Document:

Exhibit 10.1

 

CYTOCORE, INC.

 

 

 

 

Securities
Purchase Agreement

 

 

 

    	 

    	 

    

 

CONFIDENTIAL
INFORMATION

 

The
offeree, by accepting the SECURITIES Purchase Agreement, and ANY other Documents relating to THIS PRIVATE PLACEMENT, acknowledges
and agrees that: (i) the FORGOING Documents have been furnished to the offeree on a confidential basis solely for the purpose of
enabling the offeree to evaluate the Offering; (ii) that the offeree may not further distribute the FORGOING documents without
the prior written consent of the Company, except to the Offeree’s legal, financial or other personal advisors, if any, who
will use the FORGOING Documents on the Offeree’s behalf solely for purposes of evaluating the Offering; (iii) any reproduction
or distribution of the FORGOING Documents, in whole or in part, or the direct or indirect disclosure of the contents of the FORGOING
Documents for any other purpose without the prior written consent of the Company is prohibited; and (iv) the Offeree shall be bound
by all terms and conditions specified in the FORGOING documents.

 

NOTICE TO OFFEREES

 

THE SECURITIES OFFERED
HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR REGISTERED OR QUALIFIED UNDER THE APPLICABLE SECURITIES
LAWS OF ANY STATE OR OTHER JURISDICTION. THIS SECURITIES PURCHASE AGREEMENT DOES
NOT CONSTITUTE AN OFFER TO SELL OR SOLICITATION OF AN OFFER TO BUY THE SECURITIES IN ANY JURISDICTION IN WHICH SUCH OFFER OR SOLICITATION
WOULD BE UNLAWFUL.

 

THE SECURITIES ARE
BEING SOLD FOR INVESTMENT PURPOSES ONLY, WITHOUT A VIEW TO RESALE OR DISTRIBUTION THEREOF, AND MAY NOT BE TRANSFERRED, RESOLD OR
OFFERED FOR RESALE IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT AND EFFECTIVE REGISTRATION OR
QUALIFICATION UNDER THE APPLICABLE SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION, OR THE AVAILABILITY OF AN EXEMPTION THEREFROM.

 

NEITHER THE SECURITIES
AND EXCHANGE COMMISSION NOR THE SECURITIES COMMISSION OR OTHER REGULATORY AUTHORITY OF ANY STATE OR OTHER JURISDICTION HAS APPROVED
OR DISAPPROVED OF THESE SECURITIES OR PASSED UPON THE ADEQUACY OR ACCURACY OF THIS SECURITIES
PURCHASE AGREEMENT OR ANY OTHER DOCUMENT RELATED TO THIS OFFERING. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.

 

    	i

    	 

    

 

ANY INVESTMENT IN
THE SECURITIES OFFERED HEREBY SPECULATIVE, INVOLVES A HIGH DEGREE OF RISK AND SHOULD BE CONSIDERED ONLY BY SOPHISTICATED INVESTORS
WHO ARE PREPARED TO BEAR THE ECONOMIC RISK OF SUCH INVESTMENT FOR AN INDEFINITE PERIOD AND BE ABLE TO WITHSTAND A TOTAL LOSS OF
INVESTMENT. INVESTORS SHOULD CAREFULLY REVIEW THE SECURITIES PURCHASE AGREEMENT AND THE EXHIBITS HERETO, IN ADDITION TO THEIR OWN
INVESTIGATION AND DUE DILIGENCE OF THE COMPANY AND THE TERMS OF THIS OFFERING.

 

YOU SHOULD ASSUME
THAT THE INFORMATION CONTAINED IN THIS SECURITIES PURCHASE AGREEMENT, INCLUDING THE EXHIBITS ATTACHED HERETO, IS ACCURATE AS OF
THE DATE ON THE FRONT OF THIS SECURITIES PURCHASE AGREEMENT, REGARDLESS OF THE TIME OF DELIVERY OF THIS SECURITIES PURCHASE AGREEMENT
OR OF ANY SALE OF SECURITIES HEREUNDER. NEITHER THE DELIVERY OF THIS SECURITIES PURCHASE AGREEMENT NOR ANY SALE MADE HEREUNDER
SHALL, UNDER ANY CIRCUMSTANCES, CREATE ANY IMPLICATION THAT THERE HAS BEEN NO CHANGE IN THE AFFAIRS OF THE COMPANY AFTER THE DATE
HEREOF.

 

THIS SECURITIES PURCHASE
AGREEMENT DOES NOT PURPORT TO BE ALL-INCLUSIVE OR TO CONTAIN ALL OF THE INFORMATION THAT A PROSPECTIVE INVESTOR MAY DESIRE IN INVESTIGATING
THE COMPANY. EACH INVESTOR MUST CONDUCT AND RELY ON ITS OWN EVALUATION OF THE COMPANY AND THE TERMS OF THE OFFERING, INCLUDING
THE MERITS AND RISKS INVOLVED, IN MAKING AN INVESTMENT DECISION WITH RESPECT TO THE SECURITIES. CERTAIN PROVISIONS OF VARIOUS AGREEMENTS
AND DOCUMENTS ARE SUMMARIZED IN THIS SECURITIES PURCHASE AGREEMENT, PROSPECTIVE INVESTORS SHOULD NOT ASSUME THAT THE SUMMARIES
ARE COMPLETE AND SUCH SUMMARIES ARE QUALIFIED IN THEIR ENTIRETY BY REFERENCE TO THE COMPLETE TEXT OF SUCH AGREEMENTS AND DOCUMENTS.

 

IN
MAKING AN INVESTMENT DECISION INVESTORS MUST RELY ON THEIR OWN EXAMINATION OF THE COMPANY AND THE TERMS OF THE OFFERING, INCLUDING
THE MERITS AND RISKS INVOLVED. THESE SECURITIES HAVE NOT BEEN RECOMMENDED BY ANY FEDERAL OR STATE SECURITIES COMMISSION OR REGULATORY
AUTHORITY. FURTHERMORE, THE FOREGOING AUTHORITIES HAVE NOT CONFIRMED THE ACCURACY OR DETERMINED THE ADEQUACY OF THIS DOCUMENT.
ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE. THESE SECURITIES ARE SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND RESALE
AND MAY NOT BE TRANSFERRED OR RESOLD EXCEPT AS PERMITTED UNDER THE ACT, AND THE APPLICABLE STATE SECURITIES LAWS, PURSUANT TO REGISTRATION
OR EXEMPTION THEREFROM. INVESTORS SHOULD BE AWARE THAT THEY WILL BE REQUIRED TO BEAR THE FINANCIAL RISKS OF THIS INVESTMENT FOR
AN INDEFINITE PERIOD OF TIME.

 

    	ii

    	 

    

 

FORWARD LOOKING STATEMENTS

 

All statements contained herein other than
statements of historical facts are forward-looking statements within the meaning of the “safe harbor” provisions of
the Private Securities Litigation Reform Act of 1995. We have attempted to identify any forward-looking statements by using words
such as “anticipates,” “believes,” “could,” “expects,” “intends,” “may,”
“should” and other similar expressions. These statements are based upon our current expectations and speak only as
of the date hereof. Although we believe that the expectations reflected in our forward-looking statements are reasonable, we can
give no assurance that such expectations will prove to be correct. Such statements are not guarantees of future performance or
events and are subject to known and unknown risks and uncertainties that could cause our actual results, events or financial position
to differ materially and adversely from those expressed in such forward-looking statements. Such factors include, but are not limited
to: our ability to raise capital; our ability to retain key employees; our ability to engage third party distributors to sell our
products; economic conditions; technological advances in the medical field; demand and market acceptance risks for new and existing
products, technologies, and healthcare services; the impact of competitive products and pricing; U.S. and international regulatory,
trade, and tax policies; product development risks, including technological difficulties; ability to enforce patents; and foreseeable
and unforeseeable foreign regulatory and commercialization factors; our ability to develop new products and respond to technological
changes in the markets in which we compete; our ability to obtain government approvals of our products; our ability to market our
products; changes in third-party reimbursement procedures; and other factors disclosed in our annual report on Form 10-K for the
year ended December 31, 2012 and other filings with the SEC. We undertake no obligation to revise or update any forward-looking
statements for any reason.

 

    	iii

    	 

    

 

ADDITIONAL INFORMATION

 

Cytocore, Inc. (the
“Company”) files annual, quarterly and current reports, proxy statements and other information with the Securities
and Exchange Commission (the “SEC”) under the Securities Exchange Act of 1934, as amended. Reports, statements
or other information that we file with the SEC are available to the public at the SEC’s Website at http://www.sec.gov. The
following documents that we have previously filed with the SEC are incorporated by reference into this Agreement:

 

		·	Annual Report on SEC Form 10-K for the year ended December 31, 2012;

 

		·	Quarterly Report on SEC Form 10-Q for the quarter ended March 31, 2013; and

 

		·	Current Reports on SEC Form 8-K dated May 24, 2013; and

 

		·	Any Annual Report on SEC Form 10-K, Quarterly Report on Form 10-Q, or Current Report on SEC Form
8-K filed with the SEC after June 20, 2013 and before the date this agreement is executed.

 

The information
incorporated by reference into this agreement is an important part of this Agreement. Any statement contained in a document
incorporated by reference into this Agreement shall be deemed to be modified or superseded for the purposes of this Agreement to
the extent that a statement contained herein or in any other subsequently filed document modifies or supersedes such statement.
Any statement so modified or superseded shall not be deemed, except as so modified or superseded, to constitute a part of this
Agreement.

 

The Company will provide
to each person to whom this Agreement is sent, upon the written or oral request of such person, a copy of any or all of the documents
referred to above that have been incorporated by reference into this agreement but not delivered with this agreement. You may make
such requests at no cost to you by writing or telephoning us at the following address or number:

 

Cytocore, Inc.

414 N. Orleans St., Suite 510

Chicago, Illinois 60654

Attention: Chief Executive Officer

(312) 222-9550

 

You should rely only
on the information contained in this Agreement or incorporated by reference into this Agreement. The Company has not authorized
anyone to provide you with different information. You should not assume that the information in this Agreement is accurate as of
any date other than the date on the cover of this Agreement or that the information incorporated by reference into this Agreement
is accurate as of any date other than the date set forth on the front of the document containing such information.

 

    	iv

    	 

    

 

CONFIDENTIAL

 

SECURITIES
PURCHASE AGREEMENT

 

THIS SECURITIES PURCHASE
AGREEMENT (this “Agreement”), dated on and as of the latest date set forth on the signature page hereto, by
and between Cytocore, Inc., a Delaware corporation (the “Company”), and the purchaser identified on the signature
page hereof (“Purchaser”).

 

RECITALS:

 

WHEREAS, Purchaser
desires to purchase and the Company desires to sell securities on the terms and conditions set forth herein.

 

NOW, THEREFORE, in
consideration of the premises hereof and the agreements set forth herein below, the parties hereto hereby agree as follows:

 

1.           Sale
and Purchase of Securities.

 

(a)          Purchase
and Sale. Subject to the terms and conditions hereof, the Company agrees to sell, and Purchaser irrevocably subscribes for
and agrees to purchase, the number of Shares set forth on the signature page of this Agreement at a purchase price $0.02 per Share.
The aggregate purchase price for the Shares shall be as set forth on the signature page hereto (the “Aggregate Purchase
Price”) and shall be payable upon execution hereof by check or wire transfer of immediately available funds as set forth
below.

 

(b)          Subscription
Procedure. In order to purchase Shares, Purchaser shall deliver to the Company at 414 N. Orleans St., Suite 510, Chicago, Illinois
60654: Chief Executive Officer: (i) one completed and duly executed copy of this Agreement; and (ii) immediately available funds,
or a certified check or bank check, in an amount equal to the Aggregate Purchase Price. Execution and delivery of this Agreement
shall constitute an irrevocable subscription for that number of Shares set forth on the signature page hereto. Payment for the
Shares may be made by wire transfer to:

 

[Insert Wire Instructions]

 

or by check made payable to: “Cytocore,
Inc.” Receipt by the Company of funds wired, or deposit and collection by the Company of the check tendered herewith, will
not constitute acceptance of this Agreement by the Company. The Shares subscribed for will not be deemed to be issued to, or owned
by, Purchaser until the Company has executed this Agreement. All funds tendered by Purchaser will be held by the Company pending
acceptance or rejection of this Agreement by the Company and the closing of Purchaser’s purchase of Shares. This Agreement
will either be accepted by the Company, in whole or in part, in its sole discretion, or rejected by the Company as promptly as
practicable. If this Agreement is accepted only in part, Purchaser agrees to purchase such smaller number of Shares as the Company
determines to sell to Purchaser. If this Agreement is rejected for any reason, this Agreement and all funds tendered herewith will
be promptly returned to Purchaser, without interest or deduction of any kind, and this Agreement will be void and of no further
force or effect.

 

    	1

    	 

    

 

(c)          Closing.
Upon the Company’s execution of this Agreement, the subscription evidenced hereby will, in reliance upon Purchaser’s
representations and warranties contained herein, be accepted by the Company. Upon acceptance of this Agreement, by the Company,
the Company will issue the certificates for the Shares.

 

(d)          Use
of Proceeds. The Company intends to use the net proceeds for general working capital purposes.

 

2.           Representations
and Warranties of Purchaser. Purchaser represents and warrants to the Company as follows:

 

(a)          Organization
and Qualification.

 

(i)          If
Purchaser is an entity, Purchaser is duly organized, validly existing and in good standing under the laws of its jurisdiction of
organization, with the corporate or other entity power and authority to own and operate its business as presently conducted, except
where the failure to be or have any of the foregoing would not have a material adverse effect on Purchaser, and Purchaser is duly
qualified as a foreign corporation or other entity to do business and is in good standing in each jurisdiction where the character
of its properties owned or held under lease or the nature of their activities makes such qualification necessary, except for such
failures to be so qualified or in good standing as would not have a material adverse effect on it.

 

(ii)         If
Purchaser is an entity, the address of its principal place of business is as set forth on the signature page hereto, and if Purchaser
is an individual, the address of its principal residence is as set forth on the signature page hereto.

 

(b)          Authority;
Validity and Effect of Agreement.

 

(i)          If
Purchaser is an entity, Purchaser has the requisite corporate or other entity power and authority to execute and deliver this Agreement
and perform its obligations under this Agreement. The execution and delivery of this Agreement by Purchaser, the performance by
Purchaser of its obligations hereunder, and all other necessary corporate or other entity action on the part of Purchaser have
been duly authorized by its board of directors or similar governing body, and no other corporate or other entity proceedings on
the part of Purchaser is necessary for Purchaser to execute and deliver this Agreement and perform its obligations hereunder.

 

(ii)         This
Agreement has been duly and validly authorized, executed and delivered by Purchaser and, assuming each has been duly and validly
executed and delivered by the Company, each constitutes a legal, valid and binding obligation of Purchaser, in accordance with
its terms.

 

    	2

    	 

    

 

(c)          No
Conflict; Required Filings and Consents. Neither the execution and delivery of this Agreement by Purchaser nor the performance
by Purchaser of its obligations, hereunder will: (i) if Purchaser is an entity, conflict with Purchaser’s certificate of
incorporation or bylaws, or other similar organizational documents; (ii) violate any statute, law, ordinance, rule or regulation,
applicable to Purchaser or any of the properties or assets of Purchaser; or (iii) violate, breach, be in conflict with or constitute
a default (or an event which, with notice or lapse of time or both, would constitute a default) under, or permit the termination
of any provision of, or result in the termination of, the acceleration of the maturity of, or the acceleration of the performance
of any obligation of Purchaser under, or result in the creation or imposition of any lien upon any properties, assets or business
of Purchaser under, any material contract or any order, judgment or decree to which Purchaser is a party or by which it or any
of its assets or properties is bound or encumbered except, in the case of clauses (ii) and (iii), for such violations, breaches,
conflicts, defaults or other occurrences which, individually or in the aggregate, would not have a material adverse effect on its
obligation to perform its covenants under this Agreement.

 

(d)          Accredited
Investor.         Purchaser is an “accredited investor” as that term
is defined in Rule 501(a) of Regulation D under the Securities Act. If Purchaser is an entity, Purchaser was not formed for the
specific purpose of acquiring the Shares, and, if it was, all of Purchaser’s equity owners are “accredited investors”
as defined above.

 

(e)          No
Government Review. Purchaser understands that neither the United States Securities and Exchange Commission (“SEC”)
nor any securities commission or other governmental authority of any state, country or other jurisdiction has approved the issuance
of the Shares or passed upon or endorsed the merits of this Agreement, the Shares, or any of the other documents relating to the
transactions contemplated hereby, or confirmed the accuracy of, determined the adequacy of, or reviewed this Agreement, the Shares
or such other documents.

 

(f)          Investment
Intent. The Shares are being acquired for the Purchaser’s own account for investment purposes only, not as a nominee
or agent and not with a view to the resale or distribution of any part thereof, and Purchaser has no present intention of selling,
granting any participation in or otherwise distributing the same. By executing this Agreement, Purchaser further represents that
Purchaser does not have any contract, undertaking, agreement or arrangement with any person to sell, transfer or grant participation
to such person or third person with respect to any of the Shares.

 

    	3

    	 

    

 

(g)          Restrictions
on Transfer. Purchaser understands that the Shares are “restricted securities” as such term is defined in Rule
144 under the Securities Act and have not been registered under the Securities Act or registered or qualified under any state securities
law, and may not be, directly or indirectly, sold, transferred, offered for sale, pledged, hypothecated or otherwise disposed of
without registration under the Securities Act and registration or qualification under applicable state securities laws or the availability
of an exemption therefrom. In any case where such an exemption is relied upon by Purchaser from the registration requirements of
the Securities Act and the registration or qualification requirements of such state securities laws, Purchaser shall furnish the
Company with an opinion of counsel stating that the proposed sale or other disposition of such securities may be effected without
registration under the Securities Act and will not result in any violation of any applicable state securities laws relating to
the registration or qualification of securities for sale, such counsel and opinion to be satisfactory to the Company. Purchaser
acknowledges that it is able to bear the economic risks of an investment in the Shares for an indefinite period of time, and that
its overall commitment to investments that are not readily marketable is not disproportionate to its net worth. In the event that
the Purchaser desires to transfer the Shares in reliance on the provisions of Rule 144 or other exemption from the registration
requirements of the Securities Act and the registration or qualification requirements of any state securities laws, the Purchaser
shall furnish the Company with a certificate containing factual representations in substantially the form attached as Annex
A hereto and such other additional representations that may be reasonably requested by the Company. Upon receipt of such certificate,
and assuming that all other conditions imposed by law or regulation to reliance on such exemption have been satisfied (for
example, the Company being current in its filings with the SEC, the Company shall cause its counsel to deliver a legal opinion
stating that the proposed sale or other disposition of such securities may be effected without registration under the Securities
Act and will not result in any violation of any applicable state securities laws relating to the registration or qualification
of securities for sale.

 

(h)          Investment
Experience. Purchaser has such knowledge, sophistication and experience in financial, tax and business matters in general,
and investments in securities in particular, that it is capable of evaluating the merits and risks of this investment in the Shares,
and Purchaser has made such investigations in connection herewith as it deemed necessary or desirable so as to make an informed
investment decision without relying upon the Company for legal or tax advice related to this investment. In making its decision
to acquire the Shares, Purchaser has not relied upon any information other than information provided to Purchaser by the Company
or its representatives and contained herein.

 

(i)          Access
to Information. Purchaser acknowledges that it has had access to and has reviewed all documents and records relating to the
Company, including, but not limited to, the Company’s Annual Report on SEC Form 10-K for the year ended December 31, 2012,
the Company’s Quarterly Report on Form 10-Q for the period ended March 31, 2013, any Annual Report on SEC Form 10-K, Quarterly
Report on SEC Form 10-Q, or Current Report on SEC Form 8-K filed with the SEC after June 20, 2013 and before the date this Agreement
is executed (as such documents have been amended since the date of their filing, collectively, the “Company SEC Documents”),
that it has deemed necessary in order to make an informed investment decision with respect to an investment in the Securities;
that it has had the opportunity to ask representatives of the Company certain questions and request certain additional information
regarding the terms and conditions of such investment and the finances, operations, business and prospects of the Company and has
had any and all such questions and requests answered to its satisfaction; and that it understands the risks and other considerations
relating to such investment. Purchaser understands any statement contained in the Company SEC Documents shall be deemed to be modified
or superseded for the purposes of this Agreement to the extent that a statement contained herein or in any other document subsequently
filed with the SEC modifies or supersedes such statement.

 

    	4

    	 

    

 

(j)          Reliance
on Representations. Purchaser understands that the Shares are being offered and sold to it in reliance on specific exemptions
from the registration requirements of the federal and state securities laws and that the Company is relying in part upon the truth
and accuracy of, and such Purchaser’s compliance with, the representations, warranties, agreements, acknowledgments and understandings
of such Purchaser set forth herein in order to determine the availability of such exemptions and the eligibility of such Purchaser
to acquire the Securities. Purchaser represents and warrants to the Company that any information that Purchaser has heretofore
furnished or furnishes herewith to the Company is complete and accurate, and further represents and warrants that it will notify
and supply corrective information to the Company immediately upon the occurrence of any change therein occurring prior to the Company’s
issuance of the Shares. Within five (5) days after receipt of a request from the Company, Purchaser will provide such information
and deliver such documents as may reasonably be necessary to comply with any and all laws and regulations to which the Company
is subject.

 

(k)          No
General Solicitation. Purchaser is unaware of, and in deciding to participate in the transactions contemplated hereby is in
no way relying upon, and did not become aware of this private placement through or as a result of, any form of general solicitation
or general advertising including, without limitation, any article, notice, advertisement or other communication published in any
newspaper, magazine or similar media, or broadcast over television or radio or the internet, in connection with the transactions
contemplated hereby.

 

(l)          Placement
and Finder’s Fees. No agent, broker, investment banker, finder, financial advisor or other person acting on behalf of
Purchaser or under its authority is or will be entitled to any broker’s or finder’s fee or any other commission or
similar fee, directly or indirectly, in connection with the transactions contemplated hereby, and no person is entitled to any
fee or commission or like payment in respect thereof based in any way on agreements, arrangements or understanding made by or on
behalf of Purchaser.

 

(m)          Investment
Risks. Purchaser understands that purchasing Shares in the private placement will subject Purchaser to certain risks, including,
but not limited to, those set forth in the Company SEC Documents as well as each of the following:

 

(i)          The
offering price of the Shares offered hereby has been determined solely by the Company and does not necessarily bear any relationship
to the value of the Company’s assets, current or potential earnings of the Company, or any other recognized criteria used
for measuring value and, therefore, there can be no assurance that the offering price of the Shares is representative of the actual
value of the Shares.

 

(ii)         In
order to capitalize the Company, execute its business plan, and for other corporate purposes, the Company has issued, and expects
to issue additional shares of Common Stock, securities exercisable or convertible into shares of Common Stock, or debt. Such securities
have been and may be issued for a purchase price consisting of cash, services or other consideration that may be materially different
than the purchase price of the Shares. The issuance of any such securities may result in substantial dilution to the relative ownership
interests of the Company’s existing shareholders and substantial reduction in net book value per share. Additional equity
securities may have rights, preferences and privileges senior to those of the holders of Common Stock, and any debt financing may
involve restrictive covenants that may limit the Company’s operating flexibility.

 

    	5

    	 

    

 

(iii)        An
investment in the Shares may involve certain material legal, accounting and federal and state tax consequences. Purchaser should
consult with its legal counsel, accountant and/or business adviser as to the legal, accounting, tax and related matters accompanying
such an investment.

 

(n)          Legends.
The certificates and agreements evidencing the Shares shall have endorsed thereon the following legend (and appropriate notations
thereof will be made in the Company’s stock transfer books), and stop transfer instructions reflecting these restrictions
on transfer will be placed with the transfer agent of the Shares:

 

THE SECURITIES REPRESENTED
HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE. THE SECURITIES
REPRESENTED HEREBY HAVE BEEN TAKEN BY THE REGISTERED OWNER FOR INVESTMENT, AND WITHOUT A VIEW TO RESALE OR DISTRIBUTION THEREOF,
AND MAY NOT BE SOLD, TRANSFERRED OR DISPOSED OF WITHOUT AN OPINION OF COUNSEL SATISFACTORY TO THE ISSUER THAT SUCH TRANSFER OR
DISPOSITION DOES NOT VIOLATE THE SECURITIES ACT OF 1933, AS AMENDED, THE RULES AND REGULATIONS THEREUNDER OR OTHER APPLICABLE SECURITIES
LAWS.

 

(o)          Purchaser
is directed to review the U.S. Treasury Department’s Office of Foreign Assets Control (“OFAC”) website
at www.treas.gov. before making the following representations. Purchaser represents that no part of the Aggregate Purchase Price
set forth on the signature page hereto was directly or indirectly derived from activities that may contravene federal, state or
international laws and regulations, including anti-money laundering laws and regulations. Federal regulations and executive orders
administered by OFAC prohibit, among other things, the engagement in transaction with, and the provision of services to, certain
foreign countries, territories, entities and individuals. The lists of OFAC prohibited countries, territories, persons and entities
can be found at the OFAC website. In addition, the programs administered by OFAC prohibit dealing with individuals or entities
in certain countries regardless of whether such individuals or entities appear on the OFAC lists. Purchaser hereby represents that
none of the following is named on the OFAC list, nor is a person or entity prohibited under the OFAC programs: (i) the Purchaser,
(ii) any person controlling or controlled by the Purchaser, (iii) if the undersigned is an entity, any person having a beneficial
interest in the Purchaser, or (iv) any person for whom the undersigned is acting as agent or nominee in connection with this investment.
The Purchaser understands and acknowledges that, by law, the Company may be required to disclose the identity of the Purchaser
to OFAC.

 

    	6

    	 

    

 

(p)          The
Purchaser acknowledges that due to anti-money laundering regulations within their respective jurisdictions, the Company and/or
any person acting on behalf of the Company may require further documentation verifying the Purchaser’s identity and the source
of funds used to purchase Shares before this Agreement can be accepted. The Purchaser further agrees to provide the Company at
any time with such information as the Company determines to be necessary and appropriate to verify compliance with the anti-money
laundering regulations of any applicable jurisdiction or to respond to requests for information concerning the identity of the
Purchaser from any governmental authority, self-regulatory organization or financial institution in connection with its anti-money
laundering compliance procedures, and to update such information as necessary.

 

(q)          Short
Sales and Confidentiality Prior to the Date Hereof. Other than the transaction contemplated hereunder,
Purchaser has not directly or indirectly, nor has any person acting on behalf of or pursuant to any understanding with Purchaser,
executed any disposition, including Short Sales (as such term is defined in Rule 200 of Regulation SHO under the Exchange Act),
in the securities of the Company during the period commencing from the time that Purchaser first received a term sheet (written
or oral) from the Company or any other person setting forth the material terms of the transactions contemplated hereunder or this
Agreement until the date hereof (“Discussion Time”).  Notwithstanding the foregoing, in the case of
a Purchaser that is a multi-managed investment vehicle whereby separate portfolio managers manage separate portions of Purchaser’s
assets and the portfolio managers have no direct knowledge of the investment decisions made by the portfolio managers managing
other portions of Purchaser’s assets, the representation set forth above shall only apply with respect to the portion of
assets managed by the portfolio manager that made the investment decision to purchase the Securities covered by this Agreement.  Other
than to other persons party to this Agreement, Purchaser has maintained the confidentiality of all disclosures made to it in connection
with this transaction (including the existence and terms of this transaction).

 

3.           Representations
and Warranties of the Company. The Company represents and warrants to Purchaser as
follows:

 

(a)          Organization
and Qualification. The Company is duly organized, validly existing and in good standing under the laws of the State of Delaware,
with the corporate power and authority to own and operate its business as presently conducted, except where the failure to be or
have any of the foregoing would not have a material adverse effect on the Company. The Company is duly qualified as a foreign corporation
or other entity to do business and is in good standing in each jurisdiction where the character of its properties owned or held
under lease or the nature of their activities makes such qualification necessary, except for such failures to be so qualified or
in good standing as would not have a material adverse effect on the Company.

 

    	7

    	 

    

 

(b)          Authority;
Validity and Effect of Agreement.

 

(i)          The
Company has the requisite corporate power and authority to execute and deliver this Agreement, perform its obligations hereunder,
and conduct the transactions contemplated hereby. The execution and delivery of this Agreement by the Company, the performance
by the Company of its obligations hereunder, the transactions contemplated thereby and all other necessary corporate action on
the part of the Company have been duly authorized by its board of directors, and no other corporate proceedings on the part of
the Company are necessary to authorize this Agreement or the transactions contemplated thereby. This Agreement has been duly and
validly executed and delivered by the Company and, assuming that it has been duly authorized, executed and delivered by Purchaser,
it constitutes a legal, valid and binding obligation of the Company, in accordance with its terms, subject to the effects of bankruptcy,
insolvency, fraudulent conveyance, reorganization, moratorium and other similar laws relating to or affecting creditors’
rights generally, general equitable principles (whether considered in a proceeding in equity or at law) and an implied covenant
of good faith and fair dealing.

(ii)         The
Shares have been duly authorized and, when issued and paid for in accordance with this Agreement, will be validly issued, fully
paid and non-assessable with no personal liability resulting solely from the ownership of such Shares and will be free and clear
of all liens, charges, restrictions, claims and encumbrances imposed by or through the Company.

 

(c)          No
Conflict; Required Filings and Consents. Neither the execution and delivery of this Agreement by the Company nor the
performance by the Company of its obligations hereunder will: (i) conflict with the Company’s certificate of incorporation
or bylaws; (ii) violate any statute, law, ordinance, rule or regulation, applicable to the Company or any of the properties or
assets of the Company; or (iii) violate, breach, be in conflict with or constitute a default (or an event which, with notice or
lapse of time or both, would constitute a default) under, or permit the termination of any provision of, or result in the termination
of, the acceleration of the maturity of, or the acceleration of the performance of any obligation of the Company, or result in
the creation or imposition of any lien upon any properties, assets or business of the Company under, any material contract or any
order, judgment or decree to which the Company is a party or by which it or any of its assets or properties is bound or encumbered
except, in the case of clauses (ii) and (iii), for such violations, breaches, conflicts, defaults or other occurrences which, individually
or in the aggregate, would not have a material adverse effect on its obligation to perform its covenants under this Agreement.

 

(d)          SEC
Reports and Financial Statements. The Company has filed with the SEC, and has heretofore made available to Purchaser, true
and complete copies of all forms, reports, schedules, statements and other documents required to be filed by it under the Exchange
Act or the Securities Act. In addition, the Company has incorporated by reference into this Agreement the Company SEC Documents.

 

4.           Indemnification.
Purchaser agrees to indemnify, defend and hold harmless the Company and its respective affiliates and agents from and against any
and all demands, claims, actions or causes of action, judgments, assessments, losses, liabilities, damages or penalties and reasonable
attorneys’ fees and related disbursements incurred by the Company that arise out of or result from a breach of any representations
or warranties made by Purchaser herein, and Purchaser agrees that in the event of any breach of any representations or warranties
made by Purchaser herein, the Company may, at its option, forthwith rescind the sale of the Shares to Purchaser.

 

    	8

    	 

    

 

5.           Confidentiality.
Purchaser acknowledges and agrees that:

 

(a)          Certain
of the information contained herein is of a confidential nature and may be regarded as material non-public information under Regulation
FD of the Securities Act.

 

(b)          This
Agreement has been furnished to Purchaser by the Company for the sole purpose of enabling Purchaser to consider and evaluate an
investment in the Company, and will be kept confidential by Purchaser and not used for any other purpose.

 

(c)          Until
the time the information contained herein has been adequately disseminated to the public, the existence of this Agreement and the
information contained herein shall not, without the prior written consent of the Company, be disclosed by Purchaser to any person
or entity, other than Purchaser’s personal financial and legal advisors for the sole purpose of evaluating an investment
in the Company, and Purchaser will not, directly or indirectly, disclose or permit Purchaser’s personal financial and legal
advisors to disclose, any of such information without the prior written consent of the Company.

 

(d)          Purchaser
shall make its representatives aware of the terms of this Section 5 and to be responsible for any breach of this Agreement by such
representatives.

 

(e)          Purchaser
shall not, without the prior written consent of the Company, directly or indirectly, make any statements, public announcements
or release to trade publications or the press with respect to the contents or subject matter of this Agreement.

 

(f)          If
Purchaser decides to not pursue further investigation of the Company or to not participate in this private placement, Purchaser
will promptly return this Agreement and any accompanying documentation to the Company.

 

6.           Non-Public
Information. Purchaser acknowledges that certain information concerning the matters
that are the subject matter of this Agreement constitute material non-public information under United States federal securities
laws, and that United States federal securities laws prohibit any person who has received material non-public information relating
to the Company from purchasing or selling securities of the Company, or from communicating such information to any person under
circumstances in which it is reasonably foreseeable that such person is likely to purchase or sell securities of the Company. Accordingly,
until such time as any such non-public information has been adequately disseminated to the public, Purchaser shall not purchase
or sell any securities of the Company, or communicate such information to any other person.

 

    	9

    	 

    

 

7.           Short
Sales.  Each Purchaser covenants that neither it nor any affiliate acting
on its behalf or pursuant to any understanding with it will execute any Short Sales during the period commencing at the Discussion
Time and ending at the earlier of: (i) the date on which a registration statement covering the resale of the Securities is effective
under the Securities Act, or (ii) one (1) year from the date hereof.

 

8.           Entire
Agreement; No Third Party Beneficiaries. This Agreement contains the entire agreement
between the parties and supersedes all prior agreements and understandings, both written and oral, between the parties with respect
to the subject matter hereto, and no party shall be liable or bound to any other party in any manner by any warranties, representations,
guarantees or covenants except as specifically set forth in this Agreement. Purchaser acknowledges and agrees that, with the exception
of the information contained in this Agreement, Purchaser did not rely upon any statements or information, whether oral or written,
provided by the Company, or any of its officers, directors, employees, agents or representatives, in deciding to enter into this
Agreement or purchase the Shares. Nothing in this Agreement, express or implied, is intended to confer upon any person other than
the parties hereto or their respective successors and assigns any rights, remedies, obligations or liabilities under or by reason
of this Agreement, except as expressly provided in this Agreement.

 

9.           Amendment
and Modification. This Agreement may not be amended, modified or supplemented except
by an instrument or instruments in writing signed by the Company and the Purchaser.

 

10.         Extensions
and Waivers. At any time prior to the Closing, the parties hereto entitled to the
benefits of a term or provision may (a) extend the time for the performance of any of the obligations or other acts of the parties
hereto, (b) waive any inaccuracies in the representations and warranties contained herein or in any document, certificate or writing
delivered pursuant hereto, or (c) waive compliance with any obligation, covenant, agreement or condition contained herein. Any
agreement on the part of a party to any such extension or waiver shall be valid only if set forth in an instrument or instruments
in writing signed by the Company and the Purchaser. No failure or delay on the part of any party hereto in the exercise of any
right hereunder shall impair such right or be construed to be a waiver of, or acquiescence in, any breach of any representation,
warranty, covenant or agreement.

 

11.         Successors
and Assigns. This Agreement shall be binding upon and inure to the benefit of the
parties hereto and their respective successors and assigns; provided, however,
that no party hereto may assign its rights or delegate its obligations under this Agreement without the express prior written consent
of the other party hereto. Except as provided in Section 4, nothing in this Agreement is intended to confer upon any person not
a party hereto (and their successors and assigns) any rights, remedies, obligations or liabilities under or by reason of this Agreement.

 

    	10

    	 

    

 

12.         Survival
of Representations, Warranties and Covenants. The representations and warranties contained
herein shall survive the Closing and shall thereupon terminate 18 months from the Closing, except that the representations contained
in Sections 2(a), 2(b), 3(a), and 3(b) shall survive indefinitely. All covenants and agreements contained herein which by their
terms contemplate actions following the Closing shall survive the Closing and remain in full force and effect in accordance with
their terms. All other covenants and agreements contained herein shall not survive the Closing and shall thereupon terminate.

 

13.         Headings;
Definitions. The Section headings contained in this Agreement are inserted for convenience
of reference only and will not affect the meaning or interpretation of this Agreement. All references to Sections contained herein
mean Sections of this Agreement unless otherwise stated. All capitalized terms defined herein are equally applicable to both the
singular and plural forms of such terms.

 

14.         Severability.
If any provision of this Agreement or the application thereof to any person or circumstance is held to be invalid or unenforceable
to any extent, the remainder of this Agreement shall remain in full force and effect and shall be reformed to render the Agreement
valid and enforceable while reflecting to the greatest extent permissible the intent of the parties.

 

15.         Notices.
All notices hereunder shall be sufficiently given for all purposes hereunder if in writing and delivered personally, sent by documented
overnight delivery service or, to the extent receipt is confirmed, telecopy, telefax or other electronic transmission service to
the appropriate address or number as set forth below:

 

If to the Company:

 

Cytocore, Inc.

414 N. Orleans St., Suite 510

Chicago, Illinois 60654

Fax: (312) 222-9550

Attention: Chief Executive Officer

 

with a copy to:

 

Fox Rothschild LLP

997 Lenox Drive

Building 3

Lawrenceville, New Jersey 08648-2311

Fax: (609) 896-1469

Attention: Vincent A. Vietti,
Esquire

 

If to Purchaser:

 

To that address
indicated on the signature page hereof.

 

16.         Governing
Law. This Agreement shall be governed by and construed in accordance with the laws
of the State of Illinois, without regard to the laws that might otherwise govern under applicable principles of conflicts of laws
thereof, except to the extent that the General Corporation Law of the State of Delaware shall apply to the internal corporate governance
of the Company.

 

    	11

    	 

    

 

17.         Arbitration.
If a dispute arises as to the interpretation of this Agreement, it shall be decided in an arbitration proceeding conforming to
the Rules of the American Arbitration Association applicable to commercial arbitration then in effect at the time of the dispute.
The arbitration shall take place in Chicago, Illinois. The decision of the arbitrators shall be conclusively binding upon the parties
and final and such decision shall be enforceable as a judgment in any court of competent jurisdiction. The parties shall share
equally the costs of the arbitration.

 

18.         Counterparts.
This Agreement may be executed and delivered by facsimile in two or more counterparts, each of which shall be deemed to be an original,
but all of which together shall constitute one and the same agreement.

 

[Signature page follows]

 

    	12

    	 

    

 

IN WITNESS WHEREOF,
intending to be legally bound, the parties hereto have caused this Agreement to be executed as of the date set forth below.

 

	 	PURCHASER
	 	 
	Date: ____________________, 2013	______________________________________
	 	 
	 	 
	 	By: ___________________________________
	 	 
	 	Name: _____________________________
	 	 
	 	Title: ______________________________
	 	 
	 	Address:____________________________
	 	 
	 	___________________________________
	 	 
	 	___________________________________
	 	 
	 	Phone:______________________________
	 	 
	 	
        Social Security

        or Tax ID No.: _______________________

	 	 
	 	Number of Shares Purchased: ____________
	 	 
	 	Aggregate Purchase Price: $___________
	 	 
	 	____ Shares @ $0.02 per Share
	 	 
	 	 
	 	Delivery Instructions (if different than Address):
	 	 
	 	____________________________________
	 	____________________________________
	 	____________________________________
	 	 
	 	CYTOCORE, INC. 
	 	 
	Date:____________________, 2013	 
	 	By: ___________________________________
	 	 
	 	Name: ______________________________
	 	 
	 	Title: _______________________________

 

    	13

    	 

    

 

ANNEX A

 

CERTIFICATE OF TRANSFEROR OF SECURITIES

 

In connection with the proposed transfer of shares of Common
Stock (the “Shares”) of Cytocore, Inc. (the “Issuer”) pursuant to Rule 144 under the Securities
Act of 1933, the undersigned (“Seller”) hereby represents and warrants as follows:

 

1. I am not an affiliate (as that term is defined in the Securities
Act and the rules thereunder) of the Issuer and have not been an affiliate of the Issuer during the three (3) months preceding
the date of this letter.

 

2. A period of at least six (6) months [one (1) year] has elapsed
since the later of the date the

Shares were acquired from the Issuer or an affiliate of the
Issuer (calculated in accordance with Rule 144 of the Securities Act).

 

3. The full purchase price for the Shares has been paid to the
Issuer at least six (6) months [one (1)

year] prior to the date of this letter.

 

4. I am not aware of any facts or circumstances indicating that
I am or might be deemed an underwriter within the meaning of the Securities Act with respect to such Shares. I am not individually
or together with others engaged in making a distribution.

 

5. I am not transferring the Shares to close out a short position
that was created less than one (1) year prior to the date of that certain Securities Purchase Agreement by and between the Issuer
and the Seller dated ________, 201_.

 

    	14LIHUA 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 Robert Bruce, 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/ Robert C. Bruce
	Name:  Jianhua Zhu	 	Name: Robert C. Bruce
	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. In addition to the Base Fee, the Company agrees to pay the Independent Director a fee in cash of One Thousand Dollars
($1,000) per month (the “Audit Committee Chair Fee”), as long the Independent Director is serving as Chair of the Audit
Committee of the Board of Directors. The Base Fee and the Audit Committee Chair 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/ Robert C. Bruce
	Name:  Jianhua Zhu	 	Name: Robert C. Bruce
	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"}]]