Item 1.01
Entry into a Material Definitive Agreement
Suburban Water Systems (“Suburban”) has executed an Option Agreement with Cadiz Inc. to acquire conserved water and related storage capacity in the Cadiz Water Conservation & Storage Project (“Project”). The agreement, which was executed on October 4, 2010, commits funds to the environmental review and also provides Suburban with options to acquire both a firm annual supply of water conserved by the Project and storage rights in the Project once the environmental review is complete. Pursuant to the agreement, Suburban has the right to acquire an annual supply of 5,000 acre-feet of water at a pre-determined formula competitive with its incremental cost of new water. The pricing for storage, also set out in the agreement, is based on volume and class of delivery acquired. A copy of the agreement is attached hereto as Exhibit 10.1, and is hereby incorporated by reference.