Document:

Exhibit 10.2

 

EXECUTION
VERSION

 

CONVERSION
AND EXCHANGE AGREEMENT

 

This Conversion
and Exchange Agreement (the “Agreement”) is made as of March 5, 2020, by and between Elkhorn Partners Limited
Partnership (the “Holder”) and Cadiz Inc., a Delaware corporation (the “Company”).

 

RECITALS

 

WHEREAS,
the Company is party to that certain Indenture, dated as of December 10, 2015 (the “Indenture”), between Cadiz,
as issuer, and U.S. Bank National Association, as trustee (the “Trustee”), pursuant to which Cadiz issued certain
7.00% Convertible Senior Notes due 2020 (“Convertible Notes”);

 

WHEREAS, the
Holder has acquired Convertible Notes under the Indenture in the aggregate original principal amount of $901,000 (such Convertible
Notes acquired by the Holder, the “Notes”).

 

WHEREAS, as
of the date hereof, there remains approximately $1,474,886.99 in outstanding aggregate original principal amount and accrued but
unpaid interest under the Notes (the “Outstanding Amount”).

 

WHEREAS,
the current Maturity Date of the Notes is March 5, 2020.

 

WHEREAS, the
Holder desires to convert $575,372.21 of the Outstanding Amount (the “Conversion Amount”) into common stock,
par value $0.01 per share (“Common Stock”), of the Company in accordance with the terms of the Indenture and
simultaneously exchange $899,514.79 (the “Exchange Amount”) of the Outstanding Amount for shares of a new series
of preferred stock, par value $0.01 per share, of the Company titled “Series 1 Preferred Stock” (the “Preferred
Stock”) in an exchange qualifying as a recapitalization pursuant to Section 368(1)(E) of the Internal Revenue Code of
1986, as amended, including the regulations and published interpretations thereunder (the “Code”). The exchange
of such portion of the Notes as is equal to the Exchange Amount for the Preferred Stock is referred to herein as the “Exchange”.

 

WHEREAS, Notes
comprising the Exchange Amount are to be exchanged for 329 shares of Preferred Stock.

 

WHEREAS,
the Preferred Stock shall have the rights, preferences and privileges set forth in the form of Certificate of Designations of
Series 1 Preferred Stock attached hereto as Exhibit A (the “Certificate”), including that each share
of Preferred Stock will be convertible into 405.05 shares of Common Stock, subject to certain adjustments set forth therein.

 

WHEREAS,
the Closing Preferred Shares and the Conversion Shares (each as defined below) will have the benefit of the Registration Rights
Agreement, to be dated as of the Closing Date (as defined below), by and between the Company and the Holder (the “Registration
Rights Agreement”), in the form attached hereto as Exhibit B.

 

WHEREAS,
the Exchange is being made in reliance upon the exemption from registration provided by Section 4(a)(2) and/or Section 3(a)(9)
of the Securities Act of 1933, as amended (the “Securities Act”).

 

     

     

    

 

WHEREAS,
capitalized terms used but not defined in this Agreement shall have the meanings ascribed to them in the Indenture.

  

NOW
THEREFORE, on and subject to the terms hereof, the parties hereto agree as follows:

 

Article I

 

CONVERSION
OF THE CONVERSION AMOUNT

 

Subject
to the terms set forth in this Agreement and the Indenture, the Holder shall execute and deliver a Conversion Notice to the Conversion
Agent on the date of this Agreement, thereby effecting the conversion of the Conversion Amount, and the Company shall cause to
be delivered to the Holder the number of shares of Common Stock equal to the applicable Settlement Amount, all subject to and
in accordance with Article 10 of the Indenture, including, without limitation, the procedural requirements set forth in Section
10.02 of the Indenture (the “Conversion”).

 

Article II

EXCHANGE OF THE EXCHANGE AMOUNT

FOR THE pREFERRED STOCK

 

Subject to
the terms set forth in this Agreement, at the Closing (as defined herein), the Holder hereby agrees to convey, assign and transfer
to the Company such portion of the Notes as is equal to the Exchange Amount, in exchange for which the Company agrees to issue
to the Holder 329 shares of Preferred Stock (the “Closing Preferred Shares”). At the Closing, the Holder shall
deliver to the Registrar the Notes comprising the Exchange Amount (to the extent such Notes were not previously delivered to the
Conversion Agent for purposes of the Conversion pursuant to Article I hereof), and the Company shall issue the Closing
Preferred Shares to the Holder in book entry form. Subject to Section 6.1, the consummation of the Exchange (the “Closing”)
shall occur on a mutually agreed upon date (the “Closing Date”) no later than two business days after the date
of this Agreement. The Company shall file the Certificate with the Secretary of State of the State of Delaware on the Closing
Date.

 

Article III

REPRESENTATIONS AND

WARRANTIES OF THE HOLDER

 

The
Holder hereby makes the following representations and warranties to the Company, each of which is and shall be true and correct
on the date hereof and at the Closing, and all such representations and warranties shall survive the Closing:

 

Section 3.1 Power
and Authorization.  The Holder is duly organized, validly existing and in good standing, and has the power, authority
and capacity to execute and deliver this Agreement, to perform its obligations hereunder, and to consummate the transactions contemplated
hereby.

  

    2 

     

    

 

Section 3.2 Valid
and Enforceable Agreement; No Violations.  This Agreement has been duly executed and delivered by the Holder and
constitutes a legal, valid and binding obligation of the Holder, enforceable against the Holder in accordance with its terms,
except that such enforcement may be subject to (a) bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium or
other similar laws affecting or relating to enforcement of creditors’ rights generally, and (b) general principles
of equity, whether such enforceability is considered in a proceeding at law or in equity (such qualifications in clauses (a) and
(b) being the “Enforceability Exceptions”). This Agreement and consummation of the transactions contemplated
hereby will not violate, conflict with or result in a breach of or default under (i) the Holder’s organizational documents,
(ii) any agreement or instrument to which the Holder is a party or by which the Holder or any of its assets are bound, or
(iii) any laws, regulations or governmental or judicial decrees, injunctions or orders applicable to the Holder.

 

Section 3.3 Title
to the Notes.  The Holder has not, in whole or in part, (a) assigned, transferred, hypothecated, pledged, exchanged
or otherwise disposed of any of its rights in the Notes, or (b) given any person or entity any transfer order, power of attorney
or other authority of any nature whatsoever with respect to the Notes.

 

Section 3.4 Hold
Period.  From the date of this Agreement until the Closing Date, the Holder shall not, and shall not allow any of
its Affiliates to, offer, sell, contract to sell or otherwise dispose of, except as provided hereunder, all or any portion of
the Notes.

 

Section 3.5 Accredited
Investor/Qualified Institutional Buyer.  The Holder is either (i) an “accredited investor” within the
meaning of Rule 501(a) of Regulation D (“Regulation D”) promulgated under the Securities Act, (ii) has (and
if applicable, its officers, employees, directors or equity owners have) either alone or with his, her or its purchaser representative
or representatives, if any, such knowledge and experience in financial and business matters that he, she or it is capable of evaluating
the merits and risks of the Exchange or (iii) a “qualified institutional buyer” within the meaning of Rule 144A promulgated
under the Securities Act (“Rule 144A”).

 

Section 3.6 Restricted
Stock.  The Holder (a) acknowledges (i) that the issuance of the Preferred Stock pursuant to this Agreement
and the issuance of any shares of Common Stock upon conversion of any of the Preferred Stock (the “Conversion Shares”)
have not been registered, nor does the Company have a plan or intent to register such issuance of Preferred Stock or Conversion
Shares, under the Securities Act or any state securities laws except as contemplated by the Registration Rights Agreement, (ii)
the Preferred Stock and Conversion Shares are being offered and sold in reliance upon exemptions provided in the Securities Act
and state securities laws for transactions not involving any public offering and, therefore, cannot be sold, transferred, offered
for sale, pledged, hypothecated or otherwise disposed of unless they are subsequently registered and qualified under the Securities
Act and applicable state laws or unless an exemption from such registration and qualification is available, (iii) the Preferred
Stock and Conversion Shares are “restricted securities” as that term is defined in Rule 144 promulgated under
the Securities Act and (iv) any and all certificates representing the Preferred Stock and Conversion Shares shall bear a restrictive
legend substantially as set forth in Section 7.2 hereof to the extent required thereby and (b) is purchasing
the Preferred Stock and Conversion Shares for investment purposes only for the account of the Holder and not with any view toward
a distribution thereof or with any intention of selling, distributing or otherwise disposing of the Preferred Stock or Conversion
Shares in a manner that would violate the registration requirements of the Securities Act. The Holder is able to bear the economic
risk of holding the Preferred Stock and Conversion Shares for an indefinite period and has sufficient knowledge and experience
in financial and business matters so as to be capable of evaluating the merits and risk of its investment in the Preferred Stock
and Conversion Shares.

  

    3 

     

    

 

Section 3.7 Adequate
Information; No Reliance. The Holder acknowledges and agrees that (a) the Holder has conducted its own review of materials
it considers relevant to making an investment decision to enter into the Conversion and the Exchange and has had the opportunity
to review the Company’s filings and submissions with the Securities and Exchange Commission (the “SEC”),
including, without limitation, all information filed or furnished pursuant to the Exchange Act and all information incorporated
into such filings and submissions, (b) the Holder has sufficient knowledge and expertise to make an investment decision with respect
to the transactions contemplated hereby, (c) the Holder has had a full opportunity to speak directly with directors, officers
and “Affiliates” (as that term is defined in Rule 501(b) of Regulation D under the Securities Act) of the Company
and to ask questions of the Company and such directors, officers and Affiliates of the Company concerning the Company, its business,
operations, financial performance, financial condition and prospects, and the terms and conditions of the Conversion and the Exchange,
and to obtain such additional information as it deems necessary to verify the accuracy of the information furnished to it and
has asked such questions, received such answers and obtained such information as it deems necessary, (d) the Holder has had
the opportunity to consult with its accounting, tax, financial and legal advisors to be able to evaluate the risks involved in
the Conversion and the Exchange and to make an informed investment decision with respect to the Conversion and the Exchange and
(e) the Holder is not relying, and has not relied, upon any statement, advice (whether accounting, tax, financial, legal
or other), representation or warranty made by the Company or any of its affiliates or representatives, except for (A) the
publicly available filings and submissions made by the Company with the SEC under the Exchange Act, together with all information
incorporated into such filings and submissions, and (B) the representations and warranties made by the Company in this Agreement
and the other agreements contemplated hereby.

 

Section 3.8 Holder’s
Reporting Requirement. The Company has made no representations to the Holder regarding the Holder’s reporting requirements
with the SEC related to the Holder’s ownership in the Company, and the Holder acknowledges and agrees that it is the responsibility
of the Holder to ensure that it complies with any disclosure and reporting requirements of the SEC.

 

Section 3.9 No
Public Market.  The Holder understands that no public market exists for the Preferred Stock, and that there is no
assurance that a public market will ever develop for the Preferred Stock.

 

Section 3.10 No
General Solicitation or Advertising. The offer to enter into the Exchange was directly communicated to the Holder, and the
Holder was able to ask questions of and receive answers concerning the terms of the Exchange.  At no time was the Holder
presented with or solicited by any leaflet, newspaper or magazine article, radio or television advertisement, or any other form
of general advertising or solicited or invited to attend a promotional meeting otherwise than in connection and concurrently with
such communicated offer.

 

Section 3.11 Legal
Opinions.  The Holder acknowledges and understands that a legal opinion is being delivered by counsel to the Company
in reliance on, and assuming the accuracy of, the foregoing representations and warranties of the Holder.

 

Article IV

REPRESENTATIONS AND

WARRANTIES OF THE COMPANY

 

The
Company hereby makes the following representations and warranties, each of which is and shall be true and correct on the date
hereof and at the Closing, to the Holder, and all such representations and warranties shall survive the Closing.

  

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Section 4.1 Exchange
Act Filings. The Company has filed or furnished, as applicable, on a timely basis all forms, statements, certifications, reports
and documents required to be filed or furnished by it with the SEC pursuant to the Exchange Act or the Securities Act since December
31, 2017 (the “Company Reports”). The Company Reports, when they became effective or were filed with or furnished
to the SEC, as the case may be, conformed in all material respects to the requirements of the Securities Act or the Exchange Act,
as applicable, and the rules and regulations thereunder and none of such documents contained any untrue statement of a material
fact or omitted to state any material fact required to be stated therein or necessary to make the statements therein, in light
of the circumstances under which they were made, not misleading; and any further documents so filed or furnished after the date
hereof and on or prior to the Closing, when such documents become effective or are filed with the SEC, as the case may be, will
conform in all material respects to the requirements of the Securities Act or the Exchange Act, as applicable, and the rules and
regulations of the SEC thereunder and will not contain any untrue statement of a material fact or omit to state any material fact
required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were
made, not misleading. On or before the second business day following the date of this Agreement, the Company shall issue a publicly
available press release or file with the SEC a Current Report on Form 8-K disclosing all material terms of the transactions contemplated
hereby.

 

Section 4.2 Due
Incorporation.  Each of the Company and each of its Subsidiaries has been duly organized and is validly existing
as a corporation or other legal entity in good standing (or the foreign equivalent thereof) under the laws of its jurisdiction
of incorporation or organization.  Each of the Company and its Subsidiaries is duly qualified to do business and is
in good standing as a foreign corporation or other legal entity in each jurisdiction in which its ownership or lease of its properties
or the conduct of its business requires such qualification and has all power and authority (corporate or other) necessary to own
or hold its properties and to conduct the businesses in which each is engaged, except where the failure to so qualify or have
such power or authority (i) would not have and would not reasonably be expected to have, individually or in the aggregate, a material
adverse effect on the condition (financial or otherwise), results of operations, assets or business of the Company and its Subsidiaries,
taken as a whole, or (ii) impair in any material respect the ability of the Company to perform its obligations under this Agreement
or the Indenture or to consummate any transactions contemplated hereby or thereby (any such effect as described in clauses (i)
or (ii), a “Material Adverse Effect”). As used in this Agreement, “Subsidiary” shall have
the meaning set forth in Rule 1-02 of Regulation S-X of the SEC.

 

Section 4.3 Subsidiaries.
The membership interests or capital stock, as applicable, of each Subsidiary have been duly authorized and validly issued, are
fully paid and nonassessable and, except to the extent set forth in the Company Reports, are owned by the Company directly, free
and clear of any claim, lien, encumbrance, security interest, restriction upon voting or transfer or any other claim of any third
party.

 

Section 4.4 Due
Authorization.  The Company has the full right, power and authority to enter into this Agreement and the Registration
Rights Agreement and to perform and to discharge its obligations hereunder and thereunder; and this Agreement and the Registration
Rights Agreement have been duly authorized, this Agreement has been, and at Closing the Registration Rights Agreement will be,
duly executed and delivered by the Company, and each such agreement constitutes or will constitute upon Closing a valid and binding
obligation of the Company enforceable in accordance with its terms, subject to the Enforceability Exceptions.

 

Section 4.5 The
Preferred Stock and the Conversion Shares. The Preferred Stock to be issued to the Holder hereunder has been duly authorized
and, when issued and delivered upon sale, will be validly issued, fully paid, and nonassessable and free of any preemptive or
similar rights. The Conversion Shares have been duly authorized for issuance by the Company and, when issued in accordance with
the terms of the Certificate, will be validly issued, fully paid and nonassessable and free of any preemptive or similar rights.  The
Preferred Stock and the Conversion Shares will be issued in compliance with all federal and state securities laws.

  

    5 

     

    

 

Section 4.6 Capitalization.
The authorized capital stock of the Company consists of 70,000,000 shares of Common Stock, of which 30,227,632 shares of Common
Stock were outstanding as of the close of business on March 1, 2020, and 100,000 shares of preferred stock, none of which are,
or will be immediately prior to the Closing, outstanding. All of the outstanding shares of Common Stock have been duly authorized
and are validly issued, fully paid and nonassessable.  Other than 1,145,555 shares of Common Stock reserved for issuance
under the Company’s employee benefit plans, stock option and employee stock purchase plans or other employee compensation
plans as such plans are in existence on the date hereof and described in the Company Reports and 362,500 shares of Common Stock
reserved for issuance upon exercise of warrants outstanding on the date hereof and previously described in the Company Reports,
the Company has no shares of capital stock reserved for issuance.  Except as set forth above or pursuant to this Agreement,
there are no preemptive or other outstanding rights, options, warrants, conversion rights, stock appreciation rights, redemption
rights, repurchase rights, agreements, arrangements, calls, commitments or rights of any kind that obligate the Company or any
of its Subsidiaries to issue or sell any shares of capital stock or other securities of the Company or any of its Subsidiaries
or any securities or obligations convertible or exchangeable into or exercisable for, or giving any person a right to subscribe
for or acquire, any securities of the Company or any of its Subsidiaries, and no securities or obligations evidencing such rights
are authorized, issued or outstanding. The Company does not have outstanding any bonds, debentures, notes or other debt obligations
the holders of which have the right to vote with the stockholders of the Company on any matter in their capacity as such holders.

 

Section 4.7 No
Default, Termination or Lien. The execution, delivery and performance of this Agreement and the Registration Rights Agreement
by the Company, the issuance, sale and delivery of the Preferred Stock by the Company, the issuance and delivery of the Conversion
Shares in accordance with the terms of the Certificate, the consummation of the transactions contemplated hereby and thereby,
and compliance by the Company with the terms of this Agreement and the Registration Rights Agreement will not (with or without
notice or lapse of time or both) conflict with or result in a breach or violation of any of the terms or provisions of, constitute
a default under, give rise to any right of termination or other right or the cancellation or acceleration of any right or obligation
or loss of a benefit under, or give rise to the creation or imposition of any lien, encumbrance, security interest, claim or charge
upon any property or assets of the Company or any Subsidiary pursuant to, any indenture, mortgage, deed of trust, loan agreement
or other agreement or instrument to which the Company or any of its Subsidiaries is a party or by which the Company or any of
its Subsidiaries is bound or to which any of the property or assets of the Company or any of its Subsidiaries is subject, nor
will such actions result in any violation of the provisions of the charter or by-laws (or analogous governing instruments, as
applicable) of the Company or any of its Subsidiaries or any law, statute, rule, regulation, judgment, order or decree of any
court or governmental agency or body, domestic or foreign, having jurisdiction over the Company or any of its Subsidiaries or
any of their properties or assets.

 

Section 4.8 No
Consents. No consent, notice, approval, authorization or order of, or qualification with, any governmental body, agency or
other person is required for the performance by the Company of its obligations under this Agreement or the Registration Rights
Agreement, except such as is required pursuant to that certain Credit Agreement, dated May 1, 2017, among the Company, Apollo
Special Situations Fund L.P., Wells Fargo Bank N.A. and the other parties signatory thereto, which consent shall have been obtained
prior to the Closing Date, and such as may be required by the securities or blue sky laws of the various states and the NASDAQ
Global Market in connection with the offer and sale of the Preferred Stock.

  

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Section 4.9 Independent
Accountants. PricewaterhouseCoopers LLP (“PwC”), who have certified certain financial statements and related
schedules included or incorporated by reference in the Company Reports, is an independent registered public accounting firm as
required by the Securities Act and the rules and regulations thereunder and the Public Company Accounting Oversight Board (United
States).  Except as pre-approved in accordance with the requirements set forth in Section 10A of the Exchange Act, PwC
has not been engaged by the Company to perform any “prohibited activities” (as defined in Section 10A of the Exchange
Act).

 

Section 4.10 Financial
Statements. The financial statements, together with the related notes and schedules, included in the Company Reports fairly
present the financial position and the results of operations and changes in financial position of the Company and its consolidated
Subsidiaries and other consolidated entities at the respective dates or for the respective periods therein specified.  Such
statements and related notes and schedules have been prepared in accordance with the generally accepted accounting principles
in the United States (“GAAP”) applied on a consistent basis throughout the periods involved except as may be
set forth in the related notes.  Such financial statements, together with the related notes and schedules, comply in
all material respects with the Securities Act, the Exchange Act, and the rules and regulations thereunder.  No other
financial statements or supporting schedules or exhibits are required by the Exchange Act or the rules and regulations thereunder
to be filed with the SEC.

 

Section 4.11 No
Material Adverse Change. There has not occurred any material adverse change, or any development involving a prospective material
adverse change, in the condition, financial or otherwise, or in the earnings, business or operations of the Company and its Subsidiaries,
taken as a whole, from that set forth or contemplated in the Company’s Quarterly Report on Form 10-Q for the quarter ended
September 30, 2019, filed with the SEC on November 12, 2019 (the “Latest Quarterly Report”).

 

Section 4.12 Legal
Proceedings. There are no legal or governmental proceedings, actions, suits or claims pending or, to the Company’s knowledge,
threatened to which the Company or any of its Subsidiaries is a party or to which any of the properties or assets of the Company
or any of its Subsidiaries is subject (i) other than proceedings accurately described in all material respects in the Company
Reports (excluding in each case any disclosures set forth in the risk factors or “forward-looking statements” sections
of such reports and any other disclosures included therein, to the extent they are predictive or forward-looking in nature and
not statements of historical fact), litigation in connection with a Qualified Water Project (as defined in the Indenture), the
Northern Pipeline Project (as defined in the Certificate) and the Southern Pipeline Project (as defined in the Certificate), and
proceedings that would not have and would not reasonably be expected to have, individually or in the aggregate, a Material Adverse
Effect, or (ii) that are required to be described in the Company Reports and are not so described; and there are no statutes,
regulations, contracts or other documents to which the Company or any of its Subsidiaries is subject or by which the Company or
any of its Subsidiaries is bound that are required to be described in the Company Reports or to be filed as exhibits to the Company
Reports that are not described or filed as required. Neither the Company nor any Subsidiary, nor any director or officer thereof,
is or has been the subject of any legal or governmental proceedings, actions, suits or claims of violation of or liability under
federal or state securities laws or a claim of breach of fiduciary duty.  For purposes of this Agreement, “Company’s
Knowledge” means the actual knowledge of the executive officers (as defined in Exchange Act Rule 3b-7) of the Company
or its Subsidiaries, after reasonable due inquiry.

  

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Section 4.13 Regulatory
Permits. Each of the Company and its Subsidiaries possesses or has applied for all certificates, authorizations, licenses,
franchises, permits, orders and approvals issued or granted by the appropriate governmental or regulatory authorities, agencies,
courts, commissions or other entities, whether federal, state, local or foreign, or applicable self-regulatory organizations necessary
to conduct its business as currently conducted, except (i) where the failure to possess such certificates, authorizations, licenses,
franchises, permits, orders and approval, individually or in the aggregate, has not and would not reasonably be expected to have,
individually or in the aggregate, a Material Adverse Effect (“Material Permits”) and (ii) as accurately described
in all material respects in the Company Reports (excluding in each case any disclosures set forth in the risk factors or “forward-looking
statements” sections of such reports and any other disclosures included therein, to the extent they are predictive or forward-looking
in nature and not statements of historical fact), and neither the Company nor any of its Subsidiaries has received any written
notice of proceedings relating to the revocation or material adverse modification of any such Material Permits (except as accurately
described in all material respects in the Company Reports, including the Latest Quarterly Report), and to the Company’s
Knowledge, there are no facts or circumstances that would give rise to the revocation or material adverse modifications of any
Material Permits (except as accurately described in all material respects in the Company Reports, including the Latest Quarterly
Report (excluding any disclosures set forth in the risk factors or “forward-looking statements” sections of such report
and any other disclosures included therein, to the extent they are predictive or forward-looking in nature and not statements
of historical fact)).

 

Section 4.14 Material
Contracts. Except for the Material Contracts, the Company and its Subsidiaries are not party to any agreements, contracts
or commitments that are material to the business, financial condition, assets or operations of the Company and its Subsidiaries
that would be required to be filed pursuant to Item 601(b)(10) of Regulation S-K under the Exchange Act.  Neither the
Company nor any of its Subsidiaries is in material default under or in material violation of, nor to the Company’s Knowledge,
has received written notice of termination or default under any Material Contract.  For purposes of this Agreement,
“Material Contract” means any contract of the Company that was filed as an exhibit to the Company’s Annual
Report on Form 10-K for the year ended December 31, 2018, filed with the SEC on March 18, 2019 (as amended, the “2018
Annual Report”), and any Company Report filed after the filing of the 2018 Annual Report.

 

Section 4.15 Investment
Company Act. Neither the Company nor any of its Subsidiaries is or, after giving effect to the Conversion and the Exchange,
will become an “investment company” within the meaning of the Investment Company Act of 1940, as amended, and the
rules and regulations of the SEC thereunder.

 

Section 4.16 No
Price Stabilization. Neither the Company, its Subsidiaries nor any of the Company’s or its Subsidiaries’ officers,
directors or affiliates has taken or will take, directly or indirectly, any action designed or intended to stabilize or manipulate
the price of any security of the Company, or which caused or resulted in, or which would in the future reasonably be expected
to cause or result in, stabilization or manipulation of the price of any security of the Company.

 

Section 4.17 Title
to Property. The Company and its Subsidiaries have good and marketable title to all real and personal property owned by them
which is material to the business of the Company and its Subsidiaries, taken as a whole, in each case free and clear of all liens,
encumbrances and defects of title except such as are described in the Company Reports (excluding in each case any disclosures
set forth in the risk factors or “forward-looking statements” sections of such reports and any other disclosures included
therein, to the extent they are predictive or forward-looking in nature and not statements of historical fact) or such as do not
materially affect the value of such property and do not interfere with the use made and proposed to be made of such property by
the Company and its Subsidiaries; and any real property and buildings held under lease by the Company and its Subsidiaries are
held by them under valid, subsisting and enforceable leases with such exceptions as are not material and do not interfere with
the use made and proposed to be made of such property and buildings by the Company and its Subsidiaries, in each case except as
described in the Company Reports (excluding in each case any disclosures set forth in the risk factors or “forward-looking
statements” sections of such reports and any other disclosures included therein, to the extent they are predictive or forward-looking
in nature and not statements of historical fact).

  

    8 

     

    

 

Section 4.18 No
Labor Disputes. No labor problem or dispute with the employees of the Company exists, or, to the Company’s Knowledge,
is threatened or imminent, which would or would reasonably be expected, individually or in the aggregate, to result in a Material
Adverse Effect.  The Company is not aware that any key employee or significant group of employees of the Company plans
to terminate employment with the Company.  To the Company’s Knowledge, no executive officer (as defined in Rule
501(f) of the Securities Act) of the Company or any of its Subsidiaries is in violation of any material term of any employment
contract, confidentiality, disclosure or proprietary information agreement or non-competition agreement.  Except for
matters which would not and would not reasonably be expected to, individually or in the aggregate, result in a Material Adverse
Effect, (i) the Company has not engaged in any unfair labor practice; (ii) there is (A) no unfair labor practice complaint
pending or, to the Company’s Knowledge, threatened against the Company before the National Labor Relations Board, and no
grievance or arbitration proceeding arising out of or under collective bargaining agreements is pending or to the Company’s
Knowledge, threatened, (B) no strike, labor dispute, slowdown or stoppage pending or, to the Company’s knowledge, threatened
against the Company and (C) no union representation dispute currently existing concerning the employees of the Company; and
(iii) to the Company’s knowledge, (A) no union organizing activities are currently taking place concerning the
employees of the Company and (B) there has been no violation of any federal, state, local or foreign law relating to discrimination
in the hiring, promotion or pay of employees, any applicable wage or hour laws or any provision of the Employee Retirement Income
Security Act of 1974 (“ERISA”) or the rules and regulations promulgated thereunder concerning the employees
of the Company.

 

Section 4.19 Taxes.

 

(a) The
Company (i) has timely filed all necessary federal, state, local and foreign income and franchise tax returns (or timely
filed applicable extensions therefore) that have been required to be filed and (ii)  is not in default in the payment of
any taxes which were payable pursuant to said returns or any assessments with respect thereto, other than any which the Company
is contesting in good faith and for which adequate reserves have been provided and reflected in the financial statements included
in the Company Reports. The Company does not have any tax deficiency that has been or, to the Company’s Knowledge, is reasonably
likely to be asserted or threatened against it that would result or would reasonably be expected to result in, individually or
in the aggregate, a Material Adverse Effect.

 

(b) Assuming
that for federal income tax purposes (i) the Notes qualify as “securities” within the meaning of Section 354 of the
Code, (ii) none of the Preferred Stock received by the Holder is attributable to interest which has accrued on the Notes and (iii)
the Holder holds the Notes as capital assets as of the Closing Date, the following should be the federal income tax consequences
of the Exchange: (A) The Holder shall recognize no gain or loss as a result of the Exchange; (B) The Holder’s basis in the
Preferred Stock shall be the same as the Holder’s basis in the Notes exchanged for such Preferred Stock; and (C) The Holder’s
holding period in respect of the Preferred Stock shall include the Holder’s holding period in respect of the Notes exchanged
for such Preferred Stock.

 

Section 4.20 ERISA.
The Company is in compliance in all material respects with all presently applicable provisions of ERISA; no “reportable
event” (as defined in ERISA) has occurred with respect to any “pension plan” (as defined in ERISA) for which
the Company would have any liability; the Company has not incurred and does not expect to incur liability under (i) Title
IV of ERISA with respect to termination of, or withdrawal from, any “pension plan” or (ii) Sections 412
or 4971 of the Code; and each “pension plan” for which the Company would have any liability that is intended to be
qualified under Section 401(a) of the Code is so qualified in all material respects and nothing has occurred, whether by
action or by failure to act, which would cause the loss of such qualification.

  

    9 

     

    

 

Section 4.21 Compliance
with Environmental Laws. Except as disclosed in the Company Reports (excluding in each case any disclosures set forth in the
risk factors or “forward-looking statements” sections of such reports and any other disclosures included therein,
to the extent they are predictive or forward-looking in nature and not statements of historical fact), neither the Company nor
any of its Subsidiaries is in violation of any statute, rule, regulation, decision or order of any governmental agency or body
or any court, relating to the use, disposal or release of hazardous or toxic substances or relating to the protection or restoration
of the environment or human exposure to hazardous or toxic substances (collectively, “Environmental Laws”),
or to the Company’s Knowledge, operates any real property contaminated with any substance that is subject to any Environmental
Laws, is liable for any off-site disposal or contamination pursuant to any Environmental Laws, or is subject to any claim relating
to any Environmental Laws, which violation, contamination, liability or claim would or would reasonably be expected, individually
or in the aggregate, to have a Material Adverse Effect; and the Company is not aware of any pending investigation which might
lead to such a claim.

 

Section 4.22 Intellectual
Property Rights. The Company and its Subsidiaries own or possess, or have the right to use, adequate trademarks, trade names
and other rights to inventions, know-how, patents, copyrights, confidential information and other intellectual property (collectively,
“Intellectual Property Rights”) necessary to conduct the business now operated by them, or presently employed
by them, and have not received any notice of infringement of or conflict with asserted rights of others with respect to any Intellectual
Property Rights, except such as would not and would not reasonably be expected to, individually or in the aggregate, have
a Material Adverse Effect.

 

Section 4.23 Foreign
Corrupt Practices Act. Neither the Company nor any of its Subsidiaries, nor to its knowledge, any director, officer, employee
or other person associated with or acting on behalf of the Company or any of its Subsidiaries has:  (i) used any Company
funds for any unlawful contribution, gift, entertainment or other unlawful expense relating to political activity; (ii) made any
direct or indirect unlawful payment to any foreign or domestic government official or employee from Company funds; (iii) caused
the Company or any of its Subsidiaries to be in violation of any provision of the United States Foreign Corrupt Practices Act
of 1977; or (iv) made any bribe, rebate, payoff, influence payment, kickback or other unlawful payment from Company funds.

 

Section 4.24 OFAC
and Similar Laws. None of the Company, any of its Subsidiaries or, to the Company’s Knowledge, any director, officer,
agent, employee, affiliate or representative of the Company or any of its subsidiaries is an individual or entity (“Person”)
currently the subject or target of any sanctions administered or enforced by the United States Government, including, without
limitation, the U.S. Department of the Treasury’s Office of Foreign Assets Control (“OFAC”), the United
Nations Security Council, the European Union, Her Majesty’s Treasury, or other relevant sanctions authority (collectively,
“Sanctions”), nor is the Company or any of its Subsidiaries located, organized or resident in a country or
territory that is the subject of Sanctions; and the Company will not directly or indirectly use its or its Subsidiaries’
funds, or lend, contribute or otherwise make available such funds to any Subsidiaries, joint venture partners or other Person,
to knowingly fund any activities of or business with any Person, or in any country or territory, that, at the time of such funding,
is the subject of Sanctions or in any other manner that will result in a violation by any Person (including any Person participating
in the transaction, whether as underwriter, advisor, investor or otherwise) of Sanctions.

  

    10 

     

    

 

Section 4.25 Disclosure
Controls and Procedures. The Company has established and maintains disclosure controls and procedures (as defined in Exchange
Act Rules 13a-15(e) and 15d-15(e)) that are effective in all material respects to ensure that material information relating to
the Company, including any consolidated Subsidiaries, is made known to its chief executive officer and chief financial officer
by others within those entities.  The Company’s certifying officers have evaluated the effectiveness of the Company’s
controls and procedures as of December 31, 2018 (such date, the “Evaluation Date”).  The Company
presented in the 2018 Annual Report the conclusions of the certifying officers about the effectiveness of the disclosure controls
and procedures based on their evaluations as of the Evaluation Date.  Since the Evaluation Date, there have been no
material changes in the Company’s internal controls (as such term is defined in the rules of the SEC under the Exchange
Act) or in other factors that could affect the Company’s internal controls.

 

Section 4.26 Accounting
Controls. The Company and its Subsidiaries maintain a system of internal accounting and other controls sufficient to provide
reasonable assurances that (i) transactions are executed in accordance with management’s general or specific authorizations;
(ii) transactions are recorded as necessary to permit preparation of financial statements in conformity with GAAP and to maintain
accountability for assets; (iii) access to assets is permitted only in accordance with management’s general or specific
authorization; and (iv) the recorded accountability for assets is compared with existing assets at reasonable intervals and appropriate
action is taken with respect to any differences.  Except as described in the Company Reports (excluding in each case
any disclosures set forth in the risk factors or “forward-looking statements” sections of such reports and any other
disclosures included therein, to the extent they are predictive or forward-looking in nature and not statements of historical
fact), since December 31, 2016, there has been (A) no material weakness in the Company’s internal control over financial
reporting (whether or not remediated) and (B) no change in the Company’s internal control over financial reporting
that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial
reporting.

 

Section 4.27 Absence
of Material Changes. Subsequent to the respective dates as of which information is given in the Company Reports, and except
as may be otherwise disclosed in such Company Reports (excluding in each case any disclosures set forth in the risk factors or
“forward-looking statements” sections of such reports and any other disclosures included therein to the extent they
are predictive or forward-looking in nature and not statements of historical fact), there has not been (i) any Material Adverse
Effect, (ii) any transaction which is material to the Company, (iii) any obligation, direct or contingent (including
any off-balance sheet obligations), incurred by the Company, which is material to the Company, (iv)  any dividend or distribution
of any kind declared, paid or made on the capital stock of the Company, (v) any change in the capital stock (other than a
change in the number of outstanding shares of Common Stock due to grants of stock under the Company’s stock incentive plans
existing on the date hereof or the issuance of shares upon the exercise of outstanding options or warrants) or any issuance of
options, warrants, convertible securities or other rights to purchase the capital stock (other than grants of stock options under
the Company’s stock option plans existing on the date hereof) of the Company.

 

Section 4.28 Brokers
Fees. Neither the Company nor any of its Subsidiaries is a party to any contract, agreement or understanding with any person
that would give rise to a valid claim against the Company for a brokerage commission, finder’s fee or like payment in connection
with the Exchange or any transaction contemplated by this Agreement.

 

Section 4.29 Listing
and Maintenance Requirements. The Company is subject to and in compliance in all material respects with the reporting requirements
of Section 13 or Section 15(d) of the Exchange Act, as applicable.  The Common Stock is registered pursuant to Section
12(b) of the Exchange Act and is listed on the NASDAQ Global Market, and the Company has taken no action designed to, or reasonably
likely to have the effect of, terminating the registration of the Common Stock under the Exchange Act or delisting the Common
Stock from the NASDAQ Global Market, nor has the Company received any notification that the SEC or NASDAQ is contemplating terminating
such registration or listing.  The Conversion Shares will be duly authorized for listing on the NASDAQ Global Market
immediately upon conversion of the Preferred Stock in accordance with the terms of the Certificate.

  

    11 

     

    

 

Section 4.30 Sarbanes-Oxley
Act. The Company is in compliance in all material respects with all applicable provisions of the Sarbanes-Oxley Act of 2002
and all applicable rules and regulations promulgated thereunder or implementing the provisions thereof that are then in effect.

 

Section 4.31 NASDAQ
Shareholder Approval Rules. No approval of the stockholders of the Company under the rules and regulations of NASDAQ (including
Rule 5635 of the NASDAQ Marketplace Rules) is required for the Company to issue and deliver the Preferred Stock to the Holder
or the Conversion Shares upon conversion of the Preferred Stock.

 

Section 4.32 No
General Solicitation. Neither the Company nor any person acting on its or their behalf has offered or sold the Preferred Stock
or will offer or sell the Preferred Stock by means of any general solicitation or general advertising, including the methods described
in Rule 502(c) under the Securities Act.

 

Section 4.33 Integration.
No offers and sales of securities of the same or similar class as the Preferred Stock have been made by the Company or on its
behalf during the six-month period ending with the date of this Agreement and no such offers or sales are currently
being made or contemplated (in each case, whether pursuant to outstanding warrants, options, convertible or exchangeable securities,
acquisition agreements or otherwise).

 

Article V

OTHER AGREEMENTS

 

Section 5.1 Termination
of Director Appointment Rights. The Holder’s rights to designate directors to serve on the Company’s board of
directors as provided by Section 4.2 of that certain Exchange Agreement, dated as of March 4, 2013, among the Company, the Holder
and the other signatories thereto are hereby terminated in their entirety and of no further force or effect. The foregoing shall
not affect the current term of service of any director so designated by the Holder prior to the date of this Agreement, which
term of service shall continue until the earlier of such director’s resignation, death, removal or failure to be elected
at the Company’s next annual meeting of stockholders following the date of this Agreement.

 

Section 5.2 Cancellation
of Notes. The Holder acknowledges and agrees that upon giving effect to the Conversion and the Exchange, all of the Company’s
obligations under the Notes shall have been satisfied in full and thereafter the Notes shall be null and void and of no further
force or effect.

 

Article VI

CONDITIONS TO CLOSING

 

Section 6.1 Holder’s
Conditions Precedent.  The obligations of the Holder to complete the Conversion and the Exchange are, in each case, subject
to the satisfaction of each of the following conditions precedent:

 

(a) each
of the representations and warranties of the Company contained in this Agreement shall be true and correct as of the Closing Date,
with the same effect as though those representations and warranties had been made on and as of the Closing Date, except to the
extent that any such representation or warranty is made as of a specified date, in which case such representation or warranty
need only be true and correct as of such date;

  

    12 

     

    

 

(b) the
Notification Form: Listing of Additional Shares, to be filed with the NASDAQ prior to issuing any Preferred Stock or Conversion
Shares, shall have been filed;

 

(c) the
Company shall have delivered to the Holder all consents, notices and approvals required in connection with the transactions contemplated
hereby (including any consent or notice set forth in Section 4.8), in form and substance reasonably satisfactory to
the Holder;

 

(d) the
Holder shall have received the Registration Rights Agreement, executed and delivered by the Company;

 

(e) the
Company shall have duly filed the Certificate with the Secretary of State of the State of Delaware;

 

(f) the
Company shall have duly performed and complied in all material respects with all covenants and agreements contained in this Agreement
that are required to be performed or complied with by it at or before the Closing;

 

(g) no
court or other governmental or regulatory authorities, agencies, commissions or other entities, whether federal, state, local
or foreign, shall have enacted, issued, promulgated, enforced or entered any law (whether temporary, preliminary or permanent)
that is in effect and restrains, enjoins or otherwise prohibits consummation of the transactions contemplated by this Agreement,
and there shall not be pending by or before any such entity any suit, action or proceeding in respect thereof;

 

(h) Greenberg
Traurig, LLP, counsel for the Company, shall have furnished to the Holder an opinion, in the form attached hereto as Exhibit
C, dated the Closing Date and addressed to the Holder;

 

(i) the
Chief Executive Officer and Chief Financial Officer of the Company shall have delivered to the Holder a certificate, dated as
of the Closing Date, certifying to their knowledge, after reasonable inquiry as to the matters set forth in paragraphs 6.1(a)
and (f) above.

 

Section 6.2 Company
Conditions Precedent. The obligations of the Company to complete the Conversion and the Exchange are, in each case, subject
to the satisfaction of each of the following conditions precedent:

 

(a) Each
of the representations and warranties of the Holder contained in this Agreement shall be true and correct as of the Closing Date,
with the same effect as though those representations and warranties had been made on and as of the Closing Date, except to the
extent that any such representation or warranty is made as of a specified date, in which case such representation or warranty
need only be true and correct as of such date;

 

(b) the
Holder shall have duly performed and complied in all material respects with all covenants and agreements contained in this Agreement
that are required to be performed or complied with by it at or before the Closing;

 

(c) no
court or other governmental or regulatory authorities, agencies, commissions or other entities, whether federal, state, local
or foreign, shall have enacted, issued, promulgated, enforced or entered any law (whether temporary, preliminary or permanent)
that is in effect and restrains, enjoins or otherwise prohibits consummation of the transactions contemplated by this Agreement,
and there shall not be pending by or before any such entity any suit, action or proceeding in respect thereof;

  

    13 

     

    

 

(d) the
Trustee, the Conversion Agent and the Registrar, as applicable, shall have received from the Holder such documents and instruments
reasonably requested by them with respect to the Conversion and the Exchange; and

 

(e) the
Holder shall have delivered to the Company an executed counterpart to the Registration Rights Agreement.

 

Article VII

MISCELLANEOUS

 

Section 7.1 Certain
Actions.  Each of the Company and the Holder shall reasonably cooperate with each other and use (and shall cause
their respective affiliates to use) reasonable efforts to take or cause to be taken all actions, and do or cause to be done all
things, necessary, proper or advisable on its part under this Agreement and applicable law and stock exchange listing standards
to consummate the transactions contemplated by this Agreement as soon as practicable.  

 

Section 7.2 Legends.
To the extent reasonably necessary under applicable law, any share certificate or book entry representing the Preferred Stock
or Conversion Shares shall have endorsed, to the extent appropriate, upon its face the following words:

 

	 	THE
    SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”),
    OR THE SECURITIES LAWS OF ANY JURISDICTION.  SUCH SECURITIES MAY NOT BE OFFERED, SOLD, TRANSFERRED, PLEDGED, ASSIGNED,
    ENCUMBERED, HYPOTHECATED OR OTHERWISE DISPOSED OF EXCEPT PURSUANT TO (I) A REGISTRATION STATEMENT WITH RESPECT TO SUCH SECURITIES
    THAT IS EFFECTIVE UNDER SUCH ACT OR APPLICABLE STATE SECURITIES LAW, OR (II) ANY EXEMPTION FROM REGISTRATION UNDER SUCH ACT,
    OR APPLICABLE STATE SECURITIES LAW, RELATING TO THE DISPOSITION OF SECURITIES, INCLUDING RULE 144.

  

Section 7.3 Legend
Removal. Upon the request of the Holder or any transferee or proposed transferee thereof, the Company shall remove the legend
contemplated by Section 7.2 of this Agreement and the Company shall issue a stock certificate or enter a book entry
without such legend to the Holder or transferee (and shall revoke any related stop transfer or similar instructions to its registrar
and transfer agent), or shall cause such shares upon initial issuance not to be so legended (and shall not issue any such stop
transfer or similar legends to its registrar and transfer agent) if the applicable shares of Preferred Stock or Conversion Shares
are covered by an effective registration statement under the Securities Act or if such person provides reasonable evidence and
an opinion of counsel to the effect that a sale, transfer or assignment of such Conversion Shares may be made without registration
under the Securities Act or that such Conversion Shares are eligible for resale pursuant to Rule 144 under the Securities Act.

 

Section 7.4 Entire
Agreement.  This Agreement and any documents and agreements executed in connection with the Conversion and the Exchange
embody the entire agreement and understanding of the parties hereto with respect to the subject matter hereof and supersede all
prior and contemporaneous oral or written agreements, representations, warranties, contracts, correspondence, conversations, memoranda
and understandings between or among the parties or any of their agents, representatives or affiliates relative to such subject
matter, including, without limitation, any term sheets, emails or draft documents.

  

    14 

     

    

 

Section 7.5 Construction.  References
in the singular shall include the plural, and vice versa, unless the context otherwise requires. References in the masculine shall
include the feminine and neuter, and vice versa, unless the context otherwise requires. Headings in this Agreement are for convenience
of reference only and shall not limit or otherwise affect the meanings of the provisions hereof. Neither party, nor its respective
counsel, shall be deemed the drafter of this Agreement for purposes of construing the provisions of this Agreement, and all language
in all parts of this Agreement shall be construed in accordance with its fair meaning, and not strictly for or against either
party.

 

Section 7.6 Governing
Law; Venue.  This Agreement shall in all respects be construed in accordance with and governed by the substantive
laws of the State of New York, without reference to its choice of law rules. Venue for any legal action under this Agreement shall
be in the state or federal courts located in the Borough of Manhattan in the City of New York, New York.

 

Section 7.7 Counterparts.  This
Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which taken together shall constitute
one and the same instrument. Any counterpart or other signature hereon delivered by facsimile shall be deemed for all purposes
as constituting good and valid execution and delivery of this Agreement by such party.

 

Section 7.8 Specific
Performance. Each party acknowledges and agrees that, in addition to other remedies, the parties shall be entitled to enforce
the terms of this Agreement by decree of specific performance without the necessity of proving the inadequacy of monetary damages
as a remedy and to obtain injunctive relief against any breach or threatened breach of this Agreement.

 

Section 7.9 Certain
Definitional Provisions.  Unless the express context otherwise requires: the words “hereof”, “herein”,
and “hereunder” and words of similar import, when used in this Agreement, shall refer to this Agreement as a whole
and not to any particular provision of this Agreement; any references herein to a specific Section, Schedule or Annex shall refer,
respectively, to Sections, Schedules or Annexes of this Agreement; wherever the word “include”, “includes”,
or “including” is used in this Agreement, it shall be deemed to be followed by the words “without limitation”;
and references herein to any gender includes each other gender.

 

[Signature
Pages Follow]

   

    15 

     

    

 

IN
WITNESS WHEREOF, each of the parties hereto has caused this Conversion and Exchange Agreement to be executed as of the date first
above written.  

 

	 	The Company
	 	 
	 	CADIZ INC.
	 	  
	 	By: 	/s/ Scott S. Slater
	 	Name: 	Scott S. Slater
	 	Title:	President and Chief Executive Officer

 

[Signature
Page to Exchange Agreement]

  

     

     

    

   

	 	The
    Holder
	 	 
	 	ELKHORN PARTNERS LIMITED PARTNERSHIP
	 	 
	 	By:  	/s/ Alan S. Parson
	 	Name: 	Alan S. Parson
	 	Title:	Sole Managing Partner

 

[Signature
Page to Exchange Agreement]

 

     

     

    

 

EXHIBIT
A

 

FORM
OF CERTIFICATE OF DESIGNATION

 

(see
attached)

  

     

     

    

 

	 	Delaware	Page 1
	 	The First State	 

 

I, JEFFREY W. BULLOCK, SECRETARY OF STATE OF THE STATE
OF DELAWARE, DO HEREBY CERTIFY THE ATTACHED IS A TRUE AND CORRECT COPY OF THE CERTIFICATE OF DESIGNATION OF “CADIZ INC.”,
FILED IN THIS OFFICE ON THE FIFTH DAY OF MARCH, A.D. 2020, AT 4:47 O`CLOCK P.M.

 

A FILED COPY OF THIS CERTIFICATE HAS BEEN FORWARDED TO
THE NEW CASTLE COUNTY RECORDER OF DEEDS.

 

	 	/s/ Jeffrey
    W. Bullock
	 	Jeffrey
    W. Bullock, Secretary of State

 

	
        2295882    8100

        SR# 20201953970
	 	
        Authentication: 202526555

        Date: 03-05-20

 

You may verify this certificate online at corp.delaware.gov/authver.shtml

 

      

     

    

 

	 	State of Delaware
	 	Secretary of State
	 	Division of Corporations
	 	Delivered 04:47 PM 03/05/2020
	 	FILED 04:47 PM 03/05/2020
	 	SR 20201953970 -  File Number 2295882

 

CERTIFICATE OF DESIGNATION

OF

SERIES 1 PREFERRED STOCK

OF

CADIZ
inc.

 

(Pursuant to Section 151 of the General
Corporation Law of the State of Delaware)

 

Cadiz Inc., a corporation
organized and existing under the General Corporation Law of the State of Delaware (hereinafter, the “Corporation”),
hereby certifies that the following resolution was duly adopted by the Board of Directors of the Corporation as required by Section
151 of the General Corporation Law of the State of Delaware:

 

“NOW, THEREFORE,
BE IT RESOLVED, that pursuant to the authority expressly granted to and vested in the Board of Directors of the Corporation in
accordance with the provisions of the certificate of incorporation of the Corporation, there is hereby created and provided out
of the authorized but unissued preferred stock, par value $0.01 per share, of the Corporation (“Preferred Stock”),
a new series of Preferred Stock, and there is hereby stated and fixed the number of shares constituting such series and the designation
of such series and the powers (including voting powers), if any, of such series and the preferences and relative, participating,
optional, special or other rights, if any, and the qualifications, limitations or restrictions, if any, of such series as follows:

 

Series 1 Preferred
Stock:

 

Section 1. Designation
and Amount. The shares of such series shall be designated as shares of “Series 1 Preferred Stock,” par value $0.01
per share, of the Corporation (the “Series 1 Preferred Stock”), and the number of shares constituting such series
shall be ten thousand (10,000).

 

Section 2. Definitions.
The following terms shall have the following meanings for purposes of this Certificate of Designation (as the same may be amended,
amended and restated or restated from time to time, this “Certificate of Designation”):

 

(a) “Affiliates”
with respect to any Person shall mean any Person that, directly or indirectly through one or more intermediaries, controls or is
controlled by or is under common control with such Person, as such terms are used in and construed under Rule 405 of the Securities
Act.

 

(b) “Attribution
Parties” with respect to a holder of outstanding shares of Series 1 Preferred Stock shall mean such holder’s Affiliates
and any Persons acting as group together with such holder or any of such holder’s Affiliates.

 

(c) “Beneficial
Ownership Limitation” with respect to a holder of outstanding shares of Series 1 Preferred Stock shall mean 9.9% of the
number of shares of the Common Stock outstanding immediately after giving effect to the issuance of shares of Common Stock issuable
upon conversion of Series 1 Preferred Stock held by such holder pursuant to this Certificate of Designation; provided, however,
that a holder of any outstanding shares of Series 1 Preferred Stock, upon written notice to the Corporation, may increase or decrease
the Beneficial Ownership Limitation provisions of this definition applicable to the outstanding shares of Series 1 Preferred Stock
held by such holder; provided that the Beneficial Ownership Limitation shall in no event exceed 9.9% of the number of shares
of the Common Stock outstanding immediately after giving effect to the issuance of shares of Common Stock issuable upon conversion
of Series 1 Preferred Stock held by such holder pursuant to this Certificate of Designation and the provisions of this definition
shall continue to apply. Any such increase in the Beneficial Ownership Limitation shall not be effective until the 61st
day after such written notice is delivered to the Corporation and shall only apply to the holder of outstanding shares of Series
1 Preferred Stock providing such notice and no other holder of outstanding shares of Series 1 Preferred Stock. The provisions of
this definition shall, to the fullest extent permitted by applicable law, be construed and implemented in a manner otherwise than
in strict conformity with the terms of this definition to correct this definition (or any portion hereof) which may be defective
or inconsistent with the intended Beneficial Ownership Limitation contained herein or to make changes or supplements necessary
or desirable to properly give effect to such limitation.

 

      

     

    

 

(d) “Beneficially
Own” shall mean “beneficial ownership” in accordance with Section 13(d) of the Exchange Act and shall include
the number of shares of Common Stock issuable upon conversion of the outstanding shares of Series 1 Preferred Stock sought to be
converted pursuant to this Certificate of Designation, but shall exclude the number of shares of Common Stock which are issuable
upon (i) conversion of any other outstanding shares of Series 1 Preferred Stock and (ii) exercise or conversion of the unexercised
or unconverted portion of any other securities of the Corporation subject to a limitation on conversion or exercise analogous to
the limitation contained herein. 

 

(e) “Board
of Directors” shall mean the Board of Directors of the Corporation.

 

(f) “Capital
Lease Obligations” means, with respect to any Person, the obligations of such Person to pay rent or other amounts under
any lease of (or other arrangement conveying the right to use) real or personal property, or a combination thereof, which obligations
are required to be classified and accounted for as capital leases on a balance sheet of such Person under GAAP and, for the purposes
of this Indenture, the amount of such obligations at any time shall be the capitalized amount thereof at such time determined in
accordance with GAAP.

 

(g) “Certificate
of Incorporation” shall mean the certificate of incorporation of the Corporation, as the same may be amended, amended
and restated or restated from time to time.

 

(h) “Closing
Price” of Common Stock or any other security on any date shall mean the closing sale price per share (or, if no closing
sale price is reported, the average of the last bid and last ask prices or, if more than one in either case, the average of the
average bid and the average ask prices) on that date as reported in composite transactions for the principal United States securities
exchange on which Common Stock or such other security is traded.  If Common Stock or such other security is not listed
for trading on a United States national or regional securities exchange on the relevant date, the Closing Price will be the last
quoted bid price for Common Stock or such other security in the over-the-counter market on the relevant date as reported by OTC
Markets Group Inc. or a similar organization.  If Common Stock or such other security is not so quoted, the Closing Price
will be the average of the mid-point of the last bid and ask prices for Common Stock or such other security on the relevant date
from each of at least three nationally recognized independent investment banking firms selected by the Corporation for this purpose.  The
Closing Price will be determined without reference to extended or after hours trading.

 

(i) “Commission”
shall mean the United States Securities and Exchange Commission.

 

(j) “Commodity
Price Protection Agreement” means, with respect to any Person, any forward contract, futures contract, commodity swap,
commodity option or other similar agreement or arrangement (including derivative agreements or arrangements) as to which such Person
is a party or a beneficiary relating to, or the value of which is dependent upon or which is designed to protect such Person against,
fluctuations in commodity prices.

 

(k) “Common
Stock” shall mean the common stock, par value $0.01 per share, of the Corporation.

 

    2

     

    

 

(l) “Common
Stock Equivalents” shall mean any securities of the Corporation which would entitle the holder thereof to acquire at
any time shares of Common Stock, including, without limitation, any Debt, preferred stock, rights, options, warrants or other securities
that are at any time convertible into or exercisable for, or otherwise entitle the holder thereof to receive, shares of Common
Stock.

 

(m) “Conversion
Date” shall mean an Optional Conversion Date or a Mandatory Conversion Date, as the circumstances shall require.

 

(n) “Conversion
Limitation Determination” shall have the meaning set forth in Section 7(c).

 

(o) “Conversion
Rate” shall mean 405.05, as such amount may be adjusted pursuant to Section 8.

 

(p) “Convertible
Senior Notes due 2020” shall mean the Corporation’s 7.00% Convertible Senior
Notes due 2020 issued pursuant to the Indenture dated as of December 10, 2015, between the Corporation and U.S. Bank National
Association (including any additional notes issued under such Indenture in an aggregate original principal amount not to exceed
$5,000,000 at any one time outstanding), as amended, amended and restated, restated, supplemented or otherwise modified
from time to time.

 

(q) “Corporation”
means Cadiz Inc., a Delaware corporation.

 

(r) “Credit
Agreement” means the Credit Agreement, dated as of May 1, 2017, among the Corporation, Apollo Special Situations Fund,
L.P., the other lenders from time to time party thereto, and Wells Fargo Bank, National Association,
as the agent for the lenders, as amended, amended and restated, restated, extended, renewed, supplemented or otherwise modified
from time to time, and one or more agreements, including, without limitation, an indenture, governing the Debt Incurred by the
Corporation and/or its subsidiaries to Refinance, in whole or in part, the Debt then outstanding under the Credit Agreement or
one or more successor Credit Agreements; provided, however, that the principal amount of such Refinanced Debt (or
accreted value, in the case of such Refinanced Debt issued at a discount) does not exceed the principal amount (or accreted value,
as the case may be) of the Debt so Refinanced, plus the amount of accrued and unpaid interest on the Debt so Refinanced, any premium
paid to holders of the Debt so Refinanced and reasonable expenses (including underwriting discounts) Incurred in connection with
the Refinancing of such Debt. 

 

(s) “Currency
Agreement” means, with respect to any Person, any foreign exchange contract, currency swap agreement or other similar
agreement or arrangement (including derivative agreements or arrangements) as to which such Person is a party or a beneficiary
designed to hedge foreign currency risk of such Person, as amended, amended and restated, restated, supplemented or otherwise
modified from time to time.

 

(t) “Debt”
means, with respect to any Person at any date, without duplication, (i) all indebtedness of such Person for borrowed money, (ii)
all obligations of such Person for the deferred purchase price of property or services (other than current trade payables incurred
in the ordinary course of such Person’s business), (iii) all obligations of such Person evidenced by notes, bonds, debentures
or other similar instruments, (iv) all indebtedness created or arising under any conditional sale or other title retention agreement
with respect to property acquired by such Person (even though the rights and remedies of the seller or lender under such agreement
in the event of default are limited to repossession or sale of such property), (v) all Capital Lease Obligations of such Person,
(vi) all obligations of such Person, contingent or otherwise, as an account party or applicant under or in respect of acceptances,
letters of credit, surety bonds or similar arrangements, (vii) the liquidation value of all redeemable preferred capital stock
of such Person, (viii) all Guarantee Obligations of such Person in respect of obligations of the kind referred to in clauses (i)
through (vii) above, (ix) all obligations of the kind referred to in clauses (i) through (viii) above secured by (or for which
the holder of such obligation has an existing right, contingent or otherwise, to be secured by) any Lien on property (including
accounts and contract rights) owned by such Person, whether or not such Person has assumed or become liable for the payment of
such obligation, and (x) all obligations under Hedging Obligations of such Person. The Debt of any Person shall include the Debt
of any other entity (including any partnership in which such Person is a general partner) to the extent such Person is liable therefor
as a result of such Person’s ownership interest in or other relationship with such entity, except to the extent the terms
of such Debt expressly provide that such Person is not liable therefor.

 

    3

     

    

 

(u) “Dividend
Junior Stock” shall mean, at any time after the Mandatory Conversion Date, any outstanding series of Preferred Stock
provided for or fixed pursuant to the provisions of the Certificate of Incorporation raking junior to the Series 1 Preferred Stock
as to dividends.

 

(v) “Dividend
Parity Stock” shall mean, at any time after the Mandatory Conversion Date, the Common Stock and any outstanding series
of Preferred Stock provided for or fixed pursuant to the provisions of the Certificate of Incorporation ranking pari passu
to the Series 1 Preferred Stock as to dividends.

 

(w) “Dividend
Senior Stock” shall mean, at any time after the Mandatory Conversion Date, any outstanding series of Preferred Stock
provided for or fixed pursuant to the provisions of the Certificate of Incorporation ranking senior to the Series 1 Preferred Stock
as to dividends.

 

(x) “Exchange
Act” shall mean the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.

 

(y) “Exchange
Agreements” shall mean the Conversion and Exchange Agreements, dated on or about the Original Issue Date, between the
Corporation and each original Holder (as defined therein), as amended, amended and restated, restated, supplemented or otherwise
modified from time to time.

 

(z) “Existing
Debt” shall mean the following Debt of the Corporation and its subsidiaries outstanding
on the Original Issue Date: (i) the Corporation’s 7.00% Convertible Senior Notes due 2018 issued pursuant to the Indenture
dated as of March 5, 2013, between the Corporation and U.S. Bank National Association (as successor to The Bank of New York Mellon
Trust Company, N.A.), as trustee, as amended, amended and restated, restated, supplemented or otherwise modified from time
to time, (ii) the Convertible Senior Notes due 2020, (iii)
any Debt of the Corporation and/or its subsidiaries Incurred pursuant to the Credit Agreement in an aggregate original principal
amount not to exceed $60,000,000 outstanding at any time, plus any accretion pursuant to the terms of the Credit Agreement, (iv)
debt Incurred in connection with that certain Amended and Restated Cadiz – Fenner Valley Farm Lease, dated as of February
8, 2016, entered into among Fenner Valley Farm, LLC, the Corporation and the other signatories thereto, and
(v) any Debt Incurred under any credit agreement, loan, note or indenture governing the Debt Incurred by the Corporation and/or
its subsidiaries to Refinance, in whole or in part, any other Existing Debt then outstanding; provided, however,
that the principal amount of such Refinanced Debt (or accreted value, in the case of such Refinanced Debt issued at a discount)
does not exceed the principal amount (or accreted value, as the case may be) of the Debt so Refinanced, plus the amount of accrued
and unpaid interest on the Debt so Refinanced, any premium paid to holders of the Debt so Refinanced and reasonable expenses (including
underwriting discounts) Incurred in connection with the Refinancing of such Debt.

 

(aa) “Farming
Project” shall have the meaning set forth in Section 4(b)(ii)(B)(2).

 

(bb) “GAAP”
means generally accepted accounting principles in the United States of America, as in effect from time to time.

 

    4

     

    

 

(cc) “Guarantee
Obligation” means, with respect to any Person (the “Guaranteeing Person”), any obligation, including
a reimbursement, counterindemnity or similar obligation, of the Guaranteeing Person that guarantees or in effect guarantees, or
which is given to induce the creation of a separate obligation by another Person (including any bank under any letter of credit)
that guarantees or in effect guarantees, any Debt, leases, dividends or other obligations (the “Primary Obligations”)
of any other third Person (the “Primary Obligor”) in any manner, whether directly or indirectly, including any
obligation of the Guaranteeing Person, whether or not contingent, (i) to purchase any such Primary Obligation or any property constituting
direct or indirect security therefor, (ii) to advance or supply funds (1) for the purchase or payment of any such Primary Obligation
or (2) to maintain working capital or equity capital of the Primary Obligor or otherwise to maintain the net worth or solvency
of the Primary Obligor, (iii) to purchase property, securities or services primarily for the purpose of assuring the owner of any
such Primary Obligation of the ability of the Primary Obligor to make payment of such Primary Obligation or (iv) otherwise to assure
or hold harmless the owner of any such Primary Obligation against loss in respect thereof; provided, however, that
the term Guarantee Obligation shall not include endorsements of instruments for deposit or collection in the ordinary course of
business. The amount of any Guarantee Obligation of any Guaranteeing Person shall be deemed to be the maximum amount for which
such Guaranteeing Person may be liable pursuant to the terms of the instrument embodying such Guarantee Obligation, unless such
Primary Obligation and the maximum amount for which such Guaranteeing Person may be liable are not stated or determinable, in which
case the amount of such Guarantee Obligation shall be such Guaranteeing Person’s maximum reasonably anticipated liability
in respect thereof as determined by the Guaranteeing Person in good faith.

 

(dd) “Hedging
Obligations” mean, with respect to any Person, the obligations of such Person pursuant to any Interest Rate Agreement,
Currency Agreement or Commodity Price Protection Agreement, as amended, amended and restated, restated, supplemented or otherwise
modified from time to time.

 

(ee) “Incur”
means, with respect to any Debt or other obligation of any Person, to create, issue, incur (including by conversion, exchange or
otherwise), assume, guarantee or otherwise become liable in respect of such Debt or other obligation on the balance sheet of such
Person (and “Incurrence,” “Incurred” and “Incurring” will have meanings
correlative to the foregoing); provided that a change in GAAP that results in an obligation of such Person that exists at
such time becoming Debt will not be deemed an Incurrence of such Debt. Accrual of interest, the accretion of accreted value, the
payment of interest in the form of additional Debt and increases in Debt outstanding solely as a result of fluctuations in the
exchange rate of currencies will not be deemed to be an Incurrence of Debt. Any Debt issued at a discount (including Debt on which
interest is payable through the issuance of additional Debt) will be deemed Incurred at the time of original issuance of the Debt
at the accreted amount thereof.

 

(ff) “Interest
Rate Agreement” means, with respect to any Person, any interest rate protection agreement, interest rate swaps, caps,
floors or collars, option, future or derivative agreements or arrangements and similar agreements or arrangements and/or other
types of hedging agreements as of which such Person is a party or beneficiary designed to hedge interest rate risk of such Person,
as amended, amended and restated, restated, supplemented or otherwise modified from time to time.

 

(gg) “Lien”
means any security interest, pledge, lien or other encumbrance.

 

(hh) “Liquidation”
shall have the meaning set forth in Section 5(a).

 

(ii) “Liquidation
Junior Stock” shall mean (i) at any time prior to the Mandatory Conversion Date, the Common Stock and any outstanding
series of Preferred Stock provided for or fixed pursuant to the provisions of the Certificate of Incorporation ranking junior to
Series 1 Preferred Stock as to the payment of the Liquidation Value upon a Liquidation and (ii) at any time after the Mandatory
Conversion Date, any outstanding series of Preferred Stock provided for or fixed pursuant to the provisions of the Certificate
of Incorporation ranking junior to the Series 1 Preferred Stock upon a Liquidation.

 

    5

     

    

 

(jj) “Liquidation
Parity Stock” shall mean (i) at any time prior to the Mandatory Conversion Date, any outstanding series of Preferred
Stock provided for or fixed pursuant to the provisions of the Certificate of Incorporation ranking pari passu to the Series
1 Preferred Stock as to the payment of the Liquidation Value upon a Liquidation and (ii) at any time after the Mandatory Conversion
Date, any outstanding series of Preferred Stock provided for or fixed pursuant to the provisions of the Certificate of Incorporation
ranking pari passu to the Series 1 Preferred Stock upon a Liquidation.

 

(kk) “Liquidation
Proceeds” shall mean the assets of the Corporation legally available for distribution to its stockholders upon a Liquidation.

 

(ll) “Liquidation
Senior Stock” shall mean (i) at any time prior to the Mandatory Conversion Date, any outstanding series of Preferred
Stock provided for or fixed pursuant to the provisions of the Certificate of Incorporation ranking senior to the Series 1 Preferred
Stock as to the payment of the Liquidation Value upon a Liquidation and (ii) at any time after the Mandatory Conversion Date, any
outstanding series of Preferred Stock provided for or fixed pursuant to the provisions of the Certificate of Incorporation ranking
senior to the Series 1 Preferred Stock upon a Liquidation.

 

(mm) “Liquidation
Value” shall mean, with respect to any share of Series 1 Preferred Stock (i) on any given date prior to the Mandatory
Conversion Date, $2,734.09 per share (as adjusted for any (A) dividend in respect of any class or series of stock of the Corporation
in shares of Series 1 Preferred Stock, (B) subdivision, whether by reclassification or recapitalization, of the outstanding shares
of Series 1 Preferred Stock into a greater number of shares of Series 1 Preferred Stock, or (C) combination, whether by reclassification
or recapitalization, of the outstanding shares of Series 1 Preferred Stock into a lesser number of shares of Series 1 Preferred
Stock), and (ii) on any given date on or after the Mandatory Conversion Date, $0.00 per share.

 

(nn) “Mandatory
Conversion” shall have the meaning set forth in Section 7(b).

 

(oo) “Mandatory
Conversion Date” shall have the meaning set forth in Section 7(b).

 

(pp) “NASDAQ”
shall mean the Nasdaq Stock Market or any successor national securities exchange (or other applicable securities exchange or quotation
system) or any other national securities exchange on which shares of Common Stock are listed from time to time.

 

(qq) “Northern
Pipeline Project” shall mean the water conservation project of the Corporation utilizing the existing idle natural gas
pipeline that extends northwest from the Corporation’s property terminating in Barstow, California, and a further 124-mile
segment connecting such pipeline from Barstow to Wheeler Ridge, California for which the Corporation has entered into a purchase
agreement, and all associated well-field and pumping stations.

 

(rr) “Notice
of Conversion” shall have the meaning set forth in Section 7(a).

 

(ss) “Optional
Conversion Date” shall have the meaning set forth in Section 7(a).

 

(tt) “Original
Issue Date” shall mean the first date on which one or more shares of Series 1 Preferred Stock is/are issued by the Corporation.

 

    6

     

    

 

(uu) “Person”
shall mean an individual or corporation, partnership, trust, incorporated or unincorporated association, joint venture, limited
liability company, joint stock company, government (or an agency or subdivision thereof) or other entity of any kind.

 

(vv) “Preferred
Stock” shall have the meaning set forth in the recitals.

 

(ww) “Redemption
Date” shall have the meaning set forth in Section 6.

 

(xx) “Redemption
Notice” shall have the meaning set forth in Section 6.

 

(yy) “Redemption
Notice Date” shall have the meaning set forth in Section 6.

 

(zz) “Redemption
Price” shall have the meaning set forth in Section 6.

 

(aaa) “Refinance”
means, in respect of any Debt, to refinance, extend (including pursuant to any defeasance or discharge mechanism), renew, refund,
repay, prepay, redeem, defease or retire, or to issue Debt in exchange or replacement for, such Debt in whole or in part. “Refinanced”
and “Refinancing” will have correlative meanings.

 

(bbb) “Required
Holders” means the holders of at least a majority of the outstanding shares of Series 1 Preferred Stock.

 

(ccc) “Securities
Act” shall mean means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.

 

(ddd) “Series
1 Preferred Stock” shall have the meaning set forth in Section 1.

 

(eee) “Share
Delivery Date” shall have the meaning set forth in Section 7(d).

 

(fff) “Southern
Pipeline Project” shall mean the water conservation project of the Corporation using its 43-mile southerly right-of-way,
including pipeline, well field and related water distribution, pumping facilities, water treatment and associated power facilities.

 

(ggg) “Trading
Day” shall mean any day on which NASDAQ is open for business and on which shares of Common Stock may be traded (other
than a day on which NASDAQ is scheduled to or does close prior to its regular weekday closing time).

 

(hhh) “Transfer
Agent” shall mean Continental Stock Transfer & Trust Company, New York, New York, the current transfer agent of the
Corporation, with a mailing address of 1 State Street, 30th Floor, New York, New York 10004, and includes any successor
transfer agent of the Corporation.

 

(iii) “Voting
Rate” shall mean 301.98, as such amount may be adjusted pursuant to Section 8.

 

(jjj) “Water
Projects” shall have the meaning set forth in Section 4(b)(ii)(B)(1).

 

Section 3. Dividends.

 

(a) Prior
to the Mandatory Conversion Date. Except as provided in Section 3(b), the holders of outstanding shares of Series 1
Preferred Stock shall not be entitled to share in any dividends or distributions of any kind or nature whatsoever, and in furtherance
thereof, shall not have any dividend or distribution privileges of any kind or nature whatsoever.

 

    7

     

    

 

(b) After
the Mandatory Conversion Date. After the Mandatory Conversion Date and for so long as any shares of Series 1 Preferred Stock
shall be outstanding, subject to applicable law and the rights of the holders of any outstanding shares of Dividend Senior Stock,
the holders of outstanding shares of Series 1 Preferred Stock shall be entitled to receive dividends, when, as and if declared
by the Board of Directors on the then outstanding shares of Dividend Parity Stock, on a pari passu basis with the holders
of the then outstanding shares of Dividend Parity Stock and in preference and prior to the holders of any then outstanding shares
of Dividend Junior Stock, in an amount per then outstanding share of Series 1 Preferred Stock determined by multiplying (i) the
dividend amount per then outstanding share of Common Stock being declared by (ii) the Conversion Rate, with each share of Series
1 Preferred Stock receiving such dividend on an as converted to Common Stock basis (without regard to any limitation or restriction
on such conversion); provided, that no dividend shall be declared and paid or set apart for payment on the then outstanding
shares of Common Stock unless a dividend shall also be declared and paid or set apart for payment on the then outstanding shares
of Series 1 Preferred Stock. Notwithstanding the foregoing, to the extent that the right of a holder of Series 1 Preferred Stock
to receive a dividend consisting of shares of Common Stock or Common Stock Equivalents would result in such holder and such holder’s
Attribution Parties exceeding such holder’s Beneficial Ownership Limitation, then such holder shall, to the fullest extent
permitted by applicable law, not be entitled to receive such dividend to the extent of such Beneficial Ownership Limitation (and
shall not be entitled to Beneficially Own such shares of Common Stock or Common Stock Equivalents as a result of such dividend
to the extent of any such excess) and such dividend to such extent shall be held in abeyance for the benefit of such holder until
such time or times, if ever, as such holder’s right thereto would not result in such holder and such holder’s Attribution
Parties exceeding such holder’s Beneficial Ownership Limitation, at which time or times such dividend (and any dividend consisting
of Common Stock or Common Stock Equivalents declared on such initial dividend or on any subsequent dividend held similarly in abeyance
to the same extent as if there had been no such limitation) shall be paid to such holder.

 

Section 4. Voting
Rights.

 

(a) General.
Except as provided by this Certificate of Designation or applicable law, from and after the Original Issue Date and prior to the
Mandatory Conversion Date, each holder of a share of Series 1 Preferred Stock, as such, shall be entitled to the number of votes
determined by multiplying the Voting Rate by each outstanding share of Series 1 Preferred Stock held of record by such holder on
all matters on which stockholders are generally entitled to vote; provided, however, that in no event shall a holder
of Series 1 Preferred Stock, together with such holder’s Attribution Parties, be entitled to a number of votes in excess
of such holder’s Beneficial Ownership Limitation. After the Mandatory Conversion Date, except as otherwise required by applicable
law, each holder of a share of Series 1 Preferred Stock, as such, shall not be entitled to vote and shall not be entitled to any
voting powers in respect thereof.

 

(b) Protective
Provisions. From and after the Original Issue Date and prior to the Mandatory Conversion Date, for so long as any shares of
Series 1 Preferred Stock shall be outstanding, the Corporation shall not, at any time or from time to time, without the prior vote
or written consent of the Required Holders, voting separately as a single class:

 

(i) amend,
alter or repeal any provision of the Certificate of Incorporation, if such amendment, alteration or repeal would alter or change
the powers, preferences or special rights of the Series 1 Preferred Stock so as to affect them adversely;

 

(ii) directly
or indirectly, Incur (or permit any of its subsidiaries to Incur) any Debt other than (A) any Existing Debt and (B) up to an aggregate
of $600,000,000 of Debt related to (1) the Southern Pipeline Project or Northern Pipeline Project, including water storage (collectively,
the “Water Projects”), (2) the establishment of related infrastructure and farming costs for developing agriculture
on land owned by the Corporation and its subsidiaries (the “Farming Project”), (3) working capital for the Water
Projects, the Farming Project or general corporate purposes, and (4) a Refinancing of any of the Debt described in the foregoing
clauses (1) – (3);

 

    8

     

    

 

(iii) enter
into any transaction or series of related transactions (including, without limitation, the purchase, sale, lease, transfer or exchange
of property or assets of any kind or the rendering of services of any kind) with any Affiliate, except (A) transactions between
the Corporation and its subsidiaries or between or among the Corporation’s subsidiaries and (B) transactions approved by
a majority of the Corporation’s independent directors and a majority of the members of the Board of Directors as no less
favorable to the Corporation or its subsidiaries than would be obtainable in a comparable arm’s length transaction between
fully informed, willing unaffiliated parties who are under no compulsion to act;

 

(iv) issue
any additional shares of Series 1 Preferred Stock (other than as contemplated by the Exchange Agreements);

 

(v) authorize,
create or issue any additional class or series of Liquidation Senior Stock or Liquidation Parity Stock other than the authorization,
creation or issuance of any additional class or series of Liquidation Senior Stock or Liquidation Parity Stock in one or more financing
transactions for the purpose of financing the Northern Pipeline Project and the Southern Pipeline Project, the gross cash proceeds
of which shall be offset against, and shall not exceed in the aggregate, the $600,000,000 limit of Debt permitted to be Incurred
pursuant to Section 4(b)(ii)(B); or

 

(vi) consummate
a Liquidation.

 

Section 5. Liquidation.

 

(a) Prior
to the Mandatory Conversion Date. In the event of any voluntary or involuntary liquidation, dissolution or winding up of the
Corporation (a “Liquidation”), from and after the Original Issue Date and prior to the Mandatory Conversion
Date, subject to applicable law and the rights of the holders of any outstanding shares of Liquidation Senior Stock, each holder
of any outstanding shares of Series 1 Preferred Stock shall be entitled to receive, together with the holders of any Liquidation
Parity Stock, an amount in cash equal to the aggregate Liquidation Value of all shares of Series 1 Preferred Stock held by such
holder, to be paid out of the Liquidation Proceeds, before any payment shall be made to the holders of Liquidation Junior Stock
by reason of their ownership thereof. If upon any Liquidation the remaining assets of the Corporation available for distribution
to its stockholders shall be insufficient to pay the holders of shares of Series 1 Preferred Stock and the holders of any Liquidation
Parity Stock the full preferential amount to which they are entitled, (i) the holders of shares of Series 1 Preferred Stock and
the holders of any Liquidation Parity Stock shall share ratably in any distribution of the Liquidation Proceeds in proportion to
the respective full preferential amounts which would otherwise be payable to a holder of shares of Series 1 Preferred Stock or
Liquidation Parity Stock in respect of such shares if all preferential amounts payable on or with respect to such shares in a Liquidation
were paid in full, and (ii) the Corporation shall not make or agree to make any payments to the holders of Liquidation Junior Stock.
In the event of a Liquidation prior to the Mandatory Conversion Date, in addition to and after payment in full of all preferential
amounts required to be paid to the holders of Series 1 Preferred Stock upon a Liquidation prior to the Mandatory Conversion Date
under the foregoing provisions of this Section 5(a), the holders of shares of Series 1 Preferred Stock then outstanding
shall be entitled to participate with the holders of shares of Liquidation Junior Stock then outstanding, pro rata as a
single class based on the number of outstanding shares of Liquidation Junior Stock on an as-converted into Common Stock basis held
by each holder as of immediately prior to the Liquidation, in the distribution of all the remaining Liquidation Proceeds available
for distribution to its stockholders.

 

    9

     

    

 

(b) After
the Mandatory Conversion Date. In the event of a Liquidation, after the Mandatory Conversion Date, for so long as any shares
of Series 1 Preferred Stock shall be outstanding, the holders of shares of Series 1 Preferred Stock then outstanding shall be entitled
to participate with the holders of shares of Liquidation Junior Stock then outstanding, pro rata as a single class based
on the number of outstanding shares of Liquidation Junior Stock on an as-converted into Common Stock basis held by each holder
as of immediately prior to the Liquidation, in the distribution of all the remaining Liquidation Proceeds available for distribution
to its stockholders.

 

(c) Notice
of Liquidation. In the event of any Liquidation, the Corporation shall, within ten (10) days of the date the Board of Directors
approves such action, or no later than twenty (20) days of any stockholders’ meeting called to approve such action, whichever
is earlier, give each holder of shares of Series 1 Preferred Stock written notice of the proposed action. Such written notice shall
describe the material terms and conditions of such proposed action, including a description of the stock, cash, and property to
be received by the holders of shares of Series 1 Preferred Stock upon consummation of the proposed action and the date of delivery
thereof. If any material change in the facts set forth in the initial notice shall occur, the Corporation shall promptly give written
notice to each holder of shares of Series 1 Preferred Stock of such material change. A merger or consolidation of the Corporation
with or into any other corporation or other entity, or a sale, lease, exchange, exclusive license or other disposition of all or
any part of the assets of the Corporation and/or any of its subsidiaries (which shall not in fact result in the Liquidation of
the Corporation and the distribution of assets to its stockholders) shall not be deemed to be a Liquidation for purposes of this
Section 5.

 

Section 6. Redemption.
Each outstanding share of Series 1 Preferred Stock shall be redeemable, in whole or in part, at the option of the Corporation,
exercisable as hereinafter provided in this Section 6, at any time and from time to time after the first (1st)
anniversary of the Original Issue Date and prior to the Mandatory Conversion Date, provided that any redemption hereunder
by the Corporation as to each holder of Series 1 Preferred Stock shall, to the fullest extent permitted by applicable law, be for
a number of shares equal to no less than twenty-five percent (25%) of the number of shares of Series 1 Preferred Stock originally
issued to such holder. Each share of Series 1 Preferred Stock subject to redemption pursuant to this Section 6 shall be
redeemed by the Corporation in cash at a price per share equal to the Conversion Rate then in effect multiplied by $13.50,
(as adjusted for any for any (A) dividend in respect of any class or series of stock of the Corporation in shares of Series 1 Preferred
Stock, (B) subdivision, whether by reclassification or recapitalization, of the outstanding shares of Series 1 Preferred Stock
into a greater number of shares of Series 1 Preferred Stock, or (C) combination, whether by reclassification or recapitalization,
of the outstanding shares of Series 1 Preferred Stock into a lesser number of shares of Series 1 Preferred Stock) (the “Redemption
Price”). The Corporation may exercise its option to redeem all or any portion of the outstanding shares of Series 1 Preferred
Stock pursuant to this Section 6 by delivering a written notice thereof to all, but not less than all, of the holders of
outstanding shares of Series 1 Preferred Stock (such notice, the “Redemption Notice”, and the date on which
all such holders receive such notice, the “Redemption Notice Date”). Each Redemption Notice shall be irrevocable
and shall (a) state the date on which the redemption shall occur (the “Redemption Date”), which date shall not
be less than thirty (30) days following the Redemption Notice Date, (b) state the aggregate number of outstanding shares of Series
1 Preferred Stock to be redeemed on the Redemption Date and (c) state the aggregate number of outstanding shares of Series 1 Preferred
Stock to be redeemed from each holder of Series 1 Preferred Stock (which shall be effected pro rata based on the number
of outstanding shares of Series 1 Preferred Stock held by such holder bears to the number of outstanding shares of Series 1 Preferred
Stock held by all holders of Series 1 Preferred Stock). Notwithstanding the receipt of any Redemption Notice, for the avoidance
of doubt, a holder of Series 1 Preferred Stock may convert such holder’s shares of Series 1 Preferred Stock into shares of
Common Stock pursuant to the terms of Section 7(a) at any time prior to the Redemption Date.

 

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Section 7. Conversion.

 

(a) Optional
Conversion. Each outstanding share of Series 1 Preferred Stock shall be convertible, at any time and from time to time from
and after the Original Issue Date and prior to the Mandatory Conversion Date, at the option of the holder thereof, into that number
of shares of Common Stock (subject to the limitations set forth in Section 7(c)) as is determined by multiplying one (1)
by the Conversion Rate then in effect. Any holder of Series 1 Preferred Stock desiring to effect such conversion shall deliver
to the Corporation a notice of conversion in the form attached hereto as Annex A (a “Notice of Conversion”),
which Notice of Conversion shall specify the number of shares of Series 1 Preferred Stock to be converted, the number of outstanding
shares of Series 1 Preferred Stock held by such holder immediately prior to such conversion, the number of outstanding shares of
Series 1 Preferred Stock held by such holder immediately following such conversion, and, the date on which such conversion is to
be effected, which conversion date shall not be prior to the date on which the applicable Notice of Conversion is given to the
Corporation (the “Optional Conversion Date”). No ink-original Notice of Conversion shall be required, nor shall
any medallion guarantee (or other type of guarantee or notarization) of any Notice of Conversion be required. The calculations
and entries set forth in a Notice of Conversion shall, to the fullest extent permitted by applicable law, control and be conclusive
and binding in the absence of manifest or mathematical error.

 

(b) Mandatory
Conversion. On the fifth (5th) anniversary of the Original Issue Date (the “Mandatory Conversion Date”),
each outstanding share of Series 1 Preferred Stock shall automatically convert (subject to the limitations set forth in Section
7(c)) into that number of shares of Common Stock as is determined by multiplying one (1) by the Conversion Rate in effect on
the Mandatory Conversion Date (the “Mandatory Conversion”); provided, however, that to the extent
any shares of Series 1 Preferred Stock remain outstanding after the Mandatory Conversion Date (as a result of the limitations set
forth in Section 7(c)), each outstanding share of Series 1 Preferred Stock shall continue to be convertible, at any time
and from time to time, at the option of the holder thereof, pursuant to the provisions of this Certificate of Designation otherwise
applicable to the Series 1 Preferred Stock and set forth in Section 7(a).

 

(c) Limitations
on the Right to Convert. Notwithstanding anything contained herein to the contrary, no outstanding share of Series 1 Preferred
Stock shall be converted pursuant to this Section 7 to the extent that, after giving effect to a conversion pursuant to
this Section 7, the holder of such shares of Series 1 Preferred Stock, together with such holder’s Attribution Parties,
would, as determined by such holder, in its sole discretion, and reflected in a written notice given to the Corporation no later
than five (5) days prior to the Conversion Date (the “Conversion Limitation Determination”), Beneficially Own
in excess of the Beneficial Ownership Limitation. A holder’s submission of a Conversion Limitation Determination shall be
deemed to be such holder’s determination and representation to the Corporation that the proposed conversion of the number
of outstanding shares of Series 1 Preferred Stock set forth in the Conversion Limitation Determination is consistent with the foregoing
sentence, and such determination shall, to the fullest extent permitted by applicable law, be final, binding and conclusive and
the Corporation shall have no obligation to verify or confirm the accuracy of such determination or representation. For purposes
of this Section 7(c), in determining the number of outstanding shares of Common Stock, a holder of outstanding shares of
Series 1 Preferred Stock may rely on the number of outstanding shares of Common Stock as stated in the most recent of the following:
(i) the Corporation’s most recent periodic or annual report filed with the Commission, as the case may be; (ii) a more recent
public announcement by the Corporation; or (iii) a more recent written notice by the Corporation or the Transfer Agent setting
forth the number of shares of Common Stock outstanding.  Upon the written or oral request (which may be via electronic transmission)
of a holder of outstanding shares of Series 1 Preferred Stock, the Corporation shall within one (1) Trading Day confirm orally
and in writing to such holder the number of shares of Common Stock then outstanding.  In any case, the number of outstanding
shares of Common Stock shall be determined as provided in this Section 7 after giving effect to the conversion or exercise
of Common Stock Equivalents, including the outstanding shares of Series 1 Preferred Stock, held by such holder or such holder’s
Attribution Parties since the date as of which such number of outstanding shares of Common Stock was reported.

 

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(d) Delivery
of Shares of Common Stock. Not later than two (2) Trading Days after the relevant Conversion Date (the “Share Delivery
Date”), the Corporation shall deliver, or cause to be delivered, to the converting holder, the number of shares of Common
Stock to which such holder is entitled pursuant to this Section 7. The Person(s) entitled to receive shares of Common Stock
issuable upon conversion of shares of Series 1 Preferred Stock pursuant to this Section 7 shall be treated for all purposes
as the record holder(s) of such shares of Common Stock as of the relevant Conversion Date. The Person(s) entitled to receive shares
of Common Stock upon conversion pursuant to this Section 7 shall
not be entitled to any rights as a holder of Common Stock with respect to shares issuable upon conversion, including, among other
things, the right to vote and receive dividends and notices of stockholder meetings, until the relevant Conversion Date.

 

(e) Transfer
Taxes and Expenses. The issuance of shares of Common Stock upon conversion of outstanding shares of Series 1 Preferred Stock
pursuant to this Certificate of Designation shall be made without charge to any holder thereof for any documentary stamp or similar
taxes that may be payable in respect of the issue or delivery of such shares of Common Stock; provided, however,
that the Corporation shall not be required to pay any tax that may be payable in respect of any transfer involved in the issuance
and delivery of any shares of Common Stock upon the conversion of outstanding shares of Series 1 Preferred Stock pursuant to this
Certificate of Designation in a name other than that of the holder of the outstanding shares of Series 1 Preferred Stock converted
pursuant to this Certificate of Designation, and the Corporation shall not be required to issue or deliver such shares of Common
Stock unless or until the Person(s) requesting the issuance thereof shall have paid to the Corporation the amount of such tax or
shall have established to the satisfaction of the Corporation that such tax has been paid. The Corporation shall pay all Transfer
Agent fees required for same-day processing of any Notice of Conversion or in connection with the Mandatory Conversion and all
fees to the Depository Trust Company (or another established clearing corporation performing similar functions) required for, if
applicable, same-day electronic delivery of shares of Common Stock upon the conversion of outstanding shares of Series 1 Preferred
Stock pursuant to this Certificate of Designation.

 

(f) Fractional
Shares of Common Stock. The Corporation shall not be obligated to deliver to the holders of Series 1 Preferred Stock any fraction(s)
of a share of Common Stock upon a conversion of outstanding shares of Series 1 Preferred Stock pursuant to this Section 7,
the Corporation being entitled to round down to the nearest whole share of Common Stock if the fraction is less than one-half (0.5)
of one share of Common Stock, and round up to the nearest whole share of Common Stock if the fraction is equal to or greater than
one-half (0.5) of one share of Common Stock.

 

Section 8. Adjustments
to Conversion Rate and Voting Rate. In the event that the Corporation shall, at any time for from time to time after the Original
Issue Date and while any shares of Series 1 Preferred Stock are outstanding, (a) pay a dividend in respect of any class or series
of stock of the Corporation in shares of Common Stock or Common Stock Equivalents (other than a dividend in accordance with Section
3(b)), (b) subdivide, whether by reclassification or recapitalization, the outstanding shares of Common Stock into a greater
number of shares of Common Stock, or (c) combine, whether by reclassification or recapitalization, the outstanding shares of Common
Stock into a smaller number of shares of Common Stock, the Conversion Rate and the Voting Rate, in each case, as in effect immediately
prior to the effectiveness of such action shall be adjusted by multiplying such Conversion Rate or the Voting Rate (as applicable)
by a fraction, the numerator of which is the total number of shares of Common Stock outstanding (including, for this purpose, all
shares of Common Stock then issuable upon the conversion or exercise of all outstanding Common Stock Equivalents) immediately prior
to the effectiveness of such action, and the denominator of which is the total number of shares of Common Stock outstanding (including,
for this purpose, all shares of Common Stock then issuable upon the conversion or exercise of all outstanding Common Stock Equivalents)
immediately after the effectiveness of such action. Any adjustment pursuant to this Section 8 shall be given effect (i)
in the case of a dividend (other than a dividend in accordance with Section 3(b)), upon the payment of such dividend as
of the record date for determining the holders of outstanding stock entitled to receive such dividend or (ii) in the case of a
subdivision or combination, whether by reclassification or recapitalization, upon the effective date of such subdivision or combination.

 

    12

     

    

 

Section 9. Transfer
Rights. Subject to applicable securities laws and any registration rights agreement between the holder thereof and the Corporation,
the shares of Series 1 Preferred Stock and any share of Common Stock issued upon the conversion or redemption of any share of Series
1 Preferred Stock may be freely sold or otherwise transferred by the holder of such shares.

 

Section 10. Notices.

 

(a)
Any notice or other communication required to be given by the Corporation to any holder of Series 1 Preferred Stock pursuant to
this Certificate of Designation shall be (i) in writing, (ii) directed to the holder’s mailing or electronic mail, as applicable,
address as it appears on the records of the Corporation and (iii) delivered via (A) United States mail, (B) courier service, or
(C) electronic transmission.

 

(b) Any
notice or other communication required to be given by any holder of Series 1 Preferred Stock to the Corporation pursuant to this
Certificate of Designation shall be (i) in writing, (ii) directed to (A) the Corporation’s principal place of business or
its registered agent in the State of Delaware or (B) the electronic mail address of the Corporation’s Chief Financial Officer
or Secretary, as applicable, and (iii) delivered via (A) United States mail, (B) courier service, or (C) electronic transmission.

 

(c) Any
notice or other communication given by (i) United States mail shall be deemed to have been given when deposited, (ii) courier service
shall be deemed to have been given upon the earlier of the time of receipt or when such notice is left at the relevant address,
and (iii) electronic mail when directed to the relevant electronic mail address.

 

Section 11. Reservation
of Shares.

 

(a) The
Corporation shall at all times keep reserved, free from preemptive or subscription rights, out of its authorized but unissued shares
of Common Stock, or shares held in treasury, sufficient shares of Common Stock to provide for the conversion of Series 1 Preferred
Stock as required by this Certificate of Designation from time to time as shares of Series 1 Preferred Stock are presented for
conversion.

 

(b) Notwithstanding
the foregoing, the Corporation shall be entitled to deliver upon conversion of outstanding shares of Series 1 Preferred Stock pursuant
to this Certificate of Designation shares of Common Stock reacquired and held in the treasury of the Corporation (in lieu of the
issuance of authorized and unissued shares of Common Stock), so long as any such treasury shares are free and clear of all Liens.

 

(c) All
Common Stock delivered upon conversion of outstanding shares of Series 1 Preferred Stock shall be duly authorized, validly issued,
fully paid and non-assessable, free and clear of all Liens.

 

Section 12. Status
of Converted, Redeemed or Repurchased Shares. If any share of Series 1 Preferred Stock is converted, redeemed, repurchased
or otherwise acquired by the Corporation, in any manner whatsoever, the share of Series 1 Preferred Stock so acquired shall, to
the fullest extent permitted by applicable law, be retired and cancelled upon such acquisition, and shall not be reissued as a
share of Series 1 Preferred Stock. Any share of Series 1 Preferred Stock so acquired shall, upon its retirement and cancellation,
and upon the taking of any action required by law, become an authorized but unissued share of Preferred Stock undesignated as to
series and may be reissued a part of a new series of Preferred Stock, subject to the conditions and restrictions set forth in the
Certificate of Incorporation or imposed by the General Corporation Law of the State of Delaware.

 

Section 13. Waiver.
The powers (including voting powers), if any, of the Series 1 Preferred Stock and the preferences and relative, participating,
optional, special or other rights, if any, and the qualifications, limitations or restrictions, if any, of the Series 1 Preferred
Stock may be waived as to all shares of Series 1 Preferred Stock in any instance (without the necessity of calling, noticing or
holding a meeting of stockholders) by the written consent or agreement of the holders of at least a majority of the shares of Series
1 Preferred Stock then outstanding, consenting or agreeing separately as a single class.”

 

[Signature Page Follows]

 

    13

     

    

 

IN WITNESS WHEREOF,
the undersigned has executed this Certificate of Designation of Series 1 Preferred Stock of Cadiz Inc. on this 5th day
of March, 2020.

 

	 	CADIZ INC.

 

	 	By:	
	 	Name: 	Tim Shaheen
	 	Title:	 Chief Financial Officer and Secretary

 

[Certificate of
Designation of Series 1 Preferred Stock]

 

      

     

    

 

ANNEX A

 

NOTICE OF CONVERSION

OF

SERIES 1 PREFERRED STOCK

OF

CADIZ INC.

 

The undersigned, constituting the holder
of record of the number of outstanding shares of Series 1 Preferred Stock (the “Series 1 Preferred Stock”),
par value $0.01 per share, of Cadiz Inc., a Delaware corporation (the “Corporation”), indicated below, hereby
elects to convert such number of shares of Series 1 Preferred Stock listed below (which number of shares does not exceed the number
of shares of Series 1 Preferred Stock held of record by the undersigned) into shares of common stock, par value $0.01 per share,
of the Corporation (the “Common Stock”), pursuant to the Certificate of Designation of Series 1 Preferred Stock
of the Corporation, as the same may be amended or amended and restated from time to time (the “Certificate of Designation”).

 

If shares of Common Stock are to be issued
upon the conversion of the number of shares of Series 1 Preferred Stock set forth below pursuant to the Certificate of Designation
(“Conversion”) in the name of a person other than the undersigned, the undersigned agrees that it shall pay
all transfer taxes payable with respect thereto and is delivering herewith such certificates and opinions as may be required by
the Corporation in connection therewith.

 

	No. of shares of Series 1
    Preferred Stock to be Converted:	 
	 	 
	Aggregate No. of shares of Series 1 Preferred Stock held of
    record:	 
	 	 
	Anticipated No. of shares of Common Stock to be issued upon
    Conversion: 	 
	 	 
	Anticipated No. of shares of Series 1 Preferred Stock held of
    record subsequent to Conversion:	 

 

	Address for delivery:	 
	 	 	 
	 	 	 
	 	 	 

 

	Or	 	 
	 	 	 
	DWAC Instructions:	 	 

	Broker no:	 	 
	Account no:	 	 
	 	 	 
	HOLDER:	 	 

 

	By:	 	 
	Name: 	 	 
	Title:	 	 

 

     

     

    

 

EXHIBIT
B

 

FORM
OF REGISTRATION RIGHTS AGREEMENT

 

(see
attached)

 

     

     

    

 

EXECUTION VERSION

 

 

 

 

 

 

 

REGISTRATION RIGHTS AGREEMENT

 

by and among

 

CADIZ INC.

 

and

 

EACH HOLDER OF REGISTRABLE SECURITIES

REFLECTED ON THE SIGNATURE PAGE HEREOF

 

March 5, 2020

 

 

 

 

 

 

 

    

     

    

 

	Section 1.	Certain Definitions	1
	Section 2.	Initial Shelf Registration and Demand Registration Rights	3
	Section 3.	Piggy-Back Registration Rights	5
	Section 4.	Selection of Underwriters	6
	Section 5.	Blackout Periods	6
	Section 6.	Holdback	6
	Section 7.	Ineligibility to Effect a Demand Registration	7
	Section 8.	Intentionally Omitted	7
	Section 9.	Registration Procedures	7
	Section 10.	Registration Expenses	10
	Section 11.	Rule 144	10
	Section 12.	Covenants of Holders	10
	Section 13.	Indemnification; Contribution	10
	Section 14.	Injunctions	12
	Section 15.	Amendments and Waivers	12
	Section 16.	Notices	12
	Section 17.	Successors and Assigns	13
	Section 18.	Representations and Warranties of the Company	13
	Section 19.	Counterparts	13
	Section 20.	Descriptive Headings	13
	Section 21.	Choice of Law	13
	Section 22.	Severability	13
	Section 23.	Entire Agreement	13
	Section 24.	Further Actions; Reasonable Best Efforts	13

 

    i

     

    

 

This Registration Rights Agreement (this
“Agreement”) is made as of this 5th day of March 2020 by and among Cadiz Inc., a Delaware corporation
(the “Company”), and each holder of Registrable Securities (as defined herein) reflected on the signature page
hereto (“Holders”).

 

RECITALS:

 

WHEREAS, the Company is party to that certain
Indenture, dated as of December 10, 2015 (the “Indenture”), between the Company, as issuer, and U.S. Bank National
Association, as trustee (the “Trustee”), pursuant to which the Company issued certain 7.00% Convertible Senior
Notes due 2020 (the “Convertible Notes”);

 

WHEREAS, the Company and the Holders have
each entered into a separate Conversion and Exchange Agreement dated as of March 5, 2020 pursuant to which the Holders have agreed
to exchange a portion of the outstanding Convertible Notes for shares of a new series of preferred stock, par value $0.01 per share,
of the Company titled “Series 1 Preferred Stock” (the “Preferred Stock”), which Preferred Stock
is convertible into shares of the Company’s common stock, par value $0.01 per share (the “Common Stock”),
upon the terms and subject to the limitations and conditions set forth in the Certificate of Designations of Series 1 Preferred
Stock (the “Certificate”); and

 

WHEREAS, the Company has agreed to enter
into a registration rights agreement pursuant to which the Company shall grant the Holders registration rights with respect to
the Registrable Securities and which registration rights agreement shall, with respect to the Holders, supersede and replace the
Amended and Restated Registration Rights Agreement by and among the Company and the holders party thereto dated as of March 5,
2013 (the “2013 Registration Rights Agreement”).

 

NOW THEREFORE, for good and valuable consideration,
the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows:

 

Section 1. Certain Definitions.
For purposes of this Agreement, the following terms have the following meanings:

 

(a) “2013
Registration Rights Agreement” has the meaning specified in the Recitals hereof.

 

(b) “2019
Form 10-K” has the meaning specified in Section 2(a) hereof.

 

(c) “Affiliate”
has the meaning ascribed to such term in Rule 12b-2 of the Exchange Act.

 

(d) “Agreement”
has the meaning specified in the Preamble hereof.

 

(e) “Beneficially
Own” has the meaning ascribed to such term in Rule 13d-3 of the Exchange Act.

 

(f) “Blackout
Period” has the meaning specified in Section 5 hereof.

 

(g) “Board”
has the meaning specified in Section 5 hereof.

 

(h) “Business
Day” means a day other than a Saturday, Sunday or other day on which commercial banks are authorized to close under the
laws of the State of New York and the United States of America.

 

(i) “Certificate”
has the meaning specified in the Recitals hereof.

 

(j) “Common
Stock” has the meaning specified in the Recitals hereof.

 

(k) “Company”
has the meaning specified in the Preamble hereof.

 

(l) “Convertible
Notes” has the meaning specified in the Recitals hereof.

 

    1

     

    

 

(m) “Demand”
has the meaning specified in Section 2(b) hereof.

 

(n) “Demand
Registration” has the meaning specified in Section 2(b) hereof.

 

(o) “Effective
Date” means the date of this Agreement.

 

(p) “Exchange
Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations of the SEC thereunder, all
as the same shall be in effect at the time that reference is made thereto.

 

(q) “FINRA”
means the Financial Industry Regulatory Authority.

 

(r) “Holdback
Period” has the meaning specified in Section 6(a) hereof.

 

(s) “Holder”
has the meaning specified in the Preamble hereof, and shall include any person to whom the rights of a Holder under this Agreement
have been transferred in accordance with the provisions of this Agreement.

 

(t) “Indenture”
has the meaning specified in the Recitals hereof.

 

(u) “Ineligibility
Accommodation Period” has the meaning specified in Section 7 hereof.

 

(v) “Inspectors”
has the meaning specified in Section 9(k) hereof.

 

(w) “NASDAQ”
means the Nasdaq Stock Market, Inc.

 

(x) “NYSE”
means the New York Stock Exchange.

 

(y) “Other
Rights Holders” has the meaning specified in Section 2(h) hereof.

 

(z) “Person”
means any individual, firm, partnership, corporation (including, without limitation, a business trust), limited liability company,
joint stock company, trust, unincorporated association, joint venture or other entity, and shall include any successor (by merger
or otherwise) of any such entity.

 

(aa) “Piggy-Back Request”
has the meaning specified in Section 3(b) hereof.

 

(bb) “Piggy-Back Rights”
has the meaning specified in Section 3(a) hereof.

 

(cc) “Preferred Stock”
has the meaning set forth in the Recitals hereof.

 

(dd) “Prospectus”
means the prospectus included in any Registration Statement, as amended or supplemented by any prospectus supplement, with respect
to the terms of the offering of any portion of the Registrable Securities covered by any Registration Statement and by all other
amendments and supplements to the prospectus, including post-effective amendments and all material incorporated by reference in
such prospectus.

 

(ee) “Records” has
the meaning specified in Section 9(k) hereof.

 

(ff) “Registrable Securities”
means any and all of (i) the outstanding shares of Common Stock held by a Holder as of the date of this Agreement; (ii) the shares
of Common Stock received by Holders upon conversion of the Convertible Notes; (iii) the shares of Preferred Stock; (iv) the shares
of Common Stock received by Holders upon conversion of the Preferred Stock, and (v) any securities issuable or issued or distributed
in respect of any of the securities identified in clauses (i), (ii), (iii) and (iv) by way of stock dividend or stock split or
in connection with a combination of shares, recapitalization, reorganization, merger, consolidation or otherwise. Registrable Securities
shall cease to be Registrable Securities when and to the extent that they (x) shall have been Transferred by Holders pursuant to
an effective Registration Statement or pursuant to Rule 144; (y) shall have ceased to be outstanding; or (z) may be transferred
without restriction or limitation pursuant to Rule 144.

 

    2

     

    

 

(gg) “Registration Expenses”
means any and all reasonable out-of-pocket expenses incident to performance of or compliance with this Agreement, including, without
limitation, (i) all SEC, FINRA and securities exchange registration and filing fees, (ii) all fees and expenses of complying with
state securities or “blue sky” laws (including fees and disbursements of counsel for any underwriters in connection
with blue sky qualifications of the Registrable Securities), (iii) all processing, printing, copying, messenger and delivery expenses,
(iv) all fees and expenses incurred in connection with the listing of the Registrable Securities on any securities exchange pursuant
to Section 9(h) hereof, (v) all fees and disbursements of counsel for the Company and of its independent public accountants
(including the expenses of any special audits or comfort letters), and (vi) the reasonable fees and expenses of any special experts
retained in connection with a registration under this Agreement, but excluding (A) any underwriting discounts and commissions and
transfer taxes relating to the sale or disposition of Registrable Securities pursuant to a Registration Statement, and (B) any
fees, expenses or disbursements of counsel and other advisers to the Holders and any Other Rights Holders, other than the reasonable
fees and disbursements of one counsel to all Holders.

 

(hh) “Registration Statement”
means any registration statement (including a Shelf Registration) of the Company referred to in Section 2 or Section
3 hereof, including any Prospectus, amendments and supplements to any such registration statement, including post-effective
amendments, and all exhibits and all material incorporated by reference in any such registration statement.

 

(ii) “Rule
144” means Rule 144 under the Securities Act, or any similar or successor rules or regulations hereafter adopted by the
SEC.

 

(jj) “S-3 Eligible”
has the meaning specified in Section 2(a) hereof.

 

(kk) “SEC” means the
United States Securities and Exchange Commission and any successor federal agency having similar powers.

 

(ll) “Securities Act”
means the Securities Act of 1933, as amended, and the rules and regulations of the SEC thereunder, all as the same shall be in
effect at the time that reference is made thereto.

 

(mm) “Shelf Registration”
means a “shelf” registration statement on an appropriate form pursuant to Rule 415 under the Securities Act (or any
successor rule that may be adopted by the SEC).

 

(nn) “Transfer” means,
with respect to any security, any direct or indirect sale, transfer, assignment, hypothecation, pledge or any other disposition
of such security or any interest therein.

 

(oo) “Uncontrolled
Event” has the meaning specified in Section 5 hereof.

 

(pp) “Underwritten Offering”
means an offering in which securities of the Company are sold to an underwriter for reoffering to the public pursuant to an effective
Registration Statement under the Securities Act.

 

Section 2. Initial Shelf Registration
and Demand Registration Rights.

 

(a) As
soon as commercially reasonable following the Company’s filing of the Annual Report on Form 10-K for the fiscal year ended
December 31, 2019 (the “2019 Form 10-K”), and no later than thirty (30) days after the filing of the 2019 Form
10-K, the Company shall (i) prepare and file with the SEC (x) a Registration Statement on Form S-3 or a successor form, if the
Company is then eligible to file a Registration Statement on Form S-3 (“S-3 Eligible”), or (y) any other appropriate
form under the Securities Act for the type of offering contemplated by the Holders, if the Company is not then S-3 Eligible, or
(ii) use an existing Form S-3 filed with the SEC, in each case providing for an offering to be made on a continuous basis pursuant
to Rule 415 under the Securities Act or any successor rule thereto that covers all Registrable Securities then outstanding for
an offering to be made on a delayed or continuous basis pursuant to Rule 415 under the Securities Act or any successor rule thereto.
If permitted under the Securities Act, such Registration Statement shall be an “automatic shelf registration statement”
as defined in Rule 405 under the Securities Act. The Company shall use its best efforts to (x) cause the Shelf Registration filed
pursuant to this Section 2(a) to be declared effective by the SEC or otherwise become effective under the Securities Act
as promptly as practicable after the filing thereof and (y) keep such Shelf Registration continuously effective and in compliance
with the Securities Act and useable for the resale of Registrable Securities until such time as there are no remaining Registrable
Securities then outstanding, including by filing successive replacement or renewal Registration Statements upon the expiration
of such Shelf Registration.

 

    3

     

    

 

(b) Any
Holder may, subject to the terms hereof, request the Company in writing (each such request, a “Demand”) to effect
a registration with the SEC under and in accordance with the provisions of the Securities Act of all or part of the Registrable
Securities Beneficially Owned by such Holder (a “Demand Registration”). The Demand shall specify the aggregate
number of shares of Registrable Securities requested to be so registered on behalf of such Holder. Any request received by the
Company from a Holder as provided in this Section 2(b) shall be deemed to be a “Demand” for purposes of this
Agreement, unless the Company, in accordance with the terms of this Agreement, shall have notified such Holder in writing, prior
to its receipt of such request from such Holder, of its intention to register securities with the SEC, in which case the request
from such Holder shall be governed by Section 3 hereof, not this Section 2. All Demands to be made by a Holder pursuant
to this Section 2(b) and any notifications by the Company pursuant to the preceding sentence must be based upon a good faith
intent of such Holder or the Company, as the case may be, to effect the sale of securities pursuant to such registrations as promptly
as practicable after the date of the Demand or notification, as the case may be, in accordance with the terms of this Agreement.

 

(c) After
receipt of a Demand from a Holder, the Company shall, as soon as practicable thereafter, but in no event later than ninety (90)
days following such Demand, file and cause to be effective a Registration Statement for the Registrable Securities so requested
to be registered.

 

(d) Notwithstanding
anything in this Agreement to the contrary, the Company shall not be required to file a Registration Statement for Registrable
Securities pursuant to a Demand:

 

(i) if
the Company shall have previously effected a Demand Registration at any time during the immediately preceding ninety (90) day period;

 

(ii) if
the Company shall have previously effected a registration of Registrable Securities to be issued and sold by the Company at any
time during the immediately preceding ninety (90) day period (other than a registration on Form S-4, Form S-8 or Form S-3 (with
respect to dividend reinvestment plans and similar plans) or any successor forms thereto);

 

(iii) during
any Blackout Period;

 

(iv) during
any Ineligibility Accommodation Period;

 

(v) if
the aggregate value of the Registrable Securities to be registered pursuant to a Demand Registration does not equal at least $2,500,000;
or

 

(vi) if
the Registrable Securities that are the subject of the Demand are the subject of an effective Shelf Registration.

 

(e) The
Company shall be permitted to satisfy its obligations under this Section 2 by amending (to the extent permitted by applicable
law) any Shelf Registration previously filed by the Company under the Securities Act so that such Shelf Registration (as amended)
shall permit the disposition (in accordance with the intended methods of disposition specified as aforesaid) of all of the Registrable
Securities for which a Demand shall have been made. Notwithstanding the foregoing, the Company shall have no obligation under this
Agreement to file any Shelf Registration.

 

    4

     

    

 

(f) A
requested Demand Registration shall not be deemed to count as a Demand Registration described in Section 2(d)(ii) hereof
if: (i) such registration has not been declared effective by the SEC or does not become effective in accordance with the Securities
Act, (ii) after becoming effective, such registration is materially interfered with by any stop order, injunction or similar order
or requirement of the SEC or other governmental agency or court for any reason not attributable to a Holder and does not thereafter
become effective, (iii) the conditions to closing specified in any underwriting agreement entered into in connection with such
Demand Registration are not satisfied or waived other than by reason of an act or omission on the part of a Holder, or (iv) the
Holder making a Demand shall have withdrawn its Demand or otherwise determined not to pursue such registration, provided
that, in the case of this clause (iv), such Holder shall have reimbursed the Company for all of its out- of-pocket expenses incurred
in connection with such Demand.

 

(g) At
any time and from time to time that a Registration Statement is effective, if a Holder of Registrable Securities requests (i) the
registration under the Securities Act of additional Registrable Securities pursuant to such Registration Statement or (ii) that
such Holder be added as a selling stockholder in such Registration Statement, the Company shall as promptly as practicable amend
or supplement the Registration Statement to cover such additional Registrable Securities and/or Holder.

 

(h) If
the lead managing underwriters of an Underwritten Offering made pursuant to a Demand shall advise the Holder making a Demand in
writing (with a copy to the Company) that marketing or other factors require a limitation on the number of shares of Registrable
Securities which can be sold in such offering within a price range acceptable to the Holder, then (i) if the Company shall have
elected to include any securities to be issued and sold by the Company or sold on behalf of any of the Company’s security
holders excluding such Holder (“Other Rights Holders”) in such Registration Statement, then the Company shall
reduce the number of securities the Company shall intend to issue and sell (and, if applicable, the number of securities being
sold on behalf of the Other Rights Holders) pursuant to such Registration Statement such that the total number of securities being
sold by each such party shall be equal to the number which can be sold in such offering within a price range acceptable to such
Holder, and (ii) if the Company shall not have elected to include any securities to be issued and sold by the Company or sold on
behalf of Other Rights Holders in such Registration Statement or if the reduction referred to in the previous clause (i) shall
not be sufficient, then, the Holder shall reduce the number of Registrable Securities requested to be included in such offering
to the number that the lead managing underwriter advises can be sold in such offering within a price range acceptable to the Holder.
The Holder shall not be required to reduce the number of Registrable Securities requested to be included in any such offering until
the number of securities referred to in the previous clause (i) shall have been reduced to zero (0).

 

Section 3. Piggy-Back Registration Rights.

 

(a) At
any time on or after the date hereof, whenever the Company shall propose to file a Registration Statement under the Securities
Act relating to the public offering of securities for sale for cash, the Company shall give written notice to the Holders as promptly
as practicable, but in no event less than fifteen (15) days prior to the anticipated filing thereof, specifying the approximate
date on which the Company proposes to file such Registration Statement and the intended method of distribution in connection therewith,
and advising Holders of their right to have any or all of the Registrable Securities then Beneficially Owned by them included among
the securities to be covered by such Registration Statement (the “Piggy-Back Rights”).

 

(b) Subject
to Section 3(c) and Section 3(d) hereof, in the event that Holders have and shall elect to utilize their Piggy-Back
Rights, the Company shall include in the Registration Statement the Registrable Securities identified by the Holders in a written
request (a “Piggy-Back Request”) given to the Company not later than five (5) Business Days prior to the proposed
filing date of the Registration Statement. The Registrable Securities identified in a Piggy-Back Request shall be included in the
Registration Statement on the same terms and conditions as the other securities included in the Registration Statement, provided,
that, any Holder of Registrable Securities shall have the right to withdraw a Piggy-Back Request for any reason or no reason whatsoever
prior to the effectiveness of the Registration Statement covering such Piggy-Back Rights.

 

(c) Notwithstanding
anything in this Agreement to the contrary, Holders shall not have Piggy-Back Rights with respect to (i) a Registration Statement
on Form S-4 or Form S-8 or Form S-3 (with respect to dividend reinvestment plans and similar plans) or any successor forms thereto
or (ii) a Registration Statement filed in connection with an exchange offer or an offering of securities solely to employees of
the Company.

 

    5

     

    

 

(d) If
the lead managing underwriters selected by the Company for an Underwritten Offering for which Piggy-Back Rights are requested shall
advise the Company in writing that marketing or other factors require a limitation on the number of shares of securities which
can be sold in such offering within a price range acceptable to the Company, then, (i) such underwriters shall provide written
notice thereof to the Holders and (ii) there shall be included in the offering, (A) first, all securities proposed by the Company
to be sold for its account (or such lesser amount as shall equal the maximum number determined by the lead managing underwriters
as aforesaid); (B) second, all Registrable Securities requested to be included in such Registration Statement by Holders, or such
lesser number as shall equal, together with the amount referred to in (A), the maximum number determined by the lead managing underwriters
as aforesaid; and (C) third, only that number of securities requested to be included by any Other Rights Holders that such lead
managing underwriters reasonably and in good faith believe will not substantially interfere with (including, without limitation,
adversely affecting the pricing of) the offering of all the securities that the Company desires to sell for its own account and
all the Registrable Securities that the Holders desire to sell for their own accounts.

 

(e) Nothing
contained in this Section 3 shall create any liability on the part of the Company to the Holders if the Company for any
reason should decide not to file a Registration Statement for which Piggy-Back Rights are available or to withdraw such Registration
Statement subsequent to its filing, regardless of any action whatsoever Holders may have taken, whether as a result of the issuance
by the Company of any notice hereunder or otherwise.

 

(f) A
request made by Holders pursuant to their Piggy- Back Rights to include Registrable Securities in a Registration Statement shall
not be deemed to be a Demand Registration described in Section 2(d)(ii) hereof.

 

Section 4. Selection of Underwriters.
In connection with any Underwritten Offering made pursuant to a Demand or a Piggy-Back Right, the Company may, at its sole discretion,
select a book running managing underwriter to manage the Underwritten Offering with the prior written consent of the Holders (which
consent shall not be unreasonably withheld); provided, however, that the Company shall have no obligation to use an underwriter
in connection with any registration made pursuant to a Demand or Piggy-Back Request.

 

Section 5. Blackout Periods. If (i)
within five (5) Business Days following the exercise by a Holder of a Demand, the Company determines in good faith and notifies
such Holder in writing that the registration and distribution of Registrable Securities (or the use of the Registration Statement
or related Prospectus) resulting from a Demand received from such Holder would materially and adversely interfere with any planned
or proposed business combination transaction involving the Company, or any pending financing, acquisition, corporate reorganization
or any other corporate development involving the Company or any of its subsidiaries or (ii) following the exercise by such Holder
of a Demand but before the effectiveness of the Registration Statement, (A) a business combination, tender offer, acquisition
or other corporate event involving the Company is proposed, initiated or announced by another Person beyond the control of the
Company (an “Uncontrolled Event”), (B) in the reasonable judgment of at least a majority of the members of
the Board of Directors of the Company (the “Board”), the filing or seeking the effectiveness of the Registration
Statement would materially and adversely interfere with such Uncontrolled Event or would otherwise materially and adversely affect
the Company and (C) the Company promptly so notifies such Holder, then the Company shall be entitled to (x) postpone the filing
of the Registration Statement otherwise required to be filed by the Company pursuant to Section 2 hereof, or (y) elect
that the effective Registration Statement not be used, in either case for a reasonable period of time, but not to exceed ninety
(90) days after the date that (1) the Demand was made (in the case of an clause (i) above) or (2) the Company so notifies such
Holder of such determination (in the case of clause (ii) above) (each, a “Blackout Period”). Any such written
notice shall contain a general statement of the reasons for such postponement or restriction on use and an estimate of the anticipated
delay. The Company shall (a) promptly notify the Holder making a Demand of the expiration or earlier termination of such Blackout
Period and (b) use its reasonable best efforts to effect the Demand Registration as promptly as practicable after the end of the
Blackout Period.

 

Section 6. Holdback.

 

(a) If
(i) at any time after the date hereof, the Company shall file a Registration Statement (other than a registration on Form S-4,
Form S-8 or Form S-3 (with respect to dividend reinvestment plans and similar plans) or any successor forms thereto) with respect
to any shares of its capital stock, and (ii) upon reasonable prior notice the managing underwriter or underwriters (in the case
of an Underwritten Offering) advise the Company and the Holders in writing that a sale or distribution of Registrable Securities
would adversely impact such offering, then the Holders shall, to the extent not inconsistent with applicable law, refrain from
effecting any sale or distribution of Registrable Securities during the period commencing on the effective date of such Registration
Statement and continuing until the ninetieth (90th) day after the effective date of such Registration Statement; provided
that such restriction shall apply to the Holders only if in connection with such offering, the underwriters require the directors
and executive officers of the Company to refrain from selling the Company’s securities for a like period and on like terms
(such period, a “Holdback Period”).

 

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(b) During
the ninety (90) day period commencing on the effective date of a Registration Statement filed by the Company on behalf of Holders
in connection with an Underwritten Offering pursuant to a Demand, the Company shall not effect (except pursuant to registrations
on Form S-4 or Form S-8 or Form S-3 (with respect to dividend reinvestment plans and similar plans) or any successor forms thereto
and except pursuant to Section 2(h) hereof) any public sale or distribution of its securities.

 

Section 7. Ineligibility to Effect a Demand
Registration. If, following receipt of a Demand (other than the Initial Demand) from a Holder, after giving effect to any
Holdback Period and any Blackout Period, the Company has not filed a Registration Statement for the Registrable Securities so
requested to be registered or has not used its reasonable best efforts to cause such Registration Statement to become effective
because it is not eligible to effect a registration pursuant to the Securities Act, the Company shall have 60 additional days
to file such Registration Statement for the Registrable Securities so requested to be registered or to use its reasonable best
efforts to cause such Registration Statement to become effective (such additional days, the “Ineligibility Accommodation
Period”).

 

Section 8. Intentionally Omitted.

 

Section 9. Registration Procedures.
If and whenever the Company shall be required to use its reasonable best efforts to effect or cause the registration of any Registrable
Securities under the Securities Act as provided in this Agreement, the Company shall and, with respect to Section 9(m)
and Section 9(n), the Holders shall:

 

(a) prepare
and file with the SEC a Registration Statement with respect to such Registrable Securities on any form for which the Company then
qualifies or that counsel for the Company shall deem appropriate, and which form shall be available for the sale of the Registrable
Securities in accordance with the intended methods of distribution thereof, and use its reasonable best efforts to cause such Registration
Statement to become and remain effective;

 

(b) prepare
and file with the SEC amendments and post- effective amendments to such Registration Statement and such amendments and supplements
to the Prospectus used in connection therewith as may be necessary to maintain the effectiveness of such registration or as may
be required by the rules, regulations or instructions applicable to the registration form utilized by the Company or by the Securities
Act for a Shelf Registration or otherwise necessary to keep such Registration Statement effective for at least ninety (90) days
(or one hundred eighty (180) days in the case of a Shelf Registration) and cause the Prospectus as so supplemented to be filed
pursuant to Rule 424 under the Securities Act, and to otherwise comply with the provisions of the Securities Act with respect to
the disposition of all securities covered by such Registration Statement until the earlier of (x) such 90th or 180th day, as the
case may be, or (y) such time as all Registrable Securities covered by such Registration Statement shall have ceased to be Registrable
Securities (it being understood that the Company at its option may determine to maintain such effectiveness for a longer period,
whether pursuant to a Shelf Registration or otherwise); provided, however, that a reasonable time before filing a Registration
Statement or Prospectus, or any amendments or supplements thereto (other than reports required to be filed by it under the Exchange
Act), the Company shall furnish to the Holders, the managing underwriter and their respective counsel for review and comment, copies
of all documents proposed to be filed;

 

(c) furnish,
without charge, to the Holders and to any underwriter in connection with an Underwritten Offering such number of conformed copies
of such Registration Statement and of each amendment and post-effective amendment thereto (in each case including all exhibits)
and such number of copies of any Prospectus or Prospectus supplement and such other documents as Holders or such underwriter may
reasonably request in order to facilitate the disposition of the Registrable Securities by the Holders or the underwriter (the
Company hereby consenting to the use (subject to the limitations set forth in Section 9(n) hereof) of the Prospectus or
any amendment or supplement thereto in connection with such disposition);

 

    7

     

    

 

(d) use
its reasonable best efforts to register or qualify such Registrable Securities covered by such Registration Statement under such
other securities or “blue sky” laws of such jurisdictions as Holders shall reasonably request, except that the Company
shall not for any such purpose be required to qualify generally to do business as a foreign corporation in any jurisdiction where,
but for the requirements of this Section 9(d), it would not be obligated to be so qualified, to subject itself to taxation
in any such jurisdiction, or to consent to general service of process in any such jurisdiction;

 

(e) as
promptly as practicable, notify the managing underwriters (if any) and Holders, at any time when a Prospectus relating thereto
is required to be delivered under the Securities Act within the appropriate period mentioned in Section 9(b) hereof, of
the Company’s becoming aware that the Prospectus included in such Registration Statement, as then in effect, includes an
untrue statement of a material fact or omits to state a material fact required to be stated therein or necessary to make the statements
therein not misleading in light of the circumstances then existing, and, as promptly as practicable, prepare and furnish to the
Holders a reasonable number of copies of an amendment or supplement to such Registration Statement or related Prospectus as may
be necessary so that, as thereafter delivered to the purchasers of such Registrable Securities, such Prospectus shall not include
an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the
statements therein not misleading in light of the circumstances then existing;

 

(f) notify
the Holders, as promptly as practicable, at any time:

 

(i) when
the Prospectus or any Prospectus supplement or post- effective amendment has been filed, and, with respect to the Registration
Statement or any post-effective amendment, when the same has become effective;

 

(ii) of
any request by the SEC for amendments or supplements to the Registration Statement or the Prospectus or for additional information;

 

(iii) of
the issuance by the SEC of any stop order suspending the effectiveness of the Registration Statement or any order preventing the
use of a related Prospectus, or the initiation (or any overt threats) of any proceedings for such purposes;

 

(iv) of
the receipt by the Company of any written notification of the suspension of the qualification of any of the Registrable Securities
for sale in any jurisdiction or the initiation (or overt threats) of any proceeding for that purpose; and

 

(v) if
at any time the representations and warranties of the Company contemplated by Section 9(i)(i) below cease to be true and
correct in all material respects;

 

(g) otherwise
comply with all applicable rules and regulations of the SEC, and make available to Holders an earnings statement that shall satisfy
the provisions of Section 11(a) of the Securities Act, provided that the Company shall be deemed to have complied with this
Section 9(g) if it shall have complied with Rule 158 under the Securities Act;

 

(h) use
its reasonable best efforts to cause all such Registrable Securities to be listed on the NYSE, NASDAQ or any other national securities
exchange or automated quotation system on which the class of Registrable Securities being registered is then listed, if such Registrable
Securities are not already so listed and if such listing is then permitted under the rules of such exchange, and to provide a transfer
agent and registrar for such Registrable Securities covered by such Registration Statement no later than the effective date of
such Registration Statement;

 

    8

     

    

 

(i) enter
into agreements (including, if applicable, an underwriting agreement and other customary agreements in the form customarily entered
into by other companies in comparable underwritten offerings) and take all other appropriate and all commercially reasonable actions
in order to expedite or facilitate the disposition of such Registrable Securities and in such connection, whether or not an underwriting
agreement shall be entered into and whether or not the registration shall be an underwritten registration:

 

(i) make
such representations and warranties to the Holders and the underwriters, if any, in form, substance and scope as are customarily
made by companies to underwriters in comparable underwritten offerings;

 

(ii) obtain
opinions of counsel to the Company and updates thereof (which counsel and opinions shall be reasonably satisfactory (in form, scope
and substance) to the managing underwriters) addressed to the underwriters covering the matters customarily covered in opinions
requested in comparable underwritten offerings by the Company;

 

(iii) obtain
“comfort letters” and updates thereof from the Company’s independent certified public accountants addressed to
the Board and the underwriters, if any, such letters to be in customary form and covering matters of the type customarily covered
in “comfort letters” by independent accountants in connection with comparable underwritten offerings on such date or
dates as may be reasonably requested by the managing underwriters, or if such offering is not an Underwritten Offering, the Board;
provided, however, that in connection with any non-Underwritten Offering, such comfort letter shall not be required except
to the extent requested by the Board;

 

(iv) provide
the indemnification in accordance with the provisions and procedures of Section 13 hereof to all parties to be indemnified pursuant
to such Section 13 and any other indemnification customarily required in underwritten public offerings; and

 

(v) deliver
such documents and certificates as may be reasonably requested by the Holders and the managing underwriters, if any, to evidence
compliance with Section 9(f) above and with any customary conditions contained in the underwriting agreement or other agreement
entered into by the Company.

 

(j) cooperate
with the Holders and the managing underwriter or underwriters, if any, to facilitate, to the extent reasonable under the circumstances,
the timely preparation and delivery of certificates representing the securities to be sold under such Registration Statement, and
enable such securities to be in such denominations and registered in such names as the managing underwriter or underwriters, if
any, or the Holders may request and/or in a form eligible for deposit with the Depository Trust Company;

 

(k) make
available to the Holders, any underwriter participating in any disposition pursuant to such Registration Statement, and any attorney,
accountant or other agent retained by the Holders or such underwriter (collectively, the “Inspectors”), reasonable
access to appropriate officers and employees of the Company and the Company’s subsidiaries to ask questions and to obtain
information reasonably requested by such Inspector and all financial and other records and other information, pertinent corporate
documents and properties of any of the Company and its subsidiaries and Affiliates (collectively, the “Records”),
as shall be reasonably necessary to enable them to exercise their due diligence responsibility; provided, however, that
the Records that the Company determines, in good faith, to be confidential and which it notifies the Inspectors in writing are
confidential shall not be disclosed to any Inspector unless such Inspector signs a confidentiality agreement in customary form
reasonably satisfactory to the Company or either (i) the disclosure of such Records is necessary to avoid or correct a misstatement
or omission of a material fact in such Registration Statement, or (ii) the release of such Records is ordered pursuant to a subpoena
or other order from a court of competent jurisdiction; provided, further, that any decision regarding the disclosure of
information pursuant to subclause (i) shall be made only after consultation with counsel for the applicable Inspectors; and provided,
further, that the Holders agree that they shall, promptly after learning that disclosure of such Records is sought in a court
having jurisdiction, give notice to the Company and allow the Company, at the Company’s expense, to undertake appropriate
action to prevent disclosure of such Records;

 

    9

     

    

 

(l) in
the event of the issuance of any stop order suspending the effectiveness of the Registration Statement or of any order suspending
or preventing the use of any related Prospectus or suspending the qualification of any Registrable Securities included in the Registration
Statement for sale in any jurisdiction, the Company shall use its reasonable best efforts promptly to obtain its withdrawal;

 

(m) the
Holders shall furnish the Company with such information regarding them and pertinent to the disclosure requirements relating to
the registration and the distribution of such securities as the Company may from time to time reasonably request in writing or
as shall be required in connection with the action to be taken by the Company hereunder; and

 

(n) the
Holders shall, upon receipt of any notice from the Company of the happening of any event of the kind described in Section 9(e)
hereof, forthwith discontinue disposition of Registrable Securities pursuant to the Prospectus or Registration Statement covering
such Registrable Securities until the Holders shall have received copies of the supplemented or amended Prospectus contemplated
by Section 9(e) hereof, and, if so directed by the Company, the Holders shall deliver to the Company (at the Company’s
expense) all copies, other than permanent file copies then in their possession, of the Prospectus covering such Registrable Securities
current at the time of receipt of such notice.

 

Section 10. Registration Expenses.
Except as otherwise provided herein, in connection with all registrations of Registrable Securities made pursuant to the Shelf
Registration to be filed pursuant to Section 2(a) or any Demand Registration or Piggy-Back Rights, the Company shall pay
all Registration Expenses; provided, however, that the Holders shall pay, and shall hold the Company harmless from, (i) any
underwriting discounts and commissions and transfer taxes relating to the sale or disposition of Registrable Securities and (ii)
any fees, expenses or disbursements of Holders’ counsel and other advisors.

 

Section 11. Rule 144. From and after
the date which is more than one hundred eighty (180) days after the date hereof, the Company shall, at all times when the Holders
Beneficially Own any Registrable Securities, take such measures and file and/or make available such information, documents and
reports as shall be required by the SEC as a condition to the availability of Rule 144; provided, however, that
the Company need not take any of the foregoing actions during any Ineligibility Accommodation Period.

 

Section 12. Covenants of Holders.
Each Holder hereby covenants and agrees that it shall not sell any Registrable Securities in violation of the Securities Act or
this Agreement.

 

Section 13. Indemnification; Contribution.

 

(a) The
Company shall indemnify and hold harmless each Holder, its respective officers and directors, and each Person, if any, who controls
such Holder within the meaning of either Section 15 of the Securities Act or Section 20 of the Exchange Act and any agents, representatives
or advisers thereof against all losses, claims, damages, liabilities and expenses (including reasonable attorneys’ fees and
expenses and reasonable costs of investigation) incurred by such party pursuant to any actual or threatened action, suit, proceeding
or investigation arising out of or based upon (i) any untrue or alleged untrue statement of material fact contained in any Registration
Statement, any Prospectus or preliminary Prospectus, or any amendment or supplement to any of the foregoing, (ii) any omission
or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein
(in the case of a Prospectus or a preliminary Prospectus, in light of the circumstances then existing) not misleading, or (iii)
any violation or alleged violation by the Company of any United States federal, state or common law rule or regulation applicable
to the Company and relating to action required of or inaction by the Company in connection with any such registration except in
each case insofar as the same arise out of or are based upon, any such untrue statement or omission made in reliance on and in
conformity with written information with respect to the Holders furnished in writing to the Company by the Holders or their counsel
expressly for use therein. In connection with an Underwritten Offering, the Company shall indemnify the underwriters thereof, their
officers, directors and agents and each Person who controls such underwriters (within the meaning of Section 15 of the Securities
Act or Section 20 of the Exchange Act) to the same extent as provided above with respect to the indemnification of the Holders.

 

    10

     

    

 

(b) Any
Person entitled to indemnification hereunder agrees to give prompt written notice to the indemnifying party after the receipt by
such indemnified party of any written notice of the commencement of any action, suit, proceeding or investigation or threat thereof
made in writing for which such indemnified party may claim indemnification or contribution pursuant to this Section 13 (provided
that failure to give such notification shall not affect the obligations of the indemnifying party pursuant to this Section 13
except to the extent the indemnifying party shall have been materially prejudiced as a result of such failure). In case any such
action shall be brought against any indemnified party and it shall notify the indemnifying party of the commencement thereof, the
indemnifying party shall be entitled to participate therein and, to the extent that it shall wish, jointly with any other indemnifying
party similarly notified, to assume the defense thereof, with counsel reasonably satisfactory to such indemnified party (who shall
not, except with the consent of the indemnified party, be counsel to the indemnifying party), and after notice from the indemnifying
party to such indemnified party of its election so to assume the defense thereof, the indemnifying party shall not be liable to
such indemnified party under this Section 13 for any legal expenses of other counsel or any other expenses, in each case
subsequently incurred by such indemnified party, in connection with the defense thereof other than reasonable costs of investigation.
Notwithstanding the foregoing, if (i) the indemnifying party shall not have employed counsel reasonably satisfactory to such indemnified
party to take charge of the defense of such action within a reasonable time after notice of commencement of such action (so long
as such failure to employ counsel is not the result of an unreasonable determination by such indemnified party that counsel selected
pursuant to the immediately preceding sentence is unsatisfactory) or if the indemnifying party shall not have demonstrated to the
reasonable satisfaction of the indemnified party its ability to finance such defense, or (ii) the indemnified party shall have
reasonably concluded or been advised by counsel that there may be legal defenses available to other indemnified parties to such
action which could result in a conflict of interest for such counsel or prejudice the prosecution of the defenses available to
such indemnified party, then such indemnified party shall have the right to employ separate counsel of its choosing, at the expense
of the indemnifying party. No indemnifying party shall consent to entry of any judgment or enter into any settlement without the
consent (which consent, in the case of an action, suit, claim or proceeding exclusively seeking monetary relief, shall not be unreasonably
withheld) of the applicable indemnified party.

 

(c) If
the indemnification from the indemnifying party provided for in this Section 13 is unavailable to an indemnified party hereunder
in respect of any losses, claims, damages, liabilities or expenses referred to therein, then the indemnifying party, in lieu of
indemnifying such indemnified party, shall contribute to the amount paid or payable by such indemnified party as a result of such
losses, claims, damages, liabilities and expenses in such proportion as is appropriate to reflect the relative fault of the indemnifying
party and indemnified party in connection with the actions or omissions which resulted in such losses, claims, damages, liabilities
and expenses, as well as any other relevant equitable considerations. The relative fault of such indemnifying party and indemnified
party shall be determined by reference to, among other things, whether any action in question, including any untrue or alleged
untrue statement of a material fact or omission or alleged omission to state a material fact, has been made by, or relates to information
supplied (in writing, in the case of the Holders) by, such indemnifying party or indemnified party, and the parties’ relative
intent, knowledge, access to information and opportunity to correct or prevent such action or omission. The amount paid or payable
by a party as a result of the losses, claims, damages, liabilities and expenses referred to above shall be deemed to include, subject
to the limitations set forth in Section 13(b) hereof, any legal and other fees and expenses reasonably incurred by such
indemnified party in connection with any investigation or proceeding. The parties hereto agree that it would not be just and equitable
if contribution pursuant to this Section 13(c) were determined by pro rata allocation or by any other method of allocation
which does not take account of the equitable considerations referred to above in this Section 13(c). Any underwriter’s
obligations in this Section 13(c) to contribute shall be several in proportion to the number of Registrable Securities underwritten
by them and not joint. Notwithstanding the provisions of this Section 13(c), no underwriter shall be required to contribute
any amount in excess of the amount by which the total price at which the Registrable Securities underwritten by it and distributed
to the public were offered to the public exceeds the amount of any damages which such underwriter has otherwise been required to
pay by reason of such untrue or alleged untrue statement or omission or alleged omission. No Person guilty of fraudulent misrepresentation
(within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty
of such fraudulent misrepresentation. If indemnification is available under this Section 13, the indemnifying parties shall
indemnify each indemnified party to the fullest extent provided in Section 13(a) hereof without regard to the relative fault
of such indemnifying parties or indemnified party or any other equitable consideration provided for in this Section 13(c).

 

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(d) The
provisions of this Section 13 shall be in addition to any liability which any party may have to any other party and shall
survive any termination of this Agreement. The indemnification provided by this Section 13 shall survive the Transfer of
such Registrable Securities by the Holders and shall remain in full force and effect irrespective of any investigation made by
or on behalf of an indemnified party.

 

Section 14. Injunctions. EACH PARTY
HERETO ACKNOWLEDGES AND AGREES THAT IRREPARABLE DAMAGE WOULD OCCUR IN THE EVENT THAT ANY OF THE PROVISIONS OF THIS AGREEMENT WERE
NOT PERFORMED IN ACCORDANCE WITH ITS SPECIFIC TERMS OR WERE OTHERWISE BREACHED. THEREFORE, EACH PARTY SHALL BE ENTITLED TO AN
INJUNCTION OR INJUNCTIONS TO PREVENT BREACHES OF THE PROVISIONS OF THIS AGREEMENT AND TO ENFORCE SPECIFICALLY THE TERMS AND PROVISIONS
HEREOF IN ANY COURT HAVING JURISDICTION, SUCH REMEDY BEING IN ADDITION TO ANY OTHER REMEDY TO WHICH SUCH PARTY MAY BE ENTITLED
AT LAW OR IN EQUITY.

 

Section 15. Amendments and Waivers.
No amendment, modification, supplement, termination, consent or waiver of any provision of this Agreement, nor consent to any
departure herefrom, shall in any event be effective unless the same is in writing and is signed by the party against whom enforcement
of the same is sought. Any waiver of any provision of this Agreement and any consent to any departure from the terms of any provision
of this Agreement shall be effective only in the specific instance and for the specific purpose for which given.

 

Section 16. Notices. All notices,
consents, requests, demands and other communications hereunder must be in writing, and shall be deemed to have been duly given
or made: (i) when delivered in person; (ii) three (3) days after deposited in the United States mail, first class postage prepaid;
(iii) in the case of telegraph or overnight courier services, one (1) Business Day after delivery to the telegraph company or
overnight courier service with payment provided; or (iv) in the case of telex or telecopy or fax, when sent, verification received;
in each case addressed as follows:

 

if to the Company:

 

Cadiz Inc.

550 South Hope Street, Suite 2850

Los Angeles, CA 90071

Telephone: (213) 271-1600

Facsimile: (213) 271-1614

Attention: Chief Financial Officer

 

with a copy to:

 

Kevin Friedmann, Esq.

Greenberg Traurig, LLP

1840 Century Park East, suite 1900

Los Angeles, CA 90067-2121

Telephone: (310) 586-7747

Facsimile: (310) 586-7800

 

if to the Holders, to the addresses set forth on the signature
pages attached hereto,

 

with a copy to:

 

Christopher Cox, Esq.

Cadwalader, Wickersham & Taft LLP

One World Financial Center

New York, NY 10281

Telephone: (212) 504-6888

Facsimile: (212) 504-6666

 

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Section 17. Successors and Assigns.
This Agreement shall inure to the benefit of and be binding upon the successors and assigns
of each of the parties hereto, without the need for an express consent by the Company thereto, provided, that (A) a
transferring Holder shall, within ten (10) days after a transfer, furnish the Company written notice of the name and address of
the transferee or assignee and (B) such transferee or assignee, prior to or simultaneous with such transfer or assignment,
shall agree in writing to be subject to and bound by the terms of this Agreement as a Holder party hereto.

 

Section 18. Representations and Warranties
of the Company. The Company and each of the Holders represents and warrants to the other parties hereto as follows:

 

(a) Such
party is duly organized and validly existing under the laws of its jurisdiction of organization.

 

(b) Such
party has full corporate or other organizational power and authority to enter into this Agreement and to carry out and perform
its obligations hereunder. The execution, delivery and performance by such party of this Agreement have been duly authorized and
approved by all necessary corporate or other organizational action. This Agreement has been duly authorized, executed and delivered
by such party and constitutes the legal, valid and binding obligation of such party enforceable against it in accordance with its
terms, subject to applicable bankruptcy, insolvency and similar laws affecting creditors’ rights generally and to general
principles of equity.

 

(c) The
execution, delivery and performance by such party of its obligations under this Agreement, and compliance by such party with the
terms and conditions hereof will not (i) violate, with or without the giving of notice or the lapse of time, or both, or require
any registration, qualification, approval or filing (other than registrations, qualifications, approvals and filings that have
already been made or obtained) under, any provision of law, statute, ordinance or regulation applicable to it or any of its subsidiaries
and (ii) conflict with, or require any consent or approval under, or result in the breach or termination of any provision of, or
constitute a default under, or result in the acceleration of the performance of the obligations of such party or any of its subsidiaries
under, or result in the creation of any claim, lien, charge or encumbrance upon any of the properties, assets or businesses of
such party or any of its subsidiaries pursuant to (x) its organizational documents, (y) any order, judgment, decree, law, ordinance
or regulation applicable to it or any of its subsidiaries or (z) any contract, instrument, agreement or restriction to which it
or any of its subsidiaries is a party or by which it or any of its subsidiaries or any of its respective assets or properties is
bound.

 

Section 19. Counterparts. This Agreement
may be executed in one or more counterparts, all of which shall be considered one and the same agreement and shall become effective
when one or more counterparts have been signed by each of the parties and delivered to the other parties.

 

Section 20. Descriptive Headings.
The descriptive headings used herein are inserted for convenience of reference only and are not intended to be part of or to affect
the meaning or interpretation of this Agreement.

 

Section 21. Choice of Law; Venue.
THIS AGREEMENT SHALL BE CONSTRUED, INTERPRETED AND THE RIGHTS OF THE PARTIES DETERMINED IN ACCORDANCE WITH THE LAWS OF THE STATE
OF NEW YORK, WITHOUT REGARD TO THE CONFLICTS OF LAW PRINCIPLES THEREOF. VENUE FOR ANY LEGAL ACTION UNDER THIS AGREEMENT SHALL
BE IN THE STATE OR FEDERAL COURTS LOCATED IN THE BOROUGH OF MANHATTAN IN THE CITY OF NEW YORK, NEW YORK.

 

Section 22. Severability. In the event
that any one or more of the provisions contained herein, or the application thereof in any circumstances, shall be held invalid,
illegal or unenforceable in any respect for any reason, the validity, legality and enforceability of any such provision in every
other respect and of the remaining provisions contained herein shall not be in any way impaired thereby, it being intended that
all remaining provisions contained herein shall not be in any way impaired thereby.

 

Section 23. Entire Agreement. This
Agreement, including any schedules, exhibits or attachments referred to herein, is intended by the parties as a final expression
and a complete and exclusive statement of the agreement and understanding of the parties hereto in respect of the subject matter
hereof. There are no restrictions, promises, warranties or undertakings with respect to the subject matter hereof, other than
those set forth or referred to herein. This Agreement supersedes all prior agreements and understandings between the parties with
respect to such subject matter, including the 2013 Registration Rights Agreement.

  

Section 24. Further Actions; Reasonable
Best Efforts. Each Holder shall use its reasonable best effort to take or cause to be taken all appropriate action and to
do or cause to be done all things reasonably necessary, proper or advisable under applicable law and regulations to assist the
Company in the performance of its obligations hereunder, including, without limitation, the preparation and filing of any Registration
Statements pursuant to any Demand.

 

[Signature Pages Follow]

 

    13

     

    

 

IN WITNESS WHEREOF, the parties have executed
this Registration Rights Agreement as of the day and year first above written.

 

	CADIZ INC.	 
	 	 
	By:		 
	Name: 	Tim Shaheen	 
	Title:	 Chief Financial Officer and Secretary	 

 

[Signature Page to Registration Rights
Agreement]

 

     

     

    

 

HOLDERS:

 

LC CAPITAL MASTER FUND, LTD.

 

	By:		 
	Name: 	 Steven G. Lampe	 
	Title:	Managing Member of General Partner	 

 

	Address:	 
	 	 
	c/o Lampe, Conway & Co., LLC	 
	 	 
	680 Fifth Avenue, 12th Floor 
	 
	 	 
	New York, NY 10019-5429	 

 

[Signature Page to Registration Rights
Agreement]

 

     

     

    

 

	ELKHORN PARTNERS LIMITED PARTNERSHIP	 

 

	By:		 
	Name: 	 Alan S. Parson	 
	Title:	Sole Managing Partner	 

 

	Address:	 
	 	 
	ELKHORN PARTNERS L.P.	 
	 	 
	8405 Indian Hills Drive
	
	 	 
	#2A8	 
	 	 
	Omaha, NE 68114 - 4093	 

  

[Signature Page to Registration
Rights Agreement]Exhibit 10.3

 

EXECUTION
VERSION

 

 

 

 

 

REGISTRATION
RIGHTS AGREEMENT

 

by
and among

 

CADIZ
INC.

 

and

 

EACH
HOLDER OF REGISTRABLE SECURITIES

REFLECTED
ON THE SIGNATURE PAGE HEREOF

 

March
5, 2020

 

 

 

 

 

 

 

    	 		 

     

    

 

	Section 1.	 	 Certain Definitions	 	1
	Section 2.	 	 Initial Shelf Registration and Demand Registration Rights	 	3
	Section 3. 	 	Piggy-Back Registration Rights	 	5
	Section 4.	 	 Selection of Underwriters	 	6
	Section 5.	 	 Blackout Periods	 	6
	Section 6. 	 	Holdback	 	7
	Section 7.	 	 Ineligibility to Effect a Demand Registration	 	7
	Section 8. 	 	Intentionally Omitted	 	7
	Section 9. 	 	Registration Procedures	 	7
	Section 10.	 	 Registration Expenses	 	10
	Section 11.	 	 Rule 144	 	10
	Section 12.	 	 Covenants of Holders	 	10
	Section 13. 	 	Indemnification; Contribution	 	10
	Section 14.	 	 Injunctions	 	12
	Section 15. 	 	Amendments and Waivers	 	12
	Section 16.	 	 Notices	 	12
	Section 17. 	 	Successors and Assigns	 	13
	Section 18. 	 	Representations and Warranties of the Company	 	13
	Section 19.	 	 Counterparts	 	13
	Section 20. 	 	Descriptive Headings	 	13
	Section 21.	 	 Choice of Law	 	13
	Section 22. 	 	Severability	 	13
	Section 23. 	 	Entire Agreement	 	13
	Section 24.	 	 Further Actions; Reasonable Best Efforts	 	13

 

    	 	i	 

     

    

 

This
Registration Rights Agreement (this “Agreement”) is made as of this 5th day of March 2020 by and
among Cadiz Inc., a Delaware corporation (the “Company”), and each holder of Registrable Securities (as defined
herein) reflected on the signature page hereto (“Holders”).

 

RECITALS:

 

WHEREAS,
the Company is party to that certain Indenture, dated as of December 10, 2015 (the “Indenture”), between the
Company, as issuer, and U.S. Bank National Association, as trustee (the “Trustee”), pursuant to which the Company
issued certain 7.00% Convertible Senior Notes due 2020 (the “Convertible Notes”);

 

WHEREAS,
the Company and the Holders have each entered into a separate Conversion and Exchange Agreement dated as of March 5, 2020 pursuant
to which the Holders have agreed to exchange a portion of the outstanding Convertible Notes for shares of a new series of preferred
stock, par value $0.01 per share, of the Company titled “Series 1 Preferred Stock” (the “Preferred Stock”),
which Preferred Stock is convertible into shares of the Company’s common stock, par value $0.01 per share (the “Common
Stock”), upon the terms and subject to the limitations and conditions set forth in the Certificate of Designations of
Series 1 Preferred Stock (the “Certificate”); and

 

WHEREAS,
the Company has agreed to enter into a registration rights agreement pursuant to which the Company shall grant the Holders registration
rights with respect to the Registrable Securities and which registration rights agreement shall, with respect to the Holders,
supersede and replace the Amended and Restated Registration Rights Agreement by and among the Company and the holders party thereto
dated as of March 5, 2013 (the “2013 Registration Rights Agreement”).

 

NOW
THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto
agree as follows:

 

Section
1. Certain Definitions. For purposes of this Agreement, the following terms have the following meanings:

 

(a)
“2013 Registration Rights Agreement” has the meaning specified in the Recitals hereof.

 

(b)
“2019 Form 10-K” has the meaning specified in Section 2(a) hereof.

 

(c)
“Affiliate” has the meaning ascribed to such term in Rule 12b-2 of the Exchange Act.

 

(d)
“Agreement” has the meaning specified in the Preamble hereof.

 

(e)
“Beneficially Own” has the meaning ascribed to such term in Rule 13d-3 of the Exchange Act.

 

(f)
“Blackout Period” has the meaning specified in Section 5 hereof.

 

(g)
“Board” has the meaning specified in Section 5 hereof.

 

(h)
“Business Day” means a day other than a Saturday, Sunday or other day on which commercial banks are authorized
to close under the laws of the State of New York and the United States of America.

 

(i)
“Certificate” has the meaning specified in the Recitals hereof.

 

(j)
“Common Stock” has the meaning specified in the Recitals hereof.

 

(k)
“Company” has the meaning specified in the Preamble hereof.

 

(l)
“Convertible Notes” has the meaning specified in the Recitals hereof.

 

    	 	1	 

     

    

 

(m)
“Demand” has the meaning specified in Section 2(b) hereof.

 

(n)
“Demand Registration” has the meaning specified in Section 2(b) hereof.

 

(o)
“Effective Date” means the date of this Agreement.

 

(p)
“Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations of the
SEC thereunder, all as the same shall be in effect at the time that reference is made thereto.

 

(q)
“FINRA” means the Financial Industry Regulatory Authority.

 

(r)
“Holdback Period” has the meaning specified in Section 6(a) hereof.

 

(s)
“Holder” has the meaning specified in the Preamble hereof, and shall include any person to whom the rights
of a Holder under this Agreement have been transferred in accordance with the provisions of this Agreement.

 

(t)
“Indenture” has the meaning specified in the Recitals hereof.

 

(u)
“Ineligibility Accommodation Period” has the meaning specified in Section 7 hereof.

 

(v)
“Inspectors” has the meaning specified in Section 9(k) hereof.

 

(w)
“NASDAQ” means the Nasdaq Stock Market, Inc.

 

(x)
“NYSE” means the New York Stock Exchange.

 

(y)
“Other Rights Holders” has the meaning specified in Section 2(h) hereof.

 

(z)
“Person” means any individual, firm, partnership, corporation (including, without limitation, a business trust),
limited liability company, joint stock company, trust, unincorporated association, joint venture or other entity, and shall include
any successor (by merger or otherwise) of any such entity.

 

(aa)
“Piggy-Back Request” has the meaning specified in Section 3(b) hereof.

 

(bb)
“Piggy-Back Rights” has the meaning specified in Section 3(a) hereof.

 

(cc)
“Preferred Stock” has the meaning set forth in the Recitals hereof.

 

(dd)
“Prospectus” means the prospectus included in any Registration Statement, as amended or supplemented by any
prospectus supplement, with respect to the terms of the offering of any portion of the Registrable Securities covered by any Registration
Statement and by all other amendments and supplements to the prospectus, including post-effective amendments and all material
incorporated by reference in such prospectus.

 

(ee)
“Records” has the meaning specified in Section 9(k) hereof.

 

(ff)
“Registrable Securities” means any and all of (i) the outstanding shares of Common Stock held by a Holder as
of the date of this Agreement; (ii) the shares of Common Stock received by Holders upon conversion of the Convertible Notes; (iii)
the shares of Preferred Stock; (iv) the shares of Common Stock received by Holders upon conversion of the Preferred Stock, and
(v) any securities issuable or issued or distributed in respect of any of the securities identified in clauses (i), (ii), (iii)
and (iv) by way of stock dividend or stock split or in connection with a combination of shares, recapitalization, reorganization,
merger, consolidation or otherwise. Registrable Securities shall cease to be Registrable Securities when and to the extent that
they (x) shall have been Transferred by Holders pursuant to an effective Registration Statement or pursuant to Rule 144; (y) shall
have ceased to be outstanding; or (z) may be transferred without restriction or limitation pursuant to Rule 144.

 

    	 	2	 

     

    

 

(gg)
“Registration Expenses” means any and all reasonable out-of-pocket expenses incident to performance of or compliance
with this Agreement, including, without limitation, (i) all SEC, FINRA and securities exchange registration and filing fees, (ii)
all fees and expenses of complying with state securities or “blue sky” laws (including fees and disbursements of counsel
for any underwriters in connection with blue sky qualifications of the Registrable Securities), (iii) all processing, printing,
copying, messenger and delivery expenses, (iv) all fees and expenses incurred in connection with the listing of the Registrable
Securities on any securities exchange pursuant to Section 9(h) hereof, (v) all fees and disbursements of counsel for the
Company and of its independent public accountants (including the expenses of any special audits or comfort letters), and (vi)
the reasonable fees and expenses of any special experts retained in connection with a registration under this Agreement, but excluding
(A) any underwriting discounts and commissions and transfer taxes relating to the sale or disposition of Registrable Securities
pursuant to a Registration Statement, and (B) any fees, expenses or disbursements of counsel and other advisers to the Holders
and any Other Rights Holders, other than the reasonable fees and disbursements of one counsel to all Holders.

 

(hh)
“Registration Statement” means any registration statement (including a Shelf Registration) of the Company referred
to in Section 2 or Section 3 hereof, including any Prospectus, amendments and supplements to any such registration
statement, including post-effective amendments, and all exhibits and all material incorporated by reference in any such registration
statement.

 

(ii)
“Rule 144” means Rule 144 under the Securities Act, or any similar or successor rules or regulations hereafter
adopted by the SEC.

 

(jj)
“S-3 Eligible” has the meaning specified in Section 2(a) hereof.

 

(kk)
“SEC” means the United States Securities and Exchange Commission and any successor federal agency having similar
powers.

 

(ll)
“Securities Act” means the Securities Act of 1933, as amended, and the rules and regulations of the SEC thereunder,
all as the same shall be in effect at the time that reference is made thereto.

 

(mm)
“Shelf Registration” means a “shelf” registration statement on an appropriate form pursuant to
Rule 415 under the Securities Act (or any successor rule that may be adopted by the SEC).

 

(nn)
“Transfer” means, with respect to any security, any direct or indirect sale, transfer, assignment, hypothecation,
pledge or any other disposition of such security or any interest therein.

 

(oo)
“Uncontrolled Event” has the meaning specified in Section 5 hereof.

 

(pp)
“Underwritten Offering” means an offering in which securities of the Company are sold to an underwriter for
reoffering to the public pursuant to an effective Registration Statement under the Securities Act.

 

Section
2. Initial
Shelf Registration and Demand Registration Rights.

 

(a)
As soon as commercially reasonable following the Company’s filing of the Annual Report on Form 10-K for the fiscal year
ended December 31, 2019 (the “2019 Form 10-K”), and no later than thirty (30) days after the filing of the
2019 Form 10-K, the Company shall (i) prepare and file with the SEC (x) a Registration Statement on Form S-3 or a successor form,
if the Company is then eligible to file a Registration Statement on Form S-3 (“S-3 Eligible”), or (y) any other
appropriate form under the Securities Act for the type of offering contemplated by the Holders, if the Company is not then S-3
Eligible, or (ii) use an existing Form S-3 filed with the SEC, in each case providing for an offering to be made on a continuous
basis pursuant to Rule 415 under the Securities Act or any successor rule thereto that covers all Registrable Securities then
outstanding for an offering to be made on a delayed or continuous basis pursuant to Rule 415 under the Securities Act or any successor
rule thereto. If permitted under the Securities Act, such Registration Statement shall be an “automatic shelf registration
statement” as defined in Rule 405 under the Securities Act. The Company shall use its best efforts to (x) cause the Shelf
Registration filed pursuant to this Section 2(a) to be declared effective by the SEC or otherwise become effective under
the Securities Act as promptly as practicable after the filing thereof and (y) keep such Shelf Registration continuously effective
and in compliance with the Securities Act and useable for the resale of Registrable Securities until such time as there are no
remaining Registrable Securities then outstanding, including by filing successive replacement or renewal Registration Statements
upon the expiration of such Shelf Registration.

 

    	 	3	 

     

    

 

(b)
Any Holder may, subject to the terms hereof, request the Company in writing (each such request, a “Demand”)
to effect a registration with the SEC under and in accordance with the provisions of the Securities Act of all or part of the
Registrable Securities Beneficially Owned by such Holder (a “Demand Registration”). The Demand shall specify
the aggregate number of shares of Registrable Securities requested to be so registered on behalf of such Holder. Any request received
by the Company from a Holder as provided in this Section 2(b) shall be deemed to be a “Demand” for purposes
of this Agreement, unless the Company, in accordance with the terms of this Agreement, shall have notified such Holder in writing,
prior to its receipt of such request from such Holder, of its intention to register securities with the SEC, in which case the
request from such Holder shall be governed by Section 3 hereof, not this Section 2. All Demands to be made by a
Holder pursuant to this Section 2(b) and any notifications by the Company pursuant to the preceding sentence must be based
upon a good faith intent of such Holder or the Company, as the case may be, to effect the sale of securities pursuant to such
registrations as promptly as practicable after the date of the Demand or notification, as the case may be, in accordance with
the terms of this Agreement.

 

(c)
After receipt of a Demand from a Holder, the Company shall, as soon as practicable thereafter, but in no event later than ninety
(90) days following such Demand, file and cause to be effective a Registration Statement for the Registrable Securities so requested
to be registered.

 

(d)
Notwithstanding anything in this Agreement to the contrary, the Company shall not be required to file a Registration Statement
for Registrable Securities pursuant to a Demand:

 

(i)
if the Company shall have previously effected a Demand Registration at any time during the immediately preceding ninety (90) day
period;

 

(ii)
if the Company shall have previously effected a registration of Registrable Securities to be issued and sold by the Company at
any time during the immediately preceding ninety (90) day period (other than a registration on Form S-4, Form S-8 or Form S-3
(with respect to dividend reinvestment plans and similar plans) or any successor forms thereto);

 

(iii)
during any Blackout Period;

 

(iv)
during any Ineligibility Accommodation Period;

 

(v)
if the aggregate value of the Registrable Securities to be registered pursuant to a Demand Registration does not equal at least
$2,500,000; or

 

(vi)
if the Registrable Securities that are the subject of the Demand are the subject of an effective Shelf Registration.

 

(e)
The Company shall be permitted to satisfy its obligations under this Section 2 by amending (to the extent permitted by
applicable law) any Shelf Registration previously filed by the Company under the Securities Act so that such Shelf Registration
(as amended) shall permit the disposition (in accordance with the intended methods of disposition specified as aforesaid) of all
of the Registrable Securities for which a Demand shall have been made. Notwithstanding the foregoing, the Company shall have no
obligation under this Agreement to file any Shelf Registration.

 

    	 	4	 

     

    

 

(f)
A requested Demand Registration shall not be deemed to count as a Demand Registration described in Section 2(d)(ii) hereof
if: (i) such registration has not been declared effective by the SEC or does not become effective in accordance with the Securities
Act, (ii) after becoming effective, such registration is materially interfered with by any stop order, injunction or similar order
or requirement of the SEC or other governmental agency or court for any reason not attributable to a Holder and does not thereafter
become effective, (iii) the conditions to closing specified in any underwriting agreement entered into in connection with such
Demand Registration are not satisfied or waived other than by reason of an act or omission on the part of a Holder, or (iv) the
Holder making a Demand shall have withdrawn its Demand or otherwise determined not to pursue such registration, provided
that, in the case of this clause (iv), such Holder shall have reimbursed the Company for all of its out- of-pocket expenses incurred
in connection with such Demand.

 

(g)
At any time and from time to time that a Registration Statement is effective, if a Holder of Registrable Securities requests (i)
the registration under the Securities Act of additional Registrable Securities pursuant to such Registration Statement or (ii)
that such Holder be added as a selling stockholder in such Registration Statement, the Company shall as promptly as practicable
amend or supplement the Registration Statement to cover such additional Registrable Securities and/or Holder.

 

(h)
If the lead managing underwriters of an Underwritten Offering made pursuant to a Demand shall advise the Holder making a Demand
in writing (with a copy to the Company) that marketing or other factors require a limitation on the number of shares of Registrable
Securities which can be sold in such offering within a price range acceptable to the Holder, then (i) if the Company shall have
elected to include any securities to be issued and sold by the Company or sold on behalf of any of the Company’s security
holders excluding such Holder (“Other Rights Holders”) in such Registration Statement, then the Company shall
reduce the number of securities the Company shall intend to issue and sell (and, if applicable, the number of securities being
sold on behalf of the Other Rights Holders) pursuant to such Registration Statement such that the total number of securities being
sold by each such party shall be equal to the number which can be sold in such offering within a price range acceptable to such
Holder, and (ii) if the Company shall not have elected to include any securities to be issued and sold by the Company or sold
on behalf of Other Rights Holders in such Registration Statement or if the reduction referred to in the previous clause (i) shall
not be sufficient, then, the Holder shall reduce the number of Registrable Securities requested to be included in such offering
to the number that the lead managing underwriter advises can be sold in such offering within a price range acceptable to the Holder.
The Holder shall not be required to reduce the number of Registrable Securities requested to be included in any such offering
until the number of securities referred to in the previous clause (i) shall have been reduced to zero (0).

 

Section
3. Piggy-Back Registration Rights.

 

(a)
At any time on or after the date hereof, whenever the Company shall propose to file a Registration Statement under the Securities
Act relating to the public offering of securities for sale for cash, the Company shall give written notice to the Holders as promptly
as practicable, but in no event less than fifteen (15) days prior to the anticipated filing thereof, specifying the approximate
date on which the Company proposes to file such Registration Statement and the intended method of distribution in connection therewith,
and advising Holders of their right to have any or all of the Registrable Securities then Beneficially Owned by them included
among the securities to be covered by such Registration Statement (the “Piggy-Back Rights”).

 

(b)
Subject to Section 3(c) and Section 3(d) hereof, in the event that Holders have and shall elect to utilize their
Piggy-Back Rights, the Company shall include in the Registration Statement the Registrable Securities identified by the Holders
in a written request (a “Piggy-Back Request”) given to the Company not later than five (5) Business Days prior
to the proposed filing date of the Registration Statement. The Registrable Securities identified in a Piggy-Back Request shall
be included in the Registration Statement on the same terms and conditions as the other securities included in the Registration
Statement, provided, that, any Holder of Registrable Securities shall have the right to withdraw a Piggy-Back Request for
any reason or no reason whatsoever prior to the effectiveness of the Registration Statement covering such Piggy-Back Rights.

 

(c)
Notwithstanding anything in this Agreement to the contrary, Holders shall not have Piggy-Back Rights with respect to (i) a Registration
Statement on Form S-4 or Form S-8 or Form S-3 (with respect to dividend reinvestment plans and similar plans) or any successor
forms thereto or (ii) a Registration Statement filed in connection with an exchange offer or an offering of securities solely
to employees of the Company.

 

    	 	5	 

     

    

 

(d)
If the lead managing underwriters selected by the Company for an Underwritten Offering for which Piggy-Back Rights are requested
shall advise the Company in writing that marketing or other factors require a limitation on the number of shares of securities
which can be sold in such offering within a price range acceptable to the Company, then, (i) such underwriters shall provide written
notice thereof to the Holders and (ii) there shall be included in the offering, (A) first, all securities proposed by the Company
to be sold for its account (or such lesser amount as shall equal the maximum number determined by the lead managing underwriters
as aforesaid); (B) second, all Registrable Securities requested to be included in such Registration Statement by Holders, or such
lesser number as shall equal, together with the amount referred to in (A), the maximum number determined by the lead managing
underwriters as aforesaid; and (C) third, only that number of securities requested to be included by any Other Rights Holders
that such lead managing underwriters reasonably and in good faith believe will not substantially interfere with (including, without
limitation, adversely affecting the pricing of) the offering of all the securities that the Company desires to sell for its own
account and all the Registrable Securities that the Holders desire to sell for their own accounts.

 

(e)
Nothing contained in this Section 3 shall create any liability on the part of the Company to the Holders if the Company
for any reason should decide not to file a Registration Statement for which Piggy-Back Rights are available or to withdraw such
Registration Statement subsequent to its filing, regardless of any action whatsoever Holders may have taken, whether as a result
of the issuance by the Company of any notice hereunder or otherwise.

 

(f)
A request made by Holders pursuant to their Piggy- Back Rights to include Registrable Securities in a Registration Statement shall
not be deemed to be a Demand Registration described in Section 2(d)(ii) hereof.

 

Section 4. Selection
of Underwriters. In connection with any Underwritten Offering made pursuant to a Demand or a Piggy-Back Right, the
Company may, at its sole discretion, select a book running managing underwriter to manage the Underwritten Offering with the
prior written consent of the Holders (which consent shall not be unreasonably withheld); provided, however, that the
Company shall have no obligation to use an underwriter in connection with any registration made pursuant to a Demand or
Piggy-Back Request.

 

Section 5. Blackout
Periods. If (i) within five (5) Business Days following the exercise by a Holder of a Demand, the Company
determines in good faith and notifies such Holder in writing that the registration and distribution of Registrable Securities
(or the use of the Registration Statement or related Prospectus) resulting from a Demand received from such Holder would
materially and adversely interfere with any planned or proposed business combination transaction involving the Company, or
any pending financing, acquisition, corporate reorganization or any other corporate development involving the Company or any
of its subsidiaries or (ii) following the exercise by such Holder of a Demand but before the effectiveness of the
Registration Statement, (A) a business combination, tender offer, acquisition or other corporate event involving the Company
is proposed, initiated or announced by another Person beyond the control of the Company (an “Uncontrolled
Event”), (B) in the reasonable judgment of at least a majority of the members of the Board of Directors of the
Company (the “Board”), the filing or seeking the effectiveness of the Registration Statement would
materially and adversely interfere with such Uncontrolled Event or would otherwise materially and adversely affect the
Company and (C) the Company promptly so notifies such Holder, then the Company shall be entitled to (x) postpone the filing
of the Registration Statement otherwise required to be filed by the Company pursuant to Section 2 hereof, or (y) elect
that the effective Registration Statement not be used, in either case for a reasonable period of time, but not to exceed
ninety (90) days after the date that (1) the Demand was made (in the case of an clause (i) above) or (2) the Company so
notifies such Holder of such determination (in the case of clause (ii) above) (each, a “Blackout Period”).
Any such written notice shall contain a general statement of the reasons for such postponement or restriction on use and an
estimate of the anticipated delay. The Company shall (a) promptly notify the Holder making a Demand of the expiration or
earlier termination of such Blackout Period and (b) use its reasonable best efforts to effect the Demand Registration as
promptly as practicable after the end of the Blackout Period.

 

    	 	6	 

     

    

 

Section 6. Holdback.

 

(a)
If (i) at any time after the date hereof, the Company shall file a Registration Statement (other than a registration on Form S-4,
Form S-8 or Form S-3 (with respect to dividend reinvestment plans and similar plans) or any successor forms thereto) with respect
to any shares of its capital stock, and (ii) upon reasonable prior notice the managing underwriter or underwriters (in the case
of an Underwritten Offering) advise the Company and the Holders in writing that a sale or distribution of Registrable Securities
would adversely impact such offering, then the Holders shall, to the extent not inconsistent with applicable law, refrain from
effecting any sale or distribution of Registrable Securities during the period commencing on the effective date of such Registration
Statement and continuing until the ninetieth (90th) day after the effective date of such Registration Statement; provided
that such restriction shall apply to the Holders only if in connection with such offering, the underwriters require the directors
and executive officers of the Company to refrain from selling the Company’s securities for a like period and on like terms
(such period, a “Holdback Period”).

 

(b)
During the ninety (90) day period commencing on the effective date of a Registration Statement filed by the Company on behalf
of Holders in connection with an Underwritten Offering pursuant to a Demand, the Company shall not effect (except pursuant to
registrations on Form S-4 or Form S-8 or Form S-3 (with respect to dividend reinvestment plans and similar plans) or any successor
forms thereto and except pursuant to Section 2(h) hereof) any public sale or distribution of its securities.

 

Section 7. Ineligibility
to Effect a Demand Registration. If, following receipt of a Demand (other than the Initial Demand) from a Holder, after giving
effect to any Holdback Period and any Blackout Period, the Company has not filed a Registration Statement for the Registrable
Securities so requested to be registered or has not used its reasonable best efforts to cause such Registration Statement to become
effective because it is not eligible to effect a registration pursuant to the Securities Act, the Company shall have 60 additional
days to file such Registration Statement for the Registrable Securities so requested to be registered or to use its reasonable
best efforts to cause such Registration Statement to become effective (such additional days, the “Ineligibility Accommodation
Period”).

 

Section 8. Intentionally
Omitted.

 

Section 9. Registration
Procedures. If and whenever the Company shall be required to use its reasonable best efforts to effect or cause
the registration of any Registrable Securities under the Securities Act as provided in this Agreement, the Company shall and,
with respect to Section 9(m) and Section 9(n), the Holders shall:

 

(a)
prepare and file with the SEC a Registration Statement with respect to such Registrable Securities on any form for which the Company
then qualifies or that counsel for the Company shall deem appropriate, and which form shall be available for the sale of the Registrable
Securities in accordance with the intended methods of distribution thereof, and use its reasonable best efforts to cause such
Registration Statement to become and remain effective;

 

(b)
prepare and file with the SEC amendments and post- effective amendments to such Registration Statement and such amendments and
supplements to the Prospectus used in connection therewith as may be necessary to maintain the effectiveness of such registration
or as may be required by the rules, regulations or instructions applicable to the registration form utilized by the Company or
by the Securities Act for a Shelf Registration or otherwise necessary to keep such Registration Statement effective for at least
ninety (90) days (or one hundred eighty (180) days in the case of a Shelf Registration) and cause the Prospectus as so supplemented
to be filed pursuant to Rule 424 under the Securities Act, and to otherwise comply with the provisions of the Securities Act with
respect to the disposition of all securities covered by such Registration Statement until the earlier of (x) such 90th or 180th
day, as the case may be, or (y) such time as all Registrable Securities covered by such Registration Statement shall have ceased
to be Registrable Securities (it being understood that the Company at its option may determine to maintain such effectiveness
for a longer period, whether pursuant to a Shelf Registration or otherwise); provided, however, that a reasonable time
before filing a Registration Statement or Prospectus, or any amendments or supplements thereto (other than reports required to
be filed by it under the Exchange Act), the Company shall furnish to the Holders, the managing underwriter and their respective
counsel for review and comment, copies of all documents proposed to be filed;

 

    	 	7	 

     

    

 

(c)
furnish, without charge, to the Holders and to any underwriter in connection with an Underwritten Offering such number of conformed
copies of such Registration Statement and of each amendment and post-effective amendment thereto (in each case including all exhibits)
and such number of copies of any Prospectus or Prospectus supplement and such other documents as Holders or such underwriter may
reasonably request in order to facilitate the disposition of the Registrable Securities by the Holders or the underwriter (the
Company hereby consenting to the use (subject to the limitations set forth in Section 9(n) hereof) of the Prospectus or
any amendment or supplement thereto in connection with such disposition);

 

(d)
use its reasonable best efforts to register or qualify such Registrable Securities covered by such Registration Statement under
such other securities or “blue sky” laws of such jurisdictions as Holders shall reasonably request, except that the
Company shall not for any such purpose be required to qualify generally to do business as a foreign corporation in any jurisdiction
where, but for the requirements of this Section 9(d), it would not be obligated to be so qualified, to subject itself to
taxation in any such jurisdiction, or to consent to general service of process in any such jurisdiction;

 

(e)
as promptly as practicable, notify the managing underwriters (if any) and Holders, at any time when a Prospectus relating thereto
is required to be delivered under the Securities Act within the appropriate period mentioned in Section 9(b) hereof, of
the Company’s becoming aware that the Prospectus included in such Registration Statement, as then in effect, includes an
untrue statement of a material fact or omits to state a material fact required to be stated therein or necessary to make the statements
therein not misleading in light of the circumstances then existing, and, as promptly as practicable, prepare and furnish to the
Holders a reasonable number of copies of an amendment or supplement to such Registration Statement or related Prospectus as may
be necessary so that, as thereafter delivered to the purchasers of such Registrable Securities, such Prospectus shall not include
an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the
statements therein not misleading in light of the circumstances then existing;

 

(f)
notify the Holders, as promptly as practicable, at any time:

 

(i)
when the Prospectus or any Prospectus supplement or post- effective amendment has been filed, and, with respect to the Registration
Statement or any post-effective amendment, when the same has become effective;

 

(ii)
of any request by the SEC for amendments or supplements to the Registration Statement or the Prospectus or for additional information;

 

(iii)
of the issuance by the SEC of any stop order suspending the effectiveness of the Registration Statement or any order preventing
the use of a related Prospectus, or the initiation (or any overt threats) of any proceedings for such purposes;

 

(iv)
of the receipt by the Company of any written notification of the suspension of the qualification of any of the Registrable Securities
for sale in any jurisdiction or the initiation (or overt threats) of any proceeding for that purpose; and

 

(v)
if at any time the representations and warranties of the Company contemplated by Section 9(i)(i) below cease to be true
and correct in all material respects;

 

(g)
otherwise comply with all applicable rules and regulations of the SEC, and make available to Holders an earnings statement that
shall satisfy the provisions of Section 11(a) of the Securities Act, provided that the Company shall be deemed to have
complied with this Section 9(g) if it shall have complied with Rule 158 under the Securities Act;

 

(h)
use its reasonable best efforts to cause all such Registrable Securities to be listed on the NYSE, NASDAQ or any other national
securities exchange or automated quotation system on which the class of Registrable Securities being registered is then listed,
if such Registrable Securities are not already so listed and if such listing is then permitted under the rules of such exchange,
and to provide a transfer agent and registrar for such Registrable Securities covered by such Registration Statement no later
than the effective date of such Registration Statement;

 

    	 	8	 

     

    

 

(i)
enter into agreements (including, if applicable, an underwriting agreement and other customary agreements in the form customarily
entered into by other companies in comparable underwritten offerings) and take all other appropriate and all commercially reasonable
actions in order to expedite or facilitate the disposition of such Registrable Securities and in such connection, whether or not
an underwriting agreement shall be entered into and whether or not the registration shall be an underwritten registration:

 

(i)
make such representations and warranties to the Holders and the underwriters, if any, in form, substance and scope as are customarily
made by companies to underwriters in comparable underwritten offerings;

 

(ii)
obtain opinions of counsel to the Company and updates thereof (which counsel and opinions shall be reasonably satisfactory (in
form, scope and substance) to the managing underwriters) addressed to the underwriters covering the matters customarily covered
in opinions requested in comparable underwritten offerings by the Company;

 

(iii)
obtain “comfort letters” and updates thereof from the Company’s independent certified public accountants addressed
to the Board and the underwriters, if any, such letters to be in customary form and covering matters of the type customarily covered
in “comfort letters” by independent accountants in connection with comparable underwritten offerings on such date
or dates as may be reasonably requested by the managing underwriters, or if such offering is not an Underwritten Offering, the
Board; provided, however, that in connection with any non-Underwritten Offering, such comfort letter shall not be required
except to the extent requested by the Board;

 

(iv)
provide the indemnification in accordance with the provisions and procedures of Section 13 hereof to all parties to be indemnified
pursuant to such Section 13 and any other indemnification customarily required in underwritten public offerings; and

 

(v)
deliver such documents and certificates as may be reasonably requested by the Holders and the managing underwriters, if any, to
evidence compliance with Section 9(f) above and with any customary conditions contained in the underwriting agreement or
other agreement entered into by the Company.

 

(j)
cooperate with the Holders and the managing underwriter or underwriters, if any, to facilitate, to the extent reasonable under
the circumstances, the timely preparation and delivery of certificates representing the securities to be sold under such Registration
Statement, and enable such securities to be in such denominations and registered in such names as the managing underwriter or
underwriters, if any, or the Holders may request and/or in a form eligible for deposit with the Depository Trust Company;

 

(k)
make available to the Holders, any underwriter participating in any disposition pursuant to such Registration Statement, and any
attorney, accountant or other agent retained by the Holders or such underwriter (collectively, the “Inspectors”),
reasonable access to appropriate officers and employees of the Company and the Company’s subsidiaries to ask questions and
to obtain information reasonably requested by such Inspector and all financial and other records and other information, pertinent
corporate documents and properties of any of the Company and its subsidiaries and Affiliates (collectively, the “Records”),
as shall be reasonably necessary to enable them to exercise their due diligence responsibility; provided, however, that
the Records that the Company determines, in good faith, to be confidential and which it notifies the Inspectors in writing are
confidential shall not be disclosed to any Inspector unless such Inspector signs a confidentiality agreement in customary form
reasonably satisfactory to the Company or either (i) the disclosure of such Records is necessary to avoid or correct a misstatement
or omission of a material fact in such Registration Statement, or (ii) the release of such Records is ordered pursuant to a subpoena
or other order from a court of competent jurisdiction; provided, further, that any decision regarding the disclosure of
information pursuant to subclause (i) shall be made only after consultation with counsel for the applicable Inspectors; and provided,
further, that the Holders agree that they shall, promptly after learning that disclosure of such Records is sought in a court
having jurisdiction, give notice to the Company and allow the Company, at the Company’s expense, to undertake appropriate
action to prevent disclosure of such Records;

 

    	 	9	 

     

    

 

(l)
in the event of the issuance of any stop order suspending the effectiveness of the Registration Statement or of any order suspending
or preventing the use of any related Prospectus or suspending the qualification of any Registrable Securities included in the
Registration Statement for sale in any jurisdiction, the Company shall use its reasonable best efforts promptly to obtain its
withdrawal;

 

(m)
the Holders shall furnish the Company with such information regarding them and pertinent to the disclosure requirements relating
to the registration and the distribution of such securities as the Company may from time to time reasonably request in writing
or as shall be required in connection with the action to be taken by the Company hereunder; and

 

(n)
the Holders shall, upon receipt of any notice from the Company of the happening of any event of the kind described in Section
9(e) hereof, forthwith discontinue disposition of Registrable Securities pursuant to the Prospectus or Registration Statement
covering such Registrable Securities until the Holders shall have received copies of the supplemented or amended Prospectus contemplated
by Section 9(e) hereof, and, if so directed by the Company, the Holders shall deliver to the Company (at the Company’s
expense) all copies, other than permanent file copies then in their possession, of the Prospectus covering such Registrable Securities
current at the time of receipt of such notice.

 

Section 10. Registration
Expenses. Except as otherwise provided herein, in connection with all registrations of Registrable Securities made pursuant
to the Shelf Registration to be filed pursuant to Section 2(a) or any Demand Registration or Piggy-Back Rights, the Company
shall pay all Registration Expenses; provided, however, that the Holders shall pay, and shall hold the Company harmless
from, (i) any underwriting discounts and commissions and transfer taxes relating to the sale or disposition of Registrable
Securities and (ii) any fees, expenses or disbursements of Holders’ counsel and other advisors.

 

Section 11. Rule
144. From and after the date which is more than one hundred eighty (180) days after the date hereof, the Company shall,
at all times when the Holders Beneficially Own any Registrable Securities, take such measures and file and/or make available such
information, documents and reports as shall be required by the SEC as a condition to the availability of Rule 144; provided,
however, that the Company need not take any of the foregoing actions during any Ineligibility Accommodation Period.

 

Section 12. Covenants
of Holders. Each Holder hereby covenants and agrees that it shall not sell any Registrable Securities in violation of
the Securities Act or this Agreement.

 

Section 13 .Indemnification;
Contribution.

 

(a)
The Company shall indemnify and hold harmless each Holder, its respective officers and directors, and each Person, if any, who
controls such Holder within the meaning of either Section 15 of the Securities Act or Section 20 of the Exchange Act and any agents,
representatives or advisers thereof against all losses, claims, damages, liabilities and expenses (including reasonable attorneys’
fees and expenses and reasonable costs of investigation) incurred by such party pursuant to any actual or threatened action, suit,
proceeding or investigation arising out of or based upon (i) any untrue or alleged untrue statement of material fact contained
in any Registration Statement, any Prospectus or preliminary Prospectus, or any amendment or supplement to any of the foregoing,
(ii) any omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the
statements therein (in the case of a Prospectus or a preliminary Prospectus, in light of the circumstances then existing) not
misleading, or (iii) any violation or alleged violation by the Company of any United States federal, state or common law rule
or regulation applicable to the Company and relating to action required of or inaction by the Company in connection with any such
registration except in each case insofar as the same arise out of or are based upon, any such untrue statement or omission made
in reliance on and in conformity with written information with respect to the Holders furnished in writing to the Company by the
Holders or their counsel expressly for use therein. In connection with an Underwritten Offering, the Company shall indemnify the
underwriters thereof, their officers, directors and agents and each Person who controls such underwriters (within the meaning
of Section 15 of the Securities Act or Section 20 of the Exchange Act) to the same extent as provided above with respect to the
indemnification of the Holders.

 

    	 	10	 

     

    

 

(b)
Any Person entitled to indemnification hereunder agrees to give prompt written notice to the indemnifying party after the receipt
by such indemnified party of any written notice of the commencement of any action, suit, proceeding or investigation or threat
thereof made in writing for which such indemnified party may claim indemnification or contribution pursuant to this Section
13 (provided that failure to give such notification shall not affect the obligations of the indemnifying party pursuant
to this Section 13 except to the extent the indemnifying party shall have been materially prejudiced as a result of such
failure). In case any such action shall be brought against any indemnified party and it shall notify the indemnifying party of
the commencement thereof, the indemnifying party shall be entitled to participate therein and, to the extent that it shall wish,
jointly with any other indemnifying party similarly notified, to assume the defense thereof, with counsel reasonably satisfactory
to such indemnified party (who shall not, except with the consent of the indemnified party, be counsel to the indemnifying party),
and after notice from the indemnifying party to such indemnified party of its election so to assume the defense thereof, the indemnifying
party shall not be liable to such indemnified party under this Section 13 for any legal expenses of other counsel or any
other expenses, in each case subsequently incurred by such indemnified party, in connection with the defense thereof other than
reasonable costs of investigation. Notwithstanding the foregoing, if (i) the indemnifying party shall not have employed counsel
reasonably satisfactory to such indemnified party to take charge of the defense of such action within a reasonable time after
notice of commencement of such action (so long as such failure to employ counsel is not the result of an unreasonable determination
by such indemnified party that counsel selected pursuant to the immediately preceding sentence is unsatisfactory) or if the indemnifying
party shall not have demonstrated to the reasonable satisfaction of the indemnified party its ability to finance such defense,
or (ii) the indemnified party shall have reasonably concluded or been advised by counsel that there may be legal defenses available
to other indemnified parties to such action which could result in a conflict of interest for such counsel or prejudice the prosecution
of the defenses available to such indemnified party, then such indemnified party shall have the right to employ separate counsel
of its choosing, at the expense of the indemnifying party. No indemnifying party shall consent to entry of any judgment or enter
into any settlement without the consent (which consent, in the case of an action, suit, claim or proceeding exclusively seeking
monetary relief, shall not be unreasonably withheld) of the applicable indemnified party.

 

(c)
If the indemnification from the indemnifying party provided for in this Section 13 is unavailable to an indemnified party
hereunder in respect of any losses, claims, damages, liabilities or expenses referred to therein, then the indemnifying party,
in lieu of indemnifying such indemnified party, shall contribute to the amount paid or payable by such indemnified party as a
result of such losses, claims, damages, liabilities and expenses in such proportion as is appropriate to reflect the relative
fault of the indemnifying party and indemnified party in connection with the actions or omissions which resulted in such losses,
claims, damages, liabilities and expenses, as well as any other relevant equitable considerations. The relative fault of such
indemnifying party and indemnified party shall be determined by reference to, among other things, whether any action in question,
including any untrue or alleged untrue statement of a material fact or omission or alleged omission to state a material fact,
has been made by, or relates to information supplied (in writing, in the case of the Holders) by, such indemnifying party or indemnified
party, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such action
or omission. The amount paid or payable by a party as a result of the losses, claims, damages, liabilities and expenses referred
to above shall be deemed to include, subject to the limitations set forth in Section 13(b) hereof, any legal and other
fees and expenses reasonably incurred by such indemnified party in connection with any investigation or proceeding. The parties
hereto agree that it would not be just and equitable if contribution pursuant to this Section 13(c) were determined by
pro rata allocation or by any other method of allocation which does not take account of the equitable considerations referred
to above in this Section 13(c). Any underwriter’s obligations in this Section 13(c) to contribute shall be
several in proportion to the number of Registrable Securities underwritten by them and not joint. Notwithstanding the provisions
of this Section 13(c), no underwriter shall be required to contribute any amount in excess of the amount by which the total
price at which the Registrable Securities underwritten by it and distributed to the public were offered to the public exceeds
the amount of any damages which such underwriter has otherwise been required to pay by reason of such untrue or alleged untrue
statement or omission or alleged omission. No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f)
of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation.
If indemnification is available under this Section 13, the indemnifying parties shall indemnify each indemnified party
to the fullest extent provided in Section 13(a) hereof without regard to the relative fault of such indemnifying parties
or indemnified party or any other equitable consideration provided for in this Section 13(c).

    	 	11	 

     

    

 

(d)
The provisions of this Section 13 shall be in addition to any liability which any party may have to any other party and
shall survive any termination of this Agreement. The indemnification provided by this Section 13 shall survive the Transfer
of such Registrable Securities by the Holders and shall remain in full force and effect irrespective of any investigation made
by or on behalf of an indemnified party.

 

Section 14. Injunctions.
EACH PARTY HERETO ACKNOWLEDGES AND AGREES THAT IRREPARABLE DAMAGE WOULD OCCUR IN THE EVENT THAT ANY OF THE PROVISIONS OF THIS
AGREEMENT WERE NOT PERFORMED IN ACCORDANCE WITH ITS SPECIFIC TERMS OR WERE OTHERWISE BREACHED. THEREFORE, EACH PARTY SHALL BE
ENTITLED TO AN INJUNCTION OR INJUNCTIONS TO PREVENT BREACHES OF THE PROVISIONS OF THIS AGREEMENT AND TO ENFORCE SPECIFICALLY THE
TERMS AND PROVISIONS HEREOF IN ANY COURT HAVING JURISDICTION, SUCH REMEDY BEING IN ADDITION TO ANY OTHER REMEDY TO WHICH SUCH
PARTY MAY BE ENTITLED AT LAW OR IN EQUITY.

 

Section 15. Amendments
and Waivers. No amendment, modification, supplement, termination, consent or waiver of any provision of this Agreement,
nor consent to any departure herefrom, shall in any event be effective unless the same is in writing and is signed by the party
against whom enforcement of the same is sought. Any waiver of any provision of this Agreement and any consent to any departure
from the terms of any provision of this Agreement shall be effective only in the specific instance and for the specific purpose
for which given.

 

Section 16. Notices.
All notices, consents, requests, demands and other communications hereunder must be in writing, and shall be deemed to have been
duly given or made: (i) when delivered in person; (ii) three (3) days after deposited in the United States mail, first class postage
prepaid; (iii) in the case of telegraph or overnight courier services, one (1) Business Day after delivery to the telegraph company
or overnight courier service with payment provided; or (iv) in the case of telex or telecopy or fax, when sent, verification received;
in each case addressed as follows:

 

if
to the Company:

 

Cadiz
Inc.

550
South Hope Street, Suite 2850

Los
Angeles, CA 90071

Telephone:
(213) 271-1600

Facsimile:
(213) 271-1614

Attention:
Chief Financial Officer

 

with
a copy to:

 

Kevin
Friedmann, Esq.

Greenberg
Traurig, LLP

1840
Century Park East, suite 1900

Los
Angeles, CA 90067-2121

Telephone:
(310) 586-7747

Facsimile:
(310) 586-7800

 

if
to the Holders, to the addresses set forth on the signature pages attached hereto,

 

with
a copy to:

 

Christopher
Cox, Esq.

Cadwalader,
Wickersham & Taft LLP

One
World Financial Center

New
York, NY 10281

Telephone:
(212) 504-6888

Facsimile:
(212) 504-6666

 

    	 	12	 

     

    

 

Section 17. Successors
and Assigns. This Agreement shall inure to the benefit of and be binding upon the successors and assigns of each of
the parties hereto, without the need for an express consent by the Company thereto, provided, that (A) a transferring
Holder shall, within ten (10) days after a transfer, furnish the Company written notice of the name and address of the transferee
or assignee and (B) such transferee or assignee, prior to or simultaneous with such transfer or assignment, shall agree in
writing to be subject to and bound by the terms of this Agreement as a Holder party hereto.

 

Section 18. Representations
and Warranties of the Company. The Company and each of the Holders represents and warrants to the other parties hereto
as follows:

 

(a)
Such party is duly organized and validly existing under the laws of its jurisdiction of organization.

 

(b)
Such party has full corporate or other organizational power and authority to enter into this Agreement and to carry out and perform
its obligations hereunder. The execution, delivery and performance by such party of this Agreement have been duly authorized and
approved by all necessary corporate or other organizational action. This Agreement has been duly authorized, executed and delivered
by such party and constitutes the legal, valid and binding obligation of such party enforceable against it in accordance with
its terms, subject to applicable bankruptcy, insolvency and similar laws affecting creditors’ rights generally and to general
principles of equity.

 

(c)
The execution, delivery and performance by such party of its obligations under this Agreement, and compliance by such party with
the terms and conditions hereof will not (i) violate, with or without the giving of notice or the lapse of time, or both, or require
any registration, qualification, approval or filing (other than registrations, qualifications, approvals and filings that have
already been made or obtained) under, any provision of law, statute, ordinance or regulation applicable to it or any of its subsidiaries
and (ii) conflict with, or require any consent or approval under, or result in the breach or termination of any provision of,
or constitute a default under, or result in the acceleration of the performance of the obligations of such party or any of its
subsidiaries under, or result in the creation of any claim, lien, charge or encumbrance upon any of the properties, assets or
businesses of such party or any of its subsidiaries pursuant to (x) its organizational documents, (y) any order, judgment, decree,
law, ordinance or regulation applicable to it or any of its subsidiaries or (z) any contract, instrument, agreement or restriction
to which it or any of its subsidiaries is a party or by which it or any of its subsidiaries or any of its respective assets or
properties is bound.

 

Section 19. Counterparts.
This Agreement may be executed in one or more counterparts, all of which shall be considered one and the same agreement and shall
become effective when one or more counterparts have been signed by each of the parties and delivered to the other parties.

 

Section 20. Descriptive
Headings. The descriptive headings used herein are inserted for convenience of reference only and are not intended to
be part of or to affect the meaning or interpretation of this Agreement.

 

Section 21. Choice
of Law; Venue. THIS AGREEMENT SHALL BE CONSTRUED, INTERPRETED AND THE RIGHTS OF THE PARTIES DETERMINED IN ACCORDANCE
WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO THE CONFLICTS OF LAW PRINCIPLES THEREOF. VENUE FOR ANY LEGAL ACTION
UNDER THIS AGREEMENT SHALL BE IN THE STATE OR FEDERAL COURTS LOCATED IN THE BOROUGH OF MANHATTAN IN THE CITY OF NEW YORK, NEW
YORK.

 

Section 22. Severability.
In the event that any one or more of the provisions contained herein, or the application thereof in any circumstances, shall be
held invalid, illegal or unenforceable in any respect for any reason, the validity, legality and enforceability of any such provision
in every other respect and of the remaining provisions contained herein shall not be in any way impaired thereby, it being intended
that all remaining provisions contained herein shall not be in any way impaired thereby.

 

Section 23. Entire
Agreement. This Agreement, including any schedules, exhibits or attachments referred to herein, is intended by the parties
as a final expression and a complete and exclusive statement of the agreement and understanding of the parties hereto in respect
of the subject matter hereof. There are no restrictions, promises, warranties or undertakings with respect to the subject matter
hereof, other than those set forth or referred to herein. This Agreement supersedes all prior agreements and understandings between
the parties with respect to such subject matter, including the 2013 Registration Rights Agreement.

 

Section 24. Further
Actions; Reasonable Best Efforts. Each Holder shall use its reasonable best effort to take or cause to be taken all
appropriate action and to do or cause to be done all things reasonably necessary, proper or advisable under applicable law and
regulations to assist the Company in the performance of its obligations hereunder, including, without limitation, the preparation
and filing of any Registration Statements pursuant to any Demand.

 

[Signature
Pages Follow]

 

    	 	13	 

     

    

 

IN
WITNESS WHEREOF, the parties have executed this Registration Rights Agreement as of the day and year first above written.

 

	CADIZ
    INC.	 
	 	 
	By:	 	 
	Name:	 	 
	Title:	 	 

 

[Signature
Page to Registration Rights Agreement]

 

    	 		 

     

    

 

	HOLDERS:	 
	 	 
	LC
    CAPITAL MASTER FUND, LTD.	 
	 	 
	By:	        	 
	Name:	 	 
	Title:	 	 

 

	Address:	 	 
	 	 
	 	 
	 	 

 

[Signature
Page to Registration Rights Agreement]

 

    	 		 

     

    

 

	ELKHORN
    PARTNERS LIMITED PARTNERSHIP	 
	 	 
	By:	               	 
	Name:	 	 
	Title:	 	 

 

	Address:	 	 
	 	 
	 	 
	 	 

 

[Signature
Page to Registration Rights Agreement]

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