AGREEMENT


This  Agreement  entered  into as of the 29th day of  March,  2004  between  Air
Packaging  Technologies,  Inc., a Delaware corporation with offices in Valencia,
California (Air Packaging") and Oranco,  Inc., a Nevada corporation with offices
in Las Vegas, Nevada. ("Oranco")



                           PRELIMINARY STATEMENT

Air Packaging in a public  company  engaged in the  manufacture of a proprietary
form of plastic  packaging.  It has recently ceased all business  operations for
lack of capital.  During the past three  years it has  entered  into a series of
agreements  with 3M  Corporation  ("3M")  pursuant to which 3M was,  among other
things,  granted the  exclusive  right to sell Air  Packaging's  products in the
industrial protective packaging market.

Air Packaging's  current  financial  condition has resulted from 3M's failure to
sell products pursuant to its exclusive agreements.  Air Packaging believes that
3M's failure to sell said products  constitutes a breach of its agreements  with
Air  Packaging and desires to institute  legal action  against 3M.  However,  it
currently lacks funds to commence and prosecute such legal action.

Air Packaging has requested  Oranco to finance such legal action  against 3M and
Oranco has agreed to finance such legal  action  under the terms and  conditions
set forth in this Agreement.

NOW THEREFORE, THE PARTIES AGREE AS FOLLOWS.

1.   Oranco hereby agrees to lend to Air Packaging  sufficient funds to commence
     and  prosecute  legal action  against 3M and to prosecute  such action to a
     conclusion, subject to its right to cease providing such funds as set forth
     in Paragraph 4 hereof.  It is understood  that all funds provided by Oranco
     pursuant to this Agreement shall be treated as loans, subject to repayment.
     Each advance by Oranco shall bear  interest at the rate of 12% per annum or
     the highest  legal rate of interest in the State of  California,  whichever
     shall be lower.  Advances  shall  include all amounts paid to outside legal
     counsel or any other  individual  or company  providing  assistance  to Air
     Packaging,  including but not limited to current or former employees of Air
     Packaging  and shall be  evidenced by a note or series of notes in the form
     of Exhibit A attached hereto.

2.   In consideration for Oranco's providing the necessary funds as set forth on
     Paragraph  1, Air  Packaging  shall  repay  such  funds  out of any and all
     amounts  received  from 3M and shall  further pay Oranco an amount equal to


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     60% of Air  Packaging's  "net  recovery"  from 3M, whether by settlement or
     judgment  and  whether or not legal  action  against 3M has  actually  been
     commenced.  "Net  recovery  shall mean the gross amount which Air Packaging
     shall  receive  from  3M as a  result  of the  commencement  or  threat  of
     commencement  of a legal  action  against 3M less all  amounts  paid by Air
     Packaging in connection with the prosecution of such legal action.

3.   In further  consideration  for  Oranco's  agreement to advance  funds,  Air
     Packaging  agrees  that it shall  not  enter  into any  settlement  with 3M
     without  Oranco's  written  consent.  In the event that Air Packaging shall
     nevertheless  enter into a  settlement  with 3M without  Oranco's  consent,
     Oranco's  share  of  such  settlement  shall  be  increased  to  80% of Air
     Packaging's net recovery from 3M.

4.   The parties acknowledge that the cost of litigation will be substantial and
     somewhat unpredictable. Consequently, Oranco retains the right to terminate
     its obligations  under this Agreement at any time on 30 days written notice
     to Air Packaging. In the event it shall terminate and its total payments at
     such time  shall be less than  $50,000,  its share of Air  Packaging's  net
     recovery  from 3M shall be  reduced  from 60% to 40%.  In the event that it
     shall  terminate its payment after paying $50,000 or more, its share of Air
     Packaging's net recovery shall remain at 60%.

5.   Air Packaging agrees that it shall keep Oranco informed of all developments
     in the legal action against 3M and shall consult  regularly with Oranco and
     request  its advice and  counsel as to strategy to be pursued in such legal
     action. Oranco's representative for this purpose shall be Claudio Gianascio
     until changed by Oranco in writing.  All communications  with Air Packaging
     shall until further notice be to Donald Ochacher, Air Packaging's President
     and Chief Executive Officer.  Written  communications to Mr. Ochacher shall
     either be by email to  dochacher@aol.com  or by mail addressed to Donald M.
     Ochacher, 6259 Randi Avenue, Woodland Hills, Ca 91367.

6.   As security for the performance of Air Packaging's  obligations  under this
     Agreement,  including  but not  limited to the payment of all sums to which
     Oranco may become  entitled under this Agreement,  Air Packaging  grants to
     Oranco a security interest in all of the assets of Air Packaging. Oranco is
     hereby  authorized to file, and Air Packaging  hereby ratifies and approves
     Oranco's  filing  of,  any and  all  UCC  financing  statements  and  other
     perfection  certificates to perfect the security interest authorized hereby
     and created by the Security Agreement to be entered into by gthe parties.



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7.   As a further  condition for the financial  obligations of Oranco under this
     Agreement,   Air  Packaging  shall  deliver  to  Oranco  the  Subordination
     Agreement in the form of Exhibit A hereto duly executed by the parties.

8.   This Agreement represents the entire understanding of the parties hereto

IN WITNESS WHEREOF,  the parties have entered into this Agreement as of the date
first above written.

     AIR PACKAGING TECHNOLOGIES, INC.         ORANCO, INC. .


     By S/ Donald Ochacher                    By S/ Claudio Gianascio
        ------------------------------           -----------------------------
        Donald Ochacher, President               Claudio Gianascio, President