Document:

exv10w19

Exhibit 10.19

CONTINUING GUARANTY

TO: WELLS FARGO BANK, NATIONAL ASSOCIATION

     1. GUARANTY; DEFINITIONS. In consideration of any credit or other financial accommodation
heretofore, now or hereafter extended or made to GLOBAL WATER RESOURCES LLC, a Delaware limited
liability company, GLOBAL WATER MANAGEMENT, LLC, a Delaware limited liability company and GLOBAL
WATER RESOURCES, INC., a Delaware corporation (“Borrowers”), or any of them, by WELLS FARGO BANK,
NATIONAL ASSOCIATION (“Bank”), and for other valuable consideration, the undersigned WILLIAM S.
LEVINE, a married man dealing with his sole and separate property (“Guarantor”), jointly and
severally unconditionally guarantees and promises to pay to Bank, or order, on demand in lawful
money of the United States of America and in immediately available funds, any and all Indebtedness
of any of the Borrowers to Bank. The term “Indebtedness” is used herein in its most comprehensive
sense and includes any and all advances, debts, obligations and liabilities of Borrowers, or any of
them, heretofore, now or hereafter made, incurred or created, whether voluntary or involuntary and
however arising, whether due or not due, absolute or contingent, liquidated or unliquidated,
determined or undetermined, and whether Borrowers may be liable individually or jointly with
others, or whether recovery upon such Indebtedness may be or hereafter becomes unenforceable.

     2. SUCCESSIVE TRANSACTIONS; REVOCATION; OBLIGATION UNDER OTHER GUARANTIES. This is a
continuing guaranty and all rights, powers and remedies hereunder shall apply to all past, present
and future Indebtedness of each of the Borrowers to Bank, including that arising under successive
transactions which shall either continue the Indebtedness, increase or decrease it, or from time
to time create new Indebtedness after all or any prior Indebtedness has been satisfied, and
notwithstanding the death, incapacity, dissolution, liquidation or bankruptcy of any of the
Borrowers or Guarantor or any other event or proceeding affecting any of the Borrowers or
Guarantor. This Guaranty shall not apply to any new Indebtedness created after actual receipt by
Bank of written notice of its revocation as to such new Indebtedness; provided however, that loans
or advances made by Bank to any of the Borrowers after revocation under commitments existing prior
to receipt by Bank of such revocation, and extensions, renewals or modifications, of any kind, of
Indebtedness incurred by any of the Borrowers or committed by Bank prior to receipt by Bank of
such revocation, shall not be considered new Indebtedness. Any such notice must be sent to Bank by
registered U.S. mail, postage prepaid, addressed to its office at 100 W. Washington, MAC
S4101-251, Phoenix, Arizona 85003, or at such other address as Bank shall from time to time
designate. Any payment by Guarantor shall not reduce Guarantor’s maximum obligation hereunder
unless written notice to that effect is actually received by Bank at or prior to the time of such
payment. The obligations of Guarantor hereunder shall be in addition to any obligations of
Guarantor under any other guaranties of any liabilities or obligations of any of the Borrowers or
any other persons heretofore or hereafter given to Bank unless said other guaranties are expressly
modified or revoked in writing; and this Guaranty shall not, unless expressly herein provided,
affect or invalidate any such other guaranties.

     3. OBLIGATIONS JOINT AND SEVERAL; SEPARATE ACTIONS; WAIVER OF STATUTE OF LIMITATIONS;
REINSTATEMENT OF LIABILITY. The obligations hereunder are joint and several and independent of the
obligations of Borrowers, and a separate action or actions may be brought and prosecuted against
Guarantor whether action is brought against any of the Borrowers or any other person, or whether
any of the Borrowers or any other person is joined in any such action or actions. Guarantor
acknowledges that this Guaranty is absolute and unconditional, there are no conditions precedent
to the effectiveness of this Guaranty, and this Guaranty is in full force and effect and is
binding on Guarantor as of the date written below, regardless of whether Bank obtains collateral
or any guaranties from others or takes any other action contemplated by Guarantor. Guarantor
waives the benefit of any statute of limitations affecting Guarantor’s liability hereunder or the
enforcement thereof, and Guarantor agrees that any payment of any Indebtedness or other act which
shall toll any statute of limitations applicable thereto shall similarly operate to toll such
statute of limitations applicable to Guarantor’s liability hereunder. The liability of Guarantor
hereunder shall be reinstated and revived and the rights of Bank shall continue if and to the
extent for any reason any amount at any time paid on

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account of any Indebtedness guaranteed hereby is rescinded or must otherwise be restored by Bank,
whether as a result of any proceedings in bankruptcy or reorganization or otherwise, all as though
such amount had not been paid. The determination as to whether any amount so paid must be rescinded
or restored shall be made by Bank in its sole discretion; provided however, that if Bank chooses to
contest any such matter at the request of Guarantor, Guarantor agrees to indemnify and hold Bank
harmless from and against all costs and expenses, including reasonable attorneys’ fees, expended or
incurred by Bank in connection therewith, including without limitation, in any litigation with
respect thereto.

     4. AUTHORIZATIONS TO BANK. Guarantor authorizes Bank either before or after revocation
hereof, without notice to or demand on Guarantor, and without affecting Guarantor’s liability
hereunder, from time to time to: (a) alter, compromise, renew, extend, accelerate or otherwise
change the time for payment of, or otherwise change the terms of the Indebtedness or any portion
thereof, including increase or decrease of the rate of interest thereon; (b) take and hold
security for the payment of this Guaranty or the Indebtedness or any portion thereof, and
exchange, enforce, waive, subordinate or release any such security; (c) apply such security and
direct the order or manner of sale thereof, including without limitation, a non-judicial sale
permitted by the terms of the controlling security agreement, mortgage or deed of trust, as Bank
in its discretion may determine; (d) release or substitute any one or more of the endorsers or any
other guarantors of the Indebtedness, or any portion thereof, or any other party thereto; and (e)
apply payments received by Bank from any of the Borrowers to any Indebtedness of any of the
Borrowers to Bank, in such order as Bank shall determine in its sole discretion, whether or not
such Indebtedness is covered by this Guaranty, and Guarantor hereby waives any provision of law
regarding application of payments which specifies otherwise. Bank may without notice assign this
Guaranty in whole or in part. Upon Bank’s request, Guarantor agrees to provide to Bank copies of
Guarantor’s financial statements.

     5. REPRESENTATIONS AND WARRANTIES. Guarantor represents and warrants to Bank that: (a) this
Guaranty is executed at Borrowers’ request; (b) Guarantor shall not, without Bank’s prior written
consent, sell, lease, assign, encumber, hypothecate, transfer or otherwise dispose of all or a
substantial or material part of Guarantor’s assets other than in the ordinary course of
Guarantor’s business; (c) Bank has made no representation to Guarantor as to the creditworthiness
of any of the Borrowers; and (d) Guarantor has established adequate means of obtaining from each
of the Borrowers on a continuing basis financial and other information pertaining to Borrowers’
financial condition. Guarantor agrees to keep adequately informed from such means of any facts,
events or circumstances which might in any way affect Guarantor’s risks hereunder, and Guarantor
further agrees that Bank shall have no obligation to disclose to Guarantor any information or
material about any of the Borrowers which is acquired by Bank in any manner.

     6. GUARANTOR’S WAIVERS.

     (a) Guarantor waives any right to require Bank to: (i) proceed against any of the Borrowers
or any other person; (ii) marshal assets or proceed against or exhaust any security held from any
of the Borrowers or any other person; (iii) give notice of the terms, time and place of any public
or private sale or other disposition of personal property security held from any of the Borrowers
or any other person; (iv) take any action or pursue any other remedy in Bank’s power; or (v) make
any presentment or demand for performance, or give any notice of nonperformance, protest, notice
of protest or notice of dishonor hereunder or in connection with any obligations or evidences of
indebtedness held by Bank as security for or which constitute in whole or in part the Indebtedness
guaranteed hereunder, or in connection with the creation of new or additional Indebtedness.

     (b) Guarantor waives any defense to its obligations hereunder based upon or arising by reason
of: (i) any disability or other defense of any of the Borrowers or any other person; (ii) the
cessation or limitation from any cause whatsoever, other than payment in full, of the Indebtedness
of any of the Borrowers or any other person; (iii) any lack of authority of any officer, director,
partner, agent or any other person acting or purporting to act on behalf of any of the Borrowers
which is a corporation, partnership or other type of entity, or any defect in the formation of any
such Borrower; (iv) the application by any of the Borrowers of the proceeds of any Indebtedness
for purposes other than the purposes represented by Borrowers to, or intended or understood by,
Bank or Guarantor; (v) any act or omission by

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Bank which directly or indirectly results in or aids the discharge of any of the Borrowers or any
portion of the Indebtedness by operation of law or otherwise, or which in any way impairs or
suspends any rights or remedies of Bank against any of the Borrowers; (vi) any impairment of the
value of any interest in any security for the Indebtedness or any portion thereof, including
without limitation, the failure to obtain or maintain perfection or recordation of any interest in
any such security, the release of any such security without substitution, and/or the failure to
preserve the value of, or to comply with applicable law in disposing of, any such security; (vii)
any modification of the Indebtedness, in any form whatsoever, including any modification made after
revocation hereof to any Indebtedness incurred prior to such revocation, and including without
limitation the renewal, extension, acceleration or other change in time for payment of, or other
change in the terms of, the Indebtedness or any portion thereof, including increase or decrease of
the rate of interest thereon; or (viii) any requirement that Bank give any notice of acceptance of
this Guaranty. Until all Indebtedness shall have been paid in full, Guarantor shall have no right
of subrogation, and Guarantor waives any right to enforce any remedy which Bank now has or may
hereafter have against any of the Borrowers or any other person, and waives any benefit of, or any
right to participate in, any security now or hereafter held by Bank.
Guarantor further waives all
rights and defenses Guarantor may have arising out of (A) any election of remedies by Bank, even
though that election of remedies, such as a non-judicial foreclosure with respect to any security
for any portion of the Indebtedness, destroys Guarantor’s rights of subrogation or Guarantor’s
rights to proceed against any of the Borrowers for reimbursement, or (B) any loss of rights
Guarantor may suffer by reason of any rights, powers or remedies of any of the Borrowers in
connection with any anti-deficiency laws or any other laws limiting, qualifying or discharging
Borrowers’ Indebtedness, whether by operation of law or otherwise, including any rights Guarantor
may have to a fair market value hearing to determine the size of a deficiency following any
foreclosure sate or other disposition of any real property security for any portion of the
Indebtedness, and Guarantor waives the benefits of A.R.S. §§12-1566, 12-1641 et seq., 33-814,
44-142 and Rule 17(F) of the Arizona Rules of Civil Procedure.

     7. BANK’S
RIGHTS WITH RESPECT TO GUARANTOR’S PROPERTY IN BANK’S POSSESSION. In addition to all
liens upon and rights of setoff against the monies, securities or other property of Guarantor
given to Bank by law, Bank shall have a lien upon and a right of setoff against all monies,
securities and other property of Guarantor now or hereafter in the possession of or on deposit
with Bank, whether held in a general or special account or deposit or for safekeeping or
otherwise, and every such lien and right of setoff may be exercised without demand upon or notice
to Guarantor. No lien or right of setoff shall be deemed to have been waived by any act or conduct
on the part of Bank, or by any neglect to exercise such right of setoff or to enforce such lien,
or by any delay in so doing, and every right of setoff and lien shall continue in full force and
effect until such right of setoff or lien is specifically waived or released by Bank in writing

     8. SUBORDINATION. Any Indebtedness of any of the Borrowers now or hereafter held by Guarantor
is hereby subordinated to the Indebtedness of Borrowers to Bank. Such Indebtedness of Borrowers to
Guarantor is assigned to Bank as security for this Guaranty and the Indebtedness and, if Bank
requests, shall be collected and received by Guarantor as trustee for Bank and paid over to Bank
on account of the Indebtedness of Borrowers to Bank but without reducing or affecting in any
manner the liability of Guarantor under the other provisions of this Guaranty. Any notes or other
instruments now or hereafter evidencing such Indebtedness of any of the Borrowers to Guarantor
shall be marked with a legend that the same are subject to this Guaranty and, if Bank so requests,
shall be delivered to Bank. Bank is hereby authorized in the name of Guarantor from time to time
to file financing statements and continuation statements and execute such other documents and take
such other action as Bank deems necessary or appropriate to perfect, preserve and enforce its
rights hereunder.

     9. REMEDIES; NO WAIVER. All rights, powers and remedies of Bank hereunder are cumulative. No
delay, failure or discontinuance of Bank in exercising any right, power or remedy hereunder shall
affect or operate as a waiver of such right, power or remedy; nor shall any single or partial
exercise of any such right, power or remedy preclude, waive or otherwise affect any other or
further exercise thereof or the exercise of any other right, power or remedy. Any waiver, permit,
consent or approval of any kind by Bank of any breach of this Guaranty, or any such waiver of any
provisions or conditions hereof, must be in writing and shall be effective only to the extent set
forth in writing.

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     10. COSTS, EXPENSES AND ATTORNEYS’ FEES. Guarantor shall pay to Bank immediately upon demand
the full amount of all payments, advances, charges, costs and expenses, including reasonable
attorneys’ fees (to include outside counsel fees and all allocated costs of Bank’s in-house
counsel), expended or incurred by Bank in connection with the enforcement of any of Bank’s rights,
powers or remedies and/or the collection of any amounts which become due to Bank under this
Guaranty, and the prosecution or defense of any action in any way related to this Guaranty, whether
incurred at the trial or appellate level, in an arbitration proceeding or otherwise, and including
any of the foregoing incurred in connection with any bankruptcy proceeding (including without
limitation, any adversary proceeding, contested matter or motion brought by Bank or any other
person) relating to Guarantor or any other person or entity. All of the foregoing shall be paid by
Guarantor with interest from the date of demand until paid in full at a rate per annum equal to the
greater of ten percent (10%) or Bank’s Prime Rate in effect from time to time.

     11. SUCCESSORS; ASSIGNMENT. This Guaranty shall be binding upon and inure to the benefit of
the heirs, executors, administrators, legal representatives, successors and assigns of the
parties; provided however, that Guarantor may not assign or transfer any of its interests or
rights hereunder without Bank’s prior written consent. Guarantor acknowledges that Bank has the
right to sell, assign, transfer, negotiate or grant participations in all or any part of, or any
interest in, any Indebtedness of Borrowers to Bank and any obligations with respect thereto,
including this Guaranty. In connection therewith, Bank may disclose all documents and information
which Bank now has or hereafter acquires relating to Guarantor and/or this Guaranty, whether
furnished by Borrowers, Guarantor or otherwise. Guarantor further agrees that Bank may disclose
such documents and information to Borrowers.

     12. AMENDMENT. This Guaranty may be amended or modified only in writing signed by Bank and
Guarantor.

     13. OBLIGATIONS OF MARRIED PERSONS. Guarantor hereby expressly agrees that recourse may be
had against Guarantor’s separate property for all of Guarantor’s obligations under this Guaranty.
Until such time as the obligations under this Guaranty are discharged in full, Guarantor shall not
transmute any separate property to community property or to the separate property of Guarantor’s
spouse (each, a “Transmutation”), without the prior written consent of Lender. Guarantor
represents and warrants that the assets listed on Guarantor’s personal financial statement dated
December 31, 2004 are the separate property of Guarantor.

     14. APPLICATION OF SINGULAR AND PLURAL. In all cases where there is but a single Borrower,
then all words used herein in the plural shall be deemed to have been used in the singular where
the context and construction so require; and when there is more than one Borrower named herein, or
when this Guaranty is executed by more than one Guarantor, the word “Borrowers” and the word
“Guarantor” respectively shall mean all or any one or more of them as the context requires.

     15. UNDERSTANDING WITH RESPECT TO WAIVERS; SEVERABILITY OF PROVISIONS. Guarantor warrants and
agrees that each of the waivers set forth herein is made with Guarantor’s full knowledge of its
significance and consequences, and that under the circumstances, the waivers are reasonable and
not contrary to public policy or law. If any waiver or other provision of this Guaranty shall be
held to be prohibited by or invalid under applicable public policy or law, such waiver or other
provision shall be ineffective only to the extent of such prohibition or invalidity, without
invalidating the remainder of such waiver or other provision or any remaining provisions of this
Guaranty.

     16. GOVERNING LAW. This Guaranty shall be governed by and construed in accordance with the
laws of the Slate of Arizona.

     17. ARBITRATION.

     (a) Arbitration. The parties hereto agree, upon demand by any party, to submit to
binding arbitration all claims, disputes and controversies between or among them (and their
respective

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employees, officers, directors, attorneys, and other agents), whether in tort, contract or
otherwise arising out of or relating to in any way (i) the loan and related loan and security
documents which are the subject of this Guaranty and its negotiation, execution, collateralization,
administration, repayment, modification, extension, substitution, formation, inducement,
enforcement, default or termination; or (ii) requests for additional credit.

     (b) Governing Rules, Any arbitration proceeding will (i) proceed in a location in
Arizona selected by the American Arbitration Association (“AAA”); (ii) be governed by the Federal
Arbitration Act (Title 9 of the United States Code), notwithstanding any conflicting choice of law
provision in any of the documents between the parties; and (iii) be conducted by the AAA, or such
other administrator as the parties shall mutually agree upon, in accordance with the AAA’s
commercial dispute resolution procedures, unless the claim or counterclaim is at least
$1,000,000.00 exclusive of claimed interest, arbitration fees and costs in which case the
arbitration shall be conducted in accordance with the AAA’s optional procedures for large, complex
commercial disputes (the commercial dispute resolution procedures or the optional procedures for
large, complex commercial disputes to be referred to, as applicable, as the “Rules”). If there is
any inconsistency between the terms hereof and the Rules, the terms and procedures set forth herein
shall control. Any party who fails or refuses to submit to arbitration following a demand by any
other party shall bear all costs and expenses incurred by such other party in compelling
arbitration of any dispute. Nothing contained herein shall be deemed to be a waiver by any party
that is a bank of the protections afforded to it under 12 U.S.C. §91 or any similar applicable
state law.

     (c) No
Waiver of Provisional Remedies, Self-Help and Foreclosure. The arbitration
requirement does not limit the right of any party to (i) foreclose against real or personal
property collateral; (ii) exercise self-help remedies relating to collateral or proceeds of
collateral such as setoff or repossession; or (iii) obtain provisional or ancillary remedies such
as replevin, injunctive relief, attachment or the appointment of a receiver, before during or
after the pendency of any arbitration proceeding. This exclusion does not constitute a waiver of
the right or obligation of any party to submit any dispute to arbitration or reference hereunder,
including those arising from the exercise of the actions detailed in sections (i), (ii) and (iii)
of this paragraph.

     (d) Arbitrator Qualifications and Powers. Any arbitration proceeding in which the
amount in controversy is $5,000,000.00 or less will be decided by a single arbitrator selected
according to the Rules, and who shall not render an award of greater than $5,000,000.00. Any
dispute in which the amount in controversy exceeds $5,000,000.00 shall be decided by majority vote
of a panel of three arbitrators; provided however, that all three arbitrators must actively
participate in all hearings and deliberations. The arbitrator will be a neutral attorney licensed
in the State of Arizona or a neutral retired judge of the state or federal judiciary of Arizona,
in either case with a minimum of ten years experience in the substantive law applicable to the
subject matter of the dispute to be arbitrated. The arbitrator will determine whether or not an
issue is arbitratable and will give effect to the statutes of limitation in determining any claim.
In any arbitration proceeding the arbitrator will decide (by documents only or with a hearing at
the arbitrator’s discretion) any pre-hearing motions which are similar to motions to dismiss for
failure to state a claim or motions for summary adjudication. The arbitrator shall resolve all
disputes in accordance with the substantive law of Arizona and may grant any remedy or relief that
a court of such state could order or grant within the scope hereof and such ancillary relief as is
necessary to make effective any award. The arbitrator shall also have the power to award recovery
of all costs and fees, to impose sanctions and to take such other action as the arbitrator deems
necessary to the same extent a judge could pursuant to the Federal Rules of Civil Procedure, the
Arizona Rules of Civil Procedure or other applicable law. Judgment upon the award rendered by the
arbitrator may be entered in any court having jurisdiction. The institution and maintenance of an
action for judicial relief or pursuit of a provisional or ancillary remedy shall not constitute a
waiver of the right of any party, including the plaintiff, to submit the controversy or claim to
arbitration if any other party contests such action for judicial relief.

     (e) Discovery. In any arbitration proceeding discovery will be permitted in
accordance with the Rules. All discovery shall be expressly limited to matters directly relevant
to the dispute being arbitrated and must be completed no later than 20 days before the hearing
date and within 180 days of the filing of the dispute with the AAA. Any requests for an
extension of the discovery periods, or any discovery

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disputes, will be subject to final determination by the arbitrator upon a showing that the request
for discovery is essential for the party’s presentation and that no alternative means for obtaining
information is available.

     (f) Class Proceedings and Consolidations. The resolution of any dispute arising
pursuant to the terms of this Guaranty shall be determined by a separate arbitration proceeding
and such dispute shall not be consolidated with other disputes or included in any class
proceeding.

     (g) Payment Of Arbitration Costs And Fees. The arbitrator shall award all costs and
expenses of the arbitration proceeding.

     (h) Miscellaneous. To the maximum extent practicable, the AAA, the arbitrators and
the parties shall take all action required to conclude any arbitration proceeding within 180 days
of the filing of the dispute with the AAA. No arbitrator or other party to an arbitration
proceeding may disclose the existence, content or results thereof, except for disclosures of
information by a party required in the ordinary course of its business or by applicable law or
regulation. If more than one agreement for arbitration by or between the parties potentially
applies to a dispute, the arbitration provision most directly related to the documents between the
parties or the subject matter of the dispute shall control. This arbitration provision shall
survive termination, amendment or expiration of any of the documents or any relationship between
the parties.

     IN WITNESS WHEREOF, the undersigned Guarantor has executed this Guaranty as of December 9,
2005.

	 	 	 	 	 
	 	 	 
	/s/ WILLIAM S. LEVINE
 	 	 
	WILLIAM S. LEVINE 	 	 
	 	 	 
	 

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Exhibit 10.19.1

STOCK PLEDGE AGREEMENT

(GLOBAL WATER — PICACHO COVE UTILITIES COMPANY)

	 	 	 
	DATE:

	 	October 19, 2006
	 
	 	 
	PARTIES:
	 	 
	 
	 	 
	Pledgor:

	 	Global Water, Inc.
	 

	 	21410 N. 19th Avenue, Suite 201
	 

	 	Phoenix, AZ 85027
	 

	 	Attn: Trevor Hill
	 
	 	 
	Secured Party:

	 	Wells Fargo Bank, National Association
	 

	 	100 W. Washington Street
	 

	 	MAC S4101-251
	 

	 	Phoenix, AZ 85003
	 

	 	Attn: Keri Tignini

RECITALS:

          A. Global Water Resources, LLC, Global Water Management, LLC and Global Water, Inc. (f/k/a
Global Water Resources, Inc.) (collectively, “Borrower”) and Secured Party have entered into that
certain Amended and Restated Credit Agreement dated December 9, 2005, as modified by that certain
First Modification Agreement, dated July 1, 2006 (as modified, the “Credit Agreement”) and further
evidenced by that certain $56,000,000.00 Second Amended and Restated Revolving Line of Credit Note
dated December 9, 2005 (the “Note”). The Credit Agreement, the Note and all other documents
evidencing and or securing the revolving line of credit loan made pursuant to the Credit Agreement
(the “Loan”) may be hereinafter referred to as the “Loan Documents.” Capitalized terms not
otherwise defined herein shall have the same meaning as set forth in the Credit Agreement.

          B. Pursuant to Section 1.3 of the Credit Agreement, at such time as Borrower or any
affiliate of Borrower acquires, forms or otherwise comes into ownership of a controlling interest
in public utility companies not otherwise referenced in the Credit Agreement (each, a “New
Company”), Borrower shall promptly execute such assignment documents (in form substantially
similar to those executed in connection with the Credit Agreement) pledging the member interest,
shareholder interest or partner interest, as applicable, in such New Company to Secured Party as
additional collateral for the Loan and to perform such other and further acts and execute and
deliver any and all such other and further instruments as may be required or reasonably requested
by Secured Party to establish, maintain and protect the respective rights and remedies of Secured
Party with respect to such New Company.

          C. Pledgor owns 1,000 shares (the “Shares”), of the issued and outstanding capital stock of
Global Water — Picacho Cove Utilities Company (the “Company”), represented by Certificate No. 1,
which represents 100% of the issued and outstanding capital stock of the Company, which by
definition is a New Company pursuant to the terms of the Credit Agreement.

 

 

          D. In order to induce Secured Party to continue to make the Loan to Borrower and in order to
comply with the terms and conditions of the Credit Agreement, as additional security for the Loan,
Pledgor desires to grant a security interest in, and, pledge, sign and transfer, all of Pledgor’s
right, title and interest in and to the Shares, to Secured Party.

          NOW, THEREFORE, for good and valuable consideration, the receipt of which is hereby
acknowledged, the parties agree as follows:

          1. Pledge. Pledgor hereby grants to Secured Party a security interest in the Shares
together with all rights thereof or arising therefrom, all additions thereto, dividends, options,
warrants and payments arising thereunder, all proceeds from the sale or other disposition thereof,
and all substitutions therefor (collectively the “Collateral”), as security for all of the
Borrower’s obligations to Secured Party under the Note and any and all of the Loan Documents. Upon
execution of this Agreement, Pledgor shall deliver to Secured Party stock power(s) and
assignment(s) separate from certificate for the certificates representing the Shares endorsed in
blank. The books of the issuer of such Shares shall contain a legend to reflect such pledge of the
Shares hereunder.

          2. Covenants and Representations. Pledgor agrees to take no action which would
adversely affect the value of the Collateral or which would encumber, dilute or cloud Pledgor’s
title or interest therein. Pledgor shall not do any of the following without Secured Party’s prior
written consent:

          (a) Pledgor is and will continue to be the owner of the Collateral, free of any liens,
security interests or assignments other than the security interest created by this Agreement;

          (b) Pledgor shall deliver to Secured Party and Secured Party shall retain physical
possession of all stock certificates and other instruments and documents representing or
evidencing any of the Collateral, which stock certificates shall be duly endorsed in blank;

          (c) Pledgor will not modify or amend the instruments or documents constituting the
Collateral or make any compromise, adjustment, settlement or termination in connection
therewith;

          (d)
Pledgor will at all times defend the Collateral against any and all claims of any
person, adverse to the claims of Secured Party;

          (e) upon the occurrence of an Event of Default Pledgor will accept no payments,
distributions or dividends on the Collateral and shall remit to Secured Party any payment or
distribution received;

          (f) the execution and delivery of this Agreement, and the performance of its terms, will
not result in any violation of or constitute a default under the terms of any Agreement, or
other instrument, license, judgment, order, statute, ordinance or other governmental rule or
regulation applicable to the Pledgor or the Collateral;

          (g) upon its execution and delivery, this Agreement shall create an enforceable and valid
lien in the Collateral;

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          (h) Pledgor has the full power and authority to enter into this Agreement, and the
persons executing this Agreement on behalf of Pledgor have been duly authorized to act on
behalf of Pledgor in the execution hereof;

          (i) other than Pledgor, there are no parties who assert any type of ownership

interest whatsoever in the Shares;

          (j) other than this Agreement, there are no agreements which impose any conditions or
restrictions on the Shares;

          (k) all of the Shares have been duly authorized, validly issued and are fully paid and
non-assessable;

          (I) the granting by Pledgor to Secured Party of the security interest in the Collateral
as evidenced by this Agreement complies with all applicable federal and state securities laws
or qualifies for an exemption from such registration; and

          (m) Pledgor, as stockholder, owner, part owner, director, corporate officer, or in any
other capacity, shall not vote for, ratify, accept, accede to, or approve any proposed
transaction concerning the Collateral which would have an adverse effect on the rights of
Secured Party hereunder.

          3. Delivery of Instruments; Adjustments. Pledgor has delivered to Secured Party, all
stock certificates and all documents evidencing any ownership of the Collateral or which are
necessary or convenient for Secured Party to exercise any of Secured Party’s rights hereunder. If,
during the term of this Agreement, any stock dividends, reclassification, readjustments or other
changes are declared or made in the capital structure of any corporation represented by the
Collateral, or if any subscription or other options are exercisable with respect to the
Collateral, all such new, substitute or additional shares or other securities, rights or interests
issued shall be delivered to and held by Secured Party subject to this Agreement in the same
manner as the Collateral.

          4. Voting. So long as Pledgor is not in default hereunder, any Collateral may be
voted by the Pledgor at all meetings of stockholders, subject to the restrictions of Paragraph
2(m).

          5. Events of Default. An “Event of Default” as defined in the Credit Agreement shall
be an Event of Default hereunder.

          6. Remedies on Default. Upon the occurrence and during the continuance of an Event of
Default, Secured Party may exercise any or all of the rights and remedies provided (a) by this
Agreement, and/or (b) by any other applicable law. Without limiting the generality of the
foregoing, upon the occurrence and continuance of an Event of Default, Secured Party may (i)
instruct the secretary of the Company to pay all dividends to Secured Party, and (ii) sell the
Collateral or any part thereof, without recourse to judicial proceedings, with the right to bid
for and buy, free from any right of redemption, upon ten
(10) days’ notice (which notice is agreed
to be reasonable notice for the purposes hereof) to the Pledgor, of the time and place of sale,
for cash, upon credit or for future delivery, at Secured Party’s option and in Secured Party’s
complete discretion:

          (a) at a public sale, including a sale at any broker’s board or exchange;

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          (b) at private sale in any commercially reasonable manner which will not require the
Collateral, or any part thereof, to be registered in accordance with the Securities Act of 1933,
as amended, or the rules and regulations promulgated thereunder, or any other law or regulation.
Secured Party is also hereby authorized, but not obligated, to take such actions, give such
notices, obtain such consents, and do such other things as it may deem required or appropriate
in the event of sale or disposition of any of the Collateral.

          In connection with the sale of any of the Collateral, Secured Party is authorized, but not
obligated, to limit prospective purchasers to the extent deemed necessary or desirable by Secured
Party to render such sale exempt from the registration requirements of the Securities Act of 1933,
as amended, and any applicable state securities laws, and any sale of the Collateral so made in
good faith by Secured Party shall be deemed to be commercially reasonable. In connection with any
such sale or other disposition in accordance with the provision hereof, Secured Party shall be
authorized to deliver the Stock to or upon the order of Secured Party.

          7. Taxes. Pledgor shall pay promptly, when due, any and all property taxes, excise
taxes (however called) and other taxes, assessments, duties and other charges, which, if unpaid,
might by law or otherwise become a lien or charge upon the Collateral (including any and all
interest, penalties and related provisional fees) imposed, levied or assessed against the
Collateral, or upon or measured by the use, ownership, possession or operation thereof, or in
respect to this Agreement or the security interest in the Collateral granted and conveyed herein.

          8. Pledgor’s Failure to Pay Taxes and Other Items. If Pledgor fails to make any
payment or do any act required of it under this Agreement then Secured Party shall have the right,
but not the obligation, upon three (3) days notice to Pledgor, and without releasing Pledgor from
any obligation under this Agreement, to make or do the same, and to pay, purchase, contest or
compromise any lien which in Secured Party’s judgment places its security interest in the
Collateral or Pledgor’s title to the Collateral in jeopardy, and in exercising any such rights, to
expend whatever reasonable amounts of Secured Party in its sole discretion may deem necessary
therefor. Any amounts expended by Secured Party pursuant to this Section 8 shall be a demand
obligation owing by Pledgor, which shall bear interest at the default rate (as defined in the Loan
Documents) from the date Secured Party expends such amount until repaid.

          9. Indemnification. Pledgor agrees to indemnify Secured Party for from and against
all losses, claims, demands and liabilities of every kind and nature arising by reason of the
assignment and security interest granted and the Collateral, excluding any of the same arising
from the negligence or willful misconduct of the Secured Party, and agrees to pay all expenses,
including, without limitation, expert witness fees and attorneys fees, incurred by Secured Party
in the preservation, realization, enforcement or exercise of any of its rights, powers or remedies
hereunder.

          10. Unregistered Securities. Pledgor acknowledges that the Shares constitute
unregistered securities subject to legal restrictions upon the transfer thereof which will render
a public sale of the Shares unavailable. If, upon an Event of Default, Secured Party exercises its
right to sell the shares, Pledgor waives all rights to public sale and agrees to the private
placement of the Shares to any qualified third-party buyer at a commercially reasonable price
therefor. Pledgor further acknowledges that the legal restrictions upon transfer of the Shares
adversely affect the marketability of the Shares and any commercially reasonable price for the
shares will include a discount from the proportionate part of the net asset value of the issuer
represented by the Shares to reflect those restrictions upon marketability.

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          11. Irrevocable Proxy. Pledgor does hereby irrevocably constitute and appoint Secured
Party and Secured Party’s successors and assigns as its proxy, with full power, in the same
manner, to the same extent, and with the same effect as if they were to do the same:

          (a) to attend any and all meetings of the shareholders of the Company held from the date
hereof, and to vote the Collateral at any such meeting in such manner as Secured Party shall, in
its sole discretion, deem appropriate;

          (b) to consent, in the sole discretion of Secured Party, to any and all actions by or with
respect to Pledgor for which the consent of the Pledgor is or may be necessary or appropriate;

          (c) without limitation, to do all things which Pledgor can or could do as a shareholder of
the Company, giving to Secured Party full power and substitution and revocation; provided,
however, that this proxy shall not be exercisable by Secured Party, and Pledgor alone shall
have the foregoing powers, so long as there is no Event of Default hereunder pursuant to which
Secured Party has notified Pledgor that Secured Party is exercising its rights under this
section, and provided further that this proxy shall terminate at such time as this Agreement is
terminated. Pledgor hereby revokes any proxy or proxies heretofore given to any person or
persons and agrees not to give any other proxy in derogation hereof until such time as this
Agreement is terminated. Pledgor and Secured Party hereby specifically agree that the proxy
granted hereunder shall be deemed to be valid and irrevocable until this Agreement shall be
terminated.

          12. Attorney-in-Fact. Pledgor hereby appoints Secured Party as Pledgor’s
Attorney-in-Fact (without imposing any obligations on Secured Party), to perform all acts which
Secured Party deems appropriate to perfect and continue the security interest granted hereunder.
The Power of Attorney granted herein is coupled with an interest and is irrevocable until this
Agreement is terminated.

          13. Miscellaneous. This Agreement and all other Loan Documents constitute the entire
agreement among the parties hereto with respect to the subject matter hereof and shall supersede
all other prior agreements, written or oral, with respect thereto.

          (a) This Agreement shall be binding on and inure to the benefit of the parties hereto and
their respective successors and assigns; provided, however, that Pledgor shall not have the
right to assign or transfer respective rights or obligations under this Agreement except with
the prior written consent of Secured Party. Secured Party, at any time, may sell, assign, grant
or otherwise transfer, in whole or in part, the indebtedness secured hereby and Secured Party’s
rights, interest and obligations under this Agreement or the Collateral and in such event, the
transferee shall have the same rights, powers and authority with respect to this Agreement and
the Collateral so transferred as are hereby given to Secured Party.

          (b) This Agreement may be amended modified, renewed or extended but only by a written
instrument, executed by all of the parties hereto in the manner of the execution of this
Agreement.

          (c) THIS AGREEMENT SHALL IN ALL RESPECTS BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH,
THE LAWS OF THE STATE OF ARIZONA, AND, TO THE EXTENT THEY PREEMPT SUCH LAWS, THE LAWS OF THE
UNITED STATES.

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          (d) All parties hereto shall, from time to time, do and perform such other and further acts
and execute and deliver any and all such other and further instruments as may be required or
reasonably requested by any other party to establish, maintain and protect the respective rights
and remedies of such other party and to carry out and effect the intents and purposes of this
Agreement including, but not limited to, any further acts required by Arizona Administrative
Code R14-2-803 and other similar laws, rules, statutes and codes related to Secured Party’s
exercise of its remedies.

          (e) All documents, Agreements, certificates and instruments herein required shall be in
form and substance satisfactory in all respects to Secured Party in its sole discretion and
shall be provided at the sole cost and expense of Pledgor.

          (f) The representations and warranties hereunder shall survive the execution hereof and
Secured Party may enforce such representations and warranties at any time. Pledgor’s covenants
shall survive the execution hereof and shall be performed fully and faithfully by Pledgor at all
times. The indemnities of Pledgor shall survive repayment of the indebtedness secured hereby.

          (g) If any term or provision of this Agreement, or the application thereof to any
circumstance, shall be invalid, illegal or unenforceable to any extent, such term or provision
shall not invalidate or render unenforceable any other term or provision of this Agreement, or
the application of such term or provision to any other circumstance. To the extent permitted by
law, the parties hereto hereby waive any provision of law that renders any term or provision
hereof invalid or unenforceable in any respect.

          (h) Time is of the essence of this Agreement.

          (i) Any notice, demand or any other instruments authorized by this Agreement to be served
on or given shall be sufficiently served or given for all purposes on the earlier of: (a) when
personally delivered to any officer of the party to whom it is addressed; (b) when sent by
certified, registered or first class mail, postage prepaid, addressed to each party at its
address set forth above or at such other address as has been furnished in writing by a party to
the other in the manner provided in this Section; or (c) by overnight courier.

          14. Counterparts. This Agreement may be executed in any number of counterparts, each
of which, when so executed and delivered, shall be deemed to be an original, but all such
counterparts shall together constitute but one and the same instrument.

          15. Headings. The headings of the sections and paragraphs of this Agreement have been
inserted for convenience of reference only and shall in no way restrict or otherwise modify any of
the terms or provisions hereof.

          16. Construction. All references to the singular shall include the plural and vice
versa and all references to the masculine shall include the neuter or feminine and vice versa.
This Agreement has been reviewed and negotiated by counsel for each party and no ambiguity in this
Agreement shall be construed against any party based upon its having prepared the same.

          17. Termination. This Agreement shall terminate upon full satisfaction of the
indebtedness hereby secured, and, upon such termination, Secured Party shall return to Pledgor

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any of the Collateral held by Secured Party pursuant to this Agreement, and the original executed
copy of this Agreement which contains an irrevocable proxy.

          18. Acknowledgment. Pledgor acknowledges that Secured Party would not agree to make
the Loan to Pledgor without the execution, delivery and performance of this Agreement by Pledgor.
Pledgor further acknowledges that it has received good and sufficient consideration for the
execution, delivery and performance of this Agreement.

          19. No Duty to Protect. This is a pledge and assignment of Pledgor’s rights and
benefits in the Collateral without an assumption by Secured Party of any of Pledgor’s duties or
obligations attendant thereto. Except for physical safeguarding of the stock certificate(s)
included in the Collateral delivered to Secured Party, Secured Party shall have no duty to protect,
insure, collect or realize upon the Collateral or any proceeds therefrom nor shall Secured Party
have any obligations to any third party by virtue of Secured Party’s possession of the Collateral.

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

	 	 	 	 	 
	PLEDGOR: 	
GLOBAL WATER, INC.

 	 
	 	By:  	/s/ William S. Levine
 	 
	 	 	William S. Levine, President 	 
	 	 	 	 
	 
	 SECURED PARTY:	WELLS FARGO BANK, NATIONAL ASSOCIATION

 	 
	 	By:  	/s/ Keri M. Tignini
 	 
	 	 	Name:  	Keri M. Tignini 	 
	 	 	Title:  	Vice President 	 
	 

-7-

 

IRREVOCABLE STOCK POWER

Certificate No. 1

FOR VALUE RECEIVED, GLOBAL WATER, INC. (“Pledgor”) hereby assigns and transfers to WELLS FARGO
BANK, NATIONAL ASSOCIATION (“Secured Party”), pursuant to the Stock Pledge Agreement, dated as of
October 19, 2006 (the “Stock Pledge Agreement”), between the Pledgor and Secured Party, 1,000
shares of common stock of GLOBAL WATER — PICACHO COVE UTILITIES COMPANY (the “Common Shares”), as
security for the Loan (as defined in the Pledge Agreement).

          The undersigned do hereby irrevocably constitute and appoint WELLS FARGO BANK, NATIONAL
ASSOCIATION as their attorney-in-fact to transfer the said stock or bond(s), as the case may be, on
the books of GLOBAL WATER — PICACHO COVE UTILITIES COMPANY, with full power of substitution in the
premises.

Dated: October 19, 2006

	 	 	 	 	 
	 	GLOBAL WATER, INC.

 	 
	 	By:  	/s/ William S. Levine
 	 
	 	 	William S. Levine, President 	 
	 	 	 	 
	 

SIGNATURES GUARANTEED:

/s/ Illegible

 

 

ACKNOWLEDGMENT, ACCEPTANCE AND APPROVAL

          GLOBAL WATER — PICACHO COVE UTILITIES COMPANY (the “Company”), hereby acknowledges, accepts
and approves the foregoing Stock Pledge Agreement, Pledgor’s pledge of the Shares and of all rights
to receive distributions of cash payable by the Company to the shareholders, and hereby agrees
that, upon and following notice from Secured Party that an Event of Default has occurred, it shall
comply with the provisions of the Stock Pledge Agreement and shall pay directly to WELLS FARGO
BANK, NATIONAL ASSOCIATION, as Secured Party in the above and foregoing Stock Pledge Agreement, any
and all sums due or payable to the shareholders or any of them until it shall receive notice from
Bank either (i) to discontinue direct payments, or (ii) that all sums under the Note and the Loan
Documents shall be fully paid. Pursuant to Section 1 of the Stock Pledge Agreement, the Company
agrees to enter a legend in the books of the Company reflecting the pledge of the Shares to Secured
Party.

          IN WITNESS WHEREOF, the undersigned have executed this instrument as of the 19th day of
October, 2006.

	 	 	 	 	 
	GLOBAL WATER — PICACHO COVE UTILITIES COMPANY

 	 
	By:  	/s/ Trevor Hill
 	 
	 	Trevor Hill, President

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