Document:

Exhibit 10.44

 

ALBANY MOLECULAR RESEARCH,
INC.

 

SECOND AMENDED 2008 STOCK
OPTION AND INCENTIVE PLAN

 

SECTION
1. GENERAL PURPOSE OF THE PLAN; DEFINITIONS

 

The name of the plan is the Albany Molecular
Research, Inc. Second Amended 2008 Stock Option and Incentive Plan (the “Plan”). The purpose of the Plan is to encourage
and enable the officers, employees, Non-Employee Directors and other key persons (including consultants and prospective employees)
of Albany Molecular Research, Inc. (the “Company”) and its Subsidiaries upon whose judgment, initiative and efforts
the Company largely depends for the successful conduct of its business to acquire a proprietary interest in the Company. It is
anticipated that providing such persons with a direct stake in the Company’s welfare will assure a closer identification
of their interests with those of the Company and its stockholders, thereby stimulating their efforts on the Company’s behalf
and strengthening their desire to remain with the Company.

 

The following terms shall be defined as
set forth below:

 

“Act” means the Securities
Act of 1933, as amended, and the rules and regulations thereunder.

 

“Administrator” means
either the Board or the compensation committee of the Board or a similar committee performing the functions of the compensation
committee and which is comprised of not less than two Non-Employee Directors who are independent.

 

“Award” or “Awards,”
except where referring to a particular category of grant under the Plan, shall include Incentive Stock Options, Non-Qualified Stock
Options, Stock Appreciation Rights, Deferred Stock Awards, Restricted Stock Awards, Unrestricted Stock Awards, Cash-based Awards,
Performance Share Awards and Dividend Equivalent Rights.

 

“Award Agreement” means
a written or electronic agreement setting forth the terms and provisions applicable to an Award granted under the Plan. Each Award
Agreement is subject to the terms and conditions of the Plan.

 

“Board” means the Board
of Directors of the Company.

 

“Cash-based Award” means
an Award entitling the recipient to receive a cash-denominated payment.

 

“Code” means the Internal
Revenue Code of 1986, as amended, and any successor Code, and related rules, regulations and interpretations.

 

“Covered Employee” means
an employee who is a “Covered Employee” within the meaning of Section 162(m) of the Code.

 

“Deferred Stock Award”
means an Award of phantom stock units to a grantee.

 

“Dividend Equivalent Right”
means an Award entitling the grantee to receive credits based on cash dividends that would have been paid on the shares of Stock
specified in the Dividend Equivalent Right (or other award to which it relates) if such shares had been issued to and held by the
grantee.

 

“Effective Date” means
the date on which the Plan is approved by stockholders as set forth in Section 20.

 

“Exchange Act” means
the Securities Exchange Act of 1934, as amended, and the rules and regulations thereunder.

 

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“Fair Market Value” of
the Stock on any given date means the fair market value of the Stock determined in good faith by the Administrator; provided, however,
that if the Stock is admitted to quotation on the National Association of Securities Dealers Automated Quotation System (“NASDAQ”),
NASDAQ Global Market or another national securities exchange, the determination shall be made by reference to market quotations.
If there are no market quotations for such date, the determination shall be made by reference to the last date preceding such date
for which there are market quotations.

 

“Incentive Stock Option”
means any Stock Option designated and qualified as an “incentive stock option” as defined in Section 422 of the
Code.

 

“Non-Employee Director”
means a member of the Board who is not also an employee of the Company or any Subsidiary.

 

“Non-Qualified Stock Option”
means any Stock Option that is not an Incentive Stock Option.

 

“Option” or “Stock
Option” means any option to purchase shares of Stock granted pursuant to Section 5.

 

“Performance-based Award”
means any Restricted Stock Award, Deferred Stock Award, Performance Share Award or Cash-based Award granted to a Covered Employee
that is intended to qualify as “performance-based compensation” under Section 162(m) of the Code and the regulations
promulgated thereunder.

 

“Performance Criteria”
means the criteria that the Administrator selects for purposes of establishing the Performance Goal or Performance Goals for an
individual for a Performance Cycle. The Performance Criteria (which shall be applicable to the organizational level specified by
the Administrator, including, but not limited to, the Company or a unit, division, group, or Subsidiary of the Company) that will
be used to establish Performance Goals are limited to the following: earnings before interest, taxes, depreciation and amortization,
net income (loss) (either before or after interest, taxes, depreciation and/or amortization), changes in the market price of the
Stock, economic value-added, funds from operations or similar measure, sales or revenue, acquisitions or strategic transactions,
operating income (loss), cash flow (including, but not limited to, operating cash flow and free cash flow), return on capital,
assets, equity, or investment, stockholder returns, return on sales, gross or net profit levels, productivity, expense, margins,
operating efficiency, customer satisfaction, working capital, earnings (loss) per share of Stock, sales or market shares and number
of customers, any of which may be measured either in absolute terms or as compared to any incremental increase or as compared to
results of a peer group.

 

“Performance Cycle” means
one or more periods of time, which may be of varying and overlapping durations, as the Administrator may select, over which the
attainment of one or more Performance Criteria will be measured for the purpose of determining a grantee’s right to and the
payment of a Restricted Stock Award, Deferred Stock Award, Performance Share Award or Cash-based Award.

 

“Performance Goals” means,
for a Performance Cycle, the specific goals established in writing by the Administrator for a Performance Cycle based upon the
Performance Criteria.

 

“Performance Share Award”
means an Award entitling the recipient to acquire shares of Stock upon the attainment of specified Performance Goals.

 

“Restricted Stock Award”
means an Award entitling the recipient to acquire, at such purchase price (which may be zero) as determined by the Administrator,
shares of Stock subject to such restrictions and conditions as the Administrator may determine at the time of grant.

 

“Sale Event” shall mean
(i) the sale of all or substantially all of the assets of the Company on a consolidated basis to an unrelated person or entity,
(ii) a merger, reorganization or consolidation in which the outstanding shares of Stock are converted into or exchanged for securities
of the successor entity and the holders of the Company’s outstanding voting power immediately prior to such transaction do
not own a majority of the outstanding voting power of the successor entity immediately upon completion of such transaction, or
(iii) the sale of all of the Stock of the Company to an unrelated person or entity.

 

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“Sale Price” means the
value as determined by the Administrator of the consideration payable, or otherwise to be received by stockholders, per share of
Stock pursuant to a Sale Event.

 

“Section 409A” means
Section 409A of the Code and the regulations and other guidance promulgated thereunder.

 

“Stock” means the Common
Stock, par value $0.01 per share, of the Company, subject to adjustments pursuant to Section 3.

 

“Stock Appreciation Right”
means an Award entitling the recipient to receive shares of Stock having a value equal to the excess of the Fair Market Value of
the Stock on the date of exercise over the exercise price of the Stock Appreciation Right multiplied by the number of shares of
Stock with respect to which the Stock Appreciation Right shall have been exercised.

 

“Subsidiary” means any
corporation or other entity (other than the Company) in which the Company has at least a 50 percent interest, either directly or
indirectly.

 

“Ten Percent Owner” means
an employee who owns or is deemed to own (by reason of the attribution rules of Section 424(d) of the Code) more than 10 percent
of the combined voting power of all classes of stock of the Company or any parent or subsidiary corporation.

 

“Unrestricted Stock Award”
means an Award of shares of Stock free of any restrictions.

 

SECTION
2. ADMINISTRATION OF PLAN; ADMINISTRATOR AUTHORITY TO SELECT GRANTEES AND DETERMINE AWARDS

 

(a)          Administration
of Plan. The Plan shall be administered by the Administrator.

 

(b)          Powers
of Administrator. The Administrator shall have the power and authority to grant Awards consistent with the terms of the Plan,
including the power and authority:

 

(i)          to
select the individuals to whom Awards may from time to time be granted;

 

(ii)         to
determine the time or times of grant, and the extent, if any, of Incentive Stock Options, Non-Qualified Stock Options, Stock Appreciation
Rights, Restricted Stock Awards, Deferred Stock Awards, Unrestricted Stock Awards, Cash-based Awards, Performance Share Awards
and Dividend Equivalent Rights, or any combination of the foregoing, granted to any one or more grantees;

 

(iii)        to
determine the number of shares of Stock to be covered by any Award;

 

(iv)        to
determine and modify from time to time the terms and conditions, including restrictions, not inconsistent with the terms of the
Plan, of any Award, which terms and conditions may differ among individual Awards and grantees, and to approve the form of written
instruments evidencing the Awards;

 

(v)         to
accelerate at any time the exercisability or vesting of all or any portion of any Award;

 

(vi)        subject
to the provisions of Section 5(a)(ii), to extend at any time the period in which Stock Options may be exercised; and

 

(vii)       at
any time to adopt, alter and repeal such rules, guidelines and practices for administration of the Plan and for its own acts and
proceedings as it shall deem advisable; to interpret the terms and provisions of the Plan and any Award (including related written
instruments); to make all determinations it deems advisable for the administration of the Plan; to decide all disputes arising
in connection with the Plan; and to otherwise supervise the administration of the Plan.

 

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All decisions and interpretations of the
Administrator shall be binding on all persons, including the Company and Plan grantees.

 

(c)          Delegation
of Authority to Grant Options. Subject to applicable law, the Administrator, in its discretion, may delegate to the Chief Executive
Officer of the Company all or part of the Administrator’s authority and duties with respect to the granting of Options, to
individuals who are (i) not subject to the reporting and other provisions of Section 16 of the Exchange Act and (ii) not Covered
Employees. Any such delegation by the Administrator shall include a limitation as to the amount of Options that may be granted
during the period of the delegation and shall contain guidelines as to the determination of the exercise price and the vesting
criteria. The Administrator may revoke or amend the terms of a delegation at any time but such action shall not invalidate any
prior actions of the Administrator’s delegate or delegates that were consistent with the terms of the Plan.

 

(d)          Award
Agreement. Awards under the Plan shall be evidenced by Award Agreements that set forth the terms, conditions and limitations
for each Award which may include, without limitation, the term of an Award, the provisions applicable in the event employment or
service terminates, and the Company’s authority to unilaterally or bilaterally amend, modify, suspend, cancel or rescind
an Award.

 

(e)          Indemnification.
Neither the Board nor the Administrator, nor any member of either or any delegate thereof, shall be liable for any act, omission,
interpretation, construction or determination made in good faith in connection with the Plan, and the members of the Board and
the Administrator (and any delegate thereof) shall be entitled in all cases to indemnification and reimbursement by the Company
in respect of any claim, loss, damage or expense (including, without limitation, reasonable attorneys’ fees) arising or resulting
therefrom to the fullest extent permitted by law and/or under the Company’s articles or bylaws or any directors’ and
officers’ liability insurance coverage which may be in effect from time to time and/or any indemnification agreement between
such individual and the Company.

 

(f)          Foreign
Award Recipients. Notwithstanding any provision of the Plan to the contrary, in order to comply with the laws in other countries
in which the Company and its Subsidiaries operate or have employees or other individuals eligible for Awards, the Administrator,
in its sole discretion, shall have the power and authority to: (i) determine which Subsidiaries shall be covered by the Plan; (ii)
determine which individuals outside the United States are eligible to participate in the Plan; (iii) modify the terms and conditions
of any Award granted to individuals outside the United States to comply with applicable foreign laws; (iv) establish subplans and
modify exercise procedures and other terms and procedures, to the extent the Administrator determines such actions to be necessary
or advisable (and such subplans and/or modifications shall be attached to this Plan as appendices); provided, however, that no
such subplans and/or modifications shall increase the share limitations contained in Section 3(a) hereof; and (v) take any action,
before or after an Award is made, that the Administrator determines to be necessary or advisable to obtain approval or comply
with any local governmental regulatory exemptions or approvals. Notwithstanding the foregoing, the Administrator may not take any
actions hereunder, and no Awards shall be granted, that would violate the Exchange Act or any other applicable United States securities
law, the Code, or any other applicable United States governing statute or law.

 

SECTION
3. STOCK ISSUABLE UNDER THE PLAN; MERGERS; SUBSTITUTION

 

(a)          Stock
Issuable. The maximum number of shares of Stock reserved and available for issuance under the Plan shall be 5,700,000 shares,
subject to adjustment as provided in Section 3(b); provided that not more than 5,700,000 shares shall be issued in the form
of Incentive Stock Options. For purposes of this limitation, the shares of Stock underlying any Awards that are forfeited, canceled
or otherwise terminated (other than by exercise) shall be added back to the shares of Stock available for issuance under the Plan.
Shares tendered or held back upon exercise of an Option or settlement of an Award to cover the exercise price or tax withholding
shall not be available for future issuance under the Plan. In addition, upon exercise of Stock Appreciation Rights, the gross number
of shares exercised shall be deducted from the total number of shares remaining available for issuance under the Plan. Subject
to such overall limitations, shares of Stock may be issued up to such maximum number pursuant to any type or types of Award; provided,
however, that Stock Options or Stock Appreciation Rights with respect to no more than 300,000 shares of Stock may be granted to
any one individual grantee during any one calendar year period. The shares available for issuance under the Plan may be authorized
but unissued shares of Stock or shares of Stock reacquired by the Company.

 

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(b)          Changes
in Stock. Subject to Section 3(c) hereof, if, as a result of any reorganization, recapitalization, reclassification, stock
dividend, stock split, reverse stock split or other similar change in the Company’s capital stock, the outstanding shares
of Stock are increased or decreased or are exchanged for a different number or kind of shares or other securities of the Company,
or additional shares or new or different shares or other securities of the Company or other non-cash assets are distributed with
respect to such shares of Stock or other securities, or, if, as a result of any merger or consolidation, sale of all or substantially
all of the assets of the Company, the outstanding shares of Stock are converted into or exchanged for securities of the Company
or any successor entity (or a parent or subsidiary thereof), the Administrator shall make an appropriate or proportionate adjustment
in (i) the maximum number of shares reserved for issuance under the Plan, [including the maximum number of shares that may be issued
in the form of Unrestricted Stock Awards, Restricted Stock Awards, Deferred Stock Awards or Performance Share Awards,] (ii) the
number of Stock Options or Stock Appreciation Rights that can be granted to any one individual grantee and the maximum number of
shares that may be granted under a Performance-based Award, (iii) the number and kind of shares or other securities subject to
any then outstanding Awards under the Plan, (iv) the repurchase price, if any, per share subject to each outstanding Restricted
Stock Award, [(v) the number of Stock Options automatically granted to Non-Employee Directors,] and (vi) the price for each share
subject to any then outstanding Stock Options and Stock Appreciation Rights under the Plan, without changing the aggregate exercise
price (i.e., the exercise price multiplied by the number of Stock Options and Stock Appreciation Rights) as to which such Stock
Options and Stock Appreciation Rights remain exercisable. The Administrator shall also make equitable or proportionate adjustments
in the number of shares subject to outstanding Awards and the exercise price and the terms of outstanding Awards to take into consideration
cash dividends paid other than in the ordinary course or any other extraordinary corporate event. Notwithstanding the foregoing,
no adjustment shall be made under this Section 3(b) if the Administrator determines that such action could cause any Award to fail
to satisfy the conditions of any applicable exception from the requirements of Section 409A or otherwise could subject the grantee
to the additional tax imposed under Section 409A in respect of an outstanding Award or constitute a modification, extension or
renewal of an Incentive Stock Option within the meaning of Section 424(h) of the Code. The adjustment by the Administrator
shall be final, binding and conclusive. No fractional shares of Stock shall be issued under the Plan resulting from any such adjustment,
but the Administrator in its discretion may make a cash payment in lieu of fractional shares.

 

(c)          Mergers
and Other Transactions. Except as the Administrator may otherwise specify with respect to particular Awards in the relevant
Award documentation, in the case of and subject to the consummation of a Sale Event, all Options and Stock Appreciation Rights
that are not exercisable immediately prior to the effective time of the Sale Event shall become fully exercisable as of the effective
time of the Sale Event, all other Awards with time-based vesting, conditions or restrictions shall become fully vested and nonforfeitable
as of the effective time of the Sale Event and all Awards with conditions and restrictions relating to the attainment of performance
goals may become vested and nonforfeitable in connection with a Sale Event in the Administrator’s discretion, unless, in
any case, the parties to the Sale Event agree that Awards will be assumed or continued by the successor entity. Upon the effective
time of the Sale Event, the Plan and all outstanding Awards granted hereunder shall terminate, unless provision is made in connection
with the Sale Event in the sole discretion of the parties thereto for the assumption or continuation of Awards theretofore granted
by the successor entity, or the substitution of such Awards with new Awards of the successor entity or parent thereof, with appropriate
adjustment as to the number and kind of shares and, if appropriate, the per share exercise prices, as such parties shall agree
(after taking into account any acceleration hereunder). In the event of such termination, (i) the Company shall have the option
(in its sole discretion) to make or provide for a cash payment to the grantees holding Options and Stock Appreciation Rights, in
exchange for the cancellation thereof, in an amount equal to the difference between (A) the Sale Price multiplied by the number
of shares of Stock subject to outstanding Options and Stock Appreciation Rights (to the extent then exercisable (after taking into
account any acceleration hereunder) at prices not in excess of the Sale Price) and (B) the aggregate exercise price of all such
outstanding Options and Stock Appreciation Rights; or (ii) each grantee shall be permitted, within a specified period of time prior
to the consummation of the Sale Event as determined by the Administrator, to exercise all outstanding Options and Stock Appreciation
Rights held by such grantee.

 

(d)          Substitute
Awards. The Administrator may grant Awards under the Plan in substitution for stock and stock based awards held by employees,
directors or other key persons of another corporation in connection with the merger or consolidation of the employing corporation
with the Company or a Subsidiary or the acquisition by the Company or a Subsidiary of property or stock of the employing corporation.
The Administrator may direct that the substitute awards be granted on such terms and conditions as the Administrator considers
appropriate in the circumstances. Any substitute Awards granted under the Plan shall not count against the share limitation set
forth in Section 3(a).

 

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SECTION
4. ELIGIBILITY

 

Grantees under the Plan will be such full
or part-time officers and other employees, Non-Employee Directors and key persons (including consultants and prospective employees)
of the Company and its Subsidiaries as are selected from time to time by the Administrator in its sole discretion.

 

SECTION
5. STOCK OPTIONS 

 

Any Stock Option granted under the Plan
shall be in such form as the Administrator may from time to time approve.

 

Stock Options granted under the Plan may
be either Incentive Stock Options or Non-Qualified Stock Options. Incentive Stock Options may be granted only to employees of the
Company or any Subsidiary that is a “subsidiary corporation” within the meaning of Section 424(f) of the Code.
To the extent that any Option does not qualify as an Incentive Stock Option, it shall be deemed a Non-Qualified Stock Option.

 

(a)          Stock
Options Granted to Employees and Key Persons. The Administrator in its discretion may grant Stock Options to eligible employees
and key persons of the Company or any Subsidiary. Stock Options granted pursuant to this Section 5(a) shall be subject to
the following terms and conditions and shall contain such additional terms and conditions, not inconsistent with the terms of the
Plan, as the Administrator shall deem desirable. If the Administrator so determines, Stock Options may be granted in lieu of cash
compensation at the optionee’s election, subject to such terms and conditions as the Administrator may establish.

 

(i)          Exercise
Price. The exercise price per share for the Stock covered by a Stock Option granted pursuant to this Section 5(a) shall
be determined by the Administrator at the time of grant but shall not be less than 100 percent of the Fair Market Value on the
date of grant. In the case of an Incentive Stock Option that is granted to a Ten Percent Owner, the option price of such Incentive
Stock Option shall be not less than 110 percent of the Fair Market Value on the grant date.

 

(ii)         Option
Term. The term of each Stock Option shall be fixed by the Administrator, but no Stock Option shall be exercisable more than
ten years after the date the Stock Option is granted. In the case of an Incentive Stock Option that is granted to a Ten Percent
Owner, the term of such Stock Option shall be no more than five years from the date of grant.

 

(iii)        Exercisability;
Rights of a Stockholder. Stock Options shall become exercisable at such time or times, whether or not in installments, as shall
be determined by the Administrator at or after the grant date. The Administrator may at any time accelerate the exercisability
of all or any portion of any Stock Option. An optionee shall have the rights of a stockholder only as to shares acquired upon the
exercise of a Stock Option and not as to unexercised Stock Options.

 

(iv)        Method
of Exercise. Stock Options may be exercised in whole or in part, by giving written notice of exercise to the Company, specifying
the number of shares to be purchased. Payment of the purchase price may be made by one or more of the following methods to the
extent provided in the Option Award Agreement:

 

(A)         In
cash, by certified or bank check or other instrument acceptable to the Administrator;

 

(B)         Through
the delivery (or attestation to the ownership) of shares of Stock that have been purchased by the optionee on the open market or
that are beneficially owned by the optionee and are not then subject to restrictions under any Company plan. Such surrendered shares
shall be valued at Fair Market Value on the exercise date. To the extent required to avoid variable accounting treatment under
FAS 123R or other applicable accounting rules, such surrendered shares shall have been owned by the optionee for at least six months;
or

 

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(C)         By
the optionee delivering to the Company a properly executed exercise notice together with irrevocable instructions to a broker to
promptly deliver to the Company cash or a check payable and acceptable to the Company for the purchase price; provided that in
the event the optionee chooses to pay the purchase price as so provided, the optionee and the broker shall comply with such procedures
and enter into such agreements of indemnity and other agreements as the Administrator shall prescribe as a condition of such payment
procedure.

 

Payment instruments will be received subject to collection.
The transfer to the optionee on the records of the Company or of the transfer agent of the shares of Stock to be purchased pursuant
to the exercise of a Stock Option will be contingent upon receipt from the optionee (or a purchaser acting in his stead in accordance
with the provisions of the Stock Option) by the Company of the full purchase price for such shares and the fulfillment of any other
requirements contained in the Option Award Agreement or applicable provisions of laws (including the satisfaction of any withholding
taxes that the Company is obligated to withhold with respect to the optionee). In the event an optionee chooses to pay the purchase
price by previously-owned shares of Stock through the attestation method, the number of shares of Stock transferred to the optionee
upon the exercise of the Stock Option shall be net of the number of attested shares. In the event that the Company establishes,
for itself or using the services of a third party, an automated system for the exercise of Stock Options, such as a system using
an internet website or interactive voice response, then the paperless exercise of Stock Options may be permitted through the use
of such an automated system.

 

(v)         Annual
Limit on Incentive Stock Options. To the extent required for “incentive stock option” treatment under Section 422
of the Code, the aggregate Fair Market Value (determined as of the time of grant) of the shares of Stock with respect to which
Incentive Stock Options granted under this Plan and any other plan of the Company or its parent and subsidiary corporations become
exercisable for the first time by an optionee during any calendar year shall not exceed $100,000. To the extent that any Stock
Option exceeds this limit, it shall constitute a Non-Qualified Stock Option.

 

(b)          Stock
Options Granted to Non-Employee Directors.

 

(i)          Automatic
Grant of Options.

 

(A)         Each
Non-Employee Director who is serving as Director of the Company shall be granted a Non-Qualified Stock Option to acquire shares
of Stock valued at $35,000 on the grant date (valued using the Black Sholes valuation model). The Stock Options to such Directors
shall be granted at the same time as the annual grant of equity to the management team or in no event more than five (5) business
days following the annual shareholders meeting..

 

(B)         The
exercise price per share for the Stock covered by a Stock Option granted under this Section 5(b) shall be equal to the Fair
Market Value of the Stock on the date the Stock Option is granted.

 

(C)         The
Administrator, in its discretion, may grant additional Non-Qualified Stock Options to Non-Employee Directors. Any such grant may
vary among individual Non-Employee Directors.

 

(ii)         Exercise;
Termination.

 

(A)         Unless
otherwise determined by the Administrator, an Option granted under Section 5(b) shall not be exercisable after the expiration
of ten years from the date of grant.

 

(B)         Options
granted under this Section 5(b) may be exercised only by written notice to the Company specifying the number of shares to
be purchased. Payment of the full purchase price of the shares to be purchased may be made by one or more of the methods specified
in Section 5(a)(iv). An optionee shall have the rights of a stockholder only as to shares acquired upon the exercise of a
Stock Option and not as to unexercised Stock Options.

 

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SECTION
6. STOCK APPRECIATION RIGHTS

 

(a)          Exercise
Price of Stock Appreciation Rights. The exercise price of a Stock Appreciation Right shall not be less than 100 percent of
the Fair Market Value of the Stock on the date of grant.

 

(b)          Grant
and Exercise of Stock Appreciation Rights. Stock Appreciation Rights may be granted by the Administrator independently of any
Stock Option granted pursuant to Section 5 of the Plan.

 

(c)          Terms
and Conditions of Stock Appreciation Rights. Stock Appreciation Rights shall be subject to such terms and conditions as shall
be determined from time to time by the Administrator.

 

SECTION
7. RESTRICTED STOCK AWARDS

 

(a)          Nature
of Restricted Stock Awards. The Administrator shall determine the restrictions and conditions applicable to each Restricted
Stock Award at the time of grant. Conditions may be based on continuing employment (or other service relationship) and/or achievement
of pre-established performance goals and objectives. The grant of a Restricted Stock Award is contingent on the grantee executing
the Restricted Stock Award Agreement. The terms and conditions of each such Award Agreement shall be determined by the Administrator,
and such terms and conditions may differ among individual Awards and grantees.

 

(b)          Rights
as a Stockholder. Upon execution of the Restricted Stock Award Agreement and payment of any applicable purchase price, a grantee
shall have the rights of a stockholder with respect to the voting of the Restricted Stock, subject to such conditions contained
in the Restricted Stock Award Agreement. Unless the Administrator shall otherwise determine, (i) uncertificated Restricted Stock
shall be accompanied by a notation on the records of the Company or the transfer agent to the effect that they are subject to forfeiture
until such Restricted Stock are vested as provided in Section 7(d) below, and (ii) certificated Restricted Stock shall remain in
the possession of the Company until such Restricted Stock is vested as provided in Section 7(d) below, and the grantee shall
be required, as a condition of the grant, to deliver to the Company such instruments of transfer as the Administrator may prescribe.

 

(c)          Restrictions.
Restricted Stock may not be sold, assigned, transferred, pledged or otherwise encumbered or disposed of except as specifically
provided herein or in the Restricted Stock Award Agreement. Except as may otherwise be provided by the Administrator either in
the Award Agreement or, subject to Section 18 below, in writing after the Award Agreement is issued if a grantee’s employment
(or other service relationship) with the Company and its Subsidiaries terminates for any reason, any Restricted Stock that has
not vested at the time of termination shall automatically and without any requirement of notice to such grantee from or other action
by or on behalf of, the Company be deemed to have been reacquired by the Company at its original purchase price (if any) from such
grantee or such grantee’s legal representative simultaneously with such termination of employment (or other service relationship),
and thereafter shall cease to represent any ownership of the Company by the grantee or rights of the grantee as a stockholder.
Following such deemed reacquisition of unvested Restricted Stock that are represented by physical certificates, a grantee shall
surrender such certificates to the Company upon request without consideration.

 

(d)          Vesting
of Restricted Stock. The Administrator at the time of grant shall specify the date or dates and/or the attainment of pre-established
performance goals, objectives and other conditions on which the non-transferability of the Restricted Stock and the Company’s
right of repurchase or forfeiture shall lapse. Notwithstanding the foregoing, in the event that any such Restricted Stock granted
to employees shall have a performance-based goal, the restriction period with respect to such shares shall not be less than one
year, and in the event any such Restricted Stock granted to employees shall have a time-based restriction, the total restriction
period with respect to such shares shall not be less than three years; provided, however, that Restricted Stock with a time-based
restriction may become vested incrementally over such three-year period. Subsequent to such date or dates and/or the attainment
of such pre-established performance goals, objectives and other conditions, the shares on which all restrictions have lapsed shall
no longer be Restricted Stock and shall be deemed “vested.” Except as may otherwise be provided by the Administrator
either in the Award Agreement or, subject to Section 18 below, in writing after the Award Agreement is issued, a grantee’s
rights in any shares of Restricted Stock that have not vested shall automatically terminate upon the grantee’s termination
of employment (or other service relationship) with the Company and its Subsidiaries and such shares shall be subject to the provisions
of Section 7(c) above.

 

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(e)          Restricted
Stock Granted to Non-Employee Directors

 

(i)          Automatic
Grant of Restricted Stock.

 

(A)         Each
Non-Employee Director who is serving as Director of the Company shall be granted restricted stock valued at $35,000 on the grant
date (based on the value on date of grant). The restricted stock to such Directors shall be granted at the same time as the annual
grant of equity to the management team or in no event more than five (5) business days following the annual shareholders meeting.

 

SECTION
8. DEFERRED STOCK AWARDS

 

(a)          Nature
of Deferred Stock Awards. The Administrator shall determine the restrictions and conditions applicable to each Deferred Stock
Award at the time of grant. Conditions may be based on continuing employment (or other service relationship) and/or achievement
of pre-established performance goals and objectives. The grant of a Deferred Stock Award is contingent on the grantee executing
the Deferred Stock Award Agreement. The terms and conditions of each such Award Agreement shall be determined by the Administrator,
and such terms and conditions may differ among individual Awards and grantees. Notwithstanding the foregoing, in the event that
any such Deferred Stock Award granted to employees shall have a performance-based goal, the restriction period with respect to
such Award shall not be less than one year, and in the event any such Deferred Stock Award granted to employees shall have a time-based
restriction, the total restriction period with respect to such Award shall not be less than three years; provided, however, that
any Deferred Stock Award with a time-based restriction may become vested incrementally over such three-year period. At the end
of the deferral period, the Deferred Stock Award, to the extent vested, shall be settled in the form of shares of Stock.

 

(b)          Election
to Receive Deferred Stock Awards in Lieu of Compensation. The Administrator may, in its sole discretion, permit a grantee to
elect to receive a portion of future cash compensation otherwise due to such grantee in the form of a Deferred Stock Award. Any
such election shall be made in writing and shall be delivered to the Company no later than the date specified by the Administrator
and in accordance with Section 409A and such other rules and procedures established by the Administrator. Any such future cash
compensation that the grantee elects to defer shall be converted to a fixed number of phantom stock units based on the Fair Market
Value of Stock on the date the compensation would otherwise have been paid to the grantee if such payment had not been deferred
as provided herein. The Administrator shall have the sole right to determine whether and under what circumstances to permit such
elections and to impose such limitations and other terms and conditions thereon as the Administrator deems appropriate. 

 

(c)          Rights
as a Stockholder. A grantee shall have the rights as a stockholder only as to shares of Stock acquired by the grantee upon
settlement of a Deferred Stock Award; provided, however, that the grantee may be credited with Dividend Equivalent Rights with
respect to the phantom stock units underlying his Deferred Stock Award, subject to such terms and conditions as the Administrator
may determine. 

 

(d)          Termination.
Except as may otherwise be provided by the Administrator either in the Award Agreement or, subject to Section 18 below, in
writing after the Award Agreement is issued, a grantee’s right in all Deferred Stock Awards that have not vested shall automatically
terminate upon the grantee’s termination of employment (or cessation of service relationship) with the Company and its Subsidiaries
for any reason.

 

SECTION
9. UNRESTRICTED STOCK AWARDS

 

Grant or Sale of Unrestricted Stock.
The Administrator may, in its sole discretion, grant (or sell at par value or such higher purchase price determined by the Administrator)
an Unrestricted Stock Award under the Plan. Unrestricted Stock Awards may be granted in respect of past services or other valid
consideration, or in lieu of cash compensation due to such grantee.

 

    	9

    	 

    

 

SECTION
10. CASH-BASED AWARDS

 

(a)          Grant
of Cash-based Awards. The Administrator may, in its sole discretion, grant Cash-based Awards to any grantee in such number
or amount and upon such terms, and subject to such conditions, as the Administrator shall determine at the time of grant. The Administrator
shall determine the maximum duration of the Cash-based Award, the amount of cash to which the Cash-based Award pertains, the conditions
upon which the Cash-based Award shall become vested or payable, and such other provisions as the Administrator shall determine.
Each Cash-based Award shall specify a cash-denominated payment amount, formula or payment ranges as determined by the Administrator.
Payment, if any, with respect to a Cash-based Award shall be made in accordance with the terms of the Award and may be made in
cash or in shares of Stock, as the Administrator determines. 

 

SECTION
11. PERFORMANCE SHARE AWARDS

 

(a)          Nature
of Performance Share Awards. The Administrator may, in its sole discretion, grant Performance Share Awards independent of,
or in connection with, the granting of any other Award under the Plan. The Administrator shall determine whether and to whom Performance
Share Awards shall be granted, the Performance Goals, the periods during which performance is to be measured, which may not be
less than one year, and such other limitations and conditions as the Administrator shall determine.

 

(b)          Rights
as a Stockholder. A grantee receiving a Performance Share Award shall have the rights of a stockholder only as to shares actually
received by the grantee under the Plan and not with respect to shares subject to the Award but not actually received by the grantee.
A grantee shall be entitled to receive shares of Stock under a Performance Share Award only upon satisfaction of all conditions
specified in the Performance Share Award agreement (or in a performance plan adopted by the Administrator).

 

(c)          Termination.
Except as may otherwise be provided by the Administrator either in the Award agreement or, subject to Section 18 below, in
writing after the Award agreement is issued, a grantee’s rights in all Performance Share Awards shall automatically terminate
upon the grantee’s termination of employment (or cessation of service relationship) with the Company and its Subsidiaries
for any reason.

 

SECTION
12. PERFORMANCE-BASED AWARDS TO COVERED EMPLOYEES

 

(a)          Performance-based
Awards. Any employee or other key person providing services to the Company and who is selected by the Administrator may be
granted one or more Performance-based Awards in the form of a Restricted Stock Award, Deferred Stock Award, Performance Share Awards
or Cash-based Award payable upon the attainment of Performance Goals that are established by the Administrator and relate to one
or more of the Performance Criteria, in each case on a specified date or dates or over any period or periods determined by the
Administrator. The Administrator shall define in an objective fashion the manner of calculating the Performance Criteria it selects
to use for any Performance Period. Depending on the Performance Criteria used to establish such Performance Goals, the Performance
Goals may be expressed in terms of overall Company performance or the performance of a division, business unit, or an individual.
The Administrator, in its discretion, may adjust or modify the calculation of Performance Goals for such Performance Period in
order to prevent the dilution or enlargement of the rights of an individual (i) in the event of, or in anticipation of, any unusual
or extraordinary corporate item, transaction, event or development, (ii) in recognition of, or in anticipation of, any other unusual
or nonrecurring events affecting the Company, or the financial statements of the Company, or (iii) in response to, or in anticipation
of, changes in applicable laws, regulations, accounting principles, or business conditions provided however, that the Administrator
may not exercise such discretion in a manner that would increase the Performance-based Award granted to a Covered Employee. Each
Performance-based Award shall comply with the provisions set forth below.

 

(b)          Grant
of Performance-based Awards. With respect to each Performance-based Award granted to a Covered Employee, the Administrator
shall select, within the first 90 days of a Performance Cycle (or, if shorter, within the maximum period allowed under Section 162(m)
of the Code) the Performance Criteria for such grant, and the Performance Goals with respect to each Performance Criterion (including
a threshold level of performance below which no amount will become payable with respect to such Award). Each Performance-based
Award will specify the amount payable, or the formula for determining the amount payable, upon achievement of the various applicable
performance targets. The Performance Criteria established by the Administrator may be (but need not be) different for each Performance
Cycle and different Performance Goals may be applicable to Performance-based Awards to different Covered Employees.

 

    	10

    	 

    

 

(c)          Payment
of Performance-based Awards. Following the completion of a Performance Cycle, the Administrator shall meet to review and certify
in writing whether, and to what extent, the Performance Goals for the Performance Cycle have been achieved and, if so, to also
calculate and certify in writing the amount of the Performance-based Awards earned for the Performance Cycle. The Administrator
shall then determine the actual size of each Covered Employee’s Performance-based Award, and, in doing so, may reduce or
eliminate the amount of the Performance-based Award for a Covered Employee if, in its sole judgment, such reduction or elimination
is appropriate.

 

(d)          Maximum
Award Payable. The maximum Performance-based Award payable to any one Covered Employee under the Plan for a Performance Cycle
is 100,000 Shares (subject to adjustment as provided in Section 3(b) hereof) or $500,000 in the case of a Performance-based
Award that is a Cash-based Award.

 

SECTION
13. DIVIDEND EQUIVALENT RIGHTS

 

(a)          Dividend
Equivalent Rights. A Dividend Equivalent Right may be granted hereunder to any grantee as a component of another Award or as
a freestanding award. The terms and conditions of Dividend Equivalent Rights shall be specified in the Award Agreement. Dividend
equivalents credited to the holder of a Dividend Equivalent Right may be paid currently or may be deemed to be reinvested in additional
shares of Stock, which may thereafter accrue additional equivalents. Any such reinvestment shall be at Fair Market Value on the
date of reinvestment or such other price as may then apply under a dividend reinvestment plan sponsored by the Company, if any.
Dividend Equivalent Rights may be settled in cash or shares of Stock or a combination thereof, in a single installment or installments.
A Dividend Equivalent Right granted as a component of another Award may provide that such Dividend Equivalent Right shall be settled
upon exercise, settlement, or payment of, or lapse of restrictions on, such other Award, and that such Dividend Equivalent Right
shall expire or be forfeited or annulled under the same conditions as such other Award. A Dividend Equivalent Right granted as
a component of another Award may also contain terms and conditions different from such other Award.

 

(b)          Interest
Equivalents. Any Award under this Plan that is settled in whole or in part in cash on a deferred basis may provide in the grant
for interest equivalents to be credited with respect to such cash payment. Interest equivalents may be compounded and shall be
paid upon such terms and conditions as may be specified by the grant.

 

(c)          Termination.
Except as may otherwise be provided by the Administrator either in the Award Agreement or, subject to Section 18 below, in
writing after the Award Agreement is issued, a grantee’s rights in all Dividend Equivalent Rights or interest equivalents
granted as a component of another Award that has not vested shall automatically terminate upon the grantee’s termination
of employment (or cessation of service relationship) with the Company and its Subsidiaries for any reason.

 

SECTION
14. Transferability of Awards

 

(a)          Transferability.
Except as provided in Section 14(b) below, during a grantee’s lifetime, his or her Awards shall be exercisable only
by the grantee, or by the grantee’s legal representative or guardian in the event of the grantee’s incapacity. No Awards
shall be sold, assigned, transferred or otherwise encumbered or disposed of by a grantee other than by will or by the laws of descent
and distribution. No Awards shall be subject, in whole or in part, to attachment, execution, or levy of any kind, and any purported
transfer in violation hereof shall be null and void.

 

(b)          Administrator
Action. Notwithstanding Section 14(a), the Administrator, in its discretion, may provide either in the Award Agreement
regarding a given Award or by subsequent written approval that the grantee (who is an employee or director) may transfer his or
her Awards (other than any Incentive Stock Options) to his or her immediate family members, to trusts for the benefit of such family
members, or to partnerships in which such family members are the only partners, provided that the transferee agrees in writing
with the Company to be bound by all of the terms and conditions of this Plan and the applicable Award. 

 

    	11

    	 

    

 

(c)          Family
Member. For purposes of Section 14(b), “family member” shall mean a grantee’s child, stepchild, grandchild,
parent, stepparent, grandparent, spouse, former spouse, sibling, niece, nephew, mother-in-law, father-in-law, son-in-law, daughter-in-law,
brother-in-law, or sister-in-law, including adoptive relationships, any person sharing the grantee’s household (other than
a tenant of the grantee), a trust in which these persons (or the grantee) have more than 50 percent of the beneficial interest,
a foundation in which these persons (or the grantee) control the management of assets, and any other entity in which these persons
(or the grantee) own more than 50 percent of the voting interests.

 

(d)          Designation
of Beneficiary. Each grantee to whom an Award has been made under the Plan may designate a beneficiary or beneficiaries to
exercise any Award or receive any payment under any Award payable on or after the grantee’s death. Any such designation shall
be on a form provided for that purpose by the Administrator and shall not be effective until received by the Administrator. If
no beneficiary has been designated by a deceased grantee, or if the designated beneficiaries have predeceased the grantee, the
beneficiary shall be the grantee’s estate.

 

SECTION
15. TAX WITHHOLDING

 

(a)          Payment
by Grantee. Each grantee shall, no later than the date as of which the value of an Award or of any Stock or other amounts received
thereunder first becomes includable in the gross income of the grantee for Federal income tax purposes, pay to the Company, or
make arrangements satisfactory to the Administrator regarding payment of, any Federal, state, or local taxes of any kind required
by law to be withheld by the Company with respect to such income. The Company and its Subsidiaries shall, to the extent permitted
by law, have the right to deduct any such taxes from any payment of any kind otherwise due to the grantee. The Company’s
obligation to deliver evidence of book entry (or stock certificates) to any grantee is subject to and conditioned on tax withholding
obligations being satisfied by the grantee.

 

(b)          Payment
in Stock. Subject to approval by the Administrator, a grantee may elect to have the Company’s minimum required tax withholding
obligation satisfied, in whole or in part, by authorizing the Company to withhold from shares of Stock to be issued pursuant to
any Award a number of shares with an aggregate Fair Market Value (as of the date the withholding is effected) that would satisfy
the withholding amount due.

 

SECTION
16. Additional Conditions Applicable to Nonqualified Deferred Compensation Under Section
409A. 

 

In the event any Stock Option or Stock Appreciation
Right under the Plan is materially modified and deemed a new grant at a time when the Fair Market Value exceeds the exercise price,
or any other Award is otherwise determined to constitute “nonqualified deferred compensation” within the meaning of
Section 409A (a “409A Award”), the following additional conditions shall apply and shall supersede any contrary provisions
of this Plan or the terms of any agreement relating to such 409A Award.

 

(a)          Exercise
and Distribution. Except as provided in Section 16(b) hereof, no 409A Award shall be exercisable or distributable earlier than
upon one of the following: 

 

(i)          Specified
Time. A specified time or a fixed schedule set forth in the written instrument evidencing the 409A Award. 

 

(ii)         Separation
from Service. Separation from service (within the meaning of Section 409A) by the 409A Award grantee; provided, however, that
if the 409A Award grantee is a “key employee” (as defined in Section 416(i) of the Code without regard to paragraph
(5) thereof) and any of the Company’s Stock is publicly traded on an established securities market or otherwise, exercise
or distribution under this Section 16(a)(ii) may not be made before the date that is six months after the date of separation from
service.

 

(iii)        Death.
The date of death of the 409A Award grantee.

 

    	12

    	 

    

 

(iv)        Disability.
The date the 409A Award grantee becomes disabled (within the meaning of Section 16(c)(ii) hereof).

 

(v)         Unforeseeable
Emergency. The occurrence of an unforeseeable emergency (within the meaning of Section 16(c)(iii) hereof), but only if the
net value (after payment of the exercise price) of the number of shares of Stock that become issuable does not exceed the amounts
necessary to satisfy such emergency plus amounts necessary to pay taxes reasonably anticipated as a result of the exercise, after
taking into account the extent to which the emergency is or may be relieved through reimbursement or compensation by insurance
or otherwise or by liquidation of the grantee’s other assets (to the extent such liquidation would not itself cause severe
financial hardship).

 

(vi)        Change
in Control Event. The occurrence of a Change in Control Event (within the meaning of Section 16(c)(i) hereof), including the
Company’s discretionary exercise of the right to accelerate vesting of such grant upon a Change in Control Event or to terminate
the Plan or any 409A Award granted hereunder within 12 months of the Change in Control Event.

 

(b)          No
Acceleration. A 409A Award may not be accelerated or exercised prior to the time specified in Section 16(a) hereof, except
in the case of one of the following events: 

 

(i)          Domestic
Relations Order. The 409A Award may permit the acceleration of the exercise or distribution time or schedule to an individual
other than the grantee as may be necessary to comply with the terms of a domestic relations order (as defined in Section 414(p)(1)(B)
of the Code). 

 

(ii)         Conflicts
of Interest. The 409A Award may permit the acceleration of the exercise or distribution time or schedule as may be necessary
to comply with the terms of a certificate of divestiture (as defined in Section 1043(b)(2) of the Code).

 

(iii)        Change
in Control Event. The Administrator may exercise the discretionary right to accelerate the vesting of such 409A Award upon
a Change in Control Event or to terminate the Plan or any 409A Award granted thereunder within 12 months of the Change in Control
Event and cancel the 409A Award for compensation.

 

(c)          Definitions.
Solely for purposes of this Section 16 and not for other purposes of the Plan, the following terms shall be defined as set forth
below: 

 

(i)          “Change
in Control Event” means the occurrence of a change in the ownership of the Company, a change in effective control of the
Company, or a change in the ownership of a substantial portion of the assets of the Company (as defined in Section 1.409A-3(g)
of the proposed regulations promulgated under Section 409A by the Department of the Treasury on September 29, 2005 or any subsequent
guidance). 

 

(ii)         “Disabled”
means a grantee who (i) is unable to engage in any substantial gainful activity by reason of any medically determinable physical
or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than
12 months, or (ii) is, by reason of any medically determinable physical or mental impairment that can be expected to result in
death or can be expected to last for a continuous period of not less than 12 months, receiving income replacement benefits for
a period of not less than three months under an accident and health plan covering employees of the Company or its Subsidiaries.

 

(iii)        “Unforeseeable
Emergency” means a severe financial hardship to the grantee resulting from an illness or accident of the grantee, the grantee’s
spouse, or a dependent (as defined in Section 152(a) of the Code) of the grantee, loss of the grantee’s property due to casualty,
or similar extraordinary and unforeseeable circumstances arising as a result of events beyond the control of the grantee.

 

    	13

    	 

    

 

SECTION
17. TRANSFER, LEAVE OF ABSENCE, ETC.

 

For purposes of the Plan, the following
events shall not be deemed a termination of employment:

 

(a)          a
transfer to the employment of the Company from a Subsidiary or from the Company to a Subsidiary, or from one Subsidiary to another;
or

 

(b)          an
approved leave of absence for military service or sickness, or for any other purpose approved by the Company, if the employee’s
right to re-employment is guaranteed either by a statute or by contract or under the policy pursuant to which the leave of absence
was granted or if the Administrator otherwise so provides in writing.

 

SECTION
18. AMENDMENTS AND TERMINATION

 

The Board may, at any time, amend or discontinue
the Plan and the Administrator may, at any time, amend or cancel any outstanding Award for the purpose of satisfying changes in
law or for any other lawful purpose, but no such action shall adversely affect rights under any outstanding Award without the holder’s
consent. Except as provided in Section 3(b) or 3(c), in no event may the Administrator exercise its discretion to reduce the exercise
price of outstanding Stock Options or Stock Appreciation Rights or effect repricing through cancellation and re-grants. To the
extent required under the rules of any securities exchange or market system on which the Stock is listed, to the extent determined
by the Administrator to be required by the Code to ensure that Incentive Stock Options granted under the Plan are qualified under
Section 422 of the Code, or to ensure that compensation earned under Awards qualifies as performance-based compensation under
Section 162(m) of the Code, Plan amendments shall be subject to approval by the Company stockholders entitled to vote at a
meeting of stockholders. Nothing in this Section 18 shall limit the Administrator’s authority to take any action permitted
pursuant to Section 3(c).

 

SECTION
19. STATUS OF PLAN

 

With respect to the portion of any Award
that has not been exercised and any payments in cash, Stock or other consideration not received by a grantee, a grantee shall have
no rights greater than those of a general creditor of the Company unless the Administrator shall otherwise expressly determine
in connection with any Award or Awards. In its sole discretion, the Administrator may authorize the creation of trusts or other
arrangements to meet the Company’s obligations to deliver Stock or make payments with respect to Awards hereunder, provided
that the existence of such trusts or other arrangements is consistent with the foregoing sentence.

 

SECTION
20. GENERAL PROVISIONS

 

(a)          No
Distribution. The Administrator may require each person acquiring Stock pursuant to an Award to represent to and agree with
the Company in writing that such person is acquiring the shares without a view to distribution thereof.

 

(b)          Delivery
of Stock Certificates. Stock certificates to grantees under this Plan shall be deemed delivered for all purposes when the Company
or a stock transfer agent of the Company shall have mailed such certificates in the United States mail, addressed to the grantee,
at the grantee’s last known address on file with the Company. Uncertificated Stock shall be deemed delivered for all purposes
when the Company or a Stock transfer agent of the Company shall have given to the grantee by electronic mail (with proof of receipt)
or by United States mail, addressed to the grantee, at the grantee’s last known address on file with the Company, notice
of issuance and recorded the issuance in its records (which may include electronic “book entry” records). Notwithstanding
anything herein to the contrary, the Company shall not be required to issue or deliver any certificates evidencing shares of Stock
pursuant to the exercise of any Award, unless and until the Administrator has determined, with advice of counsel (to the extent
the Administrator deems such advice necessary or advisable), that the issuance and delivery of such certificates is in compliance
with all applicable laws, regulations of governmental authorities and, if applicable, the requirements of any exchange on which
the shares of Stock are listed, quoted or traded. All Stock certificates delivered pursuant to the Plan shall be subject to any
stop-transfer orders and other restrictions as the Administrator deems necessary or advisable to comply with federal, state or
foreign jurisdiction, securities or other laws, rules and quotation system on which the Stock is listed, quoted or traded. The
Administrator may place legends on any Stock certificate to reference restrictions applicable to the Stock. In addition to the
terms and conditions provided herein, the Administrator may require that an individual make such reasonable covenants, agreements,
and representations as the Administrator, in its discretion, deems necessary or advisable in order to comply with any such laws,
regulations, or requirements. The Administrator shall have the right to require any individual to comply with any timing or other
restrictions with respect to the settlement or exercise of any Award, including a window-period limitation, as may be imposed in
the discretion of the Administrator. 

 

    	14

    	 

    

 

(c)          Stockholder
Rights. Until Stock is deemed delivered in accordance with Section 20(b), no right to vote or receive dividends or any other
rights of a stockholder will exist with respect to shares of Stock to be issued in connection with an Award, notwithstanding the
exercise of a Stock Option or any other action by the grantee with respect to an Award.

 

(d)          Other
Compensation Arrangements; No Employment Rights. Nothing contained in this Plan shall prevent the Board from adopting other
or additional compensation arrangements, including trusts, and such arrangements may be either generally applicable or applicable
only in specific cases. The adoption of this Plan and the grant of Awards do not confer upon any employee any right to continued
employment with the Company or any Subsidiary.

 

(e)          Trading
Policy Restrictions. Option exercises and other Awards under the Plan shall be subject to such Company’s insider trading
policy and procedures, as in effect from time to time.

 

(f)          Forfeiture
of Awards under Sarbanes-Oxley Act. If the Company is required to prepare an accounting restatement due to the material noncompliance
of the Company, as a result of misconduct, with any financial reporting requirement under the securities laws, then any grantee
who is one of the individuals subject to automatic forfeiture under Section 304 of the Sarbanes-Oxley Act of 2002 shall reimburse
the Company for the amount of any Award received by such individual under the Plan during the 12-month period following the first
public issuance or filing with the United States Securities and Exchange Commission, as the case may be, of the financial document
embodying such financial reporting requirement.

 

SECTION
21. EFFECTIVE DATE OF PLAN

 

This Plan shall become effective upon approval
by the holders of a majority of the votes cast at a meeting of stockholders at which a quorum is present. No grants of Stock Options
and other Awards may be made hereunder after the tenth anniversary of the date the Second Amended Plan is approved by stockholders
and no grants of Incentive Stock Options may be made hereunder after the tenth anniversary of the date the Second Amended Plan
is approved by the Board.

 

SECTION
22. GOVERNING LAW

 

This Plan and all Awards and actions taken
thereunder shall be governed by, and construed in accordance with, the laws of the State of Delaware, applied without regard to
conflict of law principles.

 

	ORIGINAL 2008 STOCK INCENTIVE PLAN	 	 
	 	 	 
	DATE APPROVED BY BOARD OF DIRECTORS:	 	February 7, 2008
	DATE APPROVED BY STOCKHOLDERS:	 	 June 4, 2008
	 	 	 
	AMENDED 2008 STOCK INCENTIVE PLAN	 	 
	 	 	 
	DATE APPROVED BY BOARD OF DIRECTORS:	 	March 22, 2011
	DATE APPROVED BY STOCKHOLDERS:	 	 June 1, 2011
	 	 	 
	SECOND AMENDED 2008 STOCK INCENTIVE PLAN	 	 
	 	 	 
	DATE APPROVED BY BOARD OF DIRECTORS:	 	January 31, 2013
	DATE APPROVED BY STOCKHOLDERS:	 	June 5, 2013

 

    	15EXHIBIT 10.5

 

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 Robert Bruce, a citizen
of the United States, with the following address:                                           (the “Independent Director”).

 

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.

 

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.

 

    	 

    	 

    

 

(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.

 

    	 

    	 

    

 

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.

 

    	 

    	 

    

 

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.

 

    	 

    	 

    

 

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 Independent Director, to: Robert
Bruce. Address: c/o Oakmont Advisory Group, LLC, P.O. Box 8181, Portland, ME 04104, U.S.A.

 

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.

 

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	 
	 	 

 

    	 

    	 

    

 

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.

 

    	 

    	 

    

 

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

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