ITEM 5.02. DEPARTURE OF DIRECTORS OR CERTAIN OFFICERS; ELECTION OF DIRECTORS; APPOINTMENT OF CERTAIN OFFICERS; COMPENSATORY ARRANGEMENTS OF CERTAIN OFFICERS.

As previously disclosed, Albert (Wai Keung) Yeung was elected as an independent director at the Annual Meeting of the Stockholders of China Biologic Products, Inc. (the "Company") on July 20, 2012.

Mr. Yeung has been since 2005 a partner of Albert Yeung & Associate Consulting Company, a consulting company providing M&A, leadership and executive coaching services to senior managers and chief executive officers. From August 2006 to February 2011, Mr. Yeung also served as a director of BMP Sunstone Corporation, a company listed on NASDAQ until the company's acquisition by Sanofi. Prior to that, Mr. Yeung had spent more than 30 years in China's pharmaceutical industry, holding various senior sales, marketing and general management positions with major pharmaceutical corporations in Hong Kong and mainland China, including Johnson & Johnson, Xian-Janssen, Burroughs Wellcome, Bristol Myers-Squibb and GlaxoSmithKline.

The Company has entered into a Director Agreement and an Indemnification Agreement with Mr. Yeung on July 29, 2012. Under the terms of the Director Agreement, the Company agreed to pay Mr. Yeung a monthly fee of US$5,000 as compensation for his service as a director of the Company. Under the terms of the Indemnification Agreement, the Company agreed to indemnify Mr. Yeung against expenses, judgments, fines, penalties, or other amounts actually and reasonably incurred by him in connection with any proceeding, provided that he has acted in good faith and in the best interests of the Company. The Company also granted Mr. Yeung an option to purchase 20,000 shares of the Company's common stock under the Company's 2008 Equity Incentive Plan, which option will have an exercise price of $10.57 per share and will vest in two equal portions, with the first 10,000 shares vesting on January 30, 2013 and the remaining 10,000 shares vesting on July 30, 2013. The description of the terms of the Director Agreement and Indemnification Agreement herein is qualified by reference to the provisions of the Director Agreement and Indemnification Agreement, the forms of which were filed as exhibits to the Company's Form 8-K filed on July 30, 2008.

Mr. Yeung qualifies as an "independent" director within the meaning of the NASDAQ Marketplace Rules. There is no family relationship between Mr. Yeung and any directors or executive officers of the Company. In addition, there has been no transaction, nor is there any currently proposed transaction, between Mr. Yeung and the Company that would require disclosure under Item 404(a) of Regulation S-K.

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