Explanation of Responses ------------------------ Name: Citadel Equity Fund Ltd. Address: c/o Citadel Investment Group, L.L.C. 131 S. Dearborn Street, 32nd Floor Chicago, Illinois 60603 Issuer and Ticker Symbol: Fushi International, Inc. FSIN Date of...Notes Purchase Agreement • February 2nd, 2007 • Citadel Equity Fund LTD • Steel pipe & tubes
Citadel Equity Fund Ltd. entered into a notes purchase agreement, dated January 24, 2007 (the "Purchase Agreement") with the Issuer, Fushi Holdings, Inc. (formerly, Diversified Product Inspections, Inc.), a wholly-owned subsidiary of the Issuer ("FHI"), Fushi International (Dalian) Bimetallic Cable Co., Ltd. (formerly, Dalian Diversified Product Inspections Bimetallic Cable Co., Ltd.), a wholly-owned subsidiary of FHI and Dalian Fushi Bimetallic Manufacturing Co., Ltd., to purchase $20,000,000 of the principal amount of the Issuer's 3.0% Guaranteed Senior Secured Convertible Notes due 2012 (the "Notes"). The Notes are convertible into shares of common stock of the Issuer at a conversion price equal to the conversion rate in effect at such time of conversion. The initial conversion price of the Notes was $7.00 per share.
