Document:

Exhibit

 
Exhibit 10.2

AMENDMENT NO. 2 TO
FIFTH AMENDED AND RESTATED CREDIT AGREEMENT

This AMENDMENT NO. 2 TO FIFTH AMENDED AND RESTATED CREDIT AGREEMENT (this “Amendment”) dated as of May 20, 2020, is entered into by and among ONDECK ACCOUNT RECEIVABLES TRUST 2013-1 LLC, a Delaware limited liability company (“Company”), the Lenders party hereto which constitute each affected Lender and DEUTSCHE BANK AG, NEW YORK BRANCH, as Administrative Agent for the Class A Revolving Lenders (in such capacity, “Administrative Agent”).
RECITALS:
WHEREAS, Company, the Lenders party thereto from time to time, the Administrative Agent, Deutsche Bank AG, New York Branch, as Collateral Agent, Deutsche Bank Trust Company Americas, as Paying Agent and Deutsche Bank Securities Inc., as Syndication Agent, Documentation Agent and Lead Arranger, entered into a Fifth Amended and Restated Credit Agreement, dated as of March 12, 2019, as amended by Amendment No. 1 to Fifth Amended and Restated Credit Agreement, dated as of November 1, 2019 (as may be further amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”) pursuant to which the Lenders have made advances and other financial accommodations to Company. Capitalized terms not otherwise defined in this Amendment have the same meanings as specified in the Credit Agreement, as amended hereby; and
WHEREAS, Company, the Lender party hereto and the Administrative Agent, desire to amend the Credit Agreement as set forth herein subject to the terms and conditions set forth herein.
NOW, THEREFORE, in consideration of the premises and the agreements, provisions and covenants herein contained, the parties hereto agree as follows:
SECTION 1.    AMENDMENTS TO THE CREDIT AGREEMENT
The Credit Agreement is, effective as of the Second Amendment Effective Date and subject to the satisfaction of the conditions precedent set forth in Section 3.1 hereof, hereby amended as follows:

1.1    Section 1.1 of the Credit Agreement.  
The following new definitions are hereby added to Section 1.1 of the Credit Agreement in the appropriate alphabetical order:
“Advance Rate Reduction Period” means the period beginning on the Second Amendment Effective Date up to and including the Exit Date.

 
Exhibit 10.2

“COVID Receivable” means each Receivable designated by the Servicer as “COVID19-Confirmed”, “Pandemic-Impacted” or any other similar indication in its loan servicing platform, in each case in accordance with the Servicing Standard.
“COVID Related Material Modification” means any Material Modification of a COVID Receivable. 
“Effective Advance Rate” means, as of any date of determination, the percentage equivalent of a fraction (a) the numerator of which is the Total Utilization of Class A Revolving Commitments, and (b) the denominator of which is the sum of (i) the Adjusted EPOPB as of such date, plus (ii) the aggregate amount of Collections in the Lockbox Account and the Collection Account to the extent such Collections and other funds have already been applied to reduce the Eligible Portfolio Outstanding Principal Balance, plus (iii) the fair market value of all Permitted Investments held in the Collection Account on such day, minus (iv) 100% of the sum of the Accrued Interest Amount as of such day and the aggregate amount of all accrued and unpaid fees and expenses due hereunder and under the Servicing Agreement, the Backup Servicing Agreement, the Custodial Agreement and the Successor Servicing Agreement.

“Eligible Post-Waiver Receivable” means any COVID Receivable for which the related Receivables Obligor has made its first scheduled loan payment due on or after July 23, 2020 in an amount equal to or greater than 20% of the required scheduled loan payment in respect of such Receivable, as set forth in the applicable Receivable Agreement (without giving effect to any temporary modification or COVID Related Material Modification).
 
“Exit Date” means the earlier of (x) July 23, 2020 and (y) the first date upon which the Effective Advance Rate has reached 70%.

“Monthly Pay Receivable” means any Receivable for which a Payment is generally due once per month. 
"Projected Maturity Date Balance" means, with respect to any Receivable, the projected Outstanding Principal 

 
Exhibit 10.2

Balance as of March 20, 2022, assuming that the Receivables Obligor is making Payments in accordance with the applicable Receivable Agreement.
“Second Amendment” means Amendment No. 2 to Fifth Amended and Restated Credit Agreement, dated as of May 20, 2020, by and among the Company, the Lenders party thereto and the Administrative Agent.
“Second Amendment Effective Date” has the meaning set forth in Section 3.1 of the Second Amendment, which for the avoidance of doubt is May 21, 2020. 
The following definitions in Section 1.1 of the Credit Agreement are hereby amended and restated as follows:
“30 MPF Receivable” means any Pledged Receivable with a Missed Payment Factor, in the case of a Daily Pay Receivable, higher than 30, in the case of a Weekly Pay Receivable, higher than 6, or in the case of a Monthly Pay Receivable, higher than 1.5.
“Applicable Class A Advance Rate” means, prior to the Exit Date, 75%, and on and after the Exit Date, 70%.  
“Charged-Off Receivable” means, with respect to any date of determination, a Receivable which (i) consistent with the Underwriting Policies has or should have been written off the Company’s books as uncollectable or (ii) has a Missed Payment Factor of (x) with respect to Daily Pay Receivables, sixty (60) or higher, (y) with respect to Weekly Pay Receivables, twelve (12) or higher, or (z) with respect to Monthly Pay Receivables, three (3) or higher. 
“Delinquency Ratio” means, as of any Determination Date, the percentage equivalent of a fraction (a) the numerator of which is the aggregate Outstanding Principal Balance of all Pledged Receivables (that are not Charged Off Receivables) that had a Missed Payment Factor of (x) with respect to Daily Pay Receivables, fifteen (15) or higher, (y) with respect to Weekly Pay Receivables, three (3) or higher, or (z)  with respect to Monthly Pay Receivables, 0.75 or higher, in each case, as of such Determination Date, and (b) the denominator of which is the aggregate Outstanding Principal Balance of all Pledged 

 
Exhibit 10.2

Receivables (that are not Charged Off Receivables) as of such Determination Date. 
“Missed Payment Factor” means, in respect of any Receivable, an amount equal to the sum of (a) the amount equal to (i) the total past due amount of Payments in respect of such Receivable, divided by (ii) the required periodic Payment in respect of such Receivable as set forth in the related Receivables Agreement, and other than as set forth in the immediately succeeding sentences, determined without giving effect to any temporary modifications of such required periodic Payment then applicable to such Receivable, and (b) the number of Payment Dates, if any, past the Receivable maturity date on which a Payment was due but not received. Notwithstanding the foregoing or any other provision of this Agreement, with respect to Payments during the period beginning as of March 11, 2020 through and including July 23, 2020, the Missed Payment Factor in respect of any COVID Receivable and solely with respect to Payments during such period, shall be determined by giving effect to any temporary modifications (including, but not limited to, grace days, workout programs or holds) then applicable to such COVID Receivable. For the avoidance of doubt, beginning on July 24, 2020, the “required periodic Payment” as used in clause (a)(ii) herein shall mean (1) with respect to any COVID Related Material Modification, the required periodic Payment according to the modified Receivables Agreement and (2) with respect to any other Receivable, the required periodic Payment according to such Receivable’s Receivables Agreement without giving effect to any temporary modifications (including, but not limited to, grace days, workout programs or holds) if any.

“One and Half Year Equivalent” means, (i) for a Term Receivable that is a Daily Pay Receivable, 378 scheduled loan payments, (ii) for a Term Receivable that is a Weekly Pay Receivable, 78 scheduled loan payments, (iii) for a Term Receivable that is a Monthly Pay Receivable, 18 scheduled loan payments, (iv) for a LOC Receivable that is a Weekly Pay Receivable, an “applicable amortization period” set forth in the respective Receivable Agreement of 78 full weeks following the date of the last advance made thereunder, and (v) for a LOC Receivable that is a Monthly Pay Receivable, an “applicable amortization 

 
Exhibit 10.2

period” set forth in the respective Receivable Agreement of 18 months following the date of the last advance made thereunder. 
“One Year Equivalent” means, (i) for a Term Receivable that is a Daily Pay Receivable, 252 scheduled loan payments, (ii) for a Term Receivable that is a Weekly Pay Receivable, 52 scheduled loan payments, (iii) for a Term Receivable that is a Monthly Pay Receivable, 12 scheduled loan payments, (iv) for a LOC Receivable that is a Weekly Pay Receivable, an “applicable amortization period” set forth in the respective Receivable Agreement of 52 full weeks following the date of the last advance made thereunder, and (v) for a LOC Receivable that is a Monthly Pay Receivable, an “applicable amortization period” set forth in the respective Receivable Agreement of 12 months following the date of the last advance made thereunder.
Clause (b) of the definition of “Permitted Asset Sale” is hereby amended as follows:
“(b) the sale by the Servicer on behalf of Company of Charged-Off Receivables to any third party in accordance with the Servicing Standard or, in the case of Charged-Off Receivables that are 90 or more days delinquent in payment, at the request of the Administrative Agent, provided, that such sales are made without representation, warranty or recourse of any kind by Company (other than customary representations regarding title and absence of liens on the Charged-Off Receivables, and the status of Company, due authorization, enforceability, no conflict and no required consents in respect of such sale),”
“Receivable Yield” means, with respect to any Receivable, the imputed interest rate that is calculated on the basis of the expected aggregate annualized rate of return (calculated inclusive of all interest and fees (other than any Upfront Fees)) of such Receivable over the life of such Receivable.
Such calculation shall assume:

(a) 12 Payment Dates per annum, for Monthly Pay Receivables;

(b) 52 Payment Dates per annum, for Weekly Pay Receivables; and 

 
Exhibit 10.2

(c) 252 Payment Dates per annum, for Daily Pay Receivables.

“Revolving Commitment Period” means the period from the Original Closing Date to but excluding the Revolving Commitment Termination Date or such other date as requested by Company and agreed to by the Administrative Agent, in its sole discretion, provided that the Commitment Period shall be deemed suspended (and no Lender shall have any obligation to make a Loan hereunder) during the Advance Rate Reduction Period.

“Weekly Pay Receivable” means any Receivable for which a Payment is generally due once per week (and, for the avoidance of doubt, each LOC Receivable, other than Monthly Pay Receivables, shall be considered a Weekly Pay Receivable hereunder).

1.2    Section 2.11(c)(vii) of the Credit Agreement is hereby amended by adding the words “(and, with respect to clause (C) below, other than with respect to Subsequent LOC Advances, during the Advance Rate Reduction Period)” immediately after the words “so long as an Early Amortization Event is not occurring”.
1.3    Section 2.12(a) of the Credit Agreement is hereby amended and restated in its entirety as follows:
“(a)    Application of Amounts.  So long as no Event of Default has occurred and is continuing (after giving effect to the application of funds in accordance herewith on the relevant date) and an Early Amortization Period is not then occurring, on each Interest Payment Date, all amounts in the Collection Account and in the Lockbox Account and all amounts (if any) in the Reserve Account in excess of the Reserve Account Funding Requirement as of the last day of the related Interest Period shall be applied by the Paying Agent based on the Monthly Servicing Report as follows:
(i) first, to Company, on a pari passu basis, (A) amounts sufficient for Company to maintain its limited liability company existence and to pay similar expenses up to an amount not to exceed $1,000 in any Fiscal Year, and only to the extent not previously distributed to Company during such Fiscal Year pursuant to clause (xiii) below, and (B) to pay any accrued and unpaid Servicing Fees (provided, however, that the amount of any Successor Servicer Fees payable to a Successor Servicer under this clause (i) shall not exceed $225,000 in any calendar month);
(ii) second, on a pari passu basis, (A) to Company to pay any accrued and unpaid Backup Servicing Fees and any accrued and unpaid fees and expenses of the Custodian and the Controlled Account Bank (in respect of the Controlled Accounts), (B) to 

 
Exhibit 10.2

Administrative Agent to pay any costs, fees or indemnities then due and owing to Administrative Agent under the Credit Documents, (C) to Collateral Agent to pay any costs, fees or indemnities then due and owing to Collateral Agent under the Credit Documents and (D) to Paying Agent to pay any costs, fees or indemnities then due and owing to Paying Agent under the Credit Documents; provided, however, that (1) the aggregate amount of costs, fees or indemnities payable to Administrative Agent, Collateral Agent and Paying Agent pursuant to this clause (ii) shall not exceed $450,000 in any Fiscal Year, and (2) the aggregate amount of Backup Servicing Fees payable under this clause (ii) shall not exceed $200,000 in any Fiscal Year;
(iii) third, on a pro rata basis, to the Administrative Agent for the benefit of the Class A Revolving Lenders, the amount of accrued interest calculated in accordance with Section 2.5(a)(i) on the Class A Revolving Loans owing to the Class A Revolving Lenders;
(iv) fourth, to the Administrative Agent for the benefit of the Class A Revolving Lenders, (A) prior to the Interest Payment Date immediately succeeding the 2d Anniversary Date, in an amount necessary to reduce any Class A Borrowing Base Deficiency to zero, or (B) on or after the Interest Payment Date immediately succeeding the 2d Anniversary Date, in an amount equal to the greater of (1) an amount necessary to reduce any Class A Borrowing Base Deficiency to zero, and (2) all Collections received during the immediately preceding Monthly Period solely to the extent received following the 2d Anniversary Date and that were applied by the Servicer to reduce the Outstanding Principal Balance of the Pledged Receivables in accordance with the Servicing Agreement;
(v) fifth, on a pro rata basis, to the Administrative Agent for the benefit of the Class A Revolving Lenders to pay any costs and other fees on the Class A Revolving Loans and expenses payable pursuant to the Credit Documents;
(vi) sixth, to the Class B Agent for further distribution on a pro rata basis to the Class B Revolving Lenders to pay any costs and other fees, and accrued interest calculated in accordance with Section 2.5(a)(ii) on the Class B Revolving Loans and expenses payable pursuant to the Credit Documents;
(vii) seventh, on a pro rata basis, to the Class B Agent for further distribution to the Class B Lenders to repay principal on the Class B Loans (A) prior to the Interest Payment Date immediately succeeding the 2d Anniversary Date, in an amount necessary to reduce any Class B Borrowing Base Deficiency to zero, or (B) on or after the Interest Payment Date immediately succeeding the 2d Anniversary Date, in an amount equal to the greater of (1) an amount necessary to reduce any Class B Borrowing Base Deficiency to zero, and (2) all Collections received during the immediately preceding Monthly Period solely to the extent received following the 2d Anniversary Date and that were applied by the Servicer to reduce the Outstanding Principal Balance of the Pledged Receivables in accordance with the Servicing Agreement;

 
Exhibit 10.2

(viii) eighth, to pay to Administrative Agent, Collateral Agent or Paying Agent any costs, fees or indemnities not paid in accordance with clause (ii) above;
(ix) ninth, to pay (A) any accrued and unpaid Servicing Fees payable to a Successor Servicer not paid in accordance with clause (i) above, and (B) any accrued and unpaid Backup Servicing Fees not paid in accordance with clause (ii) above;
(x) tenth, to the Reserve Account an amount equal to any Reserve Account Funding Amount;
(xi) eleventh, to pay all other Obligations or any other amount then due and payable hereunder;
(xii) twelfth, during the Advance Rate Reduction Period, to the Administrative Agent for further distribution on a pro rata basis to the Class A Revolving Lenders, to repay the principal of the Class A Revolving Loans in an amount to reduce the Effective Advance Rate to 70%;
 (xiii) thirteenth, at the election of Company, on a pro rata basis, to the Administrative Agent for further distribution on a pro rata basis to the Class A Revolving Lenders or to the Class B Agent for further distribution on a pro rata basis to the Class B Revolving Lenders, as applicable, to repay the principal of the Class A Revolving Loans or the Class B Revolving Loans, respectively; and
(xiv) fourteenth, (A) prior to the 2d Anniversary Date, and provided that no Borrowing Base Deficiency would occur after giving effect to such distribution, any remainder to Company or as Company shall direct consistent with Section 6.5, or (B) after the 2d Anniversary Date, (i) 50% to Company or as Company shall direct consistent with Section 6.5, and (ii) 50%, on a pro rata basis, to the Administrative Agent to repay the principal of the Class A Revolving Loans (or, if the Class A Revolving Loans have been paid in full, to the Class B Agent to repay the principal of the Class B Revolving Loans).”
1.4    Appendix A to the Credit Agreement.  Appendix A to the Credit Agreement is hereby amended and restated in its entirety as set forth on Exhibit A hereto.
1.5    Appendix C to the Credit Agreement.  Appendix C to the Credit Agreement is amended as set forth on Exhibit B hereto.
1.6    Appendix D to the Credit Agreement.  Appendix D to the Credit Agreement is amended as set forth on Exhibit C hereto.
SECTION 2.    REPRESENTATIONS AND WARRANTIES
In order to induce the Administrative Agent and the Lender party hereto to enter into this Amendment, Company represents and warrants to the Administrative Agent and the Lender, on the Second Amendment Effective Date, that the following statements are true and correct, it being understood and agreed that the representations and warranties made on the Second Amendment 

 
Exhibit 10.2

Effective Date are deemed to be made concurrently with the consummation of the transactions contemplated hereby:
2.1    Due Authorization. The execution, delivery and performance of this Amendment have been duly authorized by all necessary action on the part of Company.
2.2    Binding Obligation. This Amendment has been duly executed and delivered by the Company and is the legally valid and binding obligation of the Company enforceable against the Company in accordance with its terms, except as may be limited by bankruptcy, insolvency, reorganization, moratorium or similar laws relating to or limiting creditors’ rights generally or by equitable principles relating to enforceability.
2.3    Incorporation of Representations and Warranties from Credit Agreement. The representations and warranties contained in Section 4 of the Credit Agreement are true and correct in all material respects on and as of the Second Amendment Effective Date (as defined below) as though made on and as of that date, except to the extent such representations and warranties specifically relate to an earlier date, in which case they were true and correct in all material respects on and as of such earlier date; provided that, in each case, such materiality qualifier shall not be applicable to any representations and warranties that already are qualified or modified by materiality in the text thereof.
2.4    Absence of Default.  No event has occurred and is continuing or will result from the consummation of this Amendment that would constitute a Default, an Event of Default or a Servicer Default.
SECTION 3.    MISCELLANEOUS
3.1    Conditions of Effectiveness. This Amendment shall become effective as of the date (such date, the “Second Amendment Effective Date”) on which:
(a)    the Administrative Agent has received counterparts of this Amendment executed by Company, the Administrative Agent and the Lenders party hereto, (b) Amendment No. 1 to Third Amended and Restated Asset Purchase Agreement, dated as of the Second Amendment Effective Date, which amends the Third Amended and Restated Asset Purchase Agreement, executed by Company, Holdings, the Lender party thereto and the Administrative Agent, and (c) Amendment No. 1 to Third Amended and Restated Servicing Agreement, dated as of the Second Amendment Effective Date, which amends the Third Amended and Restated Servicing Agreement, executed by Company, Holdings and the Administrative Agent; 
(b)    no Borrowing Base Deficiency shall exist after giving effect to the amendments to the Credit Agreement set forth herein and the execution and delivery of a Bill of Sale and Assignment attached as Exhibit D hereto; and
(c) the Company shall have paid, or caused to have been paid, in immediately available funds, any fees (including reasonable and documented fees, disbursements and other 

 
Exhibit 10.2

charges of outside counsel to the Administrative Agent) and other amounts due and payable on the Second Amendment Effective Date, subject to the satisfaction of the Administrative Agent.
3.2    Reference to and Effect on the Credit Agreement and the Other Credit Documents. 
(a) On and after the Second Amendment Effective Date, each reference in the Credit Agreement to “this Agreement”, “hereunder”, “hereof” or words of like import referring to the Credit Agreement, and each reference in the Credit Documents and the Related Agreements to “the Credit Agreement”, “thereunder”, “thereof” or words of like import referring to the Credit Agreement, shall mean and be a reference to the Credit Agreement, as amended by this Amendment.  This Amendment is hereby designated as a Credit Document for all purposes of the Credit Documents.
(b) Except as expressly set forth herein, no other amendments, changes or modifications to the Credit Agreement and each other Credit Document are intended or implied, and in all other respects the Credit Agreement and each other Credit Document are and shall continue to be in full force and effect and are hereby in all respects specifically ratified, restated and confirmed by all parties hereto as of the Second Amendment Effective Date and Company shall not be entitled to any other further amendment by virtue of the provisions of this Amendment or with respect to the subject matter of this Amendment. To the extent of conflict between the terms of this Amendment and the other Credit Documents, the terms of this Amendment shall control. The Credit Agreement and this Amendment shall be read and construed as one agreement.
(c) The execution, delivery and effectiveness of this Amendment shall not, except as expressly provided herein, operate as a waiver of any right, power or remedy of any Lender, the Administrative Agent, the Collateral Agent or the Paying Agent under the Credit Agreement, nor constitute a waiver of any provision of the Credit Agreement.
3.3    Binding Effect. This Amendment shall be binding upon and inure to the benefit of each of the parties hereto and their respective successors and assigns.
3.4    Governing Law. This Amendment and the rights and obligations of the parties hereunder shall be governed by, and shall be construed and enforced in accordance with, the laws of the State of New York.
3.5    Execution in Counterparts. This Amendment may be executed in any number of counterparts, each of which when so executed and delivered shall be deemed an original, but all such counterparts together shall constitute but one and the same instrument. Delivery of an executed counterpart of a signature page of this Amendment by fax or other electronic imaging means shall be effective as delivery of a manually executed counterpart of this Amendment.
3.6    Headings. Section headings herein are included herein for convenience of reference only and shall not constitute a part hereof for any other purpose or be given any substantive effect.

 
Exhibit 10.2

3.7    Electronic Signatures. The words “execution,” “signed,” “signature,” and words of like import in this Amendment shall be deemed to include electronic signatures or the keeping of records in electronic form, each of which shall be of the same legal effect, validity or enforceability as a manually executed signature or the use of a paper-based recordkeeping system, as the case may be, to the extent and as provided for in any applicable law, including the Federal Electronic Signatures in Global and National Commerce Act, the New York State Electronic Signatures and Records Act, or any other similar state laws based on the Uniform Electronic Transactions Act.
3.8    Extension of Temporary Waiver and Consent.   Effective as of the date hereof, the “Waiver Period” as defined in Section 6 of that certain Waiver Agreement, dated as of May 14, 2020 (“Waiver Agreement”), by and among the Company, the Administrative Agent and certain other parties thereto, solely with respect to clauses (a) and (b) in the definition of "Specified Event" as defined in Section 3 of the Waiver Agreement, is hereby extended to end at the close of business on May 21, 2020.

IN WITNESS THEREOF, the parties hereto have caused this Amendment to be executed by their respective officers thereunto duly authorized, as of the date first above written.

ONDECK ACCOUNT RECEIVABLES TRUST 2013-1 LLC, as Company

By:    /s/ Kenneth A. Brause
Name:    Kenneth A. Brause
Title:    Chief Financial Officer

DEUTSCHE BANK AG, NEW YORK BRANCH, as Administrative Agent 

By:    /s/ Kevin Tanzer
Name:    Kevin Tanzer
Title:    Managing Director

By:    /s/ Peter Sabino
Name:    Peter Sabino
Title:    Director

 
Exhibit 10.2

DEUTSCHE BANK AG, NEW YORK BRANCH, as Class A Revolving Lender

By:    /s/ Kevin Tanzer
Name:    Kevin Tanzer
Title:    Managing Director

By:    /s/ Peter Sabino
Name:    Peter Sabino
Title:    DirectorEXHIBIT 10.1

    

     

      

    EMPLOYMENT AGREEMENT

    

    

    

    

    THIS EMPLOYMENT AGREEMENT (the "Agreement") is entered into as of May 21, 2020 (the “Effective Date”), by and between Cadiz
      Inc., a Delaware corporation (the "Company") and Stanley E. Speer, an individual ("Speer").

    

    

    WHEREAS, the Company and Speer desire to enter into this Agreement in order to set forth all of the terms and conditions
      pursuant to which Speer shall serve as the Chief Financial Officer of the Company;

    

    

    NOW, THEREFORE, in consideration of the premises and mutual covenants contained herein and for other good and valuable
      consideration, the receipt of which is mutually acknowledged, the Company and Speer (collectively, the “Parties”) agree as follows:

    

    

    1. TERM OF EMPLOYMENT.  The terms and conditions of Speer's
        employment under this Agreement shall be effective as of the Effective Date and shall continue until terminated in accordance with the termination provisions of Section 6 below.

    

    

    2. DUTIES.  Speer shall be employed as the Chief Financial Officer of
        the Company.  Speer's duties and responsibilities shall relate, generally, to those ordinarily performed by the chief financial officer of a publicly traded corporation and shall include, without limitation, direct responsibility for (i) the
        Company’s accounting systems, cash management and financial reporting; (ii) supervision and direction of the Company’s financial staff; (iii) preparation and coordination with outside professional advisors of all regulatory filings, including those
        required by the rules and regulations of the U.S. Securities and Exchange Commission and by the NASDAQ; (iv) coordination of the Company’s compliance with all of the requirements of the Sarbanes-Oxley Act of 2002, as amended; and (v) the
        administrative and financial management of the Company's real estate holdings.  In addition, as a member of the Company’s senior management group Speer shall be involved on a daily basis with discussion and analysis of the development of the
        Company’s water resource and other development programs.  Speer shall also perform such other duties as would reasonably be performed by a senior executive of the Company as the Board may from time to time direct.  Speer shall report to, and take
        direction from, the Chief Executive Officer of the Company.  Speer further consents to serve in further capacities as an officer, manager and/or director of the Company or any subsidiary or affiliate of the Company without any additional salary or
        compensation.  Speer's base of operations shall be at the corporate headquarters office of the Company in Los Angeles, California, unless changed by mutual agreement.  However, Speer shall also render services at such other sites as necessary from
        time to time to properly perform his duties.

    
      
        

    

    3. NECESSARY SERVICES.

    

    

    a. Performance of Duties.  Speer agrees that he will at all times
        faithfully, industriously and to the best of his ability, experience and talents, perform to the reasonable satisfaction of the Company all of the duties that may be assigned to him hereunder and shall devote such time to the performance of these
        duties as may be necessary therefor.  Provided that Speer otherwise performs his duties in a satisfactory manner, nothing herein shall require Speer to provide such services on a full-time basis or  shall preclude Speer from spending a reasonable
        amount of time in the management of his personal investments or businesses or with any charitable or civic venture with which Speer may be involved as long as such activities do not result in any conflicts with respect to Speer’s duties to the
        Company hereunder, or violate any conflicts of interest policy which may be maintained from time to time by the Company.

    

    

    b. Exclusive Services.  Speer agrees that during the period of his
        employment hereunder, Speer shall, subject to subsection (a), above, provide services exclusively pursuant to this Agreement, and Speer will not, without the prior written consent of the Company (which consent may not be unreasonably withheld),
        directly or indirectly:

    

    

    (i)  engage in the business of, or own or control any interest in (except as a passive investor owning less than 10% of the
      equity securities of a publicly held company), or act as director, officer of employee of, or consultant to, any individual, partnership, joint venture, corporation or other business entity, directly or indirectly engaged anywhere in the United
      States, its possessions or territories, in any business competitive with the business then being carried on by the Company or any affiliate;

    

    

    (ii)  plan or organize any business activity competitive with the business or planned business of the Company or its
      affiliates, or combine, participate, or conspire with other employees of the Company or its affiliates or other persons or entities for the purpose of organizing any such competitive business activity; or

    

    

    (iii)  divert or take away, or attempt to divert or take away, any of the customers or potential customers of the Company or
      its affiliates, either for himself or for any other person, firm, partnership, corporation or other business entity.

    

    

    4. BASE COMPENSATION.  Subject to such deductions as the Company may
        from time to time be required to make pursuant to law, governmental regulation or order, the Company agrees to pay to Speer a base cash salary of $350,000 per annum.  Payments of base salary shall be made in accordance with the normal payroll
        practices of the Company.

    

    

    5. OTHER COMPENSATION. In addition to the base compensation set forth
        in Section 4 above, the Company agrees to provide additional compensation (“Other Compensation”) to Speer as follows:

    
      
        

    

    a. Discretionary Annual Bonus.  Following the conclusion of each fiscal year during the
        term of this Agreement, the Board shall make a good faith evaluation of the performance of Speer during such year, on the basis of which Speer shall receive a bonus in an amount and upon such other terms and conditions as shall be determined at the
        discretion of the Board.

    

    

    b. Equity Based Compensation.  Speer shall be eligible to receive
        awards under the Cadiz Inc. 2019 Equity Incentive Plan (the “2019 Plan”), with the form and amount of any such awards to be determined from time to time in the sole discretion of the Committee (as defined in the 2019 Plan). In addition, in the
        event that the Company, following the execution of this Agreement, adopts a new compensation plan or program for senior management, then Speer shall be invited to participate in such plan, with Speer’s participation in such plan to be negotiated
        between Speer and the Company in good faith at a level consistent with that of a member of senior management with comparable duties and responsibilities.

    

    

    c. Fringe Benefits.  In addition to the compensation set forth above,
        Speer shall be entitled to the following benefits:

    

    

    i. Four (4) weeks paid annual vacation, provided that no more than two weeks are to be taken consecutively;

    

    

    ii. Sick leave and personal leave with pay in accordance with the prevailing policies of the Company;

    

    

    iii. Medical coverage under the group medical insurance plan of the Company (or COBRA coverage, at the election of Speer);

    

    

    iv. Participation in any pension, profit-sharing, 401(k), or deferred compensation plan maintained by the Company for the general benefit of its
        employees;

    

    

    v. An automobile allowance of $700 per month;

    

    

    vi. Participation in any other benefit plan maintained by the Company for the general benefit of its employees; and

    

    

    vii. Any other benefits not specifically set forth herein as may be granted by the Company in its sole and absolute discretion.

    

    

    d. Deduction and Reimbursement.  Speer hereby agrees that the Company
        may deduct and withhold from the compensation payable to Speer hereunder any amounts of money required to be deducted or withheld by the Company under the provisions of any and all applicable local, state or federal statutes or regulations or any
        amendments thereto hereafter enacted requiring the withholding or deducting of compensation.

    
      
        

    

    6. TERMINATION.  This Agreement continue in full force and effect
        unless and until terminated as provided in this Section.

    

    

    a. Termination Events.  This Agreement shall terminate:

    

    

    i. Upon the death or Disability of Speer, "Disability" having the definition set forth in the 2019 Plan.

    

    

    ii. At the election of the Company, upon a Change in Control  (as defined in the 2019 Plan) or at such time, if any, as the Company ceases to conduct
        business for any reason whatsoever.

    

    

    iii. At the election of the Company, upon the dismissal of Speer by the Company for Cause.  For purposes of this Agreement, "Cause" shall mean any of the
        following that has a material adverse effect upon the Company or any Subsidiary:

    

    

    (1) Speer’s material failure to perform his duties which remains uncured for more than ten (10) days after a written warning (except in the case of a deliberate and bad
        faith failure to perform his duties, which shall require no warning),

    

    

    (2) Speer’s breach of his fiduciary duty to the Company,

    

    

    (3) Speer’s indictment (or equivalent) for a felony or other serious crime, or

    

    

    (4) Speer’s commission of a wrongful act that would make the continuance of his employment by the Company detrimental to the Company.

    

    

    iv. At the election of Speer, upon a material breach by the Company of any term or condition of this Agreement or upon a material change in Speer’s job
        title or a material reduction in Speer’s duties and responsibilities hereunder.

    

    

    v. At the election of either party, without Cause.

    

    

    b. Payments Following Termination.  Following termination of this
        Agreement, whether for any of the reasons specifically set forth above or for any other reason, the Company shall have no obligation to make payments to or bestow benefits upon Speer after the date of termination except as may be required by law,
        as described in this subsection (b), and under the 2019 Plan (to the extent not otherwise provided for in this Agreement).  References under this Agreement to Speer’s termination of employment or the termination of this Agreement shall be deemed to
        refer to the date upon which Speer has experienced a “separation from service” within the meaning of Code Section 409A, as defined below:

    
      
        

    

    i. In the event of termination of this Agreement by the Company pursuant to Section 6(a)(i) as the result of Speer’s death or Disability, Speer or his
        estate shall be entitled to receive base compensation as set forth in Section 4 above for a period of 180 days following Speer’s death or Disability as though Speer were continuing to provide services to the Company under this Agreement.  Any such
        payment shall be in addition to, and not in lieu of, any payments made pursuant to any Company provided death or disability benefit plans.

    

    

    ii. In the event of termination of this Agreement by the Company concurrently with or following a Change in Control pursuant to Section 6(a)(ii) above,
        Speer shall be entitled to receive (i) base compensation as set forth in Section 4 above for a period of twelve (12) months following the effective date of termination, as though Speer were continuing to provide services to the Company under this
        Agreement, and (ii) for a period of twelve (12) months following the effective date of termination, all Other Compensation as described in Section 5(c) above to the extent that such benefits can then lawfully be made available by the Company (or
        the Company’s successor in interest) to Speer; provided, however, that in order to receive continuing compensation during the time period set forth in this subparagraph Speer shall make himself available to the Company (or the Company’s successor
        in interest) during such time period as reasonably needed to assist in the transition of his duties and responsibilities.

    

    

    iii. In the event of termination of this Agreement by the Company for Cause pursuant to Section 6(a)(iii) above, or in the event of termination of this
        Agreement by Speer without Cause pursuant to Section 6(a)(v) above, the Company shall have no further liability or obligation to Speer under this Agreement other than the Company's obligation to pay base compensation as set forth in Section 4 above
        and fringe benefits as described in Section 5(c) above, all to the extent that such base compensation or fringe benefits are accrued but unpaid or unissued as of the effective date of termination.

    

    

    iv. In the event of termination of this Agreement by Speer pursuant to Section 6(a)(iv) above or by the Company without Cause pursuant to Section (a)(v)
        above, or in the event of termination of this Agreement by the Company for any reason not specifically set forth above, Speer shall be entitled to receive (i) base compensation as set forth in Section 4 above for a period of one hundred eighty
        (180) days following the effective date of termination, as though Speer were continuing to provide services to the Company under this Agreement, and (ii) for a period of one hundred eighty (180) days following the effective date of termination, all
        Other Compensation as described in Section 5(c) above to the extent that such benefits can then lawfully be made available by the Company (or the Company’s successor in interest) to Speer; provided, however, that in order to receive continuing
        compensation during the time period set forth in this subparagraph Speer shall make himself available to the Company during such time period as reasonably needed to assist in the transition of his duties and responsibilities.

    
      
        

    

    v. The termination of this Agreement shall not affect the right of Speer to exercise any stock option, to purchase securities of the Company, or to
        receive payments or equity securities under any incentive plans in which Speer participates, which rights may have vested under the terms of the applicable equity grant or incentive plan prior to the date of termination.

    

    

    c. Return of Company's Property.  If this Agreement is terminated for
        any reason, the Company may, at its option, require Speer to vacate his offices prior to the effective date of a termination and to cease all activities on the Company’s behalf.  Speer agrees that on the termination of this Agreement in any manner,
        he will immediately deliver to the Company all notebooks, brochures, documents, memoranda, reports, files, books, correspondence, customer lists, or other written or graphical records, and the like, relating to the business or work of the Company,
        which are or have been in his possession or under his control and which have not been returned to the Company.  Speer hereby expressly acknowledges that all such materials referenced above are the property of the Company.

    

    

    d. Public Identification.  If this Agreement is terminated for any
        reason, Speer shall immediately and forever thereafter cease to hold himself out to any person, firm, partnership, corporation or other entity as an employee, agent, independent contractor or representative of the Company or of any entity owned by,
        or affiliated with, the Company.

    

    

    e. Timing of Payments Under Certain Circumstances.  With respect to any amount that becomes payable to or for the benefit of Speer under this Agreement upon Speer’s Separation from Service (as defined below) for any reason, the
          provisions of this subsection (e) will apply, notwithstanding any other provision of this Agreement to the contrary.  If the Company determines in good faith that Speer is a “specified employee” within the meaning of Section 409A of the
        Internal Revenue Code, any Treasury regulations promulgated thereunder and any guidance issued by the Internal Revenue Service relating thereto (collectively, “Code Section 409A”), then to the extent required under Code Section 409A, payment of any
        amount of deferred compensation that becomes payable to or for the benefit of Speer upon Separation from Service (other than by reason of the death of Speer) and that otherwise would be payable during the six-month period following Speer’s
        Separation from Service shall be suspended until the lapse of such six-month period (or, if earlier, the date of Speer’s death).  A “Separation from Service” of Speer means Speer’s separation from service, as defined in Code Section 409A, with the
        Company and all other entities with which the Company would be considered a single employer under Internal Revenue Code Section 414(b) or (c), applying the 80% threshold used in such Internal Revenue Code Sections or any Treasury regulations
        promulgated thereunder.  Any payment suspended as provided in this subsection (e), unadjusted for interest on such suspended payment, shall be paid to Speer in a single payment on the first business day following the end of such six-month period or
        within 30 days following the death of Speer, as applicable, provided that the death of Speer during such six-month period shall not cause the acceleration of any amount that otherwise would be payable on any date during such six-month period
        following the date of Speer’s death.

    
      
        

    

    7. EXPENSES.  The Company shall reimburse Speer for all out‐of‐pocket
        expenses incurred by Speer in the performance of his duties hereunder, including, but not limited to, telephone, travel, and office expenses, all subject to such written guidelines and/or requirements for verification as the Company may, in its
        sole and absolute discretion, establish.

    

    

    8. CONFIDENTIALITY AND TRADE SECRETS.  For purposes of this Section
        8, the term "Company" shall collectively refer to the Company and any affiliate thereof.

    

    

    a. Confidential Information.  Speer shall keep in strictest
        confidence all information relating to the business, affairs, products, customers and suppliers of the Company (collectively hereinafter referred to as "Trade Secrets"), which Speer has obtained or may acquire in the course of his employment by the
        Company and which is not otherwise generally known to the public.  Speer acknowledges that such Trade Secrets are of great value, and have been developed and/or acquired at great expense to the Company, and the Company would not enter into this
        contract of employment and such information would not be made available to Speer in Speer's fiduciary capacity unless the Company were assured that all such information will be used for the exclusive benefit of the Company.  Accordingly, during the
        term of this Agreement, and at all times thereafter, Speer shall not publish, communicate, divulge, disclose or use, whether or not for his own benefit, any such information without the prior written consent of the Company.

    

    

    b. Non-Competition.  Speer agrees that during the period of his
        employment, Speer will not, directly or indirectly, engage in the business of, or own or control any interest in (except as a passive investor owning less than 10% of the equity securities of a publicly held company), or act as a director, officer
        of employee of, or consultant to, any individual, partnership, joint venture, corporation or other business entity, directly or indirectly engaged in any country in which the Company conducts business (including, without limitation, the United
        States, its possessions and territories), in any business competitive with the business then being carried on by the Company.

    

    

    c. Client Information.  Speer hereby specifically agrees that he will
        not utilize any information concerning the customers, licensees or other clients, partners or affiliates of the Company which Speer acquires during the term of this Agreement, whether or not the same originated through Speer's efforts, for any
        purpose detrimental to the business of the Company.  Without limitation of the foregoing, Speer agrees that he shall not at any time interfere with any existing contracts of the Company, and further agrees that he shall not engage in business
        discussions with any person or entity with whom he or the Company are in negotiations at the time he ceases to be an employee of the Company until after such negotiations have been concluded.

    
      
        

    

    d. Solicitation of Employees.  Speer acknowledges that important
        factors in the Company's business and operations are the loyalty and good will of its employees and its customers.  Accordingly, Speer agrees that both during the term of this Agreement and after the expiration or termination of this Agreement he
        will not enter into, and will not participate in, any plan or arrangement to cause any of the Company's employees to terminate his employment with the Company or hire any of such employees in connection with business initiated by Speer or any other
        person, firm or corporation.  Speer further agrees that information as to the capabilities of the Company's employees, their salaries and benefits, and the other terms of their employment is confidential and proprietary to the Company and
        constitutes its valuable trade secrets.

    

    

    e. Ongoing Obligation.  The provisions in this Section 8 shall be
        binding during Speer's employment and at all times thereafter, regardless of the circumstances or reasons for termination of this Agreement.  In the event the provisions in this Section 8 are more restrictive than permitted by the laws of the
        jurisdiction in which enforcement of this provision is sought, such provisions shall be interpreted to extend only over the maximum period of time, range of activities or geographic area as to which it may be enforceable.

    

    

    9. REMEDY FOR BREACH.  Speer acknowledges that the services to be
        rendered by him hereunder are of a special, unique and extraordinary character, which gives this Agreement a peculiar value to the Company, the loss of which cannot be reasonably or adequately compensated in damages in an action at law, and a
        breach by Speer of the provisions of this Agreement will cause the Company irreparable injury.  It is, therefore, expressly acknowledged that this Agreement may be enforced by injunction and other equitable remedies, without bond.  Such relief
        shall not be exclusive, but shall be in addition to any other rights or remedies Company may have for such breach, and Company shall be entitled to recover all costs and expenses, including reasonably attorneys' fees, incurred by reason of any
        breach of the covenants of this Agreement.  Similarly, the provisions of this Section 9 shall not it any way limit any rights or remedies to which Speer may be entitled in the event of a breach by the Company of any obligations of the Company
        arising under this Agreement.

    

    

    10. LITIGATION AND ATTORNEYS FEES.  In the event of any litigation
        or arbitration between the parties hereto in connection with this Agreement or to enforce any provision or right hereunder, each party to such litigation or arbitration shall pay its own costs and expenses.

    

    

    11. BOARD ACTIONS.  Any actions required to be taken or
        determinations to be made by the Board under this Agreement may, at the discretion of the Board, be taken or made by the Compensation Committee or any other duly authorized committee of the Board.

    
      
        

    

    12. ADDITIONAL ACKNOWLEDGMENTS.

    

    

    a. Speer understands that the terms of this Agreement may be required to be disclosed in, or filed as an exhibit to, the Company’s annual proxy
        statement or other reports filed publicly with the U.S. Securities and Exchange Commission.

    

    

    b. Speer acknowledges and agrees that he has fully read and understands this Agreement, has been advised to and has been given the opportunity to
        consult with his attorney concerning this Agreement, has been advised that the Company's attorney as not acted as his attorney concerning this Agreement, has had any questions regarding its effect or the meaning of its terms answered to his
        satisfaction and, intending to be legally bound hereby, has freely and voluntarily executed this Agreement.

    

    

    13. GENERAL PROVISIONS.

    

    

    a. The failure of the Company at any time to enforce performance by Speer of any provisions of this Agreement shall in no way affect the Company's
        rights thereafter to enforce the same, nor shall the waiver by the Company of any breach of any provision hereof be held to be a waiver of any other breach of the same or any other provision.

    

    

    b. This Agreement shall be binding upon and inure to the benefit of the parties hereto and the successors and assigns of the Company; provided,
        however, it is understood and agreed that the services to be rendered and the duties to be performed by Speer hereunder are of a special, unique and personal nature and that it would be difficult or impossible to replace such services; by reason
        thereof, Speer may not assign either the benefits or the obligations of this Agreement.

    

    

    c. Speer shall be considered an employee of the Company within the meaning of all federal, state, and local laws and regulations governing unemployment
        insurance, workers' compensation, industrial accident, labor and taxes.

    

    

    d. This Agreement is the entire agreement between the parties hereto with respect to the subject matter hereof and supersedes all prior oral and
        written agreements and negotiations between the parties with respect to services to be provided by Speer to the Company, including, without limitation, any consulting agreement with the Company to which Speer may be a party as of the Effective
        Date, and any compensation heretofore received or which may be receivable by Speer pursuant to any such prior agreement shall be adjusted as necessary to reflect the termination of such agreement and the effectiveness of this Agreement as of the
        Effective Date.

    

    

    e. The headings of the several paragraphs in this Agreement are inserted solely for the convenience of the parties and are not a part of and are not
        intended to govern, limit or aid in the construction of any term or provision hereof.

    
      
        

    

    f. This Agreement may not be modified except by a written instrument signed by all parties hereto.

    

    

    g. All clauses and covenants contained in this Agreement are severable, and in the event any of them shall be held to be invalid by any court, such
        clauses or covenants shall be limited as permitted under applicable law, or, if the same are not susceptible to such limitation, this Agreement shall be interpreted as if such invalid clauses or covenants were not contained herein.

    

    

    h. This Agreement is made with reference to the laws of the State of California and shall be governed by and construed in accordance therewith.  Any
        litigation concerning or to enforce the provisions of this Agreement shall be brought in the courts of the State of California.

    

    

    i. Any controversy or claim arising out of or relating to this Agreement, or breach thereof, may, with the prior consent of both the Company and Speer,
        be settled by binding arbitration in Los Angeles, California in accordance with the Commercial Arbitration Rules of the American Arbitration Association.

    

    

    14. SECTION 409A.

    

    

    a. It is the intention of Company and Speer that this Agreement shall comply with the requirements of Code Section 409A. All payments under this Agreement are intended to
        be excluded from the requirements of Code Section 409A or be payable on a fixed date or schedule under Code Section 409A. All payments made under this Agreement shall be strictly paid in accordance with the terms of this Agreement. Notwithstanding
        any other provision of this Agreement to the contrary, if Company or Speer determines that any compensation or benefit payable under this Agreement may be subject to Code Section 409A(a)(1), Company and Speer, at the request of either but with the
        written consent of the other, which consent shall not be unreasonably withheld, shall adopt such amendments to this Agreement or adopt other policies and procedures (including amendments, policies and procedures with retroactive effect), or take
        any other actions necessary or appropriate to cause the compensation and benefits payable under this Agreement not to be subject to Code Section 409A(a)(1) and to preserve the intended tax treatment of such compensation and benefits. Each payment
        of compensation under this Agreement shall be treated as a separate payment of compensation for purposes of Code Section 409A.

    

    

    b. Any reimbursements or in-kind benefits provided under this Agreement that are subject to Code Section 409A shall be made or provided in accordance with the requirements
        of Code Section 409A, including, where applicable, the requirement that (A) any reimbursement is for expenses incurred during the period of time specified in the Agreement, (B) the amount of expenses eligible for reimbursement, or in-kind benefits
        provided, during a calendar year may not affect the expenses eligible for reimbursement, or in-kind benefits to be provided, in any other calendar year, (C) the reimbursement of an eligible expense will be made no later than the last day of the
        calendar year following the year in which the expense is incurred, and (D) the right to reimbursement or in-kind benefits is not subject to liquidation or exchange for another benefit.

    
      
        

    

    c. Company shall not make any deductions for money or property that Speer owes to Company, or offset or otherwise reduce any sums that may be due or become payable to or
        for the account of Speer, from amounts that constitute deferred compensation for purposes of Code Section 409A.

    

    

    d. Speer’s right to any deferred compensation, as defined under Code Section 409A, shall not be subject to borrowing, anticipation, alienation, sale, transfer, assignment,
        pledge, encumbrance, attachment, or garnishment by creditors, to the extent necessary to avoid tax, penalties and/or interest under Code Section 409A or otherwise.

    
      
        

    

    IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written.

     

    

    
      	
               

            	
              SPEER

            
	
               

            	
               

            	
               

            
	
               

            	
              /s/ Stanley E. Speer  

              

            
	
               

            	Stanley E. Speer

            
	
               

            	
               

            	
               

            
	
               

            	
               

            	
               

            
	
               

            	THE COMPANY

            
	
               

            	
               

            	
               

            
	
               

            	
              Cadiz Inc.  

              

            
	
               

            	
               

            	
               

            
	
               

            	
              By: 

              

            	
              /s/ Keith Brackpool 

              

            
	
               

            	
               

            	
              Keith Brackpool

              

            
	
               

            	
               

            	
              Chairman of the Board 

              

            
	
               

            	
               

            	
               

            
	
               

            	
              By: 

              

            	
              /s/ Murray Hutchison 

              

            
	
               

            	
               

            	
              Murray Hutchison 

              

            
	 	 	Chair, Compensation Committee

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