Document:

<PAGE>

                                                                    EXHIBIT 4.1

                     AMERICAN ORIENTAL BIOENGINEERING, INC.
                     --------------------------------------

                             2003 STOCK OPTION PLAN
                             ----------------------

1.       PURPOSE OF PLAN
         ---------------

         The purpose of this 2003 Stock Option Plan (the "PLAN") is to assist
American Oriental Bioengineering, Inc. (the "COMPANY") and any subsidiary
thereof included in the definition of the "Companies" set forth in Paragraph 2
below, in the continued employment or service of officers, employees,
consultants and directors by offering them a greater stake in the Companies'
success and a closer identity with the Companies, and to aid in attracting
individuals whose employment or services would be helpful to the Companies and
would contribute to their success.

2.       DEFINITIONS
         -----------

         (a)      "BOARD" means the board of directors of the Company.

         (b)      "CODE" means the Internal Revenue Code of 1986, as amended.

         (c)      "COMMITTEE" means the committee described in Paragraph 5.

         (d)      "COMMON STOCK" means shares of common stock, $0.01 par value
                  per share, of the Company.

         (e)      "COMPANIES" means the Company and any subsidiary, as defined
                  in Sections 424(e) and 424(f) of the Code.

         (f)      "DATE OF GRANT" means the date on which an Option is granted,
                  or on which the exercise price of an outstanding Option is
                  modified.

         (g)      "EXERCISE PRICE" means the price per Share that an Optionee
                  must pay in order to exercise an Option.

         (h)      "EXPIRATION DATE" shall have the meaning set forth in
                  Paragraph 16.

         (i)      "INCENTIVE STOCK OPTION" shall mean an Option granted under
                  the Plan, designated at the time of such grant as an incentive
                  stock option (and qualifying as such under Section 422 of the
                  Code) and containing the terms specified herein for incentive
                  stock options.

         (j)      "NON-QUALIFIED OPTION" shall mean an Option granted under the
                  Plan, which is designated at the time of such grant as a
                  non-qualified option, which contains the terms specified
                  herein for non-qualified options, and which fails to qualify
                  as an Incentive Stock Option within the meaning of Section 422
                  of the Code.

<PAGE>

         (k)      "OPTION" means any stock option granted under the Plan and
                  described either in Paragraph 3(a) or 3(b).

         (l)      "OPTION AGREEMENT" shall have the meaning set forth in
                  Paragraph 7.

         (m)      "OPTIONEE" means a person to whom an Option has been granted
                  under the Plan, which Option has not been exercised and has
                  not expired or terminated.

         (n)      "REORGANIZATION" shall have the meaning set forth in Paragraph
                  11.

         (o)      "RULE 16b-3" shall have the meaning set forth in Paragraph 5.

         (p)      "SHARES" means shares of Common Stock subject to this Plan.

         (q)      "TEN PERCENT SHAREHOLDER" means a person who on the Date of
                  Grant owns, either directly or within the meaning of the
                  attribution rules contained in Section 424(d) of the Code,
                  stock possessing more than ten percent of the total combined
                  voting power of all classes of stock of his or her employer
                  corporation or of its parent or subsidiary corporations, as
                  defined respectively in Sections 424(e) and (f) of the Code.

         (r)      "VALUE" means, as determined by the Committee, the last sale
                  price of the Common Stock as quoted on the Over-the-Counter
                  Bulletin Board on the trading day immediately preceding the
                  date for which the determination is being made or, in the
                  event that no such sale takes place on such day, the average
                  of the reported closing bid and asked prices on such day; or,
                  if the Common Stock of the Company is listed on a national
                  securities exchange, the last reported sale price on the
                  principal national securities exchange on which the Common
                  Stock is listed or admitted to trading on the trading day
                  immediately preceding the date for which the determination is
                  being made or, if no such reported sale takes place on such
                  day, the average of the closing bid and asked prices on such
                  day on the principal national securities exchange on which the
                  Common Stock is listed or admitted to trading. If none of the
                  foregoing is applicable, then the fair market value of the
                  Common Stock shall be its value as determined in connection
                  with the Company's most recent corporate financing; provided,
                  however, that if a significant event (as determined in good
                  faith by the Committee in its sole discretion) has occurred
                  with respect to the Company since the Company's most recent
                  corporate financing, the value of the Common Stock shall be
                  determined in good faith by the Committee in its sole
                  discretion.

3.       RIGHTS TO BE GRANTED
         --------------------

         Rights that may be granted under the Plan are:

                                      -2-

<PAGE>

         (a)      Incentive Stock Options, that give the Optionee the right for
                  a specified time period to purchase a specified number of
                  Shares at an Exercise Price determined by the Board in
                  accordance with Paragraph 7(a).

         (b)      Non-Qualified Options, that give the Optionee the right for a
                  specified time period to purchase a specified number of Shares
                  at an Exercise Price not less than that specified in Paragraph
                  7(a).

4.       STOCK SUBJECT TO PLAN
         ---------------------

         The maximum number of Shares that may be issued under the Plan is
2,900,000 Shares, subject to adjustment pursuant to the provisions of Paragraph
10. If an Option terminates without having been exercised in whole or part,
other Options may be granted covering the Shares as to which the Option was not
exercised. Notwithstanding anything to the contrary contained in the Plan, the
aggregate number of Shares issued to an Optionee on the exercise of Options
granted under the Plan, or reserved for issuance to an Optionee on the exercise
of Options granted under the Plan, may not exceed ten percent (10%) of the
maximum number of Shares authorized to be issued on the exercise of Options
under the Plan.

5.       ADMINISTRATION OF PLAN
         ----------------------

         (a)      The Plan shall be administered, and the grant of Options under
                  this Plan shall be approved in advance, by the Board, or if
                  the Board by resolution so decides, by a stock option
                  committee (the "COMMITTEE") designated by the Board, the
                  members of which shall be appointed by and serve on such
                  Committee at the pleasure of the Board.

         (b)      To the extent required for transactions under the Plan to
                  qualify for exemptions available under Rule 16b-3 promulgated
                  under the U.S. Securities Act ("RULE 16b-3"), if the Board
                  shall delegate its authority to the Committee then each member
                  of the Committee will be a "Non-Employee Director" within the
                  meaning of Rule 16b-3. To the extent required for compensation
                  realized from the exercise of options issued under the Plan to
                  be deductible by the Company or any of the Companies pursuant
                  to Section 162(m) of the Code, the members of said Committee
                  will be "outside directors" within the meaning of Section
                  162(m) of the Code.

         (c)      Notwithstanding anything in the Plan to the contrary, with
                  respect to any participant or eligible employee who is
                  resident outside of the United States, the Committee may, in
                  its discretion, amend or vary the terms of the Plan in order
                  to conform such terms with the requirements of local law or to
                  meet the goals and objectives of the Plan, and may, in its
                  discretion, establish administrative rules and procedures to
                  facilitate the operation of the Plan in such non-U.S.
                  jurisdictions. The Committee may, where it deems appropriate
                  in its discretion, establish one or more sub-plans of the Plan
                  for these purposes.

                                      -3-

<PAGE>

6.       GRANTING OF OPTIONS
         -------------------

         (a)      Subject to Paragraph 7 hereof, the Company may, from time to
                  time, designate: the officers, employees, consultants and/or
                  directors of any of the Companies to whom Options may be
                  granted; the number of Shares covered by an Option; the
                  relevant Exercise Price of an Option; the vesting provisions
                  of an Option; and the term of an Option.

         (b)      An Incentive Stock Option shall not be granted to a director
                  or consultant of any of the Companies unless, as of the Date
                  of Grant, such director or consultant is also an officer or
                  key employee of any of the Companies.

         (c)      An Incentive Stock Option shall not be granted to a Ten
                  Percent Shareholder except on such terms concerning the
                  Exercise Price and period of exercise as are provided in
                  Paragraph 7 with respect to such a person.

         (d)      Any Option granted under the Plan shall be subject to the
                  requirement that, if at any time counsel to the Company shall
                  determine that the listing, registration or qualification of
                  the Shares subject to such Option upon any securities exchange
                  or other self-regulatory entity or under any law or regulation
                  of any jurisdiction, or the consent or approval of any
                  securities exchange or other self-regulatory entity or any
                  governmental or regulatory body, is necessary as a condition
                  of, or in connection with, the grant or exercise of such
                  option or the issuance or purchase of Shares hereunder, such
                  option may not be accepted or exercised in whole or in part
                  unless such listing, registration, qualification, consent or
                  approval shall have been effected or obtained on conditions
                  acceptable to the Board. Nothing herein shall be deemed to
                  require the Company to apply for or to obtain such listing,
                  registration, qualification, consent or approval.

7.       OPTION AGREEMENTS AND TERMS
         ---------------------------

         Each Option shall be granted within ten (10) years of the date on which
the Plan is adopted by the Board or the date the Plan is approved by the
shareholders of the Company, whichever is earlier. Each Option shall be
evidenced by an option agreement that shall be executed on behalf of the Company
and by the respective Optionee ("OPTION AGREEMENT"), in such form not
inconsistent with the Plan as the Board or the Committee may from time to time
determine, provided that the substance of this Paragraph 7 be included therein.
The terms of each Option Agreement shall be consistent with the following:

         (a)      EXERCISE PRICE. In the case of a Non-Qualified Option, the
                  Exercise Price per Share shall be determined by the Board
                  unless otherwise delegated to the Committee. In the case of an
                  Incentive Stock Option, the Exercise Price per share shall not
                  be less than one hundred percent (100%) of the Value of such
                  Share on the Date of Grant; provided that with respect to any
                  Incentive Stock Options granted to a Ten Percent Shareholder,
                  the Exercise Price per Share shall not be less than one
                  hundred ten percent (110%) of the Value of such Share on the
                  Date of Grant.

                                      -4-

<PAGE>

         (b)      RESTRICTION ON TRANSFERABILITY. No Option granted hereunder
                  shall be pledged, hypothecated, charged, transferred, assigned
                  or otherwise encumbered or disposed of by the Optionee,
                  whether voluntarily or by operation of law, otherwise than by
                  will or the laws of descent and distribution, and any attempt
                  to do so will cause such Option to be null and void. During
                  the lifetime of the Optionee, an Option shall be exercisable
                  only by him. Upon the death of an Optionee, the person to whom
                  the rights shall have passed by will or by the laws of descent
                  and distribution may exercise any Option in accordance with
                  the provisions of Paragraph 7(e).

         (c)      PAYMENT. Full payment for Shares purchased upon the exercise
                  of an Option shall be made in cash or by wire transfer (at the
                  option of the Optionee), certified check, cashier's check,
                  personal check or, to the extent permitted by law, "cashless
                  exercise" (i.e., the Company's retention of that number of
                  Shares acquired by the Optionee on exercise, which, at the
                  time of exercise, has an aggregate fair market value equal to
                  the payment owed by the Optionee to the Company under this
                  Paragraph 7(c)). Upon the exercise of an Option, the Company
                  shall have the right to require the Optionee to remit to the
                  Company, in cash or by wire transfer, certified check,
                  cashier's check or personal check, an amount sufficient to
                  satisfy all U.S. federal, state and local withholding tax
                  requirements prior to the delivery by the Company of any
                  certificate for Shares.

         (d)      ISSUANCE OF CERTIFICATES. Upon payment of the Exercise Price,
                  a certificate for the number of Shares shall be delivered to
                  such Optionee by the Company. If listed on a national
                  securities exchange, or quoted on the Nasdaq Stock Market, the
                  Company shall not be obligated to deliver any certificates for
                  Shares until (A)(i) such Shares have been listed (or
                  authorized for listing upon official notice of issuance) on
                  each securities exchange upon which the outstanding Shares at
                  the time are listed or (ii) if the outstanding Shares are
                  quoted on the Nasdaq Stock Market, such Shares have been
                  approved for quotation thereon and (B) there has been
                  compliance with such laws or regulations as the Company may
                  deem applicable, including all applicable national securities
                  exchange or similar regulations. The Company shall use
                  commercially reasonable efforts to effect such listing or
                  reporting and compliance as promptly as practical.

         (e)      PERIODS OF EXERCISE OF OPTIONS. An Option shall be exercisable
                  in whole or in part for such time as may be stated in the
                  Option Agreement, provided that:

                  (i)      an Incentive Stock Option granted to a Ten Percent
                           Shareholder shall in no event be exercisable after
                           five (5) years from the Date of Grant, and all other
                           Options shall in no event be exercisable after ten
                           (10) years from the Date of Grant.

                                      -5-

<PAGE>

                  (ii)     Incentive Stock Options shall be subject to the
                           limitation set forth in Paragraph 8;

                  (iii)    if an Optionee ceases to be employed by, or ceases to
                           serve as an officer or director of, at least one of
                           the Companies for any reason other than death,
                           disability or termination for cause, any Option or
                           unexercised portion thereof shall not be exercisable
                           by such Optionee after three months from the date the
                           Optionee ceases to be employed by, or ceases to serve
                           as an officer or director of, at least one of the
                           Companies;

                  (iv)     if an Optionee ceases to be employed by, or ceases to
                           serve as an officer or director of, at least one of
                           the Companies, and such employment or service was
                           terminated for cause, any Option or unexercised
                           portion thereof shall terminate forthwith;

                  (v)      if an Optionee ceases to be employed by, or ceases to
                           serve as an officer or director of, at least one of
                           the Companies due to disability, any Option or
                           unexercised portion thereof shall not be exercisable
                           by such Optionee after one year from the date the
                           Optionee ceases to be employed by, or ceases to serve
                           as an officer, consultant or director of, at least
                           one of the Companies; and

                  (vi)     if an Optionee ceases to be employed by, or ceases to
                           serve as an officer, consultant or director of, one
                           or more of the Companies due to death, any Option or
                           unexercised portion thereof shall not be exercisable
                           after one year from the date of death; provided that
                           in such event, the person to whom the rights of the
                           Optionee shall have passed by will or by the laws of
                           descent and distribution may exercise any of the
                           decedent's Options to the extent determined by the
                           Company in its discretion, even if the date of
                           exercise is within any time period before or after
                           which such Option would not be exercisable under the
                           Plan.

         (f)      DATE OF EXERCISE. The date of exercise of an Option shall be
                  the date on which written notice of exercise is hand delivered
                  or telecopied to the Company, attention: Secretary; provided
                  that the Company shall not be obliged to deliver any
                  certificates for Shares pursuant to the exercise of an Option
                  until the Optionee shall have made full payment for such
                  Shares in accordance with Paragraph 7(c). Each such exercise
                  shall be irrevocable when given. Each notice of exercise must
                  state whether the Optionee is exercising an Incentive Stock
                  Option or a Non-Qualified Option and must include a statement
                  of preference as to the manner in which payment to the Company
                  shall be made (cash, wire transfer, certified check, cashier's
                  check or personal check). Moreover, if required by the Board
                  or Committee by notification to the Optionee at the time of
                  granting of the option, it shall be a condition of such
                  exercise that the Optionee represent that he is purchasing the
                  Shares in respect of which the Option is being exercised for
                  investment only and not with a view to resale or distribution.

                                      -6-

<PAGE>

         (g)      TERMINATION OF STATUS. For the purposes of the Plan, a
                  transfer of an employee, officer, consultant or director
                  between two companies, each of which is a company considered
                  to be either a parent of the Company within the meaning of
                  Section 424(e) of the Code or a subsidiary of the Company
                  within the meaning of Section 424(f) of the Code, shall not be
                  deemed a termination of employment or of service as an
                  employee, officer, consultant or director.

         (h)      NO RELATION BETWEEN INCENTIVE STOCK OPTIONS AND NON-QUALIFIED
                  OPTIONS. The grant, exercise, termination or expiration of any
                  Incentive Stock Option granted to an Optionee shall have no
                  effect upon any Non-Qualified Option held by such Optionee,
                  nor shall the grant, exercise, termination or expiration of
                  any Non-Qualified Option granted to an Optionee have any
                  effect upon any Incentive Stock Option held by such Optionee.

8.       LIMITATION ON EXERCISE OF INCENTIVE STOCK OPTIONS
         -------------------------------------------------

         The aggregate fair market value (determined as of the Date of Grant) of
the Shares with respect to which Incentive Stock Options are exercisable for the
first time by an Optionee during any calendar year under the Plan (and any other
plan of his employer corporation and its parent and subsidiary corporations, as
defined respectively in Sections 424(e) and (f) of the Code), shall not exceed
One Hundred Thousand Dollars in U.S. funds (US $100,000). Accordingly, to the
extent that the aggregate fair market value (determined as of the Date of Grant)
of the Shares with respect to which Incentive Stock Options (determined without
reference to this Paragraph 8) are exercisable for the first time by an Optionee
during any calendar year under this Plan (and any other plan of his employer
corporation and its parent and subsidiary corporations, as defined respectively
in Sections 424(e) and (f) of the Code) exceeds One Hundred Thousand Dollars in
U.S. funds (US $100,000), such Options will be treated as Nonqualified Options
(i.e., options which fail to qualify as incentive stock options within the
meaning of Section 422 of the Code) in accordance with Section 422(d) of the
Code.

9.       RIGHTS AS A SHAREHOLDER
         -----------------------

         The Optionee (or his personal representatives or legatees) shall have
no rights whatsoever as a shareholder in respect of any Shares covered by his
option until the date of issuance of a share certificate to him (or his personal
representatives or legatees) for such Shares. Without in any way limiting the
generality of the foregoing, no adjustment shall be made for dividends or other
rights for which the record date is prior to the date such share certificate is
issued.

10.      CHANGES IN CAPITALIZATION
         -------------------------

         In the event of a stock dividend, stock split, recapitalization,
combination, subdivision, issuance of rights to all stockholders, or other
similar corporate change, the Company shall make such adjustment in the
aggregate number of Shares that may be issued under the Plan, and the number of
Shares subject to, and the Exercise Price of, each then-outstanding Option, as
it, in its sole and absolute discretion, deems appropriate.

                                      -7-

<PAGE>

11.      MERGERS, DISPOSITIONS AND CERTAIN OTHER TRANSACTIONS
         ----------------------------------------------------

         If during the term of any Option, the Company shall be merged into or
consolidated with or otherwise combined with another person or entity, or
substantially all of the property or stock of the Company is acquired by another
person or entity, or there is a divisive reorganization, spin-off or liquidation
or partial liquidation of the Company ("REORGANIZATION"), the Company may choose
to take no action with regard to the Options outstanding or to take any of the
following courses of action:

         (a)      The Company may provide in any agreement with respect to any
                  such Reorganization that the surviving, new or acquiring
                  corporation shall grant options to the Optionees to acquire
                  shares in such corporation with respect to which the excess of
                  the fair market value of the shares of such corporation
                  subject to such options immediately after the consummation of
                  such Reorganization over the aggregate exercise price of such
                  options shall not be greater than the excess of the aggregate
                  value of the Shares over the aggregate Exercise Price of the
                  Options immediately prior to the consummation of such
                  Reorganization; and that the grant of such options after the
                  consummation of such Reorganization would not give the
                  Optionees any additional benefits that the Optionees did not
                  have before the consummation of such Reorganization; or

         (b)      If the Board shall determine that such action is reasonable
                  under the circumstances, it may give each Optionee the right,
                  immediately prior to the consummation of such Reorganization,
                  to exercise his Options in whole or in part, without regard to
                  any restrictions on the time of exercise otherwise imposed
                  pursuant to Paragraph 7(e) of the Plan, or the Board may take
                  such other action as it shall determine to be reasonable under
                  the circumstances in order to permit Optionees to realize the
                  value of rights granted to them under the Plan.

12.      PLAN NOT TO AFFECT EMPLOYMENT
         -----------------------------

         Neither the Plan nor any Option granted thereunder shall confer upon
any employee, officer, consultant or director of any of the Companies any right
to continue in the employment or service of any of the Companies.

13.      INTERPRETATION
         --------------

         The Board or the Committee shall have the power to interpret the Plan
and to adopt, amend and rescind rules for putting the Plan into effect and
administering it. The administration, interpretation, construction and
application of the Plan and any provisions thereof made by the Board or the
Committee shall be final and binding on all Optionees and on any other persons
eligible under the provisions of the Plan to participate therein. No member of
the Board or Committee shall be liable for any action taken or for any
determination made in good faith in connection with the administration,
interpretation, construction or application of the Plan. It is intended that the
Incentive Stock Options shall constitute incentive stock options within the
meaning of Section 422 of the Code and that the Plan shall qualify for the
exemption available under Rule 16b-3. The provisions of the Plan shall be
interpreted and applied insofar as possible to carry out such intent.

                                      -8-

<PAGE>

14.      AMENDMENT OR DISCONTINUANCE OF THE PLAN
         ---------------------------------------

         The Board may, subject to regulatory approval, amend or discontinue the
Plan at any time, provided, however, that no such amendment may materially and
adversely affect any option rights previously granted to an Optionee under the
Plan without the written consent of the Optionee or other person then entitled
to exercise such Option, except to the extent required by law or by the
regulations, rules, by-laws or policies of any regulatory authority or stock
exchange. However, any amendment of this Plan that would (a) increase or
decrease the number of Shares that may be issued pursuant to Options granted
under this Plan or (b) modify the requirements as to eligibility for
participation in this Plan, shall be effective only if such amendment is
approved by the shareholders of the Company within twelve months before or after
the date on which such amendment is adopted by the Board and, if required, is
also approved by any securities and stock exchange regulatory authorities having
jurisdiction over the Shares.

15.      SECURITIES LAWS
         ---------------

         The Company shall have the power to make each grant under the Plan
subject to such conditions as it deems necessary or appropriate to comply with
the then existing rules and regulations of the Securities and Exchange
Commission and the applicable laws and regulations of any other jurisdiction.

16.      EFFECTIVE DATE AND TERM OF PLAN
         -------------------------------

         The Plan shall become effective on the date the Plan is adopted by the
Board, and, unless sooner terminated by the Board, shall expire on the date that
is ten years after the date on which the Plan is adopted by the Board or the
date the Plan is approved by the Company's shareholders, whichever is earlier
("EXPIRATION DATE"). No Option granted under the Plan shall become exercisable
unless and until the Plan shall have been approved by the Company's shareholders
within twelve months before or after the date the Plan is adopted by the Board,
and no Option may be granted under the Plan following the Expiration Date.

17.      GOVERNING LAW
         -------------

         The Plan and all matters to which reference is made herein shall be
governed by and interpreted in accordance with the laws of Nevada, provided
that, notwithstanding such choice of law, the federal laws of the United States
shall be applicable herein to the extent specified or to the extent compliance
with such laws is mandatory.

By order of the Board of Directors of American Oriental Bioengineering, Inc.

                                      -9-<PAGE>

                                                                    EXHIBIT 10.1

                              EMPLOYMENT AGREEMENT
                              --------------------

         THIS EMPLOYMENT AGREEMENT ("AGREEMENT") is made and entered into this
24th day of March, 2004, effective as of October 1, 2003 (the "EFFECTIVE DATE"),
between American Oriental Bioengineering, Inc., a Nevada corporation with its
principal place of business located at No. 308 Xuefu Road, Nangang District,
Harbin, China 150086 (the "COMPANY"), and Tony Liu, residing at Nangang
District, Harbin, China (the "EXECUTIVE").

         WHEREAS, the business of the Company and its affiliates consists of the
development and production of bioengineered products and traditional Chinese
medicinal products that combine modern biotechnology and traditional Chinese
medical technology, and activities incidental thereto (the "BUSINESS");

         WHEREAS, the Company has expended considerable time, effort and
resources in the development of certain Confidential Information, as defined in
paragraph 9 hereinbelow, which must be maintained as confidential in order to
ensure the success of the Business;

         WHEREAS, prior to the Effective Date, the Executive has been employed
by the Company in the position of, and has been performing the services required
of, Chief Executive Officer of the Company;

         WHEREAS, the Executive and the Company desire to memorialize the terms
and conditions of the Executive's employment by the Company in the position of
Chief Executive Officer; and

         WHEREAS, the Executive has had, prior to the Effective Date, and will
continue to have, as of the Effective Date, access to such Confidential
Information, as defined in paragraph 9 hereinbelow.

         NOW, THEREFORE, in consideration of the covenants and promises
contained herein, the compensation and benefits received by the Executive from
the Company, and the access given the Executive to the aforesaid Confidential
Information, as defined in paragraph 9 hereinbelow, and for other good and
valuable consideration, the sufficiency and receipt of which are hereby
acknowledged, the Company and the Executive agree as follows:

         1. EMPLOYMENT PERIOD. The Company offers to employ the Executive, and
the Executive agrees to be employed by Company, in accordance with the terms and
subject to the conditions of this Agreement commencing on the Effective Date and
terminating the fifth anniversary of the Effective Date (the "SCHEDULED
TERMINATION DATE"), unless terminated prior thereto in accordance with the
provisions of paragraph 8 hereinbelow. The Executive affirms that no obligation
exists between the Executive and any other entity which would prevent or impede
the Executive's immediate and full performance of every obligation of this
Agreement.

         2. POSITION AND DUTIES. During the term of the Executive's employment
hereunder, the Executive will serve in the position, and assume duties and
responsibilities consistent with the position of Chief Executive Officer unless
and until otherwise instructed by the Company. The Executive agrees to devote

<PAGE>

substantially all of his working time, skill, energy and best business efforts
during the term of his employment with the Company. The Executive covenants and
agrees that for so long as he is employed by the Company, the Executive shall
inform the Company of each and every business opportunity related to the
business of the Company of which the Executive becomes aware, and that the
Executive will not, directly or indirectly, exploit any such opportunity for the
Executive's own account, nor will the Executive render any services to any other
person or business, acquire any interest of any type in any other business or
engage in any activities that conflict with the Company's best interests or
which is in competition with the Company.

         3. HOURS OF WORK. The Executive's normal days and hours of work shall
coincide with the Company's regular business hours. The nature of the
Executive's employment with the Company requires flexibility in the days and
hours that the Executive must work, and may necessitate that the Executive work
on other or additional days and hours. The Company reserves the right to require
the Executive, and the Executive agrees, to work during other or further days or
hours than the Company's normal business hours.

         4. LOCATION. The locus of the Executive's employment with Company shall
be the Company's office located at No. 308 Xuefu Road, Nangang District, Harbin,
China 150086, and Unit E, 26 Floor, CNT Tower, 338 Hennessy Road, Wanchai, Hong
Kong, China. The Company may, in its sole discretion, require the Executive to
travel to and reside in, on a temporary, indefinite or permanent basis, in any
other location throughout the world in which the Company or any of its
affiliates has offices.

         5. BASE SALARY. During the Executive's continued full and satisfactory
performance of his duties and responsibilities hereunder, the Company shall pay
or cause to pay, and the Executive agrees to accept, during one year period
following the Effective Date (the "FIRST YEAR"), in consideration for the
Executive's services, PRO RATA payments, as earned and consistent with Company's
then-existing payroll practices, of the annualized salary of $150,000.00, less
all applicable taxes and other appropriate deductions. Following the First Year,
the Executive's base salary shall be reviewed annually by the Board of Directors
of the Company. The decision to increase or decrease the Executive's base salary
and the amount of any such increase or decrease are within the sole discretion
of the Company's Board of Directors. Nothing contained in this paragraph 5 is
intended to be, or should be construed as, a promise or guarantee by the Company
to increase the Executive's base salary. The Company reserves the right, in its
sole discretion, and the Executive hereby acknowledges the Company's right, to
make no such payments or make reduced payments in connection with any periods of
unauthorized or unjustified absence from work or in the event that the Executive
is unavailable or unable to perform the Executive's duties for the Company
without adequate justification, as determined by the Company in its sole
discretion.

         6. STOCK OPTIONS. During the Executive's continued full and
satisfactory performance of his duties and responsibilities hereunder, and
subject to the provisions in paragraph 8 hereinbelow and subject to the adoption
of a stock option plan by the Board of Directors of the Company (the "STOCK
OPTION PLAN"), the Company shall award to the Executive, in four quarterly

                                       2

<PAGE>

installments on each three month anniversary of the Effective Date, options to
purchase shares of common stock of the Company pursuant to, and in accordance
with the terms and conditions of, such Stock Option and any stock option
agreement entered into by the Company and the Executive. The exercise price for
each option granted to the Executive shall be US$2.00. Each quarterly grant
shall consist of the quantity of shares of common stock of the Company whose
aggregate market price at close of trading on the date of grant minus their
aggregate exercise price equals US$12,500.00. The Executive's right to receive
any quarterly grant of stock options is subject to and conditional upon his
status as a full-time employee of the Company at the time of such grant, and the
Executive shall not be entitled to any portion of any quarterly grant that has
not already been awarded to his prior to his last date of full-time employment
with the Company. Nothing contained in this paragraph 6 is intended to be, or
should be construed as, a promise or guarantee by the Company to adopt a stock
option plan.

         7. REIMBURSEMENT OF EXPENSES. During the term of this Agreement, in
accordance with the Company's expense reimbursement policy, the Executive shall
be entitled to reimbursement for reasonable expenses (including, without
limitation, reasonable travel expenses) paid or incurred by him, in connection
with and related to the performance of his duties and responsibilities hereunder
for the Company. All requests by Employee for reimbursement for such expenses
must be supported by appropriate invoices, vouchers, receipts or such other
supporting documentation in such form and containing such information as the
Company may from time to time require, evidencing that the Executive, in fact,
incurred or paid said expenses. The total amount of expenses to which the
Executive is entitled to payment and/or reimbursement hereunder shall not exceed
US$30,000.00 for each year period commencing on the Effective Date.

         8. TERMINATION.

         a. DEATH OR RESIGNATION. If the Executive dies or resigns during the
term of this Agreement, this Agreement shall automatically terminate on the date
of the Executive's death or resignation and, following the date of the
Executive's death or resignation, the Company shall have no further obligations
or liability to the Executive or his heirs, administrators or executors with
respect to compensation and benefits thereafter, except for the obligation to
pay the Executive (i) any earned but unpaid base salary through the Executive's
date of death or resignation, (ii) for any unused accrued and unforfeited
vacation, and (iii) subject to paragraph 7 hereinabove, for any unreimbursed
business expenses incurred by the Executive prior to his death or resignation.
The Company shall deduct, from all payments made hereunder, all applicable
taxes, including income tax, FICA and FUTA, and other appropriate deductions.

         b. DISABILITY. At any time during the term of this Agreement, the
Company may terminate this Agreement and the Executive's employment with the
Company because of the Executive's "Disability," by written notice to the
Executive. For purposes of this Agreement, "DISABILITY" shall mean, if at the
end of any calendar month during the term of this Agreement, the Executive, as a
result of mental or physical illness or injury, is or has been unable to perform
his duties under this Agreement, without or without reasonable accommodation,
for (i) the four (4) preceding consecutive calendar months, or (ii) any 180 days
in the previous twelve (12) months. If this Agreement is terminated because of

                                       3

<PAGE>

the Executive's "Disability," the Company shall have no further obligations or
liability to the Executive or his heirs, administrators or Executors with
respect to compensation and benefits thereafter, except for the obligation to
pay the Executive (x) any earned but unpaid base salary effective at the time of
death or resignation through the Executive's date of death or resignation, (y)
for any unused accrued and unforfeited vacation, and (z) subject to paragraph 7
hereinabove, for any unreimbursed business expenses incurred by the Executive
prior to his death or resignation. The Company shall deduct, from all payments
made hereunder, all applicable taxes, including income tax, FICA and FUTA, and
other appropriate deductions.

         c. "CAUSE." At any time during the term of this Agreement, the Company
may terminate this Agreement and the Executive's employment with the Company, at
any time, for "Company Cause." For purposes of this Agreement, "COMPANY CAUSE"
shall mean: (i) the good faith determination by the Company's Board of Directors
that there has been continued neglect by the Executive of his duties hereunder,
or (ii) willful misconduct on the Executive's part in connection with the
performance of his duties hereunder, PROVIDED HOWEVER, that the Executive shall
have been given one (1) written notice of such determination by the Company's
Board of Directors of continued neglect or willful misconduct and thereafter the
Executive shall not have cured such neglect or willful misconduct to the
satisfaction of the Company's Board of Directors within fifteen (15) days of the
Executive's receipt of such written notice, (iii) the Executive is convicted of
or pleads guilty or no contest to a felony or other conduct involving moral
turpitude. If this Agreement is terminated for "Company Cause," following the
Executive's last date of employment with the Company, the Company shall have no
further obligations or liability to the Executive or his heirs, administrators
or Executors with respect to compensation and benefits thereafter, except for
the obligation to pay the Executive (x) any earned but unpaid base salary
effective at the time of death or resignation through the Executive's date of
death or resignation, (y) for any unused accrued and unforfeited vacation, and
(z) subject to paragraph 7 hereinabove, for any unreimbursed business expenses
incurred by the Executive prior to his death or resignation. The Company shall
deduct, from all payments made hereunder, all applicable taxes, including income
tax, FICA and FUTA, and other appropriate deductions.

         d. TERMINATION BY THE BOARD OF DIRECTORS. At any time during the term
of this Agreement, the Board of Directors of the Company, in its sole
discretion, may terminate this Agreement and the Executive's employment with the
Company without "Company Cause" by delivering to the Executive written notice.
In the event that this Agreement and the Executive's employment with the Company
is terminated pursuant to this subparagraph 8(d), following the Executive's last
date of employment with the Company, the Company shall have no further
obligations or liability to the Executive or his heirs, administrators or
executors with respect to compensation and benefits, except for the obligation
to pay the Executive (i) any earned but unpaid base salary through the
Executive's last date of employment, (ii) for any unused accrued and unforfeited
vacation, (iii) his base salary in effect at the time of his termination in
accordance with paragraph 5 hereinabove through the Scheduled Termination Date,
and (iv) subject to paragraph 7 hereinabove, for any unreimbursed business
expenses incurred by the Executive prior to his last date of employment with the
Company. The Company shall deduct, from all payments made hereunder, all
applicable taxes, including income tax, FICA and FUTA, and other appropriate
deductions.

                                       4

<PAGE>

         9. CONFIDENTIAL INFORMATION.

         a. The Executive expressly acknowledges that, in the performance of his
duties and responsibilities relating to his employment with the Company, he has
been exposed and will continue to be exposed to the trade secrets, business
and/or financial secrets and confidential and proprietary information of the
Company, its affiliates and/or its clients or customers ("CONFIDENTIAL
INFORMATION"). The term "Confidential Information" means information or material
that has actual or potential commercial value to the Company, its affiliates
and/or its clients or customers and is not generally known to and is not readily
ascertainable by proper means to persons outside the Company, its affiliates
and/or its clients or customers, and includes, without limitation, and includes,
without limitation, the following, whether or not expressed in a document or
medium, regardless of the form in which it is communicated, whether or not such
information is on the Company's forms, memos, computer disc or tape, or
otherwise, whether or not such information is in written or verbal form, and
whether or not marked "trade secret" or "confidential" or any similar legend:
(i) sales information, (ii) operations information, (iii) financial information,
(iv) administrative information, (v) research information, (vi) customer
information, (vii) supplier information, and (viii) any other information
concerning the Company, its business, its properties or its affairs that the
Company deems to be confidential or that is confidential according to industry
practices.

         b. Except as authorized in writing by the Company's Chief Executive
Officer, during the term of this Agreement and thereafter until such time as any
such Confidential Information become generally known to and readily
ascertainable by proper means to persons outside the Company, its affiliates
and/or its clients or customers, the Executive agrees to keep strictly
confidential and not use or disclose, cause to be used or disclosed, or permit
to be used or disclosed, to any person or entity and/or for his personal benefit
or the benefit to any other person or entity, any Confidential Information.

         c. The Executive agrees that upon termination of his employment with
the Company for any reason, he will promptly return to the Company all
Confidential Information within his possession or within his power to control,
including, without limitation all copies of such Confidential Information, all
abstracts of such Confidential Information and any other information containing
such Confidential Information in whole or in part.

         d. The Executive affirms that he did not and does not possess, and has
not relied and will not rely upon the protected trade secrets or confidential or
proprietary information of the Executive's prior employer(s) in providing
services to the Company.

         10. OWNERSHIP AND ASSIGNMENT OF INVENTIONS.

         a. The Executive acknowledges that, in connection with his duties and
responsibilities relating to his employment with the Company, the Executive
and/or other employees of the Company working with the Executive, without the
Executive or under the Executive's supervision, may have created, conceived of,
made, prepared, worked on or contributed to, and/or may create, conceive of,

                                       5

<PAGE>

make, prepare, work on or contribute to, the creation of, or may have been or
may be asked by the Company and/or its affiliates or customers to create,
conceive of, make, prepare, work on or contribute to the creation of, without
limitation, lists, business diaries, business address books, documentation,
ideas, concepts, inventions, designs, works of authorship, computer programs,
audio/visual works, developments, proposals, works for hire or other materials
("INVENTIONS"). To the extent that any such Inventions related or relate to any
actual or reasonably anticipated business of the Company or any of its
affiliates or customers, or falls within, is suggested by or results from any
tasks assigned to the Executive for or on behalf of the Company or any of its
affiliates or customers, the Executive expressly acknowledges that all of his
activities and efforts relating to any Inventions, whether or not performed
during the Executive's or the Company's regular business hours, are within the
scope of the Executive's employment with the Company and that the Company owns
all right, title and interest in and to all Inventions, including, to the extent
that they exist, all intellectual property rights thereto, including, without
limitation, copyrights, patents and trademarks in and to all Inventions. The
Executive also acknowledges and agrees that the Company owns and is entitled to
sole ownership of all rights and proceeds to all Inventions.

         b. The Executive expressly acknowledges and agrees to assign to the
Company, and hereby assigns to the Company, all of the Executive's right, title
and interest in and to all Inventions, including, to the extent they exist, all
intellectual property rights thereto, including, without limitation, copyrights,
patents and trademarks in and to all Inventions.

         c. In connection with all Inventions, the Executive agrees to disclose
any Invention promptly to the Company and to no other person or entity. The
Executive further agrees to execute promptly, at the Company's request, specific
written assignments of the Executive's right, title and interest in any
Inventions, and do anything else reasonably necessary to enable the Company to
secure or obtain a copyright, patent, trademark or other form of protection in
or for any Invention in the United States or other countries. The Executive
further agrees that the Company is not required to designate the Executive as an
author of or contributor to any Invention or to secure the Executive's
permission to change or otherwise alter any Invention.

         d. The Executive acknowledges that all rights, waivers, releases and/or
assignments granted herein and made by the Executive are freely assignable by
the Company and are made for the benefit of the Company and its affiliates,
subsidiaries, licensees, successors and assigns.

         e. The Executive agrees to waive, and hereby does waive, for the
benefit of all persons, any and all right, title and interest in the nature of
"moral rights" or "droit moral" granted to the Executive in any country in the
world.

         11. NON-COMPETITION AND NON-SOLICITATION. Because of the nature of the
Company's Business, and because, as a result of their employment with the
Company, the Executive and other present and former employees of the Company
have been and will continue to be exposed to Confidential Information, the
Executive acknowledges that the Company would sustain grievous harm in the event
that he or the Company's other present and former employees were to disclose

                                       6

<PAGE>

Confidential Information, engage in business activities that compete with the
Business, appropriate or divert business or customers of the Company or its
affiliates and/or induce employees or consultants of the Company or its
affiliates to leave the employment of the Company or its affiliates. The
Executive acknowledges that the Company has a legitimate business interest in
protecting itself from the aforementioned harm and in the protection and
maintenance of the Confidential Information and of the good will and customer
relationships of the Company and its affiliates. Therefore, the Executive hereby
agrees and covenants to be bound by the non-competition and non-solicitation
restrictions set forth hereinbelow, which restrictions the Executive agrees and
acknowledges are reasonable and necessary and do not impose undue hardship or
burdens on the Executive.

         a. The Executive agrees that, during his employment with the Company
for a period of three (3) years following the termination of his employment with
the Company, he and his affiliates shall not directly or indirectly own, manage,
operate, control, be employed by, consult for, be a shareholder of, be an
officer of, participate in, contract with or be connected in any capacity or any
manner with any person or entity whose business activities directly or
indirectly (whether through related persons, entities or otherwise) compete with
the Business anywhere in the United States and the People's Republic of China
where the Company or its affiliates is engaged in the Business, PROVIDED
HOWEVER, that the Executive shall not be prevented from owning an interest in a
publicly traded company so long as the fair market value of such interest at the
date of acquisition is less than US$100,000.00.

         b. The Executive agrees that during the period of his employment with
the Company and for a period of three (3) years following the termination of his
employment with the Company, for any reason, he will not, within the United
States and the People's Republic of China where the Company or its affiliates is
engaged in the Business, directly or indirectly recruit, induce, divert,
supervise, employ, manage, hire or entice, or cause to be recruited, induced,
diverted, supervised, employed, managed, hired or enticed, any employee,
consultant or independent contractor of the Company or its affiliates to leave
or terminate the employment or other relationship thereof, for any reason.

         c. The Executive agrees that during the period of his employment with
the Company and for a period of three (3) years following the termination of his
employment with the Company, he will not, within the United States and the
People's Republic of China where the Company or its affiliates is engaged in the
Business, directly or indirectly appropriate, call on, induce, divert or
solicit, or assist another to appropriate, call on, induce, divert or solicit
any actual or potential business or customer away from the Company or its
affiliates, or attempt to do any of the foregoing, or otherwise induce or
attempt to induce any actual or potential business or customer of the Company or
its affiliates, to terminate or adversely modify its relationship with the
Company or its affiliates, or to enter into a relationship with or conduct
business with the Company or its affiliates, which actual or potential business
or customer the Executive was involved with or had a relationship with or whose
identity became known to the Executive in connection with the Executive's
employment with the Company.

                                       7

<PAGE>

         d. If any of the restrictive covenants set forth in paragraphs 11(a),
(b) and (c) of this Agreement is held to be invalid, illegal or unenforceable
(in whole or in part), such restrictive covenant shall be deemed modified to the
extent, but only to the extent, of such invalidity, illegality or
unenforceability, and a court of competent jurisdiction shall have the power to
modify, any such restrictive covenant to the extent necessary to render such
provision enforceable, and the remaining restrictive covenant shall not be
affected thereby.

         e. In the event of a violation of any of the restrictive covenants set
forth in paragraphs 11(a), (b) and (c) of this Agreement, if the Executive is
prevented by a court or arbitrator from committing any further violation,
whether by a temporary restraining order, injunction or otherwise, the time
periods set forth in paragraphs 11(a), (b) and (c) of this Agreement shall be
computed by commencing the periods on the date of the applicable court or
arbitrators' order and continuing them from that date for the full period
provided.

         f. The Executive shall have the right to request a waiver of all or
part of the restrictive covenants contained in paragraphs 11(a), (b) and (c) of
this Agreement by providing the Company with a written request for such a waiver
that contains all relevant details. The Company may, in its sole discretion,
waive all or part of the restrictive covenants contained in paragraphs 11(a),
(b) and (c) of this Agreement on such terms and conditions, and to such extent,
as it, in its sole discretion, deems appropriate. Such waiver must be in
writing.

         g. The parties acknowledge that this Agreement would not have been
entered into, that the benefits described in paragraphs 5 and 6 would not have
been promised to the Executive by the Company, in the absence of the Executive's
covenants and promises set forth in paragraphs 11(a), (b) and (c) of this
Agreement.

         12. DISPUTE RESOLUTION. The Executive and the Company agree that any
dispute or claim, whether based on contract, tort, discrimination, retaliation,
or otherwise, relating to, arising from, or connected in any manner with this
Agreement or with the Executive's employment with Company shall be resolved
exclusively through final and binding arbitration under the auspices of the Hong
Kong Chamber of Commerce ("HKCC") in accordance with the commercial arbitration
rules and supplementary procedures for international commercial arbitration of
the HKCC. The arbitration shall be held in Hong Kong. There shall be three
arbitrators: one arbitrator shall be chosen by each party to the dispute and
those two arbitrators shall choose the third arbitrator. Each party shall
cooperate with the other in making full disclosure of and providing complete
access to all information and documents requested by the other party in
connection with the arbitration proceedings. Arbitration shall be the sole,
binding, exclusive and final remedy for resolving any dispute between the
parties. The arbitrators shall have jurisdiction to determine any claim,
including the arbitrability of any claim, submitted to them. The arbitrators may
grant any relief authorized by law for any properly established claim. The
interpretation and enforceability of this paragraph of this Agreement shall be
governed and construed in accordance with the United States Federal Arbitration
Act, 9. U.S.C. ss.1, ET SEQ. More specifically, the parties agree to submit to
binding arbitration any claims for unpaid wages or benefits, or for alleged
discrimination, harassment, or retaliation, arising under Title VII of the Civil
Rights Act of 1964, the Equal Pay Act, the National Labor Relations Act, the Age

                                       8

<PAGE>

Discrimination in Employment Act, the Americans With Disabilities Act, the
Executive Retirement Income Security Act, the Civil Rights of 1991, the Family
and Medical Leave Act, the Fair Labor Standards Act, Sections 1981 through 1988
of Title 42 of the United States Code, COBRA, and any other federal, state, or
local law, regulation, or ordinance, and any common law claims, claims for
breach of contract, or claims for declaratory relief. The Executive acknowledges
that the purpose and effect of this paragraph is solely to elect private
arbitration in lieu of any judicial proceeding he might otherwise have available
to his in the event of an employment-related dispute between his and the
Company. Therefore, the Executive hereby waives his right to have any such
employment-related dispute heard by a court or jury, as the case may be, and
agrees that his exclusive procedure to redress any employment-related claims
will be arbitration.

         13. MISCELLANEOUS.

         a. Telephones, stationery, postage, e-mail, the internet and other
resources made available to the Executive by the Company, are solely for the
furtherance of the Company's business.

         b. All issues concerning, relating to or arising out of this Agreement
and from the Executive's employment by the Company, including, without
limitation, the construction and interpretation of this Agreement, shall be
governed by and construed in accordance with the internal laws of the State of
New York, without giving effect to that State's principles of conflicts of law.

         c. The Executive and the Company agree that any provision of this
Agreement deemed unenforceable or invalid may be reformed to permit enforcement
of the objectionable provision to the fullest permissible extent. Any provision
of this Agreement deemed unenforceable after modification shall be deemed
stricken from this Agreement, with the remainder of the Agreement being given
its full force and effect.

         d. The Company shall be entitled to equitable relief, including
injunctive relief and specific performance as against the Executive, for the
Executive's threatened or actual breach of paragraphs 9, 10 or 11 of this
Agreement, as money damages for a breach thereof would be incapable of precise
estimation, uncertain, and an insufficient remedy for an actual or threatened
breach of paragraphs 9, 10 or 11 of this Agreement. The Executive and the
Company agree that any pursuit of equitable relief in respect of paragraphs 9,
10 or 11 of this Agreement shall have no effect whatsoever regarding the
continued viability and enforceability of paragraph 12 of this Agreement.

         e. Any waiver or inaction by the Company for any breach of this
Agreement shall not be deemed a waiver of any subsequent breach of this
Agreement.

         f. The Executive and the Company independently have made all inquiries
regarding the qualifications and business affairs of the other which either
party deems necessary. The Executive affirms that he fully understands this
Agreement's meaning and legally binding effect. Each party has participated
fully and equally in the negotiation and drafting of this Agreement. Each party
assumes the risk of any misrepresentation or mistaken understanding or belief
relied upon by his or it in entering into this Agreement.

                                       9

<PAGE>

         g. The Company and the Executive agree that the Executive's obligations
to the Company during the Executive's employment with the Company, as well as
any other obligation of the Executive under this Agreement, may be assigned to
any successor in interest to the Company or any division or affiliate of the
Company in its sole discretion and without additional consideration or prior
notice to the Executive, but that nothing requires the Company to do so. The
Executive's obligations under this Agreement are personal in nature and may not
be assigned by the Executive to any other person or entity.

         h. The Company and the Executive acknowledge and agree that future
alterations to the Executive's work hours, working title, management or
supervisory responsibilities, number of subordinate Executives, sales or
promotional budgets, reporting relationships within the Company or with
businesses affiliated with the Company, management responsibilities or duties,
or similar changes or alterations may occur periodically during the Executive's
employment with the Company. The Company and the Executive agree that the
Company, in its sole discretion, may implement such alterations or adjustments
for any or no reason and that any such action shall not constitute a breach of
this Agreement so long as the Company continues to perform its remaining
obligations as provided by this Agreement.

         i. This instrument constitutes the entire Agreement between the parties
regarding its subject matter. When signed by all parties, this Agreement
supersedes and nullifies all prior or contemporaneous conversations,
negotiations, or agreements, oral and written, regarding the subject matter of
this Agreement. In any future construction of this Agreement, this Agreement
should be given its plain meaning. This Agreement may only be amended only by a
writing signed by the Company and the Executive.

         j. Notwithstanding the termination of this Agreement and of the
Executive's employment with the Company for any reason, paragraphs 9, 10 and 11
of this Agreement shall continue in full force and effect in accordance with
their terms following such termination.

         k. This Agreement may be executed in counterparts, a counterpart
transmitted via facsimile, and all executed counterparts, when taken together,
shall constitute sufficient proof of the parties' entry into this Agreement. The
parties agree to execute any further or future documents which may be necessary
to allow the full performance of this Agreement. This Agreement contains
headings for ease of reference. The headings have no independent meaning.

                                       10

<PAGE>

THE EXECUTIVE STATES THAT HE HAS FREELY AND VOLUNTARILY ENTERED INTO THIS
AGREEMENT AND THAT HE HAS READ AND UNDERSTOOD EACH AND EVERY PROVISION THEREOF.
THIS AGREEMENT IS EFFECTIVE UPON THE EXECUTION OF THIS AGREEMENT BY BOTH
PARTIES.

                        UNDERSTOOD, AGREED, AND ACCEPTED:

TONY LIU                                        AMERICAN ORIENTAL
                                                BIOENGINEERING, INC.

Name: /s/ Tony Liu                              By:   /s/ Shujuh Liu
      ----------------------                          --------------------------
                                                      Name: Shujuh Liu
                                                      Title: Director and Chief
                                                      Executive Officer

Date:  March 24, 2004                           Date: March 24, 2004
       ---------------------                          --------------------------

                                       11

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00065-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00065-of-00352.parquet"}]]