Document:

exv10w9w2

CONSENT AND AGREEMENT OF GUARANTORS AND PLEDGORS

     With respect to the Third Modification Agreement, dated April 20, 2007 (“Agreement”),
among GLOBAL WATER RESOURCES, LLC, a Delaware limited liability company, GLOBAL WATER MANAGEMENT,
LLC, a Delaware limited liability company, and GLOBAL WATER, INC., (f/k/a GLOBAL WATER RESOURCES,
INC.), a Delaware corporation (collectively, “Borrower”), and WELLS FARGO BANK, NATIONAL
ASSOCIATION, a national banking association (“Bank”), WILLIAM S. LEVINE and LEVINE
INVESTMENTS LIMITED PARTNERSHIP, an Arizona limited partnership (collectively,
“Guarantors”) and TREVOR HILL, LEO COMMANDEUR, DANIEL CRACCHIOLO, ANDREW COHN, GRAHAM
SYMMONDS and CINDY LILES (collectively, “Pledgors”) agree for the benefit of Bank as
follows:

          1. Guarantors acknowledge (i) receiving a copy of and reading the Agreement, (ii) the
accuracy of the Recitals in the Agreement, and (iii) the effectiveness of (A) those certain
Continuing Guaranties dated December 9, 2005 (collectively the “Guaranty”), by the
undersigned Guarantors for the benefit of Bank, as modified herein, and (B) any other agreements,
documents, or instruments securing or otherwise relating to the Guaranty, as modified herein. The
Guaranty and such other agreements, documents, and instruments, as modified herein, are referred
to individually and collectively as the “Guarantor Documents”. All capitalized terms used
herein and not otherwise defined shall have the meaning given to such terms in the Agreement.

          2. Pledgors acknowledge (i) receiving a copy of and reading the Agreement, (ii) the accuracy
of the Recitals in the Agreement, and (iii) the effectiveness of (A) those certain Collateral
Assignments of Member Interest dated December 9, 2005 (collectively the “Assignment”), by
the undersigned Pledgors for the benefit of Bank, as modified herein, and (B) any other
agreements, documents, or instruments relating to the Assignment, as modified herein. The
Assignment and such other agreements, documents, and instruments, as modified herein, are referred
to individually and collectively as the “Pledgor Documents”. All capitalized terms used
herein and not otherwise defined shall have the meaning given to such terms in the Agreement.

          3. Guarantors and Pledgors consent to the modification of the Loan Documents and all other
matters in the Agreement. Accordingly, the Guarantor Documents and the Pledgor Documents are
modified to increase the principal amount of indebtedness of Borrower to Lender from
$56,000,000.00 to $80,000,000.00.

          4. Guarantors and Pledgors fully, finally, and forever release and discharge Bank and its
successors, assigns, directors, officers, employees, agents, and representatives from any and all
actions, causes of action, claims, debts, demands, liabilities, obligations, and suits of whatever
kind or nature, in law or equity, that Guarantor has or in the future may have, whether known or
unknown, (i) in respect of the Line of Credit, the Loan Documents, the Guarantor Documents, the
Pledgor Documents or the actions or omissions of Bank in respect of the Line of Credit, the Loan
Documents, the Guarantor Documents or the Pledgor Documents and (ii) arising from events occurring
prior to the date hereof.

 

 

          5. Guarantors and Pledgors agree that all references, if any, to the Note, the Credit
Agreement, and the other Loan Documents in the Guarantor Documents and the Pledgor Documents shall
be deemed to refer to such agreements, documents, and instruments as modified by the Agreement.

          6. Guarantors reaffirm the Guarantor Documents and agree that the Guarantor Documents
continue in full force and effect and remain unchanged, except as specifically modified by this
Consent and Agreement of Guarantors and Pledgors. Any property or rights to or interests in
property granted as security in the Guarantor Documents shall remain as security for the Line of
Credit, the Guaranty and the obligations of Guarantors in the Guaranty.

          7. Pledgors reaffirms the Pledgor Documents and agrees that the Pledgor Documents continue in
full force and effect and remain unchanged, except as specifically modified by this Consent and
Agreement of Guarantors and Pledgors. Any property or rights to or interests in property granted as
security in the Pledgor Documents shall remain as security for the Line of Credit.

          8. Guarantors represent and warrant that the Loan Documents, as modified by the Agreement, and
the Guarantor Documents, as modified by this Consent and Agreement of Guarantors and Pledgors, are
the legal, valid, and binding obligations of Borrower and the Guarantors, respectively, enforceable
in accordance with their terms against Borrower and Guarantors, respectively.

          9. Pledgors represent and warrant that the Loan Documents, as modified by the Agreement, and
the Pledgor Documents, as modified by this Consent and Agreement of Guarantors and Pledgors, are
the legal, valid, and binding obligations of Borrower and the Pledgors, respectively, enforceable
in accordance with their terms against Borrower and Pledgors, respectively.

          10. Guarantors represent and warrant that Guarantors have no claims, counterclaims, defenses,
or off sets with respect to the enforcement against Guarantors of the Guarantor Documents.

          11. Pledgors represent and warrant that Pledgors have no claims, counterclaims, defenses, or
off sets with respect to the enforcement against Pledgors of the Pledgor Documents.

          12. Guarantors and Pledgors represent and warrant that there has been no material adverse
change in the financial condition of any Guarantor or Pledgor from the most recent financial
statement received by Bank.

          13. Guarantors and Pledgors agree that this Consent and Agreement of Guarantors and Pledgors
may be executed in one or more counterparts, each of which shall be deemed an original and all of
which together shall constitute one and the same document. Signature and acknowledgment pages may
be detached from the counterparts and attached to a single copy of this Consent and Agreement of
Guarantors and Pledgors to physically form one document.

-2-

 

	 	 	 	 	 
	 	GUARANTORS:

 	 
	 	
 	 
	 	WILLIAM S.  LEVINE
 	 
	 	 	 
	 
	 	LEVINE INVESTMENTS LIMITED

PARTNERSHIP, an Arizona limited

partnership

 	 
	 	By:  	/s/ William S. Levine
 	 
	 	 	Name:  	William S. Levine 	 
	 	 	Title:  	General Partner 	 
	 
	 	PLEDGORS:

 	 
	 	/s/ Trevor Hill
 	 
	 	Trevor Hill 	 
	 	 	 
	 
	 	 	 
	 	                         /s/ Leo Commandeur
 	 
	 	Leo Commandeur 	 
	 	 	 
	 
	 	 	 
	 	                         /s/ Daniel Cracchiolo
 	 
	 	Daniel Cracchiolo 	 
	 	 	 
	 
	 	 	 
	 	                         /s/ Andrew Cohn
 	 
	 	Andrew Cohn 	 
	 	 	 
	 
	 	 	 
	 	                         /s/ Graham Symmonds
 	 
	 	Graham Symmonds 	 
	 	 	 
	 
	 	 	 
	 	                         /s/ Cindy Liles
 	 
	 	Cindy Liles 	 
	 	 	 
	 

-3-

 

	 	 	 	 	 

EXHIBIT B

Compliance Certificate

     Global Water Resources LLC, a
Delaware limited liability company, Global Water
Management LLC, an Arizona limited liability company, and Global Water, Inc., a
Delaware Corporation, individually and collectively the “Borrower” to that certain
Credit Agreement dated December 9, 2005, (herein together with all amendments and
modifications, if any, called the “Agreement”), by and between the Borrower and
Guarantor named therein and Wells Fargo Bank, National Association, hereby certifies
that Borrower has prepared the Compliance Certificate in accordance with the terms of
the Agreement for the reporting period ending:

 

Minimum Net Worth not less than $10,000,000

(Section 4.9 (a))

Net Worth not at any time less than $10,000,000, with “Net
Worth” defined as total members’ equity.

	 	 	 	 	 	 	 	 	 
	At or above $10,000,000
	 	 	 	 	 	Compliance	 
	Measured
at each fiscal quarter end
	 	Actual	 	 	Yes/No	 
	 
	 	 	 	 	 	 	 	 
	Net Worth
	 	 	 	 	No
	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

Annualized Recurring EBITDA Coverage Required

(Section 4.9 (b))

Measured on a rolling four (4) quarter basis (last fiscal
quarter) with Rolling Four Quarter EBITDA Coverage of not less than 1.50:1

	 	 	 	 	 	 	 	 	 	 	 	 	 
	At or above 1.50:1
	 	 	 	 	 	 	 	 	 	Compliance	 
	Measured
at each fiscal quarter end beginning June 30, 2007
	 	 	 	 	 	Actual	 	 	Yes/No	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Calculation of Eligible EBITDA
	 	 	 	 	 	 	 	 	 	 	 	 
	Current Eligible EBITDA:
	 	 	 	 	 	 	 	 	 	 	 	 
	Santa Cruz Water Company, LLC
	 	 	 	 	 	 	 	 	 	 	 	 
	Palo Verde Utility Company, LLC
	 	 	 	 	 	 	 	 	 	 	 	 
	Pacer Equities
	 	 	 	 	 	 	 	 	 	 	 	 
	Global Water, Inc.
	 	 	 	 	 	 	 	 	 	 	 	 
	Hassayampa Utilities Co., Inc.
	 	 	 	 	 	 	 	 	 	 	 	 
	Global Water Management, LLC
	 	 	 	 	 	 	 	 	 	 	 	 
	Global Water Resources, LLC
	 	 	 	 	 	 	 	 	 	 	 	 
	Valencia Water Company, Inc.
	 	 	 	 	 	 	 	 	 	 	 	 
	Willow Valley Water Company
	 	 	 	 	 	 	 	 	 	 	 	 
	Water Util of North Scottsdale
	 	 	 	 	 	 	 	 	 	 	 	 
	Water Util of Greater Tonopah
	 	 	 	 	 	 	 	 	 	 	 	 
	Water Util of Greater Buckeye
	 	 	 	 	 	 	 	 	 	 	 	 
	Acquisitions:
	 	 	 	 	 	 	 	 	 	 	 	 
	CP Water Company
	 	 	 	 	 	 	 	 	 	 	 	 
	Divestitures:
	 	 	 	 	 	 	 	 	 	 	 	 
	Cave Creek Water Company
	 	 	 	 	 	 	 	 	 	 	 	 
	Rolling Four Quarter EBITDA
	 	$        — 	 	 	#DIV/0!	 	#DIV/0!
	 
	 	 	 	 	 	 	 	 	 	 	 
	Prior Period Current Portion of Long Term Debt
	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 
	Annualized Total Cash Interest Paid
	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

Financial Statements and Covenant Compliance Certificate

Borrower by its undersigned officer, hereby certifies that the
foregoing represents a true and accurate calculation of the financial
covenants, calculated in accordance with the Agreement. The undersigned
further certifies that the financial statements of Borrower for the
reporting period has been prepared in accordance to generally accepted
accounting practices consistently applied and fairly
sets forth the financial condition of Borrower as the date hereto and
the results of operations for the period then ending.

Note: These numbers are based on unaudited financials and are

subject to year-end adjustments which will impact EBITDA and liabilities.

Dated
this             day

of              , 200__.

	 	 	 	 	 	 	 	 	 	 	 
	Global Water Resources, LLC	 	 	 	Global Water, Inc.	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	by:

	 	 	 	 	 	by:	 	 	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	its:

	 	 	 	 	 	its:	 	 	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Global Water Management, LLC	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	by:
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	its:exv10w10

Exhibit 10.10

STOCK PLEDGE AGREEMENT

(CAVE CREEK WATER CO.)

	 	 	 
	DATE:

	 	December 9, 2005
	 
	 	 
	PARTIES:
	 	 
	 
	 	 
	Pledgor:

	 	Global Water Resources, Inc.
	 

	 	Deer Valley Financial Centre
	 

	 	22601 N. 19th Avenue, Suite 210
	 

	 	Phoenix, AZ 85027
	 

	 	Attn: Trevor Hill
	 
	 	 
	Secured Party:

	 	Wells Fargo Bank, National Association
	 

	 	100 W. Washington Street
	 

	 	MAC S4101-251
	 

	 	Phoenix, AZ 85003
	 

	 	Attn: Curtiss C. Smith, Vice President

 RECITALS:

          A. Global Water Resources, LLC, Global Water Management, LLC and Global Water Resources,
Inc. (collectively, “Borrower”) desire to borrow, and Secured Party desires to lend, the
aggregate sum of Thirty-Five Million and No/100 Dollars ($35,000,000.00) (the “Loan”) pursuant
to that certain Amended and Restated Credit Agreement of even date herewith (the “Credit
Agreement”) and further evidenced by that certain Amended and Restated Revolving Line of
Credit Note of even date herewith (the “Note”). The Credit Agreement, the Note and all other
documents evidencing and or securing the Loan may be hereinafter referred to as the “Loan
Documents.”

          B. Pledgor owns 3,125 shares (the “Shares”), of the issued and outstanding capital stock
of Cave Creek Water Co. (the “Company”), represented by
Certificate No. 23, which represents
100% of the issued and outstanding capital stock of the Company.

          C. In order to induce Secured Party to make the Loan to Borrower, 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;

          (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;

-2-

 

          (l) 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;

          (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

-3-

 

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.

          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;

-4-

 

          (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.

          (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

-5-

 

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 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

-6-

 

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 RESOURCES, INC.

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

 	 
	 	By:  	/s/ Curtiss C. Smith
 	 
	 	 	Name:  	CURTISS C. SMITH 	 
	 	 	Title:  	VICE PRESIDENT 	 
	 

-7-

 

IRREVOCABLE STOCK POWER

IRREVOCABLE STOCK POWER

Certificate No. 23

FOR VALUE
RECEIVED, GLOBAL WATER RESOURCES, INC. (“Pledgor”) hereby assigns and transfers to WELLS
FARGO BANK, NATIONAL ASSOCIATION (“Secured Party”), pursuant to the Stock Pledge Agreement, dated
as of December 9, 2005 (the “Stock Pledge Agreement”), between the Pledgor and Secured Party,
3,125 shares of common stock of CAVE CREEK WATER CO. (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 CAVE CREEK WATER CO., with full power of substitution in the premises.

Dated: December 9, 2005

	 	 	 	 	 
	 	GLOBAL WATER RESOURCES, INC.

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

	 	 	 	 	 
	SIGNATURES GUARANTEED:

 	 	 
	/s/ Illegible
 	 	 
	 	 	 
	 	 	 

 

 

ACKNOWLEDGMENT, ACCEPTANCE AND APPROVAL

                    CAVE CREEK WATER CO. (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 9th day of
December, 2005.

	 	 	 	 	 
	CAVE CREEK WATER CO.

 	 	 
	By:  	/s/ Trevor Hill
 	 	 
	 	Trevor Hill, President

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00146-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00146-of-00352.parquet"}]]