Unassociated Document


    PRELIMINARY
      EMPLOYMENT AGREEMENT

    


    The
      Preliminary Employment Agreement is entered into as of June 25, 2007 between
      Elaine Zhao (“Zhao”), and Biostar Pharmaceuticals Inc. (the ‘Company”). Zhao
      hereby agrees to serve as Chief Financial Officer of Biostar Pharmaceutical,
      Inc., for an initial period of two years. The annual compensation, paid
      quarterly at the beginning of each quarter, shall be US$45,000.

    


    Specific
      responsibilities shall include:

     

    
      
        	
                1.

              	
                Review
                  of the historical accounting records

              
	
                2.

              	
                Implementation
                  of appropriate internal financial controls.

              
	
                3.

              	
                Interacting
                  with the Company’s internal accounting staff

              
	
                4.

              	
                Liaison
                  with the Company’s auditors and securities attorney regarding filing and
                  reporting requirements

              
	
                5.

              	
                Preparation
                  of consolidated financial statements including
                  footnotes

              
	
                6.

              	
                Preparation
                  of MD&A for inclusion in SEC filings

              
	
                7.

              	
                Preparation
                  as may be required of forecasts and budgets.

              
	
                8.

              	
                Signing
                  off on financial statements and regulatory filings

              
	
                9.

              	
                Maintaining
                  the books and records and the US bank account(s) for the parent
                  company

              
	
                10

              	
                .
                  Meeting with company management and visits to the Company’s facilities as
                  may be required

              
	
                11

              	
                .
                  Participation at investor meetings and conferences as may be
                  required

              
	
                12.

              	
                Taking
                  phone calls from the financial community and investors

              
	
                13.

              	
                Other
                  activities appropriate to the responsibilities of being the chief
                  financial officer

              
	
                14.

              	
                The
                  preparation and filing of any appropriate state and Federal withholding
                  and tax filings.

              


      

       

    

    Zhao
      and
      the Company agree that the performance, compensation and time commitment by
      Zhao
      shall be reviewed quarterly, and appropriate adjustments shall be made thereof,
      subject to parties’ written agreement.

    


    Zhao
      shall be treated as an employee of the company, and appropriate deductions
      for
      Federal and State Withholding, and FICA shall be made.

    


    Zhao
      shall be entitled to reimbursement for appropriate business expenses, as well
      as
      travel and related expenses.

    


    This
      Preliminary Employment Agreement shall be in force until such time as a formal
      Employment Agreement is entered into by Zhao and the Company, and will be
      subject by termination by either party providing the other party four weeks
      written notice.

     

    
      
        	
                Agreed
                  to:

              	 	 
	
                Elaine
                  Zhao

              	 	 
	 	 	 
	
                /s
                  Eliane Zaho

              	 	
                Date:
                  June 25, 2007

              
	
                Biostar
                  Pharmaceuticals Inc.

              	 	 
	 	 	 
	
                /s/
                  :
                  Ronghua Wang 
                  

              	 	
                Date:
                  June 25, 2007

              
	Title: President
&
                CEO