Solved: Could not load type 'System.Web.UI.ScriptReferenceBase'

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I came across following error while using AjaxToolKit 3.5, well it is a very common error I think, and I got the solution too.

Could not load type 'System.Web.UI.ScriptReferenceBase' from assembly 'System.Web.Extensions, Version=3.5.0.0, Culture=neutral, PublicKeyToken=31bf3856ad364e35'.

Above error occurs because of the presence of  asp:ToolkitScriptManager, just replace this toolkitscriptManager with normal asp:ScriptManager
This simply works, no need to get panic about this error :)