On May 9, 2012, Mr. Larry Wizel submitted his resignation as an independent director of the Board of Directors of American Oriental Bioengineering Inc. Mr. Wizel's decision to resign was due to health reasons. At the time of his resignation, Mr. Wizel served as Chairperson of the Audit Committee, and as a member of the Compensation Committee and Nominating and Corporate Governance Committees. There was no disagreement between Mr. Wizel and the company on any matter relating to the company's operations, policies or practices. On May 15, 2012, Mr. .Wizel and the company entered into a Consulting Agreement. The Agreement provides that Mr. Wizel will work as a financial consultant to the company for a one year term, which term may be extended upon the mutual agreement of the company and Mr. Wizel.