AMENDMENTTO EMPLOYMENTAGREEMENT

 

 

 

This Amendment to Employment Agreement (this “Amendment”), dated November 15, 2009, is made by and among American Oriental Bioengineering Inc., a Nevada corporation (the “Company”), and Tony Liu, residing at Nangang District, Harbin, China  (the “Executive”).  Any capitalized term not defined herein shall have the meaning for such term specified in the Employment Agreement (as defined below).

 

WHEREAS, the Executive and the Company entered into an Employment Agreement dated April 9, 2008, and effective as of April 20, 2008 (the “Employment Agreement”);

 

WHEREAS,  under the Employment Agreement, the Executive was initially granted an option to purchase a certain number of shares of common stock (the "Initial Option Grant"), which number was based upon the Company's internal method for valuing each share of common stock underlying the stock option at the time of the grant (the "Per Share Value"), to reach a total annual compensation value for accounting purposes (the "Total Value") ;

 

WHEREAS, as the result of an error in the calculation of the Per Share Value, the number of shares issuable under the Initial Option Grant was incorrect and should have been lower although the Total Value remains unchanged and the exercise price remains unchanged from the date of the Initial Option Grant;

 

WHEREAS, the Initial Option Grant should be reduced and the Compensation Committee of the Board of Directors has ratified, approved and confirmed in all respects, the reduction in the Initial Option Grant;

 

NOW THEREFORE, in consideration of the foregoing and for other consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto, intending to be legally bound, hereby agree as follows:

 

 

 

 

 

 

 

IN WITNESS WHEREOF, the parties hereto have duly executed this Amendment as of the day and year first above written.

 

 

	AMERICAN ORIENTAL BIOENGINEERING, INC.
	By:  /s/ Yanchun Li
	Name: Yanchun Li
	Title:   Chief Financial Officer

Tony Liu