
        restricted stock award made by such corporation. The Committee shall prescribe
        the provisions of the substitute Awards.

       

      
        
          
          

        

        
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      (f) Compliance
        with Law.
        The
        Plan, the grant and exercise of Awards, and the obligations of the Company
        to
        issue or transfer shares of Company Stock under Awards shall be subject to
        all
        applicable laws and to approvals by any governmental or regulatory agency
        as may
        be required. The Committee may revoke any grant if it is contrary to law
        or
        modify a grant to bring it into compliance with any valid and mandatory
        government regulation. 

       

      (g) Withholding
        Taxes.
        The
        Committee shall adopt rules regarding the withholding of taxes due upon the
        exercise of Awards.

       

      (h) Ownership
        of Stock.
        A
        Grantee or successor Grantee shall have no rights as a stockholder with respect
        to any shares of Company Stock covered by an Award until the shares are issued
        or transferred to the Grantee or successor Grantee on the stock transfer
        records
        of the Company. Once an Award is exercised, the purchaser shall have the
        rights
        equivalent to those of a stockholder, and shall be a stockholder when his
        or her
        purchase is entered upon the records of the duly authorized transfer agent
        of
        the Company. No adjustment will be made for a dividend or other right for
        which
        the record date is prior to the date the Award is exercised.

       

      (i) Governing
        Law.
        The
        validity, construction, interpretation, and effect of the Plan and Grant
        Instruments issued under the Plan shall exclusively be governed by and
        determined in accordance with the laws of the State of Delaware.

       

      
        
          
             

          

          
          

        

        
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      DIAMOND
        DISCOVERIES 2005 STOCK 

      INCENTIVE
        PLAN EXHIBIT A

       

      DIAMOND
        DISCOVERIES INTERNATIONAL CORP.

       

      COMMON
        STOCK PURCHASE OPTION

       

      No.
        2005-00_                                                                            Void
        _________, 200_

       

      OPTION
        TO
        PURCHASE SHARES OF COMMON STOCK

       

      THIS
        CERTIFIES THAT, for value received, __________________(along with any permitted
        transferees pursuant to Section 7, the “Holder”)
        can
        purchase ___________ shares (as adjusted pursuant to Section 3 hereof)
        of
        the fully paid and nonassessable Common Stock, $0.001 par value per share
        (each
        share, a “Option
        Share”),
        of
        Diamond Discoveries International Corp., a Delaware corporation (the
“Company”),
        at an
        exercise price of $__ per Option Share (the “Exercise
        Price”)
        (as
        adjusted pursuant to Section 3), subject to the provisions and upon
        the
        terms and conditions hereinafter set forth.

       

      1.  Method
        of Exercise; Payment.

       

      (a)  Exercise.
        The
        Holder can exercise the purchase rights represented by this Option, in whole
        or
        in part, by surrendering this Option (with the notice of exercise form attached
        as Exhibit A,
        duly
        executed) at the Company’s principal office, and by paying the Company, by
        certified, cashier’s or other check acceptable to the Company or promissory note
        on terms and conditions satisfactory to the Company, an amount equal to the
        aggregate Exercise Price of the Option Shares being purchased, by the transfer
        and delivery to the Company of shares of its common stock having a Fair Market
        Value on the date of exercise of the Option at least equal to the option
        price,
        by authorization from the Company to retain from the total number of shares
        as
        to which the Option is exercised that number of shares having a Fair Market
        Value on the date of exercise equal to the exercise price for the total number
        of Shares as to which the option is exercised or any combination
        thereof.

       

      (b)  Reserved

       

      (c)  Stock
        Certificates.
        In the
        event of any exercise of the rights represented by this Option, the Company
        will
        deliver (i) certificates for the Option Shares so purchased to the
        Holder
        within a reasonable time and, unless this Option has been fully exercised
        or has
        expired, (ii) a new Option representing the Option Shares with respect
        to
        which this Option will not have been exercised.

       

      2.  Stock
        Fully Paid; Reservation of Shares.
        All of
        the Option Shares issuable upon the exercise of the rights represented by
        this
        Option will, upon issuance and receipt of the Exercise Price for such Option
        Shares, be fully paid and nonassessable, and free from all taxes, liens and
        charges with respect to that issuance. During the period within which the
        rights
        represented by this Option may be exercised, the Company will at all times
        have
        authorized and reserved for issuance sufficient Option Shares to provide
        for the
        exercise of the rights represented by this Option.

       

      3.  Adjustments.
        The
        number and kind of securities purchasable upon the exercise of this Option
        and
        the Exercise Price therefor will be subject to adjustment from time to time
        upon
        the occurrence of certain events, as follows:

       

      
        
          
          

        

        
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      (a)  Reclassification.
        In case
        of any reclassification or change of the Option Shares (other than a change
        in
        par value, or as a result of a subdivision or combination), the Company will
        execute a new Option, providing that the Holder will have the right to exercise
        that new Option, and procure upon that exercise and payment of the same
        aggregate Exercise Price, in lieu of the Option Shares previously issuable
        upon
        exercise of this Option, the kind and amount of shares of stock, other
        securities, money and property receivable upon that reclassification or change,
        by a holder of an equivalent number of shares of Company common stock. That
        new
        Option will provide for adjustments that will be equivalent to the adjustments
        provided for in this Section 3. The provisions of this subsection 3(a)
        will similarly apply to successive reclassifications or changes.

       

      (b)  Stock
        Splits, Dividends and Combinations.
        In the
        event that the Company will at any time subdivide the outstanding shares
        of
        Company common stock or will issue a stock dividend on its outstanding shares
        of
        Company common stock, the number of Option Shares issuable upon exercise
        of this
        Option immediately prior to such subdivision or to the issuance of that stock
        dividend will be proportionately increased, and the Exercise Price will be
        proportionately decreased, and in the event that the Company will at any
        time
        combine the outstanding shares of Company common stock, the number of Option
        Shares issuable upon exercise of this Option immediately prior to that
        combination will be proportionately decreased, and the Exercise Price will
        be
        proportionately increased, effective at the close of business on the date
        of
        that subdivision, stock dividend or combination, as the case may
        be.

       

      (c)  Reserved.

       

      (d)  Consolidation,
        Merger, or Sale.
        In the
        event the Company consolidates or merges with another corporation (other
        than a
        consolidation or merger in which the Company is the surviving entity and
        that
        does not result in any change in the Option Shares), or any sale or other
        transfer or disposition by the Company of all or substantially all of its
        assets
        to any other corporation, then the Holder will thereafter, upon exercise
        of this
        Option, be entitled to receive the number of Option Shares or other securities
        or property of the Company, or of the successor corporation resulting from
        such
        consolidation or merger, as the case may be, to which the Holder would have
        been
        entitled upon such consolidation, merger, sale, or other disposition if this
        Option had been exercised immediately prior to such consolidation, merger,
        sale,
        or other disposition. In any such case, appropriate adjustment will be made
        in
        the application of the provisions set forth in this Option with respect to
        the
        rights and interests thereafter of the Holder to the end that the provisions
        set
        forth in this Option (including those relating to adjustments of the Exercise
        Price and the number of Option Shares issuable upon the exercise of this
        Option)
        will thereafter be applicable in relation to any shares or other property
        thereafter deliverable upon the exercise of this Option as if this Option
        had
        been exercised immediately prior to such consolidation, merger, sale, or
        other
        disposition and the Holder had carried out the terms of the exchange as provided
        for by such consolidation, or merger. The Company will not effect any such
        consolidation or merger unless, upon or prior to consummating it, the successor
        corporation will assume by written instrument the obligation to deliver to
        the
        Holder such shares of stock or other securities, cash, or property as the
        Holder
        will be entitled to purchase in accordance with the foregoing provisions.
        Notwithstanding any other provisions of this Option, in the event of sale
        or
        other disposition of all or substantially all of the assets of the Company
        as a
        part of a plan for liquidation of the Company, all rights to exercise the
        Option
        will terminate upon the earlier of the expiration of the Exercise Period
        and 60
        days after the Company gives written notice to the Holder that such sale
        or
        other disposition has been consummated. 

       

      4.  Notice
        of Adjustments.
        Whenever the number of Option Shares purchasable under this Option or the
        Exercise Price is adjusted pursuant to Section 3, the Company will
        provide
        notice to the Holder setting forth, in reasonable detail, the event requiring
        the adjustment, the amount of the adjustment, how the adjustment was calculated,
        and the number and class of Option Shares that may be purchased and the Exercise
        Price therefor after giving effect to such adjustment.

       

      
        
          
          

        

        
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      5.  Representations
        and Warranties by the Holder.
        The
        Holder represents and warrants to the Company as follows:

       

      (a)  This
        Option and the Option Shares issuable upon exercise of this Option are being
        acquired for its own account, for investment and not with a view to, or for
        resale in connection with, any distribution or public offering thereof within
        the meaning of the Securities Act of 1933 (the “1933
        Act”).
        Upon
        exercise of this Option, the Holder will, if so requested by the Company,
        confirm in writing, in a form satisfactory to the Company, that the Option
        Shares issuable upon exercise of this Option are being acquired for investment
        and not with a view toward distribution or resale.

       

      (b)  The
        Holder understands that this Option and the Option Shares have not been
        registered under the Act by reason of their issuance in a transaction exempt
        from the registration and prospectus delivery requirements of the 1933 Act
        pursuant to Section 4(2) thereof, and that they must be held by the
        Holder
        indefinitely, and that the Holder must therefore bear the economic risk of
        such
        investment indefinitely, unless a subsequent disposition thereof is registered
        under the 1933 Act or is exempted from such registration. The Holder further
        understands that the Option Shares have not been registered under any applicable
        state securities laws.

       

      (c)  The
        Holder has such knowledge and experience in financial and business matters
        that
        it is capable of evaluating the merits and risks of the purchase of this
        Option
        and the Option Shares issuable upon exercise of this Option and of protecting
        its interests in connection therewith.

       

      (d)  The
        Holder is able to bear the economic risk of the purchase of the Option Shares
        pursuant to the terms of this Option.

       

      6.  Restrictive
        Legend.

       

      The
        Option Shares (unless registered under the 1933 Act) will be stamped or
        imprinted with a legend in substantially the following form:

       

      THE
        SHARES REPRESENTED BY THIS CERTIFICATE HAVE BEEN ACQUIRED FOR INVESTMENT
        AND NOT
        WITH A VIEW TO, OR IN CONNECTION WITH, THE SALE OR DISTRIBUTION THEREOF,
        AND
        HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933. SUCH SHARES
        MAY
        NOT BE SOLD OR TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN EXEMPTION
        THEREFROM UNDER THE SECURITIES ACT OF 1933 AND ANY APPLICABLE SECURITIES
        LAWS. 

       

      7.  Restrictions
        Upon Transfer and Removal of Legend.

       

      (a)  The
        Company need not register a transfer of this Option or Option Shares bearing
        the
        restrictive legend set forth in Section 6 of this Option unless the
        conditions specified in that legend are satisfied. The Company can also instruct
        its transfer agent not to register the transfer of the Option Shares, unless
        one
        of the conditions specified in the legend referred to in Section 6
        of this
        Option is satisfied.

       

      (b)  Notwithstanding
        the provisions of subsection (a) above, the Company must register
        a
        transfer of this Option or Option Shares without consideration by the Holder
        (i) to an affiliate of the Holder, (ii) if the Holder is a
        partnership
        or a limited liability company, to any current and former constituent partners,
        members and shareholders, (iii) if the Holder is a corporation, to
        a
        shareholder of such corporation, or to any other corporation under common
        control, direct or indirect, with the Holder, or (iv) if the Holder
        is an
        individual, by gift, will or intestate succession to (A) a transferee
        or
        assignee who is a spouse, lineal descendant, father, mother, brother or sister
        (each, a “Family
        Member”)
        of the
        Holder or (B) to a trust, the beneficiaries of which are exclusively
        the
        Holder and/or Family Members, provided,
        in each
        case, that:
        (y) the Company is, within a reasonable time after that transfer,
        furnished
        with written notice of the name and address of that transferee or assignee
        and
        the number of Option Shares under this Option that are being assigned; and
        (z) that transferee or assignee agrees in writing to be bound by and
        subject to the terms and conditions of this Option to the same extent as
        if that
        transferee were the original Holder of this Option.

       

      
        
          
          

        

        
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      8.  Rights
        of Shareholders.
        No
        Holder will be entitled, as a Holder, to vote or receive dividends or be
        deemed
        the holder of the Option Shares or any other securities of the Company that
        may
        at any time be issuable on the exercise hereof for any purpose, nor will
        anything contained herein be construed to confer upon the Holder, as a Holder,
        any of the rights of a stockholder of the Company or any right to vote for
        the
        election of directors or upon any matter submitted to shareholders at any
        meeting thereof, or to give or withhold consent to any corporate action (whether
        upon any recapitalization, issuance of stock, reclassification of stock,
        change
        of par value, consolidation, merger, conveyance, or otherwise) or to receive
        notice of meetings, or to receive dividends or subscription rights or otherwise
        until this Option will have been exercised and the Option Shares issuable
        upon
        the exercise of this Option will have become deliverable, as provided in
        this
        Option.

       

      9.  Expiration
        of Option.
        The
        terms and provisions of this Option will terminate and expire and this Option
        will no longer be exercisable on the 36 month anniversary of the date
        hereof.

       

      10.  Notices.
        All
        notices and other communications required or permitted hereunder will be
        in
        writing, will be effective when given, and will in any event be deemed to
        be
        given upon receipt or, if earlier, (a) on the date shown on the return
        receipt, if sent by first class mail, postage prepaid, return receipt requested,
        (b) upon delivery, if delivered by hand, (c) on the date of
        receipt
        shown in the courier’s documentation, if sent by Federal Express or similar
        overnight courier, freight prepaid or (d) one business day after the
        business day of facsimile transmission with confirmation of receipt, if
        delivered by facsimile transmission with copy by first class mail, postage
        prepaid, return receipt requested, and will be addressed 

       

      (i) if
        to the Holder, at 

      

      

      Attn.:
        

      Fax.:
        ()-

       

      and
        (ii) if to the Company, at 

      804
        - 750
        West Pender Street

      Vancouver,
        BC, Canada V6C 2T7

      Attn.:
        Chief Executive Officer 

      Fax.:
        (604) 685-6905

       

      or
        at
        such other address as a party may designate by ten days advance written notice
        to the other party pursuant to the provisions above.

       

      11.  Governing
        Law.
        This
        Option and all rights, obligations and liabilities arising herein shall be
        construed and governed by the substantive Law of the state of New York, without
        giving effect to the principles of conflicts of law thereof. 

       

      12.  Interpretation.
        References to “Section” and “Exhibit” are to the Sections and Exhibits
        respectively of this Option.

       

      
        
          
          

        

        
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      13.  Amendment;
        Integration; Waiver.
        This
        Option may not be amended without a written agreement signed by both parties.
        This Option contains the entire agreement of the parties hereto and supercedes
        any prior agreements and understanding of the parties hereto, written or
        oral,
        with respect to this subject matter. No failure or delay by any party in
        exercising any right, power or privilege hereunder will operate as a waiver
        thereof nor will any single or partial exercise thereof preclude any other
        or
        further exercise thereof or the exercise of any other right, power or privilege.
        The rights and remedies herein provided will be cumulative and not exclusive
        of
        any rights or remedies provided by law.

       

      Issued
        this __ day of _________, 200_.

       

      
        	 	 	 
	 	DIAMOND
                DISCOVERIES INTERNATIONAL CORP.
	 
 	 
 	 
 
	 	By:  	/s/ 
	 	
                

              
	 	 

      

       

      
        
          
             

          

          
          

        

        
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      EXHIBIT A

       

      

       

      NOTICE
        OF EXERCISE

       

      
        	
                TO:

              	
                Diamond
                  Discoveries International Corp.

                804
                  - 750 West Pender Street

                Vancouver,
                  BC, Canada V6C 2T7

              

      

             

       

      1.  The
        undersigned hereby elects to purchase __________ Option Shares pursuant to
        the
        terms of the attached Option.

       

      2.  The
        undersigned tenders herewith payment in full for the purchase price of the
        shares being purchased, together with all applicable transfer taxes, if
        any.

       

      3.  Please
        issue a certificate or certificates representing said Option Shares in the
        name
        of the undersigned or in such other name as is specified below:

       

      
        	 	 	 
	 	
                 (Name)

              	 
	 	 	 
	 	 	 
	 	 	 
	 	
                 (Address)

              	 

      

       

      4.  The
        undersigned hereby represents and warrants that the aforesaid Option Shares
        are
        being acquired for the account of the undersigned for investment and not
        with a
        view to, or for resale, in connection with the distribution thereof, and
        that
        the undersigned has no present intention of distributing or reselling such
        shares and all representations and warranties of the undersigned set forth
        in
        Section 6 of the attached Option are true and correct as of the date
        hereof.

      
        	 	 	 
	 	 
	 	 
	 	
                 

                  
                       (Signature)

              
	 	Title

                

                  
	 	
                
                  

                                           (Date)

              
	 	 

      

      
        
          
            

          

          
          

        

        
          9

          
            

          

        

        
          
          

          
          

        

      

      EXHIBIT B

       

      FORM
        OF TRANSFER

       

      (To
        be
        signed only upon transfer of Option)

       

      FOR
        VALUE
        RECEIVED, the undersigned hereby sells, assigns and transfers unto
        _______________________________________________ the right represented by
        the
        attached Option to purchase ____________ Option Shares to which the attached
        Option relates, and appoints ______________ Attorney to transfer such right
        on
        the books of [_____________], with full power of substitution in the
        premises.

       

      Dated:
        ____________________

       

       

      
        	 	 
	 	 (Signature must conform in all respects
                to name of Holder as specified on the face of the Option)
	 	 
	 	 
	 	
                 (Address)

              

      

       

      Signed
        in
        the presence of:

      ____________________________
        

      

      

      
        
          
            1THIS WARRANT AND THE SHARES OF COMMON STOCK  ISSUABLE UPON EXERCISE OF
     THIS  WARRANT HAVE NOT BEEN  REGISTERED  UNDER THE  SECURITIES  ACT OF
     1933, AS AMENDED,  OR ANY STATE  SECURITIES LAWS. THIS WARRANT AND THE
     COMMON STOCK  ISSUABLE  UPON EXERCISE OF THIS WARRANT MAY NOT BE SOLD,
     OFFERED  FOR  SALE,  PLEDGED  OR  HYPOTHECATED  IN THE  ABSENCE  OF AN
     EFFECTIVE REGISTRATION STATEMENT AS TO THIS WARRANT UNDER SAID ACT AND
     ANY  APPLICABLE  STATE  SECURITIES  LAWS  OR  AN  OPINION  OF  COUNSEL
     REASONABLY  SATISFACTORY  TO SCIENCE  DYNAMICS  CORPORATION  THAT SUCH
     REGISTRATION IS NOT REQUIRED.

           Right to Purchase up to 3,000,000 Shares of Common Stock of
                          Science Dynamics Corporation
                          -----------------------------
                   (subject to adjustment as provided herein)

                          COMMON STOCK PURCHASE WARRANT

No. _________________                             Issue Date:  November 18, 2005

         SCIENCE DYNAMICS CORPORATION, a corporation organized under the laws of
the State of Delaware ("Science Dynamics  Corporation"),  hereby certifies that,
for value  received,  LAURUS MASTER FUND,  LTD., or assigns (the  "Holder"),  is
entitled, subject to the terms set forth below, to purchase from the Company (as
defined herein) from and after the Issue Date of this Warrant and at any time or
from time to time before 5:00 p.m., New York time, through the close of business
November  18,  2012 (the  "Expiration  Date"),  up to  3,000,000  fully paid and
nonassessable shares of Common Stock (as hereinafter  defined),  $0.01 par value
per share, at the applicable  Exercise Price per share (as defined  below).  The
number and character of such shares of Common Stock and the applicable  Exercise
Price per share are subject to adjustment as provided herein.

         As used  herein  the  following  terms,  unless the  context  otherwise
requires, have the following respective meanings:

                  (a)  The  term  "Company"  shall  include   Science   Dynamics
         Corporation  and any  corporation  which shall  succeed,  or assume the
         obligations of, Science Dynamics Corporation hereunder.

                  (b) The term "Common Stock" includes (i) the Company's  Common
         Stock,  par value $0.01 per share;  and (ii) any other  securities into
         which or for which any of the  securities  described  in the  preceding
         clause  (i)  may be  converted  or  exchanged  pursuant  to a  plan  of
         recapitalization, reorganization, merger, sale of assets or otherwise.

                  (c) The term  "Other  Securities"  refers to any stock  (other
         than  Common  Stock) and other  securities  of the Company or any other
         person  (corporate or otherwise) which the holder of the Warrant at any
         time shall be  entitled  to  receive,  or shall have  received,  on the
         exercise of the Warrant,  in lieu of or in addition to Common Stock, or
         which at any time  shall be  issuable  or shall  have  been  issued  in
         exchange  for or in  replacement  of Common  Stock or Other  Securities
         pursuant to Section 4 or otherwise.

<PAGE>

                  (d) The "Exercise  Price"  applicable under this Warrant shall
         be $0.075.

1. Exercise of Warrant.

                  1.1 Number of Shares  Issuable upon  Exercise.  From and after
the date hereof through and including the  Expiration  Date, the Holder shall be
entitled  to receive,  upon  exercise  of this  Warrant in whole or in part,  by
delivery of an original or fax copy of an exercise  notice in the form  attached
hereto  as  Exhibit A (the  "Exercise  Notice"),  shares of Common  Stock of the
Company, subject to adjustment pursuant to Section 4.

                  1.2 Fair Market Value. For purposes  hereof,  the "Fair Market
Value" of a share of Common  Stock as of a particular  date (the  "Determination
Date") shall mean:

                  (a) If the  Company's  Common  Stock is traded on the American
         Stock  Exchange  or  another  national  exchange  or is  quoted  on the
         National or SmallCap Market of The Nasdaq Stock Market, Inc.("Nasdaq"),
         then the closing or last sale  price,  respectively,  reported  for the
         last business day immediately preceding the Determination Date.

                  (b)  If the  Company's  Common  Stock  is  not  traded  on the
         American Stock Exchange or another  national  exchange or on the Nasdaq
         but is  traded  on the NASD OTC  Bulletin  Board,  then the mean of the
         average  of the  closing  bid and asked  prices  reported  for the last
         business day immediately preceding the Determination Date.

                  (c) Except as provided in clause (d) below,  if the  Company's
         Common Stock is not publicly traded, then as the Holder and the Company
         agree or in the absence of agreement by arbitration in accordance  with
         the  rules  then in  effect of the  American  Arbitration  Association,
         before  a  single  arbitrator  to be  chosen  from a panel  of  persons
         qualified  by  education  and  training  to  pass on the  matter  to be
         decided.

                  (d) If the  Determination  Date is the date of a  liquidation,
         dissolution  or winding  up, or any event  deemed to be a  liquidation,
         dissolution or winding up pursuant to the Company's  charter,  then all
         amounts to be payable per share to holders of the Common Stock pursuant
         to the charter in the event of such liquidation, dissolution or winding
         up,  plus all other  amounts to be payable  per share in respect of the
         Common  Stock  in  liquidation  under  the  charter,  assuming  for the
         purposes of this clause (d) that all of the shares of Common Stock then
         issuable  upon  exercise  of  the  Warrant  are   outstanding   at  the
         Determination Date.

                  1.3 Company  Acknowledgment.  The Company will, at the time of
the exercise of the Warrant,  upon the request of the holder hereof  acknowledge
in writing  its  continuing  obligation  to afford to such  holder any rights to
which  such  holder  shall  continue  to be  entitled  after  such  exercise  in
accordance with the provisions of this Warrant. If the holder shall fail to make
any such request, such failure shall not affect the continuing obligation of the
Company to afford to such holder any such rights.

                                       2
<PAGE>

                  1.4 Trustee for Warrant  Holders.  In the event that a bank or
trust  company  shall  have been  appointed  as trustee  for the  holders of the
Warrant  pursuant to  Subsection  3.2, such bank or trust company shall have all
the powers and duties of a warrant agent (as  hereinafter  described)  and shall
accept,  in its own name for the account of the Company or such successor person
as may be entitled thereto, all amounts otherwise payable to the Company or such
successor,  as the case may be, on  exercise  of this  Warrant  pursuant to this
Section 1.

2. Procedure for Exercise.

                  2.1 Delivery of Stock  Certificates,  Etc.,  on Exercise.  The
Company  agrees that the shares of Common Stock  purchased upon exercise of this
Warrant  shall be deemed to be issued to the Holder as the record  owner of such
shares as of the close of business on the date on which this Warrant  shall have
been  surrendered  and payment made for such shares in accordance  herewith.  As
soon as  practicable  after the exercise of this Warrant in full or in part, and
in any event  within  three (3)  business  days  thereafter,  the Company at its
expense  (including the payment by it of any applicable  issue taxes) will cause
to be issued in the name of and delivered to the Holder, or as such Holder (upon
payment  by  such  Holder  of any  applicable  transfer  taxes)  may  direct  in
compliance with applicable  securities  laws, a certificate or certificates  for
the number of duly and validly issued,  fully paid and  nonassessable  shares of
Common  Stock (or Other  Securities)  to which such Holder  shall be entitled on
such exercise,  plus, in lieu of any fractional share to which such holder would
otherwise be entitled,  cash equal to such fraction  multiplied by the then Fair
Market  Value  of one  full  share,  together  with  any  other  stock  or other
securities and property  (including cash, where applicable) to which such Holder
is entitled upon such exercise pursuant to Section 1 or otherwise.

                  2.2  Exercise.  Payment  may be made  either (i) in cash or by
certified or official  bank check  payable to the order of the Company  equal to
the applicable  aggregate  Exercise Price,  (ii) by delivery of the Warrant,  or
shares of Common  Stock  and/or  Common Stock  receivable  upon  exercise of the
Warrant in  accordance  with the formula set forth below in this Section 2.2, or
(iii) by a combination of any of the foregoing methods, for the number of Common
Shares  specified  in such  Exercise  Notice (as such  exercise  number shall be
adjusted to reflect any adjustment in the total number of shares of Common Stock
issuable  to the Holder  per the terms of this  Warrant)  and the  Holder  shall
thereupon be entitled to receive the number of duly authorized,  validly issued,
fully-paid  and  non-assessable  shares  of Common  Stock (or Other  Securities)
determined as provided  herein.  Notwithstanding  any  provisions  herein to the
contrary,  if the Fair Market Value of one share of Common Stock is greater than
the Exercise Price (at the date of  calculation as set forth below),  in lieu of
exercising  this Warrant for cash,  the Holder may elect to receive shares equal
to the value (as determined below) of this Warrant (or the portion thereof being
exercised) by surrender of this Warrant at the  principal  office of the Company
together with the properly  endorsed  Exercise Notice in which event the Company
shall issue to the Holder a number of shares of Common Stock  computed using the
following formula:

         X=Y             (A-B)
                       ---------
                           A

         Where X =         the number of shares of Common Stock to be  issued to
                           the Holder

                                       3
<PAGE>

         Y =               the  number of shares  of  Common  Stock  purchasable
                           under  the  Warrant  or,  if  only a  portion  of the
                           Warrant  is  being  exercised,  the  portion  of  the
                           Warrant   being   exercised  (at  the  date  of  such
                           calculation)

         A =               the Fair Market  Value of one share of the  Company's
                           Common Stock (at the date of such calculation)

         B =               Exercise Price (as adjusted to the date of such
                           calculation)

3. Effect of Reorganization, Etc.; Adjustment of Exercise Price.

                  3.1 Reorganization, Consolidation, Merger, Etc. In case at any
time or from time to time,  the Company shall (a) effect a  reorganization,  (b)
consolidate  with or  merge  into  any  other  person,  or (c)  transfer  all or
substantially all of its properties or assets to any other person under any plan
or arrangement  contemplating the dissolution of the Company, then, in each such
case,  as a condition  to the  consummation  of such a  transaction,  proper and
adequate  provision  shall be made by the  Company  whereby  the  Holder of this
Warrant,  on the exercise  hereof as provided in Section 1 at any time after the
consummation of such  reorganization,  consolidation  or merger or the effective
date of such  dissolution,  as the case may be,  shall  receive,  in lieu of the
Common  Stock (or Other  Securities)  issuable  on such  exercise  prior to such
consummation or such effective date, the stock and other securities and property
(including  cash) to which  such  Holder  would  have  been  entitled  upon such
consummation or in connection with such dissolution, as the case may be, if such
Holder had so exercised this Warrant,  immediately prior thereto, all subject to
further adjustment thereafter as provided in Section 4.

                  3.2  Dissolution.  In  the  event  of any  dissolution  of the
Company  following the transfer of all or substantially all of its properties or
assets, the Company,  concurrently with any distributions made to holders of its
Common  Stock,  shall at its  expense  deliver or cause to be  delivered  to the
Holder  the stock and other  securities  and  property  (including  cash,  where
applicable) receivable by the Holder of the Warrant pursuant to Section 3.1, or,
if the  Holder  shall  so  instruct  the  Company,  to a bank or  trust  company
specified  by the  Holder and having  its  principal  office in New York,  NY as
trustee for the Holder of the Warrant (the "Trustee").

                  3.3   Continuation   of   Terms.   Upon  any   reorganization,
consolidation,  merger or transfer (and any dissolution  following any transfer)
referred to in this  Section 3, this  Warrant  shall  continue in full force and
effect and the terms hereof shall be applicable to the shares of stock and other
securities  and property  receivable  on the exercise of this Warrant  after the
consummation of such  reorganization,  consolidation  or merger or the effective
date of dissolution  following any such transfer,  as the case may be, and shall
be binding upon the issuer of any such stock or other securities,  including, in
the case of any such transfer,  the person acquiring all or substantially all of
the  properties or assets of the Company,  whether or not such person shall have
expressly  assumed  the terms of this  Warrant as  provided in Section 4. In the
event  this  Warrant  does not  continue  in full  force  and  effect  after the
consummation of the transactions described in this Section 3, then the Company's
securities and property  (including  cash, where  applicable)  receivable by the
Holders  of  the  Warrant  will  be  delivered  to  Holder  or  the  Trustee  as
contemplated by Section 3.2.

                                       4
<PAGE>

4.       Extraordinary  Events  Regarding  Common  Stock.  In the event that the
         Company  shall (a) issue  additional  shares of the  Common  Stock as a
         dividend  or  other  distribution  on  outstanding  Common  Stock,  (b)
         subdivide its  outstanding  shares of Common Stock,  or (c) combine its
         outstanding  shares of the Common Stock into a smaller number of shares
         of the Common  Stock,  then,  in each such event,  the  Exercise  Price
         shall,  simultaneously with the happening of such event, be adjusted by
         multiplying  the then  Exercise  Price by a fraction,  the numerator of
         which  shall be the  number  of  shares  of  Common  Stock  outstanding
         immediately  prior to such event and the  denominator of which shall be
         the number of shares of Common Stock outstanding immediately after such
         event,  and the product so obtained  shall  thereafter  be the Exercise
         Price then in effect.  The Exercise  Price,  as so  adjusted,  shall be
         readjusted  in the same manner  upon the  happening  of any  successive
         event or events  described  herein  in this  Section  4. The  number of
         shares  of  Common  Stock  that  the  holder  of  this  Warrant   shall
         thereafter,  on the  exercise  hereof  as  provided  in  Section  1, be
         entitled  to  receive  shall  be  adjusted  to a number  determined  by
         multiplying  the number of shares of Common Stock that would  otherwise
         (but for the provisions of this Section 4) be issuable on such exercise
         by a fraction of which (a) the  numerator  is the  Exercise  Price that
         would  otherwise  (but  for the  provisions  of this  Section  4) be in
         effect,  and (b) the denominator is the Exercise Price in effect on the
         date of such exercise.

5.       Certificate  as to  Adjustments.  In  each  case of any  adjustment  or
         readjustment  in the  shares  of Common  Stock  (or  Other  Securities)
         issuable  on the  exercise of the  Warrant,  the Company at its expense
         will promptly cause its Chief  Financial  Officer or other  appropriate
         designee to compute such  adjustment or readjustment in accordance with
         the terms of the Warrant and prepare a  certificate  setting forth such
         adjustment or  readjustment  and showing in detail the facts upon which
         such adjustment or readjustment is based,  including a statement of (a)
         the  consideration  received  or  receivable  by the  Company  for  any
         additional shares of Common Stock (or Other Securities)  issued or sold
         or  deemed to have been  issued  or sold,  (b) the  number of shares of
         Common  Stock  (or  Other  Securities)  outstanding  or  deemed  to  be
         outstanding,  and (c) the  Exercise  Price and the  number of shares of
         Common Stock to be received upon  exercise of this  Warrant,  in effect
         immediately prior to such adjustment or readjustment and as adjusted or
         readjusted as provided in this Warrant. The Company will forthwith mail
         a copy of each such  certificate  to the holder of the  Warrant and any
         Warrant agent of the Company (appointed pursuant to Section 11 hereof).

6.       Reservation  of Stock,  Etc.,  Issuable on  Exercise  of  Warrant.  The
         Company  will at all  times  reserve  and keep  available,  solely  for
         issuance and delivery on the exercise of the Warrant,  shares of Common
         Stock (or Other  Securities) from time to time issuable on the exercise
         of the Warrant.

7.       Assignment;  Exchange of Warrant. Subject to compliance with applicable
         securities laws, this Warrant,  and the rights evidenced hereby, may be
         transferred by any registered  holder hereof (a  "Transferor") in whole
         or in part. On the  surrender  for exchange of this  Warrant,  with the
         Transferor's  endorsement in the form of Exhibit B attached hereto (the
         "Transferor  Endorsement  Form") and together with evidence  reasonably
         satisfactory  to the Company  demonstrating  compliance with applicable
         securities laws, which shall include, without limitation, the provision
         of a legal  opinion  from the  Transferor's  counsel (at the  Company's
         expense)   that  such   transfer  is  exempt   from  the   registration
         requirements  of applicable  securities  laws,  and with payment by the
         Transferor of any applicable  transfer taxes) will issue and deliver to
         or on the order of the Transferor  thereof a new Warrant of like tenor,
         in the name of the  Transferor  and/or the  transferee(s)  specified in
         such Transferor Endorsement Form (each a "Transferee"),  calling in the
         aggregate  on the face or faces  thereof  for the  number  of shares of
         Common  Stock  called  for on the  face  or  faces  of the  Warrant  so
         surrendered by the Transferor.

                                       5
<PAGE>

8.       Replacement of Warrant. On receipt of evidence reasonably  satisfactory
         to the Company of the loss,  theft,  destruction  or mutilation of this
         Warrant and, in the case of any such loss, theft or destruction of this
         Warrant,  on delivery of an indemnity  agreement or security reasonably
         satisfactory  in form and amount to the  Company or, in the case of any
         such  mutilation,  on surrender and  cancellation of this Warrant,  the
         Company at its expense will execute and deliver, in lieu thereof, a new
         Warrant of like tenor.

9.       Registration  Rights.  The  Holder  of this  Warrant  has been  granted
         certain  registration rights by the Company.  These registration rights
         are set forth in a Registration  Rights  Agreement  entered into by the
         Company and Holder dated as of even date of this Warrant.

10.      Maximum  Exercise.  The Holder  shall not be entitled to exercise  this
         Warrant on an exercise  date, 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  Holder  and its
         affiliates on an exercise date, and (ii) the number of shares of Common
         Stock  issuable upon the exercise of this Warrant with respect to which
         the  determination  of this proviso is being made on an exercise  date,
         which  would  result in  beneficial  ownership  by the  Holder  and its
         affiliates of more than 4.99% of the outstanding shares of Common Stock
         of the  Company on such date.  For the  purposes  of the proviso to the
         immediately   preceding   sentence,   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.
         Notwithstanding  the  foregoing,  the  restriction  described  in  this
         paragraph  may be revoked  upon 75 days prior notice from the Holder to
         the Company and is automatically null and void upon an Event of Default
         under the Note made by the Company to the Holder  dated the date hereof
         (as amended, modified or supplemented from time to time, the "Note").

11.      Warrant Agent. The Company may, by written notice to the each Holder of
         the Warrant,  appoint an agent for the purpose of issuing  Common Stock
         (or Other  Securities)  on the  exercise  of this  Warrant  pursuant to
         Section 1, exchanging this Warrant pursuant to Section 7, and replacing
         this  Warrant  pursuant  to  Section  8, or any of the  foregoing,  and
         thereafter any such issuance,  exchange or replacement, as the case may
         be, shall be made at such office by such agent.

12.      Transfer on the Company's  Books.  Until this Warrant is transferred on
         the books of the Company,  the Company may treat the registered  holder
         hereof as the absolute  owner hereof for all purposes,  notwithstanding
         any notice to the contrary.

                                       6
<PAGE>

13.      Notices, Etc.  All notices and other communications from the Company to
         the Holder of this Warrant shall be mailed by first class registered or
         certified  mail,  postage  prepaid,  at such  address  as may have been
         furnished  to the Company in writing by such Holder or,  until any such
         Holder furnishes to the Company an address, then to, and at the address
         of, the last Holder of this  Warrant who has so furnished an address to
         the Company.

14.      Miscellaneous. This Warrant and any term hereof may be changed, waived,
         discharged or terminated only by an instrument in writing signed by the
         party against which  enforcement of such change,  waiver,  discharge or
         termination is sought.  This Warrant shall be governed by and construed
         in  accordance  with the laws of State of New York  without  regard  to
         principles  of conflicts of laws.  Any action  brought  concerning  the
         transactions  contemplated by this Warrant shall be brought only in the
         state courts of New York or in the federal  courts located in the state
         of New York;  provided,  however,  that the  Holder may choose to waive
         this  provision and bring an action  outside the state of New York. The
         individuals  executing  this Warrant on behalf of the Company  agree to
         submit to the  jurisdiction of such courts and waive trial by jury. The
         prevailing  party shall be entitled to recover from the other party its
         reasonable  attorney's  fees and costs. In the event that any provision
         of this  Warrant  is  invalid  or  unenforceable  under any  applicable
         statute or rule of law, then such provision shall be deemed inoperative
         to the  extent  that it may  conflict  therewith  and  shall be  deemed
         modified  to  conform  with  such  statute  or rule of  law.  Any  such
         provision which may prove invalid or unenforceable  under any law shall
         not affect the  validity or  enforceability  of any other  provision of
         this  Warrant.  The  headings  in  this  Warrant  are for  purposes  of
         reference  only,  and shall not limit or  otherwise  affect  any of the
         terms  hereof.  The  invalidity  or  unenforceability  of any provision
         hereof  shall in no way affect the  validity or  enforceability  of any
         other provision  hereof.  The Company  acknowledges  that legal counsel
         participated  in  the  preparation  of  this  Warrant  and,  therefore,
         stipulates  that the rule of  construction  that  ambiguities are to be
         resolved  against  the  drafting  party  shall  not be  applied  in the
         interpretation  of this  Warrant to favor any party  against  the other
         party.

                   [BALANCE OF PAGE INTENTIONALLY LEFT BLANK;
                            SIGNATURE PAGE FOLLOWS.]

                                       7
<PAGE>

         IN WITNESS  WHEREOF,  the Company has  executed  this Warrant as of the
date first written above.

                                         SCIENCE DYNAMICS CORPORATION

WITNESS:

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

                                       8
<PAGE>

                                    EXHIBIT A

                              FORM OF SUBSCRIPTION
                   (To Be Signed Only On Exercise Of Warrant)

TO:      Science Dynamics Corporation

         Attention:        Chief Financial Officer

         The  undersigned,  pursuant to the provisions set forth in the attached
Warrant (No.____), hereby irrevocably elects to purchase (check applicable box):

                  _______ shares of the Common Stock covered by such Warrant; or
------------

------------      the maximum  number of shares of Common Stock  covered by such
                  Warrant pursuant to the cashless exercise  procedure set forth
                  in Section 2.

         The  undersigned  herewith makes payment of the full Exercise Price for
such  shares  at the  price per share  provided  for in such  Warrant,  which is
$___________. Such payment takes the form of (check applicable box or boxes):

------------      $__________ in lawful money of the United States; and/or

------------      the cancellation of such portion of the attached Warrant as is
                  exercisable  for a total of  _______  shares of  Common  Stock
                  (using a Fair Market  Value of $_______ per share for purposes
                  of this calculation); and/or

------------      the  cancellation  of such number of shares of Common Stock as
                  is  necessary,  in  accordance  with the  formula set forth in
                  Section  2.2, to exercise  this  Warrant  with  respect to the
                  maximum number of shares of Common Stock purchasable  pursuant
                  to the cashless exercise procedure set forth in Section 2.

         The  undersigned  requests  that the  certificates  for such  shares be
issued in the name of,  and  delivered  to  _____________________________  whose
address is _____________________________________________________________.

         The  undersigned  represents  and warrants that all offers and sales by
the  undersigned of the securities  issuable upon exercise of the within Warrant
shall be made pursuant to  registration of the Common Stock under the Securities
Act of 1933, as amended (the "Securities  Act") or pursuant to an exemption from
registration under the Securities Act.

Dated:
             -----------------------    ----------------------------------------
                                        (Signature must conform to name of
                                        holder as specified on the face of
                                        the Warrant)

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

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

                                       A-1

<PAGE>

                                                     EXHIBIT B

                                          FORM OF TRANSFEROR ENDORSEMENT

                   (To Be Signed Only On Transfer Of Warrant)

         For  value  received,   the  undersigned  hereby  sells,  assigns,  and
transfers  unto the person(s)  named below under the heading  "Transferees"  the
right represented by the within Warrant to purchase the percentage and number of
shares of Common  Stock of Science  Dynamics  Corporation  into which the within
Warrant  relates  specified  under the  headings  "Percentage  Transferred"  and
"Number Transferred,"  respectively,  opposite the name(s) of such person(s) and
appoints each such person Attorney to transfer its respective right on the books
of Science Dynamics Corporation with full power of substitution in the premises.

<TABLE>
<CAPTION>
                                                                                 Percentage               Number
Transferees                               Address                                Transferred            Transferred
-----------                               -------                                -----------            -----------

<S>                                       <C>                                    <C>                  <C>
--------------------------------------    -----------------------------------    -----------------    ----------------

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

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

--------------------------------------    -----------------------------------    -----------------    ----------------
</TABLE>

Dated:
             -----------------------    ----------------------------------------
                                        (Signature must conform to name of
                                        holder as specified on the face of
                                        the Warrant)

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

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

                                        SIGNED IN THE PRESENCE OF:

                                        ----------------------------------------
                                                      (Name)
ACCEPTED AND AGREED:
[TRANSFEREE]

------------------------------------
              (Name)

                                       B-1

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00094-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00094-of-00352.parquet"}]]