Tung Kong 4
4 · China Direct Industries, Inc. · Filed May 24, 2011
Insider Transaction Report
Form 4
Tung Kong
Director
Transactions
- Gift
Common Stock
2011-05-16−1,219,820→ 1,219,820 total - Award
Common Stock
2011-05-06$1.25/sh+2,439,640$3,049,550→ 2,439,640 total
Footnotes (2)
- [F1]Acquired as consideration for the sale of a 50% interest in Beauty East International Ltd. by the reporting person to CDI China, Inc., a wholly owned subsidiary of China Direct Industries, Inc. ("CDII") pursuant to a Stock Transfer Agreement dated May 6, 2011 (the " Agreement") for a price of RMB 19,829,700.25 (approximately $3,049,553.50). 1,219,820 shares are issuable within 10 days of the execution of the Agreement and 1,219,820 shares within 10 days after the completion of the transfer of the 100% ownership interest in Beauty East (includes the 50% ownership held by another selling shareholder) to CDI China and completion of certain conditions set forth in Sections 4.2 and 4.3 of the Agreement which is filed as an Exhibit to the issuers Form 8-K filed with the SEC on May 12, 2011.
- [F2]Gift to a family member who does not share the reporting person's household. The reporting person disclaims beneficial ownership of the shares held by his family member, and this report should not be deemed an admission that the reporting person is the beneficial owner of his family member's shares for purposes of Section 16 or for any other purpose.