Document:

LIHUA INTERNATIONAL, INC.

 

INDEPENDENT DIRECTOR AGREEMENT

 

This INDEPENDENT DIRECTOR AGREEMENT (the
“Agreement”) is made and entered into as of this 30th day of May 2013, effective as of April 14, 2013 (the “Effective
Date”), by and between Lihua International, Inc., a Delaware corporation whose shares are publicly traded (the “Company”),
and Jonathan P. Serbin, a citizen of the United States.

 

WHEREAS, the Company desires to re-engage
the Independent Director, and the Independent Director desires to serve, as a non-employee director of the Company, subject to
the terms and conditions contained in this Agreement.

 

NOW, THEREFORE, in consideration of the mutual
promises and covenants contained herein, the receipt of which is hereby acknowledged, the Company and the Independent Director,
intending to be legally bound, hereby agree as follows:

 

1.           DEFINITIONS.

 

(a)          “Corporate
Status” describes the capacity of the Independent Director with respect to the Company and the services performed by the
Independent Director in that capacity.

 

(b)          “Entity”
shall mean any corporation, partnership, limited liability company, joint venture, trust, foundation, association, organization
or other legal entity.

 

(c)          “Proceeding”
shall mean any threatened, pending or completed claim, action, suit, arbitration, alternate dispute resolution process, investigation,
administrative hearing, appeal, or any other proceeding, whether civil, criminal, administrative or investigative, whether formal
or informal, including a proceeding initiated by the Independent Director pursuant to Section 12 of this Agreement to enforce the
Independent Director’s rights hereunder.

 

(d)          “Expenses”
shall mean all reasonable fees, costs and expenses, reasonably incurred in connection with any Proceeding, including, without limitation,
attorneys’ fees, disbursements and retainers, fees and disbursements of expert witnesses, private investigators, professional
advisors (including, without limitation, accountants and investment bankers), court costs, transcript costs, fees of experts, travel
expenses, duplicating, printing and binding costs, telephone and fax transmission charges, postage, delivery services, secretarial
services, and other disbursements and expenses.

 

(e)          “Liabilities”
shall mean judgments, damages, liabilities, losses, penalties, excise taxes, fines and amounts paid in settlement.

 

(f)          “Parent”
shall mean any corporation or other entity (other than the Company) in any unbroken chain of corporations or other entities ending
with the Company, if each of the corporations or entities, other than the Company, owns stock or other interests possessing 50%
or more of the economic interest or the total combined voting power of all classes of stock or other interests in one of the other
corporations or entities in the chain.

 

    	 

    	 

    

  

(g)          “Subsidiary”
shall mean any corporation or other entity (other than the Company) in any unbroken chain of corporations or other entities beginning
with the Company, if each of the corporations or entities, other than the last corporation or entity in the unbroken chain, owns
stock or other interests possessing 50% or more of the economic interest or the total combined voting power of all classes of stock
or other interests in one of the other corporations or entities in the chain.

 

2.           SERVICES
OF INDEPENDENT DIRECTOR. While this Agreement is in effect, the Independent Director shall perform duties as an independent director
and/or a member of the committees of the Board, be compensated for such and be reimbursed expenses in accordance with the Schedule
A attached to this Agreement, subject to the following.

 

(a)          The
Independent Director will perform services as is consistent with Independent Director’s position with the Company, as required
and authorized by the By-Laws and Certificate of Incorporation of the Company, and in accordance with high professional and ethical
standards and all applicable laws and rules and regulations pertaining to the Independent Director’s performance hereunder,
including without limitation, laws, rules and regulations relating to a public company.

 

(b)          The
Independent Director is solely responsible for taxes arising out of any compensation paid by the Company to the Independent Director
under this Agreement, and the Independent Director understands that he/she will be issued a U.S. Treasury form 1099 for any compensation
paid to him/her by the Company. The Independent Director acknowledges and agrees that because he is not an employee of the Company
the Company will not withhold any amounts for taxes from any of his payments under the Agreement.

 

(c)          The
Company may offset any and all monies payable to the Independent Director to the extent of any monies owing to the Company from
the Independent Director.

 

(d)          The
rules and regulations of the Company notified to the Independent Director, from time to time, apply to the Independent Director.
Such rules and regulations are subject to change by the Board in its sole discretion. Notwithstanding the foregoing, in the event
of any conflict or inconsistency between the terms and conditions of this Agreement and rules and regulations of the Company, the
terms of this Agreement control.

 

3.           REQUIREMENTS
OF INDEPENDENT DIRECTOR. During the term of the Independent Director’s services to the Company hereunder, Independent Director
shall observe all applicable laws and regulations relating to independent directors of a public company as promulgated from to
time, and shall not: (1) be an employee of the Company or any Parent or Subsidiary; (2) accept, directly or indirectly, any consulting,
advisory, or other compensatory fee from the Company other than as a director and/or a member of a committee of the Board; (3)
be an affiliated person of the Company or any Parent or Subsidiary, as the term “affiliate” is defined in 17 CFR 240.10A-3(e)(1),
other than in his capacity as a director and/or a member of a committee of the Board; (4) possess an interest in any transaction
with the Company or any Parent or Subsidiary, for which disclosure would be required pursuant to 17 CFR 229.404(a), other than
in his capacity as a director and/or a member of a committee of the Board committees; (5) be engaged in a business relationship
with the Company or any Parent or Subsidiary, for which disclosure would be required pursuant to 17 CFR 229.404(b), except that
the required beneficial interest therein shall be modified to be 5% hereby.

 

4.           REPORT
OBLIGATION. While this Agreement is in effect, the Independent Director shall immediately report to the Company in the event: (1)
the Independent Director knows or has reason to know or should have known that any of the requirements specified in Section 3 hereof
is not satisfied or is not going to be satisfied; and (2) the Independent Director simultaneously serves on an audit committee
of any other public company.

 

    	2

    	 

    

  

5.           TERM
AND TERMINATION. The term of this Agreement shall be for one (1) year from the Effective Date, unless terminated as provided for
in this Section 5 (the “Term”). This Agreement and the Independent Director’s services hereunder shall terminate
upon the earlier of the following:

 

(a)          Removal
of the Independent Director as a director of the Company, upon proper Board or stockholder action in accordance with the By-Laws
and Certificate of Incorporation of the Company and applicable law;

 

(b)          Resignation
of the Independent Director as a director of the Company upon written notice to the Board of Directors of the Company; or

 

(c)          Termination
of this Agreement by the Company, in the event any of the requirements specified in Section 3 hereof is not satisfied, as determined
by the Company in its sole discretion.

 

6.           LIMITATION
OF LIABILITY. In no event shall the Independent Director be individually liable to the Company or its shareholders for any damages
for breach of fiduciary duty as an independent director of the Company, unless the Independent Director’s act or failure
to act involves intentional misconduct, fraud or a knowing violation of law.

 

7.           AGREEMENT
OF INDEMNITY. The Company agrees to indemnify the Independent Director as follows:

 

(a)          Subject
to the exceptions contained in Section 8(a) below, if the Independent Director was or is a party or is threatened to be made a
party to any Proceeding (other than an action by or in the right of the Company) by reason of the Independent Director’s
Corporate Status, the Independent Director shall be indemnified by the Company against all Expenses and Liabilities incurred or
paid by the Independent Director in connection with such Proceeding (referred to herein as “Indemnifiable Expenses”
and “Indemnifiable Liabilities,” respectively, and collectively as “Indemnifiable Amounts”).

 

(b)          Subject
to the exceptions contained in Section 8(b) below, if the Independent Director was or is a party or is threatened to be made a
party to any Proceeding by or in the right of the Company, to procure a judgment in its favor by reason of the Independent Director’s
Corporate Status, the Independent Director shall be indemnified by the Company against all Indemnifiable Amounts.

 

(c)          For
purposes of this Agreement, the Independent Director shall be deemed to have acted in good faith in conducting the Company’s
affairs as an independent director of the Company and/or a member of a committee of the Board of the Company, if the Independent
Director: (i) exercised or used the same degree of diligence, care, and skill as an ordinarily prudent man would have exercised
or used under the circumstances in the conduct of his own affairs; or (ii) took, or omitted to take, an action in reliance upon
advise of counsels or other professional advisors for the Company, or upon statements made or information furnished by other directors,
officers or employees of the Company, or upon a financial statement of the Company provided by a person in charge of its accounts
or certified by a public accountant or a firm of public accountants, which the Independent Director had reasonable grounds to believe
to be true.

 

    	3

    	 

    

 

(d)          In
the event the Independent Director intends to engage separate legal counsel, the Independent Director shall provide at least three
business days’ prior written notice to the Company identifying therein: (i) the name, address, telephone number, and hourly
rate(s) of the attorney(s) the Independent Director intends to engage; (ii) the Proceeding in which the Independent Director has
been named as a party or is threatened to be named as a party; and (iii) the basis for the Independent Director’s
reasonable belief that he has been named or is threatened to be named as a party to a Proceeding, including any supporting documentation.
The Company may, in its discretion, decline to pay any Indemnifiable Amounts incurred where the Independent Director has failed
to comply with the notice requirements set forth in this subparagraph (d).

 

8.           EXCEPTIONS
TO INDEMNIFICATION. Director shall be entitled to indemnification under Sections 7(a) and 7(b) above in all circumstances other
than the following:

 

(a)          If
indemnification is requested under Section 7(a) and it has been adjudicated finally by a court or arbitral body of competent jurisdiction
that, in connection with the subject of the Proceeding out of which the claim for indemnification has arisen, (i) the Independent
Director failed to act in good faith and in a manner the Independent Director reasonably believed to be in or not opposed to the
best interests of the Company, (ii) the Independent Director had reasonable cause to believe that the Independent Director’s
conduct was unlawful, or (iii) the Independent Director’s conduct constituted willful misconduct, fraud or knowing violation
of law, then the Independent Director shall not be entitled to payment of Indemnifiable Amounts hereunder.

 

(b)          If
indemnification is requested under Section 7(b) and

 

(i)          it
has been adjudicated finally by a court or arbitral body of competent jurisdiction that, in connection with the subject of the
Proceeding out of which the claim for indemnification has arisen, the Independent Director failed to act in good faith and in a
manner the Independent Director reasonably believed to be in or not opposed to the best interests of the Company, including without
limitation, the breach of Section 4 hereof by the Independent Director, the Independent Director shall not be entitled to payment
of Indemnifiable Amounts hereunder; or

 

(ii)         it
has been adjudicated finally by a court or arbitral body of competent jurisdiction that the Independent Director is liable to the
Company with respect to any claim, issue or matter involved in the Proceeding out of which the claim for indemnification has arisen,
including, without limitation, a claim that the Independent Director received an improper benefit or improperly took advantage
of a corporate opportunity, the Independent Director shall not be entitled to payment of Indemnifiable Amounts hereunder with respect
to such claim, issue or matter.

 

9.           WHOLLY
OR PARTLY SUCCESSFUL. Notwithstanding any other provision of this Agreement, and without limiting any such provision, to the extent
that the Independent Director is, by reason of the Independent Director’s Corporate Status, a party to and is successful,
on the merits or otherwise, in any Proceeding, the Independent Director shall be indemnified in connection therewith. If the Independent
Director is not wholly successful in such Proceeding but is successful, on the merits or otherwise, as to one or more but less
than all claims, issues or matters in such Proceeding, the Company shall indemnify the Independent Director against those Expenses
reasonably incurred by the Independent Director or on the Independent Director’s behalf in connection with each successfully
resolved claim, issue or matter. For purposes of this section, the termination of any claim, issue or matter in such a Proceeding
by dismissal, with or without prejudice, shall be deemed to be a successful result as to such claim, issue or matter.

 

    	4

    	 

    

  

10.         ADVANCES
AND INTERIM EXPENSES. Within ten (10) business days of the Independent Director’s written request for indemnification, the
Company shall pay to the Independent Director all Indemnifiable Expenses incurred by the Independent Director in connection with
any Proceeding, including a Proceeding by or in the right of the Company, in advance of the final disposition of such Proceeding,
if the Independent Director furnishes the Company with a written undertaking, to the satisfaction of the Company, to repay the
amount of such Indemnifiable Expenses advanced to the Independent Director in the event it is finally determined by a court or
arbitral body of competent jurisdiction that the Independent Director is not entitled under this Agreement to indemnification with
respect to such Indemnifiable Expenses.

 

11.         PROCEDURE
FOR PAYMENT OF INDEMNIFIABLE AMOUNTS. The Independent Director shall submit to the Company a written request specifying the Indemnifiable
Amounts, for which the Independent Director seeks payment under Section 7 hereof, and the Proceeding of which the Independent Director
has previously notified the Company. At the request of the Company, the Independent Director shall furnish such documentation and
information as are reasonably available to the Independent Director and necessary to establish that the Independent Director is
entitled to indemnification hereunder. The Company shall pay such Indemnifiable Amounts within ten (10) days of receipt of all
required documents.

 

12.         REMEDIES
OF INDEPENDENT DIRECTOR.

 

(a)          RIGHT
TO PETITION COURT. In the event that the Independent Director makes a request for payment of Indemnifiable Amounts under Sections
7, 9-11 above, or seeks payment of insurance under Section 14 below, and such payment or advancement is not made in a timely manner:
(i) by the Company pursuant to the terms of this Agreement, or (ii) by any insurer pursuant to the terms of its insurance policy,
then the Independent Director may petition the appropriate judicial authority to enforce the Company’s or any insurer’s
obligations.

 

(b)          BURDEN
OF PROOF. In any judicial proceeding brought under Section 12 (a) above, the Company shall have the burden of proving that the
Independent Director is not entitled to payment of Indemnifiable Amounts hereunder.

 

(c)          EXPENSES.
The Company agrees to reimburse the Independent Director in full for any Expenses incurred by the Independent Director in connection
with investigating, preparing for, litigating, defending or settling any action brought by the Independent Director under Section
12 (a) above, or in connection with any claim or counterclaim brought by the Company in connection therewith.

 

(d)          VALIDITY
OF AGREEMENT. The Company shall be precluded from asserting in any Proceeding, including, without limitation, an action under Section
12(a) above, that the provisions of this Agreement are not valid, binding and enforceable or that there is insufficient consideration
for this Agreement and shall stipulate in court that the Company is bound by all the provisions of this Agreement.

 

(e)          FAILURE
TO ACT NOT A DEFENSE. The failure of the Company (including its Board of Directors or any committee thereof, independent legal
counsel, or stockholders) to make a determination concerning the permissibility of the payment of Indemnifiable Amounts or the
advancement of Indemnifiable Expenses under this Agreement shall not be a defense in any action brought under Section 12(a) above.

 

    	5

    	 

    

  

13.         PROCEEDINGS
AGAINST COMPANY. Except as otherwise provided in this Agreement, the Independent Director shall not be entitled to payment of Indemnifiable
Amounts or advancement of Indemnifiable Expenses with respect to any Proceeding brought by the Independent Director against the
Company, any Entity which the Company controls, any director or officer thereof, or any third party, unless the Company has consented
to the initiation of such Proceeding. This section shall not apply to counterclaims or affirmative defenses asserted by the Independent
Director in an action brought against the Independent Director.

 

14.         INSURANCE.
The Company shall obtain and maintain a policy or policies of director and officer liability insurance, with an aggregate limit
of liability of not less than $5,000,000, providing the Independent Director with coverage for claims against the Independent Director
by reason of his Corporate Status, in accordance with the terms of said insurance policy or policies (“D&O Insurance”);
provided that the Company shall not be liable under this Agreement to make any payment in connection with any claim made against
the Independent Director to the extent that the Independent Director has otherwise received payment under any insurance policy
of the amounts otherwise indemnifiable hereunder. The Company shall take any actions it deems reasonably necessary or desirable
to cause the D&O insurer(s) to pay, on behalf of the Independent Director, all amounts payable in accordance with the terms
of the D&O Insurance.

 

15.         SUBROGATION.
In the event of any payment of Indemnifiable Amounts under this Agreement or the D&O Insurance, the Company or its Insurance
Carrier, as the case may be, shall be subrogated to the extent of such payment to all of the rights of contribution or recovery
of the Independent Director against other persons, and the Independent Director shall take, at the request of the Company, all
reasonable action necessary to secure such rights, including the execution of such documents as are necessary to enable the Company
to bring suit to enforce such rights.

 

16.         AUTHORITY.
Each party has all necessary power and authority to enter into, and be bound by the terms of, this Agreement, and the execution,
delivery and performance of the undertakings contemplated by this Agreement have been duly authorized by each party hereto:

 

17.         SUCCESSORS
AND ASSIGNMENT. This Agreement shall (a) be binding upon and inure to the benefit of all successors and assigns of the Company
(including any transferee of all or a substantial portion of the business, stock and/or assets of the Company and any direct or
indirect successor by merger or consolidation or otherwise by operation of law), and (b) be binding on and shall inure to the benefit
of the heirs, personal representatives, executors and administrators of the Independent Director. The Independent Director has
no power to assign this Agreement or any rights and obligations hereunder.

 

18.         CHANGE
IN LAW. To the extent that a change in applicable law (whether by statute or judicial decision) shall mandate broader or narrower
indemnification than is provided hereunder, the Independent Director shall be subject to such broader or narrower indemnification
and this Agreement shall be deemed to be amended to such extent.

 

19.         SEVERABILITY.
Whenever possible, each provision of this Agreement shall be interpreted in such a manner as to be effective and valid under applicable
law, but if any provision of this Agreement, or any clause thereof, shall be determined by a court of competent jurisdiction to
be illegal, invalid or unenforceable, in whole or in part, such provision or clause shall be limited or modified in its application
to the minimum extent necessary to make such provision or clause valid, legal and enforceable, and the remaining provisions and
clauses of this Agreement shall remain fully enforceable and binding on the parties.

 

    	6

    	 

    

  

20.         MODIFICATIONS
AND WAIVER. Except as provided in Section 18 hereof with respect to changes in applicable law which broaden or narrow the right
of the Independent Director to be indemnified by the Company, no supplement, modification or amendment of this Agreement shall
be binding unless executed in writing by each of the parties hereto. No delay in exercise or non-exercise by the Company of any
right under this Agreement shall operate as a current or future waiver by it as to its same or different rights under this Agreement
or otherwise.

 

21.         NOTICES.
All notices, requests, demands and other communications hereunder shall be in writing and shall be deemed to have been duly given
(a) when delivered by hand, (b) when transmitted by facsimile and receipt is acknowledged, or (c) if mailed by certified or registered
mail with postage prepaid, on the third business day after the date en which it is so mailed:

 

If to the Company, to: Jinhua Zhu, CEO,
Lihua International, Houxiang Five Star Industry District, Danyang City, Jiangsu Province, PR China 212312, or to such other address
as may have been furnished in the same manner by any party to the others.

 

22.         GOVERNING
LAW. This Agreement shall be governed by and construed and enforced under the laws of the State of Delaware.

 

23.         CONSENT
TO JURISDICTION. The parties hereby consent to the jurisdiction of the courts having jurisdiction over matters arising in Delaware
for any proceeding arising out of or relating to this Agreement. The parties agree that in any such proceeding, each party shall
waive, if applicable, inconvenience of forum and right to a jury.

 

24.         AGREEMENT
GOVERNS. This Agreement is to be deemed consistent wherever possible with relevant provisions of the By-Laws and Certificate of
Incorporation of the Company; however, in the event of a conflict between this Agreement and such provisions, the provisions of
this Agreement shall control.

 

25.         INDEPENDENT
CONTRACTOR. The parties understand, acknowledge and agree that the Independent Director’s relationship with the Company is
that of an independent contractor and nothing in this Agreement is intended to or should be construed to create a relationship
other than that of independent contractor. Nothing in this Agreement shall be construed as a contract of employment/engagement
between the Independent Director and the Company or as a commitment on the part of the Company to retain the Independent Director
in any capacity, for any period of time or under any specific terms or conditions, or to continue the Independent Director’s
service to the Company beyond any period.

 

26.         ENTIRE
AGREEMENT. This Agreement constitutes the entire agreement between the Company and the Independent Director with respect to the
subject matter hereof, and supersedes all prior understandings and agreements with respect to such subject matter.

 

    	7

    	 

    

 

IN WITNESS WHEREOF, the parties hereto have
executed this Independent Director Agreement as of the day and year first above written.

 

	AGREED	 	AGREED
	 	 	 
	LIHUA INTERNATIONAL, INC.	 	INDEPENDENT DIRECTOR
	 	 	 
	/s/ Jianhua Zhu	 	/s/ Jonathan P. Serbin
	Name: 	Jianhua Zhu	 	Name: Jonathan P. Serbin
	Title:	Chairman and CEO	 	 

  

    	8

    	 

    

 

SCHEDULE A

 

I.     COMPENSATION:

 

A. Fees. For all services rendered
by the Independent Director pursuant to this Agreement, both during and outside of normal working hours, including but not limited
to, attending all required meetings of the Board or applicable committees thereof, executive sessions of the independent directors,
reviewing filing reports and other corporate documents as requested by the Company, providing comments and opinions as to business
matters as requested by the Company, the Company agrees to pay to the Independent Director a fee in cash of Four Thousand Dollars
($4,000) per month during the Term (the “Base Fee”), so long as the Independent Director is serving on the Board of
Directors. The Base Fee shall be paid in cash to the Independent Director on a quarterly basis in equal installments on the last
day of each calendar quarter.

 

B. Stock Option. Upon execution
of this Agreement the Independent Director shall be granted a 10-year option to purchase Twenty Thousand (20,000) shares of common
stock of the Company, with an exercise price equal to the fair market value of a share of the Company’s common stock on the
date of the grant of the option. Such option shall vest in equal installments on July 14, 2013, October
14, 2013, January 14, 2014 and April 14, 2014, as long as the Independent Director is serving as a member of the Board of
Directors at each such time. Such award shall be made pursuant to the Company’s 2009 Omnibus Securities and Incentive Plan.
The Independent Director’s rights in respect to any grant shall be determined solely by the Compensation Committee of the
Company and are subject to execution by Independent Director of any applicable agreements as established and requested by the Company
pursuant to the 2009 Omnibus Securities and Incentive Plan.

 

C. Expenses. During the Term the
Company shall promptly reimburse the Independent Director for all expenses incurred by him/her in connection with attending (a)
all meetings of the Board or applicable committees thereof, (b) executive sessions of the independent directors, (c) stockholder
meetings, as a director or a member of any committee of the Board, which are approved by the Company in advance and (d) subject
to prior Company approval, other Company-related travel. The Company will promptly reimburse the Independent Director for hotel
accommodation expenses actually incurred in connection with any such meetings the Independent Director attends, up to $350 per
night for stays of up to five nights per meeting. The Company will only reimburse the Independent Director for economy class airplane
tickets purchased for Company business, provided, however, that if the total flight time exceeds six hours, the Company will reimburse
the Independent Director for business class tickets. The amount of such expenses eligible for reimbursement by the Company during
a calendar year shall not affect such expenses eligible for reimbursement by the Company in any other calendar year, and the reimbursement
of any such eligible expenses shall be made on or before the last day of the calendar year next following the calendar year in
which the expense was incurred. Additionally, the Company will reimburse the Independent Director up to $3,000 during the Term,
for the actual costs incurred to travel to and attend bona fide director education seminars that the Independent Director may,
in his discretion, select.

 

    	9

    	 

    

 

D. No Other Benefits Or Compensation.
The Independent Director acknowledges and agrees that he is not granted and is not entitled to any other benefits or compensation
from the Company for the services provided under this Agreement except expressly provided for in this Schedule A.

  

	AGREED	 	AGREED
	 	 	 
	LIHUA INTERNATIONAL, INC.	 	INDEPENDENT DIRECTOR
	 	 	 
	/s/ Jianhua Zhu	 	/s/ Jonathan P. Serbin
	Name: 	Jianhua Zhu	 	Name: Jonathan P. Serbin
	Title:	Chairman and CEO	 	 

 

    	10LIHUA INTERNATIONAL, INC.

 

INDEPENDENT DIRECTOR AGREEMENT

 

This INDEPENDENT DIRECTOR AGREEMENT (the
“Agreement”) is made and entered into as of this 30th day of May 2013, effective as of April 14, 2013 (the “Effective
Date”), by and between Lihua International, Inc., a Delaware corporation whose shares are publicly traded (the “Company”),
and Siu Ki Lau, a citizen of the United Kingdom, with a permanent residence.

 

WHEREAS, the Company desires to re-engage
the Independent Director, and the Independent Director desires to serve, as a non-employee director of the Company, subject to
the terms and conditions contained in this Agreement.

 

NOW, THEREFORE, in consideration of the mutual
promises and covenants contained herein, the receipt of which is hereby acknowledged, the Company and the Independent Director,
intending to be legally bound, hereby agree as follows:

 

1.           DEFINITIONS.

 

(a)          “Corporate
Status” describes the capacity of the Independent Director with respect to the Company and the services performed by the
Independent Director in that capacity.

 

(b)          “Entity”
shall mean any corporation, partnership, limited liability company, joint venture, trust, foundation, association, organization
or other legal entity.

 

(c)          “Proceeding”
shall mean any threatened, pending or completed claim, action, suit, arbitration, alternate dispute resolution process, investigation,
administrative hearing, appeal, or any other proceeding, whether civil, criminal, administrative or investigative, whether formal
or informal, including a proceeding initiated by the Independent Director pursuant to Section 12 of this Agreement to enforce the
Independent Director’s rights hereunder.

 

(d)          “Expenses”
shall mean all reasonable fees, costs and expenses, reasonably incurred in connection with any Proceeding, including, without limitation,
attorneys’ fees, disbursements and retainers, fees and disbursements of expert witnesses, private investigators, professional
advisors (including, without limitation, accountants and investment bankers), court costs, transcript costs, fees of experts, travel
expenses, duplicating, printing and binding costs, telephone and fax transmission charges, postage, delivery services, secretarial
services, and other disbursements and expenses.

 

(e)          “Liabilities”
shall mean judgments, damages, liabilities, losses, penalties, excise taxes, fines and amounts paid in settlement.

 

(f)          “Parent”
shall mean any corporation or other entity (other than the Company) in any unbroken chain of corporations or other entities ending
with the Company, if each of the corporations or entities, other than the Company, owns stock or other interests possessing 50%
or more of the economic interest or the total combined voting power of all classes of stock or other interests in one of the other
corporations or entities in the chain.

 

    	 

    	 

    

  

(g)          “Subsidiary”
shall mean any corporation or other entity (other than the Company) in any unbroken chain of corporations or other entities beginning
with the Company, if each of the corporations or entities, other than the last corporation or entity in the unbroken chain, owns
stock or other interests possessing 50% or more of the economic interest or the total combined voting power of all classes of stock
or other interests in one of the other corporations or entities in the chain.

 

2.           SERVICES
OF INDEPENDENT DIRECTOR. While this Agreement is in effect, the Independent Director shall perform duties as an independent director
and/or a member of the committees of the Board, be compensated for such and be reimbursed expenses in accordance with the Schedule
A attached to this Agreement, subject to the following.

 

(a)          The
Independent Director will perform services as is consistent with Independent Director’s position with the Company, as required
and authorized by the By-Laws and Certificate of Incorporation of the Company, and in accordance with high professional and ethical
standards and all applicable laws and rules and regulations pertaining to the Independent Director’s performance hereunder,
including without limitation, laws, rules and regulations relating to a public company.

 

(b)          The
Independent Director is solely responsible for taxes arising out of any compensation paid by the Company to the Independent Director
under this Agreement, and the Independent Director understands that he/she will be issued a U.S. Treasury form 1099 for any compensation
paid to him/her by the Company. The Independent Director acknowledges and agrees that because he is not an employee of the Company
the Company will not withhold any amounts for taxes from any of his payments under the Agreement.

 

(c)          The
Company may offset any and all monies payable to the Independent Director to the extent of any monies owing to the Company from
the Independent Director.

 

(d)          The
rules and regulations of the Company notified to the Independent Director, from time to time, apply to the Independent Director.
Such rules and regulations are subject to change by the Board in its sole discretion. Notwithstanding the foregoing, in the event
of any conflict or inconsistency between the terms and conditions of this Agreement and rules and regulations of the Company, the
terms of this Agreement control.

 

3.           REQUIREMENTS
OF INDEPENDENT DIRECTOR. During the term of the Independent Director’s services to the Company hereunder, Independent Director
shall observe all applicable laws and regulations relating to independent directors of a public company as promulgated from to
time, and shall not: (1) be an employee of the Company or any Parent or Subsidiary; (2) accept, directly or indirectly, any consulting,
advisory, or other compensatory fee from the Company other than as a director and/or a member of a committee of the Board; (3)
be an affiliated person of the Company or any Parent or Subsidiary, as the term “affiliate” is defined in 17 CFR 240.10A-3(e)(1),
other than in his capacity as a director and/or a member of a committee of the Board; (4) possess an interest in any transaction
with the Company or any Parent or Subsidiary, for which disclosure would be required pursuant to 17 CFR 229.404(a), other than
in his capacity as a director and/or a member of a committee of the Board committees; (5) be engaged in a business relationship
with the Company or any Parent or Subsidiary, for which disclosure would be required pursuant to 17 CFR 229.404(b), except that
the required beneficial interest therein shall be modified to be 5% hereby.

 

4.           REPORT
OBLIGATION. While this Agreement is in effect, the Independent Director shall immediately report to the Company in the event: (1)
the Independent Director knows or has reason to know or should have known that any of the requirements specified in Section 3 hereof
is not satisfied or is not going to be satisfied; and (2) the Independent Director simultaneously serves on an audit committee
of any other public company.

 

    	2

    	 

    

  

5.           TERM
AND TERMINATION. The term of this Agreement shall be for one (1) year from the Effective Date, unless terminated as provided for
in this Section 5 (the “Term”). This Agreement and the Independent Director’s services hereunder shall terminate
upon the earlier of the following:

 

(a)          Removal
of the Independent Director as a director of the Company, upon proper Board or stockholder action in accordance with the By-Laws
and Certificate of Incorporation of the Company and applicable law;

 

(b)          Resignation
of the Independent Director as a director of the Company upon written notice to the Board of Directors of the Company; or

 

(c)          Termination
of this Agreement by the Company, in the event any of the requirements specified in Section 3 hereof is not satisfied, as determined
by the Company in its sole discretion.

 

6.           LIMITATION
OF LIABILITY. In no event shall the Independent Director be individually liable to the Company or its shareholders for any damages
for breach of fiduciary duty as an independent director of the Company, unless the Independent Director’s act or failure
to act involves intentional misconduct, fraud or a knowing violation of law.

 

7.           AGREEMENT
OF INDEMNITY. The Company agrees to indemnify the Independent Director as follows:

 

(a)          Subject
to the exceptions contained in Section 8(a) below, if the Independent Director was or is a party or is threatened to be made a
party to any Proceeding (other than an action by or in the right of the Company) by reason of the Independent Director’s
Corporate Status, the Independent Director shall be indemnified by the Company against all Expenses and Liabilities incurred or
paid by the Independent Director in connection with such Proceeding (referred to herein as “Indemnifiable Expenses”
and “Indemnifiable Liabilities,” respectively, and collectively as “Indemnifiable Amounts”).

 

(b)          Subject
to the exceptions contained in Section 8(b) below, if the Independent Director was or is a party or is threatened to be made a
party to any Proceeding by or in the right of the Company, to procure a judgment in its favor by reason of the Independent Director’s
Corporate Status, the Independent Director shall be indemnified by the Company against all Indemnifiable Amounts.

 

(c)          For
purposes of this Agreement, the Independent Director shall be deemed to have acted in good faith in conducting the Company’s
affairs as an independent director of the Company and/or a member of a committee of the Board of the Company, if the Independent
Director: (i) exercised or used the same degree of diligence, care, and skill as an ordinarily prudent man would have exercised
or used under the circumstances in the conduct of his own affairs; or (ii) took, or omitted to take, an action in reliance upon
advise of counsels or other professional advisors for the Company, or upon statements made or information furnished by other directors,
officers or employees of the Company, or upon a financial statement of the Company provided by a person in charge of its accounts
or certified by a public accountant or a firm of public accountants, which the Independent Director had reasonable grounds to believe
to be true.

 

    	3

    	 

    

 

(d)          In
the event the Independent Director intends to engage separate legal counsel, the Independent Director shall provide at least three
business days’ prior written notice to the Company identifying therein: (i) the name, address, telephone number, and hourly
rate(s) of the attorney(s) the Independent Director intends to engage; (ii) the Proceeding in which the Independent Director has
been named as a party or is threatened to be named as a party;
and (iii) the basis for the Independent Director’s reasonable belief that he has been named or is threatened to be named
as a party to a Proceeding, including any supporting documentation. The Company may, in its discretion, decline to pay any Indemnifiable
Amounts incurred where the Independent Director has failed to comply with the notice requirements set forth in this subparagraph
(d).

 

8.           EXCEPTIONS
TO INDEMNIFICATION. Director shall be entitled to indemnification under Sections 7(a) and 7(b) above in all circumstances other
than the following:

 

(a)          If
indemnification is requested under Section 7(a) and it has been adjudicated finally by a court or arbitral body of competent jurisdiction
that, in connection with the subject of the Proceeding out of which the claim for indemnification has arisen, (i) the Independent
Director failed to act in good faith and in a manner the Independent Director reasonably believed to be in or not opposed to the
best interests of the Company, (ii) the Independent Director had reasonable cause to believe that the Independent Director’s
conduct was unlawful, or (iii) the Independent Director’s conduct constituted willful misconduct, fraud or knowing violation
of law, then the Independent Director shall not be entitled to payment of Indemnifiable Amounts hereunder.

 

(b)          If
indemnification is requested under Section 7(b) and

 

(i)          it
has been adjudicated finally by a court or arbitral body of competent jurisdiction that, in connection with the subject of the
Proceeding out of which the claim for indemnification has arisen, the Independent Director failed to act in good faith and in a
manner the Independent Director reasonably believed to be in or not opposed to the best interests of the Company, including without
limitation, the breach of Section 4 hereof by the Independent Director, the Independent Director shall not be entitled to payment
of Indemnifiable Amounts hereunder; or

 

(ii)         it
has been adjudicated finally by a court or arbitral body of competent jurisdiction that the Independent Director is liable to the
Company with respect to any claim, issue or matter involved in the Proceeding out of which the claim for indemnification has arisen,
including, without limitation, a claim that the Independent Director received an improper benefit or improperly took advantage
of a corporate opportunity, the Independent Director shall not be entitled to payment of Indemnifiable Amounts hereunder with respect
to such claim, issue or matter.

 

9.          WHOLLY
OR PARTLY SUCCESSFUL. Notwithstanding any other provision of this Agreement, and without limiting any such provision, to the extent
that the Independent Director is, by reason of the Independent Director’s Corporate Status, a party to and is successful,
on the merits or otherwise, in any Proceeding, the Independent Director shall be indemnified in connection therewith. If the Independent
Director is not wholly successful in such Proceeding but is successful, on the merits or otherwise, as to one or more but less
than all claims, issues or matters in such Proceeding, the Company shall indemnify the Independent Director against those Expenses
reasonably incurred by the Independent Director or on the Independent Director’s behalf in connection with each successfully
resolved claim, issue or matter. For purposes of this section, the termination of any claim, issue or matter in such a Proceeding
by dismissal, with or without prejudice, shall be deemed to be a successful result as to such claim, issue or matter.

 

    	4

    	 

    

  

10.         ADVANCES
AND INTERIM EXPENSES. Within ten (10) business days of the Independent Director’s written request for indemnification, the
Company shall pay to the Independent Director all Indemnifiable Expenses incurred by the Independent Director in connection with
any Proceeding, including a Proceeding by or in the right of the Company, in advance of the final disposition of such Proceeding,
if the Independent Director furnishes the Company with a written undertaking, to the satisfaction of the Company, to repay the
amount of such Indemnifiable Expenses advanced to the Independent Director in the event it is finally determined by a court or
arbitral body of competent jurisdiction that the Independent Director is not entitled under this Agreement to indemnification with
respect to such Indemnifiable Expenses.

 

11.         PROCEDURE
FOR PAYMENT OF INDEMNIFIABLE AMOUNTS. The Independent Director shall submit to the Company a written request specifying the Indemnifiable
Amounts, for which the Independent Director seeks payment under Section 7 hereof, and the Proceeding of which the Independent Director
has previously notified the Company. At the request of the Company, the Independent Director shall furnish such documentation and
information as are reasonably available to the Independent Director and necessary to establish that the Independent Director is
entitled to indemnification hereunder. The Company shall pay such Indemnifiable Amounts within ten (10) days of receipt of all
required documents.

 

12.         REMEDIES
OF INDEPENDENT DIRECTOR.

 

(a)          RIGHT
TO PETITION COURT. In the event that the Independent Director makes a request for payment of Indemnifiable Amounts under Sections
7, 9-11 above, or seeks payment of insurance under Section 14 below, and such payment or advancement is not made in a timely manner:
(i) by the Company pursuant to the terms of this Agreement, or (ii) by any insurer pursuant to the terms of its insurance policy,
then the Independent Director may petition the appropriate judicial authority to enforce the Company’s or any insurer’s
obligations.

 

(b)          BURDEN
OF PROOF. In any judicial proceeding brought under Section 12 (a) above, the Company shall have the burden of proving that the
Independent Director is not entitled to payment of Indemnifiable Amounts hereunder.

 

(c)          EXPENSES.
The Company agrees to reimburse the Independent Director in full for any Expenses incurred by the Independent Director in connection
with investigating, preparing for, litigating, defending or settling any action brought by the Independent Director under Section
12 (a) above, or in connection with any claim or counterclaim brought by the Company in connection therewith.

 

(d)          VALIDITY
OF AGREEMENT. The Company shall be precluded from asserting in any Proceeding, including, without limitation, an action under Section
12(a) above, that the provisions of this Agreement are not valid, binding and enforceable or that there is insufficient consideration
for this Agreement and shall stipulate in court that the Company is bound by all the provisions of this Agreement.

 

(e)          FAILURE
TO ACT NOT A DEFENSE. The failure of the Company (including its Board of Directors or any committee thereof, independent legal
counsel, or stockholders) to make a determination concerning the permissibility of the payment of Indemnifiable Amounts or the
advancement of Indemnifiable Expenses under this Agreement shall not be a defense in any action brought under Section 12(a) above.

 

    	5

    	 

    

 

13.         PROCEEDINGS
AGAINST COMPANY. Except as otherwise provided in this Agreement, the Independent Director shall not be entitled to payment of Indemnifiable
Amounts or advancement of Indemnifiable Expenses with respect to any Proceeding brought by the Independent Director against the
Company, any Entity which the Company controls, any director or officer thereof, or any third party, unless the Company has consented
to the initiation of such Proceeding. This section shall not apply to counterclaims or affirmative defenses asserted by the Independent
Director in an action brought against the Independent Director.

 

14.         INSURANCE.
The Company shall obtain and maintain a policy or policies of director and officer liability insurance, with an aggregate limit
of liability of not less than $5,000,000, providing the Independent Director with coverage for claims against the Independent Director
by reason of his Corporate Status, in accordance with the terms of said insurance policy or policies (“D&O Insurance”);
provided that the Company shall not be liable under this Agreement to make any payment in connection with any claim made against
the Independent Director to the extent that the Independent Director has otherwise received payment under any insurance policy
of the amounts otherwise indemnifiable hereunder. The Company shall take any actions it deems reasonably necessary or desirable
to cause the D&O insurer(s) to pay, on behalf of the Independent Director, all amounts payable in accordance with the terms
of the D&O Insurance.

 

15.         SUBROGATION.
In the event of any payment of Indemnifiable Amounts under this Agreement or the D&O Insurance, the Company or its Insurance
Carrier, as the case may be, shall be subrogated to the extent of such payment to all of the rights of contribution or recovery
of the Independent Director against other persons, and the Independent Director shall take, at the request of the Company, all
reasonable action necessary to secure such rights, including the execution of such documents as are necessary to enable the Company
to bring suit to enforce such rights.

 

16.         AUTHORITY.
Each party has all necessary power and authority to enter into, and be bound by the terms of, this Agreement, and the execution,
delivery and performance of the undertakings contemplated by this Agreement have been duly authorized by each party hereto:

 

17.         SUCCESSORS
AND ASSIGNMENT. This Agreement shall (a) be binding upon and inure to the benefit of all successors and assigns of the Company
(including any transferee of all or a substantial portion of the business, stock and/or assets of the Company and any direct or
indirect successor by merger or consolidation or otherwise by operation of law), and (b) be binding on and shall inure to the benefit
of the heirs, personal representatives, executors and administrators of the Independent Director. The Independent Director has
no power to assign this Agreement or any rights and obligations hereunder.

 

18.         CHANGE
IN LAW. To the extent that a change in applicable law (whether by statute or judicial decision) shall mandate broader or narrower
indemnification than is provided hereunder, the Independent Director shall be subject to such broader or narrower indemnification
and this Agreement shall be deemed to be amended to such extent.

 

19.         SEVERABILITY.
Whenever possible, each provision of this Agreement shall be interpreted in such a manner as to be effective and valid under applicable
law, but if any provision of this Agreement, or any clause thereof, shall be determined by a court of competent jurisdiction to
be illegal, invalid or unenforceable, in whole or in part, such provision or clause shall be limited or modified in its application
to the minimum extent necessary to make such provision or clause valid, legal and enforceable, and the remaining provisions and
clauses of this Agreement shall remain fully enforceable and binding on the parties.

 

    	6

    	 

    

  

20.         MODIFICATIONS
AND WAIVER. Except as provided in Section 18 hereof with respect to changes in applicable law which broaden or narrow the right
of the Independent Director to be indemnified by the Company, no supplement, modification or amendment of this Agreement shall
be binding unless executed in writing by each of the parties hereto. No delay in exercise or non-exercise by the Company of any
right under this Agreement shall operate as a current or future waiver by it as to its same or different rights under this Agreement
or otherwise.

 

21.         NOTICES.
All notices, requests, demands and other communications hereunder shall be in writing and shall be deemed to have been duly given
(a) when delivered by hand, (b) when transmitted by facsimile and receipt is acknowledged, or (c) if mailed by certified or registered
mail with postage prepaid, on the third business day after the date in which it is so mailed:

 

If to the Company, to: Jinhua Zhu, CEO,
Lihua International, Houxiang Five Star Industry District, Danyang City, Jiangsu Province, PR China 212312, or to such other address
as may have been furnished in the same manner by any party to the others.

 

22.         GOVERNING
LAW. This Agreement shall be governed by and construed and enforced under the laws of the State of Delaware.

 

23.         CONSENT
TO JURISDICTION. The parties hereby consent to the jurisdiction of the courts having jurisdiction over matters arising in Delaware
for any proceeding arising out of or relating to this Agreement. The parties agree that in any such proceeding, each party shall
waive, if applicable, inconvenience of forum and right to a jury.

 

24.         AGREEMENT
GOVERNS. This Agreement is to be deemed consistent wherever possible with relevant provisions of the By-Laws and Certificate of
Incorporation of the Company; however, in the event of a conflict between this Agreement and such provisions, the provisions of
this Agreement shall control.

 

25.         INDEPENDENT
CONTRACTOR. The parties understand, acknowledge and agree that the Independent Director’s relationship with the Company is
that of an independent contractor and nothing in this Agreement is intended to or should be construed to create a relationship
other than that of independent contractor. Nothing in this Agreement shall be construed as a contract of employment/engagement
between the Independent Director and the Company or as a commitment on the part of the Company to retain the Independent Director
in any capacity, for any period of time or under any specific terms or conditions, or to continue the Independent Director’s
service to the Company beyond any period.

 

26.         ENTIRE
AGREEMENT. This Agreement constitutes the entire agreement between the Company and the Independent Director with respect to the
subject matter hereof, and supersedes all prior understandings and agreements with respect to such subject matter.

 

    	7

    	 

    

 

IN WITNESS WHEREOF, the parties hereto have
executed this Independent Director Agreement as of the day and year first above written. 

 

	AGREED	 	AGREED
	 	 	 
	LIHUA INTERNATIONAL, INC.	 	INDEPENDENT DIRECTOR
	 	 	 
	/s/ Jianhua Zhu	 	/s/ Siu Ki Lau
	Name:  Jianhua Zhu	 	Name: Siu Ki Lau
	Title:   Chairman and CEO	 	 

  

    	8

    	 

    

SCHEDULE A

 

I.     COMPENSATION:

 

A. Fees. For all services rendered
by the Independent Director pursuant to this Agreement, both during and outside of normal working hours, including but not limited
to, attending all required meetings of the Board or applicable committees thereof, executive sessions of the independent directors,
reviewing filing reports and other corporate documents as requested by the Company, providing comments and opinions as to business
matters as requested by the Company, the Company agrees to pay to the Independent Director a fee in cash of Four Thousand Dollars
($4,000) per month during the Term (the “Base Fee”), so long as the Independent Director is serving on the Board of
Directors. The Base Fee shall be paid in cash to the Independent Director on a quarterly basis in equal installments on the last
day of each calendar quarter.

 

B. Stock Option. Upon execution
of this Agreement the Independent Director shall be granted a 10-year option to purchase Twenty Thousand (20,000) shares of common
stock of the Company, with an exercise price equal to the fair market value of a share of the Company’s common stock on the
date of the grant of the option. Such option shall vest in equal installments on July 14, 2013, October
14, 2013, January 14, 2014 and April 14, 2014, as long as the Independent Director is serving as a member of the Board of
Directors at each such time. Such award shall be made pursuant to the Company’s 2009 Omnibus Securities and Incentive Plan.
The Independent Director’s rights in respect to any grant shall be determined solely by the Compensation Committee of the
Company and are subject to execution by Independent Director of any applicable agreements as established and requested by the Company
pursuant to the 2009 Omnibus Securities and Incentive Plan.

 

C. Expenses. During the Term the
Company shall promptly reimburse the Independent Director for all expenses incurred by him/her in connection with attending (a)
all meetings of the Board or applicable committees thereof, (b) executive sessions of the independent directors, (c) stockholder
meetings, as a director or a member of any committee of the Board, which are approved by the Company in advance and (d) subject
to prior Company approval, other Company-related travel. The Company will promptly reimburse the Independent Director for hotel
accommodation expenses actually incurred in connection with any such meetings the Independent Director attends, up to $350 per
night for stays of up to five nights per meeting. The Company will only reimburse the Independent Director for economy class airplane
tickets purchased for Company business, provided, however, that if the total flight time exceeds six hours, the Company will reimburse
the Independent Director for business class tickets. The amount of such expenses eligible for reimbursement by the Company during
a calendar year shall not affect such expenses eligible for reimbursement by the Company in any other calendar year, and the reimbursement
of any such eligible expenses shall be made on or before the last day of the calendar year next following the calendar year in
which the expense was incurred. Additionally, the Company will reimburse the Independent Director up to $3,000 during the Term,
for the actual costs incurred to travel to and attend bona fide director education seminars that the Independent Director may,
in his discretion, select.

  

    	9

    	 

    

 

D. No Other Benefits Or Compensation.
The Independent Director acknowledges and agrees that he is not granted and is not entitled to any other benefits or compensation
from the Company for the services provided under this Agreement except expressly provided for in this Schedule A.

  

	AGREED	 	AGREED
	 	 	 
	LIHUA INTERNATIONAL, INC.	 	INDEPENDENT DIRECTOR
	 	 	 
	/s/ Jianhua Zhu	 	/s/ Siu Ki Lau
	Name:  Jianhua Zhu	 	Name: Siu Ki Lau
	Title:   Chairman and CEO	 	 

  

    	10

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00220-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00220-of-00352.parquet"}]]