Document:

ex10_1.htm

EXHIBIT 10.1

 

CHANGE IN CONTROL AGREEMENT

dated as of July 14, 2009

between The Brink’s Company,

a Virginia corporation (the “Company”),

and Joseph W. Dziedzic (the “Executive”).

SECTION 1.  Definitions.  As used in this Agreement:

 

(a)  “Affiliate” has the meaning ascribed thereto in Rule 12b-2 pursuant to the Securities Exchange Act of 1934, as amended (the “Act”).

 

(b)  “Board” means the Board of Directors of the Company.

 

(c)  “Cause” means (i) embezzlement, theft or misappropriation by the Executive of any property of the Company, (ii) the Executive’s willful breach of any fiduciary duty to the Company, (iii) the Executive’s willful failure or refusal to comply with laws or regulations applicable to the Company and its
business or the policies of the Company governing the conduct of its employees, (iv) the Executive’s gross incompetence in the performance of the Executive’s job duties, (v) commission by the Executive of a felony or of any crime involving moral turpitude, fraud or misrepresentation, (vi) the failure of the Executive to perform duties consistent with a commercially reasonable standard of care or (vii) any gross negligence or willful misconduct of the Executive resulting in a loss to the Company.  Notwithstanding
the foregoing, the Executive shall not be deemed to have been terminated for Cause without (1) reasonable notice to the Executive setting forth the reasons for the Company’s intention to terminate for Cause, (2) an opportunity for the Executive, together with his counsel, to be heard before the Board, and (3) delivery to the Executive of a Notice of Termination, as defined in Section 4(d) hereof, from the Board finding that in the good faith opinion of three-quarters (3/4) or more of
the Board, the Executive acted in a manner described in one or more of clauses (i) through (vii) above, and specifying the particulars thereof in detail.

 

(d)  A “Change in Control” shall be deemed to occur (1) upon (A) any consolidation or merger of the Company in which the Company is not the continuing or surviving corporation or pursuant to which the shares of all classes of the Company’s Common Stock would be converted into cash, securities or other property
other than a consolidation or merger in which holders of the total voting power in the election of directors of the Company of all classes of Common Stock outstanding (exclusive of shares held by the Company’s Affiliates) (the “Total Voting Power”) immediately prior to the consolidation or merger will have the same proportionate ownership of the total voting power in the election of directors of the surviving corporation immediately after the consolidation or merger, or (B) any sale, lease,
exchange or other transfer (in one transaction or a series of transactions) of all or substantially all the assets of the Company, (2) when any “person” (as defined in Section 13(d) of the Act), other than the Company, its Affiliates or an employee benefit plan or trust maintained by the Company or its Affiliates, shall become the “beneficial owner” (as defined in Rule 13d-3 under the Act), directly or indirectly, of more than 20% of the Total Voting Power or (3) if at any time during
a period of two consecutive years, individuals who at the beginning of such period constituted the Board shall cease for any reason to constitute at least a majority thereof, unless the election by the Company’s shareholders of each new director during such

 

  

  

  

two-year period was approved by a vote of at least two-thirds of the directors then still in office who were directors at the beginning of such two-year period.

 

(e)  “Good Reason” means any of the following events that is not cured by the Company within 30 days after written notice thereof from the Executive to the Company, which written notice must be made within 90 days of the occurrence of the event:

 

(i)    (A) without the Executive’s express written consent, the assignment to the Executive of any duties materially inconsistent with the Executive’s position (including status, offices, titles and reporting requirements),
authority, duties or responsibilities as contemplated by Section 3(a) hereof, (B) any other action by the Company or its Affiliates which results in a material diminution in such position, authorities, duties or responsibilities, or (C) any material failure by the Company to comply with any of the provisions of Section 3(b) hereof;

(ii)   without the Executive’s express written consent, the Company’s requiring a material change to Executive’s work location as set forth in Section 3(a)(i);

(iii)  any failure by the Company to comply with and satisfy Section 9(a); or

(iv)  any breach by the Company of any other material provision of this Agreement.

Notwithstanding the foregoing, “Good Reason” will cease to exist if the Executive has not terminated employment within two years following the initial occurrence of the event constituting Good Reason.

 (f)  “Incapacity” means any physical or mental illness or disability of the Executive which continues for a period of six consecutive months or more and which at any time after such six-month period the Board shall reasonably determine renders the Executive incapable of performing his or her duties during the
remainder of the Employment Period.

 

(g)  “Operative Date” means the date on which a Change in Control shall have occurred.

 

SECTION 2.  Employment Period.  The Company hereby agrees to continue the Executive in its employ, and the Executive hereby agrees to remain in the employ of the Company subject to the terms and conditions of this Agreement, for the period commencing
on the Operative Date and ending on the second anniversary of such date (the “Employment Period”); provided, however, that, effective after the first anniversary of the Operative Date, the Executive shall have the right to terminate his employment for any reason, or for no reason at all, whereupon the Employment Period shall terminate effective as of the date of such termination of employment; and, provided further, that, notwithstanding the foregoing, the Executive’s right to terminate employment
for Good Reason pursuant to Section 4 hereunder shall apply at any time during the Employment Period.

 

SECTION 3.  Terms of Employment.  (a)  Position and Duties.  (i)  During the Employment Period:  (A) the Executive’s position (including
status, offices, titles, reporting

 

  

-2-

  

requirements), authority, duties and responsibilities shall be at least commensurate in all material respects with the most significant of those held, exercised and assigned immediately prior to the Operative Date, and (B) the Executive’s services shall be performed at a location that is within 25 miles of the location at
which the Executive was based on the Operative Date and the Company shall not require the Executive to travel on Company business to a substantially greater extent than required immediately before the Operative Date, except for travel and temporary assignments which are reasonably required for the full discharge of the Executive’s responsibilities and which are consistent with the Executive’s being so based.

 

(ii)  During the Employment Period, and excluding any periods of vacation and sick leave to which the Executive is entitled, the Executive agrees to devote reasonable attention and time during normal business hours to the business and affairs of the Company and, to the extent necessary to discharge the responsibilities assigned
to the Executive hereunder, to use the Executive’s reasonable best efforts to perform faithfully and efficiently such responsibilities.   All such services as an employee or officer will be subject to the direction and control of the Chief Executive Officer of the Company or of an appropriate senior official designated by such Chief Executive Officer (or, in the event of the Chief Executive Officer’s incapacity without such a designation, the Board).

 

(b)  Compensation.  (i)  Salary and Bonus.  During the Employment Period the Executive will receive compensation at an annual rate equal to the sum of (A) a salary
(“Annual Base Salary”) not less than the Executive’s annualized salary in effect immediately prior to the Operative Date, plus (B) an annual bonus not less than the amount of the Executive’s Average Annual Bonus (as defined below).

 

For purposes of this Agreement, “Average Annual Bonus” shall mean the average amount of the annual bonus earned by, and paid to, the Executive under the Key Employees Incentive Plan (or any substitute or successor plan) for the last three full calendar years preceding the Operative Date, for purposes of Section 3(b)(i), and
the Date of Termination, for purposes of  Section 5; provided that, if the Executive has not been employed for the entirety of the last three full calendar years, so that the Average Annual Bonus cannot be determined based on the actual amount of annual bonuses earned and paid for such full calendar years, then to the extent necessary to attain an average of three years for purposes of determining the Average Annual Bonus, the Executive’s target annual bonus amount for the year in which the Operative
Date, for purposes of Section 3(b)(i), and the Date of Termination, for purposes of  Section 5, occurs shall be used for any (i) partial calendar year(s) of employment and (ii) calendar year(s) that has not yet commenced.

 

(ii)  Incentive and Savings Plans.  During the Employment Period, the Executive will be entitled to (A) continue to participate in all incentive and savings plans and programs generally applicable to full-time officers or employees of the Company
or (B) participate in incentive and savings plans and programs of a successor to the Company which have benefits that are not less favorable to the Executive.

 

(iii)  Welfare Benefit Plans.  During the Employment Period, the Executive and/or the Executive’s family or beneficiary, as the case may be, shall be eligible to (A) participate in and shall receive all benefits under welfare benefit plans and
programs generally applicable to full-time

 

  

-3-

  

officers or employees of the Company or (B) participate in welfare benefit plans and programs of a successor to the Company which have benefits that are not less favorable to the Executive.

 

(iv)  Business Expenses.  During the Employment Period the Company shall, in accordance with policies then in effect with respect to the payment of expenses, pay or reimburse the Executive for all reasonable out-of-pocket travel and other expenses (other
than ordinary commuting expenses) incurred by the Executive in performing services hereunder.  All such expenses shall be accounted for in such reasonable detail as the Company may require.

 

(v)  Vacations.  The Executive shall be entitled to periods of vacation not less than those to which the Executive was entitled immediately prior to the Operative Date.

 

SECTION 4.   Termination of Employment.

 

(a)  Death or Incapacity.  The Executive’s employment shall terminate automatically upon the Executive’s death during the Employment Period.  The Executive’s employment shall cease and terminate on the date of determination
by the Board that the Incapacity of the Executive has occurred during the Employment Period (“Incapacity Effective Date”).

 

(b)  Cause.  The Company may terminate the Executive’s employment for Cause, as defined herein, pursuant to the Board passing a resolution that such Cause exists.

 

(c)  Good Reason.  The Executive may terminate his or her employment for Good Reason, as defined herein.

 

(d)  Notice of Termination.  Any termination by the Company for Cause or Incapacity, or by the Executive for Good Reason, shall be communicated by Notice of Termination to the other party hereto given in accordance with Section 11 of this Agreement.  For
purposes of this Agreement, a “Notice of Termination” means a written notice which (i) indicates the specific termination provision in this Agreement relied upon, (ii) to the extent applicable, sets forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of the Executive’s employment under the provision so indicated, (iii) in the case of termination by the Company for Cause or for Incapacity, confirms that such termination is pursuant
to a resolution of the Board, and (iv) if the Date of Termination (as defined below) is other than the date of receipt of such notice, specifies the termination date (which date shall be not more than 30 days after the giving of such notice).  The failure by the Executive or the Company to set forth in the Notice of Termination any fact or circumstance which contributes to a showing of Good Reason, Incapacity or Cause shall not serve to waive any right of the Executive or the Company, respectively,
hereunder or preclude the Executive or the Company, respectively, from asserting such fact or circumstance in enforcing the Executive’s or the Company’s rights hereunder.

 

(e)  Date of Termination.  “Date of Termination” means (i) if the Executive’s employment is terminated by the Company for Cause or by the Executive for Good Reason, the date of receipt of the Notice of Termination or any later date
specified therein, as the case may be, (ii) if the Executive’s employment is terminated by the Company other than for Cause or Incapacity, the Date of Termination shall be the date on which the Company notifies the Executive of such 

 

  

-4-

  

termination, and (iii) if the Executive’s employment is terminated by reason of death or Incapacity, the Date of Termination shall be the date of death of the Executive or the Incapacity Effective Date, as the case may be.

 

SECTION 5.  Obligations of the Company Upon Termination.  (a)  Termination for Good Reason or for Reasons Other Than for Cause, Death or Incapacity.  If, during the
Employment Period, the Company shall terminate the Executive’s employment other than for Cause or Incapacity or the Executive shall terminate his or her employment for Good Reason:

 

(i) the Company shall pay to the Executive in a lump sum in cash within 30 days after the Date of Termination the aggregate of the following amounts:

 

(A) the sum of (1) the Executive’s currently effective Annual Base Salary through the Date of Termination to the extent not theretofore paid, (2) the product of (x) the Average Annual Bonus and (y) a fraction, the numerator of which is the number of days in the current fiscal year through the Date of Termination,
and the denominator of which is 365 and (3) any accrued vacation pay, in each case to the extent not theretofore paid (the sum of the amounts described in clauses (1), (2), and (3) shall be hereinafter referred to as the “Accrued Obligations”); and

 

(B) the amount equal to the product of (1) two and (2) the sum of (x) the Executive’s currently effective Annual Base Salary and (y) his or her Average Annual Bonus;

 

(ii)  In the event the Executive elects continued medical benefit coverage pursuant to Section 4980B(f) of the Internal Revenue Code of 1986, as amended (the “Code”), then until the earlier of (A) the eighteen-month anniversary of the Date of Termination or (ii) such time as the Executive becomes eligible to
receive medical benefits under another employer-provided plan, the Company shall reimburse the Executive for premiums associated with such coverage in an amount equal to the premiums that the Company would have paid in respect of such coverage had the Executive’s employment continued during such period; provided, however, that except as specifically permitted by Section 409A
of the Code and the Treasury Regulations promulgated thereunder (“Section 409A”), the benefits provided to the Executive under this Section 5(a)(ii) during any calendar year shall not affect the benefits to be provided to the Executive under this Section 5(a)(ii) in any other calendar year and the right to such benefits cannot be liquidated or exchanged for any other benefit, in accordance with Treas. Reg. Section 1.409A-3(i)(1)(iv) or any successor thereto.

 

(iii) the Company shall, at its sole expense as incurred, provide the Executive with reasonable outplacement services for a period of up to one year from the Date of Termination, the provider of which shall be selected by the Executive in his or her sole discretion; and

 

(iv) to the extent not theretofore paid or provided, the Company shall timely pay or provide to the Executive any other amounts or benefits required to be paid or provided or which the Executive is eligible to receive under any plan, program, policy or practice or

 

  

-5-

  

contract or agreement of the Company and its Affiliates (such other amounts and benefits shall be hereinafter referred to as the “Other Benefits”).

 

 (b)  Death or Incapacity.  If the Executive’s employment is terminated by reason of the Executive’s death or Incapacity during the Employment Period, this Agreement shall terminate without further obligations to the Executive’s
legal representatives under this Agreement, other than for (i) timely payment of Accrued Obligations in a lump sum in cash within 30 days after the Date  of Termination and (ii) provision by the Company of death benefits or disability benefits for termination due to death or Incapacity, respectively, in accordance with Section 3(b)(iii) as in effect at the Operative Date or, if more favorable to the Executive, at the Executive’s Date of Termination.

 

(c)  Cause; Other than for Good Reason.  If the Executive’s employment shall be terminated for Cause during the Employment Period, this Agreement shall terminate without further obligations to the Executive other than timely payment to the Executive
of (x) the Executive’s currently effective Annual Base Salary through the Date of Termination in a lump sum in cash within 30 days after the Date of Termination and (y) Other Benefits, in each case to the extent theretofore unpaid.  If the Executive voluntarily terminates employment during the Employment Period, excluding a termination for Good Reason, this Agreement shall terminate without further obligations to the Executive, other than for the timely payment of Accrued Obligations
in a lump sum in cash within 30 days after the Date of Termination and Other Benefits.

 

SECTION 6.  Non-exclusivity of Rights.  Nothing in this Agreement shall prevent or limit the Executive’s continuing or future participation in any plan, program, policy or practice provided by the Company or any of its Affiliates and for which
the Executive may qualify, nor, subject to Section 15(c), shall anything herein limit or otherwise affect such rights as the Executive may have under any contract or agreement with the Company or any of its Affiliates.  Amounts which are vested benefits or which the Executive is otherwise entitled to receive under any plan, policy, practice or program of or any contract or agreement with the Company or any of its Affiliates at or subsequent to the Date of Termination shall be payable in accordance
with such plan, policy, practice or program or contract or agreement except as explicitly modified by this Agreement.

 

SECTION 7.  No Mitigation.  The Company agrees that, if the Executive’s employment is terminated during the term of this Agreement for any reason, the Executive is not required to seek other employment or to attempt in any way to reduce any
amounts payable to the Executive hereunder.  Furthermore, the amount of any payment or benefit provided hereunder shall not be reduced by any compensation earned by the Executive as the result of employment by another employer, by retirement benefits, by offset against any amount claimed to be owed by the Executive to the Company, or otherwise.

 

SECTION 8.  Full Settlement.  Subject to full compliance by the Company with all of its obligations under this Agreement, this Agreement shall be deemed to constitute the settlement of such claims as the Executive might otherwise be entitled to assert
against the Company by reason of the termination of the Executive’s employment for any reason during the Employment Period.  The Company’s obligation to make the payments provided for in this Agreement and otherwise to perform its obligations hereunder shall not be affected by any set-off, counterclaim, recoupment, defense or other claim, right or action which the Company may have against the Executive or others.  

 

  

-6-

  

In no event shall the Executive be obligated to seek other employment or take any other action by way of mitigation of the amounts payable to the Executive under any of the provisions of this Agreement and such amounts shall not be reduced whether or not the Executive obtains other employment.  The Company agrees to pay as
incurred, to the full extent permitted by law, all legal fees and expenses which the Executive may reasonably incur prior to the tenth anniversary of the end of the Employment Period as a result of any contest (regardless of the outcome thereof) by the Company, the Executive or others of the validity or enforceability of, or liability under, any provision of this Agreement or any guarantee of performance thereof.  Except as specifically permitted by Section 409A, the legal fees provided to the Executive
under this Section 8 during any calendar year shall not affect the legal fees to be provided to the Executive under this Section 8 in any other calendar year and the right to such legal fees cannot be liquidated or exchanged for any other benefit, in accordance with Treas. Reg. Section 1.409A-3(i)(1)(iv) or any successor thereto.  Furthermore, reimbursement payments for legal fees shall be made to the Executive as promptly as practicable following the date that the applicable expense is incurred, but
in any event not later than the last day of the calendar year following the calendar year in which the underlying fee is incurred, in accordance with Treas. Reg. Section 1.409A-3(i)(1)(iv) or any successor thereto.

 

SECTION 9.  Successors; Binding Agreement.

 

(a)  The Company will require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business or assets of the Company, by agreement, in form and substance satisfactory to the Executive, expressly to assume and agree to perform this Agreement in the same
manner and to the same extent that the Company would be required to perform if no such succession had taken place.  Failure of the Company to obtain such assumption and agreement prior to the effectiveness of any such succession will be a breach of this Agreement and entitle the Executive to compensation from the Company in the same amount and on the same terms as the Executive would be entitled to hereunder had the Company terminated the Executive for reason other than Cause or Incapacity on the succession
date.  As used in this Agreement, the “Company” means the Company as defined in the preamble to this Agreement and any successor to its business or assets which executes and delivers the agreement provided for in this Section 9 or which otherwise becomes bound by all the terms and provisions of this Agreement by operation of law or otherwise.

 

(b)  This Agreement shall be enforceable by the Executive’s personal or legal representatives, executors, administrators, successors, heirs, distributees, devisees and legatees.

 

SECTION 10.  Non-assignability.  This Agreement is personal in nature and neither of the parties hereto shall, without the consent of the other, assign or transfer this Agreement or any rights or obligations hereunder, except as provided in Section 9
hereof.  Without limiting the foregoing, the Executive’s right to receive payments hereunder shall not be assignable or transferable, whether by pledge, creation of a security interest or otherwise, other than a transfer by his or her will or by the laws of descent or distribution, and, in the event of any attempted assignment or transfer by the Executive contrary to this Section 10, the Company shall have no liability to pay any amount so attempted to be assigned or transferred.

 

  

-7-

  

SECTION 11.  Notices.  For the purpose of this Agreement, notices and all other communications provided for herein shall be in writing and shall be deemed to have been duly given when delivered or mailed by United States registered or certified mail,
return receipt requested, postage prepaid, addressed as follows:

 

If to the Executive:       Joseph W. Dziedzic

Address on file with the Company

 

If to the Company:               The Brink’s Company

1801 Bayberry Court, Suite 400

P.O. Box 18100

Richmond, VA 23226

Attention of Corporate Secretary

 

or to such other address as either party may have furnished to the other in writing in accordance herewith, except that notices of change of address shall be effective only upon receipt.

 

SECTION 12.  Operation of Agreement.  (a) This Agreement shall be effective immediately upon its execution and continue to be effective so long as the Executive is employed by the Company or any of its Affiliates.  The provisions of this
Agreement do not take effect until the Operative Date.

 

 (b)           Notwithstanding anything in Section 12(a) to the contrary, this Agreement shall, unless extended by written agreement of the parties hereto, terminate, without further action by the parties hereto, on the third anniversary of the date of this Agreement if a Change
in Control shall not have occurred prior to such third anniversary date.

 

SECTION 13.  Governing Law.  The validity, interpretation, construction and performance of this Agreement shall be governed by the laws of the Commonwealth of Virginia without reference to principles of conflict of laws.

 

SECTION 14.  Section 409A of the Code.  The provisions of this Section 14 shall apply notwithstanding any provision in this Agreement to the contrary.

 

(a)           Intent to Comply with Section 409A of the Code.  It is intended that the provisions of this Agreement comply with Section 409A, and all provisions of this Agreement shall be construed and interpreted
in a manner consistent with the requirements for avoiding taxes or penalties under Section 409A.  For the purpose of compliance with Section 409A, the Date of Termination as defined above shall be the date that qualifies as a “separation from service” of the Executive within the meaning of Section 409A.

 

(b)           No alienation, set-offs, etc.  Neither the Executive nor any creditor or beneficiary of the Executive shall have the right to subject any deferred compensation (within the meaning of Section 409A)
payable under this Agreement or under any other plan, policy, arrangement or agreement of or with the Company or any affiliate thereof (this Agreement and such other plans, policies, arrangements and agreements, the “Company Plans”) to any anticipation, alienation, sale, transfer, assignment, pledge, encumbrance, attachment or garnishment.  Except as

 

  

-8-

  

permitted under Section 409A, any deferred compensation (within the meaning of Section 409A) payable to or for the benefit of the Executive under any Company Plan may not be reduced by, or offset against, any amount owing by the Executive to the Company (or an affiliate, as applicable).

 

(c)           Six-Month Delay of Certain Payments.  If, at the time of the Executive’s separation from service (within the meaning of Section 409A), (i) the Executive shall be a specified employee (within
the meaning of Section 409A and using the identification methodology selected by the Company from time to time) and (ii) the Company shall make a good faith determination that an amount payable under any Company Plan constitutes deferred compensation (within the meaning of Section 409A) the payment of which is required to be delayed pursuant to the six-month delay rule set forth in Section 409A in order to avoid taxes or penalties under Section 409A, then the Company (or an affiliate, as applicable) shall not
pay any such amount on the otherwise scheduled payment date but shall instead accumulate such amount and pay it, without interest, on the first day of the seventh month following such separation from service.

 

(d)           Amendment of Deferred Compensation Plans.  Notwithstanding any provision of any Company Plan to the contrary, in light of the uncertainty with respect to the proper application of Section 409A,
the Company reserves the right to make amendments to any Company Plan as the Company deems necessary or desirable to avoid the imposition of taxes or penalties under Section 409A.

 

SECTION 15.  Miscellaneous.

 

(a)  This Agreement contains the entire understanding with the Executive with respect to the subject matter hereof and supersedes any and all prior agreements or understandings, written or oral, relating to such subject matter.  No provisions of this Agreement may be modified, waived or discharged unless such modification,
waiver or discharge is agreed to in writing signed by the Executive and the Company.

 

(b)  The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement.

 

(c)   Except as provided herein, this Agreement shall not be construed to affect in any way any rights or obligations in relation to the Executive’s employment by the Company or any of its Affiliates prior to the Operative Date or subsequent to the end of the Employment Period.

 

(d)  This Agreement may be executed in one or more counterparts, each of which shall be deemed to be an original but all of which together will constitute one and the same Agreement.

 

(e)  The Company may withhold from any benefits payable under this Agreement all Federal, state, city or other taxes as shall be required pursuant to any law or governmental regulation or ruling.

 

(f)  The captions of this Agreement are not part of the provisions hereof and shall have no force or effect.

 

  

-9-

  

IN WITNESS WHEREOF, the parties have caused this Agreement to be executed and delivered as of the day and year first above set forth.

 

	  	  	 	
THE BRINK’S COMPANY,

	  	  	 	  
	  	  	 	  
	  	
by
	 	
/s/ Michael T. Dan

	  	  	 	
Michael T. Dan

	  	  	 	
Chairman of the Board,

	  	  	 	
President and Chief Executive Officer

	  	  	 	  
	  	  	 	  
	  	  	 	
/s/ Joseph W. Dziedzic

	  	  	 	
Joseph W. Dziedzic

  

-10-exh10-3.htm

    EXHIBIT 10.3

     

    
 

    AMENDMENT NO. 2 TO CREDIT
AGREEMENT AND AMENDMENT NO. 1 TO REGISTRATION RIGHTS
AGREEMENT

     

    This
AMENDMENT NO. 2 TO CREDIT
AGREEMENT AND AMENDMENT NO. 1 TO REGISTRATION RIGHTS AGREEMENT (this
“Amendment”)
dated as of June 4, 2009 (the “Effective Date”), by
and among CADIZ INC. and
CADIZ REAL ESTATE LLC,
as borrowers (the “Borrowers”), the
lenders from time to time party hereto (the “Lenders”) and LC CAPITAL MASTER FUND, LTD.,
as administrative agent (“LC Capital” or, in
such capacity, the “Agent”).

    

    RECITALS

     

    WHEREAS, the Borrowers entered
into that certain Credit Agreement, dated as of June 26, 2006, by and among
the Borrowers, the lenders party thereto and Peloton Partners LLP, as
administrative agent, as amended pursuant to that certain Amendment No. 1 to
Credit Agreement dated as of September 29, 2006, and by and among Borrowers, the
lenders party thereto and Peloton Partners LLP, as administrative agent (and as
the same has been further amended and supplemented from time to time prior to
the Effective Date, the “Credit
Agreement”).

    

    WHEREAS, pursuant to that
certain Assignment and Assumption Agreement dated as of April 16, 2008, by and
among Peloton Multi-Strategy Master Fund (“Peloton”) and LC
Capital., LC Capital replaced Peloton as a lender under the Credit Agreement
(the “Loan
Assignment”).

    

    WHEREAS, pursuant to that
certain Resignation and Appointment Agreement dated as of June, 2008 by and
among Peloton Partners LLP and LC Capital, LC Capital replaced Peloton Partners
LLP as Agent under the Loan Documents (“Successor Agent
Appointment”).

    

    WHEREAS, the Borrowers
consented to the Loan Assignment and the Successor Agent Appointment pursuant to
that certain Consent signed by the Borrowers and dated as of April 16,
2008.

    

    WHEREAS, Cadiz Inc. entered
into that certain Registration Rights Agreement dated as of June 26, 2006 by and
among Cadiz Inc. and Peloton Partners LLP as administrative agent on behalf of
each holder of registrable securities (as the same has been amended and
supplemented from time to time prior to the Effective Date, the “Registration Rights
Agreement”).

    

    WHEREAS, the Borrowers, the
Agent and the Lenders have agreed to amend the Credit Agreement and the
Registration Rights Agreement on the terms and conditions set forth
herein.

    

    WHEREAS, defined terms used
herein shall, if not otherwise defined in this Amendment, have the same meaning
as set forth in the Credit Agreement.

    

    NOW, THEREFORE, in
consideration of the foregoing and other good and valid consideration, the
receipt and adequacy of which are hereby expressly acknowledged, the parties
hereby agree as follows:

    

    ARTICLE
I

    Amendments to Credit
Agreement

    

    1.01 The
following definitions in Section 1.1 of the
Credit Agreement are hereby amended by deleting them in their entirety and
replacing them with the following:

     

    ““Accreted Loan Value”
as of the date of determination, the outstanding principal amount of the
applicable Loan, Plus all accreted interest, if any, added to such Loan as of
the calendar day immediately prior to such date of determination.”

    

    ““Maturity Date” (a)
the seventh anniversary of the Closing Date or (b) the ninth anniversary of the
Closing Date if the Two Year Extension Period applies pursuant to Section
9.6(a).”

    

    ““Tranche A Conversion
Price” with respect to the Tranche A-1 Term Loan, the Tranche A-1
Conversion Price, and with respect to the Tranche A-2 Term Loan, the Tranche A-2
Conversion Price.  The Tranche A Conversion Price shall be subject to
anti-dilution protection as described in Section 2.7(f) hereof.”

    

    ““Tranche B Conversion
Price” $35 per common share.  The Tranche B Conversion Price
shall be subject to anti-dilution protection as described in Section 2.7(f)
hereof.”

    

    1.02 The
following definitions are hereby added to Section 1.1 of the
Credit Agreement in their proper alphabetical order:

     

    ““Present Market Value”
the average of the daily closing sale price on NASDAQ of a share of the public
common stock of Cadiz over the twenty (20) consecutive NASDAQ trading days
ending five (5) Business Days prior to the Borrowers giving notice of prepayment
pursuant to Section 2.3(b) hereof.”

    

    ““Second Amendment”
that certain Amendment No. 2 to Credit Agreement and Amendment No. 1 to
Registration Rights Agreement by and among the Borrowers, the Agent and the
Lenders, and dated as of Second Amendment Effective Date.”

    

    ““Second Amendment Effective
Date” June 4, 2009.”

     

    ““Tranche A-1 Conversion
Price” $7 per common share.”

    

    ““Tranche A-1 Prepayment
Amount” the greater of (a) $4,550,000 in cash and (b) an amount of shares
of the public common stock of Cadiz equal to 110% of the quotient of 4,550,000
divided by the Tranche A-1 Conversion Price or an amount in cash equal to the
Present Market Value multiplied by 110% of the quotient of 4,550,000 divided by
the Tranche A-1 Conversion Price. ”

    

    ““Tranche A-1 Term
Loan” with respect to each Lender, such Lender’s pro rata share (based on
the principal amount of such Lender’s Tranche A Term Loan immediately prior to
the Second Amendment Effective Date) of $4,550,000 in principal of the Tranche A
Term Loan.”

    

    ““Tranche A-2 Conversion
Price” $35 per common share.”

    

    ““Tranche A-2 Term
Loan” with respect to each Lender, (a) such Lender’s pro rata share
(based on the principal amount of such Lender’s Tranche A Term Loan immediately
prior to the Second Amendment Effective Date) the principal amount of the
Tranche A Term Loan, determined as of the Second Amendment Effective Date, in
excess of the principal amount of Tranche A-1 Term Loan, plus (b) all of the
interest accrued on the Tranche A Term Loan of such Lender pursuant to Section
2.4 from the Closing Date through but excluding the Second Amendment Effective
Date, plus (c) all of the interest accruing on the Tranche A-1 Term Loan of such
Lender and such Lender’s share of the principal amount described in clause (a)
of this definition pursuant to Section 2.4 from the Second Amendment Effective
Date through but excluding the Maturity Date, the date of prepayment or
conversion thereof or such other date upon which such amounts become due and
payable (including by reason of acceleration thereof).”

    

    ““Two Year Extension
Period” as defined in Section
9.6(a).”

    

    1.03 The
following definitions in Section 1.1 of the
Credit Agreement are hereby deleted in their entirety:

     

    “Adjusted Tranche A
Conversion Price,”

    

    “Adjusted Tranche B
Conversion Price” and

    

    “Reference
Price.”

    

    1.04 Section 2.3(a) of the
Credit Agreement is hereby amended and restated to read in its entirety as
follows:

     

    “(a)           The
Borrowers may prepay (i) each of the Tranche A-2 Term Loan and the Tranche B
Term Loan in cash, solely in accordance with Section 2.3(b), in an amount equal
to the Accreted Loan Value of such Loans as of the day prior to the date of such
prepayment and (ii) the Tranche A-1 Term Loan in cash or in stock, at the option
of the Lender, solely in accordance with Sections 2.3(b) and 2.3(c), in an
amount equal to the Tranche A-1 Prepayment Amount, as of the date of such
prepayment.  In no event, may any Loan be prepaid during the Two Year
Extension Period.  The Agent shall deliver any prepayment notice it
receives from the Borrowers under this Section 2.3 to the Lenders within three
(3) Business Days.”

    

    1.05 Section 2.3(b) of the
Credit Agreement is hereby amended and restated to read in its entirety as
follows:

     

    “(b)           The
Borrowers may prepay in whole, but not in part,  (i) either or both of
the Tranche A-2 Term Loan and the Tranche B Term Loan and (ii) subject to
Section 2.3(c) below and  only upon concurrent payment of both the
Tranche A-2 Term Loan and the Tranche B Term Loan, the Tranche A-1 Term Loan, in
each case on no less than thirty (30) days’ prior written notice to the
Agent.  It shall not be a condition to the delivery by the Borrowers
of such prepayment notice that the Borrowers have sufficient available funds to
make such prepayment.  The Lenders shall, following delivery of notice
thereof from the Agent and prior to any prepayment under this Section 2.3(b),
have the right to convert any portion of the Loans into the Conversion Shares at
the applicable Conversion Price, subject to the terms and provisions of Section
2.7.”

    

    1.06 Section 2.3(c) of the
Credit Agreement is hereby amended and restated to read in its entirety as
follows:

     

    “(c)  Notwithstanding
the foregoing, any Lender shall have the right to refuse a prepayment made by
the Borrowers with respect to the portion of the Tranche A-1 Term Loan held by
such Lender.  In the event that a Lender so refuses, (i) the Agent
shall automatically release all of the Collateral securing the repayment of the
Tranche A-1 Term Loan and (ii) such Lender’s right to repayment, with respect to
the Tranche A-1 Term Loan, pursuant to this Agreement shall be subordinated to
all financial indebtedness for borrowed money incurred by the Borrowers after
the date prepayment of the Tranche A-1 Term Loan is refused.”

    

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

     

    2.4           Interest Rates and Payment
Dates.  (a)  Prior to prepayment of the Tranche A-2
Term Loan, interest on the Tranche A-1 Term Loan shall accrete to the principal
amount of the Tranche A-2 Term Loan and after prepayment of the Tranche A-2 Term
Loan, interest on the Tranche A-1 Term Loan shall be payable, in cash, to each
Lender on the first Business Day of each month following the prepayment of the
Tranche A-2 Term Loan.  Interest on each of the Tranche A-2 Term Loan
and the Tranche B Term Loan shall at all times accrete to the principal amount
of the Tranche A-2 Term Loan and the Tranche B Term Loan,
respectively.

    

    (b)  In
each case, interest shall accrete on the principal amount of any Loan (including
additional principal amount added pursuant to this Agreement), or be paid in
cash as applicable pursuant to Section 2.4(a), at the rate of 5.0% per annum
from and including the Closing Date until and including the third anniversary of
the Closing Date, and 6.0% thereafter.  If all or a portion of the
principal amount of any Loan shall not be paid when due (whether at stated
maturity, by acceleration or otherwise), all outstanding Loans (whether or not
overdue) shall bear interest at a rate per annum equal to the rate that would
otherwise be applicable thereto pursuant to the foregoing provisions of this
Section plus
2%.

    

    1.08 Section 2.8(a) of the
Credit Agreement is hereby amended and restated to read in its entirety as
follows:

     

    “(a)           Each
Lender shall have the right, at such Lender’s option, pursuant to an offer
(subject only to conditions required by applicable law, if any) by Cadiz (the
“Change Of Control
Offer”) communicated to the Agent, to require Cadiz to repay the Tranche
A-2 Term Loan and the Tranche B Term Loan, in cash, in an amount equal to the
Accreted Loan Value of such Loan.”

    

    1.09 Section 3.16(c) of
the Credit Agreement is hereby amended by deleting the reference to Section 2.8(a)(ii)
therein.

     

    1.10 Section 9.6(a)(i)(z)
of the Credit Agreement is hereby amended and restated to read in its entirety
as follows:

     

    “(z)           if
more than 50% of the principal amount of the Loans is transferred without the
Borrowers’ prior written consent, such consent not to be unreasonably withheld,
then the Maturity Date shall automatically be extended for an additional 2 years
(the “Two Year
Extension Period”); provided, however, that if the Borrowers’ consent for
such a transfer is sought and unreasonably withheld, then no such Two Year
Extension Period shall be implemented.”

    

    1.11 Table 1 to the Credit
Agreement is hereby deleted in its entirety.

     

    ARTICLE
II

    Amendments to Registration
Rights Agreement

    

    2.01 The
Registration Rights Agreement is hereby amended by replacing each instance of
“Peloton Partners LLP” with “LC Capital Master Fund, Ltd.” and replacing each
instance of “Peloton” with “LC Capital.”

     

    2.02 The
following definitions are hereby added to Section 1 of the
Registration Rights Agreement in their proper alphabetical order:

     

    ““LC Capital” means LC
Capital Master Fund, Ltd., in its capacity as Agent under the Credit
Agreement.”

    

    ““Loans” means the
principal amount of loans (including any additional principal amount added
pursuant to the Credit Agreement) outstanding to the Company under the Credit
Agreement.”

    

    ““Second Amendment”
means that certain Amendment No. 2 to Credit Agreement and Amendment No. 1 to
Registration Rights Agreement by and among the Company, the Agent and the
lenders party thereto, and dated as of Second Amendment Effective
Date.”

    

    ““Second Amendment Effective
Date” June 4, 2009.”

     

    2.03 The
definition of “New
Note” in Section 1 of the
Registration Rights Agreement is hereby deleted in its entirety.

     

    2.04 Section 8 of the
Registration Rights Agreement and the definition of “Registerable
Securities” in Section 1 of the
Registration Rights Agreement are hereby amended by replacing each instance of
“New Note” with “Loans.”

     

    2.05 Section 2(a) of the
Registration Rights Agreement is hereby amended and restated to read in its
entirety as follows:

     

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

    

    2.06 Section 2(b) of the
Registration Rights Agreement is hereby amended and restated to read in its
entirety as follows:

     

    “(b)           After
receipt of a Demand from a Holder, the Company shall use its best efforts to
prepare and file a Registration Statement for the Registrable Securities so
requested to be registered.  With respect to the Closing Demand, the
Company shall use its best efforts to prepare and file a Registration Statement
for the Registrable Securities within 60 days and use its best efforts
to cause such Registration Statement to become effective (i) 90 days, in the
event that the Registration Statement consists of an amendment to an existing
S-3 previously filed by the Company (or 120 days in the event such
amendment to an existing Registration Statement is reviewed by the SEC) or (ii)
120 days, in the event that the Registration Statement consists of a newly filed
S-3 (or 150 days in the event such newly filed Registration Statement
is reviewed by the SEC).  With respect to any other Demand, the
Company shall use its best efforts to prepare and file a Registration Statement
for the Registrable Securities within 60 days and use its reasonable
best efforts to cause such Registration Statement to become effective
within 120 days (or 150 days in the event the Registration
Statement is reviewed by the SEC).”

    

    2.07 Section 2(c)(v) of
the Registration Rights Agreement is hereby amended and restated to read in its
entirety as follows:

     

    “(v)           if
the Company shall have, on or after the Second Amendment Effective Date,
previously effected four (4) Demand Registrations pursuant to the terms of
this Agreement;”

    

    2.08 Section 8 of the
Registration Rights Agreement is hereby amended by replacing “payee” with
“lender.”

     

    2.09 Section 16 of the
Registration Rights Agreement is hereby amended by deleting the notice
information for Peloton Partners LLP and replacing it with the
following:

     

    “if to LC
Capital:

    

    LC
Capital Master Fund, Ltd.

     

    c/o Lampe
Conway & Company LLC

     

    680 Fifth
Avenue, Suite 1202

     

    New York,
New York 10019

     

    Attention:  Steven
G. Lampe

     

    Telecopy:  (212)
581-8999

     

     

    with a copy to:

     

    Milbank,
Tweed, Hadley & McCloy LLP

     

    1850 K
Street, NW, Suite 1100

     

    Washington,
DC 20006

     

    Attention:  Debra
Alligood White

     

    Telecopy:  (202)
263-7516”

     

    

    ARTICLE
III

    Representations and
Warranties

    

    Each of the Borrowers represents and
warrants to the Lenders and the Agent that the representations and warranties
set forth in the Credit Agreement and in each of the other Loan Documents are
true and complete on the Effective Date as if made on and as of the Effective
Date (or, if any such representation or warranty is expressly stated to have
been made as of a specific date, such representation or warranty shall be true
and correct as of such specific date).

     

    ARTICLE
IV

    Conditions
Precedent

    

    This
Amendment shall become effective as of the Effective Date upon satisfaction of
the following conditions:

     

    (a)
receipt by the Agent of counterparts of this Amendment executed by each of the
Borrowers and the Lenders and

     

    (b) the
representations and warranties contained in this Amendment shall be true and
correct and no Default or Event of Default shall have occurred and be
continuing.

     

    ARTICLE
V

    Effect of
Amendment

    

    Except as expressly amended hereby, the
Credit Agreement and the other Loan Documents shall remain in full force and
effect in accordance with their respective terms.  This Amendment is a
Loan Document executed pursuant to the Credit Agreement and shall be construed,
administered and applied in accordance with all of the terms and provisions of
the Credit Agreement, as amended hereby.

    

    ARTICLE
VI

    Counterparts

    

    This Amendment may be executed by one
or more of the parties to this Amendment on any number of separate counterparts,
and all of said counterparts taken together shall be deemed to constitute one
and the same instrument.  Delivery of an executed signature page of
this Amendment by facsimile transmission shall be effective as delivery of a
manually executed counterpart hereof.  A set of the copies of this
Amendment signed by all the parties shall be lodged with the Borrowers and the
Agent.

     

    ARTICLE
VII

    Severability

    

    Any provision of this Amendment that is
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof, and any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.

    

    

    ARTICLE
VIII

    Governing
Law

    

    THIS AMENDMENT AND THE RIGHTS AND
OBLIGATIONS OF THE PARTIES UNDER THIS AMENDMENT SHALL BE GOVERNED BY, AND
CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW
YORK.

    

    

    

    [remainder
of page intentionally blank]

     

     

    IN
WITNESS WHEREOF, the parties hereto have caused this Amendment No.
2  to Credit Agreement and Amendment No. 1 to Registration Rights
Agreement to be duly executed by their respective authorized representatives as
of the day and year first above written.

     

    

     

    BORROWERS

     

     

    CADIZ
INC., as a Borrower

     

    
      	By: 	/s/ Keith
      Brackpool 
	Name: 	Keith
      Brackpool 
	Title: 	Chief Executive
      Officer 

    

    

     

    CADIZ
REAL ESTATE LLC, as a Borrower

     

    
      	By: 	/s/ Richard E.
      Stoddard 
	Name: 	Richard
      E. Stoddard 
	Title: 	Chief
      Executive Officer 

    

    

     

    LENDER

     

    

    MILFAM II
L.P., as a Lender

    

    By:  Milfam
LLC, as general partner

     

    
      	By: 	/s/
      Lloyd Miller, III 
	Name: 	Lloyd Miller,
      III 
	Title: 	Managing
      Member 

    

    

     

    LENDER

     

    

    LC
CAPITAL MASTER FUND, LTD.

     

    a Cayman
Islands company,

    as a
Lender

     

    
      	By: 	/s/ Richard F.
      Conway 
	Name: 	Richard F.
      Conway 
	Title: 	Director 

    

    

     

    AGENT

     

    

    LC
CAPITAL MASTER FUND, LTD.

    a Cayman
Islands company,

    as the
Agent

     

    
      	By: 	/s/ Richard F.
      Conway 
	Name: 	Richard F.
      Conway 
	Title: 	Director

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00161-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00161-of-00352.parquet"}]]