Document:

exh4-12.htm

    SUBSCRIPTION
AGREEMENT

     

    
      	
              CADIZ
      INC.

              550
      South Hope Street, Suite 2850

              Los
      Angeles, CA  90071

            	
              PERSONAL
      AND CONFIDENTIAL

            

    

    

    Ladies
and Gentlemen:

     

    Cadiz
Inc. (the “Company”) is offering
(the “Offering”) up to
165,000 units (the “Units”) for
consideration, consisting of cash and/or service, valued at $31.50 per Unit (the
“Purchase
Price”), each Unit consisting of three (3) shares of the Company's Common
Stock, par value $0.01 per share (the “Common Stock”) and
two (2) Common Stock purchase warrants in the form of Exhibit "A" hereto (the
“Warrant/s”).

     

    One
Warrant will entitle the holder to purchase, commencing 90 days from the date of
issuance, one (1) share of Common Stock at an exercise price of $12.50 per
share.  This Warrant will have a term of one (1) year, but will be
callable by the Company commencing six months following completion of this
Offering if the closing market price of the Company's Common Stock exceeds
$18.75 for 10 consecutive trading days.

     

    The
second Warrant will entitle the holder to purchase, commencing 90 days from the
date of issuance, one (1) share of Common Stock at an exercise price of $12.50
per share.  This Warrant will have a term of three (3) years and is
not callable by the Company.

     

    The
undersigned hereby agrees to purchase, at the Purchase Price and on the terms
and subject to the conditions set forth herein, that number of Units which is
set forth on the signature page of this Subscription Agreement.

     

    The
proceeds of the Offering will be applied by the Company for general corporate
purposes.

     

    The
undersigned understands it is contemplated that the Units will not be registered
under the Securities Act of 1933, as amended (the “Act”), or the state
blue sky laws.  The undersigned also understands that in order to
assure that the Offering will be exempt from registration under the Act and
various state securities laws, each prospective offeree must have such knowledge
and experience in financial and business matters in order that the undersigned
is able to evaluate the risks and merits of an investment in the
Units.

     

    The
undersigned understands that the information supplied in this Subscription
Agreement will be disclosed to no one other than the officers and directors and
employees of the Company and/or to counsel, accountants, advisors, or agents for
the Company without the undersigned’s consent, except as necessary for the
Company to use such information to support the exemption from registration under
the Act to
be claimed for this transaction, and except as necessary to be provided to
federal, state and local governmental and other regulatory agencies, including
the Securities and Exchange Commission (the “SEC”) or as otherwise
may be required by law or legal process.

     

    AN
INVESTMENT IN THE UNITS OFFERED HEREBY SHOULD BE CONSIDERED HIGHLY SPECULATIVE,
INVOLVING SUBSTANTIAL RISKS AND SUITABLE ONLY FOR PERSONS OF ADEQUATE FINANCIAL
MEANS WHO HAVE NO NEED FOR LIQUIDITY WITH RESPECT TO THIS INVESTMENT AND WHO CAN
BEAR THE RISKS ASSOCIATED WITH A COMPLETE LOSS OF THEIR
INVESTMENT.

     

    A.    Subscription.  The
Company shall sell to the undersigned, and the undersigned shall purchase, the
Units subscribed for by the undersigned on the signature page hereto (the “Closing”), upon
satisfaction of the following conditions:

     

    1    the
undersigned shall have delivered to the Company this Subscription Agreement
pursuant to the method of notice set forth in Section H hereof on or prior
to 12:00p.m. Eastern Daylight Time, Friday, December 19, 2008 unless
such deadline is waived or extended by the Company in its sole discretion;
and

     

    2    this
Subscription Agreement shall have been countersigned by the Company, after
review for compliance with applicable securities laws.

     

    B.    Representations
and Warranties of the Undersigned.  In order to induce the
Company to issue the Units to the undersigned as a prospective offeree of the
Units, the undersigned represents and warrants that:

     

    1    The
undersigned is either experienced in or knowledgeable with regard to the
business of the Company, or is capable, by reason of knowledge and experience in
financial and business matters in general, and investments in particular, of
evaluating the merits and risks of an investment in the Units, and is able to
bear the economic risk of the investment and can otherwise be reasonably assumed
to have the capacity to protect the undersigned’s own interests in connection
with the investment in the Units.

     

    2    The
undersigned is an “accredited investor”,
as that term is defined in Rule 501(a) promulgated under the Act.

     

    3    In
evaluating the merits and risks of an investment in the Units, the undersigned
has not relied upon the Company or the Company’s attorneys or advisers for legal
or tax advice, and has, if desired, in all cases sought the advice of the
undersigned’s own personal legal counsel and tax advisers.

     

    4    The
acquisition of the Units by the undersigned is solely for the undersigned’s own
account, for investment, and not with a view to, or to offer or sell for an
issuer in connection with, the distribution of the Units (or the securities
constituting the Units), or to participate or have a direct or indirect
participation in any such undertaking, or to participate or have a participation
in the direct or indirect underwriting of any such undertaking.  The
undersigned has no contract, arrangement or understanding with the Company or
any other person to participate in the distribution of the Units or underlying
securities.

     

    5    The offer
to sell the Units was directly communicated to the undersigned, and the
undersigned was able to ask questions of and receive answers concerning the
terms of this transaction.  At no time was the undersigned 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.

     

    6    The
undersigned has heretofore received and reviewed the Company’s press releases,
public filings with the SEC, and exhibits attached thereto (the “Disclosure
Documents”).  In addition to the foregoing, the undersigned has
had the opportunity to speak directly with officers of the Company concerning
the Company’s business plan and operations.

     

    7    The
undersigned represents and warrants that it never has been represented,
guaranteed, or warranted to the undersigned by any officer or director of the
Company, their agents or employees or any other person in connection with the
Company, expressly or by implication, any of the following:

     

    (a)    the
approximate or exact length of time that the undersigned will be required to
remain as the owner of the Units or the securities underlying the
Units;

     

    (b)    the exact
amount of profit and/or amount or type of consideration, profits or losses
(including tax benefits) to be realized, if any, by the Company; or

     

    (c)    that the
past performance or experience of the officers and directors of the Company, or
any other person connected with the Company can predict the results of the
ownership of the Units or the overall success of the Company.

     

    8    The
undersigned represents and warrants that the undersigned has been advised
that:

     

    (a)    the
issuance of the Units that the undersigned is acquiring has not been registered
under the Act, and the Units and securities underlying the Units must be held
indefinitely unless a transfer of the Units and/or such securities is
subsequently registered under the Act or an exemption from such registration is
available;

     

    (b)    the Units
and securities underlying the Units that the undersigned is acquiring are “restricted
securities” as that term is defined in Rule 144 promulgated under the
Act; and

     

    (c)    any and
all certificates representing the Units and securities underlying the Units
shall bear an investment legend restricting the transfer of such Units and
securities underlying the Units.

     

    9    The
undersigned understands the following:

     

    (a)    there are
a number of risks relating to an investment in the Company as set forth herein,
as further described in the Disclosure Documents and in the undersigned’s direct
communications with the Company;

     

    (b)    the
undersigned may lose the undersigned’s entire investment in the Units and the
Company; and

     

    (c)    no
federal or state agency, or any other regulatory body, has passed upon the
Units, or an investment therein, or made any finding or determination as to the
fairness of the Offering.

     

    10    The
undersigned has relied solely upon this Subscription Agreement, the Disclosure
Documents and independent investigations made by the undersigned or the
undersigned’s representatives with respect to the undersigned’s investment in
the Units, and no oral or written representations inconsistent with the contents
of the Disclosure Documents have been made to the undersigned by the Company or
any of its representatives.

     

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

     

    12    The
undersigned has been advised that:

     

    (a)    Any U.S.
federal tax advice contained in this Agreement or the Disclosure Documents is
not intended or written to be used, and cannot be used, by any taxpayer for the
purpose of avoiding penalties under the Internal Revenue Code;

     

    (b)    The
advice was written in connection with the promotion or marketing of the
Offering; and

     

    (c)    The
undersigned should seek advice based on the undersigned's particular
circumstances from an independent tax advisor.

     

    13    The
undersigned, if not an individual, is empowered and duly authorized to enter
into this Agreement under any applicable partnership agreement, trust
instrument, pension plan, charter, articles or certificate of incorporation,
bylaws or any other like governing document.  The person signing this
Agreement on behalf of the undersigned is empowered and duly authorized to do so
by the applicable governing document, board of directors or stockholder
resolution, or the like.

     

    C.    Representations,
Warranties and Covenants of the Company.  In order to induce
the undersigned to purchase the Units from the Company, the Company represents
and warrants as follows:

     

    1    The
Company has full corporate power and authority to enter into this Agreement and
to perform its obligations hereunder and to consummate the transactions
contemplated hereby, including, without limitation, the issuance and sale of the
Units to the undersigned.  The execution, delivery and performance of
this Agreement by the Company and the consummation by the Company of the
transactions contemplated hereby have been duly and validly approved by the
Company’s Board of Directors, and no other corporate proceedings on the part of
the Company or its stockholders are necessary to authorize the execution,
delivery and performance of this Agreement by the Company and the consummation
by the Company of the transactions contemplated hereby, including, without
limitation, under the Delaware General Corporation Law, and the Company’s
Certificate of Incorporation and Bylaws, each as revised.  This
Agreement has been duly and validly executed and delivered by the Company and
constitutes a legal, valid and binding obligation of the Company enforceable
against the Company in accordance with its terms, except as enforceability may
be limited by bankruptcy, insolvency, reorganization, moratorium or other
similar laws affecting the enforcement of creditors’ rights generally and by
general equitable principles (regardless of whether such enforceability is
considered in a proceeding in equity or at law).

     

    2    The Units
(and securities underlying the Units) have been duly authorized by all necessary
corporate action on the part of the Company, and, when issued, shall be validly
issued, fully paid and nonassessable.

     

    3    The net
proceeds to the Company are anticipated to be used by the Company for general
corporate purposes.

     

    4    Neither
the Company, directly or indirectly, nor any agent on its behalf has offered the
Units or any similar securities or has solicited an offer to acquire the Units
or any similar securities from any person so as to require registration of the
issuance and sale of the Units sold to the undersigned under the circumstances
contemplated by this Agreement under the provisions of Section 5 of the
Act.

     

    5    The
Company represents that all documents and information provided to the
undersigned in connection with this Agreement do not include any untrue
statements of material facts, or omit to state any material facts required to
make such documents and statements accurate and not misleading

     

    6    The
Company hereby agrees and covenants as follows:

     

    
      	
              (i)  

            	
              The
      Company shall deliver a stock certificate representing the Common Stock
      underlying the Units and a warrant certificate representing the Warrant to
      the undersigned promptly following the closing of this
      Offering.

            

    

     

    
      	
              (ii)  

            	
              The
      Company shall use its best efforts to file a registration statement which
      shall include the undersigned’s Common Stock underlying the Units
      (including the Common Stock underlying the Warrant) not later than
      December 30, 2008 and to use its reasonable best efforts to cause any
      registration statement so filed by it to become effective as soon as
      possible.

            

    

     

    
      	
              (iii)  

            	
              The
      Company shall file as and when applicable, on a timely basis, all reports
      required to be filed by the Company under the Exchange
  Act.

            

    

     

    D.    Survival of
Representations, Warranties, Covenants and Agreements.  The
representations, warranties, covenants and agreements contained in this
Agreement or any other instrument delivered pursuant to this Agreement shall
survive the purchase of the Units.

     

    E.    Binding Effect;
Governing Law; Jurisdiction.  The undersigned
understands that this Subscription Agreement shall be binding upon the
undersigned’s heirs, devisees, legatees, successors-in-interest, estate,
administrators, executors, personal representatives and assigns, and shall be
construed in accordance with the laws of the State of Delaware without
regard to the principles of conflicts of law of such State.  The
Company and the undersigned hereby irrevocably consent to the nonexclusive
jurisdiction of the courts of the State of California and of any federal court
located in such State in connection with any action or proceeding arising out of
or relating to this Agreement.

     

    F.    Additional
Documents.  Each of the
parties hereby agrees to execute such other documents as may be reasonably
necessary to consummate the transaction proposed herein, including, but not
limited to, regulatory filings which may be required to be filed in either of
the parties’ state or country of residence.

     

    G.    Expenses.  Each
party shall pay their own out-of-pocket costs and expenses of counsel incurred
in connection with this Agreement and the transactions contemplated
hereby.  In any action or proceeding brought to enforce any provision
of this Agreement, or where any provision hereof is validly asserted as a
defense, the successful party shall be entitled to recover reasonable attorneys’
fees (including any fees incurred in any appeal) in addition to its costs and
expenses and any other available remedy.

     

    H.    Notices.  All notices,
communications and deliveries to be given or otherwise made to any party to this
Agreement, including delivery of stock certificates, shall be deemed to be
sufficient if contained in a written instrument and deemed received on that day
if delivered in person, received in one day if delivered by facsimile or by
overnight courier, or received in five days if duly sent by first class
registered or certified mail, return receipt requested, postage prepaid,
addressed to such party at the address set forth below or at such other address
as may hereafter be designated in writing by the addressee to the addressor
listing all parties:

     

    if to the
Company, to:

    550 South
Hope Street, Suite 2850

    Los
Angeles, CA  90071

    Attn:
Chief Financial Officer

    Fax:  (213)
271-1614

     

    if to the
undersigned, to the address listed on the signature page hereto.

     

    I.    Severability.  If one or more
provisions of this Agreement are held to be unenforceable under applicable law,
each such provision shall be excluded from this Agreement and the balance of the
Agreement shall be interpreted as if such provision were so excluded and shall
be enforceable in accordance with its terms.

     

    J.    Counterparts.  This Agreement
may be executed in any number of counterparts, or facsimile counterparts, each
of which shall be deemed an original, and all of which together shall constitute
one and the same instrument.

     

    K.    Arbitration.  Any
controversy or claim arising out of or relating to this Subscription Agreement,
or breach thereof, including without limitation claims against either party, its
affiliates, employees, professionals, officers or directors shall be settled by
binding arbitration in Los Angeles, California, in accordance with the
Commercial Arbitration Rules of the American Arbitration
Association.

     

    L.    Confidentiality.  The
undersigned agrees that it shall not disclose any information that may be
considered material non-public information of the Company, to include
negotiations regarding and execution of this Agreement (“Confidential
Information”), except that the undersigned may disclose Confidential
Information to its directors, officers, employees, representatives, affiliates
(as defined in Rule 405 under the Act) and other advisors and agents
(collectively, the “Agents”) who need to
know such information (it being understood that such Agents shall be informed by
the undersigned of the confidential nature of such information and shall be
directed by the undersigned to treat such information
confidentially).  The foregoing prohibition on disclosure shall not
apply to the extent disclosure of any Confidential Information is required by
any judicial authority or any government or regulatory agency, including the
SEC, or otherwise by applicable law.  The undersigned further agrees
that it shall keep confidential any material non-public information of the
Company received by the undersigned and shall not purchase or sell any shares of
the Company’s Common Stock (other than the purchases contemplated by this
Agreement) for as long as the undersigned possesses material non-public
information about the Company.

     

    M.    Injunctive
Relief.  Each of the
parties hereto acknowledges that in the event of a breach by any of them of any
material provision of this Agreement, the aggrieved party may be without an
adequate remedy at law.  Each of the parties therefore agrees that in
the event of such a breach hereof the aggrieved party may elect to institute and
prosecute proceedings in any court of competent jurisdiction to enforce specific
performance or to enjoin the continuing breach hereof.  By seeking or
obtaining any such relief, the aggrieved party shall not be precluded from
seeking or obtaining any other relief to which that party may be
entitled.

    
      
        
        

      

      
        
        

        
        

      

      
        
        

      

    

     

    SUBSCRIPTION
AGREEMENT SIGNATURE PAGE (PAGE 1 OF 2)

    

    Executed
this ___ day of ______________________, 2008, at _____________, City of
______________, ___________________________ (State or Country).

     

    The
undersigned hereby subscribes for XXXX Units of Cadiz Inc. for total
consideration consisting of services performed and to be performed for Cadiz
Inc. valued at $31.50 per Unit.

     

    
      	
               
      

               

            	
               

              __________________________________

              (Entity
      name)

               

               

               

              ___________________________________

              (Type
      of entity, i.e., individual Delaware corporation)

               

               

               

              By:
      ________________________________

              Name:

              Title:

            

    

    

    ACKNOWLEDGED
AND AGREED TO:

    

    CADIZ
INC., a Delaware corporation

     

    
      	By:	_____________________________ 	Date: 
      ______________________, 2008 
	 	Keith
      Brackpool 	 
	 	Chief Executive
      Officer     	 

    

     

    
      
        
        

      

      
        
        

        
        

      

      
        
        

      

    

     

    SUBSCRIPTION
AGREEMENT SIGNATURE PAGE (PAGE 2 OF 2)

    

    INSTRUCTIONS
FOR REGISTRATION OF
STOCK:

     

    Name:                      (Please
type or print in block letters):

    

    

    

    

    

    Address:

    

    

    

    

    

    INSTRUCTIONS
FOR PROVISION OF NOTICES
AND DELIVERY OF
STOCK:

    (to a
street address only, not DTC)

     

    Name:                      (Please
type or print in block letters)

    

    

    

    

    

    Address:

    

    

    

    

    

    Telephone
#:

    

    

    

    Fax
#:                      

     

    
      
        
        

      

      
        
        

        
        

      

      
        
        

      

    

     

    EXHIBIT
A – Form of Warrantexh4-13.htm

    THE
WARRANTS AND WARRANT SHARES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
1933, AS AMENDED, AND THE WARRANTS AND THE WARRANT SHARES MAY NOT BE SOLD UNLESS
THERE IS A REGISTRATION STATEMENT IN EFFECT COVERING THE WARRANTS AND WARRANT
SHARES OR THERE IS AVAILABLE AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF
THE SECURITIES ACT OF 1933 AS AMENDED.

    

    

    Void
after 5:00 p.m. New York Time, on the Expiration Date.

    Warrant
to Purchase __________________ Shares of Common Stock.

    

    

    WARRANT
TO PURCHASE COMMON STOCK

    OF

    CADIZ
INC.

    

    

    This is to Certify that, FOR VALUE
RECEIVED, ______________________________, or assigns ("Holder"), is entitled to
purchase, subject to the provisions of this Warrant, from Cadiz Inc., a Delaware
corporation ("Company"), ____________________________________ (_____________)
shares of Common Stock, $0.01 par value, of the Company ("Common Stock") at a
price of Twelve Dollars and Fifty Cents ($12.50) per share, at any time during
the period commencing on the 90th day following the date set forth on the
signature page hereof (the "Initial Exercise Date") to the first anniversary of
the date set forth on the signature page hereof (the "Expiration Date"), but not
later than 5:00 p.m., New York Time, on the Expiration Date.  The
shares of Common Stock (or other stock or securities) deliverable upon such
exercise are hereinafter sometimes referred to as "Warrant Shares" and the
exercise price of each share of Common Stock (as such price may be adjusted from
time to time as provided herein) is hereinafter sometimes referred to as the
"Exercise Price".

    

    (a)           EXERCISE OF
WARRANT.  This Warrant may be exercised in whole or in part at
any time or from time to time on or after the Initial Exercise Date and until
the Expiration Date, or if either such day is a day on which banking
institutions in the State of New York are authorized by law to close, then on
the next succeeding day which shall not be such a day, by presentation and
surrender hereof to the Company at its principal office, or at the office of its
stock transfer agent, if any, with the Purchase Form annexed hereto duly
executed and accompanied by payment of the Exercise Price for the number of
Warrant Shares specified in such form.  If this Warrant should be
exercised in part only, the Company shall, upon surrender of this Warrant for
cancellation, execute and deliver a new Warrant evidencing the rights of the
Holder thereof to purchase the balance of the Warrant Shares purchasable
thereunder.  Upon receipt by the Company of this Warrant at its
office, or by the stock transfer agent of the Company at its office, in proper
form for exercise, the Holder shall be deemed to be the holder of record of the
shares of Common Stock issuable upon such exercise, notwithstanding that the
stock transfer books of the Company shall then be closed or that certificates
representing such shares of Common Stock shall not then be actually delivered to
the Holder.  The Company shall pay all expenses, transfer taxes and
other charges payable in connection with the preparation, issue and delivery of
stock certificates under this Section (a), except that, in case such stock
certificates shall be registered in a name or names other than the name of the
holder of this Warrant, all stock transfer taxes which shall be payable upon the
issuance of such stock certificate or certificates shall be paid by the Holder
at the time of delivering the Purchase Form.

    

    Notwithstanding anything herein to the
contrary, if at any time following six (6) months from the date set forth on the
signature page hereof, the closing price or last reported sale (the “Closing
Price”) of the Common Stock on the stock exchange or quotation system on which
the Common Stock is then traded or quoted is equal to or greater than $18.75 per
share (appropriately adjusted in proportion to any adjustment to the Exercise
Price pursuant to Section (f) below) for a period of ten (10) consecutive
trading days, then thereafter the Company shall have the right (the “Company
Call Right”) exercisable at the Company’s sole discretion, to terminate this
Warrant following delivery of written notice (“Termination Notice”) to the
Holder, which Termination Notice shall specify the date (which date shall not be
less than thirty (30) days from the date of the Termination Notice) on which
this Warrant shall terminate (the Termination Date”); provided, however, that
the Company may not exercise the Company Call Right unless a registration
statement registering the resale of all of the Warrant Shares has been declared
effective and is effective from the date of the Termination Notice until the
Termination Date.  Notwithstanding the delivery of a Termination
Notice by the Company, the Holder shall have the right to exercise this Warrant
at any time prior to the Termination Date.

    

    (b)           RESERVATION OF
SHARES.  The Company hereby agrees that at all times following
the Initial Exercise Date there shall be reserved for issuance and/or delivery
upon exercise of this Warrant such number of shares of its Common Stock (or
other stock or securities deliverable upon exercise of this Warrant) as shall be
required for issuance and delivery upon exercise of this Warrant.  All
shares of Common Stock issuable upon the exercise of this Warrant shall be duly
authorized, validly issued, fully paid and nonassessable and free and clear of
all liens and other encumbrances.

    

    (c)           FRACTIONAL
SHARES.  No fractional shares or script representing fractional
shares shall be issued upon the exercise of this Warrant.  With
respect to any fraction of a share called for upon any exercise hereof, the
Company shall pay to the Holder an amount in cash equal to such fraction
multiplied by the current market price (as defined in Section (f)(5) below) of
the Common Stock

    

    (d)           EXCHANGE, TRANSFER, ASSIGNMENT OR
LOSS OF WARRANT.  This Warrant is exchangeable, without
expense, at the option of the Holder, upon presentation and surrender hereof to
the Company or at the office of its stock transfer agent, if any, for other
warrants of different denominations entitling the holder thereof to purchase in
the aggregate the same number of shares of Common Stock purchasable
hereunder.  This Warrant is transferable and may be assigned or
hypothecated, in whole or in part, at any time and from time to time from the
date hereof.  Upon surrender of this Warrant to the Company at its
principal office or at the office of its stock transfer agent, if any, with the
Assignment Form annexed hereto duly executed and funds sufficient to pay any
transfer tax, the Company shall, without charge, execute and deliver a new
Warrant registered in the name of the assignee named in such instrument of
assignment and this Warrant shall promptly be canceled.  This Warrant
may be divided or combined with other warrants which carry the same rights upon
presentation hereof at the principal office of the Company or at the office of
its stock transfer agent, if any, together with a written notice specifying the
names and denominations in which new Warrants are to be issued and signed by the
Holder hereof.  The term "Warrant" as used herein includes any
Warrants into which this Warrant may be divided or exchanged.  Upon
receipt by the Company of evidence satisfactory to it of the loss, theft,
destruction or mutilation of this Warrant, and in the case of loss, theft or
destruction, of reasonably satisfactory indemnification and upon surrender and
cancellation of this Warrant, if mutilated, the Company will execute and deliver
a new Warrant of like tenor and date.  Any such new Warrant executed
and delivered shall constitute an additional contractual obligation on the part
of the Company, whether or not this Warrant so lost, stolen, destroyed, or
mutilated shall be at any time enforceable by anyone.

    

    (e)           RIGHTS OF THE
HOLDER.  The Holder shall not, by virtue hereof, be entitled to
any rights of a shareholder in the Company, either at law or equity, and the
rights of the Holder are limited to those expressed in the Warrant and are not
enforceable against the Company except to the extent set forth
herein.  Furthermore, the Holder by acceptance hereof, consents to and
agrees to be bound by and to comply with all the provisions of this
Warrant.  In addition, the holder of this Warrant, by accepting the
same, agrees that the Company and the transfer agent may deem and treat the
person in whose name this Warrant is registered as the absolute, true and lawful
owner for all purposes whatsoever, and neither the Company nor the transfer
agent shall be affected by any notice to the contrary.

    

    (f)           ANTI-DILUTION
PROVISIONS.  The Exercise Price and the number and kind of
securities purchasable upon the exercise of this Warrant (the "Warrant Shares")
shall be subject to adjustment from time to time upon the happening of certain
events as hereinafter provided.  The Exercise Price in effect at any
time and the Warrant Shares shall be subject to adjustment as
follows:

    

    (1)           In
case the Company shall (i) pay a dividend or make a distribution on its shares
of Common Stock in shares of Common Stock, (ii) subdivide or reclassify its
outstanding Common Stock in shares of Common Stock into a greater number of
shares, or (iii) combine or reclassify its outstanding Common Stock into a
smaller number of shares, then the Exercise Price in effect at the time of the
record date for such dividend or distribution or of the effective date of such
subdivision, combination or reclassification shall be adjusted so that such
Exercise Price shall equal the price determined by multiplying the Exercise
Price in effect immediately prior to such record date or effective date by a
fraction, the numerator of which is the number of shares of Common Stock
outstanding on such record date or effective date, and the denominator of which
is the number of shares of Common stock outstanding immediately after such
dividend, distribution, subdivision, combination or
reclassification.  For example, if the Company declares a 2 for 1
stock dividend or stock split and the Exercise Price immediately prior to such
event was $8.00 per share, the adjusted Exercise Price immediately after such
event would be $4.00 per share.

    

    Such adjustment shall be made
successively whenever any event listed in this Subsection (1) shall
occur.

    

    (2)           In
case the Company shall hereafter issue rights or warrants to all holders of its
Common Stock entitling them to subscribe for or purchase shares of Common Stock
(or securities convertible into Common Stock) at a price (or having a conversion
price per share) less than the Exercise Price on the record date mentioned
below, then the Exercise Price shall be adjusted so that the same shall equal
the price determined by multiplying the Exercise Price in effect immediately
prior to the record date mentioned below by a fraction, the numerator of which
shall be the sum of the number of shares of Common Stock outstanding on the
record date mentioned below and the number of additional shares of Common Stock
which the aggregate offering price of the total number of shares of Common Stock
so offered (or the aggregate conversion price of the convertible securities so
offered) would purchase at such Exercise Price, and the denominator of which
shall be the sum of the number of shares of Common Stock outstanding on such
record date and the number of additional shares of Common Stock offered for
subscription or purchase (or into which the convertible securities so offered
are convertible).  Such adjustment shall be made successively whenever
such rights or warrants are issued and shall become effective immediately after
the record date for the determination of shareholders entitled to receive such
rights or warrants; and to the extent that shares of Common Stock are not
delivered (or securities convertible into Common Stock are not delivered) after
the expiration of such rights or warrants the Exercise Price shall be readjusted
to the Exercise Price which would then be in effect had the adjustments made
upon the issuance of such rights or warrants been made upon the basis of
delivery of only the number of shares of Common Stock (or securities convertible
into Common Stock) actually delivered.

    

    (3)           In
case the Company shall hereafter declare any dividend outside the ordinary
course of business ("extraordinary dividend") to all holders of its Common Stock
(excluding those referred to in Subsections (1) or (2) above), then in each such
case the Exercise Price in effect thereafter shall be determined by multiplying
the Exercise Price in effect immediately prior thereto by a fraction, the
numerator of which shall be the total number of shares of Common Stock
outstanding multiplied by the current market price per share of Common Stock (as
defined in Subsection (5) below), less the aggregate fair market value (as
determined in good faith by the Company's Board of Directors) of said
extraordinary dividend, and the denominator of which shall be the total number
of shares of Common Stock outstanding multiplied by such current market price
per share of Common Stock.

    

    Such adjustment shall be made
successively whenever any such distribution is made and shall become effective
immediately after the record date for the determination of shareholders entitled
to receive such distribution.

    

    (4)           Whenever
the Exercise Price payable upon exercise of each Warrant is adjusted pursuant to
Subsections (1), (2) or (3) above, the number of Warrant Shares purchasable upon
exercise of this Warrant shall simultaneously be adjusted by multiplying the
number of Warrant Shares issuable upon exercise of this Warrant immediately
prior to such adjustment by the Exercise Price in effect immediately prior to
such adjustment and dividing the product so obtained by the Exercise Price, as
adjusted.

    

    (5)           For
the purpose of any computation under Subsections (2) or (3) above, the current
market price per share of Common Stock at any date shall be deemed to be the
average of the daily closing prices for 30 consecutive business days before such
date.  The closing price for each day shall be the last sale price
regular way or, in case no such reported sale takes place on such day, the
average of the last reported bid and asked prices regular way, in either case on
the principal national securities exchange on which the Common Stock is admitted
to trading or listed, or if not listed or admitted to trading on such exchange,
the average of the last reported bid and asked prices as reported by Nasdaq, or
other similar organization if Nasdaq is no longer reporting such information, of
if not so available, the fair market price as determined in good faith by the
Board of Directors and reasonably acceptable to the Holder.

    

    (6)           No
adjustment in the Exercise Price shall be required unless such adjustment would
require an increase or decrease of at least one cent ($0.01) in such price;
provided, however, that any adjustments which by reason of this Subsection (6)
are not required to be made shall be carried forward and taken into account in
any subsequent adjustment required to be made hereunder.  All
calculations under this Section (f) shall be made to the nearest cent or to the
nearest one-hundredth of a share, as the case may be.  Anything in
this Section (f) to the contrary notwithstanding, the Company shall be entitled,
but shall not be required, to reduce the Exercise Price, in addition to those
changes required by this Section (f), as it, in its sole discretion, shall
determine to be advisable in order that any dividend or distribution in shares
of Common Stock, subdivision, reclassification or combination of Common Stock,
issuance of warrants to purchase Common Stock or distribution or evidences of
indebtedness or other assets (excluding cash dividends) referred to hereinabove
in this Section (f) hereafter made by the Company to the holders of its Common
Stock shall not result in any tax to such holders of its Common Stock or
securities convertible into Common Stock.

    

    (7)           In
the event that at any time, as a result of an adjustment made pursuant to
Subsection (1) above, the Holder of this Warrant thereafter shall become
entitled to receive any shares of the Company, other than Common Stock,
thereafter the number of such other shares so receivable upon exercise of this
Warrant shall be subject to adjustment from time to time in a manner and on
terms as nearly equivalent as practicable to the provisions with respect to the
Common Stock contained in Subsections (1) to (6), inclusive above. The Company
may retain a firm of independent certified public accountants selected by the
Board of Directors (who may be the regular accountants employed by the Company)
to make any computation required by Section (f), and a certificate signed by
such firm shall be conclusive evidence of the correctness of such adjustment
absent manifest error or negligence.

    

    (8)           Irrespective
of any adjustments in the Exercise Price or the number or kind of shares
purchasable upon exercise of this Warrant, Warrants theretofore or thereafter
issued may continue to express the same price and number and kind of shares as
are stated in this Warrant.

    

    (g)           OFFICER'S
CERTIFICATE.  Whenever the Exercise Price or number of Warrant
Shares shall be adjusted as required by the provisions of the foregoing Section,
the Company shall forthwith file in the custody of its Secretary or an Assistant
Secretary at its principal office and with its stock transfer agent, if any, an
officer's certificate showing the adjusted Exercise Price or number of Warrant
Shares determined as herein provided, setting forth in reasonable detail the
facts requiring such adjustment, including a statement of the number of
additional shares of Common Stock, if any, and such other facts as shall be
necessary to show the reason for and the manner of computing such
adjustment.  Each such officer's certificate shall be made available
at all reasonable times for inspection by the Holder or any holder of a Warrant
executed and delivered pursuant to Sections (a) and (d) and the Company shall,
forthwith after each such adjustment, mail a copy by certified mail of such
certificate to such Holder or any such holder.

    

    (h)           NOTICES TO WARRANT
HOLDERS.  So long as this Warrant shall be outstanding, (i) if
the Company shall pay any dividend or make any distribution upon the Common
Stock or (ii) if the Company shall offer to the holders of Common Stock for
subscription or purchase by them any share of or class of its capital stock or
any other rights or (iii) if any capital reorganization of the Company,
reclassification of the capital stock of the Company, consolidation or merger of
the Company with or into another entity, sale, lease, or transfer of all or
substantially all of the property and assets of the Company to another entity,
or voluntary or involuntary dissolution, liquidation or winding up of the
Company shall be effected, then in any such case, the Company shall cause to be
mailed by certified mail to the Holder, at least fifteen days prior the record
date specified in (x) or (y) below, as the case may be, a notice containing a
brief description of the proposed action and stating the date on which (x) a
record is to be taken for the purpose of such dividend, distribution or offer of
rights, or (y) such reclassification, reorganization, consolidation, merger,
conveyance, lease, transfer, sale dissolution, liquidation or winding up is to
take place and the date, if any is to be fixed, as of which the holders of
Common Stock or other securities shall be entitled to receive cash or other
property deliverable upon such reclassification, reorganization, consolidation,
merger, conveyance, lease, transfer, sale, dissolution, liquidation or winding
up.

    

    (i)           RECLASSIFICATION, REORGANIZATION OR
MERGER.  In case of any reclassification, capital
reorganization or other change of outstanding shares of Common Stock of the
Company, or in case of any consolidation or merger of the Company with or into
another entity (other than a merger with a subsidiary in which merger the
Company is the continuing corporation and which does not result in any
reclassification, capital reorganization or other change of outstanding shares
of Common Stock of the class issuable upon exercise of this Warrant) or in case
of any sale, lease, or conveyance to another entity of all or substantially all
of the property and assets of the Company, the Company shall, as a condition
precedent to such transaction, cause effective provisions to be made so that
such Holder shall have the right thereafter by exercising this Warrant at any
time prior to the expiration of the Warrant, to purchase the kind and amount of
shares of stock and other securities and property receivable upon such
reclassification, capital reorganization and other change, consolidation,
merger, sale, lease or conveyance by a holder of the number of shares of Common
Stock which might have been purchased upon exercise of this Warrant immediately
prior to such reclassification, change, consolidation, merger, sale, lease or
conveyance.  Any such provision shall include provision for
adjustments which shall be as nearly equivalent as may be practicable to the
adjustments provided for in this Warrant.  The Company shall not
effect any such reorganization, consolidation, merger, sale or conveyance (i)
unless prior to or simultaneously with the consummation thereof the survivor or
successor corporation (if other than the Company) resulting from such
reorganization, consolidation or merger or the corporation purchasing such
assets shall assume by written instrument executed and sent to each holder of
this Warrant, the obligation to deliver to such holder such shares of stock,
securities or assets as, in accordance with the foregoing provisions, such
holder may be entitled to receive, and containing the express assumption by such
successor corporation of the due and punctual performance and observance of
every provision herein to be performed and observed by the Company and of all
liabilities and obligations of the Company hereunder, and (ii) in which the
Company, as opposed to another party to the reorganization, consolidation,
merger, sale or conveyance, shall be required under any circumstances to make a
cash payment at any time to the holders of this Warrant.  The
foregoing provisions of this Section (i) shall similarly apply to successive
reclassifications, capital reorganizations, and changes of shares of Common
Stock and to successive consolidations, mergers, sales, leases or
conveyances.  In the event that in connection with any such capital
reorganization or reclassification, consolidation, merger, sale, lease or
conveyance, additional shares of Common Stock shall be issued in exchange,
conversion, substitution, or payment, in whole or in part, for a security of the
Company other than Common Stock, any such issue shall be treated as an issue of
Common Stock covered by the provisions of Subsection (1) of Section (f)
hereof.

    

    

    CADIZ
INC.

     

    
      	By: 	_________________________________
	 	Keith
      Brackpool 
	 	Chief Executive
      Officer

    

     

    

    Dated:  _________________,
2008

     

    
      
         

      

      
         

        
        

      

      
         

      

    

     

    PURCHASE
FORM

     

    Dated:
_________________

    

    The undersigned hereby irrevocably
elects to exercise the within Warrant to the extent of purchasing
_______________ shares of Common Stock and hereby makes payment of
_________________________ in payment of the actual exercise price
thereof.

    

    

    INSTRUCTIONS
FOR REGISTRATION OF STOCK

    

    

    Name
(Please typewrite or print in block letters):

    

    

    

    

    

    

    

    

    

    

    

    Address:

    

    

    

    

    

    

    

    

    

    

    

    

    

    Signature
______________________________________

    

    
 

    
      
         

      

      
         

        
        

      

      
         

      

    

     

    ASSIGNMENT
FORM

    

    FOR VALUE RECEIVED,
______________________ hereby sells, assigns and transfers unto

    

    

    Name
(Please typewrite or print in block letters):

    

    

    

    

    Address:

    

    

    

    

    

    

    

    the right
to purchase Common Stock represented by this Warrant to the extent of
________________ shares as to which such right is exercisable and does hereby
irrevocably constitute and appoint __________________ Attorney, to transfer the
same on the books of the Company with full power of substitution in the
premises.

    

    

    Date
_____________________

    

    

    

    

    Signature
_____________________________

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00152-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00152-of-00352.parquet"}]]