Document:

exh10-1.htm

EXHIBIT 10.1

 

Second Amendment to the

Option Agreement for Purchase of Line No. 1904 Facilities

 

    This Second Amendment to the Option Agreement for Purchase of Line No. 1904 Facilities is entered into as of the 7th day of December 2012, between Cadiz, Inc. (“Cadiz”), and El Paso Natural Gas Company, L.L.C. (“EPNG”) (collectively, the “Parties”).

 

    WHEREAS, the Parties executed the original Option Agreement for Purchase of Line No. 1904 Facilities (“Option Agreement”) on September 8, 2011; and

 

    WHEREAS, the Parties executed the First Amendment to the Option Agreement for Purchase of Line No. 1904 Facilities (“Option Agreement”) on February 8, 2012; and

 

    WHEREAS, Cadiz and EPNG desire to extend the Option Period through April 9, 2014, to revise the description of the pipeline facilities covered by the Option, to revise the Purchase Price, and to add provisions relating to the portion of the pipeline facilities that are no longer included in the original option, including provisions for a payment by EPNG to Cadiz of Ten Million Dollars if EPNG files to abandon certain natural gas pipeline facilities in California  on or before December 31, 2015 or the issuance of a new option for Cadiz to purchase that portion of the pipeline facilities for a payment of TWENTY MILLION DOLLARS if EPNG has not filed to abandon the natural gas pipeline facilities  by that date, all as described in more detail herein.

 

    In consideration of the mutual covenants and conditions hereinafter contained, Cadiz and EPNG hereby agree as follows:

 

    Section 1 of the Option Agreement shall be revised to include the following new definitions:

 

    “Additional Payment” has the meaning set forth in Section 4.B.

 

    “Additional Option” has the meaning set forth in Section 4.C.

 

    “Retained Pipeline” has the meaning set forth within the definition of the “1904 Pipeline.”

 

    “Retained Pipeline Purchase Price” has the meaning set forth in Section 4.C.

 

    The definition of the “1904 Pipeline” in Section 1 of the Option Agreement is amended to read as follows:

 

    “1904 Pipeline” shall be that portion of the All American Pipeline and facilities, inclusive of all appurtenant easements, rights of way and fixtures, whatever they may be, as well as EPNG’s interests in any fee or leased property underlying such portion of the pipeline and facilities, located within the State of California and commencing at a point near the beginning of the 1904 Pipeline at a point in the unincorporated community of Cadiz, in eastern San Bernardino County and terminating at a point in the immediate vicinity of the City of Barstow at the intersection of Radio Road and Irwin Road (shown and labeled as “Option Area 2” on the map attached hereto as Exhibit A). The portion of the All American Pipeline extending westward from that point and terminating at a point near the unincorporated community of Wheeler Ridge in Kern County, will hereinafter be referred to as the “Retained Pipeline.”  The Retained Pipeline shall not be considered a part of the 1904 Pipeline.

 

    The definition of the “Purchase Price” in Section 1 of the Option Agreement is amended to read as follows:

 

    “Purchase Price” has the meaning set forth in Section 4 of the Option Agreement, as amended in the Second Amendment to the Option Agreement.

 

    Section 2 of the Option Agreement is amended to read as follows:

 

	
2.

	
Option.  In consideration for the payment by Cadiz of the sum of One Million and Seventy Thousand Dollars ($1,070,000) (the “Option Payment”), receipt of which by EPNG  is hereby acknowledged,  EPNG hereby gives and grants to Cadiz the exclusive right and option (the “Option”) to elect to purchase the 1904 Pipeline on the terms set forth herein. For the avoidance of doubt, the purchase option will not include the Retained Pipeline, and except as provided in Section 4.C. below, Cadiz shall have no rights to purchase the Retained Pipeline.  The Option Payment is non-refundable and will be forfeited in the event that Cadiz fails to exercise the Option.

 

    Section 3 of the Option Agreement is amended to read as follows:

 

	
3.

	
Option Period.  The Option may be exercised by Cadiz by giving EPNG written notice of such exercise (the “Exercise Notice”) in the manner set forth in Section 9 below.  Cadiz may exercise the Option at any time before the expiration of the Option Period, which commenced upon the execution of the Option Agreement on September 8, 2011 and which will continue until 5 p.m., Mountain Time, on April 9, 2014 (the “Option Period”). Until the expiration of the Option Period, Cadiz shall evaluate the feasibility of using the 1904 Pipeline to convey water, recycled water, wastewater and brine (hereinafter “Water”) by, among other things, conducting Due Diligence Review as set forth in Section 5, and Inspections and Testing in Section 6.

 

    Section 4 of the Option Agreement is amended to read as follows:

 

	
4.

	
A. Purchase Agreement; Purchase Price.  In the event that Cadiz elects to exercise the Option, then within three (3) business days following EPNG’s receipt of the Exercise Notice, EPNG and Cadiz shall enter a revised version of the Purchase Agreement, with the revised descriptions of the 1904 Pipeline set forth in this Second Amendment, and the revised Purchase Price, but which shall otherwise be in the form of the Purchase Agreement attached to the Option Agreement.  The Purchase Agreement shall provide for a purchase price of ONE (1) DOLLAR, plus all Option amounts previously paid.

 

	
  

	
B. Additional Payment to Cadiz. If at any time on or prior to December 31, 2015 EPNG files an application under Section 7(b) of the Natural Gas Act and Section 157.18, or  157.5 et seq. of the regulations of the Federal Energy Regulatory Commission, or such successor provisions as may be applicable at the time of filing, to abandon from natural gas service that portion of the All American Pipeline that was previously converted to natural gas service and which is known as “Line 1903”, EPNG shall make an additional payment to Cadiz in the amount of Ten Million Dollars ($10,000,000), (the “Additional Payment”) payable on the date the abandonment application is filed. EPNG shall notify Cadiz in writing of the filing no later than at the time of the filing and shall make the payment of the $10,000,000 to Cadiz by wire transfer to the Cadiz account designated by Cadiz within 72 hours of the filing. If EPNG should file an abandonment application at any time after December 31, 2015, under Section 7(b) of the Natural Gas Act and Section 157.18, or 157.5 et seq. of the regulations of the Federal Energy Regulatory Commission, or such successor provisions as may be applicable at the time of filing, to abandon from natural gas service that portion of the All American Pipeline that was previously converted to natural gas service and which is known as “Line 1903”, EPNG shall make no additional payment in any amount to Cadiz or any other party.

 

	
  

	
C. Additional Option for Purchase of the Retained Pipeline.  Unless EPNG has made the abandonment application  described in Section 4.B of this Option Agreement, as amended, by December 31, 2015, then on January 1, 2016 Cadiz shall have an option to purchase the Retained Pipeline from EPNG (the “Additional Option”) for a purchase price of Twenty Million Dollars ($20,000,000) (the “Retained Pipeline Purchase Price”) under terms and conditions that are identical to those contained in the Purchase Agreement attached to this Option Agreement (as adjusted to reflect the different pipeline facilities that are covered by the Additional Option and the Retained Pipeline Purchase Price”).  This Additional Option period shall expire at 5 p.m., Mountain Time, on December 31, 2018. Cadiz shall not be required to make any payment for such Additional Option, it being recognized and confirmed by the Parties that the mutual commitments and obligations of the Parties contained in this Second Amendment shall constitute sufficient consideration for the Additional Option.

 

Except as otherwise provided in the First Amendment and in this Second Amendment, all of the provisions of the Option Agreement are hereby ratified and confirmed and shall continue to be in full force and effect in accordance with their respective terms.

 

This Agreement may be executed in any number of counterparts, without the necessity that all parties execute the same counterpart, which when so executed and delivered, shall constitute one and the same agreement.  Counterparts to this Agreement may be transmitted by facsimile with the same effect as if they had been manually signed and delivered. 

 

IN WITNESS WHEREOF, the Parties have duly executed this Second Amendment to the Option Agreement of as of the date first set forth above. The persons executing this Second Amendment are duely authorized and empowered by their respective company (Party) to execute this Second Amendment.  The parties may execute this Second Amendment on separate pages attached here to.

 

	
EL PASO NATURAL GAS COMPANY, L.L.C.

 

 

By: /s/ Gregory W. Ruben

       Gregory W. Ruben

       Vice President, Business Development

 

 

 

	  
	
CADIZ, INC.

 

 

By: /s/ Scott Slater                                                                        

       Scott Slater

       PresidentExhibit
10(dd)

FIRST AMENDMENT TO CREDIT AGREEMENT

THIS FIRST AMENDMENT TO CREDIT AGREEMENT
(“Amendment”) is made as of November 6, 2012 by and among Landauer, Inc., a Delaware corporation (“Landauer”)
and Global Physics Solutions, Inc., a Delaware corporation (“GPS”, Landauer and GPS being hereinafter collectively
referred to as the “Borrowers” and each individually as a “Borrower”), the Lenders that are currently parties
to the Credit Agreement (as defined below) and BMO Harris Bank N.A. (in its individual capacity, “BMO”), as administrative
agent for the Lenders (in such capacity, the “Administrative Agent”).

RECITALS

A.The Administrative Agent, the Lenders
and the Borrowers are currently parties to that certain Credit Agreement dated as of November 14, 2011 (the “Credit
Agreement”).

B.The parties to the Credit Agreement
desire to enter into this Amendment for the purpose of making certain amendments to the Credit Agreement.

AGREEMENT

In consideration of the matters set forth
in the recitals and the covenants and provisions herein set forth, and other valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the parties agree as follows:

1.                 
Definitions. Capitalized terms used but not defined herein are used as defined in the Credit Agreement.

2.                 
Amendments. Upon satisfaction of the conditions precedent hereinafter set forth, the Credit Agreement shall be amended
as follows:

2.1.           
Section 1.1 of the Credit Agreement is hereby amended by adding a new definition of “First Amendment Effective Date”
thereto in the appropriate alphabetical order which reads as follows:

    	1

    	 

    

 

“First Amendment Effective Date means November
6, 2012.”

2.2.           
The definition of “EBITDA” contained in Section 1.1 of the Credit Agreement is hereby amended and restated in
its entirety to read as follows:

“EBITDA means, as of the First Amendment Effective
Date, for any period thereafter, the sum for such period of: (a) Consolidated Net Income, plus (b) to the extent deducted in determining
such Consolidated Net Income, (i) Interest Expense, (ii) federal and state income taxes, (iii) all amounts treated as expense for
depreciation and amortization (the sum of all foregoing items constituting “Unadjusted EBITDA”), all as reflected on
Landauer’s consolidated financial statements as determined in accordance with GAAP, (iv) all extraordinary or non-recurring
losses and expenses as well as other non-cash charges, including restructuring charges, fees associated with mergers and Acquisitions,
impairment charges, non-recurring foreign exchange valuation adjustments and equity compensation expense, provided that the aggregate
of such losses, expenses and charges cannot exceed 15% of Unadjusted EBITDA for Fiscal Year 2012 or 10% of Unadjusted EBITDA for
all Fiscal Years thereafter (subject to variances acceptable to the Administrative Agent in excess of such limits), and (v) expenses
incurred in connection with the IZI Acquisition and non-recurring expenses of up to $20,000,000 incurred in connection with asset
impairments and restructuring in 4Q of Fiscal Year 2012, not subject to the caps in clause (b)(iv) hereof, minus (c) any item of
extraordinary gain as defined by GAAP, including that portion of Consolidated Net Income arising from the sale of assets outside
the ordinary course of business.”

2.3.           
Section 11.13.1 of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

“Net Worth. As of and at any time after
the First Amendment Effective Date, not permit Net Worth to be less than $60,000,000 at any time.”

    	2

    	 

    

 

2.4.           
Section 11.13.2 of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

“Fixed Charge Coverage Ratio. As of
the First Amendment Effective Date, not permit the Fixed Charge Coverage Ratio for any Computation Period to be less than the applicable
ratio set forth below for such Computation Period:

	 	
        Computation

        Period Ending
	
        Fixed Charge

        Coverage Ratio
	 
	 	December 31, 2011 through December 31, 2012	1.15 to 1.00	 
	 	March 31, 2013 and June 30, 2013	1.15 to 1.00	 
	 	September 30, 2013 and December 31, 2013	1.25 to 1.00	 
	 	March 31, 2014 and all times thereafter	1.35 to 1.00”	 

 

3.                 
Affirmation. Except as expressly amended hereby, the Credit Agreement is and shall continue in full force and effect
and each Borrower hereby fully ratifies and affirms the Credit Agreement and each Loan Document to which it is a party. Reference
in any of this Amendment, the Credit Agreement or any Loan Document to the Credit Agreement shall be a reference to the Credit
Agreement as amended hereby and as further amended, modified, restated, supplemented or extended from time to time.

4.                 
Representations and Warranties. Each Borrower hereby confirms to the Lenders and the Administrative Agent that the
representations and warranties set forth herein, as amended by this Amendment, and in the Loan Documents to which such Borrower
is a party are true and correct as of the date hereof and shall be deemed to be remade as of the date hereof, except to the extent
any such representation or warranty expressly relates to an earlier date, in which case such representations and warranties are
true and correct as of such earlier date. Each Borrower represents and warrants to the Lenders and the Administrative Agent that
(i) such Borrower has full power and authority to execute and deliver this Amendment and to perform its obligations hereunder,
(ii) upon the execution and delivery hereof, this Amendment will be valid, binding and enforceable upon such Borrower in accordance
with its terms, subject to bankruptcy, insolvency and similar laws affecting the enforceability of creditors’ rights generally
and to general principles of equity, (iii) the execution and delivery and performance of this Amendment does not and will not conflict
with (x) any provision of applicable law, (y) the charter, by-laws or other organizational documents of any Loan Party or (z) any
material agreement, indenture, material instrument or other material document, or any judgment, order or decree, which is binding
upon any Loan Party or any of their respective properties, (iv) as of the date hereof, no Unmatured Event of Default or Event of
Default exists and (v) since September 30, 2011 there has been no event or circumstance, either individually or in the aggregate,
that has had or would reasonably be expected to have a Material Adverse Effect.

    	3

    	 

    

 

5.                 
Conditions to Amendment. This Amendment shall become effective upon the satisfaction in full of all of the following
conditions precedent, each of which shall be reasonably satisfactory to the Administrative Agent and the Required Lenders:

5.1.           
The Borrowers, the Administrative Agent and the Required Lenders shall have executed and delivered this Amendment to the
Administrative Agent.

5.2.           
The Administrative Agent shall have received a consent and reaffirmation duly executed by the Guarantors in form and substance
reasonably satisfactory to the Administrative Agent.

5.3.           
A Compliance Certificate evidencing that (a) pro forma EBITDA (as such definition is amended hereby) for the most recently
ended twelve months through the date hereof is at least $50,000,000 and (b) that pro forma Total Leverage Ratio for such period
is less than 3.00 to 1.00, each calculated as of the date hereof.

5.4.           
Evidence of payment by the Borrowers of an amendment fee to each Lender executing and delivering this Amendment in an amount
equal to 0.10% of such Lender’s Commitment on the First Amendment Effective Date.

6.                 
Counterparts. This Amendment may be executed in two or more counterparts, each of which shall constitute an original,
but all of which when taken together shall constitute one instrument. Delivery of an executed counterpart
of this Amendment by facsimile or electronic pdf format shall be effective as delivery of an original counterpart.

7.                 
Headings. The headings and captions of this Amendment are for the purposes of reference only and shall not affect
the construction of, or be taken into consideration in interpreting, this Amendment.

8.                 
APPLICABLE LAW. THIS AMENDMENT SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF ILLINOIS
WITHOUT GIVING EFFECT TO ILLINOIS CHOICE OF LAW DOCTRINE.

The parties hereto have caused this Amendment
to be executed by their duly authorized officers, all as of the day and year first above written.

 

 

Signature Pages Follow

 

    4

     

    

	 	LANDAUER, INC.	 
	 	 	 	 
	 	By:	/s/ Michael K. Burke	 
	 	Name:	Michael K. Burke	 
	 	Title:	SVP & CFO	 

 

 

	 	GLOBAL PHYSICS SOLUTIONS, INC.	 
	 	 	 	 
	 	By:	/s/ Michael K. Burke	 
	 	Name:	Michael K. Burke	 
	 	Title:	SVP & CFO	 

 

 

 

    First Amendment Signature Page

     

    

 

	 	
        Acknowledged and agreed to as of the date

        first above written.
	 
	 	 	 	 
	 	
        BMO HARRIS BANK, N.A., individually

        as a Lender and as Administrative Agent
	 
	 	 	 	 
	 	By:	/s/ Scott W. Morris	 
	 	Name:	Scott W. Morris	 
	 	Title:	Director	 

 

 

    First Amendment Signature Page

     

    

 

	 	
        PNC BANK, NATIONAL ASSOCIATION,

        individually as a Lender

	 	 	 	 
	 	By:	/s/ Michael T. Crowe	 
	 	Name:	Michael T. Crowe	 
	 	Title:	VP	 

 

 

    First Amendment Signature Page

     

    

 

	 	
        U.S. BANK NATIONAL ASSOCIATION,

        individually as a Lender

	 	 	 	 
	 	By:	/s/ Stephanie Lis	 
	 	Name:	Stephanie Lis	 
	 	Title:	VP	 

 

 

    First Amendment Signature Page

     

    

 

	 	
        FIFTH THIRD BANK, individually

        as a Lender
	 
	 	 	 	 
	 	By:	/s/ Gayne Underwood	 
	 	Name:	Gayne Underwood	 
	 	Title:	VP	 

 

 

    First Amendment Signature Page

     

    

 

	 	
        BANK OF AMERICA, N.A., individually

        as a Lender
	 
	 	 	 	 
	 	By:	/s/ Brian McDonald	 
	 	Name:	Brian McDonald	 
	 	Title:	Senior VP	 

 

 

First Amendment Signature Page

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