Unassociated Document


     

    REGISTRATION
      RIGHTS AGREEMENT

     

    This
      Registration Rights Agreement (this "Agreement")
      is made
      and entered into as of October 26, 2007, by and among Fushi International,
      Inc.,
      a Nevada corporation (the "Company"),
      and
      the investors signatory hereto, including the holders of the Notes (as defined
      below) (each an "Investor"
      and
      collectively, the "Investors").

     

    This
      Agreement is made in connection with the Securities Purchase Agreement, dated
      as
      of the date hereof among the Company and the Investors (the "Purchase
      Agreement")
      and the
      Waiver and Consent dated as of the date hereof between the Company, among
      others, and Citadel Equity Fund, Ltd. (“Citadel”).

     

    The
      Company and the Investors hereby agree as follows: 

     

    1. Definitions.
      Capitalized terms used and not otherwise defined herein that are defined in
      the
      Purchase Agreement will have the respective meanings given such terms in the
      Purchase Agreement. As used in this Agreement, the following terms have the
      respective meanings set forth in this Section 1:

     

    “Advice”
      has
      the
      meaning set forth in Section 7(d).

     

    "Commission" means
      the Securities and Exchange Commission.

     

    "Commission
      Comments" means
      written comments pertaining
      solely to Rule 415 which
      are received by the Company from the Commission to a filed Registration
      Statement, a copy of which shall have been provided by the Company to the
      Holders, which either (i) requires the Company to limit the number of
      Registrable Securities which may be included therein to a number which is less
      than the number sought to be included thereon as filed with the Commission
      or
      (ii) requires the Company to either exclude Registrable Securities held by
      specified Holders or deem such Holders to be underwriters with respect to
      Registrable Securities they seek to include in such Registration
      Statement.

     

    “Common
      Stock”
means
      the common stock, par value per share of $0.006, of the Company.

     

    “Cut
      Back Shares”
has
      the
      meaning set forth in Section 2(b).

     

    "Effective
      Date"
      means,
      as to a Registration Statement, the date on which such Registration Statement
      is
      first declared effective by the Commission.

     


    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    


    


     

    “Effectiveness
      Date”
      means
      (a) with respect to the initial Registration Statement required to be filed
      pursuant to Section 2(a), the earlier of: (i) the 90th
      calendar
      day following the Closing Date; provided,
      that,
      if the Commission reviews and has written comments to the filed Registration
      Statement that would require the filing of a pre-effective amendment thereto
      with the Commission, then the Effectiveness Date under this clause (a)(i) shall
      be the 120th
      day
      following the Closing Date, and (ii) the fifth Trading Day following the date
      on
      which the Company is notified by the Commission that the initial Registration
      Statement will not be reviewed or is no longer subject to further review and
      comments; (b) with respect to any additional Registration Statements required
      to
      be filed pursuant to Section 2(a), the earlier of: (i) the 90th
      calendar
      day following the applicable Filing Date for such additional Registration
      Statement(s) and (ii) the fifth Trading Day following the date on which the
      Company is notified by the Commission that the such additional Registration
      Statement(s) will not be reviewed or is no longer subject to further review;
      and
      (c) with respect to any additional Registration Statements required to be filed
      solely due to SEC Restrictions, the earlier of: (i) the 90th
      calendar
      day following the applicable Restriction Termination Date and (ii) the fifth
      Trading Day following the date on which the Company is notified by the
      Commission that such Registration Statement will not be reviewed or is no longer
      subject to further review and comments.

     

    "Effectiveness
      Period"
      means,
      as to any Registration Statement required to be filed pursuant to this
      Agreement, the period commencing on the Effective Date of such Registration
      Statement and ending on the earliest to occur of (a) the second anniversary
      of
      such Effective Date, (b) such time as all of the Registrable Securities covered
      by such Registration Statement have been publicly sold by the Holders of the
      Registrable Securities included therein, or (c) such time as all of the
      Registrable Securities covered by such Registration Statement may be sold by
      the
      Holders without volume restrictions pursuant to Rule 144, in each case as
      determined by the counsel to the Company pursuant to a written opinion letter
      to
      such effect, addressed and acceptable to the Company's transfer agent and the
      affected Holders.

     

    "Exchange
      Act"
      means
      the Securities Exchange Act of 1934, as amended.

     

    "Filing
      Date"
      means
      (a) with respect to the initial Registration Statement required to be filed
      pursuant to Section 2(a), the 15th
      calendar
      day following the Closing Date; (b) with respect to any additional Registration
      Statements required to be filed pursuant to the last sentence of Section 2(a),
      the 15th
      calendar
      day following the Effective Date for the last Registration Statement filed
      pursuant to this Agreement under Section 2(a); and (c) with respect to any
      additional Registration Statements required to be filed due to SEC Restrictions,
      the 15th
      calendar
      day following the applicable Restriction Termination Date;
      provided,
      that if the Filing Date falls on a Saturday, Sunday or any other day which
      shall
      be a legal holiday or a day on which the Commission is authorized or required
      by
      law to close, the Filing Date shall be the following Business Day.

     

    "Holder"
      or
"Holders"
      means
      the holder or holders, as the case may be, from time to time of Registrable
      Securities.

     

    “Indemnified
      Party”
      has the
      meaning set forth in Section 6(c).

     

    “Indemnifying
      Party”
      has the
      meaning set forth in Section 6(c).

     

    “Losses”
      has the
      meaning set forth in Section 6(a).

     

    “New
      York Courts”
      means
      the state and federal courts sitting in the City of New York, Borough of
      Manhattan.

     


    
      
        
        

      

      
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    "Notes"
      means
      the Company’s 3% Senior Secured Convertible Notes due 2012, the terms of which
      are governed by the Indenture dated January 25, 2007 between the Company and
      The
      Bank of New York, as trustee (the “Indenture”). 

     

    "Proceeding"
      means an
      action, claim, suit, investigation or proceeding (including, without limitation,
      an investigation or partial proceeding, such as a deposition), whether commenced
      or threatened.

     

    “Prospectus”
      means
      the prospectus included in a Registration Statement (including, without
      limitation, a prospectus that includes any information previously omitted from
      a
      prospectus filed as part of an effective registration statement in reliance
      upon
      Rule 430A promulgated under the Securities Act), as amended or supplemented
      by
      any prospectus supplement, with respect to the terms of the offering of any
      portion of the Registrable Securities covered by a Registration Statement,
      and
      all other amendments and supplements to the Prospectus, including post-effective
      amendments, and all material incorporated by reference or deemed to be
      incorporated by reference in such Prospectus.

     

    “Registrable
      Securities”
      means:
      (i) the Shares, (ii) any shares of Common Stock issuable upon exercise of
      warrants issued to any placement agent as compensation in connection with the
      financing that is the subject of the Purchase Agreement ("Placement
      Agent Warrant Shares"),
      (iii)
      any securities issued or issuable upon any stock split, dividend or other
      distribution, recapitalization or similar event, or any exercise price
      adjustment with respect to any of the securities referenced in (i) or (ii)
      above, and (iv) any shares (the “Conversion
      Shares”)
      of
      Common Stock issued or issuable upon conversion of the Notes pursuant to the
      terms of the Indenture; provided,
      however, that following such time as any of the securities described in clauses
      (i), (ii), (iii) or (iv) above have been sold by a Holder pursuant to a
      Registration Statement or Rule 144, then such securities shall cease to be
      considered “Registrable Securities” for purposes of this Agreement.

     

    "Registration
      Statement"
      means
      the initial registration statement required to be filed in accordance with
      Section 2(a) and any additional registration statements required to be filed
      under this Agreement, including in each case the Prospectus, amendments and
      supplements to such registration statements or Prospectus, including pre- and
      post-effective amendments, all exhibits thereto, and all material incorporated
      by reference or deemed to be incorporated by reference therein.

     

    “Restriction
      Termination Date”
has
      the
      meaning set forth in Section 2(b).

     

    "Rule
      144"
      means
      Rule 144 promulgated by the Commission pursuant to the Securities Act, as such
      Rule may be amended from time to time, or any similar rule or regulation
      hereafter adopted by the Commission having substantially the same effect as
      such
      Rule.

     

    "Rule
      415"
      means
      Rule 415 promulgated by the Commission pursuant to the Securities Act, as such
      Rule may be amended from time to time, or any similar rule or regulation
      hereafter adopted by the Commission having substantially the same effect as
      such
      Rule.

     


    
      
        
        

      

      
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    "Rule
      424"
      means
      Rule 424 promulgated by the Commission pursuant to the Securities Act, as such
      Rule may be amended from time to time, or any similar rule or regulation
      hereafter adopted by the Commission having substantially the same effect as
      such
      Rule.

     

    “SEC
      Restrictions”
has
      the
      meaning set forth in Section 2(b).

     

    "Securities
      Act"
      means
      the Securities Act of 1933, as amended.

     

    "Shares"
      means
      the shares of Common Stock issued or issuable to the Investors pursuant to
      the
      Purchase Agreement.

     

    2. Registration.

     

    (a) On
      or
      prior to the applicable Filing Date, the Company shall prepare and file with
      the
      Commission a Registration Statement covering the resale of all Registrable
      Securities not already covered by an existing and effective Registration
      Statement for an offering to be made on a continuous basis pursuant to Rule
      415.
      Each Registration Statement required to be filed under this Agreement shall
      be
      filed on Form S-3 (or on such other form appropriate for such purpose) and
      contain (except if otherwise required pursuant to written comments received
      from
      the Commission upon a review of such Registration Statement, other than as
      to
      the characterization of any Holder as an underwriter, which shall not occur
      without such Holder’s written consent) the "Plan of Distribution" attached
      hereto as Annex
      A.
      The
      Company shall use its reasonable best efforts to cause each Registration
      Statement required to be filed under this Agreement to be declared effective
      under the Securities Act as
      soon as
      possible but, in any event, no later than its Effectiveness Date, and shall
      use
      its reasonable best efforts to keep each such Registration Statement
      continuously effective during its entire Effectiveness Period. By 5:00 p.m.
      (New
      York City time) on the Business Day immediately following the Effective Date
      of
      each Registration Statement, the Company shall file with the Commission in
      accordance with Rule 424 under the Securities Act the final prospectus to be
      used in connection with sales pursuant to such Registration Statement (whether
      or not such filing is technically required under such Rule). If for any reason
      other than due solely to SEC Restrictions, a Registration Statement is effective
      but not all outstanding Registrable Securities are registered for resale
      pursuant thereto, then the Company shall prepare and file by the applicable
      Filing Date an additional Registration Statement to register the resale of
      all
      such unregistered Registrable Securities for an offering to be made on a
      continuous basis pursuant to Rule 415. 

     


    
      
        
        

      

      
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    (b) Notwithstanding
      anything to the contrary contained in this Section 2, if the Company receives
      Commission Comments, and following discussions with and responses to the
      Commission in which the Company uses its reasonable best efforts and time to
      cause as many Registrable Securities for as many Holders as possible to be
      included in the Registration Statement filed pursuant to Section 2(a) without
      characterizing any Holder as an underwriter (and in such regard uses its
      reasonable best efforts to cause the Commission to permit the affected Holders
      or their respective counsel to participate in Commission conversations on such
      issue together with Company Counsel, and timely conveys relevant information
      concerning such issue with the affected Holders or their respective counsel),
      the Company is unable to cause the inclusion of all Registrable Securities,
      then
      the Company may, following not less than three (3) Trading Days prior written
      notice to the Holders (i) remove from the Registration Statement such
      Registrable Securities (the “Cut
      Back Shares”)
      and/or
      (ii) agree to such restrictions and limitations on the registration and resale
      of the Registrable Securities, in each case as the Commission may require in
      order for the Commission to allow such Registration Statement to become
      effective; provided,
      that in
      no event may the Company name any Holder as an underwriter without such Holder’s
      prior written consent (collectively, the “SEC
      Restrictions”).
      Unless the SEC Restrictions otherwise require, any cut-back imposed pursuant
      to
      this Section 2(b) shall be allocated first to the Placement Agent Warrant
      Shares, second among the Warrant Shares of the Holders on a pro rata basis
      and
      then among the Shares and the Conversion Shares of the Holders on a pro rata
      basis. No liquidated damages under Section 2(c) shall accrue on or as to any
      Cut
      Back Shares, and the required Effectiveness Date for such Registration Statement
      will be tolled, until such time as the Company is able to effect the
      registration of the Cut Back Shares in accordance with any SEC Restrictions
      (such date, the “Restriction
      Termination Date”).
      From
      and after the Restriction Termination Date, all provisions of this Section
      2
      (including, without limitation, the liquidated damages provisions, subject
      to
      tolling as provided above) shall again be applicable to the Cut Back Shares
      (which, for avoidance of doubt, retain their character as “Registrable
      Securities”) so that the Company will be required to file with and cause to be
      declared effective by the Commission such additional Registration Statements
      in
      the time frames set forth herein as necessary to ultimately cause to be covered
      by effective Registration Statements all Registrable Securities (if such
      Registrable Securities cannot at such time be resold by the Holders thereof
      without volume limitations pursuant to Rule 144).

     


    
      
        
        

      

      
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    (c) If:
      (i) a
      Registration Statement is not filed on or prior to its Filing Date covering
      the
      Registrable Securities required under this Agreement to
      be
      included therein (if the Company files a Registration Statement without
      affording the Holders the opportunity to review and comment on the same as
      required by Section 3(a) hereof, the Company shall not be deemed to have
      satisfied this clause (i)), or (ii) a Registration Statement is not declared
      effective by the Commission on or prior to its required Effectiveness Date
      or if
      by the Business Day immediately following the Effective Date, the Company shall
      not have filed a “final” prospectus for the Registration Statement with the
      Commission under Rule 424(b) in accordance with the terms hereof (whether or
      not
      such a prospectus is technically required by such Rule), or (iii) after its
      Effective Date, without regard for the reason thereunder or efforts therefor,
      such Registration Statement ceases for any reason to be effective and available
      to the Holders as to all Registrable Securities to which it is required to
      cover
      at any time prior to the expiration of its Effectiveness Period for more than
      an
      aggregate of 45 Trading Days (which need not be consecutive) (any such failure
      or breach being referred to as an "Event,"
      and for
      purposes of clauses (i) or (ii) the date on which such Event occurs, or for
      purposes of clause (iii) the date which such 45 Trading Day-period is exceeded,
      being referred to as "Event
      Date"),
      then
      in addition to any other rights the Holders may have hereunder or under
      applicable law, on each such Event Date and on each monthly anniversary of
      each
      such Event Date (if the applicable Event shall not have been cured by such
      date)
      until the applicable Event is cured, the Company shall pay to each Holder an
      amount in cash, as partial liquidated damages and not as a penalty, equal to
      (A)
      with respect to any Holder other than a Holder of the Conversion Shares, 1.0%
      of
      the aggregate Investment Amount paid by such Holder for Shares pursuant to
      the
      Purchase Agreement and (B) with respect to any Holder of the Conversion Shares,
      1.0% of the aggregate amount of the Conversion Shares (the “Conversion
      Amount”)
      held
      by such Holder, which amount shall be computed by multiplying the aggregate
      number of the Conversion Shares held by such Holder by the Conversion Rate
      (as
      defined in the Indenture). The
      parties agree that (1) the Company will not be liable for liquidated damages
      under this Agreement with respect to any (i) warrants issued to any placement
      agent as compensation in connection with the financing that is the subject
      of
      the Purchase Agreement or (ii) Placement Agent Warrant Shares and (2) in no
      event will the Company be liable for liquidated damages under this Agreement
      in
      excess of 1.0% of the sum of the aggregate Investment Amount and the aggregate
      Conversion Amount of the Holders in any 30 calendar
      day period and the maximum aggregate liquidated damages payable to a Holder
      under this Agreement shall be twelve percent (12%) of the aggregate Investment
      Amount paid by such Holder pursuant to the Purchase Agreement or (ii) the
      aggregate Conversion Amount paid or payable by such Holder, as
      applicable.
      The
      partial liquidated damages pursuant to the terms hereof shall apply on a daily
      pro-rata basis for any portion of a month prior to the cure of an Event and
      in
      such case shall be due and payable no later than the third Trading Day after
      the
      date the Event is cured, (except in the case of the first Event Date), and
      shall
      cease to accrue (unless earlier cured) upon the expiration of the Effectiveness
      Period. If the Company fails to pay any liquidated damages pursuant to this
      section in full within seven days after the date payable, the Company will
      pay
      interest thereon at a rate of 15% per annum (or such lesser maximum amount
      that
      is permitted to be paid by applicable law) to the Holder, accruing daily from
      the date such liquidated damages are due until the amounts, plus interest
      thereon, are paid in full. 

     

    (d) Each
      Holder agrees to furnish to the Company a completed Questionnaire in the form
      attached to this Agreement as Annex
      B
      (a
“Selling
      Holder Questionnaire”).
      Notwithstanding anything to the contrary contained herein, the Company shall
      not
      be required to include the Registrable Securities of a Holder in a Registration
      Statement and shall not be required to pay any liquidated or other damages
      under
      Section 2(c) to (i) any Holder who fails to furnish to the Company a fully
      completed Selling Holder Questionnaire at least three Trading Days prior to
      the
      Filing Date (subject to the requirements set forth in Section 3(a)) and (ii)
      any  Holder
      who is a broker dealer who refuses to be named as an underwriter in the
      Registration Statement following a request by the Commission requiring such
      Holder to be named as an underwriter in the Registration Statement.

     

    3. Registration
      Procedures.

     

    In
      connection with the Company's registration obligations hereunder, the Company
      shall:

     


    
      
        
        

      

      
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    (a) Not
      less
      than four Trading Days prior to the filing of a Registration Statement or any
      related Prospectus or any amendment or supplement thereto, the Company shall
      furnish to each Holder copies of the Registration Statement, as proposed to
      be
      filed which will be subject to the review of such Holder. Each Holder shall
      have
      two Trading Days in which to provide its comments to the Registration Statement.
      The Company shall not file a Registration Statement, any Prospectus or any
      amendments or supplements thereto which differs from the disclosure received
      from a Holder in its Selling Holder Questionnaire (as amended or supplemented).
      The Company shall not file a Registration Statement, any Prospectus or any
      amendments or supplements thereto in which it (i) characterizes any Holder
      as an underwriter, (ii) excludes a particular Holder due to such Holder
      refusing to be named as an underwriter (except as otherwise permitted in Section
      2(b)), or (iii) reduces the number of Registrable Securities being
      registered on behalf of a Holder except pursuant to, in the case of subsection
      (iii), the Commission Comments, without, in each case, such Holder’s express
      written authorization.

     

    (b) (i)
      Prepare and file with the Commission such amendments, including post-effective
      amendments, to each Registration Statement and the Prospectus used in connection
      therewith as may be necessary to keep such Registration Statement continuously
      effective as to the applicable Registrable Securities for its Effectiveness
      Period and prepare and file with the Commission such additional Registration
      Statements in order to register for resale under the Securities Act all of
      the
      Registrable Securities; (ii) cause the related Prospectus to be amended or
      supplemented by any required Prospectus supplement, and as so supplemented
      or
      amended to be filed pursuant to Rule 424; (iii) respond as promptly as
      reasonably possible to any comments received from the Commission with respect
      to
      each Registration Statement or any amendment thereto and, as promptly as
      reasonably possible provide the Holders true and complete copies of all
      correspondence from and to the Commission relating to such Registration
      Statement that would not result in the disclosure to the Holders of material
      and
      non-public information concerning the Company; and (iv) comply in all material
      respects with the provisions of the Securities Act and the Exchange Act with
      respect to the Registration Statement(s) and the disposition of all Registrable
      Securities covered by each Registration Statement.

     

    (c) Notify
      the Holders as promptly as reasonably possible (and, in the case of (i)(A)
      below, not less than three Trading Days prior to such filing and, in the case
      of
      (v) below, not less than three Trading Days prior to the financial statements
      in
      any Registration Statement becoming ineligible for inclusion therein) and (if
      requested by any such Person) confirm such notice in writing no later than
      one
      Trading Day following the day (i)(A) when a Prospectus or any Prospectus
      supplement or post-effective amendment to a Registration Statement is proposed
      to be filed; (B) when the Commission notifies the Company whether there will
      be
      a "review" of such Registration Statement and whenever the Commission comments
      in writing on such Registration Statement (the Company shall provide true and
      complete copies thereof and all written responses thereto to each of the Holders
      that pertain to the Holders as a Selling Stockholder or to the Plan of
      Distribution, but not information which the Company believes would constitute
      material and non-public information); and (C) with respect to each Registration
      Statement or any post-effective amendment, when the same has become effective;
      (ii) of any request by the Commission or any other Federal or state governmental
      authority for amendments or supplements to a Registration Statement or
      Prospectus or for additional information; (iii) of the issuance by the
      Commission of any stop order suspending the effectiveness of a Registration
      Statement covering any or all of the Registrable Securities or the initiation
      of
      any Proceedings for that purpose; (iv) of the receipt by the Company of any
      notification with respect to the suspension of the qualification or exemption
      from qualification of any of the Registrable Securities for sale in any
      jurisdiction, or the initiation or threatening of any Proceeding for such
      purpose; and (v) of the occurrence of any event or passage of time that makes
      the financial statements included in a Registration Statement ineligible for
      inclusion therein or any statement made in such Registration Statement or
      Prospectus or any document incorporated or deemed to be incorporated therein
      by
      reference untrue in any material respect or that requires any revisions to
      such
      Registration Statement, Prospectus or other documents so that, in the case
      of
      such Registration Statement or the Prospectus, as the case may be, it will
      not
      contain any untrue statement of a material fact or omit to state any material
      fact required to be stated therein or necessary to make the statements therein,
      in light of the circumstances under which they were made, not misleading,
      provided that any written notice pursuant to clause (v) above that contains
      or
      may contain material non-public information may, at the option of a Holder,
      be
      delivered only to, such Holders legal counsel at the address provided to the
      Company by such Holder.

     

    
      
        
        

      

      
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    (d) Use
      its
      reasonable best efforts to avoid the issuance of, or, if issued, obtain the
      withdrawal of (i) any order suspending the effectiveness of a Registration
      Statement, or (ii) any suspension of the qualification (or exemption from
      qualification) of any of the Registrable Securities for sale in any
      jurisdiction, at the earliest practicable moment.

     

    (e) The
      Company hereby consents to the use of such Prospectus and each amendment or
      supplement thereto by each of the selling Holders in connection with the
      offering and sale of the Registrable Securities covered by such Prospectus
      and
      any amendment or supplement thereto.

     

    (f) Prior
      to
      any public offering of Registrable Securities, register or qualify such
      Registrable Securities for offer and sale under the securities or Blue Sky
      laws
      of all jurisdictions within the United States as any Holder may request, to
      keep
      each such registration or qualification (or exemption therefrom) effective
      during the Effectiveness Period and to do any and all other acts or things
      necessary or advisable to enable the disposition in such jurisdictions of the
      Registrable Securities covered by the Registration Statement(s).

     

    (g) Cooperate
      with the Holders to facilitate the timely preparation and delivery of
      certificates representing Registrable Securities to be delivered to a transferee
      pursuant to the Registration Statement(s), which certificates shall be free,
      to
      the extent permitted by the Purchase Agreement, of all restrictive legends,
      and
      to enable such Registrable Securities to be in such denominations and registered
      in such names as any such Holders may request.

     

    (h) Upon
      the
      occurrence of any event contemplated by Section 3(c)(v), as promptly as
      reasonably possible, prepare a supplement or amendment, including a
      post-effective amendment, to the affected Registration Statements or a
      supplement to the related Prospectus or any document incorporated or deemed
      to
      be incorporated therein by reference, and file any other required document
      so
      that, as thereafter delivered, no Registration Statement nor any Prospectus
      will
      contain an untrue statement of a material fact or omit to state a material
      fact
      required to be stated therein or necessary to make the statements therein,
      in
      light of the circumstances under which they were made, not misleading.


     

    4. Reports
      Under the Exchange Act. 

     

    With
      a
      view to making available to the Holders the benefits of Rule 144 promulgated
      under the Securities Act or any other similar rule or regulation of the
      Commission that may at any time permit the Holders to sell securities of the
      Company to the public without registration ("Rule
      144"),
      the
      Company agrees to:

     

    (a) make
      and
      keep public information available, as those terms are understood and defined
      in
      Rule 144; 

     


    
      
        
        

      

      
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    (b) file
      with
      the Commission in a timely manner all reports and other documents required
      of
      the Company under the Securities Act and the Exchange Act so long as the Company
      remains subject to such requirements and the filing of such reports and other
      documents is required for the applicable provisions of Rule 144; and


     

    (c) furnish
      to each Holder so long as such Holder owns Registrable Securities, promptly
      upon
      request, (i) a written statement by the Company, if true, that it has complied
      with the reporting requirements of Rule 144, the Securities Act and the Exchange
      Act, (ii) a copy of the most recent annual or quarterly report of the Company
      and such other reports and documents so filed by the Company, and (iii) such
      other information as may be reasonably requested to permit the Holders to sell
      such securities pursuant to Rule 144 without registration.

     

    5. Registration
      Expenses.
      All
      fees and expenses incidental to the performance of or compliance with this
      Agreement by the Company shall be borne by the Company whether or not any
      Registrable Securities are sold pursuant to a Registration Statement. The fees
      and expenses referred to in the foregoing sentence shall include, without
      limitation, (i) all registration and filing fees (including, without limitation,
      fees and expenses (A) with respect to filings required to be made with any
      Trading Market on which the Common Stock is then listed for trading, and (B)
      in
      compliance with applicable state securities or Blue Sky laws), (ii) printing
      expenses (including, without limitation, expenses of printing certificates
      for
      Registrable Securities and of printing prospectuses if the printing of
      prospectuses is reasonably requested by the holders of a majority of the
      Registrable Securities included in the Registration Statement), (iii) messenger,
      telephone and delivery expenses, (iv) fees and disbursements of counsel for
      the
      Company, (v) Securities Act liability insurance, if the Company so desires
      such
      insurance, and (vi) fees and expenses of all other Persons retained by the
      Company in connection with the consummation of the transactions contemplated
      by
      this Agreement. In addition, the Company shall be responsible for all of its
      internal expenses incurred in connection with the consummation of the
      transactions contemplated by this Agreement (including, without limitation,
      all
      salaries and expenses of its officers and employees performing legal or
      accounting duties), the expense of any annual audit and the fees and expenses
      incurred in connection with the listing of the Registrable Securities on any
      securities exchange as required hereunder.

     

    6. Indemnification.

     


    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    (a) Indemnification
      by the Company.
      The
      Company shall, notwithstanding any termination of this Agreement, indemnify
      and
      hold harmless each Holder, the officers, directors, agents, investment advisors,
      partners, members and employees of each of them, each Person who controls any
      such Holder (within the meaning of Section 15 of the Securities Act or Section
      20 of the Exchange Act) and the officers, directors, agents and employees of
      each such controlling Person, to the fullest extent permitted by applicable
      law,
      from and against any and all losses, claims, damages, liabilities, costs
      (including, without limitation, reasonable costs of preparation and reasonable
      attorneys' fees) and expenses (collectively, "Losses"),
      as
      incurred, arising out of or relating to (i) any violations by the Company of
      the
      Securities Act, Exchange Act or any state securities law or any rule or
      regulation thereunder in connection with the performance of its obligations
      to
      register securities under this Agreement or (ii) any untrue or alleged untrue
      statement of a material fact contained in any Registration Statement, any
      Prospectus or any form of prospectus or in any amendment or supplement thereto
      or in any preliminary prospectus, or arising out of or relating to any omission
      or alleged omission of a material fact required to be stated therein or
      necessary to make the statements therein (in the case of any Prospectus or
      form
      of prospectus or supplement thereto, in light of the circumstances under which
      they were made) not misleading, except to the extent, but only to the extent,
      that (1) such untrue statements or omissions are based solely upon information
      regarding such Holder furnished in writing to the Company by such Holder
      expressly for use therein, or to the extent that such information relates to
      such Holder or such Holder's proposed method of distribution of Registrable
      Securities and was reviewed and expressly approved in writing by such Holder
      expressly for use in the Registration Statement, such Prospectus or such form
      of
      Prospectus or in any amendment or supplement thereto (it being understood that
      the Holder has approved Annex A hereto for this purpose) or (2) in the case
      of
      an occurrence of an event of the type specified in Section 3(c)(ii)-(v), the
      use
      by such Holder of an outdated or defective Prospectus after the Company has
      notified such Holder in writing that the Prospectus is outdated or defective
      and
      prior to the receipt by such Holder of an Advice or an amended or supplemented
      Prospectus, but only if and to the extent that following the receipt of the
      Advice or the amended or supplemented Prospectus the misstatement or omission
      giving rise to such Loss would have been corrected. The Company shall notify
      the
      Holders promptly of the institution, threat or assertion of any Proceeding
      of
      which the Company is aware in connection with the transactions contemplated
      by
      this Agreement.

     

    (b) Indemnification
      by Holders.
      Each
      Holder shall, severally and not jointly, indemnify and hold harmless the
      Company, its directors, officers, agents and employees, each Person who controls
      the Company (within the meaning of Section 15 of the Securities Act and Section
      20 of the Exchange Act), and the directors, officers, agents or employees of
      such controlling Persons, to the fullest extent permitted by applicable law,
      from and against all Losses, as incurred, arising solely out of or based solely
      upon: (x) such Holder's failure to comply with the prospectus delivery
      requirements of the Securities Act or (y) any untrue statement of a material
      fact contained in any Registration Statement, any Prospectus, or any form of
      prospectus, or in any amendment or supplement thereto, or arising solely out
      of
      or based solely upon any omission of a material fact required to be stated
      therein or necessary to make the statements therein not misleading to the
      extent, but only to the extent that, (1) such untrue statements or omissions
      are
      based solely upon information regarding such Holder furnished in writing to
      the
      Company by such Holder expressly for use therein, or to the extent that such
      information relates to such Holder or such Holder's proposed method of
      distribution of Registrable Securities and was reviewed and expressly approved
      in writing by such Holder expressly for use in the Registration Statement (it
      being understood that the Holder has approved Annex A hereto for this purpose),
      such Prospectus or such form of Prospectus or in any amendment or supplement
      thereto or (2) in the case of an occurrence of an event of the type specified
      in
      Section 3(c)(ii)-(v), the use by such Holder of an outdated or defective
      Prospectus after the Company has notified such Holder in writing that the
      Prospectus is outdated or defective and prior to the receipt by such Holder
      of
      an Advice or an amended or supplemented Prospectus, but only if and to the
      extent that following the receipt of the Advice or the amended or supplemented
      Prospectus the misstatement or omission giving rise to such Loss would have
      been
      corrected. In no event shall the liability of any selling Holder hereunder
      be
      greater in amount than the dollar amount of the net proceeds received by such
      Holder upon the sale of the Registrable Securities giving rise to such
      indemnification obligation.

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    


    (c) Conduct
      of Indemnification Proceedings.
      If any
      Proceeding shall be brought or asserted against any Person entitled to indemnity
      hereunder (an "Indemnified
      Party"),
      such
      Indemnified Party shall promptly notify the Person from whom indemnity is sought
      (the "Indemnifying
      Party")
      in
      writing, and the Indemnifying Party shall assume the defense thereof, including
      the employment of counsel reasonably satisfactory to the Indemnified Party
      and
      the payment of all fees and expenses incurred in connection with defense
      thereof; provided, that the failure of any Indemnified Party to give such notice
      shall not relieve the Indemnifying Party of its obligations or liabilities
      pursuant to this Agreement, except (and only) to the extent that it shall be
      finally determined by a court of competent jurisdiction (which determination
      is
      not subject to appeal or further review) that such failure shall have
      proximately and materially adversely prejudiced the Indemnifying
      Party.

     

    An
      Indemnified Party shall have the right to employ separate counsel in any such
      Proceeding and to participate in the defense thereof, but the fees and expenses
      of such counsel shall be at the expense of such Indemnified Party or Parties
      unless: (1) the Indemnifying Party has agreed in writing to pay such fees and
      expenses; (2) the Indemnifying Party shall have failed promptly to assume the
      defense of such Proceeding and to employ counsel reasonably satisfactory to
      such
      Indemnified Party in any such Proceeding; or (3) the named parties to any such
      Proceeding (including any impleaded parties) include both such Indemnified
      Party
      and the Indemnifying Party, and such Indemnified Party shall have been advised
      by counsel that a conflict of interest is likely to exist if the same counsel
      were to represent such Indemnified Party and the Indemnifying Party (in which
      case, if such Indemnified Party notifies the Indemnifying Party in writing
      that
      it elects to employ separate counsel at the expense of the Indemnifying Party,
      the Indemnifying Party shall not have the right to assume the defense thereof
      and such counsel shall be at the expense of the Indemnifying Party). The
      Indemnifying Party shall not be liable for any settlement of any such Proceeding
      effected without its written consent, which consent shall not be unreasonably
      withheld. No Indemnifying Party shall, without the prior written consent of
      the
      Indemnified Party, effect any settlement of any pending Proceeding in respect
      of
      which any Indemnified Party is a party, unless such settlement includes an
      unconditional release of such Indemnified Party from all liability on claims
      that are the subject matter of such Proceeding.

     

    All
      fees
      and expenses of the Indemnified Party (including reasonable fees and expenses
      to
      the extent incurred in connection with investigating or preparing to defend
      such
      Proceeding in a manner not inconsistent with this Section) shall be paid to
      the
      Indemnified Party, as incurred, within twenty Trading Days of written notice
      thereof to the Indemnifying Party (regardless of whether it is ultimately
      determined that an Indemnified Party is not entitled to indemnification
      hereunder; provided, that the Indemnifying Party may require such Indemnified
      Party to undertake to reimburse all such fees and expenses to the extent it
      is
      finally judicially determined that such Indemnified Party is not entitled to
      indemnification hereunder).

     


    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    (d) Contribution.
      If a
      claim for indemnification under Section 6(a) or 6(b) is unavailable to an
      Indemnified Party (by reason of public policy or otherwise), then each
      Indemnifying Party, in lieu of indemnifying such Indemnified Party, shall
      contribute to the amount paid or payable by such Indemnified Party as a result
      of such Losses, in such proportion as is appropriate to reflect the relative
      fault of the Indemnifying Party and Indemnified Party in connection with the
      actions, statements or omissions that resulted in such Losses as well as any
      other relevant equitable considerations. The relative fault of such Indemnifying
      Party and Indemnified Party shall be determined by reference to, among other
      things, whether any action in question, including any untrue or alleged untrue
      statement of a material fact or omission or alleged omission of a material
      fact,
      has been taken or made by, or relates to information supplied by, such
      Indemnifying Party or Indemnified Party, and the parties' relative intent,
      knowledge, access to information and opportunity to correct or prevent such
      action, statement or omission. The amount paid or payable by a party as a result
      of any Losses shall be deemed to include, subject to the limitations set forth
      in Section 6(c), any reasonable attorneys' or other reasonable fees or expenses
      incurred by such party in connection with any Proceeding to the extent such
      party would have been indemnified for such fees or expenses if the
      indemnification provided for in this Section was available to such party in
      accordance with its terms.

     

    The
      parties hereto agree that it would not be just and equitable if contribution
      pursuant to this Section 6(d) were determined by pro rata allocation or by
      any
      other method of allocation that does not take into account the equitable
      considerations referred to in the immediately preceding paragraph.
      Notwithstanding the provisions of this Section 6(d), no Holder shall be required
      to contribute, in the aggregate, any amount in excess of the amount by which
      the
      proceeds actually received by such Holder from the sale of the Registrable
      Securities subject to the Proceeding exceeds the amount of any damages that
      such
      Holder has otherwise been required to pay by reason of such untrue or alleged
      untrue statement or omission or alleged omission.

     

    The
      indemnity and contribution agreements contained in this Section are in addition
      to any liability that the Indemnifying Parties may have to the Indemnified
      Parties.

     

    7. Miscellaneous.

     

    (a) Remedies.
      In the
      event of a breach by the Company or by a Holder, of any of their obligations
      under this Agreement, each Holder or the Company, as the case may be, in
      addition to being entitled to exercise all rights granted by law and under
      this
      Agreement, including recovery of damages, will be entitled to specific
      performance of its rights under this Agreement. The Company and each Holder
      agree that monetary damages would not provide adequate compensation for any
      losses incurred by reason of a breach by it of any of the provisions of this
      Agreement and hereby further agrees that, in the event of any action for
      specific performance in respect of such breach, it shall waive the defense
      that
      a remedy at law would be adequate.

     

    (b) No
      Piggyback on Registrations.
      Except
      as and to the extent specified in Schedule
      3.1(v)
      of the Purchase Agreement, neither
      the
      Company nor any of its security holders (other than the Holders in such capacity
      pursuant hereto) may include securities of the Company in a Registration
      Statement other than the Registrable Securities, and the Company shall not,
      from
      the date hereof until the expiration of the Effectiveness Period, enter into
      any
      agreement providing any such right to any of its security holders.

     

    (c) Compliance.
      Each
      Holder covenants and agrees that it will comply with the prospectus delivery
      requirements of the Securities Act as applicable to it in connection with sales
      of Registrable Securities pursuant to the Registration Statement.

     


    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    


     

    (d) Discontinued
      Disposition.
      Each
      Holder agrees by its acquisition of such Registrable Securities that, upon
      receipt of a notice from the Company of the occurrence of any event of the
      kind
      described in Section 3(c), such Holder will forthwith discontinue disposition
      of
      such Registrable Securities under the Registration Statement until such Holder's
      receipt of the copies of the supplemented Prospectus and/or amended Registration
      Statement or until it is advised in writing (the "Advice")
      by the
      Company that the use of the applicable Prospectus may be resumed, and, in either
      case, has received copies of any additional or supplemental filings that are
      incorporated or deemed to be incorporated by reference in such Prospectus or
      Registration Statement. The Company may provide appropriate stop orders to
      enforce the provisions of this paragraph.

     

    (e) Piggy-Back
      Registrations.
      If at
      any time during the Effectiveness Period there is not an effective Registration
      Statement covering all of the Registrable Securities and the Company shall
      determine to prepare and file with the Commission a registration statement
      relating to an offering for its own account or the account of others under
      the
      Securities Act of any of its equity securities, other than on Form S-4 or Form
      S-8 (each as promulgated under the Securities Act) or their then equivalents
      relating to equity securities to be issued solely in connection with any
      acquisition of any entity or business or equity securities issuable in
      connection with stock option or other employee benefit plans, then the Company
      shall send to each Holder written notice of such determination and, if within
      fifteen calendar days after receipt of such notice, any such Holder shall so
      request in writing, the Company shall include in such registration statement,
      on
      a prorated basis, all or any part of such Registrable Securities such holder
      requests to be registered, subject to customary underwriter cutbacks applicable
      to all holders of registration rights. 

     

    (f) Rule
      144 Compliance.
      As long
      as any Holder owns any Registrable Securities, the Company will apply its best
      efforts to file with the SEC in a timely manner (or obtain extensions in respect
      thereof and file within the applicable grace period) all reports and other
      documents required of the Company under the Securities Act and Exchange Act
      and,
      if the Company is not required to file reports pursuant to Section 13(a) or
      15
      (d) of the Exchange Act, it will prepare and furnish to the Holders and make
      publicly available in accordance with Rule 144(c) promulgated under the
      Securities Act annual and quarterly financial statements, together with a
      discussion and analysis of such financial statements in form and substance
      substantially similar to those that would otherwise be required to be included
      in reports required by Section 13(a) or 15(d) of the Exchange Act, as well
      as
      any other information required thereby, in the time period that such filings
      would have been required to have been made under the Exchange Act. 

     


    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

     

    (g) Amendments
      and Waivers.
      The
      provisions of this Agreement, including the provisions of this Section 7(g),
      may
      not be amended, modified or supplemented, and waivers or consents to departures
      from the provisions hereof may not be given, unless the same shall be in writing
      and signed by the Company and the Holders of no less than sixty six and two
      thirds (66 2/3%) percent of the then outstanding Registrable Securities.
      Notwithstanding the foregoing, a waiver or consent to depart from the provisions
      hereof with respect to a matter that relates exclusively to the rights of
      certain Holders and that does not directly or indirectly affect the rights
      of
      other Holders may be given by Holders of at least a majority of the Registrable
      Securities to which such waiver or consent relates; provided,
      further
      that no amendment or waiver to any provision of this Agreement relating to
      naming any Holder or requiring the naming of any Holder as an underwriter may
      be
      effected in any manner without such Holder’s prior written consent. Section 2(a)
      may not be amended or waived except by written consent of each Holder affected
      by such amendment or waiver. 

     

    (h) Notices.
      Any and
      all notices or other communications or deliveries required or permitted to
      be
      provided hereunder shall be in writing and shall be deemed given and effective
      on the earliest of (a) the date of transmission, if such notice or communication
      is delivered via facsimile (provided the sender receives a machine-generated
      confirmation of successful transmission) at the facsimile number specified
      in
      this Section prior to 6:30 p.m. (New York City time) on a Trading Day, (b)
      the
      next Trading Day after the date of transmission, if such notice or communication
      is delivered via facsimile at the facsimile number specified in this Section
      on
      a day that is not a Trading Day or later than 6:30 p.m. (New York City time)
      on
      any Trading Day, (c) the Trading Day following the date of mailing, if sent
      by
      U.S. nationally recognized overnight courier service, or (d) upon actual receipt
      by the party to whom such notice is required to be given. The address for such
      notices and communications shall be as follows:

    

      
        	
                If
                  to the Company:

              	 	
                Fushi
                  International, Inc.

              
	 	 	
                1
                  Shuang Qiang Road 

              
	 	 	
                Jinzhou,
                  Dalian 116100

              
	
                 

              	 	
                People's
                  Republic of China

              
	 	 	
                Facsimile:
                  [   ]

              
	 	 	
                Attention:
                  President

              
	 	 	 
	
                With
                  a copy to:

              	 	
                Weil,
                  Gotchal &
                  Manges LLP

              
	 	 	
                Plaza
                  66, Tower 2, 38th Floor

              
	 	 	
                1366
                  Nanjing Road West

              
	 	 	
                Shanghai
                  200040

              
	 	 	
                People's
                  Republic of China

              
	 	 	
                Facsimile:
                     +86
                  6288 3866

              
	 	 	
                Attn.:
                    David
                  Meredith, Esq.

              


      

    

     

    
      	               
              	If
              to a Investor:        	
              To
                the address set forth under such Investor's name on the signature
                pages
                hereto.

            


    

     

    If
      to any
      other Person who is then the registered Holder:

     

    
      
        	               
                	 	To the address of such Holder as
                it appears in
                the stock transfer books of the Company


      

       

    

    or
      such
      other address as may be designated in writing hereafter, in the same manner,
      by
      such Person.

     


    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    


     

    (i) Successors
      and Assigns.
      This
      Agreement shall inure to the benefit of and be binding upon the successors
      and
      permitted assigns of each of the parties and shall inure to the benefit of
      each
      Holder. The Company may not assign its rights or obligations hereunder without
      the prior written consent of each Holder. Each Holder other than a Holder of
      the
      Conversion Shares may assign its respective rights hereunder in the manner
      and
      to the Persons as permitted under the Purchase Agreement, and each Holder which
      is a Holder of the Conversion Shares may assign its respective rights hereunder
      in the manner and to the Persons as permitted under the Indenture.

     

    (j) Execution
      and Counterparts.
      This
      Agreement may be executed in any number of counterparts, each of which when
      so
      executed shall be deemed to be an original and, all of which taken together
      shall constitute one and the same Agreement. In the event that any signature
      is
      delivered by facsimile transmission, such signature shall create a valid binding
      obligation of the party executing (or on whose behalf such signature is
      executed) the same with the same force and effect as if such facsimile signature
      were the original thereof.

     

    (k) Governing
      Law.
      All
      questions concerning the construction, validity, enforcement and interpretation
      of this Agreement shall be governed by and construed and enforced in accordance
      with the internal laws of the State of New York, without regard to the
      principles of conflicts of law thereof. Each party agrees that all Proceedings
      concerning the interpretations, enforcement and defense of the transactions
      contemplated by this Agreement (whether brought against a party hereto or its
      respective Affiliates, employees or agents) will be commenced in the New York
      Courts. Each party hereto hereby irrevocably submits to the exclusive
      jurisdiction of the New York Courts for the adjudication of any dispute
      hereunder or in connection herewith or with any transaction contemplated hereby
      or discussed herein, and hereby irrevocably waives, and agrees not to assert
      in
      any Proceeding, any claim that it is not personally subject to the jurisdiction
      of any New York Court, or that such Proceeding has been commenced in an improper
      or inconvenient forum. Each party hereto hereby irrevocably waives personal
      service of process and consents to process being served in any such Proceeding
      by mailing a copy thereof via registered or certified mail or overnight delivery
      (with evidence of delivery) to such party at the address in effect for notices
      to it under this Agreement and agrees that such service shall constitute good
      and sufficient service of process and notice thereof. Nothing contained herein
      shall be deemed to limit in any way any right to serve process in any manner
      permitted by law. Each party hereto hereby irrevocably waives, to the fullest
      extent permitted by applicable law, any and all right to trial by jury in any
      Proceeding arising out of or relating to this Agreement or the transactions
      contemplated hereby. If either party shall commence a Proceeding to enforce
      any
      provisions of this Agreement, then the prevailing party in such Proceeding
      shall
      be reimbursed by the other party for its attorney’s fees and other costs and
      expenses incurred with the investigation, preparation and prosecution of such
      Proceeding.

     

    (l) Cumulative
      Remedies.
      The
      remedies provided herein are cumulative and not exclusive of any remedies
      provided by law.

     

    (m) Severability.
      If any
      term, provision, covenant or restriction of this Agreement is held by a court
      of
      competent jurisdiction to be invalid, illegal, void or unenforceable, the
      remainder of the terms, provisions, covenants and restrictions set forth herein
      shall remain in full force and effect and shall in no way be affected, impaired
      or invalidated, and the parties hereto shall use their reasonable efforts to
      find and employ an alternative means to achieve the same or substantially the
      same result as that contemplated by such term, provision, covenant or
      restriction. It is hereby stipulated and declared to be the intention of the
      parties that they would have executed the remaining terms, provisions, covenants
      and restrictions without including any of such that may be hereafter declared
      invalid, illegal, void or unenforceable.

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

     

    (n) Headings.
      The
      headings in this Agreement are for convenience of reference only and shall
      not
      limit or otherwise affect the meaning hereof.

     

    (o) Independent
      Nature of Investors' Obligations and Rights.
      The
      obligations of each Investor under this Agreement are several and not joint
      with
      the obligations of each other Investor, and no Investor shall be responsible
      in
      any way for the performance of the obligations of any other Investor under
      this
      Agreement. Nothing contained herein or in any Transaction Document, and no
      action taken by any Investor pursuant thereto, shall be deemed to constitute
      the
      Investors as a partnership, an association, a joint venture or any other kind
      of
      entity, or create a presumption that the Investors are in any way acting in
      concert or as a group with respect to such obligations or the transactions
      contemplated by this Agreement or any other Transaction Document. Each Investor
      acknowledges that no other Investor will be acting as agent of such Investor
      in
      enforcing its rights under this Agreement. Each Investor shall be entitled
      to
      independently protect and enforce its rights, including without limitation
      the
      rights arising out of this Agreement, and it shall not be necessary for any
      other Investor to be joined as an additional party in any Proceeding for such
      purpose. The Company acknowledges that each of the Investors has been provided
      with the same Registration Rights Agreement for the purpose of closing a
      transaction with multiple Investors and not because it was required or requested
      to do so by any Investor.

     

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      OF PAGE INTENTIONALLY LEFT BLANK

    SIGNATURE
      PAGES TO FOLLOW]

    


     


    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    


     

    IN
      WITNESS WHEREOF, the parties have executed this Registration Rights Agreement
      as
      of the date first written above.

     

    
      	 	 	 
	 	FUSHI INTERNATIONAL,
              INC.
	 
 	 
 	 
 
	 	By:  	/s/
              Li Fu
	 	
              
Name:
              Li Fu
	 	Title:
              CEO


    

     

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      OF PAGE INTENTIONALLY LEFT BLANK

    SIGNATURE
      PAGES OF INVESTORS TO FOLLOW]

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF, the parties have executed this Registration Rights Agreement
      as
      of the date first written above.

     

    NAME
      OF INVESTING ENTITY

     

    AMTRUST
      INTERNATIONAL INSURANCE, LTD

     

    By:         
      /s/ Jan
      Loeb_____________________

    Name:
      Jan
      Loeb

    Title:
      Portfolio Manager

    


    ADDRESS
      FOR NOTICE

    


    c/o:
      ______________________________________

    


    Street:
      ____________________________________

    


    City/State/Zip:
      ______________________________

    


    Attention:
      _________________________________

    


    Tel:
      ______________________________________

    


    Fax:
      ______________________________________

    


    Email:
      _____________________________________

    


    
      
        
          
          

        

        
          18

          
            

          

        

        
          
          

        

      

    

     

    IN
      WITNESS WHEREOF, the parties have executed this Registration Rights Agreement
      as
      of the date first written above.

     

    NAME
      OF INVESTING ENTITY

     

    ARDSLEY
      PARTNERS FUND, II LP

     

    By:         
      /s/ Steven
      Napoli_________________

    Name:
      Steven Napoli

    Title: CFO

    


    ADDRESS
      FOR NOTICE

    


    c/o:
      ______________________________________

    


    Street:
      ____________________________________

    


    City/State/Zip:
      ______________________________

    


    Attention:
      _________________________________

    


    Tel:
      ______________________________________

    


    Fax:
      ______________________________________

    


    Email:
      _____________________________________

     

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF, the parties have executed this Registration Rights Agreement
      as
      of the date first written above.

     

    NAME
      OF INVESTING ENTITY

     

    ARDSLEY
      OFFSHORE FUND, LTD

     

    By:         
      /s/  Steven
      N. Napoli________________

    Name:
      Steven N. Napoli

    Title: CFO

    


    ADDRESS
      FOR NOTICE

    


    c/o:
      ______________________________________

    


    Street:
      ____________________________________

    


    City/State/Zip:
      ______________________________

    


    Attention:
      _________________________________

    


    Tel:
      ______________________________________

    


    Fax:
      ______________________________________

    


    Email:
      _____________________________________

     

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

     

    
      IN
        WITNESS WHEREOF, the parties have executed this Registration Rights Agreement
        as
        of the date first written above.

      
         

        NAME
          OF INVESTING ENTITY

         

        ARDSLEY
          PARTNERS INSTITUTIONAL FUND LP

         

        By:         
          /s/ Steven N. Napoli_______________

        Name:
          Steven N. Napoli

        Title: CFO/
          Partner

        


        ADDRESS
          FOR NOTICE

        


        c/o:
          ______________________________________

        


        Street:
          ____________________________________

        


        City/State/Zip:
          ______________________________

        


        Attention:
          _________________________________

        


        Tel:
          ______________________________________

        


        Fax:
          ______________________________________

        


        Email:
          _____________________________________

         

        
          
            
            

          

          
            21

            
              

            

          

          
            
            

          

        

         

      

    

     

    IN
      WITNESS WHEREOF, the parties have executed this Registration Rights Agreement
      as
      of the date first written above.

     

    NAME
      OF INVESTING ENTITY

     

    ANCORA
      GREATER CHINA FUND, LP

     

    By:         
      /s/ John P. Micklitsch______________________

    Name:
      John
      P.
      Micklitsch

    Title:
      SR. PM

    


    ADDRESS
      FOR NOTICE

    


    c/o:
      ______________________________________

    


    Street:
      ____________________________________

    


    City/State/Zip:
      ______________________________

    


    Attention:
      _________________________________

    


    Tel:
      ______________________________________

    


    Fax:
      ______________________________________

    


    Email:
      _____________________________________

    


    

      
        
          
          

        

        
          22

          
            

          

        

        
          
          

        

      

    

     

    
      IN
        WITNESS WHEREOF, the parties have executed this Registration Rights Agreement
        as
        of the date first written above.

       

      NAME
        OF INVESTING ENTITY

       

      BLACK
        RIVER COMMODITY SELECT FUND LTD

       

      By:         
        /s/ G. Schmidt____________________

      Name:
        G.
        Schmidt

      Title:
        Principal

      


      ADDRESS
        FOR NOTICE

      


      c/o:
        ______________________________________

      


      Street:
        ____________________________________

      


      City/State/Zip:
        ______________________________

      


      Attention:
        _________________________________

      


      Tel:
        ______________________________________

      


      Fax:
        ______________________________________

      


      Email:
        _____________________________________

      


      


      
        
          
            
            

          

          
            23

            
              

            

          

          
            
            

          

        

      

      
         

        
          IN
            WITNESS WHEREOF, the parties have executed this Registration Rights Agreement
            as
            of the date first written above.

           

        

      

      NAME
        OF INVESTING ENTITY

    

     

    
      Citadel
        Equity Fund Ltd.

      


      By:
        Citadel Limited Partnership; it’s Portfolio Manager

       

      By:
        Citadel Investment Group, L.L.C.; its
        General Partner

       

      
        By:         
          /s/ Andrew Fong____________________

        Name:
          Andrew
          Fong

        Title:
          Authorized Signatory

      

       

      
        
          
          

        

        
          24

          
            

          

        

        
          
          

        

      

       

      


    

     
       

      IN
        WITNESS WHEREOF, the parties have executed this Registration Rights Agreement
        as
        of the date first written above.

       

      NAME
        OF INVESTING ENTITY

       

      ENABLE
        GROWTH PARTNERS L.P.

       

      By:         
        /s/ Brendan O'Neil_________________

      Name: 
        Brendan
        O'Neil

      Title:
        Principal

       

      ADDRESS
        FOR NOTICE

      


      c/o:
        ______________________________________

      


      Street:
        ____________________________________

      


      City/State/Zip:
        ______________________________

      


      Attention:
        _________________________________

      


      Tel:
        ______________________________________

      


      Fax:
        ______________________________________

      


      Email:
        _____________________________________

      



    
      
        
        

      

      
        25

        
          

        

      

      
        
        

      

    

     

    
      IN
        WITNESS WHEREOF, the parties have executed this Registration Rights Agreement
        as
        of the date first written above.

       

      NAME
        OF INVESTING ENTITY

       

      ENABLE OPPORTUNITY
        PARTNERS LP

       

      By:         
        /s/ Brendan O'Neil______________________

      Name: 
        Brendan
        O'Neil

      Title: Principal
        &  Portfolio Manager

      


      ADDRESS
        FOR NOTICE

      


      c/o:
        ______________________________________

      


      Street:
        ____________________________________

      


      City/State/Zip:
        ______________________________

      


      Attention:
        _________________________________

      


      Tel:
        ______________________________________

      


      Fax:
        ______________________________________

      


      Email:
        _____________________________________

      


      
        
          
          

        

        
          26

          
            

          

        

        
          
          

        

      

    

     

    
      
        IN
          WITNESS WHEREOF, the parties have executed this Registration Rights Agreement
          as
          of the date first written above.

         

        NAME
          OF INVESTING ENTITY

         

        GOLDMAN
          SACHS CREDIT PARTNERS L.P.

         

        By:         
          /s/ Stephen P. Hickey______________________

        Name: 
          Stephen
          P. Hickey

        Title:
          Authorized Signatory

        


        ADDRESS
          FOR NOTICE

        


        c/o:
          ______________________________________

        


        Street:
          ____________________________________

        


        City/State/Zip:
          ______________________________

        


        Attention:
          _________________________________

        


        Tel:
          ______________________________________

        


        Fax:
          ______________________________________

        


        Email:
          _____________________________________

        


        
          
            
            

          

          
            27

            
              

            

          

          
            
            

          

        

      

    

     

    IN
      WITNESS WHEREOF, the parties have executed this Registration Rights Agreement
      as
      of the date first written above.

     

    NAME
      OF INVESTING ENTITY

     

    HUA-MEI
      21ST CENTURY PARTNERS, LP

     

    By:         
      /s/ Leigh S. Curry_____________________

    Name:
      Leigh S. Curry

    Title:

    


    ADDRESS
      FOR NOTICE

    


    c/o:
      ______________________________________

    


    Street:
      ____________________________________

    


    City/State/Zip:
      ______________________________

    


    Attention:
      _________________________________

    


    Tel:
      ______________________________________

    


    Fax:
      ______________________________________

    


    Email:
      _____________________________________

    


    


    
      
        
          
          

        

        
          28

          
            

          

        

        
          
          

        

      

    

      
      IN
        WITNESS WHEREOF, the parties have executed this Registration Rights Agreement
        as
        of the date first written above.

       

      NAME
        OF INVESTING ENTITY

       

      JANUS
        INVESTMENT FUNDS (ON BEHALF OF
        ITS
        SERIES JANUS VENTURE FUND)

       

      By:         
        /s/ William H. Bales__________________

      Name:
        William
        H. Bales

      Title: 
        Portfolio Manager

      


      ADDRESS
        FOR NOTICE

      


      c/o:
        ______________________________________

      


      Street:
        ____________________________________

      


      City/State/Zip:
        ______________________________

      


      Attention:
        _________________________________

      


      Tel:
        ______________________________________

      


      Fax:
        ______________________________________

      


      Email:
        _____________________________________

       

      
        
          
          

        

        
          29

          
            

          

        

        
          
          

        

         

      

      
        IN
          WITNESS WHEREOF, the parties have executed this Registration Rights Agreement
          as
          of the date first written above.

         

        NAME
          OF INVESTING ENTITY

         

        JANUS
          CAPITAL FUNDS PLC (ON BEHALF OF
          ITS
          SERIES JANUS US VENTURE FUND)

         

        By:         
          /s/ William
          H. Bales__________________

        Name:
          William
          H. Bales

        Title: 
          Portfolio Manager

        


        ADDRESS
          FOR NOTICE

        


        c/o:
          ______________________________________

        


        Street:
          ____________________________________

        


        City/State/Zip:
          ______________________________

        


        Attention:
          _________________________________

        


        Tel:
          ______________________________________

        


        Fax:
          ______________________________________

        


        Email:
          _____________________________________

        


        
          
            
            

          

          
            30

            
              

            

          

          
            
            

          

        

      

      
         

        
          IN
            WITNESS WHEREOF, the parties have executed this Registration Rights Agreement
            as
            of the date first written above.

           

          NAME
            OF INVESTING ENTITY

           

          JOHN
            HANCOCK TRUST EMERGING 

          GROWTH
            TRUST

           

          By:         
            /s/ Ismail
            Gunes______________________

          Name:
            Ismail Gunes

          Title:
            V.P.

          


          ADDRESS
            FOR NOTICE

          


          c/o:
            ______________________________________

          


          Street:
            ____________________________________

          


          City/State/Zip:
            ______________________________

          


          Attention:
            _________________________________

          


          Tel:
            ______________________________________

          


          Fax:
            ______________________________________

          


          Email:
            _____________________________________

          


          
            
              
              

            

            
              31

              
                

              

            

            
              
              

            

          

        

      

    

     

    
      
        
          IN
            WITNESS WHEREOF, the parties have executed this Registration Rights Agreement
            as
            of the date first written above.

           

          NAME
            OF INVESTING ENTITY

           

          JOHN
            HANCOCK FUNDS II EMERGENCY 

          GROWTH
            FUND

           

          By:         
            /s/ Ismail Gunes______________________

          Name:
            Ismail Gunes

          Title:
            V.P.

          


          ADDRESS
            FOR NOTICE

          


          c/o:
            ______________________________________

          


          Street:
            ____________________________________

          


          City/State/Zip:
            ______________________________

          


          Attention:
            _________________________________

          


          Tel:
            ______________________________________

          


          Fax:
            ______________________________________

          


          Email:
            _____________________________________

          


          
            
              
              

            

            
              32

              
                

              

            

            
              
              

            

          

        

      


     

    IN
      WITNESS WHEREOF, the parties have executed this Registration Rights Agreement
      as
      of the date first written above.

     

    NAME
      OF INVESTING ENTITY

     

    JOHN
      HANCOCK SMALLCAP EQUITY FUND

     

    By:         
      /s/ Ismail Gunes________________________

    Name:
      Ismail Gunes

    Title:
      V.P. 

    


    ADDRESS
      FOR NOTICE

    


    c/o:
      ______________________________________

    


    Street:
      ____________________________________

    


    City/State/Zip:
      ______________________________

    


    Attention:
      _________________________________

    


    Tel:
      ______________________________________

    


    Fax:
      ______________________________________

    


    Email:
      _____________________________________

    


    

      
        
          
          

        

        
          33

          
            

          

        

        
          
          

        

      

       

      IN
        WITNESS WHEREOF, the parties have executed this Registration Rights Agreement
        as
        of the date first written above.

       

      NAME
        OF INVESTING ENTITY

       

      HELLER
        CAPITAL INVESTMENTS, LLC

       

      By:         
        /s/ Ronald I. Heller________________________

      Name:
        Ronald I. Heller

      Title:
        CEO

      


      ADDRESS
        FOR NOTICE

      


      c/o:
        ______________________________________

      


      Street:
        ____________________________________

      


      City/State/Zip:
        ______________________________

      


      Attention:
        _________________________________

      


      Tel:
        ______________________________________

      


      Fax:
        ______________________________________

      


      Email:
        _____________________________________

      


      

        
          
            
            

          

          
            34

            
              

            

          

          
            
            

          

        

        IN
          WITNESS WHEREOF, the parties have executed this Registration Rights Agreement
          as
          of the date first written above.

         

        NAME
          OF INVESTING ENTITY

         

        HUDSON
          BAY OVERSEAS FUND LTD.

         

        By:         
          /s/ Yoav Roth________________________

        Name:
          Yoav Roth

        Title:
          Principal

        


        ADDRESS
          FOR NOTICE

        


        c/o:
          ______________________________________

        


        Street:
          ____________________________________

        


        City/State/Zip:
          ______________________________

        


        Attention:
          _________________________________

        


        Tel:
          ______________________________________

        


        Fax:
          ______________________________________

        


        Email:
          _____________________________________

        


        

          
            
              
              

            

            
              35

              
                

              

            

            
              
              

            

          



        
          IN
            WITNESS WHEREOF, the parties have executed this Registration Rights Agreement
            as
            of the date first written above.

           

          NAME
            OF INVESTING ENTITY

           

          HUDSON
            BAY OVERSEAS FUND LP

           

          By:         
            /s/ Yoav Roth________________________

          Name:
            Yoav Roth

          Title:
            Principal

           

          ADDRESS
            FOR NOTICE

          


          c/o:
            ______________________________________

          


          Street:
            ____________________________________

          


          City/State/Zip:
            ______________________________

          


          Attention:
            _________________________________

          


          Tel:
            ______________________________________

          


          Fax:
            ______________________________________

          


          Email:
            _____________________________________

          


          

            
              
                
                

              

              
                36

                
                  

                

              

              
                
                

              

            



          
            IN
              WITNESS WHEREOF, the parties have executed this Registration Rights
              Agreement as
              of the date first written above.

             

            NAME
              OF INVESTING ENTITY

             

            LEAP
              TIDE
              PARTNERS, LP.

             

            By:         
              /s/ Jan Loeb________________________

            Name:
              Jan
              Loeb

            Title:
              Member of GP.

            


            ADDRESS
              FOR NOTICE

            


            c/o:
              ______________________________________

            


            Street:
              ____________________________________

            


            City/State/Zip:
              ______________________________

            


            Attention:
              _________________________________

            


            Tel:
              ______________________________________

            


            Fax:
              ______________________________________

            


            Email:
              _____________________________________

            


            

              
                
                  
                  

                

                
                  37

                  
                    

                  

                

                
                  
                  

                

              



          

        

      

    

     

     

    IN
      WITNESS WHEREOF, the parties have executed this Registration Rights Agreement
      as
      of the date first written above.

     

    NAME
      OF INVESTING ENTITY

     

    LEAP
      TIDE
      OFFSHORE LTD

     

    By:         /s/
      Jan
      Loeb                          


    Name:
      Jan
      Loeb                          


    Title:
      Director

    


    ADDRESS
      FOR NOTICE

    


    c/o:
      ______________________________________

    


    Street:
      ____________________________________

    


    City/State/Zip:
      ______________________________

    


    Attention:
      _________________________________

    


    Tel:
      ______________________________________

    


    Fax:
      ______________________________________

    


    Email:
      _____________________________________

    


    

      
        
          
          

        

        
          38

          
            

          

        

        
          
          

        

      

       

      IN
        WITNESS WHEREOF, the parties have executed this Registration Rights Agreement
        as
        of the date first written above.

       

      NAME
        OF INVESTING ENTITY

       

      MARION
        LYNTON

       

      By:         
        /s/ Steven
        Napoli                 


      Name:
        Steven
        Napoli                 


      Title:
        CFO / Partner

      


      ADDRESS
        FOR NOTICE

      


      c/o:
        ______________________________________

      


      Street:
        ____________________________________

      


      City/State/Zip:
        ______________________________

      


      Attention:
        _________________________________

      


      Tel:
        ______________________________________

      


      Fax:
        ______________________________________

      


      Email:
        _____________________________________

      


      

        
          
            
            

          

          
            39

            
              

            

          

          
            
            

          

        


       

      IN
        WITNESS WHEREOF, the parties have executed this Registration Rights Agreement
        as
        of the date first written above.

       

      NAME
        OF INVESTING ENTITY

       

      MORGAN
        STANLEY & CO INCORPORATED

       

      By:         
        /s/ Andrew
        C.
        Fipa                            


      Name:
        Andrew C.
        Fipa                            


      Title:

      


      ADDRESS
        FOR NOTICE

      


      c/o:
        ______________________________________

      


      Street:
        ____________________________________

      


      City/State/Zip:
        ______________________________

      


      Attention:
        _________________________________

      


      Tel:
        ______________________________________

      


      Fax:
        ______________________________________

      


      Email:
        _____________________________________

      


      

        
          
            
            

          

          
            40

            
              

            

          

          
            
            

          

        


       

      IN
        WITNESS WHEREOF, the parties have executed this Registration Rights Agreement
        as
        of the date first written above.

       

      NAME
        OF INVESTING ENTITY

       

      OUTPOINT
        OFFSHORE FUND, LTD

       

      By:         
        /s/ Jordon
        Grayson                  


      Name:
        Jordon
        Grayson                  


      Title:
        Director

      


      ADDRESS
        FOR NOTICE

      


      c/o:
        ______________________________________

      


      Street:
        ____________________________________

      


      City/State/Zip:
        ______________________________

      


      Attention:
        _________________________________

      


      Tel:
        ______________________________________

      


      Fax:
        ______________________________________

      


      Email:
        _____________________________________

      


      

        
          
            
            

          

          
            41

            
              

            

          

          
            
            

          

        


       

      IN
        WITNESS WHEREOF, the parties have executed this Registration Rights Agreement
        as
        of the date first written above.

       

      NAME
        OF INVESTING ENTITY

       

      OHIO
        NATIONAL FUND INC


      
        
          (ON
            BEHALF OF ITS SERIES OHIO NATIONAL SMALL CAP GROWTH PORTFOLIO)

           

          By:         
            /s/ William
            Bales                                         


        

      

      Name:
        William
        Bales                                         


      Title: 
        Portfolio Manager

      


      ADDRESS
        FOR NOTICE

      


      c/o:
        ______________________________________

      


      Street:
        ____________________________________

      


      City/State/Zip:
        ______________________________

      


      Attention:
        _________________________________

      


      Tel:
        ______________________________________

      


      Fax:
        ______________________________________

      


      Email:
        _____________________________________

      


      

        
          
            
            

          

          
            42

            
              

            

          

          
            
            

          

        



     

    IN
      WITNESS WHEREOF, the parties have executed this Registration Rights Agreement
      as
      of the date first written above.

     

    NAME
      OF INVESTING ENTITY

     

    
      PIERCE
        DIVERSIFIED STRATEGY MASTER FUND LLC

       

    

    By:         
      /s/ Brendan
      O'Neil_________________

    Name:
      Brendan O'Neil

    Title:
      Principal

    


    ADDRESS
      FOR NOTICE

    


    c/o:
      ______________________________________

    


    Street:
      ____________________________________

    


    City/State/Zip:
      ______________________________

    


    Attention:
      _________________________________

    


    Tel:
      ______________________________________

    


    Fax:
      ______________________________________

    


    Email:
      _____________________________________

    


    
      
        
        

      

      
        43

        
          

        

      

      
        
        


    

    
       

      IN
        WITNESS WHEREOF, the parties have executed this Registration Rights Agreement
        as
        of the date first written above.

       

      NAME
        OF INVESTING ENTITY

       

      
        POPE
          INVESTMENTS LLC

         

      

      By:         
        /s/ William
        P. Wells___________________

      Name:
        William P. Wells

      Title:
        Managing Member

      


      ADDRESS
        FOR NOTICE

      


      c/o:
        ______________________________________

      


      Street:
        ____________________________________

      


      City/State/Zip:
        ______________________________

      


      Attention:
        _________________________________

      


      Tel:
        ______________________________________

      


      Fax:
        ______________________________________

      


      Email:
        _____________________________________


     

    
      
        
        

      

      
        44

        
          

        

      

      
        
        

      

    

    
       

      IN
        WITNESS WHEREOF, the parties have executed this Registration Rights Agreement
        as
        of the date first written above.

       

      NAME
        OF INVESTING ENTITY

       

      
        STRAUS
          PARTNERS, LP

         

      

      By:         
        /s/ Craig Connors_____________________

      Name:
        Craig Connors

      Title:
        CFO

      


      ADDRESS
        FOR NOTICE

      


      c/o:
        ______________________________________

      


      Street:
        ____________________________________

      


      City/State/Zip:
        ______________________________

      


      Attention:
        _________________________________

      


      Tel:
        ______________________________________

      


      Fax:
        ______________________________________

      


      Email:
        _____________________________________

    

     

    
      
        
        

      

      
        45

        
          

        

      

      
        
        

      

    

    
      
         

        IN
          WITNESS WHEREOF, the parties have executed this Registration Rights Agreement
          as
          of the date first written above.

         

        NAME
          OF INVESTING ENTITY

         

        
          STRAUS-GEPT
            PARTNERS L.P.

           

        

        By:         
          /s/ Craig Connors_____________________

        Name:
          Craig Connors

        Title:
          CFO

        


        ADDRESS
          FOR NOTICE

        


        c/o:
          ______________________________________

        


        Street:
          ____________________________________

        


        City/State/Zip:
          ______________________________

        


        Attention:
          _________________________________

        


        Tel:
          ______________________________________

        


        Fax:
          ______________________________________

        


        Email:
          _____________________________________

      

    

    

      
        
          
          

        

        
          46

          
            

          

        

        
          
          

        

      



    Annex
      A

     

    Plan
      of
      Distribution

     

    The
      Selling Stockholders and any of their pledgees, donees, transferees, assignees
      and successors-in-interest may, from time to time, sell any or all of their
      shares of Common Stock on any stock exchange, market or trading facility on
      which the shares are traded or quoted or in private transactions. These sales
      may be at fixed or negotiated prices. The Selling Stockholders may use any
      one
      or more of the following methods when selling shares:

     

    
      	
              ·

            	
              ordinary
                brokerage transactions and transactions in which the broker-dealer
                solicits Investors;

            


    

     

    
      	
              ·

            	
              block
                trades in which the broker-dealer will attempt to sell the shares
                as agent
                but may position and resell a portion of the block as principal to
                facilitate the transaction;

            


    

     

    
      	
              ·

            	
              purchases
                by a broker-dealer as principal and resale by the broker-dealer for
                its
                account;

            


    

     

    
      	
              ·

            	
              an
                exchange distribution in accordance with the rules of the applicable
                exchange;

            


    

     

    
      	
              ·

            	
              privately
                negotiated transactions;

            


    

     

    
      	
              ·

            	
              to
                cover short sales made after the date that this Registration Statement
                is
                declared effective by the Commission;


            


    

     

    
      	
              ·

            	
              broker-dealers
                may agree with the Selling Stockholders to sell a specified number
                of such
                shares at a stipulated price per
                share;

            


    

     

    
      	
              ·

            	
              a
                combination of any such methods of sale;
                and

            


    

     

    
      	
              ·

            	
              any
                other method permitted pursuant to applicable
                law.

            


    

     

    The
      Selling Stockholders may also sell shares under Rule 144 under the Securities
      Act, if available, rather than under this prospectus.

     

    Broker-dealers
      engaged by the Selling Stockholders may arrange for other brokers-dealers to
      participate in sales. Broker-dealers may receive commissions or discounts from
      the Selling Stockholders (or, if any broker-dealer acts as agent for the
      purchaser of shares, from the purchaser) in amounts to be negotiated. The
      Selling Stockholders do not expect these commissions and discounts to exceed
      what is customary in the types of transactions involved.

     

    The
      Selling Stockholders may from time to time pledge or grant a security interest
      in some or all of the Shares owned by them and, if they default in the
      performance of their secured obligations, the pledgees or secured parties may
      offer and sell shares of Common Stock from time to time under this prospectus,
      or under an amendment to this prospectus under Rule 424(b)(3) or other
      applicable provision of the Securities Act of 1933 amending the list of selling
      stockholders to include the pledgee, transferee or other successors in interest
      as selling stockholders under this prospectus.

     


    
      
        
        

      

      
        47

        
          

        

      

      
        
        

      

    


    


     

    Upon
      the
      Company being notified in writing by a Selling Stockholder that any material
      arrangement has been entered into with a broker-dealer for the sale of Common
      Stock through a block trade, special offering, exchange distribution or
      secondary distribution or a purchase by a broker or dealer, a supplement to
      this
      prospectus will be filed, if required, pursuant to Rule 424(b) under the
      Securities Act, disclosing (i) the name of each such Selling Stockholder and
      of
      the participating broker-dealer(s), (ii) the number of shares involved, (iii)
      the price at which such the shares of Common Stock were sold, (iv)the
      commissions paid or discounts or concessions allowed to such broker-dealer(s),
      where applicable, (v) that such broker-dealer(s) did not conduct any
      investigation to verify the information set out or incorporated by reference
      in
      this prospectus, and (vi) other facts material to the transaction. In addition,
      upon the Company being notified in writing by a Selling Stockholder that a
      donee
      or pledgee intends to sell more than 500 shares of Common Stock, a supplement
      to
      this prospectus will be filed if then required in accordance with applicable
      securities law.

     

    The
      Selling Stockholders also may transfer the shares of Common Stock in other
      circumstances, in which case the transferees, pledgees or other successors
      in
      interest will be the selling beneficial owners for purposes of this
      prospectus.

     

    The
      Selling Stockholders and any broker-dealers or agents that are involved in
      selling the shares may be deemed to be "underwriters" within the meaning of
      the
      Securities Act in connection with such sales. In such event, any commissions
      received by such broker-dealers or agents and any profit on the resale of the
      shares purchased by them may be deemed to be underwriting commissions or
      discounts under the Securities Act. Discounts, concessions, commissions and
      similar selling expenses, if any, that can be attributed to the sale of
      Securities will be paid by the Selling Stockholder and/or the purchasers. Each
      Selling Stockholder has represented and warranted to the Company that it
      acquired the securities subject to this Registration Statement in the ordinary
      course of such Selling Stockholder’s business and, at the time of its purchase
      of such securities such Selling Stockholder had no agreements or understandings,
      directly or indirectly, with any person to distribute any such securities.
      

     

    The
      Company has advised each Selling Stockholder that it may not use shares
      registered on this Registration Statement to cover short sales of Common Stock
      made prior to the date on which this Registration Statement shall have been
      declared effective by the Commission. If a Selling Stockholder uses this
      prospectus for any sale of the Common Stock, it will be subject to the
      prospectus delivery requirements of the Securities Act. The Selling Stockholders
      will be responsible to comply with the applicable provisions of the Securities
      Act and Exchange Act, and the rules and regulations thereunder promulgated,
      including, without limitation, Regulation M, as applicable to such Selling
      Stockholders in connection with resales of their respective shares under this
      Registration Statement.

     

    The
      Company is required to pay all fees and expenses incident to the registration
      of
      the shares, but the Company will not receive any proceeds from the sale of
      the
      Common Stock. The Company has agreed to indemnify the Selling Stockholders
      against certain losses, claims, damages and liabilities, including liabilities
      under the Securities Act. 

     


    
      
        
        

      

      
        48

        
          

        

      

      
        
        

      

    


    Annex
      B

     

    FUSHI
      INTERNATIONAL, INC.

     

    Selling
      Securityholder Notice and Questionnaire

     

    The
      undersigned beneficial owner of common stock (the “Common
      Stock”),
      of
      Fushi International, Inc., a Nevada corporation (the “Company”),
      understands that the Company has filed or intends to file with the Securities
      and Exchange Commission (the “Commission”)
      a
      Registration Statement for the registration and resale of the Registrable
      Securities, in accordance with the terms of the Registration Rights Agreement,
      dated as of October 26, 2007 (the “Registration
      Rights Agreement”),
      among
      the Company and the Investors named therein. A copy of the Registration Rights
      Agreement is available from the Company upon request at the address set forth
      below. All capitalized terms used and not otherwise defined herein shall have
      the meanings ascribed thereto in the Registration Rights Agreement.

     

    The
      undersigned hereby provides the following information to the Company and
      represents and warrants that such information is accurate:

     

    QUESTIONNAIRE


    
      
        	
                1.

              	
                Name.

              	 
	 	 	 
	 	
                (a)

              	
                Full
                  Legal Name of Selling Securityholder

              
	 	 	 
	 	 	 
	 	 	 
	 	
                (b)

              	
                Full
                  Legal Name of Registered Holder (if not the same as (a) above)
                  through
                  which Registrable Securities Listed in Item 3 below are
                  held:

              
	 	 	 
	 	 	 
	 	 	 
	 	
                (c)

              	
                Full
                  Legal Name of Natural Control Person (which means a natural person
                  who
                  directly or indirectly alone or with others has power to vote or
                  dispose
                  of the securities covered by the questionnaire):

              
	 	 	 
	 	 	 
	 	 	 


      

    

     

    2.
      Address for Notices to Selling Securityholder:

     

    
      	 
	 
	 


    

    

      
        	
                Telephone:

              	 
	
                Fax:

              	 
	
                Contact
                  Person:

              	 


      

    

     

    
      
        
        

      

      
        49

        
          

        

      

      
        
        

      

    

     

    3.
      Beneficial Ownership of Registrable Securities:

     

    
      
        
          	 	
                  Type
                    and Principal Amount of Registrable Securities beneficially
                    owned:

                
	 	 
	 	 
	 	 
	 	 


        

      

       

    

    4.
      Broker-Dealer Status:

     

    
      	 	
              (a)

            	
              Are
                you a broker-dealer?

            


    

     

    Yes
o  
No
o

     

    
      	 	
              Note:

            	
              If
                yes, the Commission’s staff has indicated that you should be identified as
                an underwriter in the Registration
                Statement.

            


    

     

    
      	 	
              (b)

            	
              Are
                you an affiliate of a
                broker-dealer?

            


    

     

    Yes
o  
No
o

     

    
      	 	
              (c)

            	
              If
                you are an affiliate of a broker-dealer, do you certify that you
                bought
                the Registrable Securities in the ordinary course of business, and
                at the
                time of the purchase of the Registrable Securities to be resold,
                you had
                no agreements or understandings, directly or indirectly, with any
                person
                to distribute the Registrable
                Securities?

            


    

     

    Yes
o                    
      No
      o

     

    
      	 	
              Note:

            	
              If
                no, the Commission’s staff has indicated that you should be identified as
                an underwriter in the Registration
                Statement.

            


    

     

    5.
      Beneficial Ownership of Other Securities of the Company Owned by the Selling
      Securityholder.

     

    Except
      as set forth below in this Item 5, the undersigned is not the beneficial or
      registered owner of any securities of the Company other than the Registrable
      Securities listed above in Item 3.

     

    
      
        
          	 	 	
                  Type
                    and Amount of Other Securities beneficially owned by the
                    Selling Securityholder:

                
	 	 	 
	 	 	 
	 	 	 


        

      

       

    


    
      
        
        

      

      
        50

        
          

        

      

      
        
        

      

    


     

    6.
      Relationships with the Company:

     

    Except
      as set forth below, neither the undersigned nor any of its affiliates, officers,
      directors or principal equity holders (owners of 5% of more of the equity
      securities of the undersigned) has held any position or office or has had any
      other material relationship with the Company (or its predecessors or affiliates)
      during the past three years.

     

    State
      any
      exceptions here:

    
       

      
        
          
            	 	 	 
	 	 	 


          

        

         

      

    

    7.
      The
      Company has advised each Selling Stockholder that it may not use shares
      registered on the Registration Statement to cover short sales of Common Stock
      made prior to the date on which the Registration Statement is declared effective
      by the Commission, in accordance with 1997 Securities and Exchange Commission
      Manual of Publicly Available Telephone Interpretations Section A.65. If a
      Selling Stockholder uses the prospectus for any sale of the Common Stock, it
      will be subject to the prospectus delivery requirements of the Securities Act.
      The Selling Stockholders will be responsible to comply with the applicable
      provisions of the Securities Act and Exchange Act, and the rules and regulations
      thereunder promulgated, including, without limitation, Regulation M, as
      applicable to such Selling Stockholders in connection with resales of their
      respective shares under the Registration Statement.

     

    The
      undersigned agrees to promptly notify the Company of any inaccuracies or changes
      in the information provided herein that may occur subsequent to the date hereof
      and prior to the Effective Date for the Registration Statement.

     

    By
      signing below, the undersigned consents to the disclosure of the information
      contained herein in its answers to Items 1 through 6 and the inclusion of such
      information in the Registration Statement and the related prospectus. The
      undersigned understands that such information will be relied upon by the Company
      in connection with the preparation or amendment of the Registration Statement
      and the related prospectus.

     

    IN
      WITNESS WHEREOF the undersigned, by authority duly given, has caused this Notice
      and Questionnaire to be executed and delivered either in person or by its duly
      authorized agent.

     

    
      	 	 	 
	Dated:
              	
              Beneficial
                Owner: 

            
	
              
                

              

            	 
 	
              

            
	 	By:  	 
	 	
              
Name:
	 	
              Title:

            


    

     

    
      
        
        

      

      
        51

        
          

        

      

      
        
        

      

    

    
       

    

    
      
         

      

    

    


    PLEASE
      FAX A COPY OF THE COMPLETED AND EXECUTED NOTICE AND QUESTIONNAIRE, AND RETURN
      THE ORIGINAL BY OVERNIGHT MAIL, TO:

    


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        52