Document:

Exhibit 4.20

Exhibit 4.20

PGG Wrightson
Subscription
Agreement

PGG Wrightson Limited (PGW)

Agria Corporation (Agria)

 

 

 

CONTENTS

	 	 	 	 	 
	INTRODUCTION
	 	 	1	 
	 
	 	 	 	 
	IT IS AGREED
	 	 	1	 
	 
	 	 	 	 
	1 INTERPRETATION
	 	 	1	 
	1.1 Definitions
	 	 	1	 
	1.2 Interpretation
	 	 	3	 
	 
	 	 	 	 
	2 CONDITIONS
	 	 	4	 
	2.1 Conditions
	 	 	4	 
	2.2 Waiver of Conditions
	 	 	5	 
	2.3 Time for Fulfilment of Conditions
	 	 	5	 
	2.4 OIO Condition
	 	 	5	 
	2.5 Waiver
Condition
	 	 	5	 
	2.6 Information
	 	 	5	 
	2.7 Failure to Fulfil Conditions
	 	 	6	 
	2.8 Effect of Termination
	 	 	6	 
	 
	 	 	 	 
	3 PLACEMENT
	 	 	6	 
	3.1 Subscription for Placement Shares
	 	 	6	 
	3.2 Issue of Placement Shares
	 	 	6	 
	3.3 Announcement
	 	 	7	 
	3.4 Terms of Issue
	 	 	7	 
	3.5 Agria’s consent
	 	 	7	 
	 
	 	 	 	 
	4 OFFER DOCUMENT
	 	 	7	 
	4.1 Final Form
	 	 	7	 
	4.2 Material Adverse Provisions
	 	 	7	 
	 
	 	 	 	 
	5 ENTITLEMENT OFFER
	 	 	8	 
	5.1 Entitlement Offer
	 	 	8	 
	5.2 Acceptance of Entitlement Offer
	 	 	8	 
	 
	 	 	 	 
	6 ISSUE AND SUBSCRIPTION FOR SUPPLEMENTAL SHARES
	 	 	8	 
	6.1 Supplemental Shares
	 	 	8	 
	6.2 Limitation in relation to Supplemental Shares
	 	 	8	 
	6.3 Subscription for Supplemental Shares
	 	 	8	 
	6.4 Issue of Supplemental Shares
	 	 	9	 
	6.5 Terms of Supplemental Shares
	 	 	9	 
	 
	 	 	 	 
	7 PAYMENTS
	 	 	9	 
	7.1 Immediately Available Funds
	 	 	9	 
	7.2 Core Acquisition Price
	 	 	9	 
	 
	 	 	 	 
	8 COMPLIANCE WITH APPLICABLE LAWS
	 	 	9	 
	 
	 	 	 	 
	9 FUTURE ISSUES
	 	 	10	 
	 
	 	 	 	 
	10 BOARD REPRESENTATION
	 	 	10	 

 

 

 

	 	 	 	 	 
	11 LOCK UP
	 	 	11	 
	11.1 Restrictions
	 	 	11	 
	11.2 Exceptions
	 	 	11	 
	 
	 	 	 	 
	12 REPRESENTATIONS AND WARRANTIES
	 	 	12	 
	12.1 PGW’s warranties
	 	 	12	 
	12.2 Agria’s warranties
	 	 	13	 
	 
	 	 	 	 
	13 EXCLUSIONS AND LIMITATIONS
	 	 	13	 
	13.1 Warranties qualified
	 	 	13	 
	13.2 No Warranty
	 	 	13	 
	13.3 No Claim
	 	 	13	 
	13.4 Quantum
	 	 	14	 
	13.5 Time Limit
	 	 	14	 
	13.6 Each Party Relies on Own Judgment
	 	 	14	 
	13.7 Exclusion of representations
	 	 	14	 
	 
	 	 	 	 
	14 ADDITIONAL COVENANTS
	 	 	14	 
	14.1 No Share issues
	 	 	14	 
	14.2 Use of funds
	 	 	14	 
	14.3 CAAS
	 	 	14	 
	 
	 	 	 	 
	15 TERMINATION
	 	 	15	 
	15.1 Termination Event
	 	 	15	 
	15.2 No other right to cancel
	 	 	15	 
	 
	 	 	 	 
	16 MISCELLANEOUS
	 	 	15	 
	16.1 Payments Free and Clear
	 	 	15	 
	16.2 Default Interest
	 	 	15	 
	16.3 Takeovers Code
	 	 	16	 
	16.4 Announcements
	 	 	16	 
	16.5 No Merger
	 	 	16	 
	16.6 Further Assurances
	 	 	16	 
	16.7 No Assignment
	 	 	16	 
	16.8 Specific Performance
	 	 	17	 
	16.9 Amendment
	 	 	17	 
	16.10 No Partnership
	 	 	17	 
	16.11 No Waiver
	 	 	17	 
	16.12 Severability
	 	 	17	 
	16.13 Counterparts
	 	 	17	 
	16.14 Costs
	 	 	17	 
	16.15 Notices
	 	 	18	 
	16.16 Governing Law/Jurisdiction
	 	 	19	 
	 
	 	 	 	 
	EXECUTION
	 	 	20	 
	 
	 	 	 	 
	APPENDIX 1 — CO-OPERATION AGREEMENT
	 	 	21	 
	PGG WRIGHTSON SUBSCRIPTION AGREEMENT
	 	 	 	 

 

 

 

pgg wrightson subscription agreement

Date: 16th October 2009

PGG Wrightson Limited a New Zealand incorporated company (PGW)

Agria Corporation a corporation incorporated under the laws of the Cayman Islands, with principal
executive offices at Room 706, 7/F, Huantai Building, No. 12A, South Street Zhongguancun, Haidian
District, Beijing 100081, People’s Republic of China (Agria)

INTRODUCTION

	1	 	PGW is intending to undertake an equity raising through a combination of a placement of new
 shares to Agria and an entitlement offer to its shareholders.

	2	 	Agria accordingly has agreed to:

	 	2.1	 	subscribe for the Placement Shares;
	 
	 	2.2	 	accept any Entitlement Offer and subscribe for the Entitlement Shares;
	 
	 	2.3	 	as a linked part of the transactions described in this agreement:

	 	(i)	 	subscribe for a $35 million convertible redeemable note in PGW;
and
	 
	 	(ii)	 	enter into a co-operation agreement with PGW,

on the terms and conditions set out in this agreement.

	3	 	Agria will seek the opportunity to participate in the sub-underwriting of any Entitlement
Offer and/or subscribe for additional ordinary PGW shares, after the equity raising, in each
case subject to applicable Takeovers Code restrictions.

IT IS AGREED

	1	 	INTERPRETATION
	 
	1.1	 	Definitions

In this agreement, unless the context otherwise requires:

Agria Holders means Agria, any subsidiary of Agria nominated by Agria under clause 16.7 and
any subsidiary of Agria holding Ordinary Shares as a consequence of a transaction permitted
by clause 11.2.

Agria Warranties means the warranties given by Agria under clause 12.2.

associate has the same meaning as in the Takeovers Code.

Board means the board of directors of PGW.

 

1

 

pgg wrightson subscription agreement

Business Day means a day (other than Saturday, Sunday or public holiday) on which registered
banks are open for business in Auckland.

Conditions means the conditions set out in clause 2.1.

Co-operation Agreement means a co-operation agreement between PGW and Agria in the form
attached as Appendix 1.

Draft Offer Document means the draft prospectus for the Entitlement Offer that was provided
by PGW’s legal advisers to Agria’s legal advisers at approximately 6.00pm on 15 October
2009.

Entitlement Offer means the pro rata entitlement offer proposed to be undertaken by PGW in
accordance with and by way of the Offer Document referred to in clause 4.1.

Entitlement Price means the price per Ordinary Share payable in the Entitlement Offer.

Entitlement Shares means Agria’s full entitlement under the Entitlement Offer.

Highest Non-Agria Holder means the person, not being an Agria Holder, who has a relevant
interest in a greater number of Ordinary Shares than any other person (other than the Agria
Holders).

Loss means all losses, liabilities, costs, damages and expenses (including legal costs and
expenses) of any nature or description.

NZSX means NZX Limited.

Ordinary Shares means ordinary shares in the capital of PGW.

Offer Document means the prospectus for the Entitlement Offer being a simplified disclosure
prospectus under the Securities Act 1978.

PGC means Pyne Gould Corporation Limited.

PGW Finance means PGG Wrightson Finance Limited.

PGW Convertible Redeemable Note Agreement means the agreement between Agria or a wholly
owned subsidiary of Agria and PGW to be entered into on or before the Placement Date, on the
basis of (as a basis for negotiation) the terms set out in a terms sheet to be agreed
between the parties.

PGW Group means PGW and its subsidiaries.

PGW Warranties means the warranties given by PGW under clause 12.1.

Placement means the issue of the Placement Shares to Agria.

 

2

 

pgg wrightson subscription agreement

Placement Date means the first Business Day after all Conditions (other than clause 2.1(c))
are satisfied.

Placement Price means the price set out in clause 3.1(b).

Placement Shares means 41,100,000 Ordinary Shares.

Relevant interest has the same meaning as in the Securities Markets Act 1988.

Share means a share in the capital of PGW of whatever class, any security convertible or
exchangeable into such a share and any other right, interest or entitlement to subscribe for
or obtain any such a share or security.

Strategic Investor means any person whose business includes, in any material respect, the
provision of agricultural services and solutions (“Agri-Solutions Provider”) or any person
who, to the knowledge of PGW, would be investing in PGW with a view to becoming an
Agri-Solutions Provider itself, or an associate of any such person;

Supplemental Placement Date means (if applicable) the date three Business Days after all
Ordinary Shares have been issued under the Entitlement Offer (including all shares issued to
the Underwriters and sub-underwriters).

Supplemental Shares means (if applicable) the Ordinary Shares to be issued to Agria in
accordance with clause 6.1.

Takeovers Code means the Takeovers Code set out in the Takeovers Code Approval Order 2000,
as amended from time to time.

Underwrite Agreement means an underwrite agreement to be entered into between PGW and the
Underwriters for the underwriting in full of the Entitlement Offer.

Underwriters means First NZ Capital Securities Limited and UBS New Zealand Limited.

voting rights has the same meaning as in the Takeovers Code.

	1.2	 	Interpretation

In this agreement, unless the context otherwise requires:

	 	(a)	 	headings are inserted for convenience only and shall be ignored in construing
this agreement;
	 
	 	(b)	 	the singular includes the plural and vice versa;
	 
	 	(c)	 	reference to a clause, sub-clause, schedule, appendix or a party is a reference
to that clause, sub-clause, schedule, appendix or party in or to this agreement unless
stated otherwise;

 

3

 

pgg wrightson subscription agreement

	 	(d)	 	reference to any legislation or to any provision of any legislation (including
regulations and orders) includes that legislation or provision as from time to time
amended, re-enacted or substituted and any statutory instruments, regulations or orders
issued under such legislation or provision;
	 
	 	(e)	 	all amounts payable pursuant to this agreement shall be paid in New Zealand
Dollars, unless expressly agreed otherwise, and all references to “Dollars” and “$”
shall refer to New Zealand Dollars;
	 
	 	(f)	 	references to dates and times are to New Zealand dates and times; and
	 
	 	(g)	 	reference to a person or entity includes an individual, partnership,
corporation, company, association, joint stock company, trust, joint venture,
unincorporated organisation and governmental entity or any department, agency or
political subdivision thereof, and any other entity, whether or not incorporated and
whether or not having a separate legal personality.

	2	 	CONDITIONS

	2.1	 	Conditions

The completion of the transactions set out in this agreement is conditional on:

	 	(a)	 	Receipt by Agria, on terms which are acceptable to Agria acting reasonably, of
all consents required under the Overseas Investment Act 2005 for the implementation of
this agreement, prior to the Placement Date;

	 	(b)	 	PGW entering into an Underwrite Agreement with the Underwriters in relation to
any Entitlement Offer;

	 	(c)	 	PGW not, during the period from the date of this agreement to the Placement
Date, without the approval of Agria (not to be unreasonably or arbitrarily withheld or
delayed):

	 	(i)	 	entering into any transaction involving the acquisition or
disposal of an asset or the incurring of an obligation in either case in excess
of $30 million; or

	 	(ii)	 	issuing any Shares, or declaring or making any distribution,
other than as contemplated by this agreement;

	 	(d)	 	Agria not validly issuing notice pursuant to clause 4.2(a), in respect of the
final Offer Document;

	 	(e)	 	Agria being satisfied (acting reasonably) that sufficient funds will be raised
from the Entitlement Offer and other sources to enable PGW to fully repay its
amortising debt facility due for repayment by no later than 31 March 2010;

	 	(f)	 	Receipt by PGW of waivers from the NZSX necessary to permit PGW to enter into
the transactions described in this agreement without the necessity of obtaining
shareholder approval to or for them (or any of them).

 

4

 

pgg wrightson subscription agreement

	2.2	 	Waiver of Conditions

The Conditions in clauses 2.1(a), (b) and (f) are inserted for the benefit of PGW and Agria
and may only be waived by written agreement of both parties. The other Conditions are
inserted for the benefit of Agria, who may waive any of those Conditions by giving written
notice to PGW.

	2.3	 	Time for Fulfilment of Conditions

Each of the conditions set out in clause 2.1 must be fulfilled by midnight on 27 November
2009 (or such later date as the Parties may agree in writing) unless the terms of that
Condition require it be fulfilled as at the Placement Date in which case it must be
fulfilled immediately prior to completion of the Placement on the Placement Date.

	2.4	 	OIO Condition

In relation to the Condition contained in clause 2.1(a):

	 	(a)	 	Agria must use its reasonable commercial endeavours to ensure that the
Condition is satisfied as soon as possible;
	 
	 	(b)	 	Agria and PGW must cooperate with each other in approaching the Overseas
Investment Office and any other third parties for the purposes of satisfying that
Condition and provide all reasonable assistance to the other as is necessary to
satisfy that Condition;
	 
	 	(c)	 	Agria must file all notices and applications for approval necessary to apply
for the consents referred to in clause 2.1(a) and must:

	 	(i)	 	consult with, and provide information to, PGW concerning any
proposed approach by Agria to the Overseas Investment Office and any other third
parties and on the content of any such application for approval and all related
material correspondence; and

	 	(ii)	 	allow PGW the opportunity to be present at any meetings with the
Overseas Investment Office and any other third parties.

	2.5	 	Waiver Condition

In relation to the Condition contained in clause 2.1 (f), PGW must use its reasonable
commercial endeavours to ensure that the Condition is satisfied as soon as possible and consult
with, and provide information to, Agria concerning any approach by PGW to NZSX, and on the content
of any such application for approval and all related material correspondence.

	2.6	 	Information

The parties will each, from time to time, on request from the other keep the other informed
as to progress in procuring satisfaction of the Conditions. Each party will
notify the other promptly if they become aware of any information material to satisfaction
of any of the Conditions.

 

5

 

pgg wrightson subscription agreement

	2.7	 	Failure to Fulfil Conditions

If any Condition is not fulfilled, or waived, before the time at which it is required to be
fulfilled then this agreement shall be terminable at the election of either party by notice
in writing to the other.

	2.8	 	Effect of Termination

If this agreement is terminated under clause 2.6, then no party shall have any claim on the
other except that each party will retain any rights it has against any other party in
connection with any breach of this agreement that has arisen before termination.

	3	 	PLACEMENT
	 
	3.1	 	Subscription for Placement Shares

No later than 2pm on the Placement Date Agria will:

	 	(a)	 	subscribe for the Placement Shares for the placement price on the terms set out
in this agreement;

(b) pay to PGW $36,168,000 (being the placement price for the Placement Shares);

	 	(c)	 	deliver to PGW a counterpart copy of the Co-operation Agreement duly executed
by Agria; and

	 	(d)	 	deliver to PGW a counterpart copy of the PGW Convertible Redeemable Note
Agreement executed by Agria (or its wholly owned subsidiary) and comply with all of its
completion requirements under the PGW Convertible Redeemable Note Agreement

	3.2	 	Issue of Placement Shares

Contemporaneously with Agria complying with its obligations under clause 3.1, PGW will:

	 	(a)	 	issue the Placement Shares to Agria or its nominee under clause 16.7 on the
terms set out in this agreement and procure the entry of such issue on its share
register;

	 	(b)	 	deliver to Agria a counterpart copy of the Co-operation Agreement duly executed
by PGW; and

	 	(c)	 	deliver to Agria a counterpart copy of the PGW Convertible Redeemable Note
Agreement executed by PGW and comply with all of its completion requirements under the
PGW Convertible Redeemable Note Agreement.

 

6

 

pgg wrightson subscription agreement

	3.3	 	Announcement

Immediately following completion of the obligations contemplated by clauses 3.1 and 3.2, PGW
and Agria will make a joint announcement of the transactions contemplated by this agreement
in the form agreed, acting reasonably.

	3.4	 	Terms of Issue

The Placement Shares will be issued on the terms set out in this agreement, free of all
encumbrances and ranking pari passu with all existing Ordinary Shares, on a “cum rights”
basis in respect of the Entitlement Offer (meaning that Agria will be eligible to
participate in the Entitlement Offer in respect of the Placement Shares).

	3.5	 	Agria’s consent

Agria consents to being the holder of the Placement Shares, the Entitlement Shares and any
other Shares to be issued to it under this agreement, and its name, or the name of its
nominee under clause 16.7, being entered in PGW’s register of members in respect of those
 shares and agrees that it will take such shares with the benefit of the rights and subject
to the restrictions contained in this agreement and PGW’s constitution from time to time.

	4	 	OFFER DOCUMENT

	4.1	 	Final Form

PGW will provide Agria with the final form of the Offer Document by no later than 5.00pm on
the second Business Day before the Placement Date by sending it to Agria’s legal advisers by
or as an attachment to an email to the following email addresses:

michael.pollard@simpsongrierson.com

don.holborow@simpsongrierson.com

The Offer Document provided under this clause must be marked up to show the changes to the
Draft Offer Document.

	4.2	 	Material Adverse Provisions

If the Offer Document provided by PGW under clause 4.1 contains, or refers to, any
information that was not included or referred to, in the Draft Offer Document, or amends any
information (including a deletion) in the Draft Offer Document, and that information (or
amendment) constitutes information that is materially adverse to the PGW Group taken as a
whole, Agria will have a right to terminate this agreement as follows:

	 	(a)	 	if Agria exercises that right to terminate it must do so by a written notice to
PGW which is received by PGW before 9am (time being of the essence) on the Business Day
after the final form of Offer Document was provided to Agria under clause 4.1; and

	 	(b)	 	if Agria does not provide such a notice under clause 4.2(a), Agria’s
termination right under this clause shall lapse.

 

7

 

pgg wrightson subscription agreement

	5	 	ENTITLEMENT OFFER
	 
	5.1	 	Entitlement Offer

PGW undertakes to make any Entitlement Offer not earlier than one day after and no later
than 5 Business Days after the Placement Date.

	5.2	 	Acceptance of Entitlement Offer

As soon as practicable, and in any event not later than two Business Days after receipt of
its letter of entitlement under the Entitlement Offer, Agria or its nominee under clause
16.7 will accept the Entitlement Offer for all of the Entitlement Shares and pay the
entitlement price in accordance with the terms of the Offer Document.

	5.3	 	Participation in Sub-underwriting

PGW will use all reasonable commercial endeavours to ensure that Agria is provided with the
opportunity (by way of an offer from the Underwriters which is capable of acceptance by
Agria, acting reasonably) to participate in sub-underwriting of the Entitlement Offer such
that Agria will, if it takes up that opportunity, have a priority allocation of any
shortfall in the Entitlement Offer, subject to applicable Takeovers Code restrictions.

	6	 	ISSUE AND SUBSCRIPTION FOR SUPPLEMENTAL SHARES

	6.1	 	Supplemental Shares

If, after the issue of the Placement Shares, the Entitlement Shares, and any shares acquired
by Agria Holders under the arrangements contemplated by clause 5.3 or otherwise, Agria (and
associates) is able to acquire additional voting rights in PGW, then, on the Supplemental
Placement Date and subject to the limitation set out in clause 6.2, Agria will be entitled
to require PGW to issue to Agria additional ordinary shares in PGW, on the terms set out in
this clause 6. This entitlement, or any similar entitlement to supplemental issuance, shall
not be made available to any other person during the period to which this agreement relates.

	6.2	 	Limitation in relation to Supplemental Shares

PGW shall not issue, and Agria shall not subscribe for, any of the Supplemental Shares if
and to the extent that such issue would cause Agria (and associates) to breach the
requirements of the Takeovers Code.

	6.3	 	Subscription for Supplemental Shares

Agria must, on the Supplemental Placement Date:

	 	(a)	 	subscribe for the Supplemental Shares; and

	 	(b)	 	pay PGW for the Supplemental Shares at an issue price per share equal to the
aggregate of the Entitlement Price and the lesser of (i) NZ$0.05 per Ordinary Share or
(ii) the price per right determined pursuant to the proposed book build process to be
run by the Underwriters to sell to institutional and other investors certain rights
renounced in the Entitlement Offer.

 

8

 

pgg wrightson subscription agreement

	6.4	 	Issue of Supplemental Shares
	 
	 	 	Upon payment by Agria of the issue price for any Supplemental Shares under clause 6.3(b),
PGW must issue the Supplemental Shares to Agria or its nominee under clause 16.7 and procure
the entry of such issue on its share register.
	 
	6.5	 	Terms of Supplemental Shares
	 
	 	 	The Supplemental Shares will be issued free of all encumbrances and ranking pari passu with
all existing Ordinary Shares.
	 
	7	 	PAYMENTS
	 
	7.1	 	Immediately Available Funds
	 
	(a)	 	Payments in Immediately Available Funds
	 
	 	 	All payments under this agreement, with the exception of payments due under clause 5.2 for
the Entitlement Shares (which shall instead be paid in accordance with that clause), must be
made in immediately available funds before 3.00pm on the due date for payment to the account
notified under clause 7.1(b).
	 
	(b)	 	Bank Account
	 
	 	 	The recipient of any payment under this agreement must notify the payer of the bank account
into which the payment is to be made not later than two Business Days prior to the date that
payment is to be received.
	 
	7.2	 	Core Acquisition Price
	 
	(a)	 	No Capitalised Interest
	 
	 	 	The parties agree that the purchase price payable for any property under this
agreement does not include any capitalised interest and that the Placement Price, the
Entitlement Price (if applicable) and the price payable for any Supplemental Shares
are, respectively, the “lowest price” for the purposes of Section EW 32(3) of the
Income Tax Act 2007 (NZ).
	 
	(b)	 	Computation of Taxable Income
	 
	 	 	The parties agree that they will compute their taxable income for the relevant period on the
basis that the purchase price payable for any property under this agreement includes no
capitalised interest and they will file their tax returns accordingly.
	 
	(c)	 	Trust of Issuance Money
	 
	 	 	Any money paid by Agria under this agreement for the issue of Ordinary Shares will be held
on trust for Agria by PGW until such time as the relevant shares are issued or the money is
repaid to Agria in full.
	 
	8	 	COMPLIANCE WITH APPLICABLE LAWS
	 
	 	 	The parties will at all times comply with all laws, regulations and applicable listing rules
in respect of the transactions contemplated by this agreement. Without
limiting the foregoing, Agria will, upon the issue of any Shares under or in accordance with
this agreement, immediately lodge all necessary substantial security holder notices as may
be required by the Securities Markets Act 1988.

 

9

 

pgg wrightson subscription agreement

	9	 	FUTURE ISSUES

PGW covenants that at any time and for so long as Agria Holders hold not less than 15% of
the Ordinary Shares on issue, it will:

	 	(a)	 	Provide the Agria Holders with the opportunity to participate in any non
pro-rata issue of Ordinary Shares undertaken by PGW on a basis which, if they
subscribed for all such Ordinary Shares, would maintain their proportional interest in
Ordinary Shares immediately before the non pro-rata issue, on the same terms as other
participants provided that this will not apply in relation to any issue to employees or
directors under Listing Rules 7.3.6 or 7.3.7, or pursuant to Listing Rule 7.3.11(e).

	 	(b)	 	Not undertake any material placement which results or may result in a Strategic
Investor or any associate (within the meaning of the Takeovers Code, in relation to
PGW) of a Strategic Investor:

	 	(i)	 	having a relevant interest (measured disregarding section 6 of
the Securities Markets Act 1988) in more than 5% of the Ordinary Shares on issue
at any time; or

	 	(ii)	 	increasing the percentage of Ordinary Shares in which such a
relevant interest is held, if such a relevant interest in more than 5% of the
Ordinary Shares on issue is already held,

	 	 	 	without Agria’s consent (not to be unreasonably withheld).

	10	 	BOARD REPRESENTATION

At any time after completion of allotment of the Entitlement Shares, in accordance with
clause 5, Agria will be entitled to nominate up to two Board members, and PGW will convene a
meeting of the Board to be held within 10 Business Days of receipt of such nomination at
which it is resolved to appoint such two directors (except where the relevant representative
is manifestly unsuitable in the circumstances and this is notified to Agria at least 5
Business Days prior to the Board meeting in which case Agria may nominate another director
or directors to be appointed at that meeting).

Agria acknowledges that any such appointee will retire at the next annual meeting of PGW
shareholders and will be eligible for re-election.

Following completion of allotment of the Entitlement Shares, and provided that Agria Holders
hold not less than 15% of the Ordinary Shares on issue, PGW will use all reasonable
endeavours to ensure that up to two Agria nominees are appointed to and remain on the Board
(and to that end PGW will support the nomination and election or re-election of any such
Agria nominee).

 

10

 

pgg wrightson subscription agreement

At any time that Agria does not have a nominee appointed to the Board it will be entitled to
one observer to attend Board meetings.

	11	 	LOCK UP
	 
	11.1	 	Restrictions

Subject to clause 11.2, at any time and for so long as the number of Ordinary Shares held by
Agria Holders exceeds the number of Ordinary Shares in which the Highest Non-Agria Holder
has a relevant interest during the period from the date of this agreement until the date
three years following the date on which the Entitlement Shares are issued to Agria, Agria
will not (and will procure that Agria Holders do not):

	 	(a)	 	sell, transfer or otherwise dispose of the legal or beneficial ownership of any
Ordinary Shares held by it;

	 	(b)	 	pass control of any voting rights attached to any Ordinary Shares held by it to
any other person; or

	 	(c)	 	agree to do (including by way of omission) any of the above.

	11.2	 	Exceptions

The provisions of clause 11.1:

	 	(a)	 	do not prevent Agria (or an Agria Holder) from:

	 	(i)	 	selling, transferring or otherwise disposing of Ordinary Shares:

	 	(A)	 	with the prior written consent of the
Board;
	 
	 	(B)	 	to a wholly owned subsidiary of
Agria, provided that such assignee has agreed (in a form
acceptable to the Board) to transfer such Ordinary Shares back to
Agria or another wholly owned subsidiary of Agria if it ceases to
be a wholly owned subsidiary of Agria; or
	 
	 	(C)	 	in connection with the acceptance of
an offer for Shares made in accordance with the Takeovers Code (or
providing an undertaking to accept such an offer);

	 	(ii)	 	granting a security interest (as defined in the Personal Property
Securities Act 1999) over Ordinary Shares in relation to a bona fide transaction
for the lending of money or the provision of financial services ( provided that
the holder of that security interest has provided an undertaking, in a form
satisfactory to PGW, acting reasonably, to on any enforcement of such security
be bound by and comply with the relevant surviving terms of this Agreement
imposing obligations on Agria in respect of Ordinary Shares held by it) ;

 

11

 

pgg wrightson subscription agreement

	 	(iii)	 	appointing any person as a proxy or voting representative to
vote at a meeting of holders of Ordinary Shares;

	 	(iv)	 	selling, transferring or otherwise disposing of Ordinary Shares:

	 	(A)	 	pursuant to a merger, amalgamation,
scheme of arrangement, restructuring or similar transaction
involving PGW; or
	 
	 	(B)	 	where required by law or any
competent authority;

	 	(b)	 	cease to apply if:

	 	(i)	 	two Agria nominees are offered for election to the Board at an
annual meeting of PGW shareholders and neither of those representatives are
elected to the Board; or

	 	(ii)	 	another party becomes, at any time after completion of the
Entitlement Offer, the holder of a greater number of Shares in PGW than Agria
(together with any transferee of Agria) holds at that time.

	12	 	REPRESENTATIONS AND WARRANTIES
	 
	12.1	 	PGW’s warranties

PGW hereby represents and warrants to Agria that:

	 	(a)	 	It is duly authorised and empowered to execute, enter into and perform this
Agreement.

	 	(b)	 	As at the date of this agreement PGW’s share capital consists of 315,815,616
Ordinary Shares.

	 	(c)	 	PGW’s audited financial statements as at 30 June 2009 comply (in accordance
with the policies disclosed therein) with the applicable requirements of the Financial
Reporting Act 1993.

	 	(d)	 	All written information and answers to questions provided by or on behalf of
PGW to Agria or Agria’s advisers and representatives is materially correct and not
materially misleading, whether by omission or otherwise.

	 	(e)	 	Upon and immediately following the publication of the OfferDocument, there will
be no undisclosed “Material Information” (as that term is defined in the Listing
Rules).

	 	(f)	 	The final form of the Offer Document will comply in all material respects with
the Securities Act 1978 and other applicable laws and will not contain any statement
which is untrue within the meaning of that Act or which is likely to deceive, mislead
or confuse in any particular which is material to the Offer or otherwise fails to refer
or give proper emphasis to adverse circumstances.

 

12

 

pgg wrightson subscription agreement

	12.2	 	Agria’s warranties

Agria hereby represents and warrants to PGW that:

	 	(a)	 	Agria has the financial resources to complete the transactions contemplated by
this agreement.

	 	(b)	 	Except as disclosed to any Board member or officer of PGW:

	 	(i)	 	Agria’s audited financial statements as at 31 December 2007
comply with the applicable US reporting requirements and applicable US
securities laws.

	 	(ii)	 	all written information and answers to questions provided by or
on behalf of Agria to PGW or PGW’s advisers and representatives is materially
correct and not materially misleading, whether by omission or otherwise.

	 	(iii)	 	Agria is in compliance with its continuous disclosure
obligations under applicable NYSE Listing Rules and is not relying on any
exceptions or other provisions contained therein permitting non disclosure of
price sensitive or other material information in respect of Agria.

	13	 	EXCLUSIONS AND LIMITATIONS
	 
	13.1	 	Warranties qualified

The PGW Warranties and the Agria Warranties are given subject to, and are qualified by, the
following matters:

	13.2	 	No Warranty

No PGW Warranty or Agria Warranty is given regarding information that is an assumption,
opinion, assessment, expectation, prediction, estimate, projection or forecast.

	13.3	 	No Claim

Neither party will be liable to the other party for any claim under this agreement to the
extent that:

	 	(a)	 	the relevant circumstance or Loss, arises from, or is attributable to:

	 	(i)	 	a change in, or change in implementation or interpretation of,
accounting policies, or law or regulation or governmental or local authority
policy, taking effect after the date of this agreement; or

	 	(ii)	 	any act or omission of the other party after the Entitlement
Offer is completed; or

	 	(b)	 	the other party makes a taxation saving in respect of the relevant event,
circumstance, Loss, liability, cost or expense.

 

13

 

pgg wrightson subscription agreement

	13.4	 	Quantum

Neither party has liability for any claim made by the other party under this agreement
unless the amount of that claim:

	 	(a)	 	exceeds $1,000,000; and

	 	(b)	 	when aggregated with other claims for which a party is liable under this
agreement exceeds $5,000,000.

	13.5	 	Time Limit

A party has no liability for any claim under this agreement unless the relevant claim is
notified to that party by the other party in writing by the date which is 20 months after
the date of this agreement.

	13.6	 	Each Party Relies on Own Judgment

Each party, acting with the benefit of independent professional advice, has entered into
this agreement in reliance solely on its own judgment and independent inquiry and
investigations to the extent that it has considered appropriate and not in reliance on any
statements, warranties or representations (including as to future prospects) made by or on
behalf of the other party, except for the relevant warranties in this agreement. Neither
party nor any of its representatives accept any duty of care to the other party in respect
of any information provided to that other party or its representatives.

	13.7	 	Exclusion of representations

Except for the PGW Warranties and the Agria Warranties, as applicable (subject to the
limitations in this clause), all express or implied or other representations or warranties
of each party, in relation to the transactions evidenced by this agreement, are hereby
expressly excluded to the maximum extent permitted by law.

	14	 	ADDITIONAL COVENANTS
	 
	14.1	 	No Share issues

PGW will not undertake, or enter into any agreement to undertake, any transaction, Share
issue or distribution of the nature set out in clause 2.1(c) before the earlier of the date
that the Entitlement Issue is completed, or termination of this agreement.

	14.2	 	Use of funds

All funds raised by PGW from the Placement, the Entitlement Offer and any issue of
Supplemental Shares shall be used by PGW solely to pay costs associated with these
transactions and to pay down senior debt of PGW existing as at the date of this agreement,
and will be applied to debt due for repayment within one year of the date of this agreement
in priority to all other debt.

	14.3	 	CAAS

Agria undertakes that it will promptly following execution of this agreement subscribe and
pay for RMB 12,500,000 of shares in the Chinese Academy of Agricultural Sciences (“CAAS”),
in accordance with and pursuant to the terms of the subscription agreement dated 9 September
2009 between Agria and CAAS.

 

14

 

pgg wrightson subscription agreement

	15	 	TERMINATION
	 
	15.1	 	Termination Event

This agreement may be terminated by either party (the Non-Defaulting Party) by written
notice to the other party (the Defaulting Party) if the Defaulting Party commits or is or
becomes subject to any of the following events:

	 	(a)	 	the Defaulting Party goes into liquidation or voluntary administration (other
than a voluntary liquidation for the purpose of reconstruction or amalgamation on terms
previously approved by the Non-Defaulting Party);

	 	(b)	 	a receiver, receiver and manager or administrator is appointed in respect of
any of the assets of the Defaulting Party;

	 	(c)	 	an application is made to a court or a meeting is called for the purposes of
instigating or considering proceedings intended to achieve a result described in
sub-clause (a) or (b) (unless the Defaulting Party satisfies the Non-Defaulting Party
in its reasonable opinion that the application or call for meeting is frivolous or
vexatious);

	 	(d)	 	the Defaulting Party ceases to be able to pay its debts as they come due;

	 	(e)	 	the Defaulting Party enters into any arrangement or composition with its
creditors generally (other than with the prior consent of the Non-Defaulting Party);

	 	(f)	 	the Defaulting Party is declared to be at risk or a statutory manager of the
Defaulting Party is appointed under the Corporations (Investigation & Management) Act
1989; or

	 	(g)	 	the Defaulting Party commits a material breach of this agreement and (if the
breach is capable of remedy) fails to remedy the breach within 15 Business Days after
receipt of written notice from the Non-Defaulting Party requiring it to remedy the
breach.

	15.2	 	No other right to cancel
	 
	 	 	Neither party may cancel or terminate this agreement (including for breach of warranty)
except pursuant to clause 2.7 or 15.1.
	 
	16	 	MISCELLANEOUS
	 
	16.1	 	Payments Free and Clear
	 
	 	 	All payments made under this agreement will be free of set off, withholding or deduction
except as required by law and made in cleared funds immediately available for disbursement.
	 
	16.2	 	Default Interest
	 
	 	 	If for any reason, other than the default of the other party, a party fails to pay any sum
payable under this agreement on the date it is due, then (without prejudice to any other
rights or remedies) it will pay interest to the recipient party at the rate of
10% per annum on the unpaid amount calculated on a daily basis from the due date until payment.

 

15

 

pgg wrightson subscription agreement

	16.3	 	Takeovers Code

Notwithstanding anything else in this agreement, PGW will not be required to issue any
Shares to any person where such issue would, or may, result in PGW or any Agria Holder
breaching the Takeovers Code.

	16.4	 	Announcements

The parties will not make any announcement or disclosure regarding this agreement or its
subject matter and no party may disclose to any other person (who is not a party or a
related company or a representative of a party) any information relating or referring to the
transactions contemplated by this agreement except:

	 	(a)	 	with the prior written consent of the other parties;

	 	(b)	 	where disclosure is required by law or the listing rules of any relevant stock
exchange or is made in compliance with the order of any Court of competent
jurisdiction, in which case the party which is required to make that disclosure will
provide the other party an opportunity to comment on the form and content of that
disclosure.

The parties agree co-operate with each other in meeting their respective disclosure
obligations to various stock exchanges on an ongoing basis. Where possible, there will be
consultation regarding material announcements, and all announcements made by a party to any stock
exchange will be copied to the other party immediately upon release.

	16.5	 	No Merger

The agreements, obligations, warranties and undertakings of the parties are not to merge
with the completion of any aspect of this agreement, but (to the extent that they have not
then been completed) remain enforceable to the fullest extent notwithstanding any rule of
law to the contrary.

	16.6	 	Further Assurances

Each of the parties agrees to execute and deliver any documents, including transfers of
title, and to do all things as may reasonably be required by the other party or parties to
obtain the full benefit of this agreement according to its true intent.

	16.7	 	No Assignment

No party may transfer, assign, create any encumbrance over or deal in any manner with the
benefit or burden of this agreement without first obtaining the written consent of the other
party or parties, such consent not to be unreasonably withheld except that Agria may
nominate, by not less than one Business Day’s notice to PGW, a wholly owned subsidiary to be
issued with the Placement Shares, the Entitlement Shares and any Supplemental Shares
provided that:

	 	(a)	 	any such nomination will not release Agria from any of its obligations under
this agreement; and

	 	(b)	 	Agria must ensure that the nominee does not breach any of Agria’s obligations
under this agreement.

 

16

 

pgg wrightson subscription agreement

	16.8	 	Specific Performance
	 
	 	 	Damages alone will be an inadequate remedy for breach by either party of its obligations
under this agreement and the appropriate remedies for any such breach shall include, at the
election of non defaulting party, orders for specific performance, injunctive relief and/or
damages.
	 
	16.9	 	Amendment
	 
	 	 	No amendment to this agreement shall be effective unless it is in writing and signed by all the parties.
	 
	16.10	 	No Partnership
	 
	 	 	Nothing in this agreement or in the relationship between the parties will be construed as:

	 	(a)	 	creating a partnership or any fiduciary relationship between the parties;

	 	(b)	 	giving any party any of the rights, or subjecting any party to any of the
liabilities, of a partner; or

	 	(c)	 	otherwise constituting any party as the representative or agent of any other
party for any purpose whatever.

	16.11	 	No Waiver
	 
	 	 	A waiver of any provision of this agreement will not be effective unless given in writing,
and then it will only be effective to the extent that it is expressly stated to be given.
No failure, delay or indulgence by any party in exercising any power or right conferred on
that party by this agreement operates as a waiver of such power or right. No single
exercise of any such power or right precludes further exercises of that power or right or
the exercise of any other power or right under this agreement.
	 
	16.12	 	Severability
	 
	 	 	If any part of this agreement is held by any court or administrative body of competent
jurisdiction to be illegal, void or unenforceable, that determination will not impair the
enforceability of the remaining parts of this agreement which will remain in full force.
	 
	16.13	 	Counterparts
	 
	 	 	This agreement may be executed in any number of counterparts. Once each party has executed
a counterpart, and each of the other parties has received a copy of the signed counterpart,
that counterpart will be deemed to be as valid and binding on the party executing it as if
it had been executed by all the parties.
	 
	16.14	 	Costs
	 
	 	 	Except as otherwise provided in this agreement, the parties will meet their own costs
relating to the negotiation, preparation and completion of this agreement.

 

17

 

pgg wrightson subscription agreement

	16.15	 	Notices

	(a)	 	All notices, demands or other communications to be given or delivered under or by reason of
the provisions of this agreement shall be in writing and shall be deemed to have been given
when delivered to the recipient by courier service, mail service or otherwise or upon
confirmation of receipt when sent via facsimile to the recipient. Such notices, demands and
other communications shall be sent to the parties at the address indicated below, or to such
other address or to the attention of such other person as the recipient party has specified by
prior written notice to the sending party.

PGW

The General Counsel

57 Waterloo Road

Hornby

ChristchurchPO Box 292 Christchurch 8140

Facsimile: +64 3 349 6176

jdaly@pggwrightson.co.nz

With a copy to:

John Strowger

Chapman Tripp

23-29 Albert Street

Auckland

Facsimile: +64 9 357 9099

john.strowger@chapmantripp.com

Agria

The Chief Financial Officer

Agria Corporation,

Room 2104, Block B, Ping An International Financial Center,

No.1-3 South Xingyuan Road, Chaoyang District Beijing,

PRC 100027

Fax: :+86 10 84381060 Ext 8001

 

18

 

pgg wrightson subscription agreement

With a copy to:

Michael Pollard / Don Holborow

88 Shortland Street

Private Bag 92518

Auckland

Facsimile: +64 9 307 0331

michael.pollard@simpsongrierson.com

don.holborow@simpsongrierson.com

	(b)	 	Agria will maintain an agent or representative in New Zealand to accept service of any
document required to be served on Agria in relation to proceedings under or in connection with
this agreement.
	 
	(c)	 	Agria appoints Simpson Grierson (c/- Michael Pollard / Don Holborow) whose address is 88
Shortland Street, Auckland as its agent for service and undertakes to notify PGW promptly of
any change of address of a current agent or representative and of the name and address of any
substitute agent or representative.
	 
	(d)	 	Any document will be sufficiently served on Agria if delivered to the most recently notified
agent or representative at its notified address.

	16.16	 	Governing Law/Jurisdiction

This agreement will be governed by, and construed in accordance with, the laws of New
Zealand. The parties submit to the non-exclusive jurisdiction of the courts of New Zealand
in relation to all disputes arising out of or in connection with this agreement.

 

19

 

pgg wrightson subscription agreement

EXECUTION

	 	 	 
	PGG Wrightson Limited by:
	 	 
	 
	 	 
	/s/
 

Director

	 	 
	 
	 	 
	/s/
 

Director

	 	 
	 
	 	 
	Agria Corporation by:
	 	 
	 
	 	 
	/s/ Tao Xie
 

Chief Executive Officer

	 	 
	 
	 	 
	/s/ Yeung Kim Ting, Gary
 

Director

	 	 

 

20

 

pgg wrightson subscription agreement

APPENDIX 1 — CO-OPERATION AGREEMENT

 

21

 

Strategic Cooperation Agreement — Major Contents:

Rationale for co-operation agreement

(a) PGG Wrightson Limited (PGW) is engaged in the provision of rural services. The company’s
segments comprise: rural services, including rural merchandise, irrigation and pumping services,
wool procurement, warehousing, marketing and export, and livestock marketing and supply; technology
services including farm consultancy and supply of seeds, grains and feed supplements; financial
services including farm finance, fund management, real estate and insurance services, and corporate
services including other unallocated items. PGG Wrightson Limited operates predominantly in New
Zealand with some operations in Australia and Uruguay, and Argentina.

(b) Agria Corporation (Agria) is a China-based agri-solutions provider engaged in research and
development, and production and sale of three different types of upstream agricultural products.
The Company offers corn seeds, sheep breeding products and seedling products. Agria also has a
comprehensive, lasting and stable strategic relationship with the China National Academy of
Agricultural Science (CNAAS). CNAAS is the leading agricultural research agency in China for
research and development of new technology initiatives in the agricultural industry. Through its
relationship with CNAAS, Agria has preferential access to an extensive seed bank in China.

(c) Agria and PGW have discussed potential options for cooperation in the areas of agricultural
research and development, enhanced product and service distribution and market expansion, and the
establishment of a rural services joint venture in China. In order to achieve the strategic
objectives of both Parties in China, New Zealand and other markets, the Parties wish to establish a
long-term and close cooperative relationship via a number of options.

The goals of Agria in investing in PGW and entering into a co-operation agreement are to become the
largest shareholder within PGW and through this strategic shareholding and execution of the
co-operation agreement, become a leading provider of a variety of agricultural upstream products
and services to meet the evolving demands of other participants in the agricultural industry and to
access significant management expertise and product know how from PGW.

The goal of PGW in entering into an agreement with Agria are to provide funding to repay debt and
reduce leverage to allow for future investment. The partnership between PGW and Agria provides our
farmer and grower customers a linkage to the world’s largest consumer market. It further provides a
significant opportunity for enhanced distribution of agricultural products and services that are
core business for PGW along with access to seed research from China. There may also be
opportunities for PGW to “source” from China.

 

 

 

Cooperation agreement

16th October 2009

The co-operation agreement will promote co-investment by Agria and PGW, allowing Agria to work
alongside a proven management team with world leading experience in the agriculture sector.

Principles for cooperation

1. General

In the spirit of equality and mutual benefit, the Parties agree to enter into strategic cooperation
in areas outlined in Section 3. In addition the Parties expect that other opportunities or
cooperation may arise from time to time and will be addressed in the spirit of this Agreement.

The Parties acknowledge that following agreement they will commit to the significant work required
to develop the principles of this Agreement into actionable business plans and delivery of tangible
financial benefits.

2. Joint venture principal for operations

As an overriding principal of cooperation the parties agree that this should be through forming and
operating joint ventures in and out of China. The joint venture(s) will be held in proportion to
the ratio of capital contributed but in no case would one of parties to this agreement hold less
than 30% unless by mutual consent. Further, both parties agree that these joint ventures may
necessarily involve additional parties.

The Parties will further evaluate the types of products/services, total investment, project
locations, distribution channels, ownership of intellectual property, branding and marketing, and
other factors for the project.

 

Page 2 of 11

 

Cooperation agreement

16th October 2009

Areas for cooperation

1. Seeds

A key focus of the co-operation agreement is to jointly develop and commercialise cultivars that
Agria, PGW, and their development partners have access to internationally. This would see the
licence of intellectual property held by PGW licensed in China and Internationally, and at the same
time give PGW access to Chinese intellectual property.

	 
	Both PGW through its relationship with it development partners including:

	•	 	Grasslands Innovations -(AgResearch JV Company)

	 	•	 	INIA / Grasslands Innovations (Uruguay)
	 
	 	•	 	Noble Foundation — (US)
	 
	 	•	 	University of Georgia (US)

	•	 	Endophyte Management (AgResearch — Collaboration Agreement)
	 
	•	 	Forage Innovations (Brassicas) — (Plant and Food JV Company)
	 
	•	 	Graminia JV Company -(MPBCRC — Australia)

	 	•	 	Brazil — ENBRAPA
	 
	 	•	 	Uruguay — INIA
	 
	 	•	 	Argentina — University Buenos Aires / INTA

	•	 	Nickersons (UK — Limagrain Group — France)
	 
	•	 	PGWS has a large number of other collaborative agreements which cover:

	 	•	 	Grass / Legumes /Barley /Wheat / Maize / Soya Beans / and a number
of other species in the various markets in which PGWS have operating entities
(Some of these relationships could be potentially introduced to China as
appropriate)

and Agria through its extensive relationship with the China National Academy of Agricultural
Science (“CNAAS”) and in particular through Agria’s completion of its acquisition of a strategic
shareholding of Beijing Zhong Zhong Seed Industry Co., Ltd. a Company partly owned by CNAAS to
commercialise CNAAS Intellectual Property.

 

Page 3 of 11

 

Cooperation agreement

16th October 2009

Both parties agree to cooperate in the commercialisation of cultivars (that they have produced
collaboratively or either party already has rights or access to, that the other party could
commercialise) in the various markets
where they either have existing distribution channels or access to new markets and territories.

Cultivars will be made available on commercial terms that reflect the basis of the relative
contribution each party has made in the overall supply chain. (refer commercialisation matrix
below).

Initially, access to Chinese market may be provided through Agria’s existing operations and later
through joint ventures to be formed by the Parties pursuant to Clause 1.

Both parties agree to expand CNAAS advanced technologies for development of seed cultivars in China
and other territories. Agria will lead the initiative jointly with PGW in identification,
development and application of such commercial opportunities.

Four Parts to commercialisation (assuming CNAAS/Agria and PGWS form “JV Co” to develop cultivars):

	 	1.	 	Germ Plasam — source — China Seed Bank / PGWS (through its JV agreements)
	 
	 	2.	 	Development of Germ Plasam to commercial cultivars — via:

	 	a.	 	China related — CNAAS/Agria and PGWS will carry out field
programme managed by CNAAS/Agria
	 
	 	b.	 	Other markets — CNAAS/Agria and PGWS will carry out in
partnership with PGWS / JV Partners / Collaborator product development / and
field programmes in specific territories

	 	3.	 	Rights to specific markets of jointly held IP:

	 	a.	 	China — JV opportunities to develop JV Co to commercialise forage
and turf varieties in China and Chinese related markets (Discuss basis for
CNAAS/Agria to take product to market in own right)
	 
	 	b.	 	PGW Existing markets / relationships — PGW Licence from JV Co and
distribute exclusively in existing territories
	 
	 	c.	 	CNAAS/Agria Existing markets / relationships — CNAAS/Agria
Licence from JV Co and distribute exclusively in existing territories

	 	4.	 	Rights to Production — (Need to agree basis of production / Territories to be agreed
and definition of entity which carries out this work (JVCo / CNAAS/Agria / PGWS — will be
dependent upon value / climatic and geographic conditions)

 

Page 4 of 11

 

Cooperation agreement

16th October 2009

It is proposed that the following matrix will be applied on a cultivar by cultivar basis in
assessment of the optimum development and commercialisation pathway:

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	JV	 	 	CNAAS/Agria	 	 	PGWS	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	RED (Cultivar Development)
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Production
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Processing
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Product Development (Proof of Concept)
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Marketing
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Sales
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Logistics
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Administration
	 	 	 	 	 	 	 	 	 	 	 	 

2. Livestock

PGW and Agria agree that New Zealand has exceptional livestock experience and that this experience
can be effectively utilised in China. The form of cooperation envisaged is for Agria to source
Livestock needs in China and for PGW to fill that need through live export, from New Zealand,
Uruguay, and selected markets. Agria will facilitate the development of entry access to markets for
additional live exports as required

Additionally, livestock trading in China is fragmented and features an imbalance in trading:
typically livestock farmers are small holders whilst the processing plants are on a relatively
significant scale which has given the processors a significant advantage.

Using New Zealand’s and PGW’s technical experience with livestock auction systems both parties,
through a joint venture will negotiate on a province by province basis with autonomous officials
and also at a central government level to initiate reform in these markets that will address this
imbalance, specifically the establishment of an auction system in China.

 

Page 5 of 11

 

Cooperation agreement

16th October 2009

3. Wool trading

PGW agree to source strong wool from New Zealand, as a priority for export to China. Agria will
facilitate the purchase of the strong wool for scouring and sale in China.

4. Agricultural Services and Science Development

Agria and PGW will work to develop Research Farms in China which will seek to exhibit and test
specific farming practices, systems and technologies focussing on the areas of grass type, stock
varieties, irrigation and animal health practices.

The parties will look to establish a working committee which will seek to actively explore
opportunities through both parties respective existing depth of relationships to foster and
encourage collaboration between New Zealand Agricultural based Tertiary Institutions (and other
institutions with which PGW has relationships around the world) and Chinese Agricultural and
Science Universities in respect of but not limited to the development of commercially focussed
research and learning in areas of:

	 	•	 	Animal Science (including Dairy and Livestock Production),
	 
	 	•	 	Plant science (including Pasture Management, Agronomy and
Crop Science),
	 
	 	•	 	Soil Science, and
	 
	 	•	 	Biosciences

with a view to enhancing productivity in countries and areas of joint focus.

5. Finance

Agira will work with PGW Finance to provide funding lines through a third party source to enhance
liquidity and development of the business. The benefit for the 3rd party provider will be access to
lending expertise in the rural finance sector.

 

Page 6 of 11

 

Cooperation agreement

16th October 2009

6. Rural Services — China

PGW and Agria agree that the Chinese agricultural market does not have a mature provider of rural
services. Both Parties agree to develop carry out investigations in respect to the development of a
rural services business in China using a joint venture model.

The services business will necessarily be different from the New Zealand based business but will
draw heavily from PGW management experiences and expertise with capital being largely provided by
Agria and its Chinese connections.

Agria sees this development of Rural services in China as a longer term project and will need to
start in the areas of China where there has already been a level of consolidation — for example in
Dongbei and Xinjiang.

The initial focus of such a joint venture will be rural merchandise, irrigation and pumping
services, warehousing, marketing and export, and specialist advice. The Parties will further
evaluate the types of products / services, total investment, project locations, distribution
channels, ownership of intellectual property, branding and marketing, and other factors for the
project.

Agria and PGW are open to the concept of introducing as partners to the Rural Services the
Agricultural Bank of China & the Post Office of China (the Post office has one of the best
distribution channels in China for this market)

7. Dairy Farm conversion and development

Agria and PGW both believe there is great merit to certain aspects of the business model
encapsulated in the New Zealand Farming Systems Uruguay model, which is based upon a large scale
dairy conversion managed by PGW. The Parties will seek to replicate such a model in other regions
and countries where the business case can be proven including China with the intention that Agria
will have a first call option for the purchase of produce provided that it is destined for China.

The basis for joint venture in this area will be to use PGW management to manage these developments
and Chinese capital to fund the investments. Additionally, Agria will endeavour to acquire the
necessary land with the PRC to apply this business model.

Outline of projects Agria has under consideration — to be discussed and developed

 

Page 7 of 11

 

Cooperation agreement

16th October 2009

Further areas to be discussed between Agria and PGW include:

	 	•	 	Agria secure land & finance
	 
	 	•	 	PGW and Agria conduct jointly business planning
	 
	 	•	 	PGW enters into management contracts
	 
	 	•	 	Agria secures distribution contracts
	 
	 	•	 	Outside China — Agria takes the lead in securing financing

10. Cooperation in PRC Financed Cross-Border Agricultural Investment

PGW and Agria agree to collaborate in future investment in the agricultural investment worldwide,
including further investment in New Zealand and South America, through financing obtained within
the PRC. Agria agrees to endeavour to solicit and obtain financing and loans from domestic PRC
financial institutions for possible reinvestment abroad.

In addition PGW and Agria agree on a best endeavours basis to identify methods of securing China
based investment capital to PGW Businesses (and / or PGW and Agria Joint Ventures) where such
external funding may provide a competitive advantage to PGW and Agria, or specifically enable
growth of a specific business unit.

Initially it is envisaged that Agria (or an associated entity) will initially invest directly into
the PGW Finance business (through a convertible debt or equity instrument) with the view that Agria
would seek to identify other China based investment capital in the short to medium term to co
invest in the PGW Finance business

 

Page 8 of 11

 

Cooperation agreement

16th October 2009

Implementation of the Cooperation

Steering Committee

The Parties shall establish a steering committee (“Steering Committee”), which shall be comprised
of [six (6)] members from the senior management of each Party, including [three (3)] appointed by
Agria and [three (3)] appointed by PGW. The Steering Committee shall have the overall
responsibility of determining and overseeing the Parties’ cooperative projects. Meetings will in
principle be held once every three (3) months in person or by telephone or video conference.

The Steering Committee shall operate by consensus and cover the following responsibilities:

	 	(i)	 	approval and amendment of the annual cooperation plan;
	 
	 	(ii)	 	decisions on joint venture projects, establishment of
supply relationships and bases, share participation, or any other forms of
cooperation;
	 
	 	(iii)	 	preparation and coordination of the internal approval
process of each Party as required to validly conclude definitive agreements
between the Parties for implementation of projects set forth in (i) above as
well as the application process to obtain any governmental approvals required
under applicable law;
	 
	 	(iv)	 	guidance, supervision and monitoring of the work and
progress of the Joint Execution Team;
	 
	 	(v)	 	any other responsibilities as the Parties may agree.

Joint Execution Team.

After the execution of this Agreement, the Parties shall immediately form a joint execution team
(“Joint Execution Team”). The Joint Execution Team shall meet and communicate on a regular basis,
and operate by consensus with the following responsibilities:

	 	(i)	 	preparing an annual plan for the overall direction of the
cooperation between the Parties and submitting the same to the Steering
Committee;
	 
	 	(ii)	 	preparing a step-by-step implementation plan for the
cooperation projects which may be updated from time to time and submitting
the same to the Steering Committee;

 

Page 9 of 11

 

Cooperation agreement

16th October 2009

	 	(iii)	 	studying the feasibility of any joint venture, supply relationship, share
participation, or other cooperative project;
	 
	 	(iv)	 	preparing the implementation of any joint venture, supply
relationship, share participation, or other cooperative project, including
preparing and negotiating definitive agreements and coordination in the
approval process; and
	 
	 	(v)	 	preparing for meetings of the Steering Committee and
implementing the decisions of the Steering Committee.

General Terms

Term

This Agreement shall be effective as of the date of execution by the Parties or their authorized
representatives for a period of [ten (10)] years. The Agreement can be terminated early or extended
through the mutual agreement of the Parties. The Parties agree to jointly review the implementation
of the Agreement on a yearly basis after the execution of the Agreement and to decide whether to
extend, terminate or adjust the Agreement based on results of such review.

Termination

Either Party shall be entitled to terminate this Agreement by giving to the other not less than 60
(sixty) business days prior written notice on the occurrence of any of the following events:

	 	(a)	 	the other Party has materially breached any of its representations, warranties,
covenants, or undertakings or any of its obligations or responsibilities under this
Agreement and such breach when capable is not rectified within a period of 30 (thirty)
Business Days from the date of receipt of written notice from the non defaulting Party;
	 
	 	(b)	 	the other Party becomes insolvent or bankrupt, makes a general assignment for the
benefit of its creditors, or has a receiver or manager appointed over its shares or all
or a substantial part of its undertaking or assets other than for the purposes of
amalgamation or reorganization not involving or arising out of insolvency provided that
if an order appointing a receiver or manager is passed, the same has not been vacated
within 90 (ninety) Business Days; or

 

Page 10 of 11

 

Cooperation agreement

16th October 2009

	 	(c)	 	either Party is at any time after the effectiveness of this Agreement prevented from
exercising any of its material rights under this Agreement, either shall be entitled to
terminate this Agreement immediately upon written notice to the opposing Party;
	 
	 	(d)	 	the other Party (i) sells, or offers to sell, a material portion of its assets, or
(ii) sells or exchanges, or offers to sell or exchange, or causes to be sold or
exchanged, a sufficient amount of its stock that effects a change in the control of such
Party;

The termination of this Agreement shall not affect the definitive agreements entered into between
the Parties relating to specific joint projects or otherwise, except as may be provided in such
agreements.

11. Dispute resolution

All disputes, controversies or differences which may arise between the Parties out of or in
relation to or in connection with this agreement shall be finally settled by arbitration conducted
with the Hong Kong International Arbitration Centre (“HKIAC”) in Chinese and English in accordance
with the UNCITRAL Rules as are in force at the time. The arbitral tribunal shall be composed of
three (3) arbitrators. Each Party shall appoint one arbitrator, and the chairman of HKIAC shall
appoint a third arbitrator. HKIAC’s arbitral award is final and binding on the Parties and the
Parties agree to be bound by the arbitral award and act in accordance with the arbitral award.

The costs of arbitration shall, in principle, be borne by the Party or Parties whose arbitration
claims are not supported, but the arbitral tribunal may apportion costs amongst the Parties in
accordance with the arbitration rules.

 

Page 11 of 11Exhibit 4.21

Exhibit 4.21

Subscription Agreement for Convertible Redeemable Notes

PGG Wrightson Limited (PGW)

Agria Corporation (Agria)

 

 

 

CONTENTS

	 	 	 	 	 
	1 INTERPRETATION
	 	 	1	 
	1.1 Defined terms
	 	 	1	 
	1.2 Other references
	 	 	2	 
	 
	 	 	 	 
	2 ISSUE OF THE NOTES
	 	 	2	 
	2.1 Issue
	 	 	2	 
	2.2 Purpose
	 	 	2	 
	2.3 Preference Share Terms
	 	 	2	 
	2.4 Issue of Preference Shares
	 	 	3	 
	2.5 Principal Amount
	 	 	3	 
	2.6 Evidence of Liability
	 	 	3	 
	 
	 	 	 	 
	3 CONDITIONS
	 	 	3	 
	 
	 	 	 	 
	4 INFORMATION
	 	 	3	 
	 
	 	 	 	 
	5 ASSIGNMENT
	 	 	3	 
	 
	 	 	 	 
	5.1 Benefit and Burden of this Agreement
	 	 	3	 
	5.2 Agria
	 	 	4	 
	5.3 PGW
	 	 	4	 
	 
	 	 	 	 
	6 PGW FINANCE LIMITED
	 	 	4	 
	 
	 	 	 	 
	7 MISCELLANEOUS
	 	 	4	 
	7.1 Payments Free and Clear
	 	 	4	 
	7.2 Default Interest
	 	 	4	 
	7.3 Announcements
	 	 	4	 
	7.4 No Merger
	 	 	5	 
	7.5 Further Assurances
	 	 	5	 
	7.6 Specific Performance
	 	 	5	 
	7.7 Amendment
	 	 	5	 
	7.8 No Partnership
	 	 	5	 
	7.9 No Waiver
	 	 	5	 
	7.10 Severability
	 	 	5	 
	7.11 Counterparts
	 	 	6	 
	7.12 Costs
	 	 	6	 
	7.13 Notices
	 	 	6	 
	7.14 Governing Law/Jurisdiction
	 	 	6	 
	 
	 	 	 	 
	EXECUTION
	 	 	7	 
	 
	 	 	 	 
	SCHEDULE 1 TERMS AND CONDITIONS OF THE NOTES
	 	 	8	 
	 
	 	 	 	 
	1 INTERPRETATION
	 	 	8	 
	1.1 Defined Terms
	 	 	8	 
	1.2 Construction
	 	 	12	 
	 
	 	 	 	 
	2 STATUS AND SUBORDINATION OF THE NOTES
	 	 	12	 
	2.1 Status
	 	 	12	 
	2.2 Subordination
	 	 	12	 

 

 

 

	 	 	 	 	 
	3 INTEREST
	 	 	13	 
	3.1 Interest Rate and calculation of interest
	 	 	13	 
	3.2 Interest and Unpaid Interest
	 	 	13	 
	3.3 Payments
	 	 	14	 
	3.4 Withholding tax
	 	 	15	 
	3.5 Interest Rate Resetting
	 	 	15	 
	 
	 	 	 	 
	4 CONVERSION AND PGW’S OPTION TO REDEEM FOR CASH OR BY TRANSFER OF PGWF ORDINARY SHARES
	 	 	16	 
	4.1 Election Notice and right of Noteholder to make election
	 	 	16	 
	4.2 Election by Agria
	 	 	16	 
	4.3 Conversion
	 	 	17	 
	4.4 Redemption by transfer of PGWF Ordinary Shares
	 	 	18	 
	4.5 Redemption or Purchase for cash
	 	 	19	 
	4.6 Failure to obtain Approvals
	 	 	20	 
	4.7 Take-over
	 	 	20	 
	4.8 PGW Shareholder Meetings
	 	 	21	 
	4.9 Sale of Controlling Interest in PGW Finance
	 	 	21	 
	4.10 Share register
	 	 	21	 
	4.11 Surrender of Certificate on Conversion or Transfer
	 	 	21	 
	4.12 Cancellation on conversion, redemption or purchase
	 	 	21	 
	4.13 Voting
	 	 	21	 
	 
	 	 	 	 
	5 CONVERSION RATIO ADJUSTMENTS
	 	 	21	 
	5.1 Bonus Issues
	 	 	21	 
	5.2 Consolidation or Subdivision
	 	 	22	 
	5.3 Share Issues
	 	 	22	 
	5.4 Alterations to Capital Structure and Reconstructions Generally
	 	 	22	 
	 
	 	 	 	 
	6 MISCELLANEOUS PROVISIONS
	 	 	23	 
	6.1 Amendments
	 	 	23	 
	6.2 Assignment
	 	 	23	 
	6.3 Severability
	 	 	23	 
	6.4 Partial invalidity
	 	 	23	 
	6.5 Payments
	 	 	23	 
	6.6 Set-off
	 	 	23	 
	6.7 Contracts Privity Act
	 	 	23	 
	6.8 Governing law
	 	 	23	 
	 
	 	 	 	 
	SCHEDULE 2 PGG WRIGHTSON FINANCE — PREFERENCE SHARE TERM SHEET
	 	 	24	 
	 
	 	 	 	 
	SCHEDULE 3 FORM OF CONVERTIBLE NOTE CERTIFICATE
	 	 	26	 
	 
	 	 	 	 
	SCHEDULE 4 PRINCIPLES OF “DRAG ALONG” AND “TAG ALONG” OPTION
	 	 	27	 

 

 

 

SUBSCRIPTION
AGREEMENT FOR CONVERTIBLE REDEEMABLE NOTES

Date: November 18, 2009

PARTIES

PGG Wrightson Limited (PGW)

Agria Corporation (together with its permitted transferees and assigns (Agria))

BACKGROUND

	A 	 	

PGW proposes to issue to Agria convertible redeemable notes having an aggregate
Principal Amount of the NZD Equivalent of US$25 million as at the Issue Date on the
terms and conditions set out in Schedule 1.
	 
	B 	 	
Agria has agreed to subscribe for the convertible redeemable notes on the terms and
subject to the conditions set out in this Agreement.

THE PARTIES AGREE as follows:

	1	 	INTERPRETATION
	 
	1.1	 	Defined terms

In this Agreement, unless the context requires otherwise:

Agreement means this subscription agreement, as amended or supplemented from time to time.

Board means the board of directors from time to time of PGW.

Business Day means a day (other than a Saturday, Sunday or public holiday) on which
registered banks are open for business in Auckland.

Certificate means a certificate issued by PGW recording Agria as the holder of the Notes,
in the form annexed as Schedule 3.

Conditions means the terms and conditions of the Notes set out in Schedule 1.

Dollars and $ means the lawful currency of New Zealand.

Election Notice, Issue Date and Ordinary Shares each have the meanings given to them in the
Conditions.

Notes means the convertible redeemable notes issued by PGW pursuant to this Agreement
having an aggregate Principal Amount of the NZD Equivalent of US$25 million as at the Issue
Date.

 

1

 

subscription
agreement for convertible redeemable notes

NZD Equivalent means, on any day, in relation to an amount denominated in US Dollars, the
amount of NZ Dollars with which Agria would be able to purchase that
amount of US Dollars for delivery on the day in question, calculated at the spot rate of
exchange for the purchase of that currency with NZ Dollars appearing on Reuters page RBNZ01
at 11 a.m. two Business Days prior to the day in question or, if that page is not available,
the rate determined by Agria based on such market quoted rates as it considers appropriate,
acting reasonably.

PGG Wrightson Subscription Agreement means the subscription agreement between PGW and Agria
dated 16 October 2009 relating to the Placement Shares and the Entitlement Shares (as
defined therein).

PGW Finance means PGG Wrightson Finance Limited.

PGWF Ordinary Shares means ordinary shares in PGW Finance.

Preference Shares means the preference shares to be issued, one day after the Issue Date, by
PGW Finance to PGW in accordance with Schedule 2.

Principal Amount means, in relation to each Note, NZ$1.00.

	1.2	 	Other references
	 
	(a)	 	Words importing any gender include the other genders. Words importing the singular include
the plural and vice versa.
	 
	(b)	 	Reference to clauses and Schedules are to the clauses and Schedules of this Agreement.
	 
	(c)	 	Headings will be ignored in construing this Agreement.
	 
	(d)	 	Where any payment to be made or thing to be done under this Agreement is due to be paid or
done on a day which is not a Business Day, the date for such payment to be made or thing to be
done will be the next succeeding Business Day.
	 
	(e)	 	A reference to a party to this Agreement is a reference to its successors and permitted
assigns.
	 
	2	 	ISSUE OF THE NOTES
	 
	2.1	 	Issue
	 
	 	 	PGW will issue to Agria, and Agria agrees to subscribe for, the Notes immediately on the
later of Friday 15 January 2010 and the date on which the conditions contained in clause 3
are satisfied or waived, or such other date as the parties may agree.
	 
	2.2	 	Purpose
	 
	 	 	PGW will use the proceeds of Notes issued pursuant to this Agreement for the purposes of
making an investment in the Preference Shares to be issued by PGW Finance on the terms set
out in Schedule 2.
	 
	2.3	 	Preference Share Terms
	 
	 	 	PGW will not agree to any amendment or variation, of any nature, to the terms of the
Preference Shares, or agree to any action which would have the effect of the
restrictions on the payment of dividends on the PGWF Ordinary Shares and on the Preference
Shares by PGW Finance not being observed, in each case without the prior written consent of
Agria, which shall not be unreasonably withheld or delayed.

 

2

 

subscription
agreement for convertible redeemable notes

	2.4	 	Issue of Preference Shares
	 
	 	 	PGW shall deliver to Agria, on the proposed Issue Date, evidence of its commitment to
subscribe for the Preference Shares, with evidence that the terms on which the Preference
Shares are being issued are as set out in Schedule 2.
	 
	2.5	 	Principal Amount
	 
	 	 	Each Note will be issued at the Principal Amount. Agria will pay, or procure the payment
of, the aggregate issue price for Notes to PGW contemporaneously with their issue in
accordance with clause 2.1 against receipt of a Certificate for those Notes.
	 
	2.6	 	Evidence of Liability
	 
	 	 	Notes are issued on the basis that, at any time, each Note shall be evidence of the
liability of PGW for the Principal Amount and interest on the Principal Amount.
	 
	3	 	CONDITIONS
	 
	 	 	The obligations to issue and subscribe for the Notes are conditional on:

	 	(a)	 	the conditions in the PGG Wrightson Subscription Agreement being satisfied or
waived;
	 
	 	(b)	 	clauses 3.1 and 3.2 of the PGG Wrightson Subscription Agreement being complied
with;
	 
	 	(c)	 	PGW satisfying the obligation imposed on it under clause 2.4; and
	 
	 	(d)	 	if required by the lenders under the Senior Facilities Agreement (as defined in
the Conditions), Agria delivering a legal opinion to those lenders as to the due
execution, enforceability and effectiveness of subordination of this Agreement, in a
form which is acceptable to those lenders (acting reasonably).

	4	 	INFORMATION
	 
	 	 	PGW shall provide to Agria copies of all documentation which it from time to time
sends to the holders of the Ordinary Shares, promptly after such documentation is
provided to such shareholders.
	 
	5	 	ASSIGNMENT
	 
	5.1	 	Benefit and Burden of this Agreement
	 
	 	 	This Agreement is binding on the successors and permitted assigns of the parties.

 

3

 

subscription
agreement for convertible redeemable notes

	5.2	 	Agria
	 
	 	 	Agria may not assign or transfer any of its rights or obligations under this Agreement
and/or the Notes without the prior written consent of PGW (which
consent shall not be unreasonably withheld or delayed only if the assignment or transfer is
in respect of the entire Agreement or all the Notes, as the case may be). If such consent
is given, the proposed transferee must enter into documentation acceptable to PGW whereby
the transferee agrees to be bound by this Agreement (including the requirement to obtain
PGW’s prior written consent to any transfer or assignment).
	 
	5.3	 	PGW
	 
	 	 	PGW may not assign or transfer any of its rights or obligations under this Agreement and/or
the Notes without the prior written consent of Agria.
	 
	6	 	PGW FINANCE LIMITED
	 
	 	 	The parties agree that if, at any time, the Notes are to be redeemed by the
transfer of PGWF Ordinary Shares to Agria and, following such transfer, PGW will still
retain a controlling interest in PGW Finance, they will enter into any necessary
documentation between them which records that certain “drag along” and “tag along”
rights are conferred on Agria, in the event PGW wishes to sell a controlling interest
in PGW Finance. The documentation will be negotiated by PGW and Agria in good faith at
the relevant time (and shall be a condition precedent to the transfer of PGWF Ordinary
Shares to Agria in accordance with Condition 4.4), but shall contain the principles set
out in Schedule 4.
	 
	7	 	MISCELLANEOUS
	 
	7.1	 	Payments Free and Clear
	 
	 	 	All payments made under this Agreement will be free of set off, withholding or deduction
except as required by law and made in cleared funds immediately available for disbursement.
	 
	7.2	 	Default Interest
	 
	 	 	If for any reason, other than the default of the other party, a party fails to pay any sum
payable under this Agreement on the date it is due, then (without prejudice to any other
rights or remedies) it will pay interest to the recipient party at the rate of 10% per annum
on the unpaid amount calculated on a daily basis from the due date until payment.
	 
	7.3	 	Announcements
	 
	 	 	The parties will not make any announcement or disclosure regarding this Agreement or its
subject matter and no party may disclose to any other person (who is not a party or a
related company or a representative of a party) any information relating or referring to the
transactions contemplated by this Agreement except:

	 	(a)	 	with the prior written consent of the other party;
	 
	 	(b)	 	where disclosure is required by law or the listing rules of any relevant stock
exchange or is made in compliance with the order of any Court of competent
jurisdiction, in which case the party which is required to make that disclosure will
provide the other party an opportunity to comment on the form and content of that
disclosure.

 

4

 

subscription
agreement for convertible redeemable notes

	7.4	 	No Merger
	 
	 	 	The agreements, obligations, warranties and undertakings of the parties are not to merge
with the completion of any aspect of this Agreement, but (to the extent that they have not
then been completed) remain enforceable to the fullest extent notwithstanding any rule of
law to the contrary.
	 
	7.5	 	Further Assurances
	 
	 	 	Each of the parties agrees to execute and deliver any documents, including transfers of
title, and to do all things as may reasonably be required by the other party to obtain the
full benefit of this Agreement according to its true intent.
	 
	7.6	 	Specific Performance
	 
	 	 	Damages alone will be an inadequate remedy for breach by either party of its obligations
under this Agreement and the appropriate remedies for any such breach shall include, at the
election of the non defaulting party, orders for specific performance, injunctive relief
and/or damages.
	 
	7.7	 	Amendment
	 
	 	 	No amendment to this Agreement shall be effective unless it is in writing and signed by all the parties.

	 
	7.8	 	 No Partnership
	 
	 	 	Nothing in this Agreement or in the relationship between the parties will be construed as:

	 	(a)	 	creating a partnership or any fiduciary relationship between the parties;
	 
	 	(b)	 	giving any party any of the rights, or subjecting any party to any of the
liabilities, of a partner; or
	 
	 	(c)	 	otherwise constituting any party as the representative or agent of any other
party for any purpose whatever.

	7.9	 	No Waiver
	 
	 	 	A waiver of any provision of this Agreement will not be effective unless given in writing,
and then it will only be effective to the extent that it is expressly stated to be given.
No failure, delay or indulgence by any party in exercising any power or right conferred on
that party by this Agreement operates as a waiver of such power or right. No single
exercise of any such power or right precludes further exercises of that power or right or
the exercise of any other power or right under this Agreement.
	 
	7.10	 	Severability
	 
	 	 	If any part of this Agreement is held by any court or administrative body of competent
jurisdiction to be illegal, void or unenforceable, that determination will not impair the
enforceability of the remaining parts of this Agreement which will remain in full force.

 

5

 

subscription
agreement for convertible redeemable notes

	7.11	 	Counterparts
	 
	 	 	This Agreement may be executed in any number of counterparts. Once each party has executed
a counterpart, and each of the other parties has received a copy of the signed counterpart,
that counterpart will be deemed to be as valid and binding on the party executing it as if
it had been executed by all the parties.
	 
	7.12	 	Costs
	 
	 	 	Except as otherwise provided in this Agreement, the parties will meet their own costs
relating to the negotiation, preparation and completion of this Agreement.
	 
	7.13	 	Notices
	 
	(a)	 	All notices, demands or other communications to be given or delivered under or by reason of
the provisions of this Agreement shall be in writing and shall be deemed to have been given
when delivered to the recipient by courier service, mail service or otherwise or upon
confirmation of receipt when sent via facsimile to the recipient. Such notices, demands and
other communications shall be sent to each party at the address indicated after its name in
the execution section of this Agreement, or to such other address or to the attention of such
other person as the recipient party has specified by prior written notice to the sending
party.
	 
	(b)	 	Agria will maintain an agent or representative in New Zealand to accept service of any
document required to be served on Agria in relation to proceedings under or in connection with
this Agreement.
	 
	(c)	 	Agria appoints Simpson Grierson (attention Michael Pollard) whose address is Lumley Centre,
88 Shortland Street, Private Bag 92518, Auckland 1141, as its agent for service and undertakes
to notify PGW promptly of any change of address of a current agent or representative and of
the name and address of any substitute agent or representative.
	 
	(d)	 	Any document will be sufficiently served on Agria if delivered to the most recently notified
agent or representative at its notified address.
	 
	7.14	 	Governing Law/Jurisdiction
	 
	 	 	This Agreement will be governed by, and construed in accordance with, the laws of New
Zealand. The parties submit to the non-exclusive jurisdiction of the courts of New Zealand
in relation to all disputes arising out of or in connection with this agreement.

 

6

 

subscription
agreement for convertible redeemable notes

EXECUTION

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	PGG Wrightson Limited by:	 	Agria Corporation by:
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	/s/

	 	 	 	 	 	 	 	/s/	 	 	 	 	 	 
	 	 	 	 	 	 	 
	Director	 	 	 	Director	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	/s/

	 	 	 	 	 	 	 	/s/	 	 	 	 	 	 
	 	 	 	 	 	 	 
	Director	 	 	 	Director	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Address for Notices:	 	Address for Notices:
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	57 Waterloo Road 

PO Box 292

Christchurch 

New Zealand	 	Room 2104, Block B, Ping An
International

Financial Center, 

No.1-3 South Xingyuan Road,
Chaoyang 

District Beijing,

 PRC 100027
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Attention: General Counsel/Company Secretary	 	Attention: Chief Financial Officer
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Facsimile No: +64 3 344 5195	 	Fax: :+86 10 84381060 Ext 8001
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Copy to:	 	Chapman Tripp	 	 	 	Copy to:	 	Simpson Grierson	 	 
	 

	 	 	 	Level 35,
	 	 	 	 	 	 	 	Lumley Centre	 	 
	 

	 	 	 	23-29 Albert Street,
	 	 	 	 	 	 	 	88 Shortland Street	 	 
	 

	 	 	 	PO Box 2206,
	 	 	 	 	 	 	 	Private Bag 92518	 	 
	 

	 	 	 	Auckland
	 	 	 	 	 	 	 	Auckland	 	 
	 

	 	 	 	Attention: John Strowger
	 	 	 	 	 	 	 	Attention: Michael Pollard	 	 
	 

	 	 	 	Facsimile: 09 — 357 9099
	 	 	 	 	 	 	 	Facsimile: 09 307 0331	 	 

 

7

 

subscription
agreement for convertible redeemable notes

SCHEDULE 1

TERMS AND CONDITIONS OF THE NOTES

	1	 	INTERPRETATION
	 
	1.1	 	Defined Terms

In these Conditions, words and expressions defined in the Subscription Agreement have the
same meanings when used herein and, unless the context otherwise requires:

Accrued Interest means all interest on the Principal Amount of the Notes which has accrued
and is payable in accordance with these Conditions, other than any Suspended Interest.

Agria Election Notice has the meaning given to that term in Condition 4.2.

Board means the board of directors from time to time of PGW.

Bonus Issue has the meaning given to that term in Condition 5.1.

Bonus Instrument has the meaning given to that term in Condition 5.1.

Cash Equivalent Value means the cash equivalent value of each PGWF Ordinary Share,
determined in accordance with Condition 4.6.

Cash Redemption Date has the meaning set out in Condition 3.1(a).

Certificate means a certificate issued by PGW recording Agria as the holder of the Notes,
in the form annexed as Schedule 3.

Commencement of Liquidation means :

	 	(a)	 	the commencement of Liquidation of PGW under section 241(5) of the Companies
Act or the removal of PGW from the New Zealand register under section 317 of the
Companies Act, as the case may be, or under any similar legislation under which PGW
will cease to be duly incorporated or to validly exist in New Zealand, or the date on
which a statutory manager is appointed to PGW under the Corporations (Investigations
and Management) Act 1989 or a voluntary administrator is appointed to PGW; or
	 
	 	(b)	 	the appointment of a receiver or receivers in respect of any asset of PGW by
the security agent holding the security under which amounts outstanding under the
Senior Facilities Agreement are secured.

Companies Act means the Companies Act 1993.

Conversion means the redemption of Notes by the issue of Ordinary Shares in accordance with
Condition 4.3, and ‘convert‘, ‘convertible’ and ‘converted’ shall be construed accordingly.

 

8

 

subscription
agreement for convertible redeemable notes

Conversion Date has the meaning set out in Condition 4.3(b).

Conversion Ratio means the ratio in which the relevant Notes convert into Ordinary Shares
hereunder, being initially (and subject to adjustment in accordance with Condition 5) the
ratio of 2.1 Ordinary Shares for every $1.00 of the Principal Amount of those Notes to be so
converted

Election Notice means a notice given by PGW in accordance with Condition 4.1.

Exchange Ratio means the ratio of X PGWF Ordinary Shares for each Note, where X is equal to
the greater of:

	 	•	 	1/(NTA per PGWF Ordinary Share at 31 December 2009 ); or
	 
	 	•	 	1/(NTA per PGWF Ordinary Share at the last day of the month immediately prior to the
Transfer Redemption Date (where NTA per PGWF Ordinary Share is the total tangible
assets of PGW Finance minus the total liabilities of PGW Finance at that date (provided
that, for the purposes of this calculation, the computer software and the future income
tax benefits arising from tax provisioning of PGW Finance shall be deemed to be
included as tangible assets), divided by the number of PGWF Ordinary Shares on issue at
the relevant time, as determined either by the auditors of PGW Finance or, if an
independent report is required for the purposes of the PGW shareholder meeting to
approve the transfer of the PGWF Ordinary Shares to Agria, by the party completing that
independent report),

subject to X being capped so that, if such shares are transferred to Agria in accordance
with Condition 4.4, Agria would own not more than, nor less than, the following:

	 	(i)	 	a maximum of 50% of the fully diluted PGWF Ordinary Shares; and 
	 
	 	(ii)	 	a minimum of 33% of the fully diluted PGWF Ordinary Shares.

Final Interest Payment Date means, in respect of any Note, the date on which that Note is
converted or redeemed in accordance with these Conditions.

Independent Expert means a person selected and approved as such in accordance with Condition
5.4.

Interest Payment Date means 31 March 2010 and quarterly thereafter until the Final Interest
Payment Date, and the Final Interest Payment Date.

Interest Period means the period from and including one Interest Payment Date to, but
excluding, the next Interest Payment Date, provided that the first Interest Period in
respect of a Note will be deemed to be a period from and including the Issue Date, to but
excluding 31 March 2010.

Interest Rate means, in respect of a Note (but subject to Condition 3.5), 8.0% per annum.

 

9

 

subscription
agreement for convertible redeemable notes

Issue Date means, in relation to the Notes, the date on which the Notes are issued to
Agria.

Liquidation means, in relation to PGW, either:

	 	(a)	 	the process of liquidation provided for in Part XVI of the Companies Act; or
	 
	 	(b)	 	any analogous procedure following which PGW will cease to validly exist, or be
duly incorporated, except for the purposes of, and followed by, a reconstruction or an
amalgamation (not including or arising out of insolvency) of PGW provided that, upon
such reconstruction or amalgamation, the successor to PGW assumes the obligations of
PGW under the terms of the Notes and Agria has approved that form of the restructuring
or amalgamation (but only as if Agria had been entitled to exercise that number of
votes, in respect of the restructuring or amalgamation, as it would have been entitled
to exercise if the Notes had converted to Ordinary Shares at the Conversion Ratio
immediately prior to such vote being taken); or
	 
	 	(c)	 	its becoming subject to statutory management under the Corporations
(Investigation and Management) Act 1989.

Liquidation Amount means, in respect of any Note, the Principal Amount of that Note together
with all Unpaid Interest

Ordinary Shares means ordinary shares in PGW of the class on issue at the Issue Date, or
the shares which result if such ordinary shares in PGW are, at any time, subdivided,
consolidated or reclassified after the Issue Date and, where issued or to be issued on
Conversion of Notes, shall mean such Ordinary Shares credited as fully paid.

PGW Finance means PGG Wrightson Finance Limited.

PGWF Ordinary Shares means ordinary shares in PGW Finance.

Preference Shares means the preference shares to be issued, one day after the Issue Date, by
PGW Finance to PGW in accordance with the terms of Schedule 2.

Redemption Date has the meaning set out in Condition 3.1(d).

Reset Date means 31 December 2011 (the First Reset Date) and, if Condition 3.5 applies, at
two yearly intervals thereafter (being respectively the Second Reset Date, the Third Reset
Date and so on).

Reset Notice has the meaning given to that term in Condition 3.5.

Restrictive Period means the period of 18 months commencing on the Issue Date.

 

10

 

subscription
agreement for convertible redeemable notes

Senior Creditors means all creditors of PGW in relation to indebtedness (including, without
limitation, the lenders from time to time party to the Senior Facilities Agreement and South
Canterbury Finance Limited), and for the purpose of these
Conditions, includes holders of securities which are expressed to rank ahead of Ordinary
Shares in PGW, other than:

	 	(a)	 	indebtedness owed by PGW to Agria in respect of Notes; and
	 
	 	(b)	 	obligations which are expressed to be pari passu with, or subordinate to, the
obligations of PGW under or in relation to the Notes.

Senior Facilities Agreement means the senior facilities agreement dated 24 April 2009 (as
amended and restated from time to time) made between PGW and ANZ National Bank Limited (as
agent) and others.

Subscription Agreement means the subscription agreement entered into by PGW and Agria
pursuant to which the Notes are issued to Agria.

Suspended Interest means any interest which is suspended, or deemed to be suspended, in
accordance with Condition 3.2.

Swap Rate means on any Reset Date the rate per annum expressed as a percentage yield basis
and rounded up to the nearest two decimal places which is determined to be:

	 	(a)	 	the average of the bid and offered swap rate displayed at or about 11.00am on
the relevant date on page FISSWAP (or any successor page) quoted by Reuters for an
interest rate swap with a two year term, or where such a rate is not quoted, the
average of the linear interpolations of the closest quoted swap rates straddling the
next Reset Date; or
	 
	 	(b)	 	if a rate is unable to be determined in accordance with paragraph (a) above,
the average (rounded if necessary to the nearest two decimal places) of the mean bid
and offered swap rates quoted by each of the ANZ National Bank Limited, Westpac New
Zealand Limited and Bank of New Zealand at or about 11.00am on the relevant Reset Date
for an interest rate swap with a term equal to two years or, if any two of the banks
referred to in this paragraph (b) are not quoting a two year rate, the nearest
practicable equivalent, as determined by PGW, acting reasonably.

Take-over Offer means an offer or offers for Ordinary Shares made to holders of Ordinary
Shares generally, or any scheme of arrangement having a similar effect.

Transfer Redemption Date has the meaning given to that term in Condition 3.1(c).

Unpaid Interest means, on any date, and in respect of any Note, all interest which was not
paid on its due date and remains unpaid (and includes Suspended Interest which remains
unpaid).

 

11

 

subscription
agreement for convertible redeemable notes

	1.2	 	Construction
	 
	(a)	 	Words importing any gender include the other genders. Words importing the singular include
the plural and vice versa.
	 
	(b)	 	References to Schedules are to schedules of the Subscription Agreement.
	 
	(c)	 	Headings will be ignored in construing these Conditions.
	 
	(d)	 	Where any payment to be made or thing to be done under these Conditions is due to be paid or
done on a day which is not a Business Day, the date for such payment to be made or thing to be
done shall be the next succeeding Business Day.
	 
	(e)	 	A reference to a party to these Conditions is a reference to its successors and permitted
assigns.
	 
	2	 	STATUS AND SUBORDINATION OF THE NOTES
	 
	2.1	 	Status
	 
	 	 	The Notes constitute unsecured subordinated obligations of PGW and rank pari passu and
without priority or preference among themselves and shall be repayable in cash on the
occurrence of any of the events set out in paragraph (a) (but excluding voluntary
administration) of the definition of Commencement of Liquidation.
	 
	2.2	 	Subordination
	 
	 	 	The obligations of PGW to Agria under, and the rights of Agria against PGW in respect of,
the Principal Amount of, and Accrued Interest and Unpaid Interest on, the Notes are
subordinated to the claims of Senior Creditors of PGW in that in and upon and from the
Commencement of Liquidation the claims of Agria against PGW under and in respect of the
Notes:

	 	(a)	 	Claims of Senior Creditors: are subordinated in point of priority and right
of payment to, and rank behind, the claims of the Senior Creditors;
	 
	 	(b)	 	Limited to Liquidation Amount: are limited to the Liquidation Amount; and
	 
	 	(c)	 	Ahead of holders of Ordinary Shares: rank in priority to holders of Ordinary
Shares for the Liquidation Amount.

In this regard, Agria agrees that:

	 	(d)	 	in accordance with section 313(3) of the Companies Act, it is accepting a lower
priority in respect of the Notes than that which they would otherwise have under
section 313 of the Companies Act; and
	 
	 	(e)	 	nothing in section 313 of the Companies Act will prevent this Agreement from
having effect in accordance with its terms.

 

12

 

subscription
agreement for convertible redeemable notes

	2.3	 	Turnover on Commencement of Liquidation

	 	 	If Commencement of Liquidation has occurred, Agria covenants in favour of the Senior
Creditors that it must:

	 	(a)	 	hold any payment or distribution in cash or in kind (including any shares
transferred to it in discharge of any Note and including any amount recovered by way of
set-off or combination) received or receivable by it on and from Commencement of
Liquidation in respect of any Note from PGW or any of its subsidiaries in trust for the
Senior Creditors to whom amounts are due and owing;
	 
	 	(b)	 	promptly pay and transfer any such payment or distribution to;

	 
	 	 	 	the trustee in bankruptcy, liquidator, official assignee or other person distributing
the assets of PGW or their proceeds.

	2.4	 	Waiver of defences

The subordination in these Conditions and the obligations of Agria under these Conditions
will not be affected by any act, omission, matter or thing which, but for this provision,
would reduce, release or prejudice the subordination of any of those obligations.

	3	 	INTEREST
	 
	3.1	 	Interest Rate and calculation of interest
	 
	 	 	Interest will be calculated on the Principal Amount of a Note at the Interest Rate and will
accrue daily from the Issue Date (subject to Condition 3.2). Interest will cease to accrue
on each Note on the earliest of:

	 	(a)	 	the date upon which it is converted into Ordinary Shares (being the Conversion
Date);
	 
	 	(b)	 	the date on which it is redeemed or purchased for cash by PGW or any wholly
owned subsidiary of PGW (Cash Redemption Date);
	 
	 	(c)	 	the date on which it is redeemed by the transfer of PGWF Ordinary Shares (the
Transfer Redemption Date); and
	 
	 	(d)	 	in the event of Liquidation, the date on which the Note is redeemed by payment
of the Liquidation Amount (Redemption Date).

	3.2	 	Interest and Unpaid Interest
	 
	(a)	 	Accrued Interest and suspension of interest

	 	 	Interest will accrue on a daily basis on the Notes during each Interest Period and, together
with any Unpaid Interest, is payable on the Interest Payment Date falling at the end of that
Interest Period. The Board may elect to suspend payment of any interest or Unpaid Interest
or any part of such interest (any such interest so suspended being Suspended Interest) on
the relevant Interest Payment Date at its sole discretion at any time. Any interest which
is unpaid for any reason on any
Interest Payment Date is deemed to be Suspended Interest for the purposes of these
Conditions, whether or not the Board has elected to suspend the same.

 

13

 

subscription
agreement for convertible redeemable notes

	(b)	 	Payment of part only of Unpaid Interest
	 
	 	 	PGW may, at its option and upon giving not less than five Business Days’ notice to Agria,
pay all or part of any Unpaid Interest which, if part only, must be paid on a pro rata basis
across all Notes, but so that no Unpaid Interest relating to any Interest Period may be paid
before the Unpaid Interest relating to any earlier Interest Period has been paid.
	 
	(c)	 	Notice to Agria
	 
	 	 	PGW will promptly notify Agria not later than 10 Business Days before an Interest Payment
Date if PGW will not make a payment of interest on the Notes when due in accordance with
Condition 3.2(a), including if it intends to suspend payment of any interest in accordance
with that Condition. If interest is suspended or deemed to be suspended in accordance with
this Condition 3.2:

	 	(i)	 	PGW is not obliged to pay such interest on the relevant Interest Payment Date;
	 
	 	(ii)	 	non-payment of interest on that Interest Payment Date does not constitute a
default by PGW for any purpose and does not entitle Agria to default interest; and
	 
	 	(iii)	 	the non-payment of interest on any Interest Payment Date will not give rise to
any right to accelerate payment of any amount due under a Note. For the avoidance of
doubt, Agria has no right to accelerate payment of any amount due under a Note
(including, without limitation, any amount payable on redemption thereof) for any
reason other than as expressly provided for in these Conditions.

	(d)	 	No dividends etc

At any time while there is Suspended Interest (deemed or otherwise), PGW will not declare or
pay any dividend or make any other distribution (as that term is defined in the Companies
Act 1993) on any of its ordinary share capital or pay any interest or other payments on
other indebtedness or share capital which ranks equally with or is subordinate to the Notes.
Once payment of interest on the Notes has been resumed, PGW may not declare or pay any
dividend or make a distribution on its ordinary share capital or pay interest or other
payments on other equal ranking or subordinate indebtedness for a period of 12 months
commencing on the Interest Payment Date on which the payment of interest is resumed, unless
all Unpaid Interest is paid (in which case the restriction on such dividends, distributions
or other payments shall immediately be at an end).

	3.3	 	Payments

Each payment to Agria will be made on the due date in cleared funds to such bank account as
Agria may notify to PGW from time to time.

 

14

 

subscription
agreement for convertible redeemable notes

	3.4	 	Withholding tax
	 
	(a)	 	Deduction for withholding
	 
	 	 	Subject to Condition 3.4(b), all payments or credits to, or to the account of, Agria
(including payments of, and credits in respect of, interest) will be made net of any tax in
respect thereof required by law to be withheld, deducted or paid by PGW, except to the
extent that PGW is satisfied that Agria is exempt from any such tax or is a person in
respect of whom any such withholding, deduction or payment is not required to be made.
Agria must provide PGW with such evidence as PGW may from time to time require to satisfy
itself in respect of the validity of that claim.
	 
	(b)	 	Approved issuer levy
	 
	 	 	PGW shall:

	 	(i)	 	maintain its status as an “approved issuer” (as defined in section YA1 of the
Income Tax Act 2007) and ensure the Notes are registered with the Commissioner of
Inland Revenue under section 86H of the Stamp and Cheque Duties Act 1971; and
	 
	 	(ii)	 	to the extent required, make all payments of approved issuer levy (as defined
in section 86F of the Stamp and Cheque Duties Act 1971) in respect of all interest paid
to, or for the account of, Agria under the Notes in accordance with section 86K of that
Act.

Where Agria instructs PGW to pay any levy or make any other payment in lieu of any
withholding or other tax otherwise required by law to be deducted or withheld and that
payment has been made by PGW to the Commissioner of Inland Revenue, and the balance of the
amount payable has been paid to Agria, the full amount payable to Agria shall be deemed to
have been duly paid and satisfied by PGW.

	(c)	 	Taxation indemnity from Agria
	 
	 	 	If, in relation to any Note, PGW becomes liable to make any payment of or on account of tax
payable by Agria or tax payable in relation to any Notes (other than in respect of the
approved issuer levy or non resident withholding tax, in each case, on interest on the
Notes), in each case where such liability arises solely from any default, failure or
omission on the part of Agria or any agent of Agria, Agria hereby indemnifies PGW in respect
of any such liability, and any moneys paid by PGW in respect of any such liability may be
recovered by PGW by action against Agria and its successors and permitted assigns (as the
case may be) as a debt due to PGW. Nothing in this Condition prejudices or affects any
other right or remedy of PGW.
	 
	3.5	 	Interest Rate Resetting
	 
	 	 	If the Notes are not converted or redeemed prior to or as at a Reset Date (whether or not an
Election Notice has been given) then the Interest Rate on the Notes shall, with effect from
the relevant Reset Date, be reset to be the aggregate of:

	 	(a)	 	in respect of the period commencing on the First Reset Date (31 December 2011)
and ending on or prior to the Second Reset Date (31 December 2013), a margin of 550 bps
and the Swap Rate calculated as at the First Reset Date;

 

15

 

subscription
agreement for convertible redeemable notes

	 	(b)	 	in respect of the period commencing on the Second Reset Date (31 December 2013)
and ending on or prior to the Third Reset Date (31 December 2015), a margin of 650 bps
and the Swap Rate calculated as at the Second Reset Date; and
	 
	 	(c)	 	thereafter, in respect of each two year period, a margin of 650 bps and the
Swap Rate calculated as at the Reset Date at the commencement of that two year period.

PGW shall give notice to Agria (a Reset Notice), on each Reset Date, promptly on
determination of the Interest Rate for the two year period commencing on that Reset Date
together with evidence as to the determination of that rate.

The Notes will remain outstanding on and subject to these Conditions, subject to the
Interest Rate having been reset in accordance with this Condition 3.5.

	4	 	CONVERSION AND PGW’S OPTION TO REDEEM FOR CASH OR BY TRANSFER OF PGWF ORDINARY SHARES
	 
	4.1	 	Election Notice and right of Noteholder to make election

At any time after the expiry of the Restrictive Period (unless Agria agrees in writing
otherwise), PGW may at its sole discretion:

	 	(a)	 	give written notice to Agria that PGW has elected to convert all (but not some)
of the Notes into Ordinary Shares, in which case Condition 4.3 will apply; or
	 
	 	(b)	 	give written notice to Agria that PGW has elected to redeem all (but not some)
of the Notes by (subject to Condition 4.2) either transferring PGWF Ordinary Shares to
Agria, in which case Condition 4.4 will apply, or by redeeming the Notes in cash, or by
purchasing the Notes (or procuring their purchase by a subsidiary of PGW), in which
cases Condition 4.5 will apply,

(any such notice being an Election Notice).

	4.2	 	Election by Agria

If PGW issues an Election Notice to Agria in accordance with Condition 4.1(b), Agria may,
within 30 Business Days of receipt of the Election Notice, give written notice (an Agria
Election Notice) to PGW that it wishes to have the Notes the subject of the Election Notice
redeemed either:

	 	(a)	 	by the transfer of PGWF Ordinary Shares in accordance with Condition 4.4; or
	 
	 	(b)	 	by payment in cash in accordance with Condition 4.5,

in which case the Agria Election Notice will prevail over the Election Notice in respect of
those Notes to be so redeemed. For the avoidance of doubt, Agria may not issue an Agria
Election Notice if it has received an Election Notice pursuant to Condition 4.1(a). During
the period from the issue of an Election Notice under Condition 4.1(b) until the date of the
Agria Election Notice PGW shall procure that
(subject to compliance by PGW with any applicable New Zealand legislation which would
prohibit or place restrictions on such disclosure) Agria is given full access to all
financial and other information in relation to PGWF as may be reasonably required in order
for Agria to make its election.

 

16

 

subscription
agreement for convertible redeemable notes

	4.3	 	Conversion
	 
	(a)	 	Issue of Shares on Conversion

If PGW has given an Election Notice in accordance with Condition 4.1(a):

	 	(i)	 	Agria will immediately take all reasonable steps to seek all such regulatory
approvals and consents as are required for it to become the holder of the Ordinary
Shares on conversion (and will keep PGW fully informed of the progress being made in
respect of obtaining the same, and will provide PGW with copies of all relevant
applications and correspondence); and
	 
	 	(ii)	 	PGW will immediately take all reasonable steps, and obtain all such consents
(which include convening a meeting of the holders of the Ordinary Shares for their
approval to the issue of Ordinary Shares on conversion, and obtaining all regulatory
approvals (if any) and other contractual consents) as are necessary to effect the issue
of Ordinary Shares to Agria in accordance with this Condition 4.3 (and will keep Agria
fully informed of the progress being made in respect of obtaining the same, and will
provide Agria with copies of any relevant documentation).

	(b)	 	Shares issued on Conversion
	 
	 	 	Subject to adjustment pursuant to Condition 5, the relevant Notes will be converted:

	 	(i)	 	on the date (the Conversion Date) agreed by the parties or, if earlier,
three Business Days after the date on which PGW and Agria have obtained all necessary
shareholder, regulatory and other contractual approvals and consents for the issue of
such shares to Agria; and
	 
	 	(ii)	 	into Ordinary Shares by applying the Conversion Ratio, and PGW shall issue to
Agria on the Conversion Date that number of Ordinary Shares required to be issued as a
result of that ratio.

Fractional entitlements shall be disregarded for the purposes of determining Agria’s
entitlement to Ordinary Shares.

	(c)	 	Conversion to be Discharge
	 
	 	 	The issue of Ordinary Shares in accordance with this Condition 4.3 shall be, and shall be
accepted by Agria, in full satisfaction of PGW’s liability to Agria in respect of the
Principal Amount, and Unpaid Interest on the relevant Notes.
	 
	(d)	 	Ranking of Ordinary Shares
	 
	 	 	Ordinary Shares allotted to Agria upon conversion shall rank pari passu in all respects with
all the other issued Ordinary Shares, except that (other than for any entitlement arising
under Condition 5) they will not rank for any dividends or other distributions declared,
paid or made by PGW to holders of Ordinary Shares prior to the Conversion Date.

 

17

 

subscription
agreement for convertible redeemable notes

	(e)	 	Approvals
	 
	 	 	If any shareholder or regulatory approval or other consent is not obtained (by PGW or Agria,
as the case may be) for the issue of the Ordinary Shares to Agria on conversion, then:

	 	(i)	 	the obligation to convert the Notes shall be immediately cancelled; and
	 
	 	(ii)	 	PGW shall be entitled (subject to compliance, where applicable, with the
requirements of Condition 4.4) to exercise one of the other options available to it
under Condition 4.1(b), or not exercise any option.

	4.4	 	Redemption by transfer of PGWF Ordinary Shares

If PGW has given an Election Notice in accordance with Condition 4.1(b), and Agria has given
an Agria Election Notice requiring the transfer to it of PGWF Ordinary Shares:

	 	(a)	 	Agria will immediately take all reasonable steps to obtain all such regulatory
approvals and consents as are required for it to become the holder of the PGWF Ordinary
Shares on redemption (and will keep PGW fully informed of the progress being made in
respect of obtaining the same, and will provide PGW with copies of all relevant
applications and correspondence);
	 
	 	(b)	 	PGW will immediately take all reasonable steps as are required to convene a
meeting of the holders of the Ordinary Shares to vote on the proposed transfer of the
PGWF Ordinary Shares to Agria in accordance with this Condition 4.4, and will take all
reasonable steps to seek all other approvals and consents as may be required to effect
such transfer (and will in each case keep Agria fully informed of the progress being
made in respect of obtaining the same, and will provide Agria with copies of any
relevant documentation).
	 
	 	(c)	 	PGW will provide to Agria details of the number of PGWF Ordinary Shares to be
transferred to Agria as are arrived at by applying the Exchange Ratio (Redemption PGWF
Ordinary Shares), together with evidence of the calculation of that number as
reasonably required by Agria;
	 
	 	(d)	 	Subject to Agria having executed the documentation contemplated by clause 6,
PGW will transfer to Agria, on the date (Transfer Redemption Date) agreed by the
parties or, if earlier, three Business Days after Agria and PGW have obtained the
consents and approvals referred to in Conditions 4.4(a) and (b), clear and unencumbered
title to all those Redemption PGWF Ordinary Shares (credited as fully paid), and will
execute all such documentation as is required to effect such transfer; and
	 
	 	(e)	 	PGW will pay to Agria, on the Transfer Redemption Date, an amount calculated as
follows:

	 	(i)	 	if the Transfer Redemption Date occurs on or before 31 December
2011, 2% of the Principal Amount of the relevant Notes to be redeemed by
transfer under this Condition; or

 

18

 

subscription agreement for convertible redeemable notes

	 	(ii)	 	if the Transfer Redemption Date occurs between 1 January 2012 and
on or before 31 December 2013, 4% of the Principal Amount of the relevant Notes
to be redeemed by transfer under this Condition; or
	 
	 	(iii)	 	if the Transfer Redemption Date occurs after 31 December 2013,
the aggregate of the amount referred to in Condition 4.4(e)(ii) and an
additional 2% of the Principal Amount of the relevant Notes for each subsequent
Reset Date after 31 December 2013,

such that the transfer of those Redemption PGWF Ordinary Shares to Agria in accordance with
this Condition 4.4 shall be, and shall be accepted by Agria (with payment of the amount
referred to in Condition 4.4(d)), in full satisfaction of PGW’s liability to Agria in
respect of all amounts owing on of the relevant Notes.

	4.5	 	Redemption or Purchase for cash
	 
	(a)	 	If PGW has given an Election Notice in accordance with Condition 4.1(b), and Agria has given
an Agria Election Notice requiring the redemption of the relevant Notes by cash, PGW shall
redeem or purchase (or procure the purchase of) the relevant Notes for cash on a date
specified in the Agria Election Notice (Cash Redemption Date) being not less than 30 Business
Days from the date of such Agria Election Notice, and such redemption or purchase for cash
will be at the price calculated in accordance with Condition 4.5(b).
	 
	(b)	 	For the purposes of Condition 4.5(a), the redemption price or purchase price payable for the
relevant Notes will be the amount equal to the aggregate of:

	 	(i)	 	the Principal Amount of the relevant Notes to be redeemed or purchased; and

	 	(ii)	 	(A) if the Cash Redemption Date occurs on or before 31 December 2011, 2% of the
Principal Amount of the relevant Notes to be redeemed or purchased; or

	 	(B)	 	if the Cash Redemption Date occurs between 1 January 2012 and on
or before 31 December 2013, 4% of the Principal Amount of the relevant Notes to
be redeemed or purchased; or
	 
	 	(C)	 	if the Cash Redemption Date occurs after 31 December 2013, the
aggregate of the amount referred to in Condition 4.5(b)(ii)(B) and an additional
2% of the Principal Amount of the relevant Notes, for each subsequent Reset Date
after 31 December 2013.

By way of example, if the Notes are redeemed under Condition 4.4 or this
Condition 4.5 on 31 December 2015, an additional 6% of the Principal Amount is
payable; if redeemed on 31 December 2017, an additional 8% of the Principal Amount is
payable, and so on.

 

19

 

subscription agreement for convertible redeemable notes

	4.6	 	Failure to obtain Approvals

If either PGW or Agria is unable to obtain the approvals and consents referred to in
Conditions 4.4(a) or 4.4(b) by the date which is three months after the Agria Election
Notice then:

	 	(a)	 	the election made by Agria in the Agria Election Notice to have the Notes
redeemed by the transfer of PGWF Ordinary Shares is immediately cancelled; and
	 
	 	(b)	 	Agria may give written notice (Agria Second Notice) to PGW electing to have the
Notes the subject of the Agria Election Notice either:

	 	(i)	 	redeemed in cash, in which case PGW shall pay to Agria the amount
calculated in accordance with Condition 4.5 not later than 30 Business Days
after the date of the Agria Second Notice; or
	 
	 	(ii)	 	redeemed by payment to Agria, in respect of each Note, of the
Cash Equivalent Value, in which case PGW shall pay to Agria the aggregate Cash
Equivalent Value not later than 30 Business Days after determination of the Cash
Equivalent Value.

	 	(c)	 	For the purposes of this Condition 4.6, the Cash Equivalent Value shall, in
respect of each Note, be calculated as at the date of the Agria Election Notice by
applying the following formula:

	 	 	 	 	 
	 

	 	Cash Equivalent Value =
	 	NTA per PGWF Ordinary Share x the number of
PGWF Ordinary Shares which would have been exchanged for each Note on
application of the Exchange Ratio, had that exchange occurred on the date of the
Agria Election Notice,

where NTA per PGWF Ordinary Share is equal to the total tangible assets of PGW
Finance less the total liabilities of PGW Finance (provided that, for the purposes of
this calculation, the computer software and the future income tax benefits arising
from tax provisioning of PGW Finance shall be deemed to be included as tangible
assets), divided by the number of PGWF Ordinary Shares on issue at that time, as
determined by an independent person (experienced in valuations of this nature)
appointed by the Board for that purpose.

	4.7	 	Take-over

If a Take-over Offer is made to the holders of all the Ordinary Shares, PGW shall promptly
notify Agria accordingly. If, as a result of the Take-over Offer, an acquisition notice (as
that term is defined in Rule 54 of the Takeovers Code) is issued by the offeror, the Notes
must be redeemed by Agria receiving, from the offeror (which payment PGW undertakes to
procure) not later than five Business Days after the date of the acquisition notice, the
consideration to which Agria would have been entitled had the Notes been converted into
Ordinary Shares immediately prior to the acquisition notice having been issued.

 

20

 

subscription agreement for convertible redeemable notes

	4.8	 	PGW Shareholder Meetings
	 
	 	 	For the purposes of this Condition 4, any reference to PGW requiring the approval of the
holders of its Ordinary Shares shall be a reference to those shareholders passing an
ordinary resolution to vote on the issue of the Ordinary Shares (on conversion) or transfer
of the PGWF Ordinary Shares (on redemption), as the case may be. At any such meeting in
respect of any such resolution, neither Agria nor its Associates (as defined in the
Takeovers Code) or Associated Persons (as defined in the Listing Rules) shall be entitled to
vote in favour of that resolution.
	 
	4.9	 	Sale of Controlling Interest in PGW Finance
	 
	 	 	If at any time PGW sells a controlling interest in PGW Finance, it will review the
options available to it as to whether or not to issue an Election Notice in accordance
with Condition 4.1 (although nothing in this Condition 4.9 obliges it to issue an
Election Notice).
	 
	4.10	 	Share register
	 
	 	 	All Ordinary Shares issued on the conversion of Notes will be validly issued and be entered
on the Ordinary Share register of PGW.
	 
	4.11	 	Surrender of Certificate on Conversion or Transfer
	 
	(a)	 	Conversion into Ordinary Shares and new certificates
	 
	 	 	Agria must, as a condition precedent to either the issue of Ordinary Shares on the
conversion of any Notes, or the transfer of the PGWF Ordinary Shares by way of redemption of
any Notes, surrender the Certificate in respect of such Notes to PGW.
	 
	(b)	 	Purchase or redemption in cash
	 
	 	 	Agria must immediately surrender to PGW the Certificate in respect of any Notes to be
purchased or redeemed in cash.
	 
	4.12	 	Cancellation on conversion, redemption or purchase
	 
	 	 	Each Note which is converted into an Ordinary Share, or redeemed by the transfer of the
Redemption PGWF Ordinary Shares, or purchased or redeemed in cash, in each case in
accordance with these Conditions, is and will be deemed to be cancelled, and PGW will have
no further liabilities or obligations in respect of that Note or, once all Notes have been
converted, redeemed or purchased, as the case may be, Agria.
	 
	4.13	 	Voting
	 
	 	 	The Notes do not confer any voting rights on Agria other than those rights conferred on it
in these Conditions or by law as an unsecured creditor of PGW.
	 
	5	 	CONVERSION RATIO ADJUSTMENTS
	 
	5.1	 	Bonus Issues
	 
	 	 	If, prior to Conversion of the Notes, PGW shall make to the holders of ordinary shares any
non taxable issue (a Bonus Issue) of shares, notes, debentures or other instruments or
obligations (Bonus Instruments) by way of capitalisation of profits or reserves , then the
Conversion Ratio shall be adjusted such that there shall, upon conversion of the Notes (but
not otherwise), be also allotted to Agria credited as fully paid up the number of Bonus
Instruments to which Agria would have been entitled on the making of the Bonus Issue if each
Note had been converted to
Ordinary Shares at the Conversion Ratio immediately prior to the entitlement date for the
Bonus Issue in accordance with these Conditions, and as if Agria had been the holder of any
Bonus Instruments reserved for Agria on a previous Bonus Issue.

 

21

 

subscription agreement for convertible redeemable notes

	5.2	 	Consolidation or Subdivision
	 
	 	 	If Ordinary Shares are consolidated or subdivided, the number of Ordinary Shares to be
issued upon Conversion, and the number of Bonus Instruments received pursuant to a Bonus
Issue referred to in Condition 5.1, shall be adjusted in the manner necessary to reflect
that consolidation or subdivision.
	 
	5.3	 	Share Issues
	 
	 	 	Subject to compliance with the terms of Condition 5.1, PGW reserves the right, during the
term of the Notes, to issue Ordinary Shares to the holders of Ordinary Shares either for
cash or as a bonus distribution. If PGW makes any such cash issue, Agria shall (as a
function of holding Notes and without prejudice to Agria’s rights as a shareholder) be
entitled to participate in each such issue on the same basis as the holders of the Ordinary
Shares in PGW are entitled to participate (as if the Notes had converted to Ordinary Shares
in accordance with Condition 4.4 immediately prior to the cash issue), save that, if Agria
elects to participate in the relevant issue, Agria would be issued Notes (having an
aggregate Principal Amount equal to the total issue price of the Ordinary Shares which Agria
could have been issued had it held Ordinary Shares for the purposes of this Condition),
rather than Ordinary Shares, as a result of such participation.
	 
	5.4	 	Alterations to Capital Structure and Reconstructions Generally
	 
	 	 	Whenever any change or reconstruction in the share capital structure of PGW (other than a
change of the nature referred to in Conditions 5.1 or 5.2) takes place, PGW shall advise
details of that change or reconstruction to Agria. If Agria or PGW so requires, or if any
other event occurs which Agria considers (acting reasonably) should result in an adjustment
to the Conversion Ratio, the change in capital structure or event may be investigated by an
Independent Expert to determine whether an adjustment should be made to the basis for
conversion of Notes or whether it will prejudice the rights of Agria in any material
respect. Such an Independent Expert shall be appointed by the Board, independent of the
parties to this Agreement and having experience in making determinations of this nature.
PGW shall cause, at its cost, any Independent Expert to investigate the matter and to
determine whether any adjustment should be made to the basis for conversion, and if so, the
nature of the adjustment which should be made, or whether it will prejudice the rights of
Agria in any material respect.
	 
	 	 	A copy of the report of the Independent Expert shall be provided to Agria. If the
Independent Expert determines that an adjustment should be made, then PGW shall notify Agria
of that adjustment, and PGW shall, if it so requires, enter into a deed recording that
adjustment and amending the Conditions accordingly.
	 
	 	 	Any such adjustment to the conversion terms shall be determined in a manner which will not
result in any additional benefits being conferred on Agria which are not conferred on the
holder of Ordinary Shares or any additional benefit being conferred on or available to
holders of Ordinary Shares which are not conferred on Agria.

 

22

 

subscription agreement for convertible redeemable notes

	6	 	MISCELLANEOUS PROVISIONS
	 
	6.1	 	Amendments
	 
	 	 	No amendment to the Notes will be effective unless it is in writing and signed by Agria and PGW.
	 
	6.2	 	Assignment
	 
	 	 	Agria may not assign or transfer any of its rights (if any) or obligations under the Notes
without the prior written consent of PGW (which shall not be unreasonably withheld or
delayed only if the assignment or transfer is in respect of all (but not some) of the Notes)
and, if such consent is given, the proposed transferee must enter into documentation
acceptable to PGW whereby the transferee agrees to be bound by the Subscription Agreement
(including the requirement to obtain PGW’s prior written consent to any transfer or
assignment).
	 
	6.3	 	Severability
	 
	 	 	If any provision of the Notes is held by any court or administrative body of competent
jurisdiction to be illegal, void or unenforceable, such determination will not impair the
enforceability of the remaining provisions of the Notes.
	 
	6.4	 	Partial invalidity
	 
	 	 	The illegality, invalidity, or unenforceability of any provision of the Notes or any other
document under the law of any relevant jurisdiction will not impair the legality, validity
or enforceability of: (i) the other remaining provisions; or (ii) those provisions under the
law of any other jurisdiction.
	 
	6.5	 	Payments
	 
	 	 	Any payment to be made under this Agreement (and any reference to a
payment in cash) shall be made in cleared same day funds without
set-off or deduction, except as required by law.
	 
	6.6	 	Set-off
	 
	 	 	Subject to Condition 2 of these Conditions, PGW authorises Agria to apply, without prior
notice or demand, any amount owing or due by Agria to PGW in or towards satisfaction of any
of the indebtedness due by PGW to Agria and unpaid.
	 
	6.7	 	Contracts Privity Act
	 
	 	 	For the purposes of the Contracts (Privity) Act 1982, the provisions of these Conditions are
intended to confer a benefit upon the Senior Creditors and to be enforceable by the Senior
Creditors directly.
	 
	6.8	 	Governing law
	 
	 	 	The Notes will be governed by and construed in accordance with New Zealand law.

 

23

 

subscription agreement for convertible redeemable notes

SCHEDULE 2

PGG WRIGHTSON FINANCE — PREFERENCE SHARE TERM SHEET

	 	 	 
	Issuer

	 	PGW Finance Limited (PGWF)
	 
	 	 
	Holder

	 	PGG Wrightson Limited (PGW)
	 
	 	 
	Ordinary Share Dividend
Assumption

	 	Except for the ability to pay a cash dividend of $5m in FY10, no
dividends may be paid on ordinary shares by PGWF while the PSs are on
issue.
	 
	 	 
	Instrument

	 	Preference Share (PS)
	 
	 	 
	Principal Amount

	 	The NZD Equivalent of the Notes.
	 
	 	 
	PS Issued

	 	That number of PSs having an aggregate Principal Amount equivalent to
the Principal Amount of the Notes.
	 
	 	 
	Principal Amount per Share

	 	$1.00 
	 
	 	 
	Issue Date

	 	16 January 2010, one day after the Issue Date for the CRNs.
	 
	 	 
	Term to Maturity

	 	Mature on the date on which the CRNs in PGW are either converted or
redeemed by PGW, at which time the PSs mandatorily convert as outlined
below (i.e. the PSs could be perpetual if the CRNs never convert or
redeem).
	 
	 	 
	Dividend Rate

	 	8% per annum from the Issue Date to 31 December 2011 (gross dividend
including any imputation credits if available), provided that the
dividend rate is reset at two yearly intervals to match the interest
rate payable on the CRNs. Therefore, the dividend rate is as follows:
	 
	 	 
	 

	 	(a)  For the two year period from 31 December 2011 to 31 December 2013,
550 bps plus the two year Swap Rate as at 31 December 2011;

	 
	 	 
	 

	 	(b)  For the two year period from 31 December 2013 to 31 December 2015,
650 bps plus the two year Swap Rate as at 31 December 2013;

	 
	 	 
	 

	 	(c)  Thereafter, 650 bps plus the two year Swap Rate set at each two
yearly interval.

	 
	 	 
	Dividend Payable

	 	Payable in cash on 31 March, 30 June, 30 September and 31 December in
each year.

 

24

 

subscription agreement for convertible redeemable notes

	 	 	 
	Dividend Suspension

	 	PGWF directors can suspend PS dividend payments at their sole discretion.

	 
	 	 
	 
	 	In the event that the Net Tangible Assets of PGWF fall below $80m,
dividends on the PSs would be suspended until such time that the Net
Tangible Assets was restored above $80m (where the principal amount of
the PSs is included in the calculation of NTA).
	 
	 	 
	 

	 	Suspended dividends do not accumulate.
	 
	 	 
	Conversion

	 	PSs will mandatorily convert into ordinary shares in PGWF at maturity,
or upon the sale of a controlling interest in PGWF to a third party.
	 
	 	 
	Conversion Ratio

	 	Each PS converts into ordinary shares in PGWF on the basis of 0.47
ordinary shares in PGWF for every one PS held.
	 
	 	 
	 

	 	(Note that PGWF currently has 31.5 million ordinary shares on issue).
	 
	Transfer Terms

	 	The PSs may be transferred to another party with the prior consent of
PGWF, and with the transferee agreeing to similar terms.
	 
	 	 
	Dilution protection

	 	Standard anti-dilution protections apply to PS instrument.
	 
	 	 
	Listing

	 	Not listed.
	 
	 	 
	Ranking

	 	Ranks immediately above PGWF ordinary equity.
	 
	 	 
	 

	 	On liquidation or receivership of PGWF, the PSs rank ahead of PGWF
ordinary equity.
	 
	 	 
	Voting

	 	Limited to class voting rights and liquidation resolutions.

 

25

 

subscription agreement for convertible redeemable notes

SCHEDULE 3

FORM
OF CONVERTIBLE NOTE CERTIFICATE

PGG Wrightson Limited

	 	 	 
	Certificate No:

	 	1 
	 
	 	 
	Issue Date:
	 	 
	 
	 	 
	Principal Amount:
	 	 
	 
	 	 
	Noteholder:

	 	Agria Corporation
	 

	 	[Address]

PGG Wrightson Limited (PGW) certifies that the Noteholder is registered as the holder of [                    ]
unsecured subordinated convertible notes having the aggregate Principal Amount of [                    ] issued
by PGW pursuant to a Subscription Agreement dated [                    ] 2009.

Dated:

	 	 	 
	Signed by PGG Wrightson Limited by:

	 	 
	 
	 	 
	 	 	 
	Director
	 	 
	 
	 	 
	 	 	 
	Director
	 	 

 

26

 

subscription agreement for convertible redeemable notes

SCHEDULE 4

PRINCIPLES OF “DRAG ALONG” AND “TAG ALONG” OPTION

“DRAG ALONG” OPTION

	1	 	Where PGW wishes to transfer PGWF Ordinary Shares (the Offered Shares) to any person
(unrelated to PGW) (the Third Party) on arms length terms for cash consideration, and at a
fair value as determined by an independent expert appointed by PGW for that purpose, and the
PGWF Ordinary Shares being offered comprise a controlling interest in PGW Finance, then PGW
shall be entitled to transfer the Offered Shares to the Third Party and also have the option
(the Drag Along Option) to require Agria to transfer to the Third Party all the PGWF Ordinary
Shares held by Agria (or, at Agria’s election, a pro rata equivalent number of PGWF Ordinary
Shares, if PGW is not selling all of its PGWF Ordinary Shares) (Called Shares) in accordance
with the provisions of this paragraph. Where PGW proposes to transfer PGWF Ordinary Shares
under this paragraph, it must give a notice (Sale Notice) to Agria of its intention which must
specify the name of the Third Party and all material terms of the proposed transfer,
including the price to be paid for the PGWF Ordinary Shares. PGW will contemporaneously
provide copies of the relevant transaction documents with the Third Party.
	 
	2	 	A Sale Notice, once given, is irrevocable, but both the notice and all obligations under the
notice will lapse if, for any reason, PGW does not transfer the Offered Shares to the Third
Party.
	 
	3	 	Agria shall only be obliged to sell the Called Shares at the price per PGWF Ordinary Share to
be paid by the Third Party to PGW in respect of the Offered Shares (the Drag Along Price) and
otherwise on no less favourable terms applicable to such purchase.
	 
	4	 	Upon the exercise of the Drag Along Option in accordance with this paragraph, Agria shall be
bound to sell its Called Shares for the Drag Along Price and otherwise in accordance with this
paragraph, provided that if the Offered Shares are not sold to the Third Party as contemplated
by the Sale Notice, Agria shall not be bound to sell the Called Shares. Agria will not be
required to provide any warranties, indemnities or other protections of a similar nature in
connection with the sale of the Called Shares other than relating to title and its authority
to sell.
	 
	5	 	Completion of the sale of the Called Shares shall take place on the date specified for that
purpose by PGW to Agria or on such later date as is specified after obtaining any applicable
regulatory or shareholder approvals or other consents, except that the date so specified by
PGW shall be the same date as the date proposed for completion of the sale of the Offered
Shares, unless PGW and Agria agree otherwise.

 

27

 

subscription agreement for convertible redeemable notes

“TAG ALONG” OPTION

	1	 	Where PGW wishes to transfer PGWF Ordinary Shares (the Selling Shares) to any person
(unrelated to PGW) (the Third Party) (at a fair value as determined by an independent expert
appointed by PGW for that purpose), and the Selling Shares comprise a controlling interest in
PGW Finance, then Agria shall have the option (the Tag Along Option) to require PGW to cause
the Third Party to purchase all (or, at Agria’s election, a pro rata equivalent amount of PGWF
Ordinary Shares if PGW is not selling all of its PGWF Ordinary Shares) of Agria’s PGWF
Ordinary Shares.
	 
	2	 	Where PGW proposes to transfer PGWF Ordinary Shares under this paragraph, it must give a
notice (Selling Notice) to Agria of its intention which must specify the name of the Third
Party and all material terms of the proposed transfer, including the price to be paid for the
Selling Shares. PGW will contemporaneously provide copies of the relevant transaction
documents with the Third Party. The Tag Along Option may then be exercised by Agria within 20
Business Days after the date of the Selling Notice.
	 
	3	 	Agria may only exercise the Tag Along Option by giving notice to that effect (the Tag Along
Notice) to PGW specifying that PGW is required to cause to be purchased by the Third Party all
(or such pro rata entitlement) of Agria’s PGWF Ordinary Shares (the Tag Shares).
	 
	4	 	A Tag Along Notice, once given, is irrevocable, but both the notice and all obligations under
the notice will lapse if for any reason PGW does not transfer the Selling Shares to the Third
Party.
	 
	5	 	The purchase price for the Tag Shares shall be the price per PGWF Ordinary Share to be paid
by the Third Party to PGW in respect of the Selling Shares (the Tag Price) and otherwise on no
less favourable terms applicable to such purchase.. Agria will only be required to provide the
same warranties, indemnities or other protections of a similar nature in connection with the
sale of the Tag Shares as PGW is required to provide in connection with the sale of the
Selling Shares.
	 
	6	 	Upon the exercise of the Tag Along Option in accordance with this paragraph, PGW shall be
bound to take all reasonable steps in its capacity as a shareholder in PGW Finance to cause
the Tag Shares to be purchased by the Third Party or its nominee for the Tag Price and
otherwise in accordance with this paragraph.

 

28

 

subscription agreement for convertible redeemable notes

	7	 	If PGW is unable to cause the Third Party to buy the Tag Shares at the Tag Price (or at a
greater price) and otherwise in accordance with this paragraph, and to complete that purchase
in accordance with this paragraph, then PGW shall not be entitled to sell or otherwise
transfer any of the Selling Shares to the Third Party.
	 
	8	 	Completion of the purchase by the Third Party of the Selling Shares and the Tag Shares shall
take place on the date that is specified for that purpose by PGW to Agria or on such later
date as is specified after obtaining any applicable regulatory or shareholder approvals or
other consents, except that the date so specified by PGW shall be the same date as the date
proposed for completion of the sale of the Selling Shares, unless PGW and Agria agree
otherwise.

 

29

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00166-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00166-of-00352.parquet"}]]