China Biologic Products, Inc.: Exhibit 10.20 - Prepared by TNT Filings Inc.



       




Exhibit 10.20






BANK OF COMMUNICATIONS LOAN CONTRACT


(Translated Copy)






Loan No.: 3790602007M/00000900 (loan 1)                   


3790602007M/00000512 (loan 2)






Borrower:                                  Shandong Taibang Biological Products Co., Ltd


Address:                                   No.14 East Hushan Road, Taian City, Shandong


Legal representative:              Lam Tung

 


Lender:                                      Taian Branch of the Bank of Communications


Address:                                   No.55 Dongyue Street, Taian City, Shandong






According to applicable laws and
regulations of the People's Republic of China (the "PRC"), the Borrower and
Lender, after reaching an agreement through negotiations, hereby enter into this
contract pursuant to Borrower's application to Lender for a working capital loan
(the "Loan") 

Article 1. The Loan 

1.1.         Type of
currency: RMB 

1.2.         Loan
amount (full-form characters): Five millions only (for each contract above) 

1.3.         Loan
term: February 28, 2007 to February 25, 2008 (loan 1) February 9, 2007 to
February 9, 2008) (loan 2) 

1.4.         The Loan
under this Loan Contract shall be solely for current capital use. 

Article 2. Interest Rate and Interest Calculation 

2.1.         Interest
rate: 6.12%, based on 360 days in a year. 

2.2.         During
the term of this Loan Contract, interest may be changed as prescribed by the
People's Bank of China’s Basic Rate when said Bank adjusts its interest rate or
rate calculation method, in which case Borrower's approval is not necessary. 

2.3.         The
formula for calculating the interest is as follows: (Daily rate = Monthly rate /
30; Monthly rate = Annual rate / 12) Interest on the loan = (the prescribed
interest rate under this Loan Contract) x (Loan amount) x (actual days of use),
where actual days of use is calculated from the day the Loan is issued. 




2.4.        
Settlement of interest under this Loan Contract is to be calculated per actual
no. of days. The settlement date is the 20th day of each month. All principal
and interest shall be paid in full on the day the term of the Loan expires. 

2.5.         Penalty
interest will be based on the prevailing Basic Rate + 50% on any overdue balance
and +100% for misappropriation of loan. If the loan is in foreign currency, the
penalty interest will be based on the contract rate + 20%. 

Article 3. Release and repayment of funds under the Loan 

3.1.         Borrower
may apply for release of funds under the Loan Contract, at one time or at
different times, within the fixed period, under Article 1.3 hereof. However,
each time Borrower must make the application to Lender at least 3 banking days
in advance. 

3.2.         Lender
shall have the right to examine the following conditions before releasing funds
under the Loan and shall decide whether to release funds based on results of the
examination: 

(1)    
whether Borrower has performed all legally-required procedures such as obtaining
government licenses, approvals and registration and other procedures Lender may
require of Borrower; 

(2)    
Whether a related guaranty contract is currently in effect, if any. 

(3)    
The financial standing of the Borrower does not has any adverse material change.


(4)    
The Borrower has comply with all the terms under this Loan Contract. 

3.3.         Actual
loan amount and drawdown date will be according to Loan Drawdown Voucher; and


3.4.         The
funds release date and amount shall be as recorded in the Loan Voucher. 

3.5.         Borrower
may repay the Loan in advance upon approval from Lender. 




Article 4. Borrower's Declaration and Warranties 

4.1.         Borrower is a legal
entity and is eligible to enter into contract on it own and take legal
obligation. 

4.2.         Borrower is obliged by
signing this agreement in good faith and has obtained all necessary
authorization and approval under law. 

4.3.         Borrower warrants that
all financial statements and related materials needed by Lender is true,
complete and accurate. 

Article 5. Lender’s Right and Obligation 

5.1.         Lender
has the right to demand repayment the principal, interest, penalty of the Loan,
including expenses payable by the Borrower according to this agreement. Lender
shall have the legal right and other right that is entitled under this
agreement. 

5.2.         Except required by law,
the Lender has a duty to keep the Borrower’s financial and operations
information confidential. 

Article 6. Obligations of Borrower 

6.1.         Borrower shall repay
principal and interest in the currency provided in Article 1.1 above. 

6.2.         Borrower shall not
misappropriates loan funds for other purpose. 

6.3.         Borrower shall pay any
expenses incurred under this agreement including but not limit to public notary
fee, verification fee, valuation fee and registration fee. 

6.4.         Borrower warrants that
it will cooperate with Lender on the supervision and inspection of the use of
the funds borrowed under this Loan Contract and of the business condition of
Borrower and that it will promptly provide all financial statements and related
materials needed by Lender, which Borrower warrants to be true, complete and
accurate. 

6.5.         Borrower warrants that
it will issue written notices to Lender upon occurrence or possible occurrence
of the following events within thirty days thereof: 




1.
    Borrower sells,
leases, transfers or otherwise disposes of all or part of its assets; 

2.    
Borrower's operational system or
organizational form of property ownership is changed materially, including, but
not limited to, introducing the practice of contracting, conducting leasing
operations, entering into joint operations, restructuring equity, merging with
(acquiring) other entities, entering into a joint venture (cooperative
arrangement), splitting into separate entities, setting up a subsidiary,
transferring title to property, reducing capital, termination or dissolution and
filing for bankruptcy; 

6.6.         Borrower
warrants that it will issue written notices to Lender upon occurrence or
possible occurrence of the following events within seven days thereof: 

1.    
Borrower amends it articles of
association, replaces its legal representative, reduces its registered capital
or makes material changes in its finances or personnel 

2.    
Borrower or Guarantor shall or may
or has applied bankruptcy by Creditors. 

3.
    Borrower is a
party to a material legal suit or its main assets have been put under property
preservation or other orders; 

4.    
Borrower provides a guaranty to a
third party, which will have a material adverse effect on its financial position
or its ability to perform its obligations under this Loan Contract; 

5.    
Borrower has signed a significant
contract that has a material impact on its financial and operations; 

6.    
Borrower or Guarantor stops
production, suspense business, dismiss, suspense for reorganization, or business
licence is withdrawn or terminated; 

7.    
Illegal activities involving the
Borrower, its legal representative or its principal officers; 

8.
    Borrower
experiences other matters which will produce a material adverse effect on its
financial position or ability to repay its debt. 

Article 7 Others (blank) 




Article 8 Demand for Early Repayment 

8.1.         Upon the
occurrence of the following events, Lender has the authority to suspense the
release of undrawn loan, and demand repayment of the principal and interest due
immediately: 

1.    
The representation and warranty of the Borrower under clause 4 below is untrue;


2.    
Borrower breaches the conditions of this agreement; 

3.    
Actual occurrence of Clause 6.6. 

4.    
During the course of other business the Borrower with the Lender, there is delay
in fulfilling contractual obligation of the Borrower even after repetitive
notices demanding for rectification. 

Article 9. Events of Default 

9.1.         Borrower
is delinquent in its repayment of the principal or interest; 

9.2.     Borrower is delinquent to pay
the relevant expenses due to occurrence of clause 9.1.; 

9.3.         Borrower
has the act of avoiding the supervision of the Lender, delaying repayment of
principal and interest or intending to delinquency, the Lender has the right to
inform relevant authority and publish the event in media. 

Article 10 Set Off 

10.1.        Lender has
the right to set off against the balance in Bank of Communication of the
Borrower in the event of overdue principal and interest; 

10.2.        After set
off, Lender will inform Borrower which bank account it has been deducted, Loan
Contract no., loan drawdown voucher number, set off amount and the remaining
outstanding amount; 

10.3.        In case of
insufficient fund, the set off will follow the sequence. First, to settle any
necessary expenses due but not paid. Second to set off principal, interest,
penalty interest and compound interest less than 90 days and then those amount
over 90 days. 

10.4.        In the case
of settling between different currencies, the Lender will adopt the exchange
rate quoted by the Bank of Communications on the day of the set off. 




Article 11 Disputes 

11.1.         Any
disputes arising from any clause under this Agreement shall be resolved at the
Court where the Lender is governed. Each party shall continue to perform the
remaining non-disputed clauses under this Agreement. 

Article 12 Other 

12.1         The Loan
Drawdown Voucher under this Loan Contract and related documents and materials
confirmed by both parties are inseparable components of this Loan Contract. 

12.2         This Loan Contract shall
become effective upon signature (or seal) by legal representatives or authorized
representatives of both parties and upon the affixing of the official seals of
both parties. 

9.4.           This Loan
Contract has three originals, which are identical to each other, with each of
the parties holding one copy. 

Borrower (Official Seal): 

Legal Representative or Authorized Representative 

(Signature or Personal Seal): 

Date of Signature: 9 February, 2007 (loan 1) 

                               
28 February, 2007 (loan 2) 

Lender (Official Seal): Taian Branch of the Bank of Communications, Loan
Contract seal 

Legal Representative or Authorized Representative 

(Signature or Personal Seal): 

Date of Signature: 9 February, 2007 (loan 1) 

                               
28 February, 2007 (loan 2)