Document:

c46541_ex4-15.htm -- Converted by SEC Publisher, created by BCL Technologies Inc., for SEC Filing

AMENDMENT TO SECURITIES PURCHASE AGREEMENT

      This AMENDMENT NO. 5 TO THE SECURITIES PURCHASE AGREEMENT (this “Amendment”) is made and entered into as of August 20, 2007 by and among China Biologic
Products, Inc. (the “Company”), and the investors identified on the signature pages hereto (each an “Investor” and, collectively, the “Investors”). 

      WHEREAS, the Company and the Investors are parties to that certain Securities Purchase Agreement, dated as of July 18, 2006 (the “Purchase Agreement”), pursuant
to which, among other things, the Company issued and delivered to the Investors certain securities of the Company.  All capitalized terms used and not otherwise defined herein shall have the respective meanings set forth in the Purchase Agreement.

      WHEREAS, pursuant to Section 6.4 of the Purchase Agreement, no provision of the Purchase Agreement may be amended other than by an instrument in writing signed by the Company and Investors holding a majority of the Shares, and
any amendment to the Purchase Agreement made in conformity with the provisions of Section 6.4 shall be binding on all Investors and holders of Shares, as applicable. 

      WHEREAS, each of the Investors holds in the aggregate the number of Shares set forth on their respective signature pages hereto, and collectively, the Investors hold an aggregate of 3,600,160 Shares, representing in excess of a
majority of the Shares. 

      NOW, THEREFORE, in consideration of the foregoing recitals and other good and valuable consideration the receipt and sufficiency are hereby acknowledged, the parties hereby agree as follows: 

          1.      Schedule 3.1(v) to the Purchase Agreement shall be deleted and replaced in its entirety by Exhibit A to this Amendment. For purposes of clarification, the parties set forth on Exhibit A shall be provided piggyback registration rights as
to the number of shares of Common Stock opposite their name on Exhibit A on the first Registration Statement filed by the Company, pursuant to the Registration Rights Agreement. 

          2.      This Amendment contains the entire understanding of the parties with respect to the subject matter hereof and supersedes all prior
agreements, understandings, discussions and representations, oral or written, with respect to such matters, which the parties acknowledge have been merged into this Amendment. 

          3.      This Amendment may be executed in two or more counterparts, all of which when taken together shall be considered one and the same Amendment
and shall become effective when counterparts have been signed by each party and delivered to the other party, it being understood that both parties need not sign the same counterpart. In the event that any signature is delivered by facsimile
transmission, such signature shall create a valid and binding obligation of the party executing (or on whose behalf such signature is executed) with the same force and effect as if such facsimile signature page were an original thereof. 

          4.      Except as specifically amended by this Amendment, the Purchase Agreement shall remain in full force and effect, unaffected by this
Amendment, except that the Purchase Agreement shall incorporate this Amendment as if originally a part thereof. The Purchase Agreement shall refer to the Purchase Agreement, as amended by this Amendment. 

      IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed by their respective authorized signatories as of the date first indicated above. 

	 	
CHINA BIOLOGIC PRODUCTS, INC. 	
	 	 	 

	
	 	 	 

	
	 	 	 

	
	 	By:	
 /s/ Stanley Wong 
	
	 	 	 Stanley Wong 
	
	 	 	 Chief Executive Officer 
	

[REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK SIGNATURE 

PAGES FOR INVESTORS FOLLOW] 

	 	
INVESTORS: 	
	 	 	 

	
	 	
Pinnacle China Fund, L.P. 	
	 	 	 

	
	 	 	 

	
	 	By: 	
/s/ Barry M. Kitt 
	
	 	 	 Barry M. Kitt, 
	
	 	 	 Manager, Kitt China Management, L.L.C., 
	
	 	 	 the Manager of Pinnacle China Management, L.L.C., 
	
	 	 	 the General Partner of Pinnacle China Advisors, L.P., 
	
	 	 	 the General Partner of Pinnacle China Fund, L.P. 
	
	 	 	 

	
	 	
Total number of Shares owned: 2,110,818         	

[REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK SIGNATURE 

PAGE FOR OTHER INVESTOR FOLLOWS] 

	 	
Jayhawk China Fund (Cayman) Ltd. 	
	 

	
	 

	
	 	By:	
/s/ Michael D. Schmitz 
	
	 	 	 Michael D. Schmitz 
	
	 	 	 CFO of General Partner 
	
	 

	
	 

	
	 	
    Total number of Shares owned: 1,489,342	

Exhibit A 

Schedule 3.1(v)

	
PDS-HFI Partners 
		
500,000 shares of the Company’s Common StockEXHIBIT
      10.1

     

     

    Shandong
      Missile Biologic Products Co., Ltd

    Shandong
      Institute of Biologic Products

    Group
      Secondment Agreement

    (Summary
      Translation) 

    

    

    In
      order
      to protect the legal interests of Shandong Missile Biologic Products Co., Ltd.
      (Party A: Employing Unit), Shandong Institute of Biological Products (Party
      B:
      Entrusting Unit) and their employees and ascertain the rights and obligations
      of
      Party A and B, in reference to the Joint Venture agreement (“Agreement”) and
      Bylaws of Party A (“Bylaws”), laws and regulations promulgated by the State and
      Shandong Province Labour contract regulations, Party A&B reached a consensus
      voluntarily and agreed to enter into this agreement and committed to observe
      all
      the clauses in this agreement. 

    

    
      	 	
              I.

            	
              This
                agreement is to supplement and perfect the Agreement. It’s a supplemental
                document. It’s an agreement about group secondment which becomes effective
                after signing. From the day this agreement becomes effective, Party
                B
                entrust Party A to carry out human resources management. Party B’s
                employees work for Party A. But their status in the system remains
                unchanged. They are still considered employees of Party B in the
                system.

            

    

    

    
      	 	
              II.

            	
              Except
                for those approved by Provincial Health Bureau to stay or those retired
                voluntarily, all other employees will join Party A (except those
                choose
                not to). Party A should arrange suitable positions for these employees.
                Through negotiation, the people in the attached list are seconded
                from
                Party B.

            

    

    

    
      	 	
              III.

            	
              The
                agreement starts from _______, 2002 and ends on
                _________

            

    

    

    
      	 	
              IV.

            	
              Production,
                duties and terms

            

    

    

    
      	 	
              1.

            	
              Party
                B agrees Party A can assign work according to the needs in research,
                production, operation and other work requirements. The workers should
                finish the duties assigned in consistency with their
                roles.

            

    

    

    
      	 	
              2.

            	
              Party
                A must provide protection gears, required equipment to ensure work
                safety
                and hygiene working environment.

            

    

    

    
      	 	
              V.

            	
              Party
                A’s rights and obligations

            

    

    

    
      	 	
              a.

            	
              Party
                A’s obligations:

            

    

    

    
      	 	
              1)

            	
              Comply
                with PRC laws, regulations and policy, respect the employees and
                provide
                conducive working environment, protect the legal rights of Party
                B’s
                employees

            

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	 	
              2)

            	
              Responsible
                for training and educating the employees in the areas of law compliance,
                work ethics, techincal skills, production safety and company policy,
                protecting the rights of the employees and ensuring their fulfillment
                of
                duties

            

    

    

    
      	 	
              3)

            	
              Establish
                a structured labour union, protect the legal rights of
                employees

            

    

    

    
      	 	
              4)

            	
              In
                accordance with the regulations promulgated by the State, province
                and Tai
                An city and the Agreement, Party A pays the seconded employees in
                cash on
                a monthly basis. Party A pays Party B in full the old age pension,
                medical
                insurance, unemployment insurance, housing provident fund, education
                fund
                etc every month. Party B will submit to the relevant government
                departments every month.

            

    

    

    
      	 	
              a)

            	
              Total
                of the salaries paid by Party A must not be lower than the total
                amount on
                payroll as at December, 2001.

            

    

    

    
      	 	
              b)

            	
              Provided
                that the employee does not violate company regulations during the
                secondment term and works in the same or similar capacity, his personal
                income should not be reduced in principle. If the position has been
                changed, his salary should not be lower than 80% of the original.
                Retired
                people should be taken care off as
                well.

            

    

    

    
      	 	
              c)

            	
              Party
                A pays Party B various society security fees monthly according to
                base
                amount and standard per regulations of the state, province and
                city

            

    

    

    
      	 	
              d)

            	
              When
                the enterprise unit adjusts the salary and benefits due to a policy
                change, Party A adjusts the seconded employees’ salary individually and in
                total

            

    

    

    
      	 	
              5)

            	
              Party
                A should comply with the state’s regulations on working hours. If working
                hours are required to be prolonged to meet production needs, overtime
                pay
                should be made and state regulations should not be
                violated.

            

    

    

    Under
      the
      following conditions, Party A pay the employees a higher rate:

    

    
      	 	
              a)

            	
              Overtime
                working is paid at 150% of the normal
                rate

            

    

    

    
      	 	
              b)

            	
              Working
                on a rest day without compensated leave is paid at 200% of the normal
                rate

            

    

    

    
      	 	
              c)

            	
              Working
                on a statutory holiday is paid at 300% of the normal
                rate

            

    

    

    
      	 	
              6)

            	
              Party
                A bears the relevant costs resulting from work injuries or job related
                disease

            

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	 	
              6)

            	
              Party
                A cannot send the employees back to Party B under the following
                circumstances:

            

    

    

    
      	 	
              a)

            	
              During
                the secondment period, an employee suffers from job related disease
                or
                work injuries. He is diagnosed of losing all or part of working
                abilities

            

    

    

    
      	 	
              b)

            	
              The
                employee is in his permitted medical leave after suffering from job
                related disease or work injuries

            

    

    

    
      	 	
              c)

            	
              Female
                employees in her maternity leave or breasting
                period

            

    

    

    b. Party
      A’s
      rights

    

    
      	 	
              1)

            	
              Rewards
                and punishes the employees according to company regulations provided
                that
                these regulations don’t violate regulations promulgated by state,
                provincial and city governments

            

    

    

    
      	 	
              2)

            	
              Reassign
                positions or assign temporary or special duties (allowed by laws)
                in
                consideration of production needs,
                reasonableness

            

    

    

    
      	 	
              3)

            	
              Party
                A can send back the employee to Party B under any of the
                conditions

            

    

    

    
      	 	
              a)

            	
              Seriously
                violate disciplines or company
                regulations

            

    

    

    
      	 	
              b)

            	
              Fail
                to perform or embezzle resulting in major damages to the benefits
                of Party
                A

            

    

    

    
      	 	
              c)

            	
              Being
                sued for compensation or educated in a labor camp because of damages
                inflicted on Party B

            

    

    

    
      	 	
              d)

            	
              Due
                to illness or injuries unrelated to job, the employee loses the ability
                to
                perform duties assigned by Party A after medical
                leave

            

    

    

    
      	 	
              e)

            	
              The
                employee fails to perform satisfactorily even after retraining and
                reassignment of duties

            

    

    

    Under
      conditions d) or e) above, Party A should notify Party B and the employee in
      writing.

    

    
      	 	
              VI.

            	
              Party
                B’s rights and obligations

            

    

    

    
      	 	
              a.

            	
              Party
                B’s obligations

            

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	 	
              1)

            	
              Educate
                the employees to observe laws and protect the interests of Party
                A

            

    

    

    
      	 	
              2)

            	
              When
                there is dispute between the employee and Party, work with Party
                A’s
                labour union to resolve the dispute

            

    

    

    
      	 	
              3)

            	
              As
                the employer, participate in the legal process started by the employee
                against Party A

            

    

    

    
      	 	
              b.

            	
              Party
                B’s seconded employees’ obligations

            

    

    

    
      	 	
              1)

            	
              Actively
                participate in various training arranged by Party A including work
                ethics,
                technical skills, observe work safety procedures, disciplines and
                work
                ethics

            

    

    

    
      	 	
              2)

            	
              Accept
                and finish production duties assigned by Party A, reach the required
                standard and improve on technical
                skills

            

    

    

    
      	 	
              3)

            	
              Observe
                Party A’s various regulations, obey to Party A’s
                management

            

    

    

    
      	 	
              4)

            	
              Never
                leak technical and commercial
                secrets

            

    

    

    
      	 	
              5)

            	
              Observe
                rules and regulations as specified in the laws or
                agreed

            

    

    

    
      	 	
              6)

            	
              Under
                any of the following conditions, the employee cannot leave his position
                without approval

            

    

    

    
      	 	
              a)

            	
              Party
                A paid for a specific training and the employee has not completed
                his term
                of employment as agreed

            

    

    

    
      	 	
              b)

            	
              The
                employee has not completed a project on hand while holding an important
                position in research or operation

            

    

    

    
      	 	
              c)

            	
              A
                compensation agreement has not been reached when the employee caused
                economic damages

            

    

    

    
      	 	
              c.

            	
              Party
                B (the employees)’s rights

            

    

    

    
      	 	
              1)

            	
              Protect
                Party B and its employees as allowed by
                laws

            

    

    
      	 	 	 

      	 	
              2)

            	
              Receive
                remuneration for work performed under
                laws

            

    

    

    
      	 	
              3)

            	
              Enjoy
                resting time and holiday

            

    

    

    
      	 	
              4)

            	
              Enjoy
                salary adjustment, fringe benefits, social security, safety protection,
                clean working environment, receipt of technical
                training

            

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	 	
              5)

            	
              Raise
                dispute on labour issues

            

    

    

    
      	 	
              6)

            	
              In
                case the relevant departments confirm that the working environment
                is
                unsafe and unclean to the extent that health is jeopardized, the
                employees
                can refuse to report duties until the conditions are
                corrected

            

    

    

    
      	 	
              7)

            	
              Rights
                granted by laws and regulations

            

    

    

    
      	 	
              8)

            	
              Under
                one of the following conditions, the employee has the right to ask
                Party B
                to arrange his return to Party B with Party
                A:

            

    

    

    
      	 	
              a)

            	
              Party
                A uses force or other threatening or freedom restricting measures
                to keep
                the employees working

            

    

    

    
      	 	
              b)

            	
              Party
                A did not pay salary according to what was
                agreed

            

    

    

    
      	 	
              c)

            	
              The
                working environment provided by Party A was determined to be health
                hazardous

            

    

    

    
      	 	
              d)

            	
              Party
                A infringes on the Party B’s legal
                rights

            

    

    

    Except
      under the conditions specified in this clause, Party B’s employees need to give
      30 days’ notice in writing before leaving Party A

    

    
      	 	
              VII.

            	
              Both
                parties agreed that upon the regulations pertaining to the reform
                of
                enterprise unit be promulgated by Shandong provincial government,
                this
                Agreement will terminate automatically on the day approved by the
                direct
                reporting department. Party A and Labor Union or individual will
                then
                refer to Section 5, Clause 4 and item 2 for making the arrangement.
                

            

    

     

    
      	 	
              VIII.

            	
              When
                Party B undergoes reform, Party A should assist Party B in resolving
                the
                issues including reassignment, social security, status changing and
                compensation and other matters related to the welfare of the
                employees

            

    

    

    
      	 	
              IX.

            	
              Once
                signed, this Agreement is legally binding, both parties must observe
                strictly. The party that breaches the contract must bear the obligations
                as defined in the contract and compensate the other party for economic
                losses incurred.

            

    

    

    
      	 	
              X.

            	
              When
                dispute arises during the execution of the Agreement, Party A and
                B should
                negotiate to resolve. When it fails, Shandong provincial health bureau
                will facilitate the negotiation. When negotiation fails, either party
                can
                apply for arbitration within the allowed time limit. The party which
                disagrees with the arbitration results can file the case with the
                local
                court within the allowed time
                limit.

            

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	 	
              XI.

            	
              Any
                details not specified in this Agreement should be referred to state,
                provincial or municipal regulations if applicable. Otherwise, Party
                A
                & B should negotiate for supplementary clauses to address
                them.

            

    

    

    
      	 	
              XII.

            	
              This
                Agreement has 3 originals and 3 carbon
                copies

            

    

    

    
      	 	
              XIII.

            	
              Any
                of the above clause in violation of state laws would be overridden
                by the
                relevant laws.

            

    

    

    
      	 	
              XIV.

            	
              This
                Agreement becomes effective upon signing or chopping by both
                sides.

            

    

    

    Party
      A

    

    Shandong
      Missile Biologic Products Co., Ltd.

    

    Legal
      representative: Du Zu ing

    

    Party
      B

    

    Shandong
      Institute of Biologic Products

    

    Legal
      representative: Pang Guang Li

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