Document:

ex_4-12.htm

EXHIBIT 4.12

 

SHARE AND WARRANT

PURCHASE 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”) 666,667 Shares of Cadiz Common Stock at a price of $9 per share (the “Purchase Price”). For each three (3) Shares of the Company's Common Stock, par value $0.01 per share (the “Common Stock”) purchased, the Company will issue one (1) Common Stock purchase warrant in the form of Exhibit "B" hereto (the “Warrants”).

 

The Warrants 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 $13.00 per share.  The Warrants will have a term of three (3) years.  For purposes of this Agreement, the term Warrants shall also refer to the shares of Common Stock issuable on exercise of the warrants.

 

The undersigned hereby agrees to purchase, at the Purchase Price and on the terms set forth herein, that number of Shares and Warrants as set forth on the signature page of this Agreement.

 

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

 

The undersigned understands it is contemplated that the Shares and Warrants 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 Shares and Warrants.

 

The undersigned understands that the information supplied in this 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 SHARES AND WARRANTS 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.     Purchase and Sale.  The Company hereby agrees to sell to the undersigned, and the undersigned hereby agrees to purchase from the Company, the Shares and Warrants indicated on the signature page hereto.  Payment for the Shares and Warrants purchased pursuant to this Agreement shall be delivered to the Company pursuant to the wire transfer instructions set forth in Exhibit A hereto on or prior to Monday, December 5, 2011.

 

B.     Representations and Warranties of the Undersigned.  In order to induce the Company to issue the Shares and Warrants to the undersigned, 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 Shares and Warrants, 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 Shares and Warrants.

 

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 Shares and Warrants, 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 Shares and Warrants 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 Shares and Warrants, 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 Shares or Warrants.

 

5     The offer to sell the Shares and Warrants 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 Shares or Warrants;

 

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

 

(b) the Shares and Warrants 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 Shares and Warrants shall bear an investment legend restricting the transfer of such Shares and Warrants.

 

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 Shares and Warrants and the Company; and

 

(c) no federal or state agency, or any other regulatory body, has passed upon the Shares and Warrants, 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 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 Shares and Warrants, 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 Shares and Warrants 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 Shares and Warrants 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 Shares and Warrants 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 Shares or Warrants or any similar securities or has solicited an offer to acquire the Shares or Warrants or any similar securities from any person so as to require registration of the issuance and sale of the Shares or Warrants sold to the undersigned under the circumstances contemplated by this Agreement under the provisions of Section 5 of the Act.  Subject to the accuracy of the undersigned’s representations in Sections B.1, 2 and 4 hereof, the issuance and sale of the Shares and Warrants pursuant to this Agreement is not required to be registered under 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  Shares and a warrant certificate representing the Warrant to the undersigned promptly following payment of the purchase price therefor.

 

	
(ii)  

	
The Company shall use its best efforts to file a shelf registration statement which shall include the undersigned’s Common Stock  (including the Common Stock underlying the Warrant) not later than 120 days following completion of the sale of the Shares and Warrants to the undersigned pursuant to this Agreement and to use its reasonable best efforts to cause any registration statement so filed to become effective as soon as possible and to maintain the effectiveness of such registration statement for three (3) years..

 

	
(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.

 

7     The Company hereby agrees and covenants that if the Company shall issue, at any time during the ninety (90) days immediately following the Closing (the “Protective Period”), any Additional Stock (as defined below) for an effective consideration of less than $9.00 per share of Common Stock (the “Dilutive Price”), then the Company shall issue to the undersigned such additional number of shares of Common Stock (or, if legally required, securities convertible into Common Stock in form and substance satisfactory to the undersigned) (the “Anti-Dilutive Shares”) so that the sum of the Anti-Dilutive Shares plus the shares of Common Stock purchased by the undersigned in the Offering (exclusive of shares underlying the Warrants), when divided into the Purchase Price, shall equal the Dilutive Price.

 

For purposes of this Section, “Additional Stock” shall mean any shares of Common Stock (or securities convertible into Common Stock) issued by the Company during the Protective Period other than in connection with the conversion of any convertible securities of the Company outstanding as of the date of Closing.

 

Without limitation of the foregoing, in order to ensure compliance with the applicable Listing Rules of the NASDAQ Stock Market, the maximum number of Anti-Dilutive Shares issuable by the Company pursuant to this Section shall be limited so that in no event, following the issuance of any such Anti-Dilutive Shares, shall the undersigned (together with the affiliates of the undersigned) hold equity securities of the Company in excess of a maximum of either 19.99% of the Company’s common stock or 19.99% of the Company’s voting power outstanding, in each case as calculated immediately prior to the Closing in accordance with the Listing Rules of the NASDAQ Stock Market.

 

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 Shares and Warrants.

 

E.     Binding Effect; Governing Law; Jurisdiction.  The undersigned understands that this 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, except that the Company shall reimburse the undersigned for its out-of-pocket legal expenses incurred in connection with the undersigned’s review, negotiation, entering into and closing of this Agreement and the Warrant, up to a maximum of $25,000 for all expenses reimbursed to the undersigned and its affiliates.  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 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.  Prior to the earlier of (i) the date the Company files the registration statement contemplated by Section C.6(ii) hereof and (ii) 120 days following the sale of the Shares and Warrants to the undersigned pursuant to this Agreement, 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.

 

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.

  

  

 

  

SHARE AND WARRANT PURCHASE AGREEMENT

SIGNATURE PAGE (PAGE 1 OF 2)

Executed this 30th day of November, 2011, at _____________, City of ______________, ___________________________ (State or Country).

 

The undersigned hereby purchases 500,000 shares and 166,667 warrants of Cadiz Inc. common stock for a total consideration of $4,500,000.

 

	  	
 

 

By: ________________________________

Name:

Title:

ACKNOWLEDGED AND AGREED TO:

CADIZ INC., a Delaware corporation

By:  ____________________________                                                                           Date:  November 30, 2011

Keith Brackpool

Chief Executive Officer

  

  

 

  

SHARE AND WARRANT PURCHASE 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 - Wire Transfer Instructions

 

  

  

 

  

EXHIBIT B – Form of Warrant

  

  

 

 

SHARE AND WARRANT 

SUPPLEMENTAL PURCHASE AGREEMENT

 

	
CADIZ INC.

550 South Hope Street, Suite 2850

Los Angeles, CA  90071

 

	
PERSONAL AND CONFIDENTIAL

Ladies and Gentlemen:

 

WHEREAS, Cadiz Inc. (the "Company") and the undersigned have entered into a Share and Warrant Purchase Agreement dated November 30, 2011 (the "Purchase Agreement") whereby the Company agreed to sell and the undersigned agreed to purchase 166,667 Shares of Cadiz Common Stock and certain Common Stock purchase Warrants, in each case pursuant to the terms set forth therein,

 

WHEREAS, the sale and purchase of the Shares and Warrants pursuant to the Purchase Agreement was subject to certain representations, warranties, covenants and agreements made by each of the Company and the undersigned, and

 

WHEREAS, at the request of the Company, the undersigned and the Company have agreed to supplement the Purchase Agreement with certain additional representations, warranties, covenants and agreements as set forth in this Share and Warrant Supplemental Purchase Agreement (this "Agreement").

 

NOW, THEREFORE, in consideration of the mutual agreements contained herein, and of other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties hereto agree as follows:

 

A.     Definitions. As used in this Agreement, terms defined in the Purchase Agreement and not otherwise defined herein shall have the meanings ascribed to them in (including by reference in) the Purchase Agreement.

 

B.     Supplemental Representations, Warranties and Covenants of the Undersigned. In connection with the issuance of the Shares and Warrants to the undersigned, the undersigned represents, warrants and agrees as of the date of the Purchase Agreement and as of the date hereof as follows:

 

1     The undersigned is not a "U.S. person" (as such term is defined pursuant to Regulation S under the Act) and is not acquiring the Shares and Warrants for the account or benefit of any U.S. person.

 

2     The undersigned agrees that any offer or sale of the Shares or Warrants, if made prior to the expiration of a distribution compliance period beginning on the date the undersigned acquires the Shares and Warrants and ending on the date that is six months thereafter, shall not be made to a U.S. person or for the account or benefit of a U.S. person (other than a distributor); and

 

3     The undersigned acknowledges and agrees that any sale of the Shares or Warrants, if made prior to the expiration of a distribution compliance period beginning on the date the undersigned acquires the Shares and Warrants and ending on the date that is six months thereafter, shall be made pursuant to the following conditions:

(a) The purchaser of the Shares or Warrants (other than a distributor) certifies that it is not a U.S. person and is not acquiring the securities for the account or benefit of any U.S. person or is a U.S. person who purchased securities in a transaction that did not require registration under the Act;

(b) The purchaser of the Shares or Warrants agrees to resell such securities only in accordance with the provisions of Regulation S under the Act, pursuant to registration under the Act, or pursuant to an available exemption from registration, and agrees not to engage in hedging transactions with regard to such securities unless in compliance with the Act; and

(c) The Shares and Warrants each contain a legend to the effect that transfer is prohibited except in accordance with the provisions of Regulation S under the Act, pursuant to registration under the Act, or pursuant to an available exemption from registration, and that hedging transactions involving those securities may not be conducted unless in compliance with the Act.

4     Upon exercising any Warrant, the undersigned shall provide the Company with:

(a) a written certification that it is not a U.S. person and that such Warrant is not being exercised on behalf of a U.S. person; or

(b) a written opinion of counsel to the effect that the Warrant and the Shares delivered upon exercise thereof have been registered under the Act or are exempt from registration thereunder.

C.     Supplemental Representations, Warranties and Covenants of the Company. In connection with the undersigned's purchase oft he Shares and Warrants from the Company, the Company represents, warrants and agrees as of the date of the Purchase Agreement and as of the date hereof as follows:

 

1     Neither the Company nor any of its affiliates (as defined under Rule 405 under the Act), nor any person acting on its or their behalf has (a) engaged in any "directed selling efforts" (as defined in Regulation S under the Act) with respect to the Shares or Warrants and each of them has complied with the "offering restrictions" under Regulation S under the Act, or (b) taken any action that would require registration of the Shares and Warrants under the Act. Assuming the accuracy of the representations, warranties and covenants of the undersigned as set forth in the Purchase Agreement and this Agreement, the issuance of the Shares and Warrants to the undersigned is a transaction exempt from the registration Requirements of the Securities Act of 1933, asamended, pursuant to Regulation S thereunder.

 

2           The Company and the undersigned agree that that Company shall refuse to register any transfer of Shares or Warrants not made in accordance with the provisions of Regulation S under the Act, pursuant to registration under the Act, or pursuant to an available exemption from registration.

 

D.     Form of Warrant. The Company and the undersigned hereby agree that the legend appearing at the top of the first page of "EXHIBIT B - Form of Warrant" in the Purchase Agreement shall be deleted in its entirety and replaced by the following:

 

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 EXERCISED OR TRANSFERRED 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.

 

E.     Stock Certificate. The Company and the undersigned hereby agree that any stock certificate representing the Shares shall bear the following legend:

 

THE SHARES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE TRANSFERRED UNLESS THERE IS A REGISTRATION STATEMENT IN EFFECT COVERING THE SHARES OR THERE IS AVAILABLE AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT OF 1933 AS AMENDED. HEDGING TRANSACTIONS INVOLVING THE SHARES MAY NOT BE CONDUCTED UNLESS IN COMPLIANCE WITH THE ACT.

 

F.     Purchase Agreement. The Purchase Agreement and this Agreement shall henceforth be read and construed together as one agreement, and the Purchase Agreement shall be modified accordingly. Save as expressly provided herein, the Purchase Agreement shall remain in full force and effect.

 

G.   Survival of Representations, Warranties, Covenants and Agreements. The representations, warranties, covenants and agreements contained in the Purchase Agreement and in this Agreement or any other instrument delivered pursuant to thereto or hereto shall survive the purchase of the Shares and Warrants.

 

H.     Binding Effect; Governing Law; Jurisdiction. The undersigned understands that this Agreement shall be binding upon the undersigned's heirs, devisees, legatees, successors-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 Califomia and of any federal court located in such State in connection with any action or proceeding arising out of or relating to this Agreement.

 

I.     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.

 

 

SHARE AND WARRANT SUPPLEMENTAL PURCHASE AGREEMENT

SIGNATURE PAGE

Executed this 12th day of December, 2011, at ____________, City of _________________,_____________ (State or Country).

 

 

	  	
 

 

By: ________________________________

Name:

Title:

ACKNOWLEDGED AND AGREED TO:

CADIZ INC., a Delaware corporation

By:  ____________________________                                                                           Date:  December 12, 2011

Keith Brackpool

Chief Executive Officerex_4-13.htm

EXHIBIT 4.13

 

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 EXERCISED OR TRANSFERRED 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 December 8, 2014.

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 Thirteen Dollars ($13.00) 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  5:00 p.m., New York Time, on December 8, 2014 (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.

Cashless Exercise.  The Holder shall have the right to convert this Warrant following the Initial Exercise Date and prior to the Expiration Date by way of cashless exercise, for the number of Warrant Shares specified in the Purchase Form, as calculated in accordance with the following:  Upon exercise of this cashless exercise right, the Holder shall be entitled to receive that number of Warrant Shares equal to the quotient obtained by dividing {(A-B)(X)} by {A}, where:

	
  

	
A

	
=

	
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 on the date of conversion of this Warrant.

	
  

	
B

	
=

	
the Exercise Price under this Warrant.

	
  

	
X

	
=

	
the number of Warrant Shares.

No Warrant Shares shall be issued or issuable upon cashless exercise of this Warrant at any time when B is equal to or greater than A.

 

(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,

 

	
(2)  

	
 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:       ___________________________

Timothy Shaheen

Chief Financial Officer

Dated:  December 20, 2011

  

  

 

  

PURCHASE FORM

Dated: _________________

[CHECK AND COMPLETE AS APPLICABLE]

____/                      Cash Exercise.  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.

____/                      Cashless Exercise.  The undersigned hereby irrevocably elects to convert the within Warrant into _______________ shares of Common Stock (with such number as determined pursuant to Section (a) of such Warrant), which conversion shall be effected pursuant to the terms of the within Warrant.

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 _____________________________

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