UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

SCHEDULE 14A INFORMATION

 

Proxy Statement Pursuant to Section 14(a) of the Securities Exchange Act of 1934

 

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o¨ Soliciting Material Pursuant to §240.14a-12

 

CHINA GREEN AGRICULTURE, INC.

(Name of Registrant as Specified In Its Charter)

(Name of Person(s) Filing Proxy Statement, if other than the Registrant)

CHINA GREEN AGRICULTURE, INC.
(Name of Registrant as Specified In Its Charter)
(Name of Person(s) Filing Proxy Statement, if other than the Registrant)

 

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October 29, 2012

May 18, 2016

Dear Stockholder:

 

On behalf of the Board of Directors of China Green Agriculture, Inc. (the “Company” or “we”), I invite you to attend our 2012 Annual Meeting of Stockholders for the fiscal year ended June 30, 2015 (the “Annual Meeting”). We hope you can join us. The Annual Meeting will be held:

 

 At:

Shaanxi Techteam Jinong Humic Acid Product Co., Ltd.

Xi’an Office, 3F, Borough A, Block A

No. 181, South Taibai Road, Xi’an, Shaanxi Province, People’s Republic of China 710065

 

 On:December 15, 2012June 28, 2016

 

 Time:10:00 a.m.p.m., local timeE.T.

 

The Notice of Annual Meeting of Stockholders, the Proxy Statement,proxy statement, the proxy card, and our 20122015 Annual Report accompany this letter.

 

At the Annual Meeting, we will report on important activities and accomplishments of the Company and review the Company’s financial performance and business operations. You will have an opportunity to ask questions and gain an up-to-date perspective on the Company and its activities, and to meet certain directors and key executives of the Company.

 

As discussed in the enclosed Proxy Statement,proxy statement, the Annual Meeting will also be devoted to (i) the election of directors, and (ii) approval of an amendment to the Company’s 2009 Equity Incentive Plan to increase the number of shares of common stock reserved under the Plan, and (iii) consideration of any other business matters properly brought before the Annual Meeting.

 

We know that many of our stockholders will be unable to attend the Annual Meeting. We are soliciting proxies so that each stockholder has an opportunity to vote on all matters that are scheduled to come before the stockholders at the Annual Meeting. Whether or not you plan to attend, please take the time now to read the Proxy Statementproxy statement and vote via the Internet or, if you prefer, submit by mail a paper copy of your proxy or voter instructions card, so that your shares are represented at the meeting. You may also revoke your proxy or voter instructions before or at the Annual Meeting. Regardless of the number of Company shares you own, your presence in person or by proxy is important for quorum purposes and your vote is important for proper corporate action.

 

Thank you for your continuing interest in China Green Agriculture, Inc. We look forward to seeing you at the Annual Meeting.

 

If you have any questions about the Proxy Statement,proxy statement, please contact us at China Green Agriculture, Inc., 3rd Floor, Borough A, Block A. No. 181, South Taibai Road, Xian, Shaanxi Province, People’s Republic of China 710065.

 

 Sincerely, 
  
 /s/ Tao Li 
 Tao Li 
 President and Chief Executive Officer 

 

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TABLE OF CONTENTS

 

NOTICE OF ANNUAL MEETING OF STOCKHOLDERS14
PROXY STATEMENT25
PROPOSAL 1 – ELECTION OF DIRECTORS48
PROPOSAL 2 –approval of an amendment to the Company’s 2009 Equity Incentive Plan to increase the number of shares of common stock reserved under the Plan7
SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT11
EXECUTIVE COMPENSATION1312
REPORT OF THE COMPENSATION COMMITTEE 
EXECUTIVE COMPENSATION TABLES 
PAYMENTS UPON TERMINATION OR CHANGE-IN-CONTROL18
DIRECTOR COMPENSATION19
CORPORATE GOVERNANCE20
REPORT OF THE AUDIT COMMITTEE23
STOCKHOLDER PROPOSALS24
STOCKHOLDER PROPOSALS25
ANNUAL REPORT ON FORM 10-K2425
OTHER MATTERS2425

 

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CHINA GREEN AGRICULTURE, INC.

 

NOTICE OF ANNUAL MEETING OF STOCKHOLDERS

 

to be held on

 

December 15, 2012June 28, 2016

 

To the Stockholders of CHINA GREEN AGRICULTURE, INC.:

 

Notice is hereby given that the Annual Meeting of Stockholders (the “Annual Meeting”) of China Green Agriculture, Inc., a Nevada corporation (the “Company”), will be held on Saturday, December 15, 2012,Tuesday, June 28, 2016, at 10:00 a.m.p.m., E.T. (June 29, 2016 at 10:00 a.m. local time,time), at the headquarters of our wholly-owned subsidiary Shaanxi Techteam Jinong Humic Acid Product Co., Ltd. at 3F, Borough A, Block A, No. 181, South Taibai Road, Xi’an, Shaanxi Province, People’s Republic of China, 710065, for the following purposes:

 

1.To elect five persons to the Board of Directors of the Company, each to serve until the next annual meeting of stockholders of the Company or until such person shall resign, be removed or otherwise leave office;

2.To amend the Company’s 2009 Equity Incentive Plan to increase the number of shares that are available for issuance thereunder; and

  

3.2.To transact such other business as may properly come before the Annual Meeting or any adjournment thereof.

 

Only stockholders of record at the close of business on October 29, 2012May 2, 2016 (the “Record Date”), are entitled to notice and to vote at the Annual Meeting and any adjournment or postponement thereof. In accordance with the rules of the Securities and Exchange Commission, we will post our proxy materials on the Internet beginning on November 5, 2012,May 18, 2016, the date we will mail Notices of Internet Availability of Proxy Materials (and, to the extent required or appropriate, full sets of proxy materials) to the holders of record and beneficial owners of our common stock as of the close of business on the Record Date.

 

A Proxy Statementproxy statement describing the matters to be considered at the Annual Meeting is attached to this Notice. Our 20122015 Annual Report accompanies this notice, but it is not deemed to be part of the Proxy Statement.proxy statement.

 

It is important that your shares are represented at the Annual Meeting. We urge you to review the attached Proxy Statementproxy statement and, whether or not you plan to attend the Annual Meeting in person, please vote your shares promptly by casting your vote via the Internet or, if you receive a full set of proxy materials by mail or request one be mailed to you, and prefer to mail your proxy or voter instructions, please complete, sign, date, and return your proxy or voter instructions card in the pre-addressed envelope provided, which requires no additional postage if mailed in the United States. You may revoke your vote by submitting a subsequent vote over the Internet or by mail before the Annual Meeting, or by voting in person at the Annual Meeting.

 

If you plan to attend the meeting, please notify us of your intentions. This will assist us with meeting preparations. If your shares are not registered in your own name and you would like to attend the Annual Meeting, please follow the instructions contained in the Notice of Internet Availability of Proxy Materials and any other information forwarded to you by your broker, trust, bank, or other holder of record to obtain a valid proxy from it. This will enable you to gain admission to the Annual Meeting and vote in person.

 

 
By Order of the Board of Directors,
  
 /s/ Tao Li 
 

Tao Li

Chairman of the Board

 

October 29, 2012May 18, 2016

 

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CHINA GREEN AGRICULTURE, INC.
3rd Floor, Borough A, BlackBlock A. No. 181
South Taibai Road, Xi’an, Shaanxi Province

People’s Republic of China 710065

 

PROXY STATEMENT

 

PROXY STATEMENT

INFORMATION CONCERNING SOLICITATION AND VOTING

 

This Proxy Statementproxy statement and the accompanying proxy are being furnished with respect to the solicitation of proxies by the Board of Directors of China Green Agriculture, Inc., a Nevada corporation (the “Company” or “we”), for our 2012 Annual Meeting of Stockholders for fiscal year ended June 30, 2015 (the “Annual Meeting”). The Annual Meeting will be held on Saturday, December 15, 2012,Tuesday, June 28, 2016, at 10:00 a.m.p.m., E.T. (June 29, 2016 at 10:00 a.m. local time,time), and at any adjournment(s) or postponement(s) thereof, at the headquarters of our wholly-owned subsidiary, Shaanxi Techteam Jinong Humic Acid Product Co., Ltd. located at 3F, Borough A, Block A, No. 181, South Taibai Road, Xi’an, Shaanxi Province, People’s Republic of China.China, 710065.

 

The date on which the Proxy Statementproxy statement and form of proxy card are intended to be sent or made available to stockholders is November 5, 2012.May 18, 2016.

 

The purposes of the Annual Meeting are to seek stockholder approval of the following proposals: (i)proposal: electing five (5) directors to our Board of Directors (the “Board”) and (ii) approval of an amendment to the Company’s 2009 Equity Incentive Plan to increase the number of shares of common stock reserved under the Plan.. We will also transact such other business as may properly come before the Annual Meeting or any adjournment thereof.

 

Who May Vote

 

Only stockholders of record of our common stock, par value $.001 per share, as of the close of business on October 29, 2012May 2, 2016 (the “Record Date”) are entitled to notice and to vote at the Annual Meeting and any adjournment or adjournments thereof.

 

A list of stockholders entitled to vote at the Annual Meeting will be available at the Annual Meeting and for ten days prior to the Annual Meeting, during office hours, at our executive offices located at 3rd Floor, Borough A, Block A. No. 181, South Taibai Road, Xian, Shaanxi Province, People’s Republic of China, 710065, by contacting our Chief Financial Officer.

 

The presence at the Annual Meeting of one-third of the outstanding shares of our common stock as of the Record Date, in person or by proxy, is required for a quorum. Should you submit a proxy or voter instructions, even though you abstain as to one or more proposals, or you are present in person at the Annual Meeting, your shares shall be counted for the purpose of determining if a quorum is present.

 

Broker “non-votes” are not included for the purposes of determining whether a quorum of shares is present at the Annual Meeting. A broker “non-vote” occurs when a nominee holder, such as a brokerage firm, bank or trust company, holding shares of record for a beneficial owner does not vote on a particular proposal because the nominee holder does not have discretionary voting power with respect to that item and has not received voting instructions from the beneficial owner.

 

As of the Record Date,May 2, 2016, we had issued and outstanding 27,938,83936,978,605 shares of our common stock. Each record holder of our common stock on the Record Date is entitled to one vote for each share then held on all matters to be voted at the Annual Meeting. No other class of voting securities was then outstanding.

 

Voting Your Proxy

 

You may vote by proxy over the Internet by following the instructions provided in the Notice of Internet Availability of Proxy Materials mailed to you or your household. If you have received printed copies of the proxy materials by mail, or if you request printed copies of the proxy materials by mail by following the instructions on the Notice of Internet Availability of Proxy Materials, you can also vote by mail by completing, dating, and signing the proxy or voter instructions card and mailing it in the pre-addressed envelope provided, which requires no additional postage if mailed in the United States. You may submit your vote over the Internet until 11:59pm, EST,ET, on December 13, 2012.June 27, 2016. If you vote by mail, please be aware that we can recognize your vote only if we receive it by close of business on the day before the Annual Meeting.

 

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You may also vote in person at the Annual Meeting. If your shares are held through a broker, trust, bank, or other nominee, please refer to the Notice of Internet Availability of Proxy Materials and any other information forwarded to you by such holder of record to obtain a valid proxy from it. You will need to bring this legal proxy with you to the Annual Meeting in order to vote in person.

 

The shares represented by any proxy duly given will be voted at the Annual Meeting in accordance with the instructions of the stockholder. If no specific instructions are given, the shares will be voted as follows:

FOR the election of the nominees for director set forth herein.  the directors named in this proxy statement.

In addition, if other matters come before the Annual Meeting, the persons named in the accompanying form of proxy will vote in accordance with their best judgment with respect to such matters.

 

Each share of our common stock outstanding on the Record Date will be entitled to one vote on all matters. Under Proposal 1 (Election of Directors), the five candidates proposed for election as directors at the Annual Meeting are uncontested. In uncontested elections, directors are elected by majority of the votes cast at the Annual Meeting. In counting the votes cast, only those cast “for” and “against” a matter are included. Please note that you cannot vote “against” a nominee for director, although you may withhold your vote from a nominee.

 

Shares which abstain or which are withheld from voting as to a particular matter, and shares held in “street name” by brokers or nominees who indicate on their proxies that they do not have discretionary authority to vote such shares as to a particular matter, will not be counted as votes in favor of such matter, and will also not be counted as shares voting on such matter. Accordingly, abstentions, withheld votes, and “broker non-votes” will have no effect on the voting on matters that require the affirmative vote of a plurality or a majority of the votes cast or the shares voting on the matter.

 

Stockholders have no cumulative voting rights or dissenter’s or appraisal rights relating to the matters to be acted upon at the Annual Meeting.

 

Revoking Your Proxy

 

Even if you submit a proxy or voter instructions, you may revoke your proxy and change your vote. You may revoke your proxy or voter instructions by submitting a new proxy or voter instructions over the Internet by using the procedure to vote your shares online described in the Notice of Internet Availability of Proxy Materials. You may also revoke your proxy by mail by requesting a copy be mailed to you, executing a subsequently dated proxy or voter instructions card, and mailing it in the pre-addressed envelope, which requires no additional postage if mailed in the United States. You may also revoke your proxy by your attendance and voting in person at the Annual Meeting. Mere attendance at the meeting will not revoke a proxy or voter instructions. We will vote the shares in accordance with the directions given in the last proxy or voter instructions submitted in a timely manner before the Annual Meeting. You may revoke your vote over the Internet until 11:59 pm, EST,ET, on December 13, 2012.June 27, 2016. If you revoke your vote by mail, please be aware that we can recognize the revoked vote only if we receive it by close of business on the day before the Annual Meeting.

 

If the Annual Meeting is postponed or adjourned for any reason, at any subsequent reconvening of the Annual Meeting, all proxies will be voted in the same manner as the proxies would have been voted at the original convening of the Annual Meeting (except for any proxies that have at that time effectively been revoked or withdrawn), even if the proxies had been effectively voted on the same or any other matter at a previous meeting.

 

You are requested, regardless of the number of shares you own or your intention to attend the Annual Meeting, to vote your shares as described above.

 

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Solicitation of Proxies

 

We will pay the expenses relating to the solicitation of proxies. We may solicit proxies by mail, and our officers and employees may solicit proxies personally or by telephone and will receive no extra compensation from such activities. We will reimburse brokerage houses and other nominees for their expenses incurred in sending proxies and proxy materials to the beneficial owners of shares held by them.

  

Delivery of Proxy Materials to Households

 

Only one copy of the our 20122015 Annual Report, this Proxy Statement,proxy statement, and/or Notice of Internet Availability of Proxy Materials, as applicable, will be delivered to an address where two or more stockholders reside with the same last name or whom otherwise reasonably appear to be members of the same family based on the stockholders’ prior express or implied consent.

 

We will deliver promptly upon written or oral request a separate copy of the 20122015 Annual Report, this Proxy Statement,proxy statement, and/or Notice of Internet Availability of Proxy Materials, as applicable, upon such request. If you share an address with at least one other stockholder, currently receive one copy of our annual report, proxy statement, and/or Notice of Internet Availability of Proxy Materials at your residence, and would like to receive a separate copy of our annual report, proxy statement, and Notice of Internet Availability of Proxy Materials for our future stockholder meetings, please follow the instructions for requesting materials indicated on the Notice of Internet Availability of Proxy Materials sent to your residence and specify this preference in your request.

 

If you share an address with at least one other stockholder and currently receive multiple copies of annual reports, proxy statements, or Notices of Internet Availability of Proxy Materials, and you would like to receive a single copy of annual reports, proxy statements, or Notices of Internet Availability of Proxy Materials, please follow the instructions for requesting materials indicated on the Notice of Internet Availability of Proxy Materials sent to you and specify this preference in your request.

 

Interest of Officers and Directors in Matters to Be Acted Upon

 

None of our officers or directors has any interest in any of the matters to be acted upon at the Annual Meeting.Meeting, except to the extent that a director is named as a nominee for election to the Board or a director.

 

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PROPOSAL 1

ELECTION OF DIRECTORS

 

General

 

Our Bylaws provide that our Board of Directors shall be comprised of not less than one (1) director nor more than nine (9) directors, and directors are elected annually at the annual shareholders meeting. The Board of Directors is currently comprised of five (5) directors and will be comprised of five (5) directors effective immediately following the election if all the nominees are elected.

 

The Board of Directors has nominated for election five (5) persons as directors. Each nominee currently serves as one of our directors. All of the nominees have consented to serve as directors. If a nominee should not be available for election as contemplated, the proxy holders will vote for a substitute designated by the current Board of Directors. We are not aware of any nominee who will be unable or who will decline to serve as a director.

 

Directors Nominees

 

Director
Nominee
 Position/Title AgeAge*Served From
     
Tao Li Chairman of the Board of Directors 46502007– Present
     
Yu HaoAle Fan Director 47352015– Present
     
Yizhao ZhangYiru Shi Director 42432011– Present
  Chairman of the Audit Committee  
  Compensation Committee Member  
  Nominating Committee Member  
     
Lianfu Liu Director 74772007– Present
  Chairman of the Nominating Committee  
  Audit Committee Member  
  Compensation Committee Member  
     
Yiru ShiJianlei Shen Director 39532015– Present
  Chairman of the Compensation Committee  
  Audit Committee Member  
  Nominating Committee Member  

*As of the date of this proxy statement.

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For information as to the shares of our common stock beneficially owned by each nominee, see the section “Securities Ownership of Certain Beneficial Owners and Management”, and as to other Board matters, see the section “Board Information.”

 

The following are biographical summaries for our nominees for election as directors:

 

Tao Li, Chairman of the Board of Directors, Chief Executive Officer and President since December 26, 2007. Mr. Li has served as the President and CEO of Shaanxi TechTeam Jinong Humic Acid Product Co., Ltd., our wholly-owned subsidiary (“Jinong”), since 2000. Mr. Li established Xi’an TechTeam Industry (Group) Co., Ltd. in 1996 and established Jinong in 2000. Mr. Li is also currently the Chairman of Kingtone Wirelessinfo Solution Holding Ltd, a NASDAQ listed company. He graduated from Northwest Polytechnic University in Xi’an, China with a Master’s degree in heat and metal treatment. Mr. Li is the current Vice Chairman of the China Green Food Association. Previously, he has held positions at the World Bank Loan Office of China Education Commission, National Key Laboratory for Low Temperature Technology, and Northwest Polytechnic University. Mr. Li is active in Shaanxi Province business and trade organizations including as a member of the CPPCC Shaanxi Committee, the Shaanxi Provincial Decision-Making Consultation Committee, Vice Chairman of the Shaanxi Provincial Federation of Industry and Commerce, Vice President of the Shaanxi Overseas Friendship Association, Vice Chairman of the Shaanxi Provincial Credit Association, Vice Chairman of the Shaanxi Provincial Youth Entrepreneurs Association, Vice Chairman of the Xi’an Municipal Federation of Industry and Commerce and Vice Chairman of the Xi’an Municipal Youth Entrepreneurs Association. Mr. Li, as the founder of our company, has been critical to our success and his experience brings to the board of directors an irreplaceable perspective with respect to our business and the industry in which we compete. These attributes make Mr. Li an ideal candidate to serve as our Chairman.

Yu HaoAle Fan, Director since December 26, 2007. Mr. Hao2015. Ms. Fan had served as our interim Chief Financial Officer from December 26, 2007 through April 23, 2008. Mr. Hao has also served as the Director of Finance at Jinong since 2002.January 2013. She has also served as comptroller of the financial department at Jinong from September 2007 to December 2012. Prior to that, he was a financial manager for Shaanxi Fengxiang Automobile Repair Plant, and Shaanxi Baoji Xinsanwei Import & Export Trading Co., Ltd. Mr. Haoshe worked as an accountant at Jinong from August 2003. Ms. Fan holds a degree in Accounting from Northwest InstituteBaoji University of Light Industry.Arts and Sciences. We believe that Mr. Hao’sMs. Fan’s knowledge of our company’sthe Company’s history and day-to-day operations and hisher experience in accounting and finance in the PRC qualify himher to serve a director of our company.

 

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Yizhao ZhangJianlei Shen, Director, Chairman of AuditCompensation Committee, CompensationAudit Committee Member and Nominating Committee Member. HeMr. Shen has served as a director of our company since March 27, 2008. He is currently assisting various Chinese companies in preparing to offer their securities overseas.  Currently he is also a director of Kaisa Group Holdings Ltd. (HK: 01638), China Education Alliance, Inc. (OTC QX: CEAI) and China Carbon Graphite, Inc. (OTC BB: CHGI). Mr. Zhang has over 17four years of experience in accountingonline sales of agriculture materials. He has been working on developing an national e-commerce transaction platform of fertilizer since 2011. He worked on integrating fertilizer producers with online financial service and internal control, corporate finance,distributors in order to help the fertilizer producers survive and portfolio management. Previously, Mr. Zhang held senior positions at Universal Travel Group, Energroups Holdings Corporation, Shengtai Pharmaceutical Inc, Chinawe Asset Management Corporation and China Natural Resources Incorporation. Mr. Zhang also held positions in portfolio management and asset trading at Guangdong South Financial Services Corporation from 1993 to 1999. He is a Certified Public Accountanttransit with the development of the State of Delaware,e-commerce in the Chinese agriculture industry. Prior to that, Mr. Shen was working in China Medical Instrument Company(CMIC), and a memberhe was in charge of the American Instituteenterprise information-based construction, including the development of Certified Public Accountants (AICPA).the national medical apparatus and instruments online sales platform. Before that, Mr. Shen worked in the State Pharmaceutical Administration. Mr. Shen also worked at the Ministry of Science and Technology from 1991 to 1997. He also has the Chartered Global Management Accountant (CGMA) designation. Mr. Zhang graduated with a bachelor’sMaster’s degree in economicsindustrial engineering from Fudan University, Shanghai in 1992 and received a Master of Business Administration with concentrations in financial analysis and accounting from the StateChangchun University of New York at BuffaloTechnology in 2003.We2000. We believe Mr. Zhang’sShen’s extensive financial and accountinge-commerce experience with various publicly traded companiesin agriculture industry qualifies Mr. ZhangShen to serve as an independent director of our company and serve as the Chairman of our Audit Committee.company.

 

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Lianfu Liu, Director, Chairman of Nominating Committee, Audit Committee Member and Compensation Committee Member. Mr. Liu has served as a director of our company since December 26, 2007. Mr. Liu has served as the Chairman of the China Green Food Association since 1998. From 1992 to 1998, Mr. Liu was a Director and Senior Engineer for the China Green Food Development Center. Prior to that, Mr. Liu was a Vice Director of the PRC Ministry of Agriculture. Mr. Liu graduated from Beijing Forestry University and studied soil conservation. We believe Mr. Liu’sLiu's experience in the agricultural industry in the PRC allows him to bring a unique perspective as an independent director of our company.

 

Yiru Shi,Director, Chairman of the CompensationAudit Committee, AuditCompensation Committee Member and Nominating Committee Member. Ms. Shi has served as a director of our company since December 9, 2011. Ms. Shi previously served as an independent director for Kingtone Wirelessinfo Solution Holding Ltd (Nasdaq: KONE) from March 2010 to July 2011. Prior to that, Ms. Shi served as Chief Financial Officer at China Infrastructure Construction Inc. from December 2009 to October 2010 and Chief Financial Officer at Shengtai Pharmaceutical Inc. from 2008 to December 2009. Prior to that, Ms. Shi served as Audit Manager at Kabani & Co. Inc. from 2005 to 2008. Ms. Shi graduated from the University of California, Irvine with an MBA degree in 2003 and Beijing Polytechnic University in 1997 with a Bachelor’s degree in Computer Science and International Trade and Business. Ms. Shi is a CPA in the United States and is fluent in English and Chinese. We believe Ms. Shi’s technical accounting background, strong academic credentials and substantial experience as a director and officer of other public companies qualifies Ms. Shi to serve on, and be a significant addition to, our Board of Directors.

 

Executive OfficersVote Required and Board of Directors’ Recommendation

Assuming a quorum is present, the affirmative vote of a plurality of the Companyvotes cast at the Meeting, either in person or by proxy, is required for the election of a director. For purposes of the election of directors, abstentions and broker non-votes will have no effect on the result of the vote.

THE BOARD OF DIRECTORS UNANIMOUSLY RECOMMENDS THAT YOU VOTE
FORTHESE NOMINEES.

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EXECUTIVE OFFICERS OF THE COMPANY

 

Executive Officers Position/Title AgeAge*
     
Tao Li Chief Executive Officer and 50
Zhuoyu Li (Richard)President 4624
     
Ken Ren Chief Financial Officer 3639

* As of the date of this proxy statement.

 

The following is the biographical summary of our executive officers other than Mr. Ken Ren, our Chief Financial Officer. Mr.Tao Li’s biographical summary which is set forth above with the director nominees.

 

Ken Ren. Mr. Ren has served as the Chief Financial Officer of our company since April 23, 2010. Prior to joining our company, he served as a capital market analyst for the Federal Home Loan Bank of Des Moines since April 2009, where he analyzed, priced, and assisted in trading investments and issuing debt, conducted hedges and performed relative value analysis in the bank’s capital market group. From March 2008 to April 2009, Mr. Ren served as a senior investment associate at an asset management subsidiary of Wells Fargo, which provides money management services to institutional clients. Prior to that, Mr. Ren served as a portfolio analyst at Risk, Valuation and Analytics department, GMAC-ResCap from January 2007 through December 2007, where he was responsible for risk analytics in managing the credit residual portfolio. He worked in the ABS task force for Commerzbank from December 2007 to March 2008. Mr. Ren received a Ph.D. degree in Operations Research in 2006, and a M.S. degree in Computational Finance in 2004, both from Purdue University. We believe Mr. Ren is a good fit to serve as our Chief Financial Officer, given his credentials mentioned above.

 

Vote Required and BoardMr. Zhuoyu Li (Richard). 24. Mr. Li has four years of Directors’ Recommendationexperience in agricultural industry. Prior to joining the Company, Mr. Li has served as Chief Operating Officer at the Company’s affiliate, 900LH.com Food Co., Ltd. (“900LH.com”) since January 2016. From January 2015 to January 2016, Mr. Li served as a senior manager at the international department of 900LH.com, where he helped to develop the international market. Richard served as a senior manager at the customer center of 900LH.com from March 2013 through January 2015. He studied business at the University of Auckland in 2012. We believe Richard’s practical experience from 900LH.com will be a great addition to the Company.

 

Assuming a quorum is present, the affirmative vote of a plurality of the votes cast at the Meeting, either in person or by proxy, is required for the election of a director. For purposes of the election of directors, abstentions and broker non-votes will have no effect on the result of the vote.

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THE BOARD OF DIRECTORS UNANIMOUSLY RECOMMENDS THAT YOU VOTE
FORTHESE NOMINEES.

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PROPOSAL 2

APPROVAL OF AN AMENDMENT TO THE COMPANY’S 2009 EQUITY INCENTIVE PLAN

TO INCREASE THE NUMBER OF SHARES OF COMMON STOCK RESERVED UNDER THE PLAN

Our Board of Directors, acting upon the recommendation of the Board of Directors’ Compensation Committee, has approved an amendment to the Company’s 2009 Equity Incentive Plan (the “Plan”) for an increase in the number of authorized shares of common stock under the Plan (the “Amendment”) and recommends that the amendment be approved and adopted by the Company’s stockholders and directs that such proposal be submitted to at the annual meeting.

On October 27, 2009, our Board of Directors adopted the Plan, which was approved by our shareholders at our annual shareholders meeting in December 2009 whereby 2.26 million shares of the Company’s common stock to be reserved for issuance. On October 19, 2012, our Board of Directors adopted and approved an amendment of the 2009 Stock Incentive Plan subject to shareholders approval. The primary purpose for the Amendment was to increase the number of shares of the Company’s common stock available for issuance thereunder by 3 million shares to 5.26 million shares of the Company’s common stock.

Pursuant to Section 1.5 of the Plan, the maximum number of shares of common stock of the Company that are available for issuance under the plan is 2.26 million. As of October 19, 2012, we have issued shares of restricted stock or stock options to purchase of shares of common stock in an aggregate of 2,166,506 shares and 93,494 shares of common stock is available for issuance under the Plan.

The Compensation Committee of our Board of Directors has reviewed the Plan and determined that the Plan requires additional available shares for issuance to provide flexibility with respect to stock-based compensation that the compensation committee believes is necessary to establish appropriate long-term incentives to achieve our objectives. Our board of directors believes that it is advisable to increase the 2.26 million share limit to 5.26 million shares in order to attract and compensate employees, officers, directors and other eligible participants upon whose judgment, initiative and effort we depend. The issuance of award under the Plan to these eligible participants is designed to align the interests of such participants with those of our stockholders.

The proposed amendment to the Plan increases the number of shares of common stock that may be issued as awards under the Plan by 3 million shares, or approximately 10.7% of the 27,938,839 shares of common stock outstanding as of October 19, 2012. As amended, the Plan will continue to provide that all of the shares authorized for issuance (including the increased shares) may be granted as incentive stock options and the Plan will also continue to provide for appropriate adjustments in the number of shares in the event of a stock dividend, recapitalization, merger or similar transaction.

The following is a summary of the principal features of the Plan. The summary below is qualified in its entirety by the terms of the Plan, as proposed to be amended, a copy of which is attached hereto as Appendix A and is incorporated by reference herein.

Shares Available

Our Board of Directors has authorized, subject to stockholder approval, 5,260,000 shares of our common stock for issuance under the Plan. In the event of any stock dividend, stock split, reverse stock split, share combination, recapitalization, merger, consolidation, spin-off, split-up, reorganization, rights offering, liquidation, or any similar change event of or by our company, appropriate adjustments will be made to the shares subject to the Plan and to any outstanding Awards. Shares available for Awards under the Plan may be either newly-issued shares or treasury shares.

In certain circumstances, shares subject to an outstanding Award may again become available for issuance pursuant to other Awards available under the Plan. For example, shares subject to forfeited, terminated, canceled or expired Awards will again become available for future grants under the Plan. In addition, shares subject to an Award that are withheld by us to satisfy tax withholding obligations shall also be made available for future grants under the Plan.

Administration

The Plan will be administered by a committee of our Board of Directors appointed by our Board of Directors to administer the Plan or if such a committee is not appointed or unable to act, then our entire Board of Directors (the “Committee”). The Committee will consist of at least two members who are non-employee directors within the meaning of Rule 16b-3 under the Exchange Act. With respect to the participation of individuals who are subject to Section 16 of the Exchange Act, the Plan is administered in compliance with the requirements of Rule 16b-3 under the Exchange Act. In the event that the Compensation Committee of the Board (“Compensation Committee”) meets the requirements stated above, such Compensation Committee shall be the Committee hereunder unless otherwise determined by the Board. Subject to the provisions of the Plan, the Committee determines the persons to whom grants of options, SARs and shares of restricted stock are to be made, the number of shares of common stock to be covered by each grant and all other terms and conditions of the grant. If an option is granted, the Committee determines whether the option is an incentive stock option or a nonstatutory stock option, the option's term, vesting and exercisability, the amount and type of consideration to be paid to our company upon the option's exercise and the other terms and conditions of the grant. The terms and conditions of restricted stock and SAR Awards are also determined by the Committee. The Committee has the responsibility to interpret the Plan and to make determinations with respect to all Awards granted under the Plan. All determinations of the Committee are final and binding on all persons having an interest in the Plan or in any Award made under the Plan. The costs and expenses of administering the Plan are borne by our company.

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Eligibility

Eligible individuals include our and our subsidiaries' employees (including our and our subsidiaries' officers and directors who are also employees) or consultants whose efforts, in the judgment of the Committee, are deemed worthy of encouragement to promote our growth and success. Non-employee directors of our Board of Directors are also eligible to participate in the Plan. All eligible individuals may receive one or more Awards under the Plan, upon the terms and conditions set forth in the Plan. There is no assurance that an otherwise eligible individual will be selected by the Committee to receive an Award under the Plan. Because future Awards under the Plan will be granted in the discretion of the Committee, the type, number, recipients and other terms of such Awards cannot be determined at this time.

Stock Options and SARs

Under the Plan, the Committee is authorized to grant both stock options and SARs. Stock options may be either designated as non-qualified stock options or incentive stock options. Incentive stock options, which are intended to meet the requirements of Section 422 of the Internal Revenue Code such that a participant can receive potentially favorable tax treatment, may only be granted to employees. Therefore, any stock option granted to consultants and non-employee directors are non-qualified stock options. The tax treatment of incentive and non-qualified stock options is generally described later in this summary. SARs may be granted either alone or in tandem with stock options. A SAR entitles the participant to receive the excess, if any, of the fair market value of a share on the exercise date over the strike price of the SAR. This amount is payable in cash, except that the Committee may provide in an Award agreement that benefits may be paid in shares of our common stock. In general, if a SAR is granted in tandem with an option, the exercise of the option will cancel the SAR, and the exercise of the SAR will cancel the option. Any shares that are canceled will be made available for future Awards. The Committee, in its sole discretion, determines the terms and conditions of each stock option and SAR granted under the Plan, including the grant date, option or strike price (which, in no event, will be less than the par value of a share), whether a SAR is paid in cash or shares, the term of each option or SAR, exercise conditions and restrictions, conditions of forfeitures, and any other terms, conditions and restrictions consistent with the terms of the Plan, all of which will be evidenced in an individual Award agreement between us and the participant.

Certain limitations apply to incentive stock options and SARs granted in tandem with incentive stock options. The per share exercise price of an incentive stock option may not be less than 100% of the fair market value of a share of our common stock on the date of the option's grant and the term of any such option shall expire not later than the tenth anniversary of the date of the option's grant. In addition, the per share exercise price of any option granted to a person who, at the time of the grant, owns stock possessing more than 10% of the total combined voting power or value of all classes of our stock must be at least 110% of the fair market value of a share of our common stock on the date of grant and such option shall expire not later than the fifth anniversary of the date of the option's grant.

Options and SARs granted under the Plan become exercisable at such times as may be specified by the Committee. In general, options and SARs granted to participants become exercisable in three equal annual installments, subject to the optionee's continued employment or service with us. However, the aggregate value (determined as of the grant date) of the shares subject to incentive stock options that may become exercisable by a participant in any year may not exceed $100,000. If a SAR is granted in tandem with an option, the SAR will become exercisable at the same time or times as the option becomes exercisable.

Except as otherwise set forth in the Award agreement, options shall expire after a term of five years. However, the maximum term of options and SARs granted under the Plan is ten years. If any participant terminates employment due to death or disability or retirement, the portion of his or her option or SAR Awards that were exercisable at the time of such termination may be exercised for one year from the date of termination. In the case of any other termination, the portion of his or her option or SAR Awards that were exercisable at the time of such termination may be exercised for three months from the date of termination. However, if the remainder of the option or SAR term is shorter than the applicable post-termination exercise period, the participant's rights to exercise the option or SAR will expire at the end of the term. In addition, if a participant's service terminates due to cause, all rights under an option or SAR will immediately expire, including rights to the exercisable portion of the option or SAR. Shares attributable to an option or SAR that expire without being exercised will be forfeited by the participant and will again be available for Award under the Plan.

Unless limited by the Committee in an Award agreement, payment for shares purchased pursuant to an option exercise may be made (i) in cash, check or wire transfer, (ii) subject to the Committee's approval, in shares already owned by the participant (including restricted shares held by the participant at least six months prior to the exercise of the option) valued at their fair market value on the date of exercise, or (iii) through broker-assisted cashless exercise procedures.

Restricted Stock

Under the Plan, the Committee is also authorized to make Awards of restricted stock. A restricted stock Award entitles the participant to all of the rights of a stockholder of our company, including the right to vote the shares and the right to receive any dividends. However, the Committee may require the payment of cash dividends to be deferred and if the Committee so determines, re-invested in additional shares of restricted stock. Before the end of a restricted period and/or lapse of other restrictions established by the Committee, shares received as restricted stock shall contain a legend restricting their transfer, and may be forfeited (i) in the event of termination of employment, (ii) if our company or the participant does not achieve specified performance goals after the grant date and before the participant's termination of employment or (iii) upon the failure to achieve other conditions set forth in the Award agreement.

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An Award of restricted stock will be evidenced by a written agreement between us and the participant. The Award agreement will specify the number of shares of our common stock subject to the Award, the nature and/or length of the restrictions, the conditions that will result in the automatic and complete forfeiture of the shares and the time and manner in which the restrictions will lapse, subject to the Award holder's continued employment by us, and any other terms and conditions the Committee shall impose consistent with the provisions of the Plan. The Committee also determines the amount, if any, that the participant shall pay for the shares of restricted stock. However, the participant must be required to pay at least the par value for each share of restricted stock. Upon the lapse of the restrictions, any legends on the shares of our common stock subject to the Award will be re-issued to the participant without such legend.

Unless the Committee determines otherwise in the Award or other agreement, if a participant terminates employment for any reason, all rights to restricted stock that are then forfeitable will be forfeited. Restricted stock that is forfeited by the participant will again be available for Award under the Plan.

Other Stock-Based Awards

Under the Plan, the Committee is also authorized to grant other stock-based awards valued in whole or in part by reference to or otherwise based on stock (“Other Stock-Based Awards”), which include performance shares, convertible preferred stock (to the extent a series of preferred stock is authorized), convertible debentures, warrants, exchangeable securities and awards based of stock or options based on fair market value, book value, or performance by the Company or any subsidiary, affiliate or division. Other Stock-Based Awards may be granted in tandem with other Awards under the Plan.

Other Stock-Based Awards may not be sold, assigned, transferred, pledged or otherwise encumbered prior to the date to which the stock is issued or, if later, the date on which any applicable restriction, performance or deferral period lapses. The recipient of an Other Stock-Based Award, subject to the terms of the grant agreement, is entitled to interest or dividends with respect to the number of shares covered by their Other Stock-Based Award.

Change in Control Provisions

In the event of a change in control of the Company, and except as otherwise set forth in the applicable grant agreement, all unvested portions of Awards shall vest immediately. Awards, whether or not then vested, shall be continued, assumed, or have new rights as determined by the Committee in its sole discretion, and restrictions to which any shares of Restricted Stock or any other Award granted prior to the change in control are subject shall not lapse. Awards shall, where appropriate at the Committee’s discretion, receive the same distribution of the Company’s common stock on such terms as determined by the Committee. Upon a change in control, the Committee may also provide for the purchase of any Awards for an amount of cash per share of common stock issuable under the Award equal to the excess of the highest price per share of the Company’s common stock paid in any transaction related to a change in control of the Company over the exercise price of such Award.

Fair Market Value

Under the Plan, fair market value means the fair market value of the shares based upon (i) the closing selling price of a share of our common stock as quoted on the principal national securities exchange on which the stock is traded, if the stock is then traded on a national securities exchange, or (ii) the closing bid price per share last quoted on that date by an established quotation service for over-the-counter securities, if the common stock is not then traded on a national securities exchange.

Transferability Restrictions

Generally and unless otherwise provided in an Award agreement, shares or rights subject to an Award cannot be assigned or transferred other than by will or by the laws of descent and distribution and Awards may be exercised during the participant's lifetime only by the participant or his or her guardian or legal representative. However, a participant may, if permitted by the Committee, in its sole discretion, transfer an Award, or any portion thereof, to one or more of the participant's spouse, children or grandchildren, or may designate in writing a beneficiary to exercise an Award after his or her death.

Termination or Amendment of the Incentive Plan

Unless sooner terminated, no Awards may be granted under the Plan after October 27, 2019. Our Board of Directors may amend or terminate the Plan at any time, but our Board of Directors may not, without stockholder approval, amend the Plan to increase the total number of shares of our common stock reserved for issuance of Awards. In addition, any amendment or modification of the Plan shall be subject to stockholder approval as required by any securities exchange on which our common stock is listed. No amendment or termination may deprive any participant of any rights under Awards previously made under the Plan.

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Summary of Federal Income Tax Consequences of the Plan

The following summary is intended only as a general guide as to the federal income tax consequences under current United States law with respect to participation in the Plan and does not attempt to describe all possible federal or other tax consequences of such participation. Furthermore, the tax consequences of awards made under the Plan are complex and subject to change, and a taxpayer's particular situation may be such that some variation of the described rules is applicable.

Options and SARS.There are three points in time when a participant and our company could potentially incur federal income tax consequences: date of grant, upon exercise and upon disposition. First, when an option or a SAR is granted to a participant, the participant does not recognize any income for federal income tax purposes on the date of grant. We similarly do not have any federal income tax consequences at the date of grant. Second, depending upon the type of option, the exercise of an option may or may not result in the recognition of income for federal income tax purposes. With respect to an incentive stock option, a participant will not recognize any ordinary income upon the option's exercise (except that the alternative minimum tax may apply). However, a participant will generally recognize ordinary income upon the exercise of a non-qualified stock option. In this case, the participant will recognize income equal to the difference between the option price and the fair market value of shares purchased pursuant to the option on the date of exercise. With respect to the exercise of a SAR, the participant must generally recognize ordinary income equal to the cash received (or, if applicable, value of the shares received).

Incentive stock options are subject to certain holding requirements before a participant can dispose of the shares purchased pursuant to the exercise of the option and receive capital gains treatment on any income realized from the exercise of the option. Satisfaction of the holding periods determines the tax treatment of any income realized upon exercise. If a participant disposes of shares acquired upon exercise of an incentive stock option before the end of the applicable holding periods (called a "disqualifying disposition"), the participant must generally recognize ordinary income equal to the lesser of (i) the fair market value of the shares at the date of exercise of the incentive stock option minus the exercise price or (ii) the amount realized upon the disposition of the shares minus the exercise price. Any excess of the fair market value on the date of such disposition over the fair market value on the date of exercise must be recognized as capital gains by the participant. If a participant disposes of shares acquired upon the exercise of an incentive stock option after the applicable holding periods have expired, such disposition generally will result in long-term capital gain or loss measured by the difference between the sale price and the participant's tax "basis" in such shares (generally, in such case, the tax "basis" is the exercise price).

Generally, we will be entitled to a tax deduction in an amount equal to the amount recognized as ordinary income by the participant in connection with the exercise of options and SARs. However, we are generally not entitled to a tax deduction relating to amounts that represent capital gains to a participant. Accordingly, if the participant satisfies the requisite holding period with respect to an incentive stock option before disposition to receive the favorable tax treatment accorded incentive stock options, we will not be entitled to any tax deduction with respect to an incentive stock option. In the event the participant has a disqualifying disposition with respect to an incentive stock option, we will be entitled to a tax deduction in an amount equal to the amount that the participant recognized as ordinary income.

Restricted Stock Awards.A participant will not be required to recognize any income for federal income tax purposes upon the grant of shares of restricted stock. With respect to Awards involving shares or other property, such as restricted stock Awards, that contain restrictions as to their transferability and are subject to a substantial risk of forfeiture, the participant must generally recognize ordinary income equal to the fair market value of the shares or other property received at the time the shares or other property become transferable or are no longer subject to a substantial risk of forfeiture, whichever occurs first. We generally will be entitled to a deduction in an amount equal to the ordinary income recognized by the participant. A participant may elect to be taxed at the time he or she receives shares (e.g., restricted stock) or other property rather than upon the lapse of transferability restrictions or the substantial risk of forfeiture. However, if the participant subsequently forfeits such shares he or she would not be entitled to any tax deduction or, to recognize a loss, for the value of the shares or property on which he or she previously paid tax. Alternatively, if an Award that results in a transfer to the participant of cash, shares or other property does not contain any restrictions as to their transferability and is not subject to a substantial risk of forfeiture, the participant must generally recognize ordinary income equal to the cash or the fair market value of shares or other property actually received. We generally will be entitled to a deduction for the same amount.

Vote Required and Board of Directors’ Recommendation

Assuming a quorum is present, the affirmative vote of a majority of the shares present at the Meeting and entitled to vote, either in person or by proxy, is required for approval of Proposal No. 2. For purposes of the approval of amendment of our 2009 Equity Incentive Plan, abstentions will have the same effect as a vote against this proposal and broker non-votes will have no effect on the result of the vote.

THE BOARD OF DIRECTORS UNANIMOUSLY RECOMMENDS THAT YOU VOTE

FORPROPOSAL NO. 2

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SECURITY OWNERSHIP OF CERTAIN
BENEFICIAL OWNERS AND MANAGEMENT

 

The following table sets forth certain information as of October 29, 2012,May 2, 2016, the Record Date,record date, with respect to the beneficial ownership of our common stock, the sole outstanding class of our voting securities, by (i) any person or group owning more than 5% of each class of voting securities, (ii) each director, (iii) each executive officer and (iv) all executive officers and directors as a group.

 

As of October 29, 2012,May 2, 2016, an aggregate of 27,938,83936,978,605 shares of our common stock were outstanding.

 

Title of Class Name and Address of Beneficial Owners(1) (2) Amount and
Nature of
Beneficial
Ownership
  Percent of Class(3) 
         
Common Stock Greater Than 5%  Shareholders        
 Tao Li  9,497,434(4)  34.0%
           
Common Stock Qing Xin Jiang  1,677,769  6.0%
           
  Directors and Executive Officers        
           
Common Stock Tao Li
President, Chief Executive Officer
and Chairman of the Board
  Same as above    Same as the above 
           
Common Stock Ken Ren
Chief Financial Officer
  380,000   1.4%
           
Common Stock Yizhao Zhang
Director
  71,000   *
           
Common Stock Yu Hao
Director
  42,523   *
           
Common Stock Lianfu Liu
Director
  41,000   *
           
Common Stock Yiru Shi
Director
  45,000   *
           
  All executive officers and directors as a group  10,076,957   36.1%
11

 

Title of Class Name and Address of Beneficial Owners (1)  Amount and
Nature of
Beneficial
Ownership
  Percent of
Class (2)
 
         
  Greater Than 5% Shareholders        
           
Common Stock Tao Li  10,662,695(3)  28.8%
           
  Directors and Executive Officers        
           
Common Stock Tao Li
President, Chief Executive Officer
and Chairman of the Board
  10,662,695   28.8%
           
Common Stock Ken Ren
Chief Financial Officer
  680,000   1.8*
           
Common Stock Yiru Shi
Director
  60,000   *
           
Common Stock Jianlei Shen
Director
  0   *
           
Common Stock Ale Fan
Director
  0   *
           
Common Stock Lianfu Liu
Director
  81,000   *
           
  All executive officers and directors as a group  11,483,695   31.1%

 

* Represents a percentage that is less than 1%.

*Represents a percentage that is less than 1%.

 

(1)Pursuant to Rule 13d-3 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), a person has beneficial ownership of any securities as to which such person, directly or indirectly, through any contract, arrangement, undertaking, relationship or otherwise has or shares voting power and/or investment power or as to which such person has the right to acquire such voting and/or investment power within 60 days.

(2)Unless otherwise stated, each beneficial owner has sole power to vote and dispose of the shares and the address of such person is c/o China Green Agriculture, Inc., 3rd Floor, Borough A, Block A. No. 181, South Taibai Road, Xian, Shaanxi Province, People’s Republic of China 710065.

 

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(3)(2)In determining the percent of common stock owned by the beneficial owners, (a) the numerator is the number of shares of common stock beneficially owned by such owner, including shares the beneficial ownership of which may be acquired, within 60 days upon the exercise of the options, if any, held by the owner; and (b) the denominator is the sum of (i) the total 27,938,83936,978,605 shares of common stock outstanding as of October 29, 2012,May 2, 2016, and (ii) the number of shares underlying the options, which such owner has the right to acquire upon the exercise of the options within 60 days (for those who have options)., if any.

 

(4)(3)Includes (i) 497,387 shares held by Mr. Li’s wife, and (ii) 897,387 shares held by Mr. Li’s son. Mr. Li disclaims beneficial ownership with respect to the shares held by his wife and son.

 

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EXECUTIVE COMPENSATION

 

Compensation Discussion and Analysis

 

Overview

 

This section contains a discussion of the material elements of compensation awarded to, earned by or paid to our principal executive officer, our principal financial officer, and our other executive officers whose total compensation exceeded $100,000 during the fiscal year ended June 30, 2012.2015. Accordingly, our “Named Executive Officers” are Mr. Tao Li, our Chairman President and Chief Executive Officer, and Mr. Ken Ren, our Chief Financial Officer.

 

Our Board of Directors established the Compensation Committee to assist with the analysis and determination of the compensation structure for our executive officers. Our Compensation Committee, consisting of three independent directors, reviews and approves, or in some cases recommends for the approval of the full Board, of Directors, the annual compensation for our executive officers. Typically, management recommends to the Compensation Committee compensation package proposals based on prevailing compensation standards in our industry, which in turn reviews and approves such proposals. Our Compensation Committee may consult with the executive officers to form consensus on such packages. Our executive officers may discuss any disagreements and needed amendment to such proposals with our Compensation Committee before such proposals are finalized and approved by the Compensation Committee.

 

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Compensation Objectives

 

Our compensation objectives are as follows:

 

·We strive to provide competitive executive compensation programs that will help to attract highly qualified individuals necessary for our continued growth. Once an executive is hired, our goal is to retain and motivate them to achieve higher levels of performance and be appropriately rewarded for that effort.

 

·Compensation and benefits are competitive with the local labor markets in which we compete, and focus also will be given to companies that operate in the agriculture, feed, and fertilizer industries. Peer companies will typically have annual revenues that are one-half to double that of us, for the purposes of compensation benchmarking.

 

·We provide an executive compensation package consisting of base salary, incentives (short term & long term), and benefits that are consistent with similar positions at our recognized competitors. Each component addresses individual and company performance with a focus on long-term profitable growth and shareholder return, competitive conditions, and our overall financial performance.

 

·All compensation programs are administered without regard to race, religion, national origin, color, sex, age, or disability, and adhere to all local laws and regulations.

 

Elements of Compensation

 

Base Salary

 

Our approach is to pay our executives a base salary that is competitive with those of other executive officers in similar positions and with similar responsibilities in our peer group of competitive companies. We believe that a competitive base salary is a necessary element of any compensation program that is designed to attract and retain talented and experienced executives. We also believe that attractive base salaries can motivate and reward executives for their overall performance.

 

Stock-Based Awards under the Equity Incentive Plan

 

In addition to base salary, the other key component of executive compensation we provide to our Named Executive Officers is equity-based compensation. In October 2009, our Board of Directors adopted our 2009 Equity Incentive Plan (the “Plan”), which was approved by our shareholders at our annual shareholders meeting in December 2009.2009 and amended in December 2012, December 2013 and June 2015. The Plan gives us the ability to grant stock options, stock appreciation rights (SARs), restricted stock and other stock-based awards to employees or consultants of our company or of any subsidiary of our company and to non-employee members of our advisory board or our Board of Directors or the board of directors of any of our subsidiaries. The Board of Directors and the Compensation Committee believe the ability to grant restricted stock, stock options and make other stock-based awards under the Plan is an important factor in attracting, stimulating and retaining qualified and distinguished personnel with proven ability and vision to serve as employees, officers, consultants or members of the Board of Directors or advisory board of our company and our subsidiaries, and to chart our course towards continued growth and financial success.

 

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During the year ended June 30, 2012, under2014, effective September 28, 2013, the Plan, our Compensation Committee granted (i) 250,000480,000 shares of restricted stock to Mr. Tao Li, our Chairman and Chief Executive Officer,the Company’s CEO; (ii) 150,000200,000 shares of restricted stock to Mr. Ken Ren, our Chief Financial Officer,the CFO, (iii) 15,00040,000 shares of restricted stock to each of Mr. Yizhao Zhang, 30,000 shares of restricted stock to Ms. Yiru Shi, and 20,000 shares of restricted stock to Mr. Lianfu Liu, each is an independent director of the three are independent directorsCompany; and (iv) 980,000 shares of our companyrestricted stock to 420 employees (the “2012 Stock“Stock Grants”). The 2012 Stock Grants all vestare subject to time-based vesting schedules, vesting in threevarious installments on June 30, 2012, September 30, 2012 and Decemberuntil March 31, 2012 with 150,000 shares vesting first and 50,000 shares vesting on each of the other two vesting dates to the CEO, 120,000 shares vesting first and 15,000 shares vesting on each of the other two vesting dates to2014 for the CFO and 10,000 shares vesting first and 2,500 shares vesting on each of the other two vesting dates to each of the three independent directors. The vestdirectors, until March 31, 2015 for the CEO and until December 31, 2015 for the employees.

On September 30, 2014, the Company granted an aggregate of 1,750,000 shares of restricted stock under the Plan to certain executive officers, directors and employees, among which (i) 240,000 shares of restricted stock to Mr. Tao Li, the CEO; (ii) 100,000 shares of restricted stock to Mr. Ken Ren, the CFO, (iii) 40,000 shares of restricted stock to Mr. Yizhao Zhang, 30,000 shares of restricted stock to Ms. Yiru Shi, and 20,000 shares of restricted stock to Mr. Lianfu Liu, each an independent director of the Company; and (iv) 1,320,000 shares of restricted shares is conditioned onstock to key employees. The stock grants are subject to time-based vesting schedules, vesting in various installments until March 31, 2015 for the individuals being employed byCFO and the Company atthree independent directors, until June 30, 2015 for the time ofCEO and until December 31, 2016 for the vest.employees.

 

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Employee Stock Purchase Plan

 

On August 9, 2012 the Board adopted the Company’s 2012 Employee Stock Purchase Plan (the “ESPP”), which became effective as of such date. The aggregate numberBoard adopted the Company’s Third Amended and Restated Employee Stock Purchase Plan (the “Restated ESPP”) on May 15, 2015. The Restated ESPP reserved a total of 3,750,000 shares of Common Stock, including 1,250,000 shares of Common Stock that was increased the Company’s common stock that may be issuedthird time. Shareholder approval is not required with respect to the issuance under the ESPP is 1,250,000 shares.pursuant to Sections 303A.08 or 312.03 of the NYSE Listed Company Manual. The ESPP has been delegated to be administered by the Compensation Committee onsince October 19, 2012. Any employee of the Company or any parent (if any) and subsidiary corporation of the Company (the “Affiliate”), who is not a natural person resident in the United States, who has been in the employ of the Company or any Affiliate for such continuous period as required by the Board preceding the grant of rights under the ESPP is eligible to participate in the ESPP during the applicable offering period, subject to administrative rules established by the Compensation Committee.

 

The ESPP is implemented by sequential offerings, the commencement and duration of which will beare determined by the Compensation Committee. The purchase price at which each share of Common Stock may be acquired in an offering period upon the exercise of all or any portion of a purchase right will beare established by the Compensation Committee. However, the purchase price on each purchase date willshall not be less than the fair market value of a share of Common Stock on the purchase date.

 

During the fiscal year ended June 30, 2014, the Company firstly issued 118,778 shares of common stock at the market price of $4.42 per share to Mr. Tao Li ($525,000 in total), the Company’s Chairman and Chief Executive Officer under the ESPP on September 26, 2013. The Company then issued 533,165 shares of common stock at the market price of $2.35 per share to certain employees enrolled in the ESPP ($1,252,938 in total) on May 26, 2014. During the year ended June 30, 2015, the Company issued 1,362,495 shares of common stock to its employees under the ESPP for cash of $2,946,746 and the Company issued 326,483 shares of common stock to its Chairman, Mr. Li, for cash proceeds of $626,847 under the ESPP.

Retirement or Pension Benefits

 

Currently, we do not provide any company sponsored retirement benefits to any employee, including the Named Executive Officers.

 

Deferred Compensation

 

We do not have any qualified or nonqualified deferred compensation plans.

 

Perquisites

 

Historically, we have provided our Named Executive Officers with minimal perquisites and other personal benefits that we believe are reasonable. We do not view perquisites as a significant component of compensation, but do believe they can be useful in attracting, motivating and retaining the executive talent for which we compete. We believe that these additional benefits assist our Named Executive Officers in performing their duties and provide time efficiencies for them. It is expected that our historical practices regarding perquisites will continue and will be subject to periodic review by our board of directors.Board.

 

Compensation Committee Report on Executive Compensation

 

The following report has been submitted by the Compensation Committee of our Board of Directors:

 

The Compensation Committee of our Board of Directors has reviewed and discussed our Compensation Discussion and Analysis with management. Based on this review and discussion, the Compensation Committee recommended to our Board of Directors that the Compensation Discussion and Analysis be included in our definitive proxy statement on Schedule 14A for our 2012 annual meeting which is incorporated by reference in our Annual Report on Form 10-K for the fiscal year ended June 30, 2012, each2015, as filed with the Commission.

 

Compensation Committee of the Board of Directors
Respectfully submitted,

Yiru Shi, Chairman
Yizhao Zhang

Lianfu Liu

14Compensation Committee of the Board of Directors
Respectfully submitted,
/s/ Jianlei Shen, Chairman

/s/ Yiru Shi

/s/ Lianfu Liu

 14

 

The foregoing Compensation Committee Report does not constitute soliciting material or to be “filed” with the Commission or subject to Regulation 14A or 14C (17 CFR 240.14a-1 through 240.14b-2 or 240.14c-1 through 240.14c-101), other than as provided in Item 407 of Regulation S-K, or to the liabilities of section 18 of the Exchange Act (15 U.S.C. 78r) and shall not be deemed filed or incorporated by reference into any other filing of our company under the Securities Act or the Exchange Act, except to the extent we specifically incorporate this Compensation Committee Report by reference therein.

 

Summary of Executive Compensation

 

The following table sets forth information concerning cash and non-cash compensation we and/or Jinong paid to our Named Executive Officersprincipal executive officer and our other most highly paid executive officer (the “named executive officers”) for services rendered in all capacities during the noted periods. No other executive officers received total annual salary and bonus compensation in excess of $100,000 during each of the three fiscal years ended June 30, 2012, 20112015, 2014 and 2010.2013.

 

SUMMARY COMPENSATION TABLE

SUMMARY COMPENSATION TABLE
Name
and
Principal
Position
 Year Ended  Salary
($)
  Bonus
($)
  Stock
Awards
($)(1)
  Option
Awards
($)(2)
  Non-Equity
Incentive Plan
Compensation
($)
  Nonqualified
Deferred
Compensation
Earnings ($)
  All Other
Compensation
($)
  Total
($)
 
                            
Tao Li June 30, 2012  $300,000   0  $857,500              $1,157,500 
Chief Executive Officer, President and Chairman of the Board June 30, 2011  $300,000  $104,400  $269,040              $673,440 
  June 30, 2010  $189,000  $43,200  $643,125  $124,432           $999,757 
                                    
Ken Ren June 30, 2012  $160,000   0  $514,500              $674,500 
Chief Financial Officer June 30, 2011  $160,000  $48,720  $212,400              $421,120 
  June 30, 2010   20,000(3)                   $20,000 
                                     

Name
and
Principal
Position
 Year Ended Salary
($)
  Bonus
($)
  

Stock
Awards

($)(1)

  Option
Awards
($)
  Non-Equity
Incentive Plan
Compensation
($)
  Nonqualified
Deferred
Compensation
Earnings ($)
  All Other
Compensation
($)
  Total
($)
 
                           
Tao Li
Chief Executive Officer, former President and Chairman of the Board
 June 30, 2015 $300,000  $36,000  $504,000              $840,000 
 June 30, 2014 $300,000  $36,000  $2,054,400              $2,390,400 
 June 30, 2013 $300,000  $36,000                 $336,000 
                                   
Ken Ren
Chief Financial Officer
 June 30, 2015 $160,000  $16,800  $210,000              $386,800 
 June 30, 2014 $160,000  $16,800  $856,000              $1,032,800 
 June 30, 2013 $160,000  $16,800  $656,000              $832,800 

(1)The amounts reported in this column reflect the fair value on the grant date of the restricted stock awards granted to our Named Executive Officers. These values are determined by multiplying the number of shares granted by the closing price of our common stock on the trading day immediately preceding the grant date. The dollar amounts do not necessarily reflect the dollar amounts of compensation actually realized or that may be realized by our Named Executive Officers.

 

The Company has not used a compensation consultant to determine or recommend the amount or form of executive or director compensation but its management believes that its executive officer compensation package is comparable to similar businesses in our location of operations.

(2)15The amounts reported in this column reflect the fair value on the grant date of the option awards granted to our Named Executive Officers. These values are determined under the principles used to calculate the grant date fair value of equity awards for purposes of our financial statements. The dollar amounts do not necessarily reflect the dollar amounts of compensation actually realized or that may be realized by our Named Executive Officers.

 

(3)Represents the portion of Mr. Ren’s annual salary of $120,000 in 2010 paid during the period from April 23, 2010, the date he became our Chief Financial Officer, and the end of the fiscal year.

 

Grants of Plan-Based Awards

 

The following table sets forth information regarding grants of awards to Named Executive Officers during the year ended June 30, 2012:2015:

 

GRANTS OF PLAN-BASED AWARDS
           All          
           Other  All       
           Stock  Other     Grant 
           Awards:  Option     Date 
           Number  Awards:  Exercise  Fair 
     Estimated Future Payouts     of  Number  or  Value 
     Under     Shares  of  Base  of Stock 
     Non-Equity Incentive Plan  Estimated Future Payouts Under  of  Securities  Price of  and 
     Awards  Equity Incentive Plan Awards  Stock or  Underlying  Option  Option 
  Grant  Threshold  Target  Maximum  Threshold  Target  Maximum  Units  Options  Awards  Awards 
Name Date  ($)  ($)  ($)  (#)  (#)  ($)  (#)  (#)  ($ /Sh)  ($)(1) 
Tao Li  6/14/2012                     250,000        $857,500 
Ken Ren  6/14/2012                     150,000        $514,500 

GRANTS OF PLAN-BASED AWARDS

 

     Estimated Future Payouts
Under
Non-Equity Incentive Plan
Awards
  Estimated Future Payouts Under
Equity Incentive Plan Awards
   All
Other
Stock
Awards:
Number
of
Shares
of
Stock or
  All
Other
Option
Awards:
Number
of
Securities
Underlying
  Exercise
or
Base
Price of
Option
  Grant
Date
Fair
Value
of Stock
and
Option
 
Name Grant
Date
  Threshold
($)
  Target
($)
  Maximum
($)
  Threshold
(#)
  Target
(#)
  Maximum
($)
   Units
(#)
  Options
(#)
  Awards
($ /Sh)
  Awards
($)(1)
 
Tao Li               240,000    $2.10.  $504,000 
Ken Ren                       100,000     $2.10  $210,000 

 

(1) With respect to the restricted stock awards, the grant date fair value is calculated by multiplying the number of shares granted by the closing price on the trading day immediately preceding the grant date.

 

15

Narrative Disclosure to Summary Compensation Table and Grants of Plan-Based Awards Table

 

Employment Agreements

We have entered into employment agreements with eachThe following is a summary of our Named Executive Officers. Thethe material terms of thosethe written employment agreements are summarized below.by and between Jinong and Mr. Tao Li.

 

Tao Li.Pursuant to an employment agreement between Jinong and Mr. Tao Li dated January 16, 2008, Mr. Li is employed by Jinong as its Chairman of the Board and Chief Executive Officer for a term of five years. The agreement will be automatically renewed on the same terms and conditions for successive additional five-year periods unless either party provides written notice of termination at least 60 days prior to the end of any five-year term. No such written notice was provided by either party at the end of the initial term under the agreement. The agreement is terminable immediately, or upon 30-days prior written notice, upon the occurrence of certain events. The agreement provides for an annual salary of RMB60,000RMB 60,000 (approximately $8,508).

 

In addition, on March 31, 2011, our Compensation Committee approved an increase in Mr. Li’s base salary to an aggregate total of $300,000 (inclusive of the RMB60,000 payable by Jinong), which is not set forth in his employment agreement.

Ken Ren. Pursuant to our employment agreement with Mr. Ken Ren, Mr. Ren will serve as our Chief Financial Officer for a term of one year and is entitled to annual compensation consisting of base salary of $120,000 per year. The agreement will automatically renew for an additional year unless either party provides notice of termination 60 days prior to the end of the current term. Either party may terminate the agreement upon prior written notice, and we may terminate the agreement at any time for cause without prior written notice. On March 31, 2011, our Compensation Committee approved an increase in Mr. Ren’s base salary to $160,000.

Description of Plan Based Awards

 

The equity incentive awards reported in the above table entitled “Grants of Plan Based Awards” were granted under, and are subject to, the terms of our 2009 Equity Incentive Plan, as amended (the “Plan”). The Plan is administered by the Compensation Committee. The Compensation Committee has authority to interpret the plan provisions and make all required determinations under the Plan.

 

With respect to all restricted stock grants disclosed herein, if we terminate the grantee’s employment or affiliation with us for any reason, all unvested portions of such restricted stock grants are forfeited. Any shares of restricted stock that do not vest for failure to meet the requisite performance targets will also be forfeited.

 

With respect to all non-qualified stock option grants disclosed herein, if we terminate the grantee’s employment or affiliation with us for any reason, all unvested options are forfeited. If the grantee’s employment or affiliation with us is terminated voluntarily by the grantee or by us for cause, all vested options are also terminated. In the event we terminate the grantee’s employment or affiliation with us without cause, the grantee has the lesser of ninety (90) days or the remaining term of the option to exercise any vested options. If we terminate the grantee’s employment or affiliation with us due to death or disability, the grantee has the lesser of twelve (12) months or the remaining term of the option to exercise any vested options. In the case of non-qualified options subject to performance based vesting, any options which do not vest for failure to meet the requisite performance targets will be forfeited.

 

16

Outstanding Equity Awards at Fiscal Year-EndYear End

 

The following table provides information on all restricted stock and stock option awards held by our Named Executive Officers as of June 30, 2012. 2015.

 

16

OUTSTANDING EQUITY AWARDS AT FISCAL YEAR-END

  

OUTSTANDING EQUITY AWARDS AT FISCAL YEAR-END 
   Option Awards  Stock Awards 
                           Equity 
                        Equity  Incentive 
                        Incentive  Plan 
                        Plan  Awards: 
                        Awards:  Market or 
         Equity              Number  Payout 
         Incentive        Number  Market  of  Value of 
         Plan        of  Value of  Unearned  Unearned 
         Awards:        Shares  Shares  Shares,  Shares, 
   Number of  Number of  Number of        or Units  or Units  Units or  Units or 
   Securities  Securities  Securities        of Stock  of Stock  Other  Other 
   Underlying  Underlying  Underlying        That  That  Rights  Rights 
   Unexercised  Unexercised  Unexercised  Option     Have  Have  That  That 
   Options  Options  Unearned  Exercise  Option  Not  Not  Have Not  Have Not 
   (#)  (#)  Options  Price  Expiration  Vested  Vested  Vested  Vested 
Name  Exercisable  Unexercisable  (#)(2)  ($)  Date  (#)  ($)  (#)  ($) 
 (1)                     5,102  $25,408       
 (2)                 100,000  $343,000       
                                       
Ken Ren(3                 30,000  $102,900       
 (4)                 200,000  $666,000       
                                       

(1)On January 3, 2010, Mr. Li was granted 15,307 shares of performance-based restricted stock.  Because we achieved certain net sales and operating income targets for our fiscal year ended June 30, 2010, (i) 5,103 shares vested on September 30, 2010, (ii) 5,102 shares vested on September 30, 2011, and (iii) 5,102 shares automatically vest on September 30, 2012.
(2)On June 14, 2012, Mr. Li was granted 250,000 shares of time-based restricted stock: (i) 150,000 shares vested on June 30, 2012; (ii) 50,000 shares vested on September 30, 2012 and (iii) 50,000 shares vested on December 31, 2012.
(3)On June 14, 2012, Mr. Ren was granted 150,000 shares of time-based restricted stock, of which (i) 120,000 shares vested on June 30, 2012, (ii) 15,000 shares vested on September 30, 2012 and (iii) 15,000 shares are to be vested on December 31, 2012.
(4)On September 28, 2012, Mr. Ren was granted 200,000 shares of time-based restricted stock, of which (i) 100,000 shares are to be vested on December 31, 2012, (ii) 50,000 shares are to be vested on March 31, 2013 and (iii) 50,000 shares are to be vested on June 30, 2014.

Option Exercises and Stock Vested During the Fiscal Year

OPTION EXERCISES AND STOCK VESTED DURING THE FISCAL YEAR
  Option Awards  Stock Awards 
Name Number of Shares
Acquired on ExerciseSecurities
Underlying
Unexercised
Options
(#)
Value Realized
on Exercise
($)Exercisable
  Number of
Shares AcquiredSecurities
on VestingUnderlying
Unexercised
Options
(#)
Unexercisable
Equity
Incentive
Plan
Awards:
Number of
Securities
Underlying
Unexercised
Unearned
Options
(#)
  Option
Exercise
Price
($)
Option
Expiration
Date
Number
of
Shares
or Units
of Stock
That
Have
Not
Vested
(#)
Market
Value Realizedof
on VestingShares
or Units
of Stock
That
Have
Not
Vested
($)
Equity
Incentive
Plan
Awards:
Number
of
Unearned
Shares,
Units or
Other
Rights
That
Have Not
Vested
(#)
Equity
Incentive
Plan
Awards:
Market
or
Payout
Value of
Unearned
Shares,
Units or
Other
Rights
That
Have Not
Vested
($)
 
Tao Li        174,102    $615,388(1)$$ 
Ken Ren        165,000    $579,000 (2)$$ 

Option Exercises and Stock Vested During the Fiscal Year

OPTION EXERCISES AND STOCK VESTED DURING THE FISCAL YEAR

  Option Awards  Stock Awards 
Name Number of
Shares
Acquired on
Exercise
(#)
  Value Realized
on Exercise
($)
  Number of
Shares
Acquired
on Vesting
(#)
  Value Realized
on Vesting
($)
 
Tao Li        666,000  $1,188,880(1)
                 
Ken Ren        100,000  $181,000(2)

 

(1) Represents the vesting of (i) 5,102226,000 shares of restricted stock on September 30, 20112014 with a market value of $4.78 per$1.98per share on such date, (ii) 19,000250,000 shares of restricted stock on December 31, 20112014 with a market value of $3.00$1.52 per share on such date, and (iii) 150,000130,000 shares of restricted stock on March 31, 2015 with a market value of $1.76 per share on such date. (iv) 60,000 shares of restricted stock on June 30, 20122015 with a market value of $3.56$2.12 per share on such date.
   
(2) Represents the vesting of (i) 15,00050,000 shares of restricted stock on September 30, 2014 with a market value of $1.98 per share on such date, (ii) 25,000 shares of restricted stock on December 31, 20112014 with a market value of $3.00$1.52 per share on such date, and (ii) 150,000(iii) 25,000 shares of restricted stock on June 30, 2012March 31, 2015 with a market value of $3.56$1.76 per share on such date.

Securities Authorized for Issuance Under Equity Compensation Plans

 

As of June 30, 2012,2015, there were no outstanding options to purchase an aggregate of 115,099any shares of common stock granted under the Plan. Options granted in the future under the Plan are within the discretion of our board of directorsBoard or our compensation committee. The following table summarizes the number of shares of our common stock authorized for issuance under our equity compensation plans as of June 30, 2012.2015.

 

17

 

Plan category Number of
securities to
be issued upon
exercise
of outstanding
options,
warrants and
rights
(a)
  Weighted-average
exercise price of
outstanding
options,
warrants and
rights
(b)
  Number of
securities
remaining
available for
future issuance
under
equity
compensation
plans (excluding
securities reflected in
column (a))
(c)
 
Equity compensation plans
approved by security holders
    $   1,631,4654,208,807 
Equity compensation plans not
approved by security holders
         
Total    $   1,631,4654,208,807 

 

Payments upon Termination or Change-in-Control

 

The following table reflects amounts payable to our Named Executive Officers (1) assuming their employment was terminated without cause on June 30, 20122015, and (2) assuming a change in control on June 30, 2012.2015.

 

Name Termination
Without
Cause(1)
  Change in
Control(2)
 
Tao Li $794  619,803(3) 
Ken Ren $13,333  $587,400(4) 

Name Termination
Without
Cause(1)
  Change in
Control(2)
 
Tao Li $794  $1,411,920(3)

 

(1) Represents the paymentspayment made pursuant to contractual agreements with eachthe Named Executive Officer as described below in this subsection.
(2) Amounts in this column reflect the value of unvested restricted stock that would be accelerated upon a change of control. The amounts are calculated based on the closing market price of a share of our common stock on June 30, 2012,2015, i.e., $2.12 per shares, multiplied by the number of unvested shares.
   
(3) Represents the vesting of 174,102 shares of restricted stock.
(4)Represents the vesting of 165,000666,000 shares of restricted stock.

Employment Agreements

 

Tao Li.Pursuant to the terms of Mr. Li’s employment agreement with Jinong, weJinong may terminate Mr. Li’s employment for any reason upon 30 days prior written notice, in which case no termination payment is due. Alternatively, weJinong may terminate his employment immediately upon the payment of one month’s salary. In the case of termination for cause as defined therein, we may terminate Mr. Li’s employment immediately without pay.

 

Ken Ren. Pursuant to the terms of our employment agreement with Mr. Ren, we may terminate Mr. Ren’s employment for any reason upon 30 days prior written notice, in which case no termination payment is due. Alternatively, we may terminate his employment immediately upon the payment of one month’s salary. In the case of termination for cause as defined therein, we may terminate Mr. Ren’s employment immediately without pay.

2009 Equity Incentive Plan Change in Control Provisions

 

In the event of a change in control of our company, and except as otherwise set forth in the applicable award agreement, all unvested portions of awards shall vest immediately. Awards, whether or not then vested, shall be continued, assumed, or have new rights as determined by our Compensation Committee or a committee of the Board of Directors designated to administer the Plan, and restrictions to which any shares of restricted stock or any other award granted prior to the change in control are subject shall not lapse. Awards shall, where appropriate at the discretion of the Committee, receive the same distribution of our common stock on such terms as determined by the Compensation Committee. Upon a change in control, the Committee may also provide for the purchase of any awards for an amount of cash per share of common stock issuable under the award equal to the excess of the highest price per share of our common stock paid in any transaction related to a change in control of our company over the exercise price of such award.

 

18

Director Compensation

 

The following table sets forth information concerning cash and non-cash compensation we paid to our directors during the fiscal year ended June 30, 2012.2015.

 

18

Name Fees
Earned
or
Paid in
Cash
($)
  Stock
Awards
($)(1)
  Option
Awards
($)
  Non-Equity
Incentive
Plan
Compensation
($)
 Non-Qualified
Deferred
Compensation
Earnings
($)
 All
Other
Compensation
($)
 Total
($)
  Fees
Earned
or
Paid in
Cash
($)
 

Stock

Awards

($)(1)

  Option
Awards
($)
 Non-Equity
Incentive
Plan
Compensation
($)
 Non-Qualified
Deferred
Compensation
Earnings
($)
 All
Other
Compensation
($)
 Total
($)
 
Yu Hao $24,000              $21,905(2) $45,905 
                
Yizhao Zhang
(former director until June 29, 2015)
 $26,000  $84,000(2)           0   84,000 
Yiru Shi $26,000  $63,000(2)           0   63,000 

Lianfu Liu

 $24,000  $51,450(3)          $3,000(4) $27,000  $26,000  $42,000(2)           0   42,000 
Yizhao Zhang $24,000  $51,450           $3,000(4) $27,000 
Yiru Shi $12,958  $51,450           $1,250(4) $14,208 
Jianlei Shen(3)  N/A   N/A   N/A   N/A   N/A   N/A   N/A 
Ale Fan(3)  N/A   N/A   N/A   N/A   N/A   N/A   N/A 

 

(1)(1)The amounts reported in this column reflect the fair value on the grant date of the restricted stock awards granted to our directors. These values are determined by multiplying the number of shares granted by the closing price of our common stock on the trading day immediately preceding the grant date. The dollar amounts do not necessarily reflect the dollar amounts of compensation actually realized or that may be realized by our directors.

 

(2)(2)Represents compensation earned as an employee of Shaanxi TechTeam Jinong Humic Acid Product Co., Ltd., our wholly-owned subsidiary.

(3)Represents 15,00040,000, 30,000, 20,000 shares of restricted shares to three independent directors respectively which granted by the Company on September 30, 2014.
(3)The director’s appointment was effective on June 14, 2012. This applies30, 2015. Consequently, there are no applicable numbers to the other two independent directors below.

(4)Represents payments made tobe filled our independent directors for attendance at meetings of our Board of Directors and Committees thereof.herein.

 

The directors will also be reimbursed for all of their out-of-pocket expenses in traveling to and attending meetings of the Board of Directors and committees on which they serve.

 

Compensation Committee Interlocks and Insider Participation

 

The members of the Compensation Committee during the fiscal year ended June 30, 20122015 were Ms. Yiru Shi and Messrs. Yizhao ZhangJianlei Shen and Lianfu Liu. During the fiscal year ended June 30, 2012:2015:

 

·none of the members of the Compensation Committee was an officer (or former officer) or employee of our company or any of its subsidiaries;

 

·none of the members of the Compensation Committee had a direct or indirect material interest in any transaction in which we were a participant and the amount involved exceeded $120,000;

 

·none of our executive officers served on the compensation committee (or another board committee with similar functions or, if none, the entire Boardboard of Directors)directors) of another entity where one of that entity’s executive officers served on our Compensation Committee;

 

·none of our executive officers was a director of another entity where one of that entity’s executive officers served on our Compensation Committee; and

 

·none of our executive officers served on the compensation committee (or another board committee with similar functions or, if none, the entire Boardboard of Directors)directors) of another entity where one of that entity’s executive officers served as a director on our Board of Directors.Board.

 

19
 

 

CORPORATE GOVERNANCE

 

Independence of the Board of Directors

 

Our Board of Directors is currently composed of five (5) members. Yizhao Zhang,Jianlei Shen, Yiru Shi and Lianfu Liu qualify as independent directors in accordance with the published listing requirements of the New York Stock Exchange (“NYSE”). The NYSE independence definition includes a series of objective tests, such as that the director is not, and has not been for at least three years, one of our employees and that neither the director nor any of his or her family members has engaged in various types of business dealings with us. In addition, as further required by NYSE rules, our Board of Directors has made an affirmative determination as to each independent director that no relationships exist which, in the opinion of our Board, of Directors, would interfere with the exercise of independent judgment in carrying out the responsibilities of a director. In making these determinations, our directors reviewed and discussed information provided by the directors and us with regard to each director’s business and personal activities as they may relate to us and our management. Our directors hold office until their successors have been elected and qualified or their earlier death, resignation or removal.

 

Board Meetings

 

The Board of Directors held twofour meetings, by telephone, in the fiscal year ended June 30, 2012.2015. In addition, the Board of Directors unanimously approved fourfourteen written consents on matters between meetings. During the fiscal year ended June 30, 2012,2015, each incumbent director attended at least 75% of the aggregate number of meetings of the Board of Directors and applicable committee meetings (held during the period for which he or she was a director) on which he or she served. We do not have a formal policy regarding attendance by members of the Board of Directors at the annual meeting of stockholders, but we encourage all members of the Board of Directors to attend the Meeting.meetings. 

 

Promoters and Certain Control Persons

We did not have any promoters at any time during the past five fiscal years.

Except as set forth in our discussion above, none of our directors or executive officers has been involved in any transactions with us or any of our directors, executive officers, affiliates or associates which are required to be disclosed pursuant to the rules and regulations of the SEC.

Board Committees

 

Our Board of Directors has established the following three standing committees which, pursuant to delegated authority, perform various duties on behalf of and report to the Board of Directors: (i) Audit Committee, (ii) Compensation Committee and (iii) Nominating Committee. From time to time, the Board of Directors may establish other committees.

 

Audit Committee

The Audit Committee is responsible for: (i) overseeing the corporate accounting and financial reporting practices; (ii) recommending the selection of our registered public accounting firm; (iii) reviewing the extent of non-audit services to be performed by the auditors; and (iv) reviewing the disclosures made in our periodic financial reports. The members of the Audit Committee are Messrs. Yizhao Zhang,Jianlei Shen, Lianfu Liu and Ms. Yiru Shi, each of whom is an independent director within the meaning of the rules of the NYSE and Rule 10A-3 promulgated by the SEC under the Securities Exchange Act of 1934, as amended (the “Exchange Act”). In addition, the Board of Directors has determined that each of Mr. Zhang and Ms. Shi qualifies as an Audit Committee Financial Expert under applicable SEC Rules. The Chairman of the Audit Committee is Mr. Zhang.Ms. Shi. The Audit Committee held sixfour meetings during the fiscal year ended June 30, 2012.2015. The Audit Committee carries out its responsibilities in accordance with the terms of its Audit Committee Charter, a copy of which was attached as Annex A to our Definitive Proxy Statement on Schedule 14A for our 2010 Annual Meeting, filed with the SEC on October 28, 2010, and is also available on our website atwww.cgagri.com.

 

Compensation Committee

 

The Compensation Committee determines matters pertaining to the compensation of executive officers and other significant employees, and administers our stock and incentive plans. The members of the Compensation Committee are Messrs. Yizhao Zhang,Jianlei Shen, Lianfu Liu and Ms. Yiru Shi. The Chairman of the Compensation Committee is Ms. Shi.Mr. Shen. The Compensation Committee held one meeting during the fiscal year ended June 30, 2012.2015. Each of the members of the Compensation Committee is a “non-employee director” within the meaning of Rule 16b-3 under the Exchange Act, and an “outside director” within the meaning of Section 162(m) under the Internal Revenue Code. The Compensation Committee carries out its responsibilities pursuant to a written charter, a copy of which was attached as Annex C to our Definitive Proxy Statement on Schedule 14A for our 2009 Annual Meeting,annual meeting, filed with the SEC on October 28, 2009, and is also available on our website atwww.cgagri.com.

 

20

Nominating Committee

 

The Nominating Committee identifies and nominates candidates to serve on our Board of Directors.Board. The members of the Nominating Committee are Messrs. Yizhao Zhang,Jianlei Shen, Lianfu Liu and Ms. Yiru Shi. The Chairman of the Nominating Committee is Mr. Liu. The Nominating Committee held one meeting during the fiscal year ended June 30, 2012.2015. A copy of our Nominating Committee Charter was attached as Annex B to our Definitive Proxy Statement on Schedule 14A for our 2010 Annual Meeting,annual meeting, filed with the SEC on October 28, 2010, and is also available on our website atwww.cgagri.com. See “Director Nominations” below for the procedures for the nomination of directors.

 

20

Board Leadership Structure and Board’s Role in the Oversight of Risk Management

 

Our Board of Directors believes it is important to select our Chairman and our Chief Executive Officer in the manner it considers in the best interests of our company at any given point in time. Due to Mr. Li’s substantial experience in the industry, our Board of Directors has determined that the most effective leadership structure for our company at this time is for Mr. Li to serve as both our Chairman and Chief Executive Officer. Our Board benefits from the Chairman having direct knowledge of the operations of, and opportunities and challenges facing, our business on a regular and company-wide basis. Mr. Li’s combined role as Chairman and Chief Executive Officer fosters greater communication between the Board and management and provides unified leadership for carrying out our company’s strategic initiatives and business plans.

 

ToTo counterbalance the potential for ineffective Board oversight, we have adopted a governance structure that includes: (i) a designated lead independent director; (ii) annual elections of directors by a majority of votes cast at the annual meeting of shareholders; (iii) committees composed entirely of independent directors; and (iv) established corporate governance and ethics guidelines. Our Board appointed Mr. Yizhao ZhangMs. Yiru Shi to serve as the Board’s lead independent director. The lead independent director acts as an intermediary between the Board and senior management. Among other things, the lead independent director is responsible for facilitating communication among directors and between the Board and the Chief Executive Officer, working with the Chief Executive Officer to provide an appropriate information flow to the Board, and chairing executive sessions of the independent directors. Executive sessions of our independent directors occur following regularly scheduled quarterly audit committee meetings, and at such other times as the independent directors deem appropriate.However, the Board of Directors recognizes that circumstances may change over time and as they do, changes to the leadership structure may be warranted.

 

The Board has an active role, directly and through its committees, in the oversight of our risk management efforts. The Board carries out this oversight role through several levels of review. The Board regularly reviews and discusses with members of management information regarding the management of risks inherent in the operations of our businesses and the implementation of our strategic plan, including our risk mitigation efforts.

 

In accordance with corporate governance standards of the NYSE, the Audit Committee charter assigns to that committee the responsibility to review our policies and practices with respect to risk assessment and risk management, including major financial risk exposures, and the steps management has taken to monitor and control such exposures. Additionally, each of the Board’s committees also oversees the management of our risks that are under each committee’s areas of responsibility. For example, the Audit Committee oversees management of accounting, auditing, external reporting, internal controls, and cash investment risks. The Nominating Committee oversees our compliance policies, Code of Conduct, conflicts of interests, director independence and corporate governance policies. The Compensation Committee oversees risks arising from compensation practices and policies. In this manner the Board is able to coordinate its risk oversight.

 

Director Nominations

 

The Nominating Committee recommends director candidates and will consider for such recommendation director candidates proposed by management, other directors and stockholders. All director candidates will be evaluated based on the criteria identified below, regardless of the identity of the individual or the entity or person who proposed the director candidate.

 

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The selection of director nominees includes consideration of factors deemed appropriate by the Corporate Governance and Nominating Committee and the Board of Directors.Board. We may engage a firm to assist in identifying, evaluating, and conducting due diligence on potential board nominees. Factors will include integrity, achievements, judgment, intelligence, personal character, any prior contact or relationship between a candidate and a current or former director or officer of our company, the interplay of the candidate’s relevant experience with the experience of other Board members, the willingness of the candidate to devote adequate time to Board duties and the likelihood that he or she will be willing and able to serve on the Board of Directors for a sustained period. The Corporate Governance and Nominating Committee will consider the candidate’s independence, as defined by the rules of the SEC and the NYSE. In connection with the selection, due consideration will be given to the Board’s overall balance of diversity of perspectives, backgrounds, and experiences. Experience, knowledge, and skills to be represented on the Board of Directors include, among other considerations, financial expertise (including an “audit committee financial expert” within the meaning of the SEC’s rules), financing experience, related industry experience, strategic planning, business development, and community leadership.

 

Code of Ethics

 

We have adopted a Code of Ethics that applies to all of our employees and officers, and the members of our Board of Directors, which was amended and restated in 2010. The Amended and Restated Code of Ethics (the “Code of Ethics”) is available on our website atwww.cgagri.com. Printed copies are available upon request without charge. Any amendment to or waiver of the Code of Ethics will be disclosed on our website promptly following the date of such amendment or waiver.

 

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Corporate Governance Guidelines

 

We have adopted Corporate Governance Guidelines applicablea Code of Ethics that applies to the managementall of our company, a copyemployees and officers, and the members of the Board, which was amended and restated in 2010. The Amended and Restated Code of Ethics (the “Code of Ethics”) is available on our website atwww.cgagri.com. Printed copies are available upon request without charge. Any amendment to or waiver of the Code of Ethics will be disclosed on our website promptly following the date of such amendment or waiver.

 

Certain Relationships and Related Transactions

As of June 30, 2015 and 2014, the amount due to related parties was $2,068,102 and $1,758,336, respectively. At June 30, 2015 and 2014, $1,184,643 and $1,136,800, respectively were amounts that Gufeng borrowed from a related party, Xi’an Techteam Science & Technology Industry (Group) Co. Ltd., a company controlled by Mr. Tao Li, Chairman and CEO of the Company, representing unsecured, non-interest bearing loans that are due on demand. These loans are not subject to written agreements.

 

On August 10, 2010, weNovember 1, 2013, Yuxing entered into an agreement with Xi’an Kingtone Information Technology Co., Ltd.Xi'an Techteam Investment Holding Group (“Kingtone Information”), the contractually-controlled operating subsidiary of Kingtone Wirelessinfo Solution Holding Ltd (“Kingtone Wireless”Techteam Investment”), a Nasdaq listed company.holding company owned and controlled by Mr. Tao Li, our Chairman and Chief Executive Officer,CEO of the Company, to delegate Techteam Investment to procure certain inventories from the market from November 1, 2013 to June 30, 2014 (the “Agreement Period”). During the Agreement Period, Techteam Investment advances procurement payment to vendors, and Yuxing repays the outstanding procurement amount to Techteam Investment periodically. Techteam Investment receives no commission or compensation in this process. The total amount under this Agreement is the Chairman ofat $133,168.

On June 29, 2014, Jinong signed an office lease with Kingtone Wireless.Information. Pursuant to the agreement,lease, Jinong rented 612 square meters (approximately 6,588 square feet) of office space from Kingtone Information is responsibleInformation. The lease provided for developing certain electronic control systems for Xi’an Hu County Yuxing Agriculture Technology Development Co., Ltd. (“Yuxing”), a wholly-owned subsidiarytwo-year term effective as of Jinong in the PRC. The total contracted valueJuly 1, 2014 with monthly rent of this agreement, including value-added taxes and other taxes, is RMB 3.03 million, or approximately $452,000. Work on this project started in August 2010 and is still ongoing. Pursuant to the agreement, Kingtone Information will design, plan, construct and purchase materials for the electronic control systems to be used in 28 greenhouses of Yuxing. The agreement sets forth a warranty period, which is the earlier of (a) 18 months after the construction raw materials are delivered, inspected and accepted, and (b) 12 months after the inspection and acceptance of the work completed. During the warranty period Yuxing is entitled to receive maintenance and repair services at no cost.24,480 (approximately $4,007).

 

Our executive offices located at 3/F, Area A, Block A, No. 18 South Taibai Road, Xi’an 710065, the People’s Republic of China are leased from Kingtone Information. On September 30, 2010, Jinong signed a two year lease effective as of July 1, 2010 with Xi’an Kingtone Information Technology Co., Ltd. (“Kingtone Information”), who owns the property. Kingtone Information is a Variable Interest Entity (“VIE”) controlled by Kingtone Wirelessinfo Solution Holoding Ltd. (“Kingtone Wirelessinfo”), whose Chairman and majority shareholder is Mr. Tao Li, the Chairman, President and Chief Executive Officer of the Company. According to the lease agreement, the monthly rent is $1,596 (RMB 10,800) for approximately 3,875 square feet (360 square meters). On June 29, 2012, the two parties signed a new lease for a new lease term of two years from July 1, 2012 to June 30, 2014 for aat monthly rent of approximately $3,885 (RMB24,480)RMB 24,480 (approximately $4,000) for approximately 6,587612 square feet (612meters (approximately 6,588 square meters).feet) of office space.

 

On March 8, 2012,October 1, 2014, the Company, entered intoaudit committee and the Board approved a private placement investment in the Common Stock Purchase Agreement (“Purchase Agreement”), withfrom Mr. Tao Li, Chairman and Chief Executive Officer of the Company, pursuant to which the Company issued 63,158will issue 496,445 shares of its Common Stock, par value $0.001 (the “Shares”) to Mr. Li.Li, pending the approval from its stockholders. The purchase price for each Shareshare is $4.75$2.25, the closing price of the Common Stock that day, and the aggregate purchase price for the Sharesshares is $300,000.50. The Company sold the Shares in reliance upon the exemption from securities registration afforded by Section 4(2) of the Securities Act of 1933, as amended (the “Securities Act”) and Rule 506 of Regulation D as promulgated by the Securities and Exchange Commission (the “Commission”) under the Securities Act. The foregoing description of the Purchase Agreement does not purport to be complete and is qualified in its entirety by reference to the Purchase Agreement which is attached as Exhibit 10.1 to the Company’s Current Report on Form 8-K filed with the Commission on March 8, 2012.$1,117,000.

 

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On September 26, 2012, Mr. Tao Li subscribed 151,515 shares of the Company’s Common Stock under the first offering under the ESPP at a purchase price equal to the market price of the Company’s stock at $3.30 per share on September 26, 2012.

 

Procedures for Approval of Related Party Transactions

 

In November 2010, we adopted a written Related Party Transactions Policy (the “Policy”). According to the Policy, a “Related Party Transaction” is a transaction, arrangement or relationship (or any series of similar transactions, arrangements or relationships) in which we (including any of our subsidiaries) are, were or will be a participant and the amount involved exceeds $120,000, and in which any related party had, has or will have a direct or indirect “material” interest. The Policy’s definition of a “Related Party” is in line with the definition set forth in the instructions to Item 404(a) of Regulation S-K promulgated by the SEC.

 

Under the Policy, our Chief Financial Officer is responsible for determining whether a proposed transaction, as submitted by a Related Party is a Related Party Transaction that requires the consideration and discussion of the Audit Committee. The Audit Committee is responsible for evaluating and assessing a proposed transaction based on the facts and circumstances including those listed in the Policy, including comparing the terms of the proposed transaction and the terms available to unrelated third parties or to employees generally. The Policy states that the Audit Committee shall approve only those Related Party Transactions that are in, or are not inconsistent with, the best interests of our company and our stockholders. No member of the Audit Committee shall participate in any review, consideration or approval of any Related Party Transaction in which he or she or any immediate family member directly or indirectly is involved.

 

In the event that we become aware of a Related Party Transaction that has not been previously approved under the Policy, such transaction will be presented to the Audit Committee. A Related Party Transaction entered into without pre-approval of the Audit Committee shall not be deemed to violate the Policy, or be invalid or unenforceable, so long as the transaction is brought to the Audit Committee as promptly as reasonably practical after it is entered into and is subsequently ratified by the Audit Committee.

 

Family Relationships

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There is no family relationship among any of our officers or directors.

Involvement in Certain Legal Proceedings

To the best of our knowledge, none of our directors or executive officers was involved in any legal proceedings during the last 10 years as described in Item 401(f) of Regulation S-K.

Section 16(a) Beneficial Ownership Reporting Compliance

 

Section 16(a) of the Exchange Act requires our executive officers and directors, and persons who own more than 10% of a registered class of our equity securities (“Reporting Persons”), to file reports of ownership and changes in ownership with the SEC. The Reporting Persons are also required to furnish us with copies of all such reports. Based solely on our review of the reports received by us, and written representations from certain Reporting Persons that no other reports were required for those persons, we believe that, during the year ended June 30, 2012, the Reporting Persons met all applicable2015, our directors, executive officers and holders of ten percent (10%) or more of our common stock complied with Section 16(a) filing requirements other thanapplicable to them except as follows: the Form 3 of Yiru Shi reporting her status as a new director4s filed on December 9, 201123, 2014 by five of our directors, executive officers and holders of ten percent or more of our common stock, which reported certain shares granted under the Company’s 2009 Equity Incentive Plan and were due on October 2, 2014, were not timely filed; the Form 4 filed on August 17, 2015 by Ms. Yiri Shi which reported certain shares sold and were due on August 10, 2015, was not filed until June 16, 2012.timely filed.

 

Communications with the Board

 

Interested parties may communicate with any of our directors, our Board as a group, our independent directors as a group or any committees of the Board by sending an e-mail toJane Zuo, Ran Liu, Secretary to the Board of Directors, atliuranjane.zuo@cgagri.com@cgagri.com and indicating the intended recipient in the subject line, or by writing to Ms. ZuoLiu at China Green Agriculture, Inc., 3rd Floor, Borough A, Block A. No. 181, South Taibai Road, Xian, Shaanxi Province, People’s Republic of China 710065. The Board has given Ms. Zuo,Liu, as Secretary to the Board of Directors, the discretion to distribute communications to the director or directors, after ascertaining whether the communications are appropriate to duties and responsibilities of the Board. Communications that relate to ordinary business matters that are not within the scope of the Board’s responsibilities will be forwarded to the appropriate employee within our company. Solicitations, junk email and obviously frivolous or inappropriate communications will not be forwarded. You will receive a written acknowledgement from the Secretary to the Board upon receipt of your communication.

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Audit Fees

 

Audit FeesThe following are the fees billed to us by our auditors during fiscal years ended June 30, 2015 and 2014:

 

  Years Ended 
  June 30, 2015  June 30, 2014 
Audit Fees $230,000  $375,000 
Audit related fees  10,000   5,000 
Tax fees  -   - 
All Other Fees  -   - 
Total $240,000  $380,000 

Audit Fees

The aggregate fees billed by Kabani & Company,&Company, Inc. for professional services rendered for the audit of our annual financial statements included in our Annual Reports on Form 10-K, for the reviews of the financial statements included in our Quarterly Reports on Form 10-Q, for our Sarbanes-Oxley Act of 2002 compliance audit, and for services in connection with statutory and regulatory filings or engagements were $440,000$230,000 and $455,000$375,000 for the fiscal years ended June 30, 20122015 and 2011,2014, respectively.

 

Audit-Related Fees

The aggregate fees billed by our principal accountants for audit-related services was $15,000$10,000 and $10,000$5,000 for the fiscal years ended June 30, 20122015, and 2011,2014, respectively.

 

Tax Fees

We did not engage our principal accountants to provide tax or related services during the last two fiscal years.

 

All Other Fees

We did not engage our principal accountants to render services to us during the last two fiscal years, other than as reported above.

 

REPORT OF THE AUDIT COMMITTEE

 

The Audit Committee of the Board is comprised of three non-employee directors, each of whom has been determined by the Board to be “independent” under the meaning of Rule 10A-3(b)(1) under the Exchange Act. Each of Mr. Yizhao Zhang and Ms. Yiru Shi qualifies as a financial expert within the meaning of Item 401(h) of SEC Regulation S-K. The Audit Committee assists the Board’s oversight of the integrity of our financial reports, compliance with legal and regulatory requirements, the qualifications and independence of our independent registered public accounting firm, the audit process, and internal controls. The Audit Committee operates pursuant to a written charter adopted by the Board. The Audit Committee is responsible for overseeing our corporate accounting and financial reporting practices, recommending the selection of our registered public accounting firm, reviewing the extent of non-audit services to be performed by the auditors, and reviewing the disclosures made in our periodic financial reports. The Audit Committee also reviews and recommends to the Board that the audited financial statements be included in our Annual Report on Form 10-K.

 

The Audit Committee: (1) reviewed and discussed the audited financial statements for the year ended June 30, 20122015, with management; (2) discussed with the independent auditors the matters required to be discussed by SAS 61 (Codification of Statements on Auditing Standards), as may be modified or supplemented;amended (AICPA,Professional Standards, Vol. 1. AU section 380), as adopted by the Public Company Accounting Oversight Board in Rule 3200T; and (3) received the written disclosures and the letter from the independent accountants required by applicable requirements of the Public Company Accounting Oversight Board regarding the independent accountant’s communications with the Audit Committee concerning independence, and has discussed with the independent accountant its independence.

 

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Based on the review and discussions referred to above, the Audit Committee had recommended to the Board of Directors that the audited financial statements be included in our Annual Report on Form 10-K for the fiscal year ended June 30, 20122015, for filing with the SEC.

 

The foregoing report has been furnished in October 2012May 18, 2016, by the members of the Audit Committee, being:

 

Yizhao Zhang, Chairman

/s/ Yiru Shi, Chairman of the Audit Committee

/s/ Jianlei Shen, member of the Audit Committee

/s/ Lianfu Liu, member of the Audit Committee

 

The foregoing Audit Committee Report does not constitute soliciting material or to be “filed” with the Commission or subject to Regulation 14A or 14C (17 CFR 240.14a-1 through 240.14b-2 or 240.14c-1 through 240.14c-101), other than as provided in Item 407 of Regulation S-K, or to the liabilities of section 18 of the Exchange Act (15 U.S.C. 78r) and shall not be deemed filed or incorporated by reference into any other of our filings under the Securities Act or the Exchange Act, except to the extent that we specifically incorporate this Audit Committee Report by reference therein.

 

STOCKHOLDER PROPOSALS

 

Proposals of stockholders intended for presentation at next year’s annual meeting of stockholders and intended to be included in our proxy statement and form of proxy relating to that meeting must be received at our executive office by June 30, 2013January 16, 2017, and comply with the requirements of Rule 14a-8(e) promulgated under the Exchange Act. If a stockholder intends to submit a proposal at next year’s annual meeting of stockholders, which proposal is not intended to be included in the our proxy statement and form of proxy relating to that meeting, the stockholder must provide appropriate notice to us not later than September 13, 2013March 31, 2017, in order to be considered timely submitted within the meaning of Rule 14a-4(c) of the Exchange Act. As to all such matters which we do not have notice on or prior to September 13, 2013,March 31, 2017, discretionary authority shall be granted to the persons designated in our proxy related to the 2013 annual meeting of stockholders for the fiscal year ended June 30, 2016 to vote on such proposal.

 

ANNUAL REPORT ON FORM 10-K

 

We will furnish without charge to each person whose proxy is being solicited, upon the request of such person, a copy of our Annual Report on Form 10-K for the fiscal year ended June 30, 2012,2015, including the financial statements and schedules thereto. Requests for copies of such report should be directed to Mr. Ken Ren, Chief Financial Officer, China Green Agriculture, Inc., 3rd Floor, Borough A, Block A. No. 181, South Taibai Road, Xian, Shaanxi Province, People’s Republic of China, 710065, +86-29-88266368.

 

OTHER MATTERS

 

As of the date of this Proxy Statement,proxy statement, the Board of Directors has no knowledge of any business which will be presented for consideration at the Meeting other than the election of directors. Should any other matters be properly presented, it is intended that the enclosed proxy will be voted in accordance with the best judgment of the persons voting the proxies.

 

It is important that the proxies be returned promptly and that your shares be represented at the Meeting. Stockholders are urged to mark, date, execute and promptly return the accompanying proxy card in the enclosed envelope.

October 29, 2012May 18, 2016By Order of the Board of Directors
  
/s/ Tao Li
Tao Li Chairman of the Board

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Exhibit A

CHINA GREEN AGRICULTURE, INC.

THIS PROXY IS SOLICITED ON BEHALF OF THE BOARD OF DIRECTORS

annual meeting OFSTOCKHOLDERS – Tuesday, June 28, 2016 at 10:00 PM ET

CONTROL ID:
REQUEST ID:

The undersigned, a stockholder of China Green Agriculture, Inc.  (the “Company”), hereby revoking any proxy heretofore given, does hereby appoint Mr. Tao Li proxy, with power of substitution, for and in the name of the undersigned to attend the Annual Meeting of Stockholders (the “Annual Meeting”) of China Green Agriculture, Inc., a Nevada corporation (the “Company”), will be held on Tuesday, June 28, 2016, at 10:00 p.m., E.T. (June 29, 2016 at 10:00 a.m. Local Time), at the headquarters of the Company’s wholly-owned subsidiary Shaanxi Techteam Jinong Humic Acid Product Co., Ltd. at 3F, Borough A, Block A, No. 181 South Taibai Road, Xi’an Shaanxi, People’s Republic of China, 710065, or at any adjournment or postponement thereof, and there to vote, as designated below.
(CONTINUED AND TO BE SIGNED ON REVERSE SIDE.)
VOTING INSTRUCTIONS
If you vote by phone, fax or internet, please DO NOT mail your proxy card.

 MAIL:Please mark, sign, date, and return this Proxy Card promptly using the enclosed envelope.
 FAX:Complete the reverse portion of this Proxy Card and Fax to202-521-3464.
 INTERNET:https://www.iproxydirect.com/CGA
 PHONE:1-866-752-VOTE(8683)

 

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ANNUAL MEETING OF THE STOCKHOLDERS OF
CHINA GREEN AGRICULTURE, INC.

PLEASE COMPLETE, DATE, SIGN AND RETURN PROMPTLY IN THE ENCLOSED ENVELOPE.
PLEASE MARK YOUR VOTE IN BLUE OR BLACK INK AS SHOWN HERE:x
PROXY SOLICITED ON BEHALF OF THE BOARD OF DIRECTORS 
  
Proposal 1àFOR
ALL

 /s/ WITHHOLD

ALL

FOR ALL

EXCEPT

Election of Directors:¨¨
Tao Li

¨
Ale Fan¨ControlID:
Yiru Shi¨REQUEST ID:
Lianfu Liu¨
Jianlei Shen¨
  
MARK “X” HERE IF YOU PLAN TO ATTEND THE MEETING:¨

Tao LiTHE BOARD OF DIRECTORS UNANIMOUSLY RECOMMENDS THAT YOU VOTE “FOR” ALL DIRECTORS ON PROPOSAL ONE.

Chairman of

MARK HERE FOR ADDRESS CHANGE¨ New Address (if applicable):

____________________________
____________________________
____________________________

IMPORTANT:Please sign exactly as your name or names appear on this Proxy. When shares are held jointly, each holder should sign. When signing as executor, administrator, attorney, trustee or guardian, please give full title as such. If the Boardsigner is a corporation, please sign full corporate name by duly authorized officer, giving full title as such. If signer is a partnership, please sign in partnership name by authorized person.

Dated: ________________________, 2016

(Print Name of Stockholder and/or Joint Tenant)
(Signature of Stockholder)
(Second Signature if held jointly)

 

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27 

  

Appendix AExhibit B

 

Amendment to

2009 EQUITY INCENTIVE PLAN

OF CHINA GREEN AGRICULTURE, INC.

China Green Agriculture, Inc. (the “Company”) previously approved and adopted the 2009 Equity Incentive Plan (the “Plan”) to promote the success and enhance the value of the Company by linking the personal interests of the Plan’s participants to those of the Company’s stockholders and by providing such individuals with an incentive for outstanding performance in order to help grow the Company and to generate superior returns to its shareholders. By this Amendment, the Company desires to amend the Plan to increase the number of shares available under the Plan.

  

CHINA GREEN AGRICULTURE, INC.1.CONTROL ID:Capitalized terms used but not otherwise defined herein shall have the respective meanings assigned to such terms in the Plan.

REQUEST ID:2.The effective date of this Amendment to the Plan shall be December 15, 2012, upon the stockholders’ approval.

3.Section 1.5 of the Plan is amended and restated in its entirety as follows:

  

Maximum numberIMPORTANT NOTICEREGARDING THE AVAILABILITY OF PROXY MATERIALS
for the Annual Meeting of Shares Available for Awards.  Subject to adjustment in accordance with  Section 5.2 hereof, the maximum number of Shares for which grants under the Plan shall be available is 5,260,000.  In addition, the Committee shall have the authority, in its sole discretion, to grant additional Non-qualified Stock Options to a Participant who exercises an Option and pays the exercise price in Common Stock, in a quantity equal to the number of shares of Common Stock delivered to the Corporation upon such exercise.  In the event any Awards granted under the Plan shall be forfeited, terminate or expire, the number of Shares subject to such Award, to the extent of any such forfeiture, termination or expiration, shall thereafter again be available for grant under the Plan.  The Common Stock distributed under the Plan may be authorized and unissued shares, shares held in the treasury of the Corporation, or shares purchased on the open market by the Corporation (at such time or times and in such manner as it may determine).  The Corporation shall be under no obligation to acquire Common Stock for distribution to Participants before such Common Stock is due and distributable.Stockholders

 

4. This Amendment shall amend only the provisions of the Plan as set forth herein. Those provisions of the Plan not expressly amended hereby shall be considered in full force and effect.
DATE:June 28, 2016
TIME:10:00 p.m. eastern time
LOCATION:

Shaanxi Techteam Jinong Humic Acid Product Co., Ltd.

Xi’an Office, 3F, Borough A, Block A

No. 181, South Taibai Road, Xi’an, Shaanxi Province, People’s Republic of China 710065

 

IN WITNESS WHEREOF, the Company has caused this Amendment to be executed by its duly authorized representative on this October 29, 2012.

HOW TO REQUEST PAPER COPIES OF OUR MATERIALS

PHONE:

Call toll free
1-866-752-8683

FAX:

Send this card to
202-521-3464

INTERNET:
https://www.iproxydirect.com/CGA
and follow the on-screen instructions.

EMAIL:

proxy@iproxydirect.com
Include your Control ID in your email.

This communication represents a notice to access a more complete set of proxy materials available to you on the Internet. We encourage you to access and review all of the important information contained in the proxy materials before voting. The proxy statement is available at:https://www.iproxydirect.com/CGA
If you want to receive a paper copy of the proxy materials you must request one. There is no charge to you for requesting a copy.  To facilitate timely delivery please make the request, as instructed above, before June 5, 2016.
you may enter your voting instructions athttps://www.iproxydirect.com/CGA
until 11:59 am eastern time June 27, 2016.

 

 The purposes of this meeting are as follows:

1.   To elect five persons to the Board of Directors of the Company, each to serve until the next annual meeting of stockholders of the Company or until such person shall resign, be removed or otherwise leave office;

2.   To transact such other business as may properly come before the Annual Meeting or any adjournment thereof.

 Pursuant to Securities and Exchange Commission rules, you are receiving this Notice that the proxy materials for the Annual Meeting are available on the Internet. Follow the instructions above to view the materials and vote or request printed copies.

The board of directors has fixed the close of business on May 2 2016 as the record date for the determination of stockholders entitled to receive notice of the Annual Meeting and to vote the shares of our common stock, par value $.001 per share, they held on that date at the meeting or any postponement or adjournment of the meeting.

The Board of Directors recommends that you vote ‘for’ all proposals above.

Please note - This is not a Proxy Card - you cannot vote by returning this card

28

China Green Agriculture, Inc.

SHAREHOLDER SERVICES

500 Perimeter Park Drive Suite D

Morrisville NC 27560

FIRST-CLASS MAIL

US POSTAGE

PAID

CARY NC

PERMIT # 869

 By: /s/ Tao Li

Time Sensitive shareholder information enclosed

IMPORTANT SHAREHOLDER INFORMATION

your vote is important

 

Name: Tao Li

Title: Chief Executive Officer 

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B-2