Document:

SHENGDATECH,
INC.

     

    and

     

                        ,
As Warrant Agent

     

    FORM OF
DEBT SECURITIES

    WARRANT
AGREEMENT

     

    Dated
As Of
                    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    TABLE
OF CONTENTS

     

    
      
        	
                ARTICLE 1

              	
                  

              	
                ISSUANCE
      OF WARRANTS AND EXECUTION AND DELIVERY OF WARRANT
    CERTIFICATES

              	
                3

              
	 
      	 
      
	
                1.1       
      Issuance of Warrants

              	
                3

              
	 
      	 
      
	
                1.2       
      Execution and Delivery of Warrant Certificates

              	
                3

              
	 
      	 
      
	
                1.3       
      Issuance of Warrant Certificates

              	
                4

              
	 
      	 
      	 
      
	
                ARTICLE 2

              	
                  

              	
                WARRANT
      PRICE, DURATION AND EXERCISE OF WARRANTS

              	
                4

              
	 
      	 
      
	
                2.1       
      Warrant Price

              	
                4

              
	 
      	 
      
	
                2.2       
      Duration of Warrants

              	
                4

              
	 
      	 
      
	
                2.3       
      Exercise of Warrants

              	
                5

              
	 
      	 
      	 
      
	
                ARTICLE 3

              	
                  

              	
                OTHER
      PROVISIONS RELATING TO RIGHTS OF HOLDERS OF WARRANT
      CERTIFICATES

              	
                5

              
	 
      	 
      
	
                3.1       
      No Rights as Holders of Warrant Debt Securities Conferred by Warrants or
      Warrant Certificates

              	
                5

              
	 
      	 
      
	
                3.2       
      Lost, Stolen, Mutilated or Destroyed Warrant Certificates

              	
                6

              
	 
      	 
      
	
                3.3       
      Holder of Warrant Certificate May Enforce Rights

              	
                6

              
	 
      	 
      
	
                3.4       
      Merger, Sale, Conveyance or Lease

              	
                6

              
	 
      	 
      
	
                3.5       
      Notice to Warrantholders

              	
                6

              
	 
      	 
      	 
      
	
                ARTICLE 4

              	
                  

              	
                EXCHANGE
      AND TRANSFER OF WARRANT CERTIFICATES

              	
                7

              
	 
      	 
      
	
                4.1       
      Exchange and Transfer of Warrant Certificates

              	
                7

              
	 
      	 
      
	
                4.2       
      Treatment of Holders of Warrant Certificates

              	
                7

              
	 
      	 
      
	
                4.3       
      Cancellation of Warrant Certificates

              	
                7

              
	 
      	 
      	 
      
	
                ARTICLE 5

              	
                  

              	
                CONCERNING
      THE WARRANT AGENT

              	
                7

              
	 
      	 
      
	
                5.1       
      Warrant Agent

              	
                7

              
	 
      	 
      
	
                5.2       
      Conditions of Warrant Agent’s Obligations

              	
                8

              
	 
      	 
      
	
                5.3       
      Resignation, Removal and Appointment of Successors

              	
                9

              

      

    

     

    
      
         

      

      
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                  ARTICLE 6

                	
                    

                	
                  MISCELLANEOUS

                	
                  10

                
	 
      	 
      
	
                  6.1       
      Amendment

                	
                  10

                

        

      

    

     

    
      
        	
                6.2       
      Notices and Demands to the Company and Warrant Agent

              	
                10

              
	 
      	 
      
	
                6.3       
      Addresses

              	
                 10

              
	 
      	 
      
	
                6.4       
      Governing Law

              	
                 10

              
	 
      	 
      
	
                6.5       
      Delivery of Prospectus

              	
                 10

              
	 
      	 
      
	
                6.6       
      Obtaining of Governmental Approvals

              	
                 10

              
	 
      	 
      
	
                6.7       
      Persons Having Rights Under Warrant Agreement

              	
                 10

              
	 
      	 
      
	
                6.8       
      Headings

              	
                 10

              
	 
      	 
      
	
                6.9       
      Counterparts

              	
                 10

              
	 
      	 
      
	
                6.10     
      Inspection of Agreement

              	
                 10

              

      

    

     

    
      
         

      

      
        -3-

        
          

        

      

      
         

      

    

    SHENGDATECH,
INC.

    Form of
Debt Securities Warrant Agreement

     

    DEBT SECURITIES WARRANT AGREEMENT
(this “Agreement”),
dated as of
                    
between SHENGDATECH,
INC., a Nevada corporation (the “Company”)
and
                    ,
a [corporation] [national banking association] organized and existing under the
laws of
                    
and having a corporate trust office in
                    ,
as warrant agent (the “Warrant
Agent”).

     

    WHEREAS, the Company has
entered into an indenture dated as of
[                     
(the “Senior
Indenture”), with
                    ,
as trustee (such trustee, and any successors to such trustee, herein called the
“Senior
Trustee”), providing for the issuance from time to time of its
unsubordinated debt securities, to be issued in one or more series as provided
in the Senior Indenture (the “Debt
Securities”);]
[                     
(the “Subordinated
Indenture”), with
                    ,
as trustee (such trustee, and any successors to such trustee, herein called the
“Subordinated
Trustee”), providing for the issuance from time to time of its
subordinated debt securities, to be issued in one or more series as provided in
the Subordinated Indenture (the “Debt
Securities”);]

     

    WHEREAS, the Company proposes
to sell [If Warrants are sold with other securities — title of such other
Securities being offered (the “Other
Securities”) with] warrant certificates evidencing one or more warrants
(the “Warrants”
or, individually, a “Warrant”)
representing the right to purchase [title of Debt Securities purchasable through
exercise of Warrants] (the “Warrant Debt
Securities”), such warrant certificates and other warrant certificates
issued pursuant to this Agreement being herein called the “Warrant
Certificates”; and

     

    WHEREAS, the Company desires
the Warrant Agent to act on behalf of the Company, and the Warrant Agent is
willing so to act, in connection with the issuance, registration, transfer,
exchange, exercise and replacement of the Warrant Certificates, and in this
Agreement wishes to set forth, among other things, the form and provisions of
the Warrant Certificates and the terms and conditions on which they may be
issued, registered, transferred, exchanged, exercised and replaced;

     

    NOW, THEREFORE, in
consideration of the premises and of the mutual agreements herein contained, the
parties hereto agree as follows:

     

    ARTICLE 1

     

    ISSUANCE
OF WARRANTS AND EXECUTION AND

    DELIVERY
OF WARRANT CERTIFICATES

     

    1.1 Issuance of
Warrants. [If Warrants alone—Upon issuance, each Warrant Certificate
shall evidence one or more Warrants.] [If Other Securities and
Warrants—Warrant Certificates shall be [initially] issued in connection with the
issuance of the Other Securities [but shall be separately transferable on and
after
                    
(the “Detachable
Date”)] [and shall not be separately transferable] and each Warrant
Certificate shall evidence one or more Warrants.] Each Warrant evidenced
thereby shall represent the right, subject to the provisions contained herein
and therein, to purchase one Warrant Debt Security. [If Other Securities
and Warrants - Warrant Certificates shall be initially issued in units with the
Other Securities and each Warrant Certificate included in such a unit shall
evidence
                    
Warrants for each [$         
principal amount] [         
shares] of Other Securities included in such unit.].

     

    1.2 Execution and Delivery of
Warrant Certificates. Each Warrant Certificate, whenever issued,
shall be in registered form substantially in the form set forth in
Exhibit A hereto, shall be dated the date of its countersignature by the
Warrant Agent and may have such letters, numbers, or other marks of
identification or designation and such legends or endorsements printed,
lithographed or engraved thereon as the officers of the Company executing the
same may approve (execution thereof to be conclusive evidence of such approval)
and as are not inconsistent with the provisions of this Agreement, or as may be
required to comply with any law or with any rule or regulation made
pursuant thereto or with any rule or regulation of any securities exchange
on which the Warrants may be listed, or to conform to usage. The Warrant
Certificates shall be signed on behalf of the Company by any of its present or
future chief executive officers, presidents, senior vice presidents, vice
presidents, chief financial officers, chief legal officers, treasurers,
assistant treasurers, controllers, assistant controllers, secretaries or
assistant secretaries under its corporate seal reproduced thereon. Such
signatures may be manual or facsimile signatures of such authorized officers and
may be imprinted or otherwise reproduced on the Warrant Certificates. The
seal of the Company may be in the form of a facsimile thereof and may be
impressed, affixed, imprinted or otherwise reproduced on the Warrant
Certificates.

     

    
      
         

      

      
        -4-

        
          

        

      

      
         

      

    
 

    No
Warrant Certificate shall be valid for any purpose, and no Warrant evidenced
thereby shall be exercisable, until such Warrant Certificate has been
countersigned by the manual signature of the Warrant Agent. Such signature
by the Warrant Agent upon any Warrant Certificate executed by the Company shall
be conclusive evidence that the Warrant Certificate so countersigned has been
duly issued hereunder.

     

    In case
any officer of the Company who shall have signed any of the Warrant Certificates
either manually or by facsimile signature shall cease to be such officer before
the Warrant Certificates so signed shall have been countersigned and delivered
by the Warrant Agent, such Warrant Certificates may be countersigned and
delivered notwithstanding that the person who signed Warrant Certificates ceased
to be such officer of the Company; and any Warrant Certificate may be signed on
behalf of the Company by such persons as, at the actual date of the execution of
such Warrant Certificate, shall be the proper officers of the Company, although
at the date of the execution of this Agreement any such person was not such
officer.

     

    The term
“holder” or “holder of a Warrant Certificate” as used herein shall mean any
person in whose name at the time any Warrant Certificate shall be registered
upon the books to be maintained by the Warrant Agent for that purpose [If Other
Securities and Warrants are not immediately detachable - or upon the
registration of the Other Securities prior to the Detachable Date. Prior to
the Detachable Date, the Company will, or will cause the registrar of the Other
Securities to, make available at all times to the Warrant Agent such information
as to holders of the Other Securities as may be necessary to keep the Warrant
Agent’s records up to date].

     

    1.3 Issuance of Warrant
Certificates. Warrant Certificates evidencing the right to purchase
Warrant Debt Securities may be executed by the Company and delivered to the
Warrant Agent upon the execution of this Agreement or from time to time
thereafter. The Warrant Agent shall, upon receipt of Warrant Certificates
duly executed on behalf of the Company, countersign such Warrant Certificates
and shall deliver such Warrant Certificates to or upon the order of the
Company.

     

    ARTICLE 2

     

    WARRANT
PRICE, DURATION AND

    EXERCISE
OF WARRANTS

     

    2.1 Warrant
Price. During the period specified in Section 2.2, each Warrant
shall, subject to the terms of this Agreement and the applicable Warrant
Certificate, entitle the holder thereof, to purchase the principal amount of
Warrant Debt Securities specified in the applicable Warrant Certificate at an
exercise price of     % of the principal amount thereof
[plus accrued amortization, if any, of the original issue discount of the
Warrant Debt Securities] [plus accrued interest, if any, from the most recent
date from which interest shall have been paid on the Warrant Debt Securities or,
if no interest shall have been paid on the Warrant Debt Securities, from the
date of their initial issuance.] [The original issue discount
($          for each $1,000
principal amount of Warrant Debt Securities) will be amortized at a
    % annual rate, computed on a[n] [semi-] annual basis
[using a 360-day year consisting of twelve 30-day months].] Such purchase price
for the Warrant Debt Securities is referred to in this Agreement as the “Warrant
Price.”

     

    2.2 Duration of
Warrants. Each Warrant may be exercised in whole or in part at any
time, as specified herein, on or after [the date thereof]
[            ] and
at or before
[            ] p.m.,
[City] time, on
                    
or such later date as the Company may designate by notice to the Warrant Agent
and the holders of Warrant
                    
Certificates mailed to their addresses as set forth in the record books of the
Warrant Agent (the “Expiration
Date”). Each Warrant not exercised at or before
[            ] p.m.,
[City] time, on the Expiration Date shall become void, and all rights of the
holder of the Warrant Certificate evidencing such Warrant under this Agreement
shall cease.

     

    
      
         

      

      
        -5-

        
          

        

      

      
         

      

    

    2.3 Exercise
of Warrants.

     

    (a) During the period
specified in Section 2.2, the Warrants may be exercised to purchase a whole
number of Warrant Debt Securities in registered form by providing certain
information as set forth on the reverse side of the Warrant Certificate and by
paying in full, in lawful money of the United States of America, [in cash or by
certified check or official bank check in New York Clearing House funds] [by
bank wire transfer in immediately available funds] the Warrant Price for each
Warrant Debt Security with respect to which a Warrant is being exercised to the
Warrant Agent at its corporate trust office, provided that such exercise
is subject to receipt within five business days of such payment by the Warrant
Agent of the Warrant Certificate with the form of election to purchase Warrant
Debt Securities set forth on the reverse side of the Warrant Certificate
properly completed and duly executed. The date on which payment in full of
the Warrant Price is received by the Warrant Agent shall, subject to receipt of
the Warrant Certificate as aforesaid, be deemed to be the date on which the
Warrant is exercised; provided, however, that if,
at the date of receipt of such Warrant Certificates and payment in full of the
Warrant Price, the transfer books for the Warrant Debt Securities purchasable
upon the exercise of such Warrants shall be closed, no such receipt of such
Warrant Certificates and no such payment of such Warrant Price shall be
effective to constitute the person so designated to be named as the holder of
record of such Warrant Debt Securities on such date, but shall be effective to
constitute such person as the holder of record of such Warrant Debt Securities
for all purposes at the opening of business on the next succeeding day on which
the transfer books for the Warrant Debt Securities purchasable upon the exercise
of such Warrants shall be opened, and the certificates for the Warrant Debt
Securities in respect of which such Warrants are then exercised shall be
issuable as of the date on such next succeeding day on which the transfer books
shall next be opened, and until such date the Company shall be under no duty to
deliver any certificate for such Warrant Debt Securities. The Warrant Agent
shall deposit all funds received by it in payment of the Warrant Price in an
account of the Company maintained with it and shall advise the Company by
telephone at the end of each day on which a payment for the exercise of Warrants
is received of the amount so deposited to its account. The Warrant Agent
shall promptly confirm such telephone advice to the Company in
writing.

     

    (b) The Warrant Agent
shall, from time to time, as promptly as practicable, advise the Company of
(i) the number of Warrant Debt Securities with respect to which Warrants
were exercised, (ii) the instructions of each holder of the Warrant
Certificates evidencing such Warrants with respect to delivery of the Warrant
Debt Securities to which such holder is entitled upon such exercise,
(iii) delivery of Warrant Certificates evidencing the balance, if any, of
the Warrants for the remaining Warrant Debt Securities after such exercise, and
(iv) such other information as the Company or the [Senior] [Subordinated]
Trustee shall reasonably require.

     

    (c) As soon as
practicable after the exercise of any Warrant, the Company shall issue, pursuant
to the Indenture, in authorized denominations, to or upon the order of the
holder of the Warrant Certificate evidencing such Warrant, the Warrant Debt
Securities to which such holder is entitled, in fully registered form,
registered in such name or names as may be directed by such holder. If
fewer than all of the Warrants evidenced by such Warrant Certificate are
exercised, the Company shall execute, and an authorized officer of the Warrant
Agent shall manually countersign and deliver, a new Warrant Certificate
evidencing Warrants for the number of Warrant Debt Securities remaining
unexercised.

     

    (d) The Company shall not
be required to pay any stamp or other tax or other governmental charge required
to be paid in connection with any transfer involved in the issue of the Warrant
Debt Securities, and in the event that any such transfer is involved, the
Company shall not be required to issue or deliver any Warrant Debt Securities
until such tax or other charge shall have been paid or it has been established
to the Company’s satisfaction that no such tax or other charge is
due.

     

    (e) Prior to the issuance
of any Warrants there shall have been reserved, and the Company shall at all
times through the Expiration Date keep reserved, out of its authorized but
unissued Warrant Debt Securities, a number of shares sufficient to provide for
the exercise of the Warrants.

    

    ARTICLE 3

     

    OTHER
PROVISIONS RELATING TO RIGHTS OF

    HOLDERS
OF WARRANT CERTIFICATES

     

    3.1 No Rights as Holders of
Warrant Debt Securities Conferred by Warrants or Warrant
Certificates. No Warrant Certificate or Warrant evidenced thereby
shall entitle the holder thereof to any of the rights of a holder of Warrant
Debt Securities, including, without limitation, the right to receive the payment
of principal of (or premium, if any) or interest, if any, on the Warrant Debt
Securities or to enforce any of the covenants in the Indenture.

     

    
      
         

      

      
        -6-

        
          

        

      

      
         

      

    

    3.2 Lost, Stolen, Mutilated or
Destroyed Warrant Certificates. Upon receipt by the Warrant Agent of
evidence reasonably satisfactory to it and the Company of the ownership of and
the loss, theft, destruction or mutilation of any Warrant Certificate and/or
indemnity reasonably satisfactory to the Warrant Agent and the Company and, in
the case of mutilation, upon surrender of the mutilated Warrant Certificate to
the Warrant Agent for cancellation, then, in the absence of notice to the
Company or the Warrant Agent that such Warrant Certificate has been acquired by
a bona fide purchaser, the Company shall execute, and an authorized officer of
the Warrant Agent shall manually countersign and deliver, in exchange for or in
lieu of the lost, stolen, destroyed or mutilated Warrant Certificate, a new
Warrant Certificate of the same tenor and evidencing Warrants for a like
principal amount of Warrant Debt Securities. Upon the issuance of any new
Warrant Certificate under this Section 3.2, the Company may require the
payment of a sum sufficient to cover any tax or other governmental charge that
may be imposed in relation thereto and any other expenses (including the fees
and expenses of the Warrant Agent) in connection therewith. Every
substitute Warrant Certificate executed and delivered pursuant to this
Section 3.2 in lieu of any lost, stolen or destroyed Warrant Certificate
shall represent an additional contractual obligation of the Company, whether or
not the lost, stolen or destroyed Warrant Certificate shall be at any time
enforceable by anyone, and shall be entitled to the benefits of this Agreement
equally and proportionately with any and all other Warrant Certificates duly
executed and delivered hereunder. The provisions of this Section 3.2
are exclusive and shall preclude (to the extent lawful) all other rights and
remedies with respect to the replacement of mutilated, lost, stolen or destroyed
Warrant Certificates.

     

    3.3 Holder of Warrant
Certificate May Enforce Rights. Notwithstanding any of the
provisions of this Agreement, any holder of any Warrant Certificate, without the
consent of the Warrant Agent, the [Senior] [Subordinated] Trustee, the holder of
any Warrant Debt Securities or the holder of any other Warrant Certificate, may,
in such holder’s own behalf and for such holder’s own benefit, enforce, and may
institute and maintain any suit, action or proceeding against the Company
suitable to enforce, or otherwise in respect of, such holder’s right to exercise
the Warrants evidenced by such holder’s Warrant Certificate in the manner
provided in such holder’s Warrant Certificates and in this
Agreement.

     

    3.4 Merger, Sale, Conveyance or
Lease. In case of (a) any share exchange, merger or similar
transaction of the Company with or into another person or entity (other than a
share exchange, merger or similar transaction in which the Company is the
acquiring or surviving corporation) or (b) the sale, exchange, lease,
transfer or other disposition of all or substantially all of the properties and
assets of the Company as an entirety (in any such case, a “Reorganization
Event”), then, as a condition of such Reorganization Event, lawful
provisions shall be made, and duly executed documents evidencing the same from
the Company’s successor shall be delivered to the holders of the Warrants, so
that such successor shall succeed to and be substituted for the Company, and
assume all the Company’s obligations under, this Agreement and the
Warrants. The Company shall thereupon be relieved of any further obligation
hereunder or under the Warrants, and the Company as the predecessor corporation
may thereupon or at any time thereafter be dissolved, wound up or
liquidated. Such successor or assuming entity thereupon may cause to be
signed, and may issue either in its own name or in the name of the Company, any
or all of the Warrants issuable hereunder which heretofore shall not have been
signed by the Company, and may execute and deliver securities in its own name,
in fulfillment of its obligations to deliver Warrant Debt Securities upon
exercise of the Warrants. All the Warrants so issued shall in all respects
have the same legal rank and benefit under this Agreement as the Warrants
theretofore or thereafter issued in accordance with the terms of this Agreement
as though all of such Warrants had been issued at the date of the execution
hereof. In any case of any such Reorganization Event, such changes in
phraseology and form (but not in substance) may be made in the Warrants
thereafter to be issued as may be appropriate.

     

    The
Warrant Agent may receive a written opinion of legal counsel as conclusive
evidence that any such Reorganization Event complies with the provisions of this
Section 3.4.

    

    3.5 Notice to
Warrantholders. In case the Company shall (a) effect any
Reorganization Event or (b) make any distribution on or in respect of the
[title of Warrant Debt Securities] in connection with the dissolution,
liquidation or winding up of the Company, then the Company shall mail to each
holder of Warrants at such holder’s address as it shall appear on the books of
the Warrant Agent, at least ten days prior to the applicable date hereinafter
specified, a notice stating the date on which such Reorganization Event,
dissolution, liquidation or winding up is expected to become effective, and the
date as of which it is expected that holders of [title of Warrant Debt
Securities] of record shall be entitled to exchange their shares of [title of
Warrant Debt Securities] for securities or other property deliverable upon such
Reorganization Event, dissolution, liquidation or winding up. No failure to
mail such notice nor any defect therein or in the mailing thereof shall affect
any such transaction.

     

    
      
         

      

      
        -7-

        
          

        

      

      
         

      

    

    ARTICLE 4

     

    EXCHANGE
AND TRANSFER OF WARRANT CERTIFICATES

     

    4.1 Exchange and Transfer of
Warrant Certificates. [If Other Securities with Warrants which are
immediately detachable—Upon] [If Other Securities with Warrants which are not
immediately detachable—Prior to the Detachable Date, a Warrant Certificate may
be exchanged or transferred only together with the Other Security to which the
Warrant Certificate was initially attached, and only for the purpose of
effecting or in conjunction with an exchange or transfer of such Other
Security. Prior to any Detachable Date, each transfer of the Other Security
shall operate also to transfer the related Warrant Certificates. After the
Detachable Date, upon] surrender at the corporate trust office of the Warrant
Agent, Warrant Certificates evidencing Warrants may be exchanged for Warrant
Certificates in other denominations evidencing such Warrants or the transfer
thereof may be registered in whole or in part; provided that such other
Warrant Certificates evidence Warrants for the same aggregate principal amount
of Warrant Debt Securities as the Warrant Certificates so surrendered. The
Warrant Agent shall keep, at its corporate trust office, books in which, subject
to such reasonable regulations as it may prescribe, it shall register Warrant
Certificates and exchanges and transfers of outstanding Warrant Certificates,
upon surrender of the Warrant Certificates to the Warrant Agent at its corporate
trust office for exchange or registration of transfer, properly endorsed or
accompanied by appropriate instruments of registration of transfer and written
instructions for transfer, all in form satisfactory to the Company and the
Warrant Agent. No service charge shall be made for any exchange or
registration of transfer of Warrant Certificates, but the Company may require
payment of a sum sufficient to cover any stamp or other tax or other
governmental charge that may be imposed in connection with any such exchange or
registration of transfer. Whenever any Warrant Certificates are so
surrendered for exchange or registration of transfer, an authorized officer of
the Warrant Agent shall manually countersign and deliver to the person or
persons entitled thereto a Warrant Certificate or Warrant Certificates duly
authorized and executed by the Company, as so requested. The Warrant Agent
shall not be required to effect any exchange or registration of transfer which
will result in the issuance of a Warrant Certificate evidencing a Warrant for a
fraction of a Warrant Debt Security or a number of Warrants for a whole number
of Warrant Debt Securities and a fraction of a Warrant Debt Security. All
Warrant Certificates issued upon any exchange or registration of transfer of
Warrant Certificates shall be the valid obligations of the Company, evidencing
the same obligations and entitled to the same benefits under this Agreement as
the Warrant Certificate surrendered for such exchange or registration of
transfer.

     

    4.2 Treatment of Holders of
Warrant Certificates. [If Other Securities and Warrants are not
immediately detachable—Prior to the Detachable Date, the Company, the Warrant
Agent and all other persons may treat the owner of the Other Security as the
owner of the Warrant Certificates initially attached thereto for any purpose and
as the person entitled to exercise the rights represented by the Warrants
evidenced by such Warrant Certificates, any notice to the contrary
notwithstanding. After the Detachable Date and prior to due presentment of
a Warrant Certificate for registration of transfer, the] [The] Company, the
Warrant Agent and all other persons may treat the registered holder of a Warrant
Certificate as the absolute owner thereof for any purpose and as the person
entitled to exercise the rights represented by the Warrants evidenced thereby,
any notice to the contrary notwithstanding.

     

    4.3 Cancellation of Warrant
Certificates. Any Warrant Certificate surrendered for exchange,
registration of transfer or exercise of the Warrants evidenced thereby shall, if
surrendered to the Company, be delivered to the Warrant Agent and all Warrant
Certificates surrendered or so delivered to the Warrant Agent shall be promptly
canceled by the Warrant Agent and shall not be reissued and, except as expressly
permitted by this Agreement, no Warrant Certificate shall be issued hereunder in
exchange therefor or in lieu thereof. The Warrant Agent shall deliver to
the Company from time to time or otherwise dispose of canceled Warrant
Certificates in a manner satisfactory to the Company.

    

    ARTICLE 5

     

    CONCERNING
THE WARRANT AGENT

     

    5.1 Warrant
Agent. The Company hereby appoints
                    
as Warrant Agent of the Company in respect of the Warrants and the Warrant
Certificates upon the terms and subject to the conditions herein set forth, and
hereby accepts such appointment. The Warrant Agent shall have the powers
and authority granted to and conferred upon it in the Warrant Certificates and
hereby and such further power and authority to act on behalf of the Company as
the Company may hereafter grant to or confer upon it. All of the terms and
provisions with respect to such power and authority contained in the Warrant
Certificates are subject to and governed by the terms and provisions
hereof.

     

    
      
         

      

      
        -8-

        
          

        

      

      
         

      

    

    5.2 Conditions of Warrant
Agent’s Obligations. The Warrant Agent accepts its obligations
herein set forth upon the terms and conditions hereof, including the following
to all of which the Company agrees and to all of which the rights hereunder of
the holders from time to time of the Warrant Certificates shall be
subject:

     

    (a) Compensation and
Indemnification. The Company agrees promptly to pay the Warrant
Agent the compensation to be agreed upon with the Company for all services
rendered by the Warrant Agent and to reimburse the Warrant Agent for reasonable
out-of-pocket expenses (including reasonable counsel fees) incurred without
negligence, bad faith or willful misconduct by the Warrant Agent in connection
with the services rendered hereunder by the Warrant Agent. The Company also
agrees to indemnify the Warrant Agent for, and to hold it harmless against, any
loss, liability or expense incurred without negligence, bad faith or willful
misconduct on the part of the Warrant Agent, arising out of or in connection
with its acting as Warrant Agent hereunder, including the reasonable costs and
expenses of defending against any claim of such liability.

     

    (b) Agent for the
Company. In acting under this Agreement and in connection with the
Warrant Certificates, the Warrant Agent is acting solely as agent of the Company
and does not assume any obligations or relationship of agency or trust for or
with any of the holders of Warrant Certificates or beneficial owners of
Warrants.

     

    (c) Counsel. The
Warrant Agent may consult with counsel satisfactory to it, which may include
counsel for the Company, and the written advice of such counsel shall be full
and complete authorization and protection in respect of any action taken,
suffered or omitted by it hereunder in good faith and in accordance with the
advice of such counsel.

     

    (d) Documents. The
Warrant Agent shall be protected and shall incur no liability for or in respect
of any action taken or omitted by it in reliance upon any Warrant Certificate,
notice, direction, consent, certificate, affidavit, statement or other paper or
document reasonably believed by it to be genuine and to have been presented or
signed by the proper parties.

     

    (e) Certain
Transactions. The Warrant Agent, and its officers, directors and
employees, may become the owner of, or acquire any interest in, Warrants, with
the same rights that it or they would have if it were not the Warrant Agent
hereunder, and, to the extent permitted by applicable law, it or they may engage
or be interested in any financial or other transaction with the Company and may
act on, or as depositary, trustee or agent for, any committee or body of holders
of Warrant Debt Securities or other obligations of the Company as freely as if
it were not the Warrant Agent hereunder. Nothing in this Agreement shall be
deemed to prevent the Warrant Agent from acting as [Senior] [Subordinated]
Trustee under the [Senior] [Subordinated] Indenture.

     

    (f) No Liability for
Interest. Unless otherwise agreed with the Company, the Warrant
Agent shall have no liability for interest on any monies at any time received by
it pursuant to any of the provisions of this Agreement or of the Warrant
Certificates.

    

    (g) No Liability for
Invalidity. The Warrant Agent shall have no liability with respect
to any invalidity of this Agreement or any of the Warrant Certificates (except
as to the Warrant Agent’s countersignature thereon).

     

    (h) No Responsibility for
Representations. The Warrant Agent shall not be responsible for any
of the recitals or representations herein or in the Warrant Certificates (except
as to the Warrant Agent’s countersignature thereon), all of which are made
solely by the Company.

     

    (i) No Implied
Obligations. The Warrant Agent shall be obligated to perform only
such duties as are herein and in the Warrant Certificates specifically set forth
and no implied duties or obligations shall be read into this Agreement or the
Warrant Certificates against the Warrant Agent. The Warrant Agent shall not
be under any obligation to take any action hereunder which may tend to involve
it in any expense or liability, the payment of which within a reasonable time is
not, in its reasonable opinion, assured to it. The Warrant Agent shall not
be accountable or under any duty or responsibility for the use by the Company of
any of the Warrant Certificates authenticated by the Warrant Agent and delivered
by it to the Company pursuant to this Agreement or for the application by the
Company of the proceeds of the Warrant Certificates. The Warrant Agent
shall have no duty or responsibility in case of any default by the Company in
the performance of its covenants or agreements contained herein or in the
Warrant Certificates or in the case of the receipt of any written demand from a
holder of a Warrant Certificate with respect to such default, including, without
limiting the generality of the foregoing, any duty or responsibility to initiate
or attempt to initiate any proceedings at law or otherwise or, except as
provided in Section 6.2 hereof, to make any demand upon the
Company.

     

    
      
         

      

      
        -9-

        
          

        

      

      
         

      

    

    5.3 Resignation,
Removal and Appointment of Successors.

     

    (a) The Company agrees,
for the benefit of the holders from time to time of the Warrant Certificates,
that there shall at all times be a Warrant Agent hereunder until all the
Warrants have been exercised or are no longer exercisable.

     

    (b) The Warrant Agent may
at any time resign as agent by giving written notice to the Company of such
intention on its part, specifying the date on which its desired resignation
shall become effective; provided that such date shall
not be less than three months after the date on which such notice is given
unless the Company otherwise agrees. The Warrant Agent hereunder may be
removed at any time by the filing with it of an instrument in writing signed by
or on behalf of the Company and specifying such removal and the intended date
when it shall become effective. Such resignation or removal shall take
effect upon the appointment by the Company, as hereinafter provided, of a
successor Warrant Agent (which shall be a bank or trust company authorized under
the laws of the jurisdiction of its organization to exercise corporate trust
powers) and the acceptance of such appointment by such successor Warrant
Agent. The obligation of the Company under Section 5.2(a) shall
continue to the extent set forth therein notwithstanding the resignation or
removal of the Warrant Agent.

     

    (c) In case at any time
the Warrant Agent shall resign, or shall be removed, or shall become incapable
of acting, or shall be adjudged a bankrupt or insolvent, or shall commence a
voluntary case under the Federal bankruptcy laws, as now or hereafter
constituted, or under any other applicable Federal or state bankruptcy,
insolvency or similar law or shall consent to the appointment of or taking
possession by a receiver, custodian, liquidator, assignee, trustee, sequestrator
(or other similar official) of the Warrant Agent or its property or affairs, or
shall make an assignment for the benefit of creditors, or shall admit in writing
its inability to pay its debts generally as they become due, or shall take
corporate action in furtherance of any such action, or a decree or order for
relief by a court having jurisdiction in the premises shall have been entered in
respect of the Warrant Agent in an involuntary case under the Federal bankruptcy
laws, as now or hereafter constituted, or any other applicable Federal or state
bankruptcy, insolvency or similar law, or a decree or order by a court having
jurisdiction in the premises shall have been entered for the appointment of a
receiver, custodian, liquidator, assignee, trustee, sequestrator (or similar
official) of the Warrant Agent or of its property or affairs, or any public
officer shall take charge or control of the Warrant Agent or of its property or
affairs for the purpose of rehabilitation, conservation, winding up or
liquidation, a successor Warrant Agent, qualified as aforesaid, shall be
appointed by the Company by an instrument in writing, filed with the successor
Warrant Agent. Upon the appointment as aforesaid of a successor Warrant
Agent and acceptance by the successor Warrant Agent of such appointment, the
Warrant Agent shall cease to be Warrant Agent hereunder.

    

    (d) Any successor Warrant
Agent appointed hereunder shall execute, acknowledge and deliver to its
predecessor and to the Company an instrument accepting such appointment
hereunder, and thereupon such successor Warrant Agent, without any further act,
deed or conveyance, shall become vested with all the authority, rights, powers,
trusts, immunities, duties and obligations of such predecessor with like effect
as if originally named as Warrant Agent hereunder, and such predecessor, upon
payment of its charges and disbursements then unpaid, shall thereupon become
obligated to transfer, deliver and pay over, and such successor Warrant Agent
shall be entitled to receive, all monies, securities and other property on
deposit with or held by such predecessor, as Warrant Agent
hereunder.

     

    (e) Any corporation into
which the Warrant Agent hereunder may be merged or converted or any corporation
with which the Warrant Agent may be consolidated, or any corporation resulting
from any merger, conversion or consolidation to which the Warrant Agent shall be
a party, or any corporation to which the Warrant Agent shall sell or otherwise
transfer all or substantially all the assets and business of the Warrant Agent,
provided that it shall
be qualified as aforesaid, shall be the successor Warrant Agent under this
Agreement without the execution or filing of any paper or any further act on the
part of any of the parties hereto.

    

    
      
         

      

      
        -10-

        
          

        

      

      
         

      

    

     

    ARTICLE 6

     

    MISCELLANEOUS

     

    6.1 Amendment. This
Agreement may be amended by the parties hereto, without the consent of the
holder of any Warrant Certificate, for the purpose of curing any ambiguity, or
of curing, correcting or supplementing any defective provision contained herein,
or making any other provisions with respect to matters or questions arising
under this Agreement as the Company and the Warrant Agent may deem necessary or
desirable; provided
that such action shall not materially adversely affect the interests of
the holders of the Warrant Certificates.

     

    6.2 Notices and Demands to the
Company and Warrant Agent. If the Warrant Agent shall receive any
notice or demand addressed to the Company by the holder of a Warrant Certificate
pursuant to the provisions of the Warrant Certificates, the Warrant Agent shall
promptly forward such notice or demand to the Company.

     

    6.3 Addresses. Any
communication from the Company to the Warrant Agent with respect to this
Agreement shall be addressed to
                    ,
Attention:                     
and any communication from the Warrant Agent to the Company with respect to this
Agreement shall be addressed to ShengdaTech, Inc., Unit 2003, East Tower, Zhong
Rong Heng Rui International Plaza, 620 Zhang Yang Road, Pudong District,
Shanghai 200122  People's Republic of China, Attention: Secretary
(or such other address as shall be specified in writing by the Warrant Agent or
by the Company).

     

    6.4 Governing
Law. This Agreement and each Warrant Certificate issued hereunder
shall be governed by and construed in accordance with the laws of the State of
New York.

     

    6.5 Delivery of
Prospectus. The Company shall furnish to the Warrant Agent
sufficient copies of a prospectus meeting the requirements of the Securities Act
of 1933, as amended, relating to the Warrant Debt Securities deliverable upon
exercise of the Warrants (the “Prospectus”),
and the Warrant Agent agrees that upon the exercise of any Warrant, the Warrant
Agent will deliver to the holder of the Warrant Certificate evidencing such
Warrant, prior to or concurrently with the delivery of the Warrant Debt
Securities issued upon such exercise, a Prospectus.

     

    The
Warrant Agent shall not, by reason of any such delivery, assume any
responsibility for the accuracy or adequacy of such Prospectus.

     

    6.6 Obtaining of Governmental
Approvals. The Company will from time to time take all action which
may be necessary to obtain and keep effective any and all permits, consents and
approvals of governmental agencies and authorities and securities act filings
under United States Federal and state laws (including without limitation a
registration statement in respect of the Warrants and Warrant Debt Securities
under the Securities Act of 1933, as amended), which may be or become requisite
in connection with the issuance, sale, transfer, and delivery of the Warrant
Debt Securities issued upon exercise of the Warrants, the issuance, sale,
transfer and delivery of the Warrants or upon the expiration of the period
during which the Warrants are exercisable.

    

    6.7 Persons Having Rights Under
Warrant Agreement. Nothing in this Agreement shall give to any
person other than the Company, the Warrant Agent and the holders of the Warrant
Certificates any right, remedy or claim under or by reason of this
Agreement.

     

    6.8 Headings. The
descriptive headings of the several Articles and Sections of this Agreement are
inserted for convenience only and shall not control or affect the meaning or
construction of any of the provisions hereof.

     

    6.9 Counterparts. This
Agreement may be executed in any number of counterparts, each of which as so
executed shall be deemed to be an original, but such counterparts shall together
constitute but one and the same instrument.

     

    6.10 Inspection of
Agreement. A copy of this Agreement shall be available at all
reasonable times at the principal corporate trust office of the Warrant Agent
for inspection by the holder of any Warrant Certificate. The Warrant Agent
may require such holder to submit such holder’s Warrant Certificate for
inspection by it.

      

      
        
           

        

        
          -11-

          
            

          

        

        
           

        

      

    

     

    IN WITNESS WHEREOF, the
parties hereto have caused this Agreement to be duly executed, all as of the day
and year first above written.

     

    
      
        
          
            
              
                
                  
                    
                      	 
      	 
      	 
      	 
      	 
      	 
      	
                              SHENGDATECH,
      INC.

                            
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	
                              By

                            	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	
                              Its

                            	 
      	 
      
	
                              Attest:

                            	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	
                                

                            	 
      
	
                               
       

                            	 
      	
                               
       

                            	 
      	
                                

                            	 
      	
                                

                            	
                              ,
      as 

                            
	 
      	 
      	 
      	 
      	 
      	 
      	
                              WARRANT
      AGENT

                            
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	
                              By

                            	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	
                              Its

                            	 
      	 
      
	
                              Attest:

                            	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      

                    

                  

                

              

            

          

        

      

    

     

    [SIGNATURE
PAGE TO DEBT SECURITIES WARRANT AGREEMENT]

     

    
      
         

      

      
        -12-

        
          

        

      

      
         

      

    

    EXHIBIT A

     

    FORM OF
WARRANT CERTIFICATE

    [Face
of Warrant Certificate]

     

    
      	
              [Form if
      Warrants are attached to Other Securities and are not immediately
      detachable.

            	 
      	
              Prior
      to
                          ,
      this Warrant Certificate cannot be transferred or exchanged unless
      attached to a [Title of Other Security].]

            
	 
      	 
      
	
              [Form of
      Legend if Warrants are not immediately exercisable.

            	 
      	
              Prior
      to
                          ,
      Warrants evidenced by this Warrant Certificate cannot be
      exercised.]

            

    

     

    EXERCISABLE
ONLY IF COUNTERSIGNED BY THE WARRANT

    AGENT AS
PROVIDED HEREIN

     

    VOID
AFTER
[            ] P.M.,
[CITY] TIME, ON
            ,

     

    SHENGDATECH,
INC.

     

    WARRANT
CERTIFICATE REPRESENTING

    WARRANTS
TO PURCHASE

    [TITLE OF
WARRANT DEBT SECURITIES]

      

    
      

    

     

    
      	
              No.

            	
                

            	
              Warrants

            

    

     

    This
certifies that
                    
or registered assigns is the registered owner of the above indicated number of
Warrants, each Warrant entitling such owner [If Warrants are attached to Other
Securities and are not immediately detachable —, subject to the registered owner
qualifying as a “Holder” of this Warrant Certificate, as hereinafter defined)]
to purchase, at any time [after
[            ] p.m.,
[City] time, on
             and] on
or before
[            ] p.m.,
[City] time, on
            ,
$          principal amount of
[Title of Warrant Debt Securities] (the “Warrant Debt
Securities”), of ShengdaTech, Inc. (the “Company”),
issued or to be issued under the Indenture (as hereinafter defined), on the
following basis: during the period from
                    ,
through and including
                    ,
each Warrant shall entitle the Holder thereof, subject to the provisions of this
Agreement, to purchase the principal amount of Warrant Debt Securities stated in
the Warrant Certificate at the warrant price (the “Warrant
Price”) of     % of the principal amount thereof
[plus accrued amortization, if any, of the original issue discount of the
Warrant Debt Securities] [plus accrued interest, if any, from the most recent
date from which interest shall have been paid on the Warrant Debt Securities or,
if no interest shall have been paid on the Warrant Debt Securities, from the
date of their original issuance]. [The original issue discount
($          for each $1,000
principal amount of Warrant Debt Securities) will be amortized at a
    % annual rate, computed on a[n] [semi-]annual basis
[using a 360-day year consisting of twelve 30-day months]. The Holder may
exercise the Warrants evidenced hereby by providing certain information set
forth on the back hereof and by paying in full, in lawful money of the United
States of America, [in cash or by certified check or official bank check in New
York Clearing House funds] [by bank wire transfer in immediately available
funds], the Warrant Price for each Warrant Debt Security with respect to which
this Warrant is exercised to the Warrant Agent (as hereinafter defined) and by
surrendering this Warrant Certificate, with the purchase form on the back hereof
duly executed, at the corporate trust office of [name of Warrant Agent], or its
successor as warrant agent (the “Warrant
Agent”), which is, on the date hereof, at the address specified on the
reverse hereof, and upon compliance with and subject to the conditions set forth
herein and in the Warrant Agreement (as hereinafter defined).

     

    The term
“Holder”
as used herein shall mean [If Warrants are attached to Other Securities and are
not immediately detachable—, prior to
                    ,
             (the
“Detachable
Date”), the registered owner of the Company’s [title of Other Securities]
to which this Warrant Certificate was initially attached, and after such
Detachable Date,] the person in whose name at the time this Warrant Certificate
shall be registered upon the books to be maintained by the Warrant Agent for
that purpose pursuant to Section 4 of the Warrant Agreement.

     

    
      
         

      

      
        -13-

        
          

        

      

      
         

      

    

    The
Warrants evidenced by this Warrant Certificate may be exercised to purchase
Warrant Debt Securities in the principal amount of $1,000 or any integral
multiple thereof in registered form. Upon any exercise of
fewer than all of the Warrants evidenced by this Warrant Certificate, there
shall be issued to the Holder hereof a new Warrant Certificate evidencing
Warrants for the aggregate principal amount of Warrant Debt Securities remaining
unexercised.

     

    This
Warrant Certificate is issued under and in accordance with the Warrant Agreement
dated as of
                    ,
                    
(the “Warrant
Agreement”), between the Company and the Warrant Agent and is subject to
the terms and provisions contained in the Warrant Agreement, to all of which
terms and provisions the Holder of this Warrant Certificate consents by
acceptance hereof. Copies of the Warrant
Agreement are on file at the above-mentioned office of the Warrant
Agent.

     

    The
Warrant Debt Securities to be issued and delivered upon the exercise of Warrants
evidenced by this Warrant Certificate will be issued under and in accordance
with an Indenture, [dated as of
                ,
                    
(the “Senior
Indenture”), between the Company and
                    ,
as trustee (such trustee, and any successors to such trustee, the “Senior
Trustee”)] [dated as of
            ,
        , (the “Subordinated
Indenture”), between the Company and
                    ,
as trustee (such trustee, and any successors to such trustee, the “Subordinated
Trustee”)] and will be subject to the terms and provisions contained in
the Warrant Debt Securities and in the Indenture. Copies of the [Senior]
[Subordinated] Indenture, including the form of the Warrant Debt Securities, are
on file at the corporate trust office of the Trustee.

     

    [If
Warrants are attached to Other Securities and are not immediately
detachable—Prior to the Detachable Date, this Warrant Certificate may be
exchanged or transferred only together with the [Title of Other Securities] (the
“Other
Securities”) to which this Warrant Certificate was initially attached,
and only for the purpose of effecting or in conjunction with, an exchange or
transfer of such Other Security. Additionally, on or prior to the
Detachable Date, each transfer of such Other Security on the register of the
Other Securities shall operate also to transfer this Warrant
Certificate. After such date, transfer of this] [If Warrants are attached
to Other Securities and are immediately detachable — Transfer of this] Warrant
Certificate may be registered when this Warrant Certificate is surrendered at
the corporate trust office of the Warrant Agent by the registered owner or such
owner’s assigns, in the manner and subject to the limitations provided in the
Warrant Agreement.

     

    [If Other
Securities with Warrants which are not immediately detachable-Except as provided
in the immediately preceding paragraph, after] [If Other Securities with
Warrants which are immediately detachable or Warrants alone—After]
countersignature by the Warrant Agent and prior to the expiration of this
Warrant Certificate, this Warrant Certificate may be exchanged at the corporate
trust office of the Warrant Agent for Warrant Certificates representing Warrants
for the same aggregate principal amount of Warrant Debt Securities.

     

    This
Warrant Certificate shall not entitle the Holder hereof to any of the rights of
a holder of the Warrant Debt Securities, including, without limitation, the
right to receive payments of principal of (and premium, if any) or interest, if
any, on the Warrant Debt Securities or to enforce any of the covenants of the
Indenture.

     

    Reference
is hereby made to the further provisions of this Warrant Certificate set forth
on the reverse hereof, which further provisions shall for all purposes have the
same effect as if set forth at this place.

     

    This
Warrant Certificate shall not be valid or obligatory for any purpose until
countersigned by the Warrant Agent.

    

    
      
         

      

      
        -14-

        
          

        

      

      
         

      

    

     

    IN WITNESS WHEREOF, the
Company has caused this Warrant to be executed in its name and on its behalf by
the facsimile signatures of its duly authorized officers.

     

    
      
        
          
            
              
                	
                        Dated:
      ______________

                      	 
      	
                        SHENGDATECH,
      INC.

                      
	 
      	 
      	 
      
	 
      	 
      	
                        By

                      	 
      
	 
      	 
      	 
      
	 
      	 
      	
                        Its

                      	 
      
	
                        Attest:

                      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	
                        Countersigned:

                      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	
                        As
      Warrant Agent

                      	 
      	 
      
	 
      	 
      	 
      	 
      
	
                        By

                      	 
      	 
      	 
      
	 
      	
                        Authorized
      Signature

                      	 
      	 
      

              

            

          

        

      

    

     

    
      
         

      

      
        -15-

        
          

        

      

      
         

      

    

    [REVERSE
OF WARRANT CERTIFICATE]

     

    (Instructions
for Exercise of Warrants)

     

    To
exercise any Warrants evidenced hereby for Warrant Debt Securities (as
hereinafter defined), the Holder must pay, in lawful money of the United States
of America, [in cash or by certified check or official bank check in New York
Clearing House funds] [by bank wire transfer in immediately available funds],
the Warrant Price in full for Warrants exercised, to [Warrant Agent] [address of
Warrant Agent],
Attn:                     ,
which payment must specify the name of the Holder and the number of Warrants
exercised by such Holder. In addition, the Holder must complete the
information required below and present this Warrant Certificate in person or by
mail (certified or registered mail is recommended) to the Warrant Agent at the
appropriate address set forth above. This Warrant Certificate, completed
and duly executed, must be received by the Warrant Agent within five business
days of the payment.

     

    (To be
executed upon exercise of Warrants)

     

    The
undersigned hereby irrevocably elects to exercise
                    
Warrants, represented by this Warrant Certificate, to purchase
$          principal amount of the
[Title of Warrant Debt Securities] (the “Warrant Debt
Securities”) of ShengdaTech, Inc. and represents that the undersigned has
tendered payment for such Warrant Debt Securities, in lawful money of the United
States of America, [in cash or by certified check or official bank check in New
York Clearing House funds] [by bank wire transfer in immediately available
funds], to the order of ShengdaTech, Inc., c/o [insert name and address of
Warrant Agent], in the amount of
$          in accordance with the
terms hereof. The undersigned requests that said principal amount of
Warrant Debt Securities be in fully registered form in the authorized
denominations, registered in such names and delivered all as specified in
accordance with the instructions set forth below.

     

    If the
number of Warrants exercised is less than all the Warrants evidenced hereby, the
undersigned requests that a new Warrant Certificate evidencing the Warrants for
the aggregate principal amount of Warrant Debt Securities remaining unexercised
be issued and delivered to the undersigned unless otherwise specified in the
instructions below.

     

    
      
        
          
            
              
                	
                        Dated

                      	
                                             

                      	 
      	
                        Name

                      	
                          

                      
	 
      	 
      	 
      	
                        (Please
      Print)

                      
	 
      	 
      	 
      
	 
      	 
      	
                        Address

                      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	
                         (Insert
      Social Security or Other Identifying Number of
  Holder)

                      

              

            

          

        

      

    

     

    
      
         

      

      
        -16-

        
          

        

      

      
         

      

    

     

    
      
        	 
      	 
      	
                  

              
	
                Signature
      Guaranteed

              	 
      	
                Signature

              
	 
      	 
      	 
      
	 
      	 
      	
                 (Signature
      must conform in all respects to name of holder as specified on the face of
      this Warrant Certificate and must bear a signature guarantee by a bank,
      trust company or member broker of the New York, Midwest or Pacific Stock
      Exchange)

              

      

    

     

    This
Warrant may be exercised at the following addresses:

     

    
      
        
          
            
              
                
                  	
                          By hand at

                        	 
      
	 
      	 
      
	 
      	 
      
	 
      	 
      
	
                          By mail at

                        	 
      
	 
      	 
      
	 
      	 
      

                

              

            

          

        

      

    

     

    [Instructions
as to form and delivery of Warrant Debt Securities and, if applicable, Warrant
Certificates evidencing Warrants for the number of Warrant Debt Securities
remaining unexercised — complete as appropriate.]

     

    
      
         

      

      
        -17-

        
          

        

      

      
         

      

    

    ASSIGNMENT

     

    [Form of
assignment to be executed if

    Warrant
Holder desires to transfer Warrant]

    
      
        
          
            
              	 
      	 
      	 
      	 
      	 
      
	
                      FOR
      VALUE RECEIVED,

                    	 
      	 
      	 
      	
                      hereby
      sells, assigns and transfers unto:

                    
	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	
                      (Please
      print name and address including zip code)

                    	 
      	 
      	 
      	
                      Please
      insert Social Security or other identifying
  number

                    

            

          

        

      

    

     

    the right
represented by the within Warrant to purchase
$          aggregate principal
amount of [Title of Warrant Debt Securities] of ShengdaTech, Inc. to which the
within Warrant relates and appoints
                    
attorney to transfer such right on the books of the Warrant Agent with full
power of substitution in the premises.

    
      
        
          
            	 
      	 
      	 
      	 
      	 
      
	
                    Dated

                  	
                      

                  	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	
                    Signature

                  
	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	
                    (Signature
      must conform in all respects to name of holder as specified on the face of
      the Warrant)

                  
	 
      	 
      	 
      
	
                    Signature
      Guaranteed

                  	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      

          

        

      

    

     

    
      
         

      

      
        -18-Unassociated Document

    

     

    June 9,
2010

    

    Keith
Guenther

    25391
Commercentre Drive, Ste. 200

    Lake
Forest, CA 92630

    

    Re:           Amended and Restated
Promissory Note

    

    Dear Mr.
Guenther:

    

    Reference is made to your promissory
note in the principal amount of $500,000, originally issued on November 10,
2008, as previously amended as of November 10, 2009 and May 10, 2010, which is
due to be repaid on June 9, 2010 (the “Note”).  The following sets
forth our agreement with respect to the Note:

    

    
      	
               
      

            	
              1.

            	
              Within
      fifteen (15) days of the date hereof, we will repay you the full $500,000
      principal amount of the Note, plus interest, at a rate of 15% per annum,
      accrued from May 11, 2010, through the date of repayment (all interest for
      the period between November 10, 2008 and May 10, 2010 has previously been
      paid);

            

    

    

    
      	
               
      

            	
              2.

            	
              As
      additional consideration, we will issue to you a total of 5,000 restricted
      shares of our common stock; and

            

    

    

    
      	
               
      

            	
              3.

            	
              Except
      as specifically set forth herein, the Note shall remain in full force and
      effect.

            

    

    

    If the
foregoing represents our agreement as you understand it, please sign below
acknowledging your acceptance.

    

    If you
have any questions, please call me.

     

    
      	 	      
              Sincerely,

              

              /s/
      Shu Kaneko

              

              Shu
      Kaneko

              Chief
      Financial Officer

            

    

     

    AGREED
AND ACCEPTED:

    

    /s/ Keith
Guenther

    
      

    

    Keith
Guenther

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00174-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00174-of-00352.parquet"}]]