----

----

| DELAWARE                             | 77-0313235               |
|--------------------------------------|--------------------------|
| (State      or other jurisdiction of | (I.R.S.      Employer    |
| incorporation      or organization)  | Identification      No.) |

| 550      South Hope Street, Suite 2850        |            |
|-----------------------------------------------|-----------------|
| Los      Angeles, California                  | 90071           |
| (Address      of principal executive offices) | (Zip      Code) |

----

----

----

| For      the Three and Six Months ended June 30, 2009                                                                   |   | Page  |
|-------------------------------------------------------------------------------------------------------------------------|--------|------------|
|                                                                                                                    |   |       |
|                                                                                                                    |   |       |
| PART      I – FINANCIAL INFORMATION                                                                               |   |       |
|                                                                                                                    |   |       |
| ITEM      1.  Financial Statements                                                                            |   |       |
|                                                                                                                    |   |       |
| Cadiz      Inc. Consolidated Financial Statements                                                                       |   |       |
|                                                                                                                    |   |       |
| Unaudited      Statements of Operations for the three months ended June 30, 2009 and      2008                          |   | 1     |
|                                                                                                                    |   |       |
| Unaudited      Statements of Operations for the six months ended June 30, 2009 and      2008                            |   | 2     |
|                                                                                                                    |   |       |
| Unaudited      Balance Sheets as of June 30, 2009 and December 31, 2008                                                 |   | 3     |
|                                                                                                                    |   |       |
| Unaudited      Statements of Cash Flows for the six months ended June 30, 2009 and      2008                            |   | 4     |
|                                                                                                                    |   |       |
| Unaudited      Statement of Stockholders’ Equity for the six months ended June 30,      2009                      |   | 5     |
|                                                                                                                    |   |       |
| Unaudited      Notes to the Consolidated Financial Statements                                                           |   | 6     |
|                                                                                                                    |   |       |
|                                                                                                                    |   |       |
| ITEM      2.  Management’s Discussion and Analysis of Financial Condition      and Results of Operation |   | 18         |
|                                                                                                                    |   |       |
| ITEM      3.  Quantitative and Qualitative Disclosures about Market      Risk                                 |   | 27    |
|                                                                                                                    |   |       |
| ITEM      4.  Controls and Procedures                                                                         |   | 27    |
|                                                                                                                    |   |       |
| PART      II – OTHER INFORMATION                                                                                  |   | 28    |

----

|                                                           |   | For      the Three Months |   |
|----------------------------------------------------------------|--------|---------------------------|--------|
|                                                           |   | Ended      June 30,       |   |
| ($      in thousands except per share data)                    |   | 2009                      |   |   | 2008 |   |
|                                                           |   |                      |   |
| Revenues                                                       |   | $                         | 19     |   |   | $ | 16 |   |
|                                                           |   |                      |   |   |   |   |   |   |
| Costs      and expenses:                                       |   |                      |   |   |   |   |   |   |
| Cost of sales                                                  |   |                      | -      |   |   |   | 4 |   |
| General and      administrative                                |   |                      | 3,179  |   |   |   | 2,568 |   |
| Depreciation                                                   |   |                      | 85     |   |   |   | 85 |   |
|                                                           |   |                      |   |   |   |   |   |   |
| Total      costs and expenses                                  |   |                      | 3,264  |   |   |   | 2,657 |   |
|                                                           |   |                      |   |   |   |   |   |   |
| Operating      loss                                            |   |                      | (3,245 | ) |   |   | (2,641 | ) |
|                                                           |   |                      |   |   |   |   |   |   |
| Other      income (expense)                                    |   |                      |   |   |   |   |   |   |
| Interest expense,    net                                       |   |                      | (1,140 | ) |   |   | (1,054 | ) |
|      Other      income (expense), net |   |                      | (1,140 | ) |   |   | (1,054 | ) |
|                                                           |   |                      |   |   |   |   |   |   |
| Loss      before income taxes                                  |   |                      | (4,385 | ) |   |   | (3,695 | ) |
| Income      tax provision                                      |   |                      | 1      |   |   |   | 3 |   |
|                                                           |   |                      |   |   |   |   |   |   |
| Net      loss                                                  |   | $                         | (4,386 | ) |   | $ | (3,698 | ) |
|                                                           |   |                      |   |   |   |   |   |   |
| Net      loss available to common stockholders                 |   | $                         | (4,386 | ) |   | $ | (3,698 | ) |
|                                                           |   |                      |   |   |   |   |   |   |
| Basic      and diluted net loss per common share               |   | $                         | (0.35  | ) |   | $ | (0.31 | ) |
|                                                           |   |                      |   |   |   |   |   |   |
| Basic      and diluted weighted average shares outstanding     |   |                      | 12,600 |   |   |   | 11,958 |   |
|                                                           |   |

----

|                                                       |   | For      the Six Months |   |
|------------------------------------------------------------|--------|-------------------------|--------|
|                                                       |   | Ended      June 30,     |   |
| ($      in thousands except per share data)                |   | 2009                    |   |   | 2008 |   |
|                                                       |   |                    |   |   |   |   |
|                                                       |   |                    |   |   |   |   |
|                                                       |   |                    |   |   |   |   |
| Revenues                                                   |   | $                       | 48     |   |   | $ | 33 |   |
|                                                       |   |                    |   |   |   |   |   |   |
| Costs      and expenses:                                   |   |                    |   |   |   |   |   |   |
| Cost of sales                                              |   |                    | 101    |   |   |   | 17 |   |
| General and      administrative                            |   |                    | 5,231  |   |   |   | 6,496 |   |
| Depreciation and      amortization                         |   |                    | 171    |   |   |   | 169 |   |
|                                                       |   |                    |   |   |   |   |   |   |
| Total      costs and expenses                              |   |                    | 5,503  |   |   |   | 6,682 |   |
|                                                       |   |                    |   |   |   |   |   |   |
| Operating      loss                                        |   |                    | (5,455 | ) |   |   | (6,649 | ) |
|                                                       |   |                    |   |   |   |   |   |   |
| Other      income (expense)                                |   |                    |   |   |   |   |   |   |
| Interest expense,    net                                   |   |                    | (2,324 | ) |   |   | (2,024 | ) |
|   Other income      (expense), net               |   |                    | (2,324 | ) |   |   | (2,024 | ) |
|                                                       |   |                    |   |   |   |   |   |   |
| Loss      before income taxes                              |   |                    | (7,779 | ) |   |   | (8,673 | ) |
| Income      tax provision                                  |   |                    | 2      |   |   |   | 4 |   |
|                                                       |   |                    |   |   |   |   |   |   |
| Net      loss                                              |   | $                       | (7,781 | ) |   | $ | (8,677 | ) |
|                                                       |   |                    |   |   |   |   |   |   |
| Net      loss available to common stockholders             |   | $                       | (7,781 | ) |   | $ | (8,677 | ) |
|                                                       |   |                    |   |   |   |   |   |   |
| Basic      and diluted net loss per common share           |   | $                       | (0.62  | ) |   | $ | (0.73 | ) |
|                                                       |   |                    |   |   |   |   |   |   |
| Basic      and diluted weighted average shares outstanding |   |                    | 12,528 |   |   |   | 11,957 |   |

----

|                                                                             |   | June      30, |     |   | December      31, |   |
|----------------------------------------------------------------------------------|--------|---------------|----------|--------|-------------------|--------|
| ($      in thousands)                                                            |   | 2009          |     |   | 2008              |   |
|                                                                             |   |          |     |   |              |   |
| ASSETS                                                                           |   |          |     |   |              |   |
|                                                                             |   |          |     |   |              |   |
| Current      assets:                                                             |   |          |     |   |              |   |
| Cash and cash      equivalents                                                   |   | $             | 1,167    |   |              | $      | 2,014 |   |   |
| Short-term      investments                                                      |   |          | 1,500    |   |              |   | 4,500 |   |   |
| Accounts    receivable                                                           |   |          | 70       |   |              |   | 66 |   |   |
| Prepaid expenses and      other                                                  |   |          | 761      |   |              |   | 507 |   |   |
|                                                                             |   |          |     |   |              |   |   |   |   |
| Total current    assets                                                          |   |          | 3,498    |   |              |   | 7,087 |   |   |
|                                                                             |   |          |     |   |              |   |   |   |   |
| Property,      plant, equipment and water programs, net                          |   |          | 35,680   |   |              |   | 35,784 |   |   |
| Goodwill                                                                         |   |          | 3,813    |   |              |   | 3,813 |   |   |
| Other      assets                                                                |   |          | 592      |   |              |   | 728 |   |   |
|                                                                             |   |          |     |   |              |   |   |   |   |
| Total Assets                                                                     |   | $             | 43,583   |   |              | $      | 47,412 |   |   |
|                                                                             |   |          |     |   |              |   |   |   |   |
| LIABILITIES      AND STOCKHOLDERS’ EQUITY                                  |   |          |     |   |              |   |   |   |   |
|                                                                             |   |          |     |   |              |   |   |   |   |
| Current      liabilities:                                                        |   |          |     |   |              |   |   |   |   |
| Accounts payable                                                                 |   | $             | 22       |   |              | $      | 247 |   |   |
| Accrued    liabilities                                                           |   |          | 1,207    |   |              |   | 775 |   |   |
| Current portion of long term      debt                                           |   |          | 24       |   |              |   | 9 |   |   |
|                                                                             |   |          |     |   |              |   |   |   |   |
| Total current      liabilities                                                   |   |          | 1,253    |   |              |   | 1,031 |   |   |
|                                                                             |   |          |     |   |              |   |   |   |   |
| Long-term      debt, net                                                         |   |          | 34,695   |   |              |   | 33,975 |   |   |
|                                                                             |   |          |     |   |              |   |   |   |   |
| Total Liabilities                                                                |   |          | 35,948   |   |              |   | 35,006 |   |   |
|                                                                             |   |          |     |   |              |   |   |   |   |
|                                                                             |   |          |     |   |              |   |   |   |   |
|                                                                             |   |          |     |   |              |   |   |   |   |
| Stockholders’      equity:                                                 |   |          |     |   |              |   |   |   |   |
| Common      stock - $.01 par value; 70,000,000 shares                            |   |          |     |   |              |   |   |   |   |
|   authorized;      shares issued and outstanding – 12,600,236 at |   |          |     |   |              |   |   |   |   |
|   June      30, 2009 and 12,453,210 at December 31, 2008               |   |          | 126      |   |              |   | 125 |   |   |
| Additional      paid-in capital                                                  |   |          | 266,542  |   |              |   | 263,533 |   |   |
| Accumulated      deficit                                                         |   |          | (259,033 | )      |              |   | (251,252 | )  |   |
| Total stockholders’      equity                                            |   |          | 7,635    |   |              |   | 12,406 |   |   |
|                                                                             |   |          |     |   |              |   |   |   |   |
| Total Liabilities and      Stockholders’ equity                            |   | $             | 43,583   |   |              | $      | 47,412 |   |   |

----

|                                                                                              |   | For      the Six Months |   |
|---------------------------------------------------------------------------------------------------|--------|-------------------------|--------|
|                                                                                              |   | Ended      June 30,     |   |
| ($      in thousands except per share data)                                                       |   | 2009                    |   |   | 2008 |   |
|                                                                                              |   |                    |   |   |   |   |
| Cash      flows from operating activities:                                                        |   |                    |   |   |   |   |
| Net lossAdjustments to reconcile net loss      to                                                 |   | $                       | (7,781 | ) |   | $ | (8,677 | ) |
| net cash used for operating      activities:                                                      |   |                    |   |   |   |   |   |   |
| Depreciation                                                                                      |   |                    | 171    |   |   |   | 169 |   |
| Amortization of debt discount      & issuance costs                                           |   |                    | 1,307  |   |   |   | 1,112 |   |
| Interest expense added to loan      principal                                                     |   |                    | 1,047  |   |   |   | 993 |   |
| Compensation charge for stock      awards and share options                                       |   |                    | 1,392  |   |   |   | 2,544 |   |
|         Changes      in operating assets and liabilities: |   |                    |   |   |   |   |   |   |
| Increase in accounts      receivable                                                              |   |                    | (4     | ) |   |   | (1 | ) |
| Increase in prepaid expenses and      other                                                       |   |                    | (157   | ) |   |   | (660 | ) |
|       Increase      (decrease) in accounts payable                  |   |                    | (225   | ) |   |   | 48 |   |
| Increase (decrease) in accrued      liabilities                                                   |   |                    | 432    |   |   |   | (103 | ) |
|  Net cash used for operating      activities                                                 |   |                    | (3,818 | ) |   |   | (4,575 | ) |
|                                                                                              |   |                    |   |   |   |   |   |   |
| Cash      flows from investing activities:                                                        |   |                    |   |   |   |   |   |   |
| Proceeds from sale of short-term      investments                                                 |   |                    | 3,000  |   |   |   | - |   |
| Additions to property, plant and      equipment                                                   |   |                    | (67    | ) |   |   | (77 | ) |
|       Other                                                         |   |                    | -      |   |   |   | (7 | ) |
|                                                                                              |   |                    |   |   |   |   |   |   |
| Net cash provided by (used in)      investing activities                                          |   |                    | 2,933  |   |   |   | (84 | ) |
|                                                                                              |   |                    |   |   |   |   |   |   |
| Cash      flows from financing activities:                                                        |   |                    |   |   |   |   |   |   |
| Proceeds from issuance of      long-term debt                                                     |   |                    | 47     |   |   |   | - |   |
| Principal payments on long-term      debt                                                         |   |                    | (9     | ) |   |   | (4 | ) |
|                                                                                              |   |                    |   |   |   |   |   |   |
| Net cash provided by (used in)      financing activities                                          |   |                    | 38     |   |   |   | (4 | ) |
|                                                                                              |   |                    |   |   |   |   |   |   |
| Net      decrease in cash and cash equivalents                                                    |   |                    | (847   | ) |   |   | (4,663 | ) |
|                                                                                              |   |                    |   |   |   |   |   |   |
| Cash      and cash equivalents, beginning of period                                               |   |                    | 2,014  |   |   |   | 8,921 |   |
|                                                                                              |   |                    |   |   |   |   |   |   |
| Cash      and cash equivalents, end of period                                                     |   | $                       | 1,167  |   |   | $ | 4,258 |   |

----

|                                         |   |         |       |   | Additional |   |   |        |   |   | Total               |   |
|----------------------------------------------|--------|--------------|------------|--------|------------|--------|--------|-------------|--------|--------|---------------------|--------|
|                                         |   | Common Stock |       |   | Paid-in    |   |   | Accumulated |   |   | Stockholders’ |   |
|                                         |   | Shares       |       |   | Amount     |   |   | Capital     |   |   | Deficit             |   |   | Equity |   |
|                                         |   |         |       |   |       |   |   |        |   |   |                |   |   |   |   |
|                                         |   |         |       |   |       |   |   |        |   |   |                |   |   |   |   |
|  Balance      as of December 31, 2008   |   |         | 12,453,210 |   |       | $      | 125    |        |   | $      | 263,533             |   |   | $ | (251,252 | ) |   | $ | 12,406 |   |
|                                         |   |         |       |   |       |   |   |        |   |   |                |   |   |   |   |   |   |   |   |   |
| Stock      awards                            |   |         | 147,026    |   |       |   | 1      |        |   |   | -                   |   |   |   | - |   |   |   | 1 |   |
|                                         |   |         |       |   |       |   |   |        |   |   |                |   |   |   |   |   |   |   |   |   |
| Convertible      term loan conversion option |   |         | -          |   |       |   | -      |        |   |   | 1,618               |   |   |   | - |   |   |   | 1,618 |   |
|                                         |   |         |       |   |       |   |   |        |   |   |                |   |   |   |   |   |   |   |   |   |
| Stock      based compensation expense   |   |         | -          |   |       |   | -      |        |   |   | 1,391               |   |   |   | - |   |   |   | 1,391 |   |
|                                         |   |         |       |   |       |   |   |        |   |   |                |   |   |   |   |   |   |   |   |   |
| Net      loss                                |   |         | -          |   |       |   | -      |        |   |   | -                   |   |   |   | (7,781 | ) |   |   | (7,781 | ) |
|                                         |   |         |       |   |       |   |   |        |   |   |                |   |   |   |   |   |   |   |   |   |
| Balance      as of June 30, 2009        |   |         | 12,600,236 |   |       | $      | 126    |        |   | $      | 266,542             |   |   | $ | (259,033 | ) |   | $ | 7,635 |   |

----

| •   | Level      1 - Quoted prices in active markets for identical assets or      liabilities.                                                                                                                                                                                                                                                                               |
|---------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •   | Level      2 - Inputs other than Level 1 that are observable, either directly or      indirectly, such as quoted prices for similar assets or liabilities;      quoted prices in markets that are not active; or other inputs that are      observable or can be corroborated by observable market data for      substantially the full term of the assets or  liabilities. |

| •   | Level      3 - Unobservable inputs that are supported by little or no market activity      and that are significant to the fair value of the assets or      liabilities. |
|---------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                    |   | June      30, |   |   | December      31, |   |
|-------------------------------------------------------------------------|--------|---------------|--------|--------|-------------------|--------|
|                                                                    |   | 2009          |   |   | 2008              |   |
|                                                                    |   |          |   |   |              |   |
| Land      and land improvements                                         |   | $             | 21,998 |   |              | $      | 21,998 |   |
| Water      programs                                                     |   |          | 14,274 |   |              |   | 14,274 |   |
| Buildings                                                               |   |          | 1,161  |   |              |   | 1,161 |   |
| Leasehold      improvements                                             |   |          | 570    |   |              |   | 570 |   |
| Furniture      and fixtures                                             |   |          | 413    |   |              |   | 407 |   |
| Machinery      and equipment                                            |   |          | 911    |   |              |   | 854 |   |
| Construction      in progress                                           |   |          | 4      |   |              |   | - |   |
|                                                                    |   |          | 39,331 |   |              |   | 39,264 |   |
|                                                                    |   |          |   |   |              |   |   |   |
|             Less accumulated depreciation |   |          | (3,651 | )      |              |   | (3,480 | ) |
|                                                                    |   |          |   |   |              |   |   |   |
|                                                                    |   | $             | 35,680 |   |              | $      | 35,784 |   |

|                                                                                                                                            |   | June      30, |   |   | December      31, |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|--------|--------|-------------------|--------|
|                                                                                                                                            |   | 2009          |   |   | 2008              |   |
|                                                                                                                                            |   |          |   |   |              |   |
| Zero      coupon secured convertible term loan due June 29, 2013.Interest      accruing at 5% per annum until June 29, 2009 and at 6%thereafter |   | $             | 42,324 |   |              | $      | 41,276 |   |
| Other      loans                                                                                                                                |   |          | 52     |   |              |   | 13 |   |
| Debt      discount, net of accumulated accretion                                                                                                |   |          | (7,657 | )      |              |   | (7,305 | ) |
|                                                                                                                                            |   |          | 34,719 |   |              |   | 33,984 |   |
|                                                                                                                                            |   |          |   |   |              |   |   |   |
| Less current    portion                                                                                                                         |   |          | 24     |   |              |   | 9 |   |
|                                                                                                                                            |   |          |   |   |              |   |   |   |
|                                                                                                                                            |   | $             | 34,695 |   |              | $      | 33,975 |   |

| 12      MonthsEnding      June 30, |   | (in      thousands) |   |
|------------------------------------|--------|---------------------|--------|
|                               |   |                |   |
| 2010                               |   |                | 24     |   |
| 2011                               |   |                | 16     |   |
| 2012                               |   |                | 12     |   |
| 2013                               |   |                | 42,324 |   |
|                               |   | $                   | 42,376 |   |

| ·   | Maturity      date is extended from June 29, 2011, to June 29,  2013; |
|--------------------|-----------------------------------------------------------------------|

| ·   | Interest      will continue to accrue at 6% per annum through maturity;    and |
|--------------------|--------------------------------------------------------------------------------|

| ·   | The      convert feature has been modified to allow up to $4.55 million of      principal to be converted into 650,000 shares of Cadiz common stock      (“Initial Convert Portion”) at a conversion price of $7 per share, and the      remaining principal and interest to be converted into shares of Cadiz      common stock at a conversion price of $35 per share.  If fully      converted at June 29, 2013, this would result in Cadiz common stock      being issued at an average convert price of $26 per share;    and |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The      Company now has the right at any time prior to June 29, 2013 to prepay the      loan's outstanding principal (other than as to the Initial Convert      Portion) plus all accrued interest in full without penalty, and may at the      same time prepay the Initial Convert Portion either in stock at a 110%      conversion premium or, at the election of the lenders, in cash with an      equal value (but not less than $4.55million). |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| -   | A      150,000 share award, that vests in three equal installments on January 1,      2008, January 1, 2009, and January 1, 2010.  100,000 shares have      been issued pursuant to this award as of January  2009. |
|---------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| -   | 800,000      of the shares were designated as Milestone – Based Deferred Stock, none of      which were ultimately issued.  The shares were allocated for      issuance subject to the satisfaction of certain milestone conditions      relating to the trading price of our common stock during the period      commencing March 13, 2007, and ending March 12, 2009.  The      milestone conditions were not satisfied by March 12, 2009, resulting in      the expiration of all 800,000shares. |
|---------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Risk      free interest rate         | 4.74%          |
|--------------------------------------|----------------|
| Current      stock price             | $19.74         |
| Expected      volatility             | 38.0%          |
| Expected      dividend yield         | 0.0%           |
| Weighted      average vesting period | 2.0      years |

|                                 | Investments      at Fair Value as of December 31, 2008 |   |
|--------------------------------------|--------------------------------------------------------|--------|
| (in      thousands)                  | Level      1                                           |   | Level      2 |   |   | Level      3 |   |   | Total |   |
|                                 |                                                   |   |   |   |   |   |   |   |   |   |
| Certificates      of deposit         |                                                   | $      | 4,500 |   |   | $ | - |   |   | $ | - |   |   | $ | 4,500 |   |
|                                 |                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      investments at fair value |                                                   | $      | 4,500 |   |   | $ | - |   |   | $ | - |   |   | $ | 4,500 |   |

|                                 | Investments      at Fair Value as of June 30, 2009 |   |
|--------------------------------------|----------------------------------------------------|--------|
| (in      thousands)                  | Level      1                                       |   | Level      2 |   |   | Level      3 |   |   | Total |   |
|                                 |                                               |   |   |   |   |   |   |   |   |   |
| Certificates      of deposit         |                                               | $      | 1,500 |   |   | $ | - |   |   | $ | - |   |   | $ | 1,500 |   |
|                                 |                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      investments at fair value |                                               | $      | 1,500 |   |   | $ | - |   |   | $ | - |   |   | $ | 1,500 |   |

|                                 | Three Months Ended  |   |
|--------------------------------------|--------------------------|--------|
|                                 | June 30,            |   |
|                                 | 2009                |   |   | 2008  |   |
|                                 |                     |   |   |   |   |
| Interest on outstanding      debt    |                     | $      | 531 |   |   | $ | 508 |   |
| Amortization of financing      costs |                     |   | 17 |   |   |   | 18 |   |
| Amortization of debt      discount   |                     |   | 605 |   |   |   | 556 |   |
| Interest income                      |                     |   | (13 | ) |   |   | (28 | ) |
|                                 |                     |   |   |   |   |   |   |   |
|                                 |                     | $      | 1,140 |   |   | $ | 1,054 |   |

|                                 | Six Months Ended  |   |
|--------------------------------------|------------------------|--------|
|                                 | June 30,          |   |
|                                 | 2009              |   |   | 2008  |   |
|                                 |                   |   |   |   |   |
| Interest on outstanding      debt    |                   | $      | 1,047 |   |   | $ | 993 |   |
| Amortization of financing      costs |                   |   | 39 |   |   |   | 36 |   |
| Amortization of debt      discount   |                   |   | 1,268 |   |   |   | 1,076 |   |
| Interest income                      |                   |   | (30 | ) |   |   | (81 | ) |
|                                 |                   |   |   |   |   |   |   |   |
|                                 |                   | $      | 2,324 |   |   | $ | 2,024 |   |

| ·   | Maturity      date is extended from June 29, 2011, to June 29,  2013; |
|--------------------|-----------------------------------------------------------------------|

| ·   | Interest      will continue to accrue at 6% per annum through maturity;    and |
|--------------------|--------------------------------------------------------------------------------|

| ·   | The      convert feature has been modified to allow up to $4.55 million of      principal to be converted into 650,000 shares of Cadiz common stock      (“Initial Convert Portion”) at a conversion price of $7 per share, and the      remaining principal and interest to be converted into shares of Cadiz      common stock at a conversion price of $35 per share.  If fully      converted at June 29, 2013, this would result in Cadiz common stock      being issued at an average convert price of $26 per share;    and |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | We      now have the right at any time prior to June 29, 2013 to prepay the loan's      outstanding principal (other than as to the Initial Convert Portion) plus      all accrued interest in full without penalty, and may at the same time      prepay the Initial Convert Portion either in stock at a 110% conversion      premium or, at the election of the lenders, in cash with an equal value      (but not less than $4.55 million). |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                            |   | Payments Due by Period |   |
|---------------------------------|--------|------------------------|--------|
| Contractual Obligations         |   | Total                  |   |   | 1 year or less |   |   | 2-3 years |   |   | 4-5 years |   |   | After 5 years |   |
| (in      thousands)        |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Long      term debt obligations |   | $                      | 42,376 |   |   | $ | 24 |   |   | $ | 28 |   |   | $ | 42,324 |   |   | $ | - |   |
| Interest      Expense           |   |                   | 11,563 |   |   |   | 1 |   |   |   | 1 |   |   |   | 11,561 |   |   |   | - |   |
| Operating      leases           |   |                   | 898    |   |   |   | 364 |   |   |   | 488 |   |   |   | 46 |   |   |   | - |   |
|                            |   | $                      | 54,837 |   |   | $ | 389 |   |   | $ | 517 |   |   | $ | 53,931 |   |   | $ | - |   |
|                            |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

|   | 10.1 | Amended      and Restated Employment Agreement Between Keith Brackpool and Cadiz Inc.      dated May 22, 2009. |
|--------|------|----------------------------------------------------------------------------------------------------------------|

|   | 10.2 | Employment      Agreement Between Timothy J. Shaheen and Cadiz Inc. dated May 22,      2009. |
|--------|------|----------------------------------------------------------------------------------------------|

|   | 31.1 | Certification      of Keith Brackpool, Chairman and Chief Executive Officer of Cadiz Inc.      pursuant to Section 302 of the Sarbanes-Oxley Act of  2002 |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 31.2 | Certification      of Timothy J. Shaheen, Chief Financial Officer and Secretary of Cadiz Inc.      pursuant to Section 302 of the Sarbanes-Oxley Act of  2002 |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 32.1 | Certification      of Keith Brackpool, Chairman and Chief Executive Officer of Cadiz Inc.      pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of      the Sarbanes-Oxley Act of 2002 |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 32.2 | Certification      of Timothy J. Shaheen, Chief Financial Officer and Secretary of Cadiz Inc.      pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of      the Sarbanes-Oxley Act of 2002 |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| By:  | /s/ Keith      Brackpool                                | August 10,  2009  |
|-----------|--------------------------------------------------------------|------------------------|
|      | Keith      Brackpool                                    | Date              |
|      | Chairman of the      Board and Chief Executive Officer  |                   |
|      | (Principal Executive      Officer)                      |                   |

| By:  | /s/ Timoth J.      Shaheen                           | August 10,  2009  |
|-----------|------------------------------------------------------|------------------------|
|      | Timoth J.      Shaheen                               | Date              |
|      | Chief      Financial Officer and Secretary |                   |
|      | (Principal Financial      Officer)              |                   |