Document:

exv10w7

EXHIBIT 10.7

AMENDED AND RESTATED SECURITY AGREEMENT

     1. GRANT OF SECURITY INTEREST. For valuable consideration, the undersigned GLOBAL WATER
RESOURCES L.L.C., a Delaware limited liability company, GLOBAL WATER MANAGEMENT, LLC, a Delaware
limited liability company and GLOBAL WATER RESOURCES, INC., a Delaware corporation (each
individually and collectively, the “Debtor”), hereby grants and transfers to WELLS FARGO BANK,
NATIONAL ASSOCIATION (“Bank”) a security interest in all of the property of Debtor described as
follows (collectively, the “Collateral”):

     (a) all accounts, deposit accounts, contract rights, chattel paper (whether electronic or
tangible), instruments, promissory notes, documents, general intangibles, payment intangibles,
software, letter of credit rights, health-care insurance receivables and other rights to payment of
every kind now existing or at any time hereafter arising;

     (b) all inventory, goods held for sale or lease or to be furnished under contracts for
service, or goods so leased or furnished, raw materials, component parts, work in process and other
materials used or consumed in Debtor’s business, now or at any time hereafter owned or acquired by
Debtor, wherever located, and all products thereof, whether in the possession of Debtor, any
warehousemen, any bailee or any other person, or in process- of delivery, and whether located at
Debtor’s places of business or elsewhere;

     (c) all warehouse receipts, bills of sale, bills of lading and other documents of every kind
(whether or not negotiable) in which Debtor now has or at any time hereafter acquires any interest,
and all additions and accessions thereto, whether in the possession or custody of Debtor, any
bailee or any other person for any purpose;

     (d) all money and property heretofore, now or hereafter delivered to or deposited with Bank or
otherwise coming into the possession, custody or control of Bank (or any agent or bailee of Bank)
in any manner or for any purpose whatsoever during the existence of this Agreement and whether held
in a general or special account or deposit for safekeeping or otherwise;

     (e) all right, title and interest of Debtor under licenses, guaranties, warranties, management
agreements, marketing or sales agreements, escrow contracts, indemnity agreements, insurance
policies, service or maintenance agreements, supporting obligations and other similar contracts of
every kind in which Debtor now has or at any time hereafter shall have an interest;

     (f) all goods, tools, machinery, furnishings, furniture and other equipment and fixtures of
every kind now existing or hereafter acquired, and all improvements, replacements, accessions and
additions thereto and embedded software included therein, whether located on any property owned or
leased by Debtor or elsewhere, including without limitation, any of the foregoing now or at any
time hereafter located at or installed on the land or in the improvements at any of the real
property owned or leased by Debtor, and all such goods after they have been severed and removed
from any of said real property; and

     (g) all motor vehicles, trailers, mobile homes, manufactured homes, boats, other rolling stock
and related equipment of every kind now existing or hereafter acquired and all

-1-

 

additions and accessories thereto, whether located on any property owned or leased by Debtor or
elsewhere;

together with whatever is receivable or received when any of the foregoing or the proceeds thereof
are sold, leased, collected, exchanged or otherwise disposed of, whether such disposition is
voluntary or involuntary, including without limitation, all rights to payment, including returned
premiums, with respect to any insurance relating to any of the foregoing, and all rights to payment
with respect to any claim or cause of action affecting or relating to any of the foregoing
(collectively, “Proceeds”).

     2. OBLIGATIONS SECURED. The obligations secured hereby are the payment and performance of: (a)
all present and future Indebtedness of Debtor to Bank with respect to that certain Thirty-Five
Million and No/100 Dollar ($35,000,000.00) Revolving Line of Credit transaction as more fully
described in that certain Amended and Restated Credit Agreement of even date herewith (the “Credit
Agreement”); and (c) all obligations of Debtor and rights of Bank under this Agreement. The word
“Indebtedness” is used herein in its most comprehensive sense and includes any and all advances,
debts, obligations and liabilities of Debtor heretofore, now or hereafter made, incurred or created
in connection with the Credit Agreement, whether voluntary or involuntary and however arising,
whether due or not due, absolute or contingent, liquidated or unliquidated, determined or
undetermined, and whether Debtor may be liable individually or jointly with others, or whether
recovery upon such Indebtedness may be or hereafter becomes unenforceable.

     3. TERMINATION. This Agreement will terminate upon the performance of all obligations of
Debtor to Bank, including without limitation, the payment of all Indebtedness of Debtor to Bank,
and the termination of all commitments of Bank to extend credit to Debtor, existing at the time
Bank receives written notice from Debtor of the termination of this Agreement.

     4. OBLIGATIONS OF BANK. Bank has no obligation to make any loans hereunder. Any money received
by Bank in respect of the Collateral may be deposited, at Bank’s option, into a non-interest
bearing account over which Debtor shall have no control, and the same shall, for all purposes, be
deemed Collateral hereunder.

     5. REPRESENTATIONS AND WARRANTIES. Debtor represents and warrants to Bank that: (a) Debtor’s
legal name is exactly as set forth on the first page of this Agreement, and all of Debtor’s
organizational documents or agreements delivered to Bank are complete and accurate in every
respect; (b) Debtor is the owner and has possession or control of the Collateral and Proceeds; (c)
Debtor has the exclusive right to grant a security interest in the Collateral and Proceeds; (d) all
Collateral and Proceeds are genuine, free from liens, adverse claims, setoffs, default, prepayment,
defenses and conditions precedent of any kind or character, except the lien created hereby or as
otherwise agreed to by Bank, or as heretofore disclosed by Debtor to Bank, in writing; (e) all
statements contained herein and, where applicable, in the Collateral are true and complete in all
material respects; (f) no financing statement covering any of the Collateral or Proceeds, and
naming any secured party other than Bank, is on file in any public office; (g) where Collateral
consists of rights to payment, all persons appearing to be obligated on the Collateral and Proceeds
have authority and capacity to contract and are bound as they appear to be, all property subject to
chattel paper has been properly registered and filed in compliance with law and to perfect the
interest of Debtor in such property, and all such Collateral and Proceeds comply with all
applicable laws concerning form, content and manner of preparation and execution, including where
applicable Federal Reserve

-2-

 

Regulation Z and any State consumer credit laws; and (h) where the Collateral consists of
equipment, Debtor is not in the business of selling goods of the kind included within such
Collateral, and Debtor acknowledges that no sale or other disposition of any such Collateral,
including without limitation, any such Collateral which Debtor may deem to be surplus, has been
consented to or acquiesced in by Bank, except as specifically set forth in writing by Bank.

     6. COVENANTS OF DEBTOR

     (a) Debtor agrees in general: (i) to pay Indebtedness secured hereby when due; (ii) to
indemnify Bank against all losses, claims, demands, liabilities and expenses of every kind caused
by property subject hereto; (iii) to pay all reasonable costs and expenses, including reasonable
attorneys’ fees, incurred by Bank in the perfection and preservation of the Collateral or Bank’s
interest therein and/or the realization, enforcement and exercise of Bank’s rights, powers and
remedies hereunder; (iv) to permit Bank to exercise its powers; (v) to execute and deliver such
documents as Bank reasonably deems necessary to create, perfect and continue the security interests
contemplated hereby; (vi) not to change its name, and as applicable, its chief executive office,
its principal residence or the jurisdiction in which it is organized and/or registered without
giving Bank prior written notice thereof; (vii) not to change the places where Debtor keeps any
Collateral or Debtor’s records concerning the Collateral and Proceeds without giving Bank prior
written notice of the address to which Debtor is moving same; and (viii) to cooperate with Bank in
perfecting all security interests granted herein and in obtaining such agreements from third
parties as Bank reasonably deems necessary, proper or convenient in connection with the
preservation, perfection or enforcement of any of its rights hereunder.

     (b) Debtor agrees with regard to the Collateral and Proceeds, unless Bank agrees otherwise in
writing: (i) that Bank is authorized to file financing statements in the name of Debtor to perfect
Bank’s security interest in Collateral and Proceeds; (ii) where applicable, to insure the
Collateral with Bank named as loss payee, in form, substance and amounts, under agreements, against
risks and liabilities, and with insurance companies reasonably satisfactory to Bank; (iii) where
applicable, to operate the Collateral in accordance with all applicable statutes, rules and
regulations relating to the use and control thereof, and not to use any Collateral for any unlawful
purpose or in any way that would void any insurance required to be carried in connection therewith;
(iv) not to remove the Collateral from Debtor’s premises, except (A) for deliveries to buyers in
the ordinary course of Debtor’s business and (B) Collateral which consists of mobile goods as
defined in the Arizona Uniform Commercial Code, in which case Debtor agrees not to remove or permit
the removal of such Collateral from its state of domicile for a period in excess of thirty (30)
calendar days; (v) to pay when due all license fees, registration fees and other charges in
connection with any Collateral; (vi) not to permit any lien on the Collateral or Proceeds,
including without limitation, liens arising from repairs to or storage of the Collateral, except in
favor of Bank; (vii) not to sell, hypothecate or dispose of, nor permit the transfer by operation
of law of, any of the Collateral or Proceeds or any interest therein, except sales of inventory to
buyers in the ordinary course of Debtor’s business; (viii) to permit Bank to inspect the Collateral
at any time upon reasonable prior notice; (ix) to keep, in accordance with generally accepted
accounting principles, complete and accurate records regarding all Collateral and Proceeds, and to
permit Bank to inspect the same and make copies thereof at any reasonable time; (x) if requested by
Bank, to receive and use reasonable diligence to collect Collateral consisting of accounts and
other rights to payment and Proceeds, in trust and as the property of Bank, and to immediately
endorse as appropriate and deliver such Collateral and Proceeds to Bank daily in the exact form in
which they are received together with a collection report in form satisfactory to Bank if Debtor is
in default hereunder; (xi) not to commingle Collateral or Proceeds, or collections thereunder, with
other property; (xii) to give

-3-

 

only normal allowances and credits and to advise Bank thereof immediately in writing if they affect
any rights to payment or Proceeds in any material respect; (xiii) from time to time, when requested
by Bank, to prepare and deliver a schedule of all Collateral and Proceeds subject to this Agreement
and to assign in writing and deliver to Bank all accounts, contracts, leases and other chattel
paper, instruments, documents and other evidences thereof; (xiv) in the event Bank elects to
receive payments of rights to payment or Proceeds hereunder, to pay all reasonable expenses
incurred by Bank in connection therewith, including expenses of accounting, correspondence,
collection efforts, reporting to account or contract debtors, filing, recording, record keeping and
expenses incidental thereto; and (xv) to provide any service and do any other acts which may be
necessary to maintain, preserve and protect all Collateral and, as appropriate and applicable, to
keep all Collateral in good and saleable condition, to deal with the Collateral in accordance with
the standards and practices adhered to generally by users and manufacturers of like property, and
to keep all Collateral and Proceeds free and clear of all defenses, rights of offset and
counterclaims.

     7. POWERS OF BANK. Debtor appoints Bank its true attorney in fact to perform any of the
following powers, which are coupled with an interest, are irrevocable until termination of this
Agreement and may be exercised from time to time by Bank’s officers and employees, or any of them,
upon an Event of Default: (a) to perform any obligation of Debtor hereunder in Debtor’s name or
otherwise; (b) to give notice to account debtors or others of Bank’s rights in the Collateral and
Proceeds, to enforce or forebear from enforcing the same and make extension and modification
agreements with respect thereto; (c) to release persons liable on Collateral or Proceeds and to
give receipts and acquittances and compromise disputes in connection therewith; (d) to release or
substitute security; (e) to resort to security in any order; (f) to prepare, execute, file, record
or deliver notes, assignments, schedules, designation statements, financing statements,
continuation statements, termination statements, statements of assignment, applications for
registration or like papers to perfect, preserve or release Bank’s interest in the Collateral and
Proceeds; (g) to receive, open and read mail addressed to Debtor with respect to the Collateral;
(h) to take cash, instruments for the payment of money and other property to which Bank is
entitled; (i) to verify facts concerning the Collateral and Proceeds by inquiry of obligors
thereon, or otherwise, in its own name or a fictitious name; (j) to endorse, collect, deliver and
receive payment under instruments for the payment of money constituting or relating to Proceeds;
(k) to prepare, adjust, execute, deliver and receive payment under insurance claims, and to collect
and receive payment of and endorse any instrument in payment of loss or returned premiums or any
other insurance refund or return, and to apply such amounts received by Bank, at Bank’s sole
option, toward repayment of the Indebtedness or, where appropriate, replacement of the Collateral;
(l) to exercise all rights, powers and remedies which Debtor would have, but for this Agreement,
with respect to all Collateral and Proceeds subject hereto; (m) to enter onto Debtor’s premises in
inspecting the Collateral upon reasonable prior notice; (n) to make withdrawals from and to close
deposit accounts or other accounts with any financial institution, wherever located, into which
Proceeds may have been deposited, and to apply funds so withdrawn to payment of the Indebtedness if
Debtor is in default hereunder; (o) to preserve or release the interest evidenced by chattel paper
to which Bank is entitled hereunder and to endorse and deliver any evidence of title incidental
thereto; and (p) to do all acts and things and execute all documents in the name of Debtor or
otherwise, deemed by Bank as necessary, proper and convenient in connection with the preservation,
perfection or enforcement of its rights hereunder.

     8. PAYMENT OF PREMIUMS. TAXES, CHARGES, LIENS AND ASSESSMENTS. Debtor agrees to pay, prior to
delinquency, all insurance premiums, taxes, charges, liens and assessments against the Collateral
and Proceeds, and upon the failure of Debtor to do so, Bank

-4-

 

at its option may pay any of them and shall be the sole judge of the legality or validity thereof
and the amount necessary to discharge the same. Any such payments made by Bank shall be obligations
of Debtor to Bank, due and payable immediately upon demand, together with interest at a rate
determined in accordance with the provisions of this Agreement, and shall be secured by the
Collateral and Proceeds, subject to all terms and conditions of this Agreement.

     9. EVENTS OF DEFAULT. The occurrence of any of the following shall constitute an “Event of Default”
under this Agreement: (a) any default in the payment or performance of any obligation, or any
defined event of default this Agreement, the Credit Agreement or any of the Loan Documents (as
defined in the Credit Agreement; (b) any representation or warranty made by Debtor herein shall
prove to be incorrect, false or misleading in any material respect when made; (c) Debtor shall fail
to observe or perform any obligation or agreement contained herein; (d) any impairment of the
rights of Bank in any Collateral or Proceeds, or any attachment or like levy on any property of
Debtor; and (e) Bank, in good faith, believes any or all of the Collateral and/or Proceeds to be in
danger of misuse, dissipation, commingling, loss, theft, damage or destruction, or otherwise in
jeopardy or unsatisfactory in character or value.

     10. REMEDIES. Upon the occurrence of any Event of Default, Bank shall have the right to
declare immediately due and payable all or any Indebtedness secured hereby and to terminate any
commitments to make loans or otherwise extend credit to Debtor. Bank shall have all other rights,
powers, privileges and remedies granted to a secured party upon default under the Arizona Uniform
Commercial Code or otherwise provided by law, including without limitation, the right (a) to
contact all persons obligated to Debtor on any Collateral or Proceeds and to instruct such persons
to deliver all Collateral and/or Proceeds directly to Bank, and (b) to sell, lease, license or
otherwise dispose of any or all Collateral. All rights, powers, privileges and remedies of Bank
shall be cumulative. No delay, failure or discontinuance of Bank in exercising any right, power,
privilege or remedy hereunder shall affect or operate as a waiver of such right, power, privilege
or remedy; nor shall any single or partial exercise of any such right, power, privilege or remedy
preclude, waive or otherwise affect any other or further exercise thereof or the exercise of any
other right, power, privilege or remedy. Any waiver, permit, consent or approval of any kind by
Bank of any default hereunder, 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. It is agreed that public
or private sales or other disposition, for cash or on credit, to a wholesaler or retailer or
investor, or user of property of the types subject to this Agreement, or public auctions, are all
commercially reasonable since differences in the prices generally realized in the different kinds
of dispositions are ordinarily offset by the differences in the costs and credit risks of such
dispositions. While an Event of Default exists: (a) Debtor will deliver to Bank from time to time,
as requested by Bank, current lists of all Collateral and Proceeds; (b) Debtor will not dispose of
any Collateral or Proceeds except on terms approved by Bank; (c) at Bank’s request, Debtor will
assemble and deliver all Collateral and Proceeds, and books and records pertaining thereto, to Bank
at a reasonably convenient place designated by Bank; and (d) Bank may, without notice to Debtor,
enter onto Debtor’s premises and take possession of the Collateral. With respect to any sale or
other disposition by Bank of any Collateral subject to this Agreement, Debtor hereby expressly
grants to Bank the right to sell such Collateral using any or all of Debtor’s trademarks, trade
names, trade name rights and/or proprietary labels or marks. Debtor further agrees that Bank shall
have no obligation to process or prepare any Collateral for sale or other disposition.

     11. DISPOSITION OF COLLATERAL AND PROCEEDS; TRANSFER OF INDEBTEDNESS. In disposing of
Collateral hereunder, Bank may disclaim all warranties of title, possession, quiet enjoyment and
the like. Any proceeds of any disposition of any

-5-

 

Collateral or Proceeds, or any part thereof, may be applied by Bank to the payment of expenses
incurred by Bank in connection with the foregoing, including reasonable attorneys’ fees, and the
balance of such proceeds may be applied by Bank toward the payment of the Indebtedness in such
order of application as Bank may from time to time elect. Upon the transfer of all or any part of
the Indebtedness, Bank may transfer all or any part of the Collateral or Proceeds in accordance
with this Agreement and the Arizona Uniform Commercial Code and shall be fully discharged
thereafter from all liability and responsibility with respect to any of the foregoing so
transferred, and the transferee shall be vested with all rights and powers of Bank hereunder with
respect to any of the foregoing so transferred; but with respect to any Collateral or Proceeds not
so transferred, Bank shall retain all rights, powers, privileges and remedies herein given.

     12. STATUTE OF LIMITATIONS. Until all Indebtedness shall have been paid in full and all
commitments by Bank to extend credit to Debtor under the Credit Agreement, if any, have been
terminated, the power of sale or other disposition and all other rights, powers, privileges and
remedies granted to Bank hereunder shall continue to exist and may be exercised by Bank at any time
and from time to time irrespective of the fact that the Indebtedness or any part thereof may have
become barred by any statute of limitations, or that the personal liability of Debtor may have
ceased, unless such liability shall have ceased due to the payment in full of all Indebtedness
secured hereunder.

     13. MISCELLANEOUS. When there is more than one Debtor named herein: (a) the word “Debtor”
shall mean all or any one or more of them as the context requires; (b) the obligations of each
Debtor hereunder are joint and several; and (c) until all Indebtedness shall have been paid in
full, no Debtor shall have any right of subrogation or contribution, and each Debtor hereby waives
any benefit of or right to participate in any of the Collateral or Proceeds or any other security
now or hereafter held by Bank. Debtor hereby waives any right to require Bank to (i) proceed
against Debtor or any other person, (ii) proceed against or exhaust any security from Debtor or any
other person, (iii) perform any obligation of Debtor with respect to any Collateral or Proceeds,
and (d) make any presentment or demand, or give any notice of nonpayment or nonperformance,
protest, notice of protest or notice of dishonor hereunder or in connection with any Collateral or
Proceeds. Debtor further waives any right to direct the application of payments or security for any
Indebtedness of Debtor or indebtedness of customers of Debtor.

     14. NOTICES. All notices, requests and demands required under this Agreement must be in
writing, addressed to Bank at the address specified in any other loan documents entered into
between Debtor and Bank and to Debtor at the address of its chief executive office (or principal
residence, if applicable) specified below or to such other address as any party may designate by
written notice to each other party, and shall be deemed to have been given or made as follows: (a)
if personally delivered, upon delivery; (b) if sent by mail, upon the earlier of the date of
receipt or three (3) days after deposit in the U.S. mail, first class and postage prepaid; and (c)
if sent by telecopy, upon receipt.

     15. COSTS, EXPENSES AND ATTORNEYS’ FEES. Debtor shall pay to Bank immediately upon demand the
full amount of all reasonable 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 exercising any right, power, privilege or remedy
conferred by this Agreement or in the enforcement thereof, 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

-6-

 

other person) relating to Debtor or in any way affecting any of the Collateral or Bank’s ability to
exercise any of its rights or remedies with respect thereto. All of the foregoing shall be paid by
Debtor 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. No such payment
shall be due if Bank is at fault with respect to such matter, Bank has breached this Agreement, the
Credit Agreement, or any of the documents entered into as contemplated or required by the Credit
Agreement, or in the event of Bank’s gross negligence or willful misconduct. There shall likewise
be no payment due if it is determined that Bank wrongfully asserted a claim for enforcement
hereunder.

     16. SUCCESSORS; ASSIGNS; AMENDMENT. This Agreement shall be binding upon and inure to the
benefit of the heirs, executors, administrators, legal representatives, successors and assigns of
the parties, and may be amended or modified only in writing signed by Bank and Debtor.

     17. SEVERABILITY OF PROVISIONS. If any provision of this Agreement shall be held to be
prohibited by or invalid under applicable law, such provision shall be ineffective only to the
extent of such prohibition or invalidity, without invalidating the remainder of such provision or
any remaining provisions of this Agreement.

     18. GOVERNING LAW. This Agreement shall be governed by and construed in accordance with the
laws of the State of Arizona.

     Debtor warrants that Debtor is an organization registered under the laws of the State of
Delaware or the State of Arizona, as applicable.

     Debtor warrants that its chief executive office (or principal residence, if applicable) is
located at the following address: 22601 N. 19th Avenue, Suite 210, Phoenix, Arizona
85027, Attn: Trevor Hill.

     19. AMENDMENT AND RESTATEMENT. This Amended and Restated Security Agreement amends, restates
and replaces that certain Security Agreement dated July 7, 2005 in favor of Bank (the “Original
Security Agreement”). This Amended and Restated Security Agreement supersedes the Original Security
Agreement and to the extent that the obligations covered by the Original Security Agreement
constitute a single, ongoing obligation of Debtor they continue to be secured by this Amended and
Restated Security Agreement.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

-7-

 

IN WITNESS WHEREOF, this Agreement has been duly executed as of December 9, 2005.

	 	 	 	 	 
	DEBTOR:

GLOBAL WATER RESOURCES, L.L.C.,

a Delaware limited liability company

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

	 	 	 	 	 
	GLOBAL WATER MANAGEMENT, LLC,

a Delaware limited liability company

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

	 	 	 	 	 
	GLOBAL WATER RESOURCES, INC.,

a Delaware corporation

 	 	 
	By:  	/s/ Trevor Hill
 	 	 
	 	Trevor Hill, President 	 	 
	 	 	 	 
	 

-8-exv10w23

EXHIBIT
10.23

EMPLOYMENT AGREEMENT

     THIS AGREEMENT is made as of the                      day of September, 2003 by and among Global Water
Resources LLC, a limited liability company formed and capitalized under the laws of the State of
Delaware (the “Employer”), and Trevor Hill, a resident of the State of Arizona (the “Executive”).

RECITALS:

     WHEREAS, the Employer desires to employ the Executive as an Officer and Managing Member of the
Employer and the Executive desires to accept such employment.

     NOW, THEREFORE, in consideration of the above premises and the mutual agreements hereinafter
set forth, the parties hereby agree as follows:

1. Definitions. The defined terms used in this Agreement are set forth in Section 22
below.

2. Employment and Duties.

     2.1 Employment. The Employer hereby employs the Executive on the terms and conditions
set forth in this Agreement and the Executive accepts such employment. It is agreed and
acknowledged by the Executive that his employment hereunder is at the will of the Employer and may
be terminated at any time.

     2.2 Position. The Executive is employed initially as the President of the Employer,
subject to the direction of the Managing Members of the Employer (the “Managing Members”) or its
designee(s). Executive shall perform and discharge well and faithfully the duties which may be
assigned to him from time to time by the Employer in connection with the conduct of its business.
The duties and responsibilities of the Executive are set forth on Exhibit A attached
hereto.

     2.3 Full-Time Status. In addition to the duties and responsibilities specifically
assigned to the Executive pursuant to Section 2.2 hereof, the Executive shall:

     (a) devote substantially all of his time, energy and skill during regular
business hours to the performance of the duties of his employment (reasonable
vacations and reasonable absences due to illness excepted) and faithfully and
industriously perform such duties;

     (b) diligently follow and implement all reasonable and lawful management
policies and decisions communicated to him by the Managing Members; and

     (c) timely prepare and forward to the Managing Members all reports and
accountings as may be requested of the Executive.

 

 

     2.4 Permitted Activities. The Executive shall devote substantially all of his
business time, attention and energies to the Business of the Employer and shall not during the Term
be engaged (whether or not during normal business hours) in any other business or professional
activity, whether or not such activity is pursued for gain, profit or other pecuniary advantage.
This shall not, however, be construed to prevent the Executive from:

     (a) investing his personal assets in businesses which (subject to clause (b)
below) are not in competition with the Business of the Employer and which will not
require any substantial and regular services on the part of the Executive in their
operation or affairs;

     (b) purchasing securities in any corporation whose securities are regularly
traded provided that such purchase shall not result in him collectively owning
beneficially at any time five percent (5%) or more of the equity securities of any
business in competition with the Business of the Employer; and

     (c) participating in civic and professional affairs and organizations and
conferences, preparing or publishing papers or books or teaching so long as the
Managing Members approve of such activities prior to the Executive’s engaging in
them.

3. Compensation. The Executive shall receive the following salary and benefits during the
Term, except as otherwise provided below:

     3.1 Base Salary. During the Initial Term, the Executive shall be compensated at a
base rate of $200,000.00 per year (the “Base Salary”). The Executive’s Base Salary shall be
reviewed by the Managing Members at least annually. Base Salary shall be payable in accordance
with the Employer’s normal payroll practices.

     3.2 Incentive Compensation. The Executive shall be entitled to annual bonus
compensation, if any, as determined in the sole discretion of the Managing Members or pursuant to
any incentive compensation program as may be adopted from time to time by the Employer.

     3.3 Benefits. In addition to the benefits specifically described in this Agreement,
the Executive shall be entitled to such benefits as may be authorized by the Managing Members from
time to time for executives of the Employer. All such benefits shall be awarded and administered
in accordance with the Employer’s standard policies and practices. Such benefits may include, by
way of example only, profit-sharing plans, retirement or investment funds, dental, health, life and
disability insurance benefits and such other benefits as the Employer deems appropriate.

     3.4 Business Expenses; Memberships. The Employer specifically agrees to reimburse the
Executive for:

     (a) reasonable and necessary business (including travel) expenses incurred by
him in the performance of his duties hereunder; and

2

 

     (b) the dues and business related expenditures, including initiation fees,
associated with memberships in professional associations which are commensurate with
his position that are incurred after the Effective Date; provided, however, that the
Executive shall, as a condition of reimbursement under 3.4(a) or (b), submit
verification of the nature and amount of such expenses in accordance with
reimbursement policies from time to time adopted by the Employer and in sufficient
detail to comply with rules and regulations promulgated by the Internal Revenue
Service.

     3.5 Withholding. The Employer may deduct from each payment of compensation hereunder
all amounts required to be deducted and withheld in accordance with applicable federal and state
income, FICA and other withholding requirements.

4. Term and Termination.

     4.1 Term. This Agreement shall remain in effect for the Term. While this Agreement
remains in effect, at the end of the Initial Term and at the end of any twelve-month extension
thereof, this Agreement shall automatically be extended for a successive twelve-month period unless
either party gives written notice to the other of its intent not to extend this Agreement. Such
written notice shall be given not less than sixty (60) days prior to the end of the Initial Term or
each such successive twelve-month period. In the event such notice of non-extension is properly
given, this Agreement shall terminate at the end of the Term then in effect.

     4.2 Termination. During the Term, the employment of the Executive under this
Agreement may be terminated as follows:

     4.2.1 By the Employer:

     (a) For Cause, upon written notice to the Executive pursuant to Section 11
hereof, where the notice has been approved by the Managing Members;

     (b) Without Cause at any time, provided that the Employer shall give the
Executive thirty (30) days’ prior written notice of its intent to terminate, in
which event the Employer shall be required to continue to meet its obligations to
the Executive under Section 3.1 for a period equal to six (6) months following the
termination; or

     (c) Upon the Disability of Executive at any time, provided that the Employer
shall give the Executive thirty (30) days’ prior written notice of its intent to
terminate, in which event, the Employer shall be required to continue to meet its
obligations under Section 3.1 for six (6) months following the termination or until
the Executive begins receiving payments under the Employer’s long-term disability
policy, if any, whichever occurs first.

3

 

     4.2.2 At any time upon mutual, written agreement of the parties.

     4.2.3 Notwithstanding anything in this Agreement to the contrary, the Term shall end
automatically upon the Executive’s death.

     4.3 Effect of Termination. Upon termination of the Executive’s employment hereunder,
the Employer shall have no further obligations to the Executive or the Executive’s estate with
respect to this Agreement, except for the payment of salary and bonus amounts, if any, accrued
pursuant to Sections 3.1 and 3.2 hereof and unpaid as of the effective date of the termination of
employment and for salary payments set forth in Sections 4.2.1(b) and (c); and/or expenses under
Section 3.4 as applicable. Nothing contained herein shall limit or impinge upon any other rights
or remedies of the Employer or the Executive under any other agreement or plan, including
specifically the Operating Agreement of the Employer to which the Executive is a party or of which
the Executive is a beneficiary. In the event the Executive’s employment is terminated for cause
pursuant to Section 4.2.1(a) and assuming the Executive is then serving as a Managing Member of the
Employer, the Executive shall tender his resignation as a Managing Member, with such resignation to
be effective as of the same date as his termination of employment.

5. Employer Information.

     5.1 Ownership of Employer Information. All Employer Information received or
developed by the Executive while employed by the Employer will remain the sole and exclusive
property of the Employer.

     5.2 Obligations of the Executive. The Executive agrees:

     (a) to hold Employer Information in strictest confidence;

     (b) not to duplicate, reproduce, distribute, disclose or otherwise disseminate
Employer Information or any physical embodiments of Employer Information; and

     (c) in any event, not to take any action causing or fail to take any action
necessary in order to prevent any Employer Information from losing its character or
ceasing to qualify as Confidential Information or a Trade Secret.

Notwithstanding the foregoing, Executive shall be entitled to disclose Employer Information if and
only to the extent he is required to do so under applicable law or under order of a court of
competent jurisdiction or a valid administrative or congressional subpoena, provided that Executive
has received written advice of counsel that such disclosure is required and further provided, that
Executive gives the Employer prompt oral and written notice of any such requirement so that the
Employer may seek a protective order or other appropriate remedy. The parties will cooperate, each
at its expense, in the Employer’s efforts to obtain such remedies, but this provision will not be
construed to require Executive to undertake any such legal proceedings on its own behalf. Unless
such disclosed Employer Information is made public as a result of the disclosure required under
applicable law or under order of a court of competent jurisdiction or a

4

 

valid administrative or congressional subpoena, such disclosed Employer Information shall remain
confidential thereafter. This Section 5 shall survive for a period of two (2) years following
termination of this Agreement for any reason with respect to Confidential Information, and shall
survive termination of this Agreement for any reason for so long as is permitted by applicable law,
with respect to Trade Secrets.

     5.3 Delivery upon Request or Termination. Upon request by the Employer, and in any
event upon termination of his employment with the Employer, the Executive will promptly deliver to
the Employer all property belonging to the Employer, including, without limitation, all Employer
Information then in his possession or control.

6. Non-Competition. The Executive agrees that during his employment by the Employer
hereunder and, in the event of his termination:

     (a) by the Employer for Cause or without Cause pursuant to either Section 4.2.1(a) and
(b),

     (b) by the Executive and the Employer pursuant to Section 4.2.2, or

     (c) by the Executive, with or without notice,

he will not (except on behalf of or with the prior written consent of the Employer), within any
county in the Area, either engage in or carry on, directly or indirectly, on his own behalf or in
the service or on behalf of others, as an executive employee member of a limited liability company,
partner of a partnership or as a stockholder, investor, officer, director, trustee or as an
employee, agent, associate, consultant or in any other capacity engage in any business which is the
same as or essentially the same as the Business of the Employer, its successors and permitted
assigns, that was conducted during Executive’s employment. The parties intend that the covenants
contained in this Section 6 shall be deemed to be a series of separate covenants, one for each
county in the Area, and except for geographic coverage, each such separate covenant shall be
identical to the covenants contained in this Section 6. This noncompete agreement shall continue
for twenty-four (24) months after the Executive’s employment is so terminated; provided, that if
Executive’s employment is terminated without Cause, this noncompete agreement shall continue for
six (6) months after the Executive’s employment is so terminated.

7. Non-Solicitation of Customers. The Executive agrees that during his employment by the
Employer hereunder and, in the event of his termination:

     (a) by the Employer for Cause or without Cause pursuant to either Section 4.2.1(a) and
(b),

     (b) by the Executive and the Employer pursuant to Section 4.2.2, or

     (c) by the Executive, with or without notice,

he will not (except on behalf of or with the prior written consent of the Employer), within any
county in the Area, on his own behalf or in the service or on behalf of others, solicit, divert or
appropriate or attempt to solicit, divert or appropriate, any business from any of the Employer’s
customers, including actively sought prospective customers, with whom the Executive has or had
material contact during the last two (2) years of his employment, for purposes of providing

5

 

products or services that are competitive with the Business of the Employer, its successors and
permitted assigns, that was conducted during the Executive’s employment. The parties intend that
the covenants contained in this Section 6 shall be deemed to be a series of separate covenants, one
for each county in the Area, and except for geographic coverage, each such separate covenant shall
be identical to the covenants contained in this Section 7. This nonsolicitation agreement shall
continue for twenty-four (24) months after the Executive’s employment is so terminated; provided,
that if Executive’s employment is terminated without Cause, this nonsolicitation agreement shall
continue for six (6) months after the Executive’s employment is so terminated.

8. Non-Solicitation of Employees. The Executive agrees that during his employment by the
Employer hereunder and, in the event of his termination:

     (a) by the Employer for Cause or without Cause pursuant to either Section 4.2.1(a) and
(b),

     (b) by the Executive and the Employer pursuant to Section 4.2.2, or

     (c) by the Executive, with or without notice,

he will not, within the Area, on his own behalf or in the service or on behalf of others, solicit,
recruit or hire away or attempt to solicit, recruit or hire away, any employee of the Employer or
its Affiliates to another person or entity providing products or services that are competitive with
the Business of the Employer, whether or not:

     (x) such employee is a full-time employee or a temporary employee of the Employer or
its Affiliates,

     (y) such employment is pursuant to written agreement, and

     (z) such employment is for a determined period or is at will.

     This noncompete agreement shall continue for twenty-four (24) months after the Executive’s
employment is so terminated; provided, that if Executive’s employment is terminated without Cause,
this noncompete agreement shall continue for six (6) months after the Executive’s employment is so
terminated.

9. Remedies. The Executive agrees that the covenants contained in Sections 5 through 8 of
this Agreement are of the essence of this Agreement; that each of the covenants is reasonable and
necessary to protect the Business of the Employer, its interests and properties, and that
irreparable loss and damage will be suffered by the Employer should he breach any of the covenants.
Therefore, the Executive agrees and consents that, in addition to all the remedies provided by law
or in equity, the Employer shall be entitled to a temporary restraining order and temporary and
permanent injunctions to prevent a breach or contemplated breach of any of the covenants. The
Employer and the Executive agree that all remedies available to the Employer or the Executive, as
applicable, shall be cumulative.

10. Severability. The parties agree that each of the provisions included in this Agreement
is separate, distinct and severable from the other provisions of this Agreement and that the
invalidity or unenforceability of any Agreement provision shall not affect the validity or
enforceability of any other provision of this Agreement. Further, if any provision of this
Agreement is ruled invalid or

6

 

unenforceable by a court of competent jurisdiction because of a conflict between the provision and
any applicable law or public policy, the provision shall be redrawn to make the provision
consistent with and valid and enforceable under the law or public policy.

11. Notices. Any notice required or permitted under this Agreement shall be effective only
if it is in writing and (i) personally delivered, (ii) sent by U.S. mail, postage prepaid, (iii)
sent by a nationally recognized overnight delivery service, with delivery confirmed, (iv)
telecopied, if confirmed with an error-free transmission report, or (v) e-mailed to such e-mail
address as shall have been furnished to the notifying party, with delivery confirmed, addressed as
set forth on Exhibit B attached hereto. Such notices shall be deemed to have been duly given
either five (5) business days after the date of mailing by U.S. mail as described above or if
otherwise sent, on the business day of receipt. Notices delivered after 5:00 p.m. shall be
considered received on the next business day. A party to this Agreement may alter the address or
telecopy number to which notices are to be sent by giving notice of such change to the Managing
Member in conformity with the provisions of this Section 11.

12. Assignment. Neither party hereto may assign or delegate this Agreement or any of its
rights and obligations hereunder without the written consent of the other party to this Agreement.

13. Waiver. A waiver by one party to this Agreement of any breach of this Agreement by the
other party to this Agreement shall not be effective unless in writing, and no waiver shall operate
or be construed as a waiver of the same or another breach on a subsequent occasion.

14. Exhibits and Schedules. Any reference to an Exhibit to this Agreement in this
Agreement shall be deemed to include any schedules to such Exhibit. Each of the Exhibits referred
to in this Agreement is hereby incorporated by reference in this Agreement as if it were set out in
full in the text of this Agreement.

15. Attorneys’ Fees. In the event that disputes and/or litigation ensue between the
parties concerning the provisions of this Agreement, each party shall bear its own attorneys’ fees.

16. Applicable Law. This Agreement shall be construed and enforced under and in accordance
with the laws of the State of Arizona.

17. Interpretation. Words importing any gender include all genders. Words importing the
singular form shall include the plural and vice versa. The terms “herein”, “hereunder”, “hereby”,
“hereto”, “hereof” and any similar terms refer to this Agreement. Any captions, titles or headings
preceding the text of any article, section or subsection herein are solely for convenience of
reference and shall not constitute part of this Agreement or affect its meaning, construction or
effect.

18. Entire Agreement. This Agreement embodies the entire and final agreement of the
parties on the subject matter stated in this Agreement. No amendment or modification of this
Agreement shall be valid or binding upon the Employer or the Executive unless made in writing and
signed by both parties. All prior understandings and agreements relating to the subject matter of
this Agreement are hereby expressly terminated.

7

 

19. Rights of Third Parties. Nothing herein expressed is intended to or shall be construed
to confer upon or give to any person, firm or other entity, other than the parties hereto and their
permitted assigns, any rights or remedies under or by reason of this Agreement.

20. Survival. The obligations of the Executive pursuant to Sections 4, 5, 6, 7, 8 and 9
shall survive the termination of the employment of the Executive hereunder for the period
designated under each of those respective Sections.

21. Time is of Essence. Time is of the essence in the performance of each and every
obligation contained in this Agreement.

22. Definitions. Whenever used in this Agreement, the following terms and their variant
forms shall have the meaning set forth below:

     22.1 “Agreement” shall mean this Agreement and any exhibits incorporated herein
together with any amendments hereto made in the manner described in this Agreement.

     22.2 “Affiliate” shall mean any business entity which controls the Employer, is
controlled by or is under common control with the Employer.

     22.3 “Area” shall mean the geographic area within the boundaries of Arizona and Texas.
It is the express intent of the parties that the Area as defined herein is the area where the
Executive performs services on behalf of the Employer under this Agreement as of the Effective
Date.

     22.4 “Business of the Employer” shall mean the business conducted by the Employer,
which is the business of acquiring and operating water and wastewater utilities in the Area.

     22.5 “Cause” shall mean:

     22.5.1 With respect to termination by the Employer:

     (a) Conduct by the Executive that amounts to fraud or dishonesty in the
performance of his duties and responsibilities hereunder;

     (b) Arrest for, charged in relation to (by criminal information, indictment or
otherwise), or conviction of the Executive during the Term of this Agreement of a
crime involving breach of trust or moral turpitude;

     (c) Conduct by the Executive that results in removal from his position as an
officer or executive of Employer pursuant to a written order by any regulatory
agency with authority or jurisdiction over Employer.

     (d) A material breach of the terms of this Agreement by the Executive,
including, without limitation, gross and willful failure by the Executive to perform

8

 

his duties and responsibilities in the manner and to the extent required under
this Agreement, which failure remains uncured after the expiration of ten (10) days
following the delivery of written notice of such breach to the Executive by
Employer. Such notice shall (i) specifically identify the duties in this Agreement
that the Managing Members believe the Executive has failed to perform, and (ii)
state the facts upon which the Managing Members made such determination.

     22.6 “Employer Information” means Confidential Information and Trade Secrets.

     22.7 “Confidential Information” means data and information relating to the Business of
the Employer (which does not rise to the status of a Trade Secret) which is or has been disclosed
to the Executive or of which the Executive became aware as a consequence of or through the
Executive’s relationship to the Employer and which has value to the Employer and is not generally
known to its competitors. Confidential Information shall not include any data or information that
has been voluntarily disclosed to the public by the Employer (except where such public disclosure
has been made by the Executive without authorization) or that has been independently developed and
disclosed by others, or that otherwise enters the public domain through lawful means.

     22.8 “Disability” shall mean the inability of the Executive to perform each of his
material duties under this Agreement for the duration of the short-term disability period under the
Employer’s policy then in effect as certified by a physician chosen by the Employer and reasonably
acceptable to the Executive.

     22.9 “Effective Date” shall mean the date October ___, 2003.

     22.10 “Initial Term” shall mean that period of time commencing on October ___, 2003
(the “Beginning Date”) and running until the close of business on the last business day immediately
preceding the fifth (5th) anniversary of the Beginning Date.

     22.11 “Operating Agreement” shall mean that Operating Agreement dated October ___, 2003
by and between Levine Investments, LP, Trevor Hill, Leo Commandeur and Dan Cracchiolo.

     22.12 “Term” shall mean the earlier of (a) the last day of the Initial Term or most
recent subsequent renewal period or (b) any earlier termination of employment of the Executive
under this Agreement as provided for in Section 4.

     22.13 “Trade Secrets” means Employer information including, but not limited to,
technical or nontechnical data, formulas, patterns, compilations, programs, devices, methods,
techniques, drawings, processes, financial data, financial plans, product plans or lists of actual
or potential customers or suppliers which:

     (a) derives economic value, actual or potential, from not being generally known
to, and not being readily ascertainable by proper means by, other persons who can
obtain economic value from its disclosure or use; and

9

 

     (b) is the subject of efforts that are reasonable under the circumstances to
maintain its secrecy.

10

 

     IN WITNESS WHEREOF, the Employer and the Executive have executed and delivered this Agreement
as of the date first shown above.

	 	 	 	 	 
	 	GLOBAL WATER RESOURCES, LLC

 	 
	 	By:  	
 	 
	 	 	William S. Levine 	 
	 	 	Manager 	 
	 
	 	THE EXECUTIVE:

 	 
	 	
 	 
	 	Trevor Hill 	 
	 	 	 

11

 

	 	 	 	 	 

Exhibit A

Initial Duties of the Executive

     The initial duties of the Executive shall include the following:

	 	•	 	Execute the Employer’s plan to acquire and/or form and then operate and maintain regulated
or unregulated water and wastewater utilities.
	 
	 	•	 	Work with the Managing Members to develop a long-term strategy for the Employer to create
shareholder value.
	 
	 	•	 	Develop and recommend to the Managing Members annual business plans and budgets that support
the Employer’s long-term strategy.
	 
	 	•	 	Manage the day-to-day business affairs of the Employer.
	 
	 	•	 	Use best efforts to achieve the Employer’s financial and operating goals and objectives.
	 
	 	•	 	Implement major corporate policies.

 

 

Exhibit B

Notices

     To Employer:

Global Water Resources, LLC

1702 East Highland Avenue

Suite 310

Phoenix, AZ 85016

Attention: William S. Levine

Fax:(602) 248-0884

Email:bob@levineinvestments.com

With Copy To:

Powell, Goldstein, Frazer & Murphy LLP

16th Floor

191 Peachtree Street, NE

Atlanta, GA 30303

Attention: William B. Shearer, Jr.

Fax:(404) 572-6999

Email:wshearer@pgfm.com

To Executive:

Trevor Hill

42528 N. Back Creek Way

Anthem, AZ 85016

Fax:                                         

Email: trevor.hill@nexspringwater.com

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00142-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00142-of-00352.parquet"}]]