Document:

Exhibit 10.1

 

EXECUTION VERSION

 

PLACEMENT AGENT AGREEMENT

 

June 2, 2021

 

B. Riley Securities, Inc.

299 Park Avenue, 21st Floor

New York, NY 10171

 

Ladies and Gentlemen:

 

1. Introduction.
Cadiz, Inc., a Delaware corporation (the “Company”), proposes, pursuant to the terms of this Placement Agent Agreement
(this “Agreement”) to sell to certain institutional investors (the “Purchasers”) up to an aggregate
of 1,219,512 shares (the “Shares”) of common stock, $0.01 par value per share
(the “Common Stock”), of the Company. The Company hereby confirms that B. Riley Securities, Inc is acting as the exclusive
placement agent (the “Placement Agent”) in accordance with the terms and conditions hereof.

 

2. Agreement
to Act as Placement Agent; Placement of Shares. On the basis of the representations, warranties and agreements of the Company
herein contained, and subject to all the terms and conditions of this Agreement:

 

(a) The
Company hereby authorizes the Placement Agent to act as its exclusive agent to solicit offers for the purchase of all or part of the Shares
from the Company in connection with the proposed offering of the Shares (the “Offering”). Until the Closing Date (as
defined in Section 4 hereof), the Company shall not, without the prior written consent of the Placement Agent, solicit or accept
offers to purchase Shares otherwise than through the Placement Agent.

 

(b) The
Company hereby acknowledges that the Placement Agent, as an agent of the Company, shall use its reasonable best efforts to solicit offers
from potential purchasers to purchase the Shares from the Company on the terms and subject to the conditions set forth in the Prospectus
(as defined below). The Placement Agent has no authority to bind the Company with respective to any prospective offer to purchase the
Shares. The Placement Agent shall use commercially reasonable efforts to assist the Company in obtaining performance by each Purchaser
whose offer to purchase Shares was solicited by the Placement Agent and accepted by the Company, but the Placement Agent shall not, except
as otherwise provided in this Agreement, be obligated to disclose the identity of any potential purchaser or have any liability to the
Company in the event any such purchase is not consummated for any reason. Under no circumstances will the Placement Agent be obligated
to underwrite or purchase any Shares for its own accounts and, in soliciting offers to purchase the Shares, the Placement Agent shall
act solely as the Company’s agent and not as a principal. Notwithstanding the foregoing, it is understood and agreed that the Placement
Agent (or its affiliates) may, solely at their discretion and without any obligation to do so, purchase Shares as a principal.

 

(c) Subject
to the provisions of this Section 2, offers for the purchase of Shares shall be solicited by the Placement Agent as agent for the
Company at such times and in such amounts as the Placement Agent deems advisable. The Placement Agent shall communicate to the Company,
orally or in writing, each reasonable offer to purchase Shares received by it as agent of the Company. The Company shall have the sole
right to accept offers to purchase the Shares and may reject any such offer, in whole or in part. The Placement Agent shall have the right,
in its discretion reasonably exercised, without notice to the Company, to reject any offer to purchase Shares received by it, in whole
or in part, and any such rejection shall not be deemed a breach of this Agreement.

 

(d) The
Shares are being sold to the Purchasers at a price of $12.30 per share.

 

(e) As
compensation for services rendered, on the Closing Date, the Company shall pay to the Placement Agent by wire transfer of immediately
available funds to an account or accounts designated by the Placement Agent, an aggregate amount equal to 3% of the aggregate gross proceeds
received by the Company from the sale of the Shares on such Closing Date.

 

     

     

    

 

(f) No
Shares which the Company has agreed to sell pursuant to this Agreement shall be deemed to have been purchased and paid for, or sold by
the Company, until such Shares shall have been delivered to the Purchaser thereof against payment by such Purchaser. If the Company shall
default in its obligations to deliver Shares to a Purchaser whose offer it has accepted, the Company shall indemnify and hold the Placement
Agent harmless against any loss, claim, damage or expense arising from or as a result of such default by the Company in accordance with
Section 8 herein.

 

3. Representations
and Warranties of the Company. The Company represents and warrants to, and agrees with, the Placement Agent that:

 

(a) The
Company has prepared and filed in conformity with the requirements of the Securities Act of 1933, as amended (the “Securities
Act”), and published rules and regulations thereunder (the “Rules and Regulations”) adopted by the Securities
and Exchange Commission (the “Commission”) a “shelf” Registration Statement (as hereinafter defined) on
Form S-3 (File No. 333-333-228433), which was declared effective by the Commission as of November 26, 2018 (the “Effective Date”),
including a base prospectus relating to the securities registered pursuant to such Registration Statement (the “Base Prospectus”),
and such amendments and supplements thereto as may have been required to the date of this Agreement. The term “Registration Statement”
as used in this Agreement means the registration statement (including all exhibits, financial schedules and all documents and information
deemed to be a part of the Registration Statement pursuant to Rule 430A of the Rules and Regulations), as amended and/or supplemented
to the date of this Agreement, including the Base Prospectus. The Registration Statement is effective under the Securities Act and no
stop order preventing or suspending the effectiveness of the Registration Statement or suspending or preventing the use of the Prospectus
(as defined below) has been issued by the Commission and no proceedings for that purpose have been instituted or are threatened by the
Commission. The Company, if required by the Rules and Regulations of the Commission, will file the Prospectus, with the Commission pursuant
to Rule 424(b) of the Rules and Regulations. The term “Prospectus” as used in this Agreement means the prospectus,
in the form in which it is to be filed with the Commission pursuant to Rule 424(b) of the Rules and Regulations, or, if the prospectus
is not to be filed with the Commission pursuant to Rule 424(b), the prospectus in the form included as part of the Registration Statement
as of the Effective Date, except that if any revised prospectus or prospectus supplement shall be provided to the Placement Agent by the
Company for use in connection with the Offering and sale of the Shares which differs from the Prospectus (whether or not such revised
prospectus or prospectus supplement is required to be filed by the Company pursuant to Rule 424(b) of the Rules and Regulations), the
term “Prospectus” shall refer to such revised prospectus or prospectus supplement, as the case may be, from and after
the time it is first provided to the Placement Agent for such use. Any reference herein to the Registration Statement or the Prospectus
shall be deemed to refer to and include the documents incorporated by reference therein pursuant to Item 12 of Form S-3 which were filed
under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), on or before the last to occur of the Effective
Date, or the date of the Prospectus, and any reference herein to the terms “amend,” “amendment,” or “supplement”
with respect to the Registration Statement or the Prospectus shall be deemed to refer to and include (i) the filing of any document under
the Exchange Act after the Effective Date or the date of the Prospectus, as the case may be, which is incorporated by reference and (ii)
any such document so filed. If the Company has filed an abbreviated registration statement to register additional securities pursuant
to Rule 462(b) under the Rules and Regulations (the “462(b) Registration Statement”), then any reference herein to
the Registration Statement shall also be deemed to include such 462(b) Registration Statement.

 

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(b) As
of the Applicable Time (as defined below) and as of the Closing Date, neither (i) any General Use Free Writing Prospectus (as defined
below) issued at or prior to the Applicable Time, and the Pricing Prospectus (as defined below), all considered together (collectively,
the “General Disclosure Package”), (ii) any individual Limited Use Free Writing Prospectus (as defined below) issued
at or prior to the Applicable Time, nor (iii) the bona fide electronic road show, if any, (as defined in Rule 433(h)(5) of the Rules and
Regulations), that has been made available without restriction to any person, when considered together with the General Disclosure Package,
included or will include, any untrue statement of a material fact or omitted or as of the Closing Date will omit, to state a material
fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading;
provided, however, that the Company makes no representations or warranties as to information contained in or omitted from any Issuer
Free Writing Prospectus, in reliance upon, and in conformity with, written information furnished to the Company by or on behalf of the
Placement Agent specifically for inclusion therein, which information the parties hereto agree is limited to the “Placement
Agent’s Information” which is defined as the information set forth in Section 16. As used in this paragraph
(b) and elsewhere in this Agreement:

 

“Applicable Time” means
9:30 P.M., New York time, on the date of this Agreement.

 

“General Use Free Writing Prospectus”
means any Issuer Free Writing Prospectus.

 

“Issuer Free Writing Prospectus”
means any “issuer free writing prospectus,” as defined in Rule 433 of the Rules and Regulations relating to the Shares
in the form filed or required to be filed with the Commission or, if not required to be filed, in the form retained in the Company’s
records pursuant to Rule 433(g) of the Rules and Regulations.

 

“Limited Use Free Writing Prospectuses”
means any Issuer Free Writing Prospectus that is not a General Use Free Writing Prospectus.

 

“Pricing Prospectus”
means the Base Prospectus as amended and supplemented immediately prior to the Applicable Time, including any document incorporated by
reference therein and any prospectus supplement deemed to be a part thereof.

 

(c) No
order preventing or suspending the use of any Issuer Free Writing Prospectus or the Prospectus relating to the Offering has been issued
by the Commission, and no proceeding for that purpose or pursuant to Section 8A of the Securities Act has been instituted or threatened
by the Commission.

 

(d) At
the time the Registration Statement became effective, at the date of this Agreement and at the Closing Date, the Registration Statement
conformed and will conform in all material respects to the requirements of the Securities Act and the Rules and Regulations and did not
and will not contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary
to make the statements therein not misleading; the Prospectus, at the time of its issue date and at the Closing Date, conformed and will
conform in all material respects to the requirements of the Securities Act and the Rules and Regulations and did not and will not contain
an untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in light of
the circumstances under which they were made, not misleading; provided, however, that the foregoing representations and warranties
in this paragraph (d) shall not apply to information contained in or omitted from the Registration Statement or the Prospectus
in reliance upon, and in conformity with, written information furnished to the Company by or on behalf of the Placement Agent specifically
for inclusion therein, which information the parties hereto agree is limited to the Placement Agent’s Information.

 

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(e) Each
Issuer Free Writing Prospectus, if any, as of its issue date and at all subsequent times through the completion of the public offer and
sale of the Shares or until any earlier date that the Company notified or notifies the Placement Agent as described in Section 5(c),
did not, does not and will not include any information that conflicted, conflicts or will conflict with the information contained in the
Registration Statement, Pricing Prospectus or the Prospectus, including any document incorporated by reference therein and any prospectus
supplement deemed to be a part thereof that has not been superseded or modified, or includes an untrue statement of a material fact or
omitted or would omit to state a material fact required to be stated therein or necessary in order to make the statements therein, in
the light of the circumstances under which they were made, not misleading. The foregoing sentence does not apply to statements in or omissions
from any Issuer Free Writing Prospectus in reliance upon, and in conformity with, written information furnished to the Company by or on
behalf of the Placement Agent specifically for inclusion therein, which information the parties hereto agree is limited to the Placement
Agent’s Information.

 

(f) The
documents incorporated by reference in the Prospectus, when they became effective or were filed with the Commission, as the case may be,
conformed in all material respects to the requirements of the Securities Act or the Exchange Act, as applicable, the Rules and Regulations
and the rules and regulations of the Commission under the Exchange Act and none of such documents contained any untrue statement of a
material fact or omitted to state any material fact required to be stated therein or necessary to make the statements therein, in light
of the circumstances under which they were made, not misleading; and any further documents so filed and incorporated by reference in the
Prospectus, when such documents become effective or are filed with the Commission, as the case may be, will conform in all material respects
to the requirements of the Securities Act or the Exchange Act, as applicable, the Rules and Regulations and the rules and regulations
of the Commission under the Exchange Act and will not contain any untrue statement of a material fact or omit to state any material fact
required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not
misleading.

 

(g) Issuer
Eligibility. The Company is not an “ineligible issuer” in connection with the Offering pursuant to Rules 164, 405 and
433 under the Securities Act. The Company has not, directly or indirectly, distributed and will not distribute any offering material in
connection with the Offering other than the Prospectus and other materials, if any, permitted under the Securities Act and consistent
with Section 5(b). The Company will file with the Commission all Issuer Free Writing Prospectuses (other than a “road show,”
as defined in Rule 433(d)(8) of the Rules and Regulations), if any, in the time and manner required under Rules 163(b)(2) and 433(d) of
the Rules and Regulations.

 

(h) Financial
Statements. The financial statements of the Company, together with the related notes, set forth or incorporated by reference in the
Registration Statement and the Prospectus comply in all material respects with the requirements of the Securities Act and the Exchange
Act and fairly present the financial condition of the Company and its consolidated subsidiaries as of the dates indicated and the results
of operations and changes in cash flows for the periods therein specified in conformity with generally accepted accounting principles
in the United States (“GAAP”) consistently applied throughout the periods involved; the supporting schedules included
in the Registration Statement present fairly the information required to be stated therein; all non-GAAP financial information included
in the Registration Statement and the Prospectus complies with the requirements of Regulation G and Item 10 of Regulation S-K under the
Securities Act; and, except as disclosed in the Registration Statement and the Prospectus, there are no material off-balance sheet arrangements
(as defined in Regulation S-K under the Securities Act, Item 303(a)(4)(ii)) or any other relationships with unconsolidated entities or
other persons, that may have a material current or, to the Company’s knowledge, material future effect on the Company’s financial
condition, results of operations, liquidity, capital expenditures, capital resources or significant components of revenue or expenses.
No other financial statements or schedules are required to be included in the Registration Statement or the Prospectus.

 

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(i) Due
Incorporation. Each of the Company and each of its Subsidiaries has been duly organized and is validly existing as a corporation or
other legal entity in good standing (or the foreign equivalent thereof) under the laws of its jurisdiction of incorporation or organization.
Each of the Company and its Subsidiaries is duly qualified to do business and is in good standing as a foreign corporation or other legal
entity in each jurisdiction in which its ownership or lease of its properties or the conduct of its business requires such qualification
and has all power and authority (corporate or other) necessary to own or hold its properties and to conduct the businesses in which each
is engaged, except where the failure to so qualify or be in good standing or have such power or authority would not have and would not
reasonably be expected to have, individually or in the aggregate, a material adverse effect on the condition (financial or otherwise),
results of operations, assets or business of the Company and its Subsidiaries, taken as a whole (any such effect, a “Material
Adverse Effect”). As used in this Agreement, “Subsidiary” shall mean a “significant subsidiary”
as such term is defined in Rule 1-02 of Regulation S-X of the Commission.

 

(j) Subsidiaries.
The membership interests or capital stock, as applicable, of each Subsidiary have been duly authorized and validly issued, are fully paid
and nonassessable and, except to the extent set forth in the Registration Statement or Prospectus (including the Incorporated Documents),
are owned by the Company directly, free and clear of any claim, lien, encumbrance, security interest, restriction upon voting or transfer
or any other claim of any third party.

 

(k) Due
Authorization. The Company has the full right, power and authority to enter into this Agreement and to perform and to discharge its
obligations hereunder and thereunder; and this Agreement has been duly authorized, executed, and delivered by the Company, and, assuming
due authorization, execution, delivery, validity, legally binding effect and enforceability hereof by the counterparties hereto, this
Agreement constitutes a valid and binding obligation of the Company enforceable in accordance with its terms, subject to applicable bankruptcy,
insolvency and similar laws affecting creditors’ rights generally and to general principles of equity and except as rights to indemnity
and contribution hereunder may be limited by federal or state securities laws or principles of public policy.

 

(l) Capitalization.
The authorized capital stock of the Company consists of 70,000,000 shares of Common Stock, of which 38,892,576 shares of Common Stock
were outstanding as of the close of business on June 2, 2021, and 100,000 shares of preferred stock, of which 7,531 shares of the Company’s
Series 1 Preferred Stock, par value $0.01 per share (the “Series 1 Preferred Stock”), were outstanding as of the close
of business of June 2, 2021. All of the outstanding shares of Common Stock have been duly authorized and are validly issued, fully paid
and nonassessable. Other than (i) 987,982 shares of Common Stock issuable upon exercise of outstanding stock options or reserved for issuance
under the Company’s employee benefit plans, stock option and employee stock purchase plans or other employee compensation plans
as such plans are in existence on the date hereof and described in the Registration Statement; and (ii) 3,050,432 shares of Common Stock
issuable upon conversion of the outstanding shares of Series 1 Preferred Stock, the Company has no shares of capital stock reserved for
issuance. Except as described in the Registration Statement and Prospectus (including the Incorporated Documents), there are no preemptive
or other outstanding rights, options, warrants, conversion rights, stock appreciation rights, redemption rights, repurchase rights, agreements,
arrangements, calls, commitments or rights of any kind that obligate the Company or any of its Subsidiaries to issue or sell any shares
of capital stock or other securities of the Company or any of its Subsidiaries or any securities or obligations convertible or exchangeable
into or exercisable for, or giving any person a right to subscribe for or acquire, any securities of the Company or any of its Subsidiaries,
and no securities or obligations evidencing such rights are authorized, issued or outstanding. Except as described in the Registration
Statement and Prospectus (including the Incorporated Documents), the Company does not have outstanding any bonds, debentures, notes or
other obligations the holders of which have the right to vote (or convertible into or exercisable for securities having the right to vote)
with the stockholders of the Company on any matter. None of the outstanding shares of capital stock of the Company were issued in violation
of any preemptive rights, rights of first refusal or other similar rights to subscribe for or purchase securities of the Company. Except
as described in the Registration Statement and Prospectus (including the Incorporated Documents), neither the filing of the Registration
Statement nor the offering or sale of the Placement Shares as contemplated by this Agreement gives rise to any rights for or relating
to the registration of any shares of Common Stock or other securities of the Company (collectively “Registration Rights”)
and any person to whom the Company has granted Registration Rights, if any, has agreed not to exercise such rights until after expiration
of any applicable lock-up period. The Placement Shares to be issued and sold by the Company have been duly authorized and, when issued,
delivered and paid for in accordance with the terms of this Agreement, will have been validly issued and will be fully paid and nonassessable,
and the holders thereof will not be subject to personal liability by reason of being such holders.

 

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(m) No
Default, Termination or Lien. The execution, delivery and performance of this Agreement and the consummation of the transactions contemplated
hereby, and compliance by the Company with the terms of this Agreement, will not (with or without notice or lapse of time or both) conflict
with or result in a breach or violation of any of the terms or provisions of, constitute a default under, give rise to any right of termination
or other right or the cancellation or acceleration of any right or obligation or loss of a benefit under, or give rise to the creation
or imposition of any lien, encumbrance, security interest, claim or charge upon any property or assets of the Company or any Subsidiary
pursuant to, any indenture, mortgage, deed of trust, loan agreement or other agreement or instrument to which the Company or any of its
Subsidiaries is a party or by which the Company or any of its Subsidiaries is bound or to which any of the property or assets of the Company
or any of its Subsidiaries is subject, except for such conflicts that would not reasonably be expected to result in a Material Adverse
Effect, nor will such actions result in any violation of the provisions of the charter or by-laws (or analogous governing instruments,
as applicable) of the Company or any of its Subsidiaries or any material violation of any law, statute, rule, regulation, judgment, order
or decree of any court or governmental agency or body, domestic or foreign, having jurisdiction over the Company or any of its Subsidiaries
or any of their properties or assets, except for such conflicts that would not reasonably be expected to result in a Material Adverse
Effect.

 

(n) No
Consents. No consent, approval, authorization or order of, or qualification with, any governmental body or agency is required for
the performance by the Company of its obligations under this Agreement, except such as have been obtained prior to the Applicable Time,
or as may be required under the Securities Act, the rules of the Financial Industry Regulatory Authority (“FINRA”)
or state securities or blue sky laws or relating to the issuance of the Placement Shares with the NASDAQ Global Market.

 

(o) Independent
Accountants. PricewaterhouseCoopers LLP (“PwC”), who have certified certain financial statements and related schedules
included or incorporated by reference in the Registration Statement, is an independent registered public accounting firm as required by
the Securities Act and the rules and regulations thereunder and the Public Company Accounting Oversight Board (United States) (“PCAOB”).
Except as pre-approved in accordance with the requirements set forth in Section 10A of the Exchange Act, PwC has not been engaged by the
Company to perform any “prohibited activities” (as defined in Section 10A of the Exchange Act).

 

(p) No
Material Adverse Change. There has not occurred any material adverse change, or any development involving a prospective material adverse
change, in the condition, financial or otherwise, or in the earnings, business or operations of the Company and its Subsidiaries, taken
as a whole, from that set forth or contemplated in the Registration Statement or the Prospectus filed prior to the date hereof.

 

(q) Legal
Proceedings. There are no legal or governmental proceedings, actions, suits or claims pending or, to the Company’s knowledge,
threatened to which the Company or any of its Subsidiaries is a party or to which any of the properties or assets of the Company or any
of its Subsidiaries is subject (i) other than proceedings accurately described in all material respects in the Registration Statement
and Prospectus (including the Incorporated Documents) and proceedings that would not have and would not reasonably be expected to have,
individually or in the aggregate, a Material Adverse Effect, or (ii) that are required to be described in the Registration Statement and
are not so described; and there are no statutes, regulations, contracts or other documents to which the Company or any of its Subsidiaries
is subject or by which the Company or any of its Subsidiaries is bound that are required to be described in the Registration Statement
or to be filed as exhibits to the Registration Statement that are not described or filed as required. Neither the Company nor any Subsidiary,
nor any director or officer thereof (in his or her capacity as such), is or has been the subject of any legal or governmental proceedings,
actions, suits or claims of violation of or liability under federal or state securities laws or a claim of breach of fiduciary duty.

 

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(r) Regulatory
Permits. Each of the Company and its Subsidiaries possesses or has applied for all certificates, authorizations, licenses, franchises,
permits, orders and approvals issued or granted by the appropriate governmental or regulatory authorities, agencies, courts, commissions
or other entities, whether federal, state, local or foreign, or applicable self-regulatory organizations necessary to conduct its business
as currently conducted, except (i) where the failure to possess such certificates, authorizations, licenses, franchises, permits, orders
and approval, individually or in the aggregate, has not and would not reasonably be expected to have, individually or in the aggregate,
a Material Adverse Effect (“Material Permits”) and (ii) as accurately described in all material respects in the Registration
Statement and Prospectus (including the Incorporated Documents). Neither the Company nor any of its Subsidiaries has received any written
notice of proceedings relating to the revocation or material adverse modification of any such Material Permits (except as accurately described
in all material respects in the Registration Statement and Prospectus (including the Incorporated Documents)), and to the Company’s
knowledge, there are no facts or circumstances that would give rise to the revocation or material adverse modifications of any Material
Permits.

 

(s) Material
Contracts. Except for Material Contracts, the Company and its Subsidiaries are not party to any agreements, contracts or commitments
that are material to the business, financial condition, assets or operations of the Company and its Subsidiaries that would be required
to be filed pursuant to Item 601(b)(10) of Regulation S-K under the Exchange Act. Neither the Company nor any of its Subsidiaries is in
material default under or in material violation of, nor to the Company’s knowledge, has received written notice of termination or
default under any Material Contract. For purposes of this Agreement, “Material Contract” means any contract of the
Company that was filed as an exhibit to the Registration Statement pursuant to Item 601(b)(10) of Regulation S-K.

 

(t) Investment
Company Act. Neither the Company nor any of its Subsidiaries is or, after giving effect to the purchase and sale of the Shares contemplated
hereby and the application of the proceeds thereof, will become an “investment company” within the meaning of the Investment
Company Act of 1940, as amended (the “Investment Company Act”), and the rules and regulations of the Commission thereunder.

 

(u) No
Price Stabilization. Neither the Company, its Subsidiaries nor, to the Company’s knowledge, any of the Company’s or its
Subsidiaries’ officers, directors or affiliates has taken or will take, directly or indirectly, any action designed or intended
to stabilize or manipulate the price of any security of the Company, or which caused or resulted in, or which would in the future reasonably
be expected to cause or result in, stabilization or manipulation of the price of any security of the Company.

 

(v) Title
to Property. The Company and its Subsidiaries have good and marketable title to all real and personal property owned by them which
is material to the business of the Company and its Subsidiaries, taken as a whole, in each case free and clear of all liens, encumbrances
and defects of title except such as are described in the Registration Statement and Prospectus (including the Incorporated Documents)
or such as do not materially affect the value of such property and do not interfere with the use made and proposed to be made of such
property by the Company and its Subsidiaries or could not reasonably be expected to have a Material Adverse Effect; and any real property
and buildings held under lease by the Company and its Subsidiaries are held by them under valid, subsisting and enforceable leases with
such exceptions as are not material and do not interfere with the use made and proposed to be made of such property and buildings by the
Company and its Subsidiaries, in each case except as described in the Registration Statement and Prospectus (including the Incorporated
Documents) or that could not reasonably be expected to have a Material Adverse Effect.

 

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(w) No
Labor Disputes. No labor problem or dispute with the employees of the Company exists, or, to the Company’s knowledge, is threatened
or imminent, which would or would reasonably be expected, individually or in the aggregate, to result in a Material Adverse Effect. The
Company is not aware that any key employee or significant group of employees of the Company plans to terminate employment with the Company.
To the Company’s knowledge, no executive officer (as defined in Rule 501(f) of the Securities Act) of the Company or any of its
Subsidiaries is in violation of any material term of any employment contract, confidentiality, disclosure or proprietary information agreement
or non-competition agreement. Except for matters which would not and would not reasonably be expected to, individually or in the aggregate,
result in a Material Adverse Effect, (i) the Company has not engaged in any unfair labor practice; (ii) there is (A) no unfair labor practice
complaint pending or, to the Company’s knowledge, threatened against the Company before the National Labor Relations Board, and
no grievance or arbitration proceeding arising out of or under collective bargaining agreements is pending or to the Company’s knowledge,
threatened, (B) no strike, labor dispute, slowdown or stoppage pending or, to the Company’s knowledge, threatened against the Company
and (C) no union representation dispute currently existing concerning the employees of the Company and (iii) to the Company’s knowledge,
(A) no union organizing activities are currently taking place concerning the employees of the Company and (B) there has been no violation
of any federal, state, local or foreign law relating to discrimination in the hiring, promotion or pay of employees, any applicable wage
or hour laws or any provision of the Employee Retirement Income Security Act of 1974 (“ERISA”) or the rules and regulations
promulgated thereunder concerning the employees of the Company.

 

(x) Taxes.
The Company (i) has timely filed all necessary federal, state, local and foreign income and franchise tax returns (or timely filed applicable
extensions therefore) that have been required to be filed and (ii) is not in default in the payment of any taxes which were payable pursuant
to said returns or any assessments with respect thereto, other than any which the Company is contesting in good faith and for which adequate
reserves have been provided and reflected in the financial statements included in the Registration Statement and the Prospectus (including
the Incorporated Documents), or any which would not reasonably be expected to result in, individually or in the aggregate, a Material
Adverse Effect. The Company does not have any tax deficiency that has been or, to the Company’s knowledge, is reasonably likely
to be asserted or threatened against it that would result or would reasonably be expected to result in, individually or in the aggregate,
a Material Adverse Effect.

 

(y) ERISA.
The Company is in compliance in all material respects with all presently applicable provisions of ERISA; no “reportable event”
(as defined in ERISA) has occurred with respect to any “pension plan” (as defined in ERISA) for which the Company would have
any liability; the Company has not incurred and does not expect to incur liability under (i) Title IV of ERISA with respect to termination
of, or withdrawal from, any “pension plan” or (ii) Sections 412 or 4971 of the Internal Revenue Code of 1986, as amended,
including the regulations and published interpretations thereunder (the “Code”); and each “pension plan”
for which the Company would have any liability that is intended to be qualified under Section 401(a) of the Code is so qualified in all
material respects and nothing has occurred, whether by action or by failure to act, which would cause the loss of such qualification.

 

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(z) Compliance
with Environmental Laws. Except as disclosed in the Registration Statement and the Prospectus, neither the Company nor any of its
Subsidiaries is in violation of any statute, rule, regulation, decision or order of any governmental agency or body or any court, relating
to the use, disposal or release of hazardous or toxic substances or relating to the protection or restoration of the environment or human
exposure to hazardous or toxic substances (collectively, “Environmental Laws”), or to the Company’s knowledge,
operates any real property contaminated with any substance that is subject to any Environmental Laws, is liable for any off-site disposal
or contamination pursuant to any Environmental Laws, or is subject to any claim relating to any Environmental Laws, which violation, contamination,
liability or claim would or would reasonably be expected, individually or in the aggregate, to have a Material Adverse Effect; and the
Company is not aware of any pending investigation which might lead to such a claim.

 

(aa) Intellectual Property Rights.
The Company and its Subsidiaries own or possess, or have the right to use, adequate trademarks, trade names and other rights to inventions,
know-how, patents, copyrights, confidential information and other intellectual property (collectively, “Intellectual Property
Rights”) necessary to conduct the business now operated by them, or presently employed by them, and have not received any notice
of infringement of or conflict with asserted rights of others with respect to any Intellectual Property Rights, except in each case such
as would not and would not reasonably be expected to, individually or in the aggregate, have a Material Adverse Effect.

 

(bb) Foreign Corrupt Practices
Act. Neither the Company nor any of its Subsidiaries, nor to its knowledge, any director, officer, employee or other person associated
with or acting on behalf of the Company or any of its Subsidiaries has: (i) used any Company funds for any unlawful contribution, gift,
entertainment or other unlawful expense relating to political activity; (ii) made any direct or indirect unlawful payment to any foreign
or domestic government official or employee from Company funds; (iii) caused the Company or any of its Subsidiaries to be in violation
of any provision of the United States Foreign Corrupt Practices Act of 1977; or (iv) made any bribe, rebate, payoff, influence payment,
kickback or other unlawful payment from Company funds.

 

(cc) OFAC and Similar Laws.
None of the Company, any of its Subsidiaries or, to the Company’s knowledge, any director, officer, agent, employee, affiliate or
representative of the Company or any of its Subsidiaries is an individual or entity (“Person”) currently the subject
or target of any sanctions administered or enforced by the United States Government, including, without limitation, the U.S. Department
of the Treasury’s Office of Foreign Assets Control, the United Nations Security Council, the European Union, Her Majesty’s
Treasury, or other relevant sanctions authority (collectively, “Sanctions”), nor is the Company or any of its Subsidiaries
located, organized or resident in a country or territory that is the subject of Sanctions; and the Company will not directly or indirectly
use the proceeds of the sale of the Placement Shares, or lend, contribute or otherwise make available such proceeds to any subsidiaries,
joint venture partners or other Person, to knowingly fund any activities of or business with any Person, or in any country or territory,
that, at the time of such funding, is the subject of Sanctions or in any other manner that will result in a violation by any Person (including
any Person participating in the transaction, whether as underwriter, advisor, investor or otherwise) of Sanctions.

 

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(dd) Disclosure Controls and Procedures.
The Company has established and maintains disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e))
that are effective in all material respects to ensure that material information relating to the Company, including any consolidated Subsidiaries,
is made known to its chief executive officer and chief financial officer by others within those entities. The Company’s certifying
officers have evaluated the effectiveness of the Company’s controls and procedures as of the end of the period covered by the most
recently filed annual periodic report under the Exchange Act (such date, the “Evaluation Date”). The Company presented
in its most recently filed annual periodic report under the Exchange Act the conclusions of the certifying officers about the effectiveness
of the disclosure controls and procedures based on their evaluations as of the Evaluation Date.

 

(ee) Accounting Controls. The
Company and its Subsidiaries maintain a system of internal accounting and other controls sufficient to provide reasonable assurances that
(i) transactions are executed in accordance with management’s general or specific authorizations; (ii) transactions are recorded
as necessary to permit preparation of financial statements in conformity with GAAP and to maintain accountability for assets; (iii) access
to assets is permitted only in accordance with management’s general or specific authorization; and (iv) the recorded accountability
for assets is compared with existing assets at reasonable intervals and appropriate action is taken with respect to any differences. Except
as described in the Registration Statement and Prospectus, since the end of the Company’s most recent audited fiscal year, there
has been (A) no material weakness in the Company’s internal control over financial reporting (whether or not remediated) and (B)
no change in the Company’s internal control over financial reporting that has materially affected, or is reasonably likely to materially
affect, the Company’s internal control over financial reporting.

 

(ff) Absence of Material Changes.
Subsequent to the respective dates as of which information is given in the Registration Statement, and except as may be otherwise disclosed
in the Registration Statement and the Prospectus, there has not been (i) any Material Adverse Effect, (ii) any transaction which is material
to the Company, (iii) any obligation, direct or contingent (including any off-balance sheet obligations), incurred by the Company, which
is material to the Company, (iv) any dividend or distribution of any kind declared, paid or made on the capital stock of the Company,
(v) any change in the capital stock (other than a change in the number of outstanding shares of Common Stock due to grants of stock under
the Company’s stock incentive plans existing on the date hereof or the issuance of shares upon the exercise of outstanding options
or warrants) or any issuance of options, warrants, convertible securities or other rights to purchase the capital stock (other than grants
of stock options under the Company’s stock option plans existing on the date hereof) of the Company.

 

(gg) Broker’s Fees. Neither
the Company nor any of its Subsidiaries is a party to any contract, agreement or understanding with any person (other than this Agreement
and any letter of understanding between the Company and the Agent) that would give rise to a valid claim against the Company or the Agent
for a brokerage commission, finder’s fee or like payment in connection with the offering and sale of the Placement Shares or any
transaction contemplated by this Agreement.

 

(hh) Listing and Maintenance Requirements.
The Company is subject to and in compliance in all material respects with the reporting requirements of Section 13 or Section 15(d) of
the Exchange Act, as applicable. The Common Stock is registered pursuant to Section 12(b) of the Exchange Act and is listed on the NASDAQ
Global Market, and the Company has taken no action designed to, or reasonably likely to have the effect of, terminating the registration
of the Common Stock under the Exchange Act or delisting the Common Stock from the NASDAQ Global Market, nor has the Company received any
written notification that the Commission or NASDAQ is contemplating terminating such registration or listing. The Placement Shares will
be duly authorized for listing on the NASDAQ Global Market immediately following the date hereof.

 

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(ii) Sarbanes-Oxley
Act. The Company is in compliance in all material respects with all applicable provisions of the Sarbanes-Oxley Act of 2002 and all
applicable rules and regulations promulgated thereunder or implementing the provisions thereof that are then in effect.

 

(jj) NASDAQ Stockholder Approval
Rules. No approval of the stockholders of the Company under the rules and regulations of NASDAQ (including Rule 5635 of the NASDAQ
Marketplace Rules) is required for the Company to issue and deliver the Placement Shares to the Agent.

 

(kk) Insurance. The Company
and each of its Subsidiaries carries, or is covered by, insurance from reputable insurers in such amounts and covering such risks as is
adequate for the conduct of its business and the value of its properties and as is customary for companies engaged in similar businesses
in similar industries; all policies of insurance and any fidelity or surety bonds insuring the Company or any of its Subsidiaries or its
business, assets, employees, officers and directors are in full force and effect; the Company and its Subsidiaries are in compliance with
the terms of such policies and instruments in all material respects; there are no claims by the Company or any of its Subsidiaries under
any such policy or instrument as to which any insurance company is denying liability or defending under a reservation of rights clause
that are reasonably expected to individually or in the aggregate have a Material Adverse Effect; neither the Company nor any of its Subsidiaries
has been refused any insurance coverage sought or applied for; and neither the Company nor any of its Subsidiaries has reason to believe
that it will not be able to renew its existing insurance coverage as and when such coverage expires or to obtain similar coverage from
similar insurers as may be necessary to continue its business at a cost that would not have a Material Adverse Effect.

 

(ll) Eligibility to use Form S-3.
The conditions for use of Form S-3 in connection with the offer and sale of the Placement Shares, as set forth in the General Instructions
thereto, have been satisfied.

 

(mm) Incorporated Documents.
The documents incorporated by reference in the Registration Statement and in the Prospectus, when they became effective or were filed
with the Commission, as the case may be, conformed in all material respects to the requirements of the Securities Act or the Exchange
Act, as applicable, and were filed on a timely basis with the Commission (except to the extent such untimely filing did not affect the
Company’s eligibility to use Form S-3) and none of such documents contained an untrue statement of a material fact or omitted to
state a material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading;
any further documents so filed and incorporated by reference in the Registration Statement or in the Prospectus, when such documents are
filed with the Commission, will conform in all material respects to the requirements of the Exchange Act, and will not contain an untrue
statement of a material fact or omit to state a material fact necessary to make the statements therein, in the light of the circumstances
under which they were made, not misleading.

 

(nn) Compliance with Occupational
Laws. To its knowledge, the Company and each of its Subsidiaries (A) is in compliance, in all material respects, with any and all
applicable foreign, federal, state and local laws, rules, regulations, treaties, statutes and codes promulgated by any and all governmental
authorities (including pursuant to the Occupational Health and Safety Act) relating to the protection of human health and safety in the
workplace (“Occupational Laws”); (B) has received all material permits, licenses or other approvals required of it
under applicable Occupational Laws to conduct its business as currently conducted; and (C) is in compliance, in all material respects,
with all terms and conditions of such permit, license or approval. No material action, proceeding, revocation proceeding, writ, injunction
or claim is pending or, to the Company’s knowledge, threatened against the Company or any of its Subsidiaries relating to Occupational
Laws, and the Company does not have knowledge of any facts, circumstances or developments relating to its operations or cost accounting
practices that could reasonably be expected to form the basis for or give rise to such actions, suits, investigations or proceedings.

 

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(oo)
Statistical Information. Any third-party statistical and market-related data included in the Registration Statement and the Prospectus
are based on or derived from sources that the Company believes to be reliable and accurate in all material respects.

 

(pp) Forward-Looking Statements.
No forward-looking statement (within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act) contained in
either the Registration Statement or the Prospectus has been made or reaffirmed without a reasonable basis or has been disclosed other
than in good faith.

 

(qq) FINRA Matters. Except
as previously disclosed to counsel for the Agent or as set forth in the Registration Statement and the Prospectus, to the Company’s
knowledge, no beneficial owners of the Company’s capital stock or subordinated debt who, together with their associated persons
and affiliates, hold in the aggregate 10% or more of such capital stock or subordinated debt, have any direct or indirect association
or affiliate with a FINRA member. In addition, the Company represents that the Company (i) has a non-affiliate, public common equity float
of at least $150 million or (ii) a non-affiliate, public common equity float of at least $100 million and annual trading volume of at
least three million shares.

 

(rr) NASDAQ Marketplace Rules.
Except as described in the Registration Statement or the Prospectus, the Company is and will be in compliance in all material respects
with all applicable corporate governance requirements set forth in the NASDAQ Marketplace Rules.

 

(ss)  Six Month Period Prior to
Offering. Except (i) as described in the Registration Statement and the Prospectus and (ii) as to shares of Common Stock issued pursuant
to the At Market Issuance Sales Agreement between the Company and the Placement Agent dated July 31, 2020, the Company has not sold, issued
or distributed any shares of Common Stock during the six-month period preceding the date hereof, including any sales pursuant to Rule
144A under, or Regulation D or S of, the Securities Act, other than 64,356 shares of Common Stock issued to the Company’s senior
secured lender as a fee for extending the maturity date under the applicable credit agreement to May 25, 2022 and shares of Common Stock
issued pursuant to employee benefit plans, qualified stock option plans or other employee or consultant compensation plans or pursuant
to outstanding options, rights, convertible preferred stock or warrants.

 

4. The
Closing. The time and date of closing and delivery of the documents required to be delivered to the Placement Agent pursuant to
Sections 5 and 7 hereof shall be on June 7, 2021 or at any other date mutually agreed upon between the Company and the Placement
Agent (the “Closing Date”).

 

5. Further
Covenants and Agreements of the Company. The Company covenants and agrees with the Placement Agent and, as applicable, with the
Purchasers as follows:

 

(a) To
prepare the Rule 462(b) Registration Statement, if necessary, in a form approved by the Placement Agent and file such Rule 462(b) Registration
Statement with the Commission on the date hereof; to prepare the Prospectus in a form approved by the Placement Agent containing information
previously omitted at the time of effectiveness of the Registration Statement in reliance on rules 430A, 430B and 430C and to file such
Prospectus pursuant to Rule 424(b) of the Rules and Regulations not later than the second business day following the execution and delivery
of this Agreement or, if applicable, such earlier time as may be required by Rule 430A of the Rules and Regulations; to notify the Placement
Agent promptly of the Company’s intention to file or prepare any supplement or amendment to any Registration Statement or to the
Prospectus in connection with this Offering and to provide a draft of any such amendment or supplement to the Registration Statement,
the General Disclosure Package or to the Prospectus to the Placement Agent for review within an amount of time that is reasonably practical
under the circumstances and prior to filing; to advise the Placement Agent, promptly after it receives notice thereof, of the time when
any amendment to any Registration Statement has been filed in connection with the Offering or becomes effective or any supplement to the
General Disclosure Package or the Prospectus or any amended Prospectus has been filed and to furnish the Placement Agent with copies thereof;
to file within the time periods prescribed by the Exchange Act, including any extension thereof, all material required to be filed by
the Company with the Commission pursuant to Rule 433(d) or 163(b)(2), as the case may be; to advise the Placement Agent, promptly after
it receives notice thereof, of the issuance by the Commission of any stop order or of any order preventing or suspending the use of any
Issuer Free Writing Prospectus or the Prospectus, of the suspension of the qualification of the Shares for offering or sale in any jurisdiction,
of the initiation or threatening of any proceeding for any such purpose, or of any request by the Commission for the amending or supplementing
of the Registration Statement, the General Disclosure Package or the Prospectus or for additional information; and, in the event of the
issuance of any stop order or of any order preventing or suspending the use of any Issuer Free Writing Prospectus or the Prospectus or
suspending any such qualification, and promptly to use its best efforts to obtain the withdrawal of such order.

 

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(b) That,
unless it obtains the prior consent of the Placement Agent, it has not made and will not make any offer relating to the Shares that would
constitute a “free writing prospectus” as defined in Rule 405 of the Rules and Regulations unless the prior written consent
of the Placement Agent has been received (each, a “Permitted Free Writing Prospectus”). The Company represents that
it has treated and agrees that it will treat each Permitted Free Writing Prospectus as an Issuer Free Writing Prospectus, and that it
has and will comply with the requirements of Rules 164 and 433 of the Rules and Regulations applicable to any Issuer Free Writing Prospectus,
including the requirements relating to timely filing with the Commission, legending and record keeping.

 

(c) If
at any time prior to the expiration of the date when a Prospectus relating to the Shares is required to be delivered under the Securities
Act, any event occurs or condition exists as a result of which the Prospectus, as then amended or supplemented, would include any untrue
statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in light of the circumstances
under which they were made, not misleading, or the Registration Statement, as then amended or supplemented, would include any untrue statement
of a material fact or omit to state a material fact necessary to make the statements therein not misleading, or if for any other reason
it is necessary at any time to amend or supplement any Registration Statement or the Prospectus to comply with the Securities Act or the
Exchange Act, the Company will promptly notify the Placement Agent, and upon the Placement Agent’s request, the Company will promptly
prepare and file with the Commission, at the Company’s expense, an amendment to the Registration Statement or an amendment or supplement
to the Prospectus that corrects such statement or omission or effects such compliance. The Company consents to the use of the Prospectus
or any amendment or supplement thereto by the Placement Agent.

 

(d) To
the extent not available on the Commission’s EDGAR system, to make generally available to its stockholders as soon as practicable,
but in any event not later than eighteen (18) months after the effective date of each Registration Statement (as defined in Rule 158(c)
of the Rules and Regulations), an earnings statement of the Company and its consolidated Subsidiaries (which need not be audited) complying
with Section 11(a) of the Securities Act and the Rules and Regulations (including, at the option of the Company, Rule 158).

 

(e) To
take promptly from time to time such actions as the Placement Agent may reasonably request to qualify the Shares for offering and sale
under the securities or Blue Sky laws of such jurisdictions (domestic or foreign) as the Placement Agent may designate and to continue
such qualifications in effect, and to comply with such laws, for so long as required to permit the offer and sale of Shares in such jurisdictions;
provided that the Company and its Subsidiaries shall not be obligated to qualify as foreign corporations in any jurisdiction in
which they are not so qualified or to file a general consent to service of process in any jurisdiction.

 

(f) Until
the Placement Agent shall have notified the Company of the completion of the Offering of the Shares, that the Company will not, and will
cause its affiliated purchasers (as defined in Regulation M under the Exchange Act) not to, either alone or with one or more other persons,
bid for or purchase, for any account in which it or any of its affiliated purchasers has a beneficial interest, any Shares, or attempt
to induce any person to purchase any Shares; and not to, and to cause its affiliated purchasers not to, make bids or purchase for the
purpose of creating actual, or apparent, active trading in or of raising the price of the Shares.

 

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(g) Not
to take any action prior to the Closing Date which would require the Prospectus to be amended or supplemented pursuant to Section 5.

 

(h) To
use its best efforts to list, effect and maintain, subject to notice of issuance, the Common Stock on the NASDAQ Global Select Market.

 

(i) To
use its best efforts to assist the Placement Agent with any filings with FINRA and obtaining any required clearance from FINRA as to the
amount of compensation allowable or payable to the Placement Agent.

 

(j) To
use its best efforts to do and perform all things required to be done or performed under this Agreement by the Company prior to the Closing
Date and to satisfy all conditions precedent to the delivery of the Shares.

 

6. Payment
of Expenses. The Company agrees to pay, or reimburse if paid by the Placement Agent, whether or not the transactions contemplated
hereby are consummated or this Agreement is terminated: (a) the costs incident to the authorization, issuance, sale and delivery of the
Shares to the Purchasers and any taxes payable in that connection; (b) the costs incident to the registration of the Shares under the
Securities Act; (c) the costs incident to the preparation, printing and distribution of the Registration Statement, the Base Prospectus,
any Issuer Free Writing Prospectus, the General Disclosure Package, the Prospectus, any amendments, supplements and exhibits thereto or
any document incorporated by reference therein; (d) the reasonable and documented fees and expenses incurred in connection with securing
any required review by FINRA and any filings made with FINRA; (e) any applicable listing, quotation or other fees; (f) the reasonable
and documented fees and expenses (including reasonable and documented related fees and expenses of counsel for the Placement Agent) of
qualifying the Shares under the securities laws of the several jurisdictions as provided in Section 5(e) and of preparing, printing
and distributing wrappers and blue sky memoranda; (g) all fees and expenses of the registrar and transfer agent of the Shares; and (h)
all other costs and expenses of the Company and the Placement Agent incident to the Offering of the Shares by, or the performance of the
obligations of, the Company and the Placement Agent under this Agreement (including, without limitation, the reasonable and documented
fees and expenses of the Company’s counsel, Placement Agent’s counsel and the Company’s independent accountants and
the travel and other reasonable expenses incurred by Company and the Placement Agent’s personnel in connection with any “road
show” including, without limitation, any expenses advanced by the Placement Agent on the Company’s behalf (which will be promptly
reimbursed)). For the avoidance of doubt, the Company agrees to reimburse the Placement Agent’s reasonable out-of-pocket expenses,
including the reasonable legal fees of Morgan Lewis & Bockius, LLP, counsel to the Placement Agent, whether or not the Offering is
consummated; provided that, the Company shall not be liable to the Placement Agent for any legal fees of the Placement Agent in
excess of $25,000.

 

7. Conditions
to the Obligations of the Placement Agent and the Purchasers, and the Sale of the Shares. The respective obligations of the Placement
Agent hereunder, and the closing of the sale of the Shares, are subject to the accuracy, when made and as of the Applicable Time and on
the Closing Date, of the representations and warranties of the Company contained herein, to the accuracy of the statements of the Company
made in any certificates pursuant to the provisions hereof, to the performance by the Company of its obligations hereunder, and to each
of the following additional terms and conditions:

 

(a) No
stop order suspending the effectiveness of the Registration Statement or any part thereof, preventing or suspending the use of any Base
Prospectus, the Prospectus or any Permitted Free Writing Prospectus or any part thereof shall have been issued and no proceedings for
that purpose or pursuant to Section 8A under the Securities Act shall have been initiated or threatened by the Commission, and all requests
for additional information on the part of the Commission (to be included or incorporated by reference in the Registration Statement or
the Prospectus or otherwise) shall have been complied with to the reasonable satisfaction of the Placement Agent; the Rule 462(b) Registration
Statement, if any, each Issuer Free Writing Prospectus, if any, and the Prospectus shall have been filed with the Commission within the
applicable time period prescribed for such filing by, and in compliance with, the Rules and Regulations and in accordance with Section
5(a), and the Rule 462(b) Registration Statement, if any, shall have become effective immediately upon its filing with the Commission;
and FINRA shall have raised no objection to the fairness and reasonableness of the terms of this Agreement or the transactions contemplated
hereby.

 

(b) The
Placement Agent shall not have discovered and disclosed to the Company on or prior to the Closing Date that the Registration Statement
or any amendment or supplement thereto contains an untrue statement of a fact which, in the opinion of counsel for the Placement Agent,
is material or omits to state any fact which, in the opinion of such counsel, is material and is required to be stated therein or is necessary
to make the statements therein not misleading, or that the General Disclosure Package, any Issuer Free Writing Prospectus or the Prospectus
or any amendment or supplement thereto contains an untrue statement of fact which, in the opinion of such counsel, is material or omits
to state any fact which, in the opinion of such counsel, is material and is necessary in order to make the statements, in the light of
the circumstances in which they were made, not misleading.

 

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(c) All
corporate proceedings and other legal matters incident to the authorization, form and validity of each of this Agreement, the Shares,
the Registration Statement, the General Disclosure Package, each Issuer Free Writing Prospectus, if any, and the Prospectus and all other
legal matters relating to this Agreement and the transactions contemplated hereby shall be reasonably satisfactory in all material respects
to counsel for the Placement Agent, and the Company shall have furnished to such counsel all documents and information that they may reasonably
request.

 

(d) Greenburg
Traurig LLP shall have furnished to the Placement Agent, such counsel’s written opinion, as counsel to the Company, addressed to
the Placement Agent and dated the Closing Date, in the form agreed as of the date hereof.

 

(e) The
Company shall have furnished to the Placement Agent and the Purchasers a certificate, dated the Closing Date, of its Chief Executive Officer
and its Chief Financial Officer stating that (i) to the best of their knowledge after reasonable investigation, as of the Closing Date,
the representations and warranties of the Company in this Agreement are true and correct in all material respects, except that any such
representation or warranty shall be true and correct in all respects where such representation or warranty is qualified with respect to
materiality, and the Company has complied with all agreements and satisfied all conditions on its part to be performed or satisfied hereunder
at or prior to the Closing Date, and (ii) there has not been, subsequent to the date of the most recent unaudited financial statements
included or incorporated by reference in the General Disclosure Package, any material adverse change in the financial position or results
of operations of the Company and its Subsidiaries, taken as a whole, or any change or development that, singly or in the aggregate, would
involve a material adverse change or a prospective material adverse change, in or affecting the condition (financial or otherwise), results
of operations, business, or assets of the Company and its Subsidiaries taken as a whole, except as set forth in the Prospectus.

 

(f) Since
the date of the latest audited financial statements included in the General Disclosure Package or incorporated by reference in the General
Disclosure Package as of the date hereof, (i) neither the Company nor any of its Subsidiaries shall have sustained any loss or interference
with its business from fire, explosion, flood or other calamity, whether or not covered by insurance, or from any labor dispute or court
or governmental action, order or decree, otherwise than as set forth in the General Disclosure Package, and (ii) there shall not have
been any change in the capital stock or long-term debt of the Company nor any of its Subsidiaries, or any change, or any development involving
a prospective change, in or affecting the business, general affairs, management, financial position, stockholders’ equity, or results
of operations of the Company and its Subsidiaries, taken as a whole, otherwise than as set forth in the General Disclosure Package, the
effect of which, in any such case described in clause (i) or (ii) of this paragraph (f), is, in the reasonable judgment of the
Placement Agent, so material and adverse as to make it impracticable or inadvisable to proceed with the sale or delivery of the Shares
on the terms and in the manner contemplated in the General Disclosure Package.

 

(g) No
action shall have been taken and no law, statute, rule, regulation or order shall have been enacted, adopted or issued by any governmental
agency or body which would prevent the issuance or sale of the Shares or materially and adversely affect the business or operations of
the Company and its Subsidiaries, taken as a whole; and no injunction, restraining order or order of any other nature by any United States
federal or state court of competent jurisdiction shall have been issued which would prevent the issuance or sale of the Shares or materially
and adversely affect the business or operations of the Company or its Subsidiaries, taken as a whole.

 

(h) Subsequent
to the execution and delivery of this Agreement there shall not have occurred any of the following: (i) trading in securities generally
on the New York Stock Exchange or the NASDAQ Stock Market or in the over-the-counter market, or trading in any securities of the Company
on any exchange or in the over-the-counter market, shall have been suspended or materially limited, or minimum or maximum prices or maximum
range for prices shall have been established on any such exchange or such market by the Commission, by such exchange or market or by any
other regulatory body or governmental authority having jurisdiction; (ii) a banking moratorium shall have been declared by United States
federal or state authorities or a material disruption has occurred in commercial banking or securities settlement or clearance services
in the United States; (iii) the United States shall have become engaged in hostilities, or the subject of an act of terrorism, or there
shall have been an outbreak of or escalation in hostilities involving the United States, or there shall have been a declaration of a national
emergency or war by the United States; or (iv) there shall have occurred such a material adverse change in general economic, political
or financial conditions (or the effect of international conditions on the financial markets in the United States shall be such) as to
make it, in the reasonable judgment of the Placement Agent, impracticable or inadvisable to proceed with the sale or delivery of the Shares
on the terms and in the manner contemplated in the General Disclosure Package and the Prospectus.

 

(i) Prior
to the Closing Date, the Company shall have furnished to the Placement Agent such further information, opinions, certificates, letters
or documents as the Placement Agent shall have reasonably requested, including a Secretary’s Certificate.

 

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All opinions, letters, evidence and certificates
mentioned above or elsewhere in this Agreement shall be deemed to be in compliance with the provisions hereof only if they are in form
and substance reasonably satisfactory to counsel for the Placement Agent.

 

8. Indemnification
and Contribution.

 

(a) The
Company shall indemnify and hold harmless the Placement Agent, each of its affiliates and each of its and their respective directors,
officers, members, employees, representatives and agents and their respective affiliates, and each person, if any, who controls such Placement
Agent within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act (collectively the “Placement Agent
Indemnified Parties,” and each a “Placement Agent Indemnified Party”) against any loss, claim, damage, expense
or liability whatsoever (or any action, investigation or proceeding in respect thereof), joint or several, to which such Placement Agent
Indemnified Party may become subject, under the Securities Act or otherwise, insofar as such loss, claim, damage, expense, liability,
action, investigation or proceeding arises out of or is based upon (A) any untrue statement or alleged untrue statement of a material
fact contained in any Issuer Free Writing Prospectus, any “issuer information” filed or required to be filed pursuant to Rule
433(d) of the Rules and Regulations, any Registration Statement or the Prospectus, or in any amendment or supplement thereto or document
incorporated by reference therein, (B) the omission or alleged omission to state in any Issuer Free Writing Prospectus, any “issuer
information” filed or required to be filed pursuant to Rule 433(d) of the Rules and Regulations, any Registration Statement or the
Prospectus, or in any amendment or supplement thereto or document incorporated by reference therein, a material fact required to be stated
therein or necessary to make the statements therein not misleading, or (C) any breach of the representations and warranties of the Company
contained herein or failure of the Company to perform its obligations hereunder or pursuant to any law, and shall reimburse the Placement
Agent Indemnified Party promptly upon demand for any legal fees or other expenses reasonably incurred by such Placement Agent Indemnified
Party in connection with investigating, or preparing to defend, or defending against, or appearing as a third party witness in respect
of, or otherwise incurred in connection with, any such loss, claim, damage, expense, liability, action, investigation or proceeding, as
such fees and expenses are incurred; provided, however, that the Company shall not be liable in any such case to the extent that
any such loss, claim, damage, expense or liability arises out of or is based upon an untrue statement or alleged untrue statement in,
or omission or alleged omission from, any Registration Statement or the Prospectus, or any such amendment or supplement thereto, or any
Issuer Free Writing Prospectus made in reliance upon and in conformity with written information furnished to the Company by or on behalf
of the Placement Agent specifically for use therein, which information the parties hereto agree is limited to the Placement Agent’s
Information. This indemnity agreement is not exclusive and will be in addition to any liability, which the Company may otherwise have
and shall not limit any rights or remedies which may otherwise be available at law or in equity to each Placement Agent Indemnified Party.

 

(b) The
Placement Agent shall indemnify and hold harmless the Company and its directors, its officers who signed the Registration Statement and
each person, if any, who controls the Company within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act
(collectively the “Company Indemnified Parties” and each a “Company Indemnified Party”) against
any loss, claim, damage, expense or liability whatsoever (or any action, investigation or proceeding in respect thereof), joint or several,
to which such Company Indemnified Party may become subject, under the Securities Act or otherwise, insofar as such loss, claim, damage,
expense, liability, action, investigation or proceeding arises out of or is based upon (i) any untrue statement or alleged untrue statement
of a material fact contained in any Issuer Free Writing Prospectus, any “issuer information” filed or required to be filed
pursuant to Rule 433(d) of the Rules and Regulations, any Registration Statement or the Prospectus, or in any amendment or supplement
thereto, or (ii) the omission or alleged omission to state in any Issuer Free Writing Prospectus, any “issuer information”
filed or required to be filed pursuant to Rule 433(d) of the Rules and Regulations, any Registration Statement or the Prospectus, or in
any amendment or supplement thereto, a material fact required to be stated therein or necessary to make the statements therein not misleading,
but in each case only to the extent that the untrue statement or alleged untrue statement or omission or alleged omission was made in
reliance upon and in conformity with written information furnished to the Company by or on behalf of the Placement Agent specifically
for use therein, which information the parties hereto agree is limited to the Placement Agent’s Information, and shall reimburse
the Company Indemnified Parties for any legal or other expenses reasonably incurred by such party in connection with investigating or
preparing to defend or defending against or appearing as third party witness in connection with any such loss, claim, damage, liability,
action, investigation or proceeding, as such fees and expenses are incurred. This indemnity agreement is not exclusive and will be in
addition to any liability which the Placement Agent might otherwise have and shall not limit any rights or remedies which may otherwise
be available under this Agreement, at law or in equity to the Company Indemnified Parties. Notwithstanding the provisions of this Section
8(b), in no event shall any indemnity by the Placement Agent under this Section 8(b) exceed the total compensation received
by such Placement Agent in accordance with Section 2(e).

 

    16

     

    

 

(c) Promptly
after receipt by an indemnified party under this Section 8 of notice of the commencement of any action, the indemnified party shall,
if a claim in respect thereof is to be made against an indemnifying party under this Section 8, notify such indemnifying party
in writing of the commencement of that action; provided, however, that the failure to notify the indemnifying party shall not relieve
it from any liability which it may have under this Section 8 except to the extent it has been materially prejudiced by such failure;
and, provided, further, that the failure to notify an indemnifying party shall not relieve it from any liability which it may have
to an indemnified party otherwise than under this Section 8. If any such action shall be brought against an indemnified party,
and it shall notify the indemnifying party thereof, the indemnifying party shall be entitled to participate therein and, to the extent
that it wishes, jointly with any other similarly notified indemnifying party, to assume the defense of such action with counsel reasonably
satisfactory to the indemnified party (which counsel shall not, except with the written consent of the indemnified party, be counsel to
the indemnifying party). After notice from the indemnifying party to the indemnified party of its election to assume the defense of such
action, except as provided herein, the indemnifying party shall not be liable to the indemnified party under Section 8 for any
legal or other expenses subsequently incurred by the indemnified party in connection with the defense of such action other than reasonable
costs of investigation; provided, however, that any indemnified party shall have the right to employ separate counsel in any such
action and to participate in the defense of such action but the fees and expenses of such counsel (other than reasonable costs of investigation
which shall remain the expense of the Company) shall be at the expense of such indemnified party unless (i) in the case of a Placement
Agent Indemnified Party, the employment thereof has been specifically authorized in writing by the Company in the case of a claim for
indemnification under Section 8(a) or Section 2(f), or (ii) such indemnified party shall have been advised by its counsel
that there may be one or more legal defenses available to it which are different from or additional to those available to the indemnifying
party, or (iii) the indemnifying party has failed to assume the defense of such action and employ counsel reasonably satisfactory to the
indemnified party within a reasonable period of time after notice of the commencement of the action or the indemnifying party does not
diligently defend the action after assumption of the defense, in which case, if such indemnified party notifies the indemnifying party
in writing that it elects to employ separate counsel at the expense of the indemnifying party, the indemnifying party shall not have the
right to assume the defense of (or, in the case of a failure to diligently defend the action after assumption of the defense, to continue
to defend) such action on behalf of such indemnified party and the indemnifying party shall be responsible for legal or other expenses
subsequently incurred by such indemnified party in connection with the defense of such action; provided, however, that the indemnifying
party shall not, in connection with any one such action or separate but substantially similar or related actions in the same jurisdiction
arising out of the same general allegations or circumstances, be liable for the reasonable fees and expenses of more than one separate
firm of attorneys at any time for all such indemnified parties (in addition to any local counsel), which firm shall be designated in writing
by the Placement Agent if the indemnified parties under this Section 8 consist of any Placement Agent Indemnified Party or by the
Company if the indemnified parties under this Section 8 consist of any Company Indemnified Parties. Subject to this Section
8(c), the amount payable by an indemnifying party under Section 8 shall include, but not be limited to, (x) reasonable legal
fees and expenses of counsel to the indemnified party and any other expenses in investigating, or preparing to defend or defending against,
or appearing as a third party witness in respect of, or otherwise incurred in connection with, any action, investigation, proceeding or
claim, and (y) all amounts paid in settlement of any of the foregoing. No indemnifying party shall, without the prior written consent
of the indemnified parties, settle or compromise or consent to the entry of judgment with respect to any pending or threatened action
or any claim whatsoever, in respect of which indemnification or contribution could be sought under this Section 8 (whether or not
the indemnified parties are actual or potential parties thereto), unless such settlement, compromise or consent (i) includes an unconditional
release of each indemnified party in form and substance reasonably satisfactory to such indemnified party from all liability arising out
of such action or claim and (ii) does not include a statement as to or an admission of fault, culpability or a failure to act by or on
behalf of any indemnified party. Subject to the provisions of the following sentence, no indemnifying party shall be liable for settlement
of any pending or threatened action or any claim whatsoever that is effected without its written consent (which consent shall not be unreasonably
withheld or delayed), but if settled with its written consent, or if its consent has been unreasonably withheld or delayed, or if there
be a judgment for the plaintiff in any such matter, the indemnifying party agrees to indemnify and hold harmless any indemnified party
from and against any loss or liability by reason of such settlement or judgment. In addition, if at any time an indemnified party shall
have requested that an indemnifying party reimburse the indemnified party for reasonable fees and expenses of counsel, such indemnifying
party agrees that it shall be liable for any settlement of the nature contemplated herein effected without its written consent if (i)
such settlement is entered into more than forty-five (45) days after receipt by such indemnifying party of the request for reimbursement,
(ii) such indemnifying party shall have received notice of the terms of such settlement at least thirty (30) days prior to such settlement
being entered into and (iii) such indemnifying party shall not have reimbursed such indemnified party in accordance with such request
prior to the date of such settlement.

 

    17

     

    

 

(d) If
the indemnification provided for in this Section 8 is unavailable or insufficient to hold harmless an indemnified party under Section
8(a) or Section 8(b), then each indemnifying party shall, in lieu of indemnifying such indemnified party, contribute to the
amount paid, payable or otherwise incurred by such indemnified party as a result of such loss, claim, damage, expense or liability (or
any action, investigation or proceeding in respect thereof), as incurred, (i) in such proportion as shall be appropriate to reflect the
relative benefits received by the Company on the one hand and the Placement Agent on the other hand from the Offering of the Shares, or
(ii) if the allocation provided by clause (i) of this Section 8(d) is not permitted by applicable law, in such proportion as is
appropriate to reflect not only the relative benefits referred to in clause (i) of this Section 8(d) but also the relative fault
of the Company on the one hand and the Placement Agent on the other with respect to the statements, omissions, acts or failures to act
which resulted in such loss, claim, damage, expense or liability (or any action, investigation or proceeding in respect thereof) as well
as any other relevant equitable considerations. The relative benefits received by the Company on the one hand and the Placement Agent
on the other with respect to such Offering shall be deemed to be in the same proportion as the total net proceeds from the Offering of
the Shares purchased under this Agreement (before deducting expenses) received by the Company bear to the total compensation received
by the Placement Agent in connection with the Offering, in each case as set forth in the table on the cover page of the Prospectus. The
relative fault of the Company on the one hand and the Placement Agent on the other shall be determined by reference to, among other things,
whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates
to information supplied by the Company on the one hand or the Placement Agent on the other, the intent of the parties and their relative
knowledge, access to information and opportunity to correct or prevent such untrue statement, omission, act or failure to act; provided
that the parties hereto agree that the written information furnished to the Company by or on behalf of the Placement Agent for use in
any Registration Statement or the Prospectus, or in any amendment or supplement thereto, consists solely of the Placement Agent’s
Information. The Company and the Placement Agent agree that it would not be just and equitable if contributions pursuant to this Section
8(d) were to be determined by pro rata allocation or by any other method of allocation that does not take into account the equitable
considerations referred to herein. The amount paid or payable by an indemnified party as a result of the loss, claim, damage, expense,
liability, action, investigation or proceeding referred to above in this Section 8(d) shall be deemed to include, for purposes
of this Section 8(d), any legal or other expenses reasonably incurred by such indemnified party in connection with investigating,
preparing to defend or defending against or appearing as a third party witness in respect of, or otherwise incurred in connection with,
any such loss, claim, damage, expense, liability, action, investigation or proceeding. Notwithstanding the provisions of this Section
8(d), the Placement Agent shall not be required to contribute any amount in excess of the total compensation received by the Placement
Agent in accordance with Section 2(e) less the amount of any damages which the Placement Agent has otherwise paid or become liable
to pay by reason of any untrue or alleged untrue statement, omission or alleged omission, act or alleged act or failure to act or alleged
failure to act. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be
entitled to contribution from any person who was not guilty of such fraudulent misrepresentation.

 

9. Termination.
The obligations of the Placement Agent and the Purchasers hereunder may be terminated by the Placement Agent, in its absolute discretion
by notice given to the Company prior to delivery of and payment for the Shares if, prior to that time, any of the events described in
Section 7(f), Section 7(g) or Section 7(h) have occurred or if the Purchasers shall decline to purchase the Shares
for any reason permitted under this Agreement.

 

    18

     

    

 

10. Absence
of Fiduciary Relationship. The Company acknowledges and agrees that:

 

(a) the
Placement Agent’s responsibility to the Company is solely contractual in nature, the Placement Agent has been retained solely to
act as placement agent in connection with the Offering and no fiduciary, advisory or agency relationship between the Company and the Placement
Agent has been created in respect of any of the transactions contemplated by this Agreement, irrespective of whether the Placement Agent
has advised or is advising the Company on other matters;

 

(b) the
price of the Shares set forth in this Agreement was established by the Company following discussions and arms-length negotiations with
the Placement Agent, and the Company is capable of evaluating and understanding, and understands and accepts, the terms, risks and conditions
of the transactions contemplated by this Agreement;

 

(c) it
has been advised that the Placement Agent and its affiliates are engaged in a broad range of transactions which may involve interests
that differ from those of the Company and that the Placement Agent has no obligation to disclose such interests and transactions to the
Company by virtue of any fiduciary, advisory or agency relationship; and

 

(d) it
waives, to the fullest extent permitted by law, any claims it may have against the Placement Agent for breach of fiduciary duty or alleged
breach of fiduciary duty and agrees that the Placement Agent shall have no liability (whether direct or indirect) to the Company in respect
of such a fiduciary duty claim or to any person asserting a fiduciary duty claim on behalf of or in right of the Company, including stockholders,
employees or creditors of the Company.

 

11. Successors;
Persons Entitled to Benefit of Agreement. This Agreement shall inure to the benefit of and be binding upon the Placement
Agent, the Company, and their respective successors and assigns. Nothing expressed or mentioned in this Agreement is intended or shall
be construed to give any person, other than the persons mentioned in the preceding sentence, any legal or equitable right, remedy or claim
under or in respect of this Agreement, or any provisions herein contained, this Agreement and all conditions and provisions hereof being
intended to be and being for the sole and exclusive benefit of such persons and for the benefit of no other person; except that the representations,
warranties, covenants, agreements and indemnities of the Company contained in this Agreement shall also be for the benefit of the Placement
Agent Indemnified Parties and the indemnities of the Placement Agent shall be for the benefit of the Company Indemnified Parties.

 

12. Survival
of Indemnities, Representations, Warranties, Etc. The respective indemnities, covenants, agreements, representations, warranties
and other statements of the Company and the Placement Agent, as set forth in this Agreement or made by them respectively, pursuant to
this Agreement, shall remain in full force and effect, regardless of any investigation made by or on behalf of the Placement Agent, the
Company, the Purchasers or any person controlling any of them and shall survive delivery of and payment for the Shares. Notwithstanding
any termination of this Agreement, including without limitation any termination pursuant to Section 9, the indemnity and contribution
agreements contained in Section 8 and the covenants, representations, warranties set forth in this Agreement shall not terminate
and shall remain in full force and effect at all times.

 

    19

     

    

 

13. Notices.
All statements, requests, notices and agreements hereunder shall be in writing, and:

 

(a) if
to the Placement Agent, shall be delivered or sent by mail, facsimile transmission, overnight courier or email to B. Riley Securities,
Attention:

 

B. Riley Securities, Inc.

299 Park Avenue, 7th Floor

New York, NY 10171

Attention: General Counsel

Telephone: (212) 457-9947

 

with a copy (which shall not constitute notice)
to:

 

Morgan, Lewis & Bockius LLP

1400 Page Mill Road

Palo Alto, CA 94304

Attention: Albert Lung

Telephone: (650) 843-7263

Email: albert.lung@morganlewis.com

 

(b) if to the Company,
shall be delivered or sent by mail, facsimile transmission, overnight courier or email to:

 

Cadiz Inc.

550 South Hope Street, Suite 2850

Los Angeles, CA 90071

Attention: Chief Financial Officer

Telephone: (213) 271-1600

Email: SSpeer@cadizinc.com

 

with a copy (which shall not constitute notice) to:

 

Greenberg Traurig, LLP

1840 Century Park East, Suite 1900

Los Angeles, CA 90067-2121

Attention: Kevin Friedmann

Telephone: (312) 456-1072

Email: friedmannk@gtlaw.com

 

14. Definition
of Certain Terms. For purposes of this Agreement “business day” means any day on which the NASDAQ Stock
Market is open for trading.

 

    20

     

    

 

15. Governing
Law, Agent for Service and Jurisdiction. This Agreement shall be governed by and construed in accordance with the laws of the
State of New York, including without limitation Section 5-1401 of the New York General Obligations Law. No legal proceeding may be commenced,
prosecuted or continued in any court other than the courts of the State of New York located in the City and County of New York or in the
United States District Court for the Southern District of New York, which courts shall have jurisdiction over the adjudication of such
matters, and the Company and the Placement Agent each hereby consent to the jurisdiction of such courts and personal service with respect
thereto. The Company and the Placement Agent each hereby consent to personal jurisdiction, service and venue in any court in which any
legal proceeding arising out of or in any way relating to this Agreement is brought by any third party against the Company or the Placement
Agent. The Company and the Placement Agent each hereby waive all right to trial by jury in any legal proceeding (whether based upon contract,
tort or otherwise) in any way arising out of or relating to this Agreement. The Company agrees that a final judgment in any such legal
proceeding brought in any such court shall be conclusive and binding upon the Company and the Placement Agent and may be enforced in any
other courts in the jurisdiction of which the Company is or may be subject, by suit upon such judgment.

 

16. Placement
Agent’s Information. The parties hereto acknowledge and agree that, for all purposes of this Agreement, the Placement
Agent’s Information consists solely of the following information in the Prospectus: the second sentence of the third paragraph
on the front cover of the Prospectus Supplement and the second and fourth sentences in the section entitled “Plan of Distribution.”

 

17. Partial
Unenforceability. The invalidity or unenforceability of any section, paragraph, clause or provision of this Agreement shall
not affect the validity or enforceability of any other section, paragraph, clause or provision hereof. If any section, paragraph, clause
or provision of this Agreement is for any reason determined to be invalid or unenforceable, there shall be deemed to be made such minor
changes (and only such minor changes) as are necessary to make it valid and enforceable.

 

18. General.
This Agreement constitutes the entire agreement of the parties to this Agreement and supersedes all prior written or oral and all
contemporaneous oral agreements, understandings and negotiations with respect to the subject matter hereof. In this Agreement, the masculine,
feminine and neuter genders and the singular and the plural include one another. The section headings in this Agreement are for the convenience
of the parties only and will not affect the construction or interpretation of this Agreement. This Agreement may be amended or modified,
and the observance of any term of this Agreement may be waived, only by a writing signed by the Company and the Placement Agent.

 

19. Counterparts.
This Agreement may be signed in any number of counterparts, each of which shall be an original, with the same effect as if the signatures
thereto and hereto were upon the same instrument and such signatures may be delivered by facsimile.

 

    21

     

    

 

If the foregoing is in accordance with your understanding
of the agreement between the Company and the Placement Agent, kindly indicate your acceptance in the space provided for that purpose below.

 

	 	Very truly yours,
	 	 	 
	 	CADIZ INC.
	 	 	 
	 	By:	/s/ Stanley Speer
	 	Name:	Stanley Speer
	 	Title:	Chief Financial Officer
	 	 	 
	 	ACCEPTED as of the date first-above written:
	 	 
	 	B. RILEY SECURITIES, INC.
	 	 	 
	 	By:	/s/ Patrice McNicoll
	 	Name:	Patrice McNicoll
	 	Title:	 Co-Head of Investment Banking

 

 

22Exhibit
10.1

 

Equity
Transfer Agreement

 

Transferor
(Party A):

Lin
Quanzhong

ID
Card No.: 413022197810170415

Contact
No.: 13730829210

 

Ting
Li

ID
Card No.: 511324198710301081

Contact
No.: 13541289929

 

Xiao
Ling Li

ID
Card No.: 511023197106020163

Contact
No.: 17396269535

 

Transferee
(Party B):

HK
Aixin International Group Co., Limited

Company
No.: 2342435

 

WHEREAS:

 

1.
Nine pharmacies including Chengdu Aixintang Pharmacy Co., Ltd. (as detailed in the Appendix) are limited liability companies and branches
(hereinafter collectively referred to as the “Company”) that are legally registered and validly existing in Chengdu, Mianyang
and other cities of Sichuan Province, and the business scope covers pharmaceutical retail; sales of pre-packaged food and bulk food,
health food, dairy products, daily necessities, cosmetics, electronic products, disinfection supplies, class-I, and class-II medical
equipment; nutrition and health consultation (excluding treatment and diagnosis). Legal representative: Lin Quanzhong.

 

    	 

     

    

 

The
total registered capital of the nine pharmacies in question is RMB 21.25 million.

 

2.
The Equity Transfer Agreement is hereby made and concluded by and between the Transferor and the Transferee on the basis of equality,
voluntariness, mutual benefit and reciprocity upon amicable consultation. The Parties hereto agree that Party A shall transfer 100% of
their equity of the nine pharmacies including Chengdu Aixintang Pharmacy Co., Ltd. to Party B. Each of the Transferors owns the percentage
of the equity of the nine pahramacies as indicated on the Appendix.

 

Article
I Transfer of Equity

 

1.1
Subject matter

 

Party
A shall transfer 100% of the equity that they own in the Company to Party B and Party B agrees to accept such equity in question.

 

1.2
Transfer price, payment method and payment teen:

 

Based
on the asset appraisal report CZYXZPB (2021) No. G01-01 issued by Sichuan Zhengyuanxin Real Estate, Land and Assets Appraisal Co., Ltd.
on January 12, 2021, the appraised value of such nine phairnacies including Chengdu Aixintang Pharmacy Co., Ltd. as are owned by Party
A is RMB 34,635,845.45, and Party A and Party B agree with the transfer at RMB 34,635,845.45 (in words RMB thirty four million six hundred
and thirty five thousand eight hundred and forty five yuan forty five cents)subject to adjustment as provided in this Agreement. The
RMB 34,635,845.45 is referred to as the “Transfer Price.”

 

    	 

     

    

 

Party
A and Party B agree that the aforesaid transfer price shall be converted into USD 5,308,256.90 (in words USD five million three hundred
and eight thousand two hundred and fifty six yuan and ninety cents) pursuant to the intermediate exchange rate of RMB against USD at
6.5249 yuan per dollar on December 31, 2020.

 

The
Transfer Price shall be reduced by an amount equal to any amounts paid or distributed by the Company to Party A after December 31, 2020
and will be increased by an amount equal to any amounts contributed to the Company to Party A after December 31, 2020. The Transfer Price,
as adjusted in accordance with thuis provision is referred to as trhe “Adjusted Transfer Price.”

 

Payment
method: in currency

 

Payment
term: Party B shall pay the transfer price in full to Party A within three working days upon the completion of the registration of industrial
and commercial change of equity. Party A shall issue a bill to Party B within five working days upon receipt of the payment in full made
by Party B and deliver the bill in question to Party B.

 

1.3
Party B shall be a shareholder after the Agreement comes into force and Party B pays the consideration for the transfer of equity as
agreed herein.

 

1.4
After the Agreement comes into force upon signature by Party B as agreed herein, Party B shall immediately go through the registration
formalities related to the alteration of shareholders and equity and modifications to Articles of Association of the Company in accordance
with the law. Party A shall actively assist or cooperate with Party B and Party B shall bear the expenses incurred in such alteration
registration.

 

Article
II Undertakings and Warranties of Party A

 

2.1
The equity transferred by Party A to Party B is the Company’s real investment and is legally owned by Party A, and Party A has
the full right to dispose of the equity in question.

 

    	 

     

    

 

2.2
Party A has obtained full authorization from shareholders of the Company to make warranties and guarantees set forth herein.

 

2.3
Prior to the date of equity transfer, Party A has not entered into any form of legal documents with any third party, or conducted any
disposal to the subject matter hereof in any form by any other legally permitted means, including but not limited to transfer, pledge,
entrusted management, or assignment of the rights attached to the subject matter hereof in full or in part. Otherwise, Party A shall
indemnify and hold harmless the Company from and against any loss or damage resulting from such false guarantee after equity transfer.

 

2.4
Prior to the date of equity transfer, the Company has, in accordance with the national tax policies and rules and regulations, according
to the fact, apply for and issue an invoice, make a tax declaration on time and pay the tax payable in full, and has never violated the
tax policies and rules and regulations such as making false invoices or buying and selling invoices. Otherwise, Party A shall indemnify
and hold harmless the Company from and against any loss or damage resulting from such false guarantee after equity transfer.

 

2.5
Prior to the date of equity transfer, the Company has no litigation that has occurred but has not been sentenced, no pending litigation
that has been sentenced but has not been executed or is being executed, no potential litigation that is about to occur, and no tax penalties
(including national tax and local tax) or no tax (including national tax, local tax) penalty or tax arrears that have not been settled.
Otherwise, Party A shall indemnify and hold harmless the Company from and against any loss or damage resulting from such false guarantee
after equity transfer.

 

    	 

     

    

 

2.6
Prior to the date of equity transfer, all the checks, bank acceptance bills and commercial acceptance bills issued by the Company have
been honored. After the date of equity transfer, the Company will not receive the checks, bank acceptance bills or commercial acceptance
bills issued prior to the date of equity transfer required to be honored. Otherwise, Party A shall indemnify and hold harmless the Company
from and against any loss or damage resulting from such false guarantee after equity transfer.

 

2.7
Prior to the date of equity transfer, the Company has settled the labor remuneration (salary) and social insurance relationship with
all employees. After the date of equity transfer, the Company will not be subject to labor disputes, remuneration disputes and social
insurance penalties from former employees. Otherwise, Party A shall indemnify and hold harmless the Company from and against any loss
or damage resulting from such false guarantee after equity transfer.

 

Article
III Undertakings and Warranties of Party B

 

3.1
Party B is eligible for the subject matter of the assignment agreement stipulated by law before the registration of equity change, and
the normal conduct of legal proceedings for equity transfer will not be affected by the constraints of Party B’s own conditions.

 

3.2
Party B has sufficient financial capacity to acquire the subject matter hereof and undertakes to pay the equity transfer price in time
as agreed herein.

 

3.3
Party B shall by no means conduct business activities or sign any contract by using any certificate of the Company during the period
from the effective date hereof to the date of equity transfer. Otherwise, Party B shall indemnify and hold harmless the Company from
and against any loss or damage resulting from such false guarantee.

 

    	 

     

    

 

3.4
Party B shall by no means use any and all certificates and documents (including but not limited to the Business License, Tax Registration
Certificate, Organization Code Certificate and Card of Code, Credit Card, Account Opening Permit, etc.), seals and original company documents
(including but not limited to the Company’s Articles of Association, lease contract, capital verification report and audit reports,
accounting books, accounting vouchers, tax returns, blank checks, blank invoices of the previous years, etc.) obtained from Party A for
any activity other than the matter of Company change. Otherwise, Party B shall indemnify and hold harmless the Company from and against
any loss or damage resulting from such false guarantee.

 

Article
IV Rights and Obligations of the Parties

 

4.1
As from the effective date hereof, Party A no longer retains100% ownership of the equity and no longer enjoys any rights or assumes any
obligations to partial equity. Party B shall, in accordance with the provisions of relevant laws and the Articles of Association, enjoy
the rights and assume the corresponding obligations in proportion to the assigned equity.

 

4.2
Within three days upon the execution date hereof, Party A shall be responsible for the convening the meetings of shareholders and the
Board of Directors, ensure that the shareholders’ meeting approves the equity transfer, and sign relevant agreements or draft amendments
with respect to the amendment to the Articles of Association of the Company.

 

4.3
Within three days upon the execution date hereof, Party A and Party B shall jointly complete the reorganization of the meetings of shareholders
and the Board of Directors, and finalize all legal documents relating to the transfer of equity.

 

4.4
Within 15 days upon the completion of all legal documents for the equity transfer in accordance with Article 4.3 hereof, Party A shall
assist Party B to register the change with the relevant authorities in accordance with Chinese laws and regulations.

 

    	 

     

    

 

Article
V Division of Creditor’s Rights and Debts before Change of the Company

 

5.1
The actual or potential creditor’s rights and debts of the Company prior to the date of equity transfer shall be owned and undertaken
by Party A. After the transfer, Party A shall independently assume the liability for litigations or losses of the Company caused by the
actual or potential debts prior to the date of equity transfer.

 

5.2
The creditor’s rights and debts incurred after the date of equity transfer shall be enjoyed and assumed by all shareholders of
the Company after the change.

 

Article
VI Allocation of Profits and Losses

 

Party
B shall get the benefit of all profits and absorb the losses generated after December 31, 2020.

 

Article
VII Undertaking of Equity Transfer Fees and Procedures for Equity Transfer

 

The
costs and expenses incurred in the equity transfer shall be borne by the Company after such change, and the taxes incurred in the equity
transfer shall be borne by Party A.

 

Article
VIII Modification and Termination of the Agreement

 

The
Agreement may be modified or terminated in the course of equity transfer under the following circumstances, provided that a written agreement
regarding such modification or termination has been signed by the Parties:

 

8.1
The Agreement cannot be performed due to force majeure or any external factor which cannot be prevented by either Party and is not the
fault of either Party.

 

8.2
Either Party loses the demonstrated capability to perform the Agreement.

 

8.3
The breach by a Party materially affects the economic interests of the other Party and causes the performance of the Agreement unnecessary.

 

    	 

     

    

 

8.4.
The modification or termination of the Agreement is agreed upon by the Parties due to change of circumstance.

 

Article
IX Liability for Breach of the Agreement

 

9.1
In the event that Party A fails to perform the relevant obligations of equity transfer, Party A shall pay 20% of the equity transfer
price to Party B as compensation, and Party B may unilaterally terminate the Agreement.

 

9.2
In the event that Party B fails to make the payment within the prescribed time, Party B shall pay 3%0 of the equity transfer price to
Party A as liquidated damages for each day of delay, and Party A may unilaterally terminate the Agreement.

 

Article
X Dispute Resolution

 

Any
dispute arising out of or in connection with the Agreement shall be resolved by the Parties hereto through consultation first. If no
agreement can be reached through such consultation, the dispute shall be submitted to the competent people’s court at the place
where Party A is located.

 

Article
XI Entry-into-force Conditions and Date

 

The
Agreement shall come into force upon signature (or corporate seal) by the Parties. Article XII Miscellaneous

 

The
Agreement is made out in two originals, with each Party holding one copy and each copy being equally authentic.

 

    	 

     

    

 

	Party
    A:	 	Party
    B:
	 	 	 
	 	 	Aixin
    Life International, Inc.
	 	 	 
	/s/
    Quanzhong Lin	 	By:
    	/s/
    Yao- Te Wang
	Quanzhong
    Lin	 	 	Yao-Te
    Wang
	 	 	 	An
    Authorized Person
	 	 	 	 
	/s/
    Ting Li	 	 	 
	Ting
    Li	 	 	 
	 	 	 	 
	/s/
    Xiao Ling Li	 	 	 
	 	 	 	 
	Date:
    June 2, 2021	 	 	Date:
    June 2, 2021

 

    	 

     

    

 

Appendixes:

 

	Pharmacy
    Name	 	Address	 	Taxpayer
    

    Identification 

    Number	 	Date
    of 

    Incorporation
	Chengdu
    Aixintang Pharmacy 

    Co., Ltd. Jianyang Branch	 	Room
    4, 1/F, Building 3, 

    (Haishang Huayuan), No. 17 

    Gongyuanhou Street, Jiancheng 

    Town, Jianyang City	 	91512081MA62K4JBOB	 	2016-7-27
	Chengdu
    Aixintang Pharmacy 

    Co., Ltd. Mianyang Branch	 	No.
    68 East Section of Linyuan 

    Road, Fucheng District, 

    Mianyang City	 	91510703MA6249H20Q	 	2016-5-20
	Chengdu
    Aixintang Liucheng 

    Pharmacy Co., Ltd.	 	No.
    99 East Section of 

    Liucheng Avenue, Wenjiang 

    District, Chengdu City	 	91510115MA61W48481	 	2016-6-7
	Chengdu
    Aixintang Pharmacy 

    Co., Ltd. Xinjin Branch	 	No.
    F1-4, No. 69 Zhengdong 

    Street, Wujin Town, Xinjin 

    County	 	91510132MA61UXX022	 	2016-5-26
	Chengdu
    Aixintang Pharmacy 

    Co., Ltd.	 	No.
    9, 1/F, Building 5, Hongxing International, No. 9 Qingyun West Street, Jinjiang

    District,
    Chengdu City
	 	91510104MA61TNCJ15	 	2016-3-4
	Qionglai
    Weide Pharmacy	 	No.
    40 Yudai Street, Linqiong 

    Town, Qionglai City	 	925101831544539720	 	2018-3-8
	Chengdu
    Wenjiang Aixinhui 

    Pharmacy Co., Ltd.	 	No.
    301 Linquan North Street,

    Wenjiang District, Chengdu

    City
	 	92510115MA6DBTK815	 	2019-2-27
	Chengdu
    Beibang Pharmacy 

    Co., Ltd.	 	No.
    F55, No. 6 Xingyuan 3rd 

    Road, Wujin Town, Xinjin 

    County, Chengdu City	 	91510132MA6A1FJC2Q	 	2019-3-12
	Chengdu
    Xindu District Cundetang Pharmacy Co., Ltd.	 	No.
    F54, No. 99 Pihe East 

    Road, Xindu Street, Xindu 

    District, Chengdu City	 	91510114L711644191	 	2018-7-13

 

    	 

     

    

 

	Store
    Name	 	Percentage
    of Equity
	Chengdu
    Aixintang Pharmacy Co., Ltd., Jiangyang Branch	 	Quanzhong
    Lin 100%
	Chengdu
    Aixintang Pharmacy Co., Ltd., Mianyang Branch	 	Quanzhong
    Lin 100%
	Chengdu
    Aixintang LiuCheng Pharmacy Co., Ltd.,	 	Quanzhong
    Lin 95%

    Ting
    Li 5%

	Chengdu
    Aixintang Pharmacy Co., Ltd., Xinjin Branch	 	Quanzhong
    Lin 100%
	Chengdu
    Aixintang Pharmacy Co., Ltd.	 	Quanzhong
    Lin 95%

    Ting
    Li 5%

	 

    Qiaonglai
    Weide Pharmacy

     
	 	 Quanzhong
    Lin 100%
	Chengdu
    Wenjiang aixinhui Pharmacy Co., Ltd.	 	Quanzhong
    Lin 80%

    Xiao
    Ling Li 20%

	Chengdu
    Beibang Pharmacy Co., Ltd.	 	Quanzhong
    Lin 97.5%

    Ting
    Li 2.5%

	Chengdu
    Xindu cundetang Pharmacy Co., Ltd.	 	Quanzhong
    Lin 90%

    Xiao
    Ling Li 10%

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00328-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00328-of-00352.parquet"}]]