Document:

EX-10.11.2

 Exhibit 10.11.2 

EXECUTION COPY 
  

 
  

FIRST AMENDMENT TO LOAN AGREEMENT 

THE INDUSTRIAL DEVELOPMENT AUTHORITY 

OF THE COUNTY OF PIMA, 
 as
Issuer 
 GLOBAL WATER RESOURCES, LLC 

as Company 
 and 

U.S. BANK NATIONAL ASSOCIATION, 

as Trustee 
 amending a Loan
Agreement 
 dated as of December 1, 2006 

pertaining to 
 $54,135,000 

The Industrial Development Authority 

of the County of Pima 
 Water and
Wastewater Revenue Bonds 
 (Global Water Resources, LLC Project) 

Series 2007 
 Dated as of
November 1, 2007 
  
  

 

 TABLE OF CONTENTS 
  

							
	 	    	 	  	Page	 
		    	ARTICLE I
DEFINITIONS	  			
	 Section 1.1.
	    	Definitions	  	 	2	  
			
	 Section 1.2.
	    	Proposed Amendment to Definitions of “Debt Service Coverage
Ratio” and “Maximum Annual Debt Service”	  	 	3	  
			
		    	ARTICLE II
REPRESENTATION AND COVENANTS	  			
			
	 Section 2.1.
	    	Representations of the Issuer	  	 	4	  
			
	 Section 2.2.
	    	Representations of Covenants of the Company	  	 	5	  
			
		    	ARTICLE III
ISSUANCE OF THE SERIES 2007 BONDS AND DISBURSEMENT OF BOND PROCEEDS	  			
			
	 Section 3.1.
	    	Issuance of the Series 2007 Bonds; Application of Proceeds	  	 	10	  
			
	 Section 3.2.
	    	Disbursements from the Project Fund	  	 	11	  
			
		    	ARTICLE IV
LOAN BY ISSUER; REPAYMENT OF THE LOAN; LOAN PAYMENTS AND
ADDITIONAL PAYMENTS	  			
			
	 Section 4.1.
	    	Loan Repayment; Delivery of Notes	  	 	13	  
			
		    	ARTICLE V
MISCELLANEOUS	  			
			
	 Section 5.1.
	    	Effect of this First Amendment to Loan Agreement	  	 	15	  
			
	 Section 5.2.
	    	Notice of A.R.S. Section 38-511 – Cancellation	  	 	15	  
			
	 Section 5.3.
	    	Counterparts	  	 	15	  
			
	 Section 5.4.
	    	Consent	  	 	15	  
			
	 EXHIBIT A
	    	FORM OF SERIES 2007 PROJECT NOTE	  			
	 EXHIBIT B
	    	PAL0 VERDE WATER FACILITY PROJECT DESCRIPTION	  			
	 EXHIBIT C
	    	SANTA CRUZ WATER FACILITY PROJECT DESCRIPTION	  			
	 EXHIBIT D
	    	COST OF ISSUANCE	  			
	 EXHIBIT E
	    	FORM OF DISBURSEMENT SCHEDULE	  			

 FIRST AMENDMENT TO LOAN AGREEMENT 

THIS FIRST AMENDMENT TO LOAN AGREEMENT, (the “First Amendment to Loan Agreement”) dated as of
November 1, 2007, by and among THE INDUSTRIAL DEVELOPMENT AUTHORITY OF THE COUNTY OF PIMA (the “Issuer”), a nonprofit corporation designated as a political subdivision of the State of Arizona (the “State”), GLOBAL
WATER RESOURCES LLC, a Delaware limited liability company duly organized and validly existing under the laws of the State (the “Company”), and U.S. BANK NATIONAL ASSOCIATION (the “Trustee”) amends
and modifies that certain Loan Agreement dated as of December 1, 2006 (the “Loan Agreement”) among the Issuer, the Company and Trustee. 

W I T N E S S E T 
H: 
 WHEREAS, the Issuer has heretofore issued its Water and Wastewater Revenue Bonds (Global Water Resources,
LLC Project) Series 2006 (the “Series 2006 Bonds”), pursuant to a Trust Indenture dated as of December 1, 2006 (the “Indenture”) by and between the Issuer and U.S. Bank National Association (the “Trustee”), the
proceeds of which were used to fund a loan made to the Company, by the Issuer, pursuant to the terms of the Loan Agreement to provide financing or refinancing the costs of the acquisition, expansion, construction, improvement and equipping of
facilities for wastewater treatment and water treatment, as well as water reclamation pipelines, water pipelines, and wastewater collection pipelines, consisting of water, wastewater and reclaimed water infrastructure for water and wastewater
treatment, including water mains, sewer mains, reclaimed water mains, water treatment facilities, water distribution centers, wastewater lift stations, wastewater treatment facilities, and reclaimed water mixing and distribution centers as well as
related information and management systems, located at 41265 West Hiller Road, Maricopa, Arizona 85239 in the City of Maricopa, Arizona (collectively, the “Series 2006 Project”); and 

WHEREAS, Section 11.01 of the Indenture, permits for the amendment of the Loan Agreement not requiring consent of Holders
in connection with the issuance of Additional Bonds as specified in Section 2.04 of the Indenture; and 
 WHEREAS, the
Company has requested the execution of this First Amendment to Loan Agreement in order to facilitate the issuance of Additional Bonds to provide funds to finance or refinance the costs of the acquisition, expansion, construction, improvement and
equipping of water system major capital improvements, including a water distribution center, surface water treatment facility, water production facilities, and pipeline, and sewerage system major capital improvements, including a water reclamation
facility, sewage lift stations, reclaimed water recharge facilities and pipelines, located in the City of Maricopa and in an unincorporated area of Pinal County, Arizona south of the Ak-Chin Indian Community in the City of Maricopa’s
“Growing Smarter Planning Area” (the “Series 2007 Project”); and 
 WHEREAS, the Issuer has determined
to make amounts available in order to fund a loan to the Company in the principal amount of $54,135,000 evidenced by this First Amendment to Loan Agreement (the “Loan”); and 

WHEREAS, in order to provide funds necessary to enable the Issuer to make the loan and pay certain related costs, the Issuer,
pursuant to the Indenture, as amended by the First 

 
Supplemental Trust Indenture of even date herewith by and between the Issuer and Trustee (the “First Supplemental Indenture”), has authorized the issuance of its revenue bonds
designated as “Water and Wastewater Revenue Bonds (Global Water Resources, LLC Project) Series 2007” in the principal amount of $54,135,000 (the “Series 2007 Bonds” and together with the Series 2006 Bonds and any Additional
Bonds, the “Bonds”); and 
 WHEREAS, the Issuer and Trustee have received an opinion from Bond Counsel meeting the
requirements of Section 2.04 of the Indenture; and 
 WHEREAS, in reliance upon such opinion from Bond Counsel, the
Issuer is willing to execute and deliver this First Amendment to Loan Agreement; and 
 WHEREAS, all things necessary to
make the Loan Agreement as amended hereby the valid, binding and legal obligations of the Company, enforceable in accordance with its terms, have been done and performed, and the execution and delivery of this First Amendment to Loan Agreement has
been duly authorized; and 
 WHEREAS, capitalized terms used in this First Amendment to Loan Agreement and not otherwise
defined herein shall have the meanings ascribed thereto in the Indenture, the Loan Agreement or the First Supplemental Indenture. 

NOW, THEREFORE, the parties hereto agree that the Loan Agreement shall be and hereby is amended as set forth herein, as
authorized by Section 11.01 of the Indenture. 
 ARTICLE I 

DEFINITIONS 

Section 1.1. Definitions.    Capitalized terms used in this First Amendment to Loan
Agreement and not otherwise defined herein shall have the meanings ascribed thereto in the Indenture, the Loan Agreement or the First Supplemental Indenture. The following definitions are hereby added to the Loan Agreement: 

“First Supplemental Indenture” means that certain First Supplemental Trust Indenture dated as of
November 1, 2007 by and between the Issuer and the Trustee providing for the issuance of the Series 2007 Bonds. 

“Series 2007 Bonds” means the Issuer’s Water and Wastewater Revenue Bonds (Global Water Resources, LLC
Project) Series 2007. 
 “Series 2007 Project Note” means the non-negotiable Promissory Note of the
Company, dated November 28, 2007, in the form attached hereto as Exhibit A and in the principal amount of $54,135,000 evidencing the obligation of the Company to make Loan Payments, as it may be amended or restated hereunder. 

“Series 2007 Project Facilities” means, collectively, the Global Water - Palo Verde Utilities Company Series
2007 Project Facilities and the Global Water - Santa Cruz Water Company Series 2007 Project Facilities described in Exhibit B and Exhibit C hereto (and more 

  
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 particularly described in the Plans and Specifications), together with any additions,
modifications and substitutions to those facilities. 
 “Series 2007 Project Purposes” means constructing,
installing, equipping or improving real and personal property comprising, Series 2007 Project Facilities to be used to furnish water and to collect sewage, or such use as may result from a change in the Plans and Specifications authorized by
Section 3.2 of the Loan Agreement or which may otherwise be permitted by the Loan Agreement. 

Section 1.2.  Proposed Amendment to Definitions of “Debt Service Coverage Ratio” and “Maximum
Annual Debt Service”. 
 (a)        The current definition
of “Debt Service Coverage Ratio” in the Loan Agreement, being that set forth or incorporated in Section 1.1 of the Loan Agreement is as follows: 

“Debt Service Coverage Ratio” means, for any period of time, the ratio of Income Available For Debt Service
(with respect to Additional Bonds issued subsequent to the issuance of the Series 2006 Bonds, such amount adjusted as provided in the next sentence) to Maximum Annual Debt Service. For purposes of this definition only, with respect to Additional
Bonds issued subsequent to the issuance of the Series 2006 Bonds, Income Available for Debt Service may be increased by including at the time of issuance of Additional Bonds, anticipated annual earnings on additional moneys required to be deposited
in the Bond Reserve Fund as a result of the issuance of the Additional Bonds, provided that at the time of delivery of the Additional Bonds: 

(i)        All of such moneys have been deposited in an investment
agreement meeting the requirements of clause (vi) of the definition of “Eligible Investments”; 

(ii)       such investment agreement has a term equal to the longest
maturity of the Additional Bonds, and is not subject to early termination at the option of the investment agreement provider except upon the occurrence of an event of default thereunder; and 

(iii)      the Original Purchaser certifies the estimated annual earnings to be
derived from such deposit. 
 The following amended and restated definition of “Debt Service Coverage
Ratio” shall become effective immediately upon the delivery of the Series 2007 Bonds, such delivery and acceptance thereof by the purchasers to evidence the consent of the Holders of not less than a majority in aggregate principal amount of
the Bonds at the time outstanding and with the consent of the Company, such consent evidenced as provided in the Indenture and the Loan Agreement: 

“Debt Service Coverage Ratio” means, for any period of time, the ratio of Income Available For Debt Service
to Maximum Annual Debt Service. 

  
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 (b)        The current
definition of “Maximum Annual Debt Service” in the Indenture, being that set forth in Section 1.01 of the Indenture is as follows: 

“Maximum Annual Debt Service” means the greatest scheduled amount of principal (including mandatory sinking
fund payments) and interest payable on Long Term Indebtedness (but, excluding Subordinated Indebtedness incurred in compliance with the Agreement) of the Company during the current or any future 12 month period ending December 1.” 

The following amended and restated definition of “Maximum Annual Debt Service” shall become effective
immediately upon the delivery of the Series 2007 Bonds, such delivery and acceptance thereof by the purchasers to evidence the consent of the Holders of not less than a majority in aggregate principal amount of the Bonds at the time outstanding and
with the consent of the Company, such consent evidenced as provided in the Indenture and the Loan Agreement: 

“Maximum Annual Debt Service” means the greatest scheduled amount of principal (including mandatory sinking
fund payments) and interest payable on Long Term Indebtedness (but excluding Subordinated Indebtedness incurred in compliance with the Loan Agreement) of the Company, such amount to be reduced by the amount of all investment earnings derived from
the Bond Reserve Fund, provided, however, that investment earnings derived on the Bond Reserve Fund shall be included in such reduction only to the extent that amounts on deposit in the Bond Reserve Fund are no less than the Bond Reserve Requirement
at the time of such calculation, during the current or any future 12-month period ending December 1, provided, however, for purposes of determining the amount of principal payable on each series of Bonds issued for the 12-month period ending
with the final retirement of such series, there shall be excluded the amount by which the Bond Reserve Requirement may be reduced as a result of the final retirement of such series of Bonds.” 

By execution of this First Amendment to Loan Agreement, the Company hereby consents to the amendment reflected in this
Section 1.2. 
 ARTICLE II 

REPRESENTATION AND COVENANTS 

Section 2.1.  Representations of the Issuer.  The Issuer represents that: 

(a)        The Issuer is a nonprofit corporation designated as a
political subdivision of the State, created and existing under the Constitution and laws of the State; 

(b)        The Issuer has found and hereby declares that the issuance
of the Series 2007 Bonds to assist the financing of the Series 2007 Project is in furtherance of the public purposes set forth in the Act; 

(c)        In order to finance the costs of the Series 2007 Project,
in an amount estimated by the Company, the Issuer has duly authorized the execution, delivery, and performance on its part of the Purchase Contract, the First Supplemental Indenture and this First Amendment to Loan Agreement; 

  
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 (d)        To accomplish
the foregoing, the Issuer proposes to issue $54,135,000, in an aggregate principal amount of its Series 2007 Bonds immediately following the execution and delivery of this First Amendment of Loan Agreement. The date, denomination or denominations,
and other pertinent provisions with respect to the Series 2007 Bonds are set forth in the First Supplemental Indenture; 

(e)        The Issuer makes no representation or warranty that the
amount of the Loan will be adequate or sufficient to finance the Series 2007 Project or that the Series 2007 Project will be adequate or sufficient for the purposes of the Company; and 

(f)        The Issuer has not pledged, assigned, or granted, and will
not pledge, assign, or grant any of its rights or interest in or under the Loan Agreement, as amended by the First Amendment to Loan Agreement for any purpose other than as provided in the Indenture, as supplemented by the First Supplemental
Indenture and any pledge, assignment or grant in violation of this (f) shall, to the extent permitted by law, be invalid. 

Section 2.2.  Representations of Covenants of the Company.  The Company represents and
covenants that: 
 (a)        It is a limited liability company duly
organized and validly existing under the laws of the State of Delaware and qualified to transact business in the State. 

(b)        It has full corporate power to cause the Series 2007
Project to be developed, constructed, operated, equipped, and maintained by Global Water - Palo Verde Utilities Company and by Global Water - Santa Cruz Water Company so that it is, and continues to be, a “project” within the meaning of
the Act. It is doing business in and is in good standing in the State and in each other jurisdiction where its ownership or lease of property or conduct of its business requires such qualification. 

(c)        It has full power and authority to execute, deliver and
perform this First Amendment to Loan Agreement and the Series 2007 Project Note and to enter into and carry out the transactions contemplated by those documents. This First Amendment to Loan Agreement and the Series 2007 Project Note have, by proper
action, been duly authorized, and delivered by the Company and all steps necessary have been taken to constitute this First Amendment to Loan Agreement and the Series 2007 Project Note valid and binding obligations of the Company. 

(d)        The execution and delivery of this First Amendment to Loan
Agreement, the Series 2007 Project Note, the Security Agreement, the Intercreditor Agreement, the Continuing Disclosure Undertaking of the Company dated as of November 28, 2007, and the Bond Purchase Agreement dated November 19, 2007
among the Issuer, the Company and Hutchinson, Shockey, Erley & Co. (collectively the “Company Documents”), and the consummation of the transactions therein contemplated, including the application of the proceeds of the Series 2007
Bonds as so contemplated, subject to the execution and delivery of the Intercreditor Agreement will not conflict with, or constitute a breach of, or default by the Company under its articles of organization, its operating agreement or any

  
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resolution of its Board of Directors in effect on the date hereof, indenture, mortgage, deed of trust, lease, note, loan agreement, or other agreement or instrument to which it is a party or by
which it or its properties are bound, any order or opinion of the Arizona Corporation Commission, and will not constitute a violation of any other statute, order, rule, or regulation of any court or governmental agency or body having jurisdiction
over it in existence on the date hereof or any of its activities or properties which would have an adverse effect on its activities or properties. It is not in breach, default, or in violation of any statute, indenture, mortgage, deed of trust,
note, loan agreement, or other agreement or instrument which would allow the obligee or obligees thereof to take any action which would adversely affect its performance under the Company Documents and covenants that it will cause Global Water -
Palo Verde Utilities Company and Global Water - Santa Cruz Water Company to comply with all conditions and requirements imposed on it by the ACC. 

(e)        There are no actions, suits, or proceedings of any type
whatsoever pending, or to its knowledge, threatened against or affecting the Company or Global Water - Palo Verde Utilities Company or Global Water - Santa Cruz Water Company or the assets, properties, or operations of any of them which, if
determined adversely to the Company or its interests, would have a material adverse effect upon its operations or finances, except as disclosed in the Company Documents or the Preliminary Limited Offering Memorandum dated October 30, 2007 for
the Series 2007 Bonds, or upon the validity or enforceability of the Company Documents and none of the Company or Global Water - Palo Verde Utilities Company or Global Water - Santa Cruz Water Company is in default with respect to any order or
decree of any court or any order, regulation, or decree of any federal, state, municipal, or other governmental agency, which default would materially and adversely affect its operations, properties or its finances. 

(f)        Neither the representations of the Company contained in the
Company Documents nor any oral or written statement furnished by the Company to the Issuer or the Original Purchaser in connection with the transactions contemplated hereby, contain any untrue statement of a material fact or omit to state a material
fact necessary to make the statements contained herein or therein not misleading. There is no fact that the Company has not disclosed to the Issuer or the Original Purchaser of the Series 2007 Bonds in writing that materially and adversely affects
the properties, business, prospects, profits, or condition (financial or otherwise) of the Company or the ability of the Company to perform its obligations under the Company Documents or any documents or transactions contemplated hereby or thereby.

 (g)        The Series 2007 Project as designed and as proposed to
be operated or caused to be operated by the Global Water - Palo Verde Utilities Company or Global Water - Santa Cruz Water Company, when constructed in accordance with such design, will meet all material requirements of existing law, including
material requirements of any federal, State, county, city or other governmental authority having jurisdiction over the Series 2007 Project or its use and operation and will be consistent with the Act. 

(h)        The Company’s federal employer identification number
is 20-0255460. 

  
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 (i)        Reserved. 

(j)        All representations of the Company contained herein or in
any certificate or other instrument delivered by the Company pursuant hereto, or to the Indenture as supplemented by the First Supplemental Indenture, shall survive the execution and delivery thereof and the issuance, sale, and delivery of the
Series 2007 Bonds as representations of facts existing as of the date of such execution and delivery of the instrument containing such representation. 

(k)        The Series 2007 Project is and will be located within the
limits of the City of Maricopa, Arizona and in an unincorporated area of Pinal County, Arizona. 

(1)        The Series 2007 Project was commenced no earlier than
October 6, 2006. 100% of the proceeds ($47,148,650) of the Bonds in the Construction Account of the Series 2007 Project Fund will be used to reimburse the Company for expenses incurred in connection with the Series 2007 Project. 

(m)        There are no existing liens or encumbrances on property
owned by the Company, Global Water - Palo Verde Utilities Company or Global Water - Santa Cruz Water Company (except for the Wells Fargo Credit Agreement) which now or could in the future materially adversely affect the property owned by the
Company, Global Water - Palo Verde Utilities Company or Global Water - Santa Cruz Water Company or which could result in the property owned by the Company, Global Water - Palo Verde Utilities Company or Global Water - Santa Cruz Water Company being
transferred to any other entity. 
 (n)        The Company presently
intends to cause the Series 2007 Project to be used or operated in a manner consistent with the Series 2007 Project Purposes until the date on which the Bonds have been fully paid and knows of no reason why the Series 2007 Project will not be so
operated. If, in the future, there is a cessation of that operation, it will use its best efforts to resume that operation or accomplish an alternate use by the Company, Global Water - Palo Verde Utilities Company or Global Water - Santa Cruz Water
Company or others which will be consistent with the Act; provided, however, that this provision does not require the Company, Global Water - Palo Verde Utilities Company or Global Water - Santa Cruz Water Company to operate any portion of the Series
2007 Project after the Company shall determine in its discretion that such operations are no longer economic and does not prohibit the Company, Global Water - Palo Verde Utilities Company or Global Water - Santa Cruz Water Company from selling the
Series 2007 Project or from merging into or consolidating with another corporation in accordance with Section 5.3 of the Loan Agreement. 

(o)        The use of the Series 2007 Project as it is proposed to be
operated, complies with all currently applicable material requirements of zoning, development, pollution control, water conservation, environmental, and other laws, regulations, rules and ordinances of the federal government and the State and the
respective agencies thereof and the political subdivisions in which the Series 2007 Project is to be located. 

  
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 (p)        The Company
has obtained all necessary approvals of and licenses, permits, consents and franchises from federal, state, county, municipal or other governmental authorities having jurisdiction over the Series 2007 Project to acquire, construct, improve and equip
the Series 2007 Project, and to enter into, and execute and perform its obligations under this Agreement and the other Company Documents, in each case under presently applicable law and regulations, other than permits and licenses which are not now
required. 
 (q)        To the best of the Company’s actual
knowledge, none of the current Issuer Indemnified Parties has any significant or conflicting interest, financial, employment or otherwise, in the Company, Global Water - Palo Verde Utilities Company or Global Water - Santa Cruz Water Company the
Series 2007 Project or in any of the transactions contemplated under the Company Documents. 

(r)        There has been no material adverse change in the financial
condition, prospects or business affairs of the Company, Global Water - Palo Verde Utilities Company or Global Water - Santa Cruz Water Company or the feasibility or physical condition of the Series 2007 Project subsequent to the date on which the
Issuer granted its resolution approving the issuance of the Bonds. 

(s)        The Company (a) understands the nature of the
structure of the transactions related to the financing of the Series 2007 Project; (b) is familiar with all of the provisions of the Indenture, as supplemented by the First Supplemental Indenture and all documents and instruments related to
such financing to which the Company or the Issuer is a party or to which the Company is a beneficiary; (c) understands the risk inherent in such transactions, including without limitation, the risk of loss of the Series 2007 Project; and
(d) has not relied upon the Issuer for any guidance or expertise in analyzing the financial consequences of such financing transactions or otherwise relied upon the Issuer in any manner, except to issue the Series 2007 Bonds in order to provide
funds for the Loan. 
 (t)        The Company hereby acknowledges
receipt of the Indenture, as supplemented by the First Supplemental Indenture and agrees to be bound by their terms. 

(u)        All representations of the Company contained herein or in
any certificate or other instrument delivered by the Company pursuant hereto, to the Indenture, as supplemented by the First Supplemental Indenture or in connection with the transactions contemplated hereby or thereby, shall survive the execution
and delivery hereof and thereof and the issuance, sale and delivery of the Series 2007 Bonds as representations of facts existing as of the date of execution and delivery of the instrument containing such representations. 

(v)        At least 95% of the net proceeds of the Series 2007 Bonds
(as defined in Section 150 of the Code) will be used to provide land or property of a character subject to the allowance for depreciation under Section 167 of the Code and to provide facilities which constitute “facilities for the
furnishing of water” within the meaning of Section 142(a)(4) and/or facilities which constitute “sewage facilities” within the meaning of 

  
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Section 142(a)(5) of the Code. The Company will not request or authorize any disbursement pursuant to Section 3.4 hereof, which, if paid, would result in less than 95% of the net
proceeds of the Series 2007 Bonds being spent. 
 (w)       The costs of
issuance financed by the Series 2007 Bonds will not exceed 2% of the aggregate face amount of the Series 2007 Bonds (within the meaning of Section 147(g) of the Code), and the Company will not request or authorize any disbursement pursuant to
Section 3.4 of the Loan Agreement or otherwise, which, if paid, would result in more than 2% of the aggregate face amount of the Series 2007 Bonds being so used. None of the proceeds of the Series 2007 Bonds will be used to provide working
capital. 
 (x)        In accordance with Section 147(b) of the
Code, the average maturity of the Series 2007 Bonds does not exceed 120% of the average reasonably expected economic life of the facilities being financed by the Series 2007 Bonds, determined as of the later of the date the Series 2007 Bonds are
issued or the date the facilities are expected to be placed in service. 

(y)        None of the proceeds of the Series 2007 Bonds will be used
to provide any airplane, skybox or other private luxury box, or health club facility; any facility primarily used for gambling; or any store the principal business of which is the sale of alcoholic beverages for consumption off premises. 

(z)        Less than 25% of the proceeds of the Series 2007 Bonds will
be used directly or indirectly to acquire land or any interest therein. 

(aa)      No portion of the proceeds of the Series 2007 Bonds will be used to
acquire existing property or any interest therein unless such acquisition meets the rehabilitation requirements of Section 147(d) of the Code. 

(bb)      The information furnished by the Company and used by the Issuer in
preparing the certification pursuant to Section 148 of the Code and information statement pursuant to Section 149(e) of the Code, both referred to in the Bond Legislation, as well as the federal tax election referred to in the Bond
Legislation, is accurate and complete as of the date of the issuance of the Series 2007 Bonds. 

(cc)      In connection with any lease or grant by the Company of the use of the
Series 2007 Project, the Company shall require that the lessee or user of any portion of the Series 2007 Project shall not (i) violate the covenant set forth in subsection (n) above and (ii) use that portion of the Series 2007 Project
in any manner which would violate the covenants set forth in subsections (n), (o) and (v). 

(dd)      After the expiration of any applicable temporary period under
Section 148(d)(3) of the Code, at no time during any bond year will the aggregate amount of gross proceeds of the Series 2007 Bonds invested in higher yielding investments (within the meaning of Section 148(b) of the Code) exceed 150
percent of the debt service on the Series 2007 Bonds for such bond year and the aggregate amount of gross proceeds of the Series 2007 Bonds invested in higher yielding investments, if any, will be 

  
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promptly and appropriately reduced as the amount of outstanding Series 2007 Bonds are reduced; provided, however, that the foregoing shall not require the sale or disposition of any investments
in higher yielding investments if such sale or disposition would result in a loss which exceeds the amount which would be paid to the United States pursuant to Section 5.09 of the Indenture (but for such sale or disposition) at the time of such
sale or disposition if a payment under Section 5.09 of the Indenture were due at such time. 
 At no
time will any funds constituting gross proceeds of the Series 2007 Bonds be used in a manner as to constitute a prohibited payment under the applicable Regulations pertaining to, or in any other fashion as would constitute failure of compliance
with, Section 148 of the Code. 
 For purposes of this subsection (dd), the terms “bond
year,” “gross proceeds,” “higher yielding investments,” “yield,” and “debt service” have the meanings assigned to them for purposes of Section 148 of the Code. 

(ee)      The Series 2007 Bonds are not “federally guaranteed” within
the meaning of Section 149(b) of the Code. 
 ARTICLE III 

ISSUANCE OF THE SERIES 2007 BONDS AND DISBURSEMENT 

OF BOND PROCEEDS 

Section 3.1.  Issuance of the Series 2007 Bonds; Application of Proceeds.  To provide
funds to make the Loan for purposes of assisting in paying the Project Costs, the Issuer will issue, sell and deliver the Series 2007 Bonds to the Original Purchaser. The Series 2007 Bonds will be issued pursuant to the Indenture in the aggregate
principal amount, will bear interest, will mature and will be subject to redemption as set forth therein. 
 The Company
hereby approves the terms and conditions of the First Supplemental Indenture and the Series 2007 Bonds, and of the terms and conditions under which the Series 2007 Bonds will be issued, sold and delivered. 

The proceeds from the initial sale of the Series 2007 Bonds shall be paid over to the Trustee and deposited as described in
Section 2.09 of the First Supplemental Indenture. 
 Pending disbursement pursuant to Section 3.2 hereof, the
proceeds deposited in the Project Fund, together with any investment earnings thereon, shall constitute a part of the Revenues assigned by the Issuer to the payment of Bond Service Charges as provided in the Indenture. 

At the request of the Company, and for the purposes and upon fulfillment of the conditions specified in the Indenture, the
Issuer may provide for the issuance, sale and delivery of Additional Bonds and loan the proceeds from the sale thereof to the Company. 

  
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 Section 3.2.  Disbursements from the Project Fund.
(a) Subject to the provisions below, disbursements from the Project Fund shall be made only to reimburse or pay the Company, or any person designated by the Company, for the following Project Costs: 

(i)       Costs incurred directly or indirectly for or in connection with
the construction, installation, equipment or improvement of the Series 2007 Project, including costs incurred in respect of the Series 2007 Project for preliminary planning and studies; architectural, legal, engineering, accounting, consulting,
supervisory and other services; labor, services and materials; permit fees; and recording of documents and title work and acquisition of land. There shall be an initial disbursement from the Project Fund to the Company in the approximate amount of
$47,148,650 in order to reimburse the Company for expenses incurred in connection with the Series 2007 Project from and after October 8, 2006. This disbursement shall take place immediately upon closing. 

(ii)      Premiums attributable to any surety bonds and insurance taken out and
maintained during the Construction Period with respect to the Project Site and the Project Facilities. 

(iii)     Taxes, assessments and other governmental charges in respect of the Series
2007 Project that may become due and payable during the Construction Period. 

(iv)     Costs incurred directly or indirectly in seeking to enforce any remedy
against any contractor or subcontractor in respect of any actual or claimed default under any contract relating to the Project Facilities. 

(v)      Financial, legal, accounting, printing and engraving fees, charges and
expenses, and all other such fees, charges and expenses incurred in connection with the authorization, sale, issuance, and delivery of the Series 2007 Bonds, including, without limitation, the fees and expenses of the Trustee and any paying agent
properly incurred under the Indenture that may become due and payable during the Construction Period; provided that the costs of issuance of the Series 2007 Bonds financed by the Series 2007 Bonds shall not exceed 2% of the aggregate face amount of
the Series 2007 Bonds within the meaning of Section 147(g) of the Code and all such costs in excess of such 2% limit shall be paid from funds deposited into the Cost of Issuance Account of the Project Fund in the amounts set forth on Exhibit D
hereto upon receipt of an invoice from the payee 
 (vi)     Any other costs,
expenses, fees and charges properly chargeable to the cost of construction, installation, equipment or improvement of the Series 2007 Project. 

(vii)    Payment of interest on the Series 2007 Bonds during the Construction Period.

 (viii)   Payments made to the Rebate Fund. 

  
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 (b)        Any
disbursements from the Project Fund for the payment of Project Costs shall be made by the Trustee only upon the written order of the Authorized Company Representative. Each such written order shall be in substantially the form of the disbursement
request attached hereto as Exhibit E and shall be consecutively numbered and accompanied by invoices or other appropriate documentation supporting the payments or reimbursements requested. 

(c)        Any disbursement for any item not described in, or the cost
for which item is other than as described in, the information statement filed by the Issuer in connection with the issuance of the Series 2007 Bonds as required by Section 149(e) of the Code and referred to in Section 2.2 hereof, shall be
accompanied by evidence satisfactory that the average reasonably expected economic life of the facilities being financed by the Series 2007 Bonds is not less than 5/6ths of the average maturity of the Series 2007 Bonds or, if such evidence is not
presented with the disbursement or, by an opinion of Bond Counsel to the effect that such disbursement will not cause the interest on the Series 2007 Bonds to be included in the gross income of the Holders for federal income tax purposes. 

(d)        In case any contract provides for the retention by the
Company of a portion of the contract price, there shall be paid from the Project Fund only the net amount remaining after deduction of any such portion, and only when that retained amount is due and payable, may it be paid from the Project Fund.

 (e)        Any moneys in the Project Fund remaining after the
Completion Date and payment, or provision for payment, in full of the Project Costs, at the direction of the Authorized Company Representative, promptly shall be 

(i)      used to acquire, construct, install, equip and improve such additional
real or personal property in connection with the Series 2007 Project which shall constitute part of the Series 2007 Project as is designated by the Authorized Company Representative and the acquisition, construction, installation, equipment and
improvement of which will be permitted under the Act, provided that any such use shall be accompanied by evidence satisfactory to the Holder that the average reasonably expected economic life of such additional property, together with the other
property theretofore acquired with the proceeds of the Series 2007 Bonds, will not be less than 5/6ths of the average maturity of the Series 2007 Bonds or, if such evidence is not presented with the direction, an opinion of Bond Counsel to the
effect that the acquisition of such additional property will not cause the interest on the Series 2007 Bonds to be included in the gross income of the Holders for federal income tax purposes; 

(ii)     used for the purchase of Series 2007 Bonds in the open market for the
purpose of cancellation at prices not exceeding the full market value thereof plus accrued interest thereon to the date of payment therefor; 

(iii)    paid into the Bond Fund to be applied to the redemption or payment of the Series
2007 Bonds; or 

  
 12 

 (iv)    a combination of the foregoing as is
provided in that direction. 
 In all such cases, any payments made pursuant to this subparagraph (e) shall be made
only to the extent that such use or application will not, in the opinion of Bond Counsel or under a ruling of the Internal Revenue Service, cause the interest on the Series 2007 Bonds to be included in the gross income of the Holders for federal
income tax purposes. 
 ARTICLE IV 

LOAN BY ISSUER; REPAYMENT OF THE LOAN; 

LOAN PAYMENTS AND ADDITIONAL PAYMENTS 

Section 4.1.  Loan Repayment; Delivery of Notes.  (a) Upon the terms and
conditions of the Loan Agreement, as amended by the First Amendment to Loan Agreement, the Issuer will make the Loan to the Company. In consideration of and in repayment of the Loan, the Company shall make, as Loan Payments, payments which
correspond, as to amount, to the Bond Service Charges payable on the Bonds. All such Loan Payments shall be paid to the Trustee in accordance with the terms of the Project Note and the Series 2007 Project Note, shall be paid to the Trustee in
immediately available funds on the Business Day prior to each day on which Bond Service Charges are payable on any Bonds and shall be held and disbursed in accordance with the provisions of the Indenture and this Agreement for application to the
payment of Bond Service Charges. The Loan and the Series 2007 Project Note shall be additionally secured by and in accordance with the terms of the Security Agreement on a parity with the Project Note. The Project Note and Series 2007 Project Note
shall be payable solely from and secured solely by the Company’s right to receive Income Available for Debt Service. 

The Company shall be entitled to a credit against the Loan Payments next required to be made to the extent that the balance of
the Bond Fund is then in excess of amounts required (1) for the payment of Bonds theretofore matured or theretofore called for redemption, (2) for the payment of interest for which checks or drafts have been drawn and mailed by the Trustee
and (3) for the payment of interest for which moneys were deposited in the Bond Fund pursuant to Section 2.03(c) of the Indenture. 

In any event, however, if on the Business Day prior to the date on which the Bond Service Charges are payable, the balance in
the Bond Fund is insufficient to make required payments of Bond Service Charges, the Company forthwith will pay to the Trustee for deposit into the Bond Fund, any deficiency. 

(b)        If the Trustee withdraws moneys from the Bond Reserve Fund
as provided in the Indenture due to a deficiency in the Bond Fund, or if upon a valuation of the amount on deposit in the Bond Reserve Fund which is required by Section 5.04(b) of the Indenture the Bond Reserve Value (as defined in the
Indenture) is less than 90% of the Bond Reserve Requirement, and in either such case upon notification by the Trustee to the Company of the deficiency, the Loan Payments shall thereafter include such amounts, in equal monthly installments due on the
first day of each succeeding six months, as are necessary to cause the Bond Reserve Value to be not less than the Bond Reserve Requirement within a period of 6 months from the date of such notice. 

  
 13 

 (c)        In connection
with the issuance of any Additional Bonds, the Company shall execute and deliver to the Trustee one or more Additional Notes in a form substantially similar to the form of the Project Note and the Series 2007 Project Note as set forth in
Section 4.1 (a) above. All such Additional Notes shall: 

(i)          provide for payments of interest equal to the
payments of interest on the corresponding Additional Bonds; 

(ii)         require payments of principal and redemption
payments and any premium equal to the payments of principal, prepayments and sinking fund payments and any premium on the corresponding Additional Bonds; 

(iii)        require all payments on any such Additional Notes to be
made no later than the due dates for the corresponding payments to be made on the corresponding Additional Bonds; and 

(iv)        contain by reference or otherwise optional and mandatory
redemption provisions and provisions in respect of the optional and mandatory acceleration or prepayment of principal and any premium corresponding with the redemption and acceleration provisions of the corresponding Additional Bonds. 

All Notes shall secure equally and ratably all outstanding Bonds, except that, so long as no Event of Default has occurred and
is subsisting hereunder, payments by the Company on any of the Notes shall be used by the Trustee to make a like payment of Bond Service Charges on the corresponding Bonds in connection with which those Notes were delivered and shall constitute Loan
Payments made in respect of the related Bonds. 
 (d)        Upon
payment in full, in accordance with the Indenture, of the Bond Service Charges on any or all Bonds, whether at maturity or by redemption or otherwise, or upon provision for the payment thereof having been made in accordance with the provisions of
the Indenture, (i) the Notes issued concurrently with those corresponding Bonds, of the same maturity, bearing the same interest rate and in an amount equal to the aggregate principal amount of the Bonds so surrendered and canceled or for the
payment of which provision has been made, shall be deemed fully paid, the obligations of the Company thereunder shall be terminated, and any of those Notes shall be surrendered by the Trustee to the Company, and shall be canceled by the Company, or
(ii) in the event there is only one of those Notes, an appropriate notation shall be endorsed thereon evidencing the date and amount of the principal payment or prepayment equal to the Bonds so paid, or with respect to which provision for
payment has been made, and that Note shall be surrendered by the Trustee to the Company for cancellation if all Bonds shall have been paid (or provision made therefor) and canceled as aforesaid. Unless the Company is entitled to a credit under
express terms of this Agreement or the Notes, all payments on each of the Notes shall be in the full amount required thereunder. 

(e)        Except for such interest of the Company as may hereafter
arise pursuant to Section 8.5 of the Loan Agreement or for such interest of the Issuer as may hereafter arise pursuant to Section 5.07 of the Indenture, the Company and the Issuer each 

  
 14 

 
acknowledge that neither the Company nor the Issuer has any interest in the Bond Fund and Bond Reserve Fund and any moneys deposited therein shall be in the custody of and held by the Trustee in
trust for the benefit of the Holders pursuant to the terms of the Indenture. 
 ARTICLE V 

MISCELLANEOUS 

Section 5.1.  Effect of this First Amendment to Loan Agreement.  Except as expressly
supplemented and amended by this First Amendment to Loan Agreement, all of the terms and conditions of the Loan Agreement shall remain in full force and effect. If a conflict exists between the provisions of this First Amendment to Loan Agreement
and the Loan Agreement, this First Amendment to Loan Agreement shall control. 
 Section 5.2.  Notice of
A.R.S. Section 38-511 – Cancellation.  Notice is hereby given of the provisions of Arizona Revised Statutes Section 38-511, as amended. By this reference, the provisions of said statute are incorporated
herein to the extent of their applicability to contracts of the nature of this First Amendment to Loan Agreement under the law of the State. 

Section 5.3.  Counterparts.  This First Amendment to Loan Agreement may be executed in
one or more counterparts, each of which shall be deemed an original instrument. 

Section 5.4.  Consent.  The Company hereby consents to the execution of the First
Amendment to Loan Agreement. 
 [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK] 

  
 15 

 IN WITNESS WHEREOF, the Issuer, the Company and Trustee have caused this First
Amendment to Loan Agreement to be duly executed in their respective names, all as of the date hereinbefore written. 
  

			
	 THE INDUSTRIAL DEVELOPMENT

AUTHORITY OF THE COUNTY OF PIMA,

as Issuer

		
	By:	 	 /s/ Stanley Lehman

			
	 Name:
	 	   Stanley Lehman

			
	 Title:
	 	     Vice President

  

			
	 GLOBAL WATER RESOURCES, LLC, as

Company

		
	By:	 	/s/ Trevor T. Hill

 
			
	 Name:
	 	   Trevor T. Hill

			
	 Title:
	 	     President/CEO

  

			
	 U.S. BANK NATIONAL ASSOCIATION, as

Trustee

		
	By:	 	/s/ Deborah M. Scherer

 
			
	 Name:
	 	   Deborah M. Scherer

			
	 Title:
	 	     Assistant Vice President

 [SIGNATURE PAGE TO FIRST AMENDMENT 

TO LOAN AGREEMENT] 

 EXHIBIT A 

FORM OF 
 SERIES 2007
PROJECT NOTE 
 GLOBAL WATER RESOURCES, LLC (the “Company”), a limited liability company duly organized and
validly existing under the laws of the State of Delaware and qualified to transact business in the State of Arizona, for value received, promises to pay to U.S. Bank National Association, as Trustee (the “Trustee”) under the Indenture
hereinafter referred to, the principal sum of: 
 FIFTY-FOUR MILLION ONE-HUNDRED THIRTY-FIVE THOUSAND DOLLARS 

($54,135,000) 
 and to pay
interest on the unpaid balance of such principal sum from and after November 28, 2007 (the date of original issuance and delivery of the Bonds (defined below)) at the interest rates specified below until the payment of such principal sum has
been made or provided for. Interest shall be calculated on the basis of a 360-day year. 
 Additional Payments shall also be
payable in the amounts and at the times provided in the First Amendment to Loan Agreement, dated as of November 1, 2007, each between The Industrial Development Authority of the County of Pima (the “Issuer”) and the Company (the
“Agreement”). 
 This Note has been executed and delivered by the Company to the Trustee pursuant to the Loan
Agreement, dated as of December 1, 2006 and the Agreement between the Issuer and the Company. Under the Agreement, the Issuer has loaned the Company the principal proceeds received from the sale of the Issuer’s $54,135,000 aggregate
principal amount of Water and Wastewater Revenue Bonds (Global Water Resources, LLC Project), Series 2007, dated November 28, 2007 (the “Bonds”) to assist in the financing of the Project (as defined in the Agreement), and the Company
has agreed to repay such loan by making payments (the “Loan Payments”) at the times and in the amounts set forth on Schedule I attached hereto for application to the payment of the principal of and redemption premium, if any, and interest
on the Bonds as and when due and to maintain the Bond Reserve Fund as required by Section 4.1 of the Agreement and Section 5.04 (b) of the Indenture (identified below), subject to the credits permitted under Section 4.1 of the
Agreement. The Bonds have been issued, concurrently with the execution and delivery of this Note, pursuant to, and are secured by, the Trust Indenture, dated as of December 1, 2006, as supplemented by the First Supplemental Trust Indenture,
dated as of November 1, 2007, between the Issuer and the Trustee (the “Indenture”). 
 All capitalized terms
not otherwise defined in this Note shall have the meanings set forth in the Indenture. The Bonds also bear interest from their date at the interest rates specified below, payable June 1 and December 1 commencing June 1, 2008 and
mature on December 1 in the years and the principal amounts as set forth on Schedule II attached hereto. 

 To provide funds to pay the principal, redemption premium, if any, and interest
on the Bonds as and when due as above-specified, the Company hereby agrees to and shall make Loan Payments, in immediately available funds, on or before each Business Day (as defined in the Loan Agreement) prior to any date upon which any principal
of, premium, if any, and interest on the Bonds is due, in all events in amounts sufficient to pay principal of, premium, if any, and interest on the Bonds when due and payable by their terms, whether at stated maturity, by acceleration, by
redemption or otherwise. 
 If payment or provision for payment in accordance with the Indenture is made in respect of the
principal of, and redemption premium, if any, and interest on the Bonds from moneys other than Loan Payments, this Note shall be deemed paid to the extent such payments or provision for payment of Bonds has been made. Subject to the foregoing, all
Loan Payments shall be in the full amount required hereunder. 
 All Loan Payments shall be payable in lawful money of the
United States of America and shall be made to the Trustee at its principal corporate trust office and deposited in the Bond Fund created by the Indenture. Except as otherwise provided in the Indenture, such Loan Payments shall be used by the Trustee
to pay the principal of, redemption premium, if any, and interest on the Bonds as and when due. 
 Except as allowed in the
Agreement, the obligation of the Company to make the payments required hereunder shall be absolute and unconditional and the Company shall make such payments without abatement, diminution or deduction regardless of any cause or circumstances
whatsoever including, without limitation, any defense, set-off, recoupment or counterclaim which the Company may have or assert against the Issuer, the Trustee or any other person. 

This Note is subject to redemption prior to stated maturity, pursuant to the obligation of the Company to give the Issuer and
the Trustee sufficient notice of such redemption as shall enable the Issuer and the Trustee to take all action necessary under the Indenture to redeem, on the date specified for prepayment, a like principal amount of Bonds at the same redemption
price. Redemption of this Note prior to stated maturity can occur on the same conditions and at the same time as the Bonds are subject to redemption, as set forth in the Bonds and the Indenture. 

Whenever an event of default under Section 7.01 of the Indenture shall have occurred and, as a result thereof, the
principal of and any premium on all Bonds then outstanding, and interest accrued thereon, shall have been declared to be immediately due and payable pursuant to Section 7.02 of the Indenture, the unpaid principal amount of and any premium and
accrued interest on this Note shall also be due and payable on the date on which the principal of and premium and interest on the Bonds shall have been declared due and payable; provided that the annulment of a declaration of acceleration with
respect to the Bonds shall also constitute an annulment of any corresponding declaration with respect to this Note. The remedies hereunder following any default of this Note shall be limited as set forth in Section 4.1(a) of the Agreement
(i.e., recourse against the Company shall be limited to the Company’s rights to receive the Income Available for Debt Service (as defined in the Agreement). The payment of amounts due under this Note and under the Agreement are secured by an
Amended and Restated Security Agreement, dated as of November 1, 2007 from the Company to the Trustee. 

 IN WITNESS WHEREOF, the Company has caused this Note to be executed in its name
by its duly authorized officers on November 28, 2007. 
  

	
	 GLOBAL WATER RESOURCES, LLC

	
	
By:                        
                                        

	 Name:    Trevor T.
Hill                                 

	
Title:      President/CEO                
               

 SCHEDULE I 

TO 
 PROJECT NOTE 

Relating to 
 THE
INDUSTRIAL DEVELOPMENT AUTHORITY 
 OF THE COUNTY OF PIMA 

WATER AND WASTEWATER REVENUE BONDS 

(GLOBAL WATER RESOURCES, LLC PROJECT) 

SERIES 2007 
 Loan
Payment Schedule 
  

							
	 Payment

Dates
	 	 Principal

Component
	 	 Interest

Component
	 	 Loan

Payment

Total

		 		 		 	
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 

 SCHEDULE II 

TO 
 PROJECT NOTE 

Relating to 
 THE
INDUSTRIAL DEVELOPMENT AUTHORITY 
 OF THE COUNTY OF PIMA 

WATER AND WASTEWATER REVENUE BONDS 

(GLOBAL WATER RESOURCES, LLC PROJECT) 

SERIES 2006 
 Dated:
                November 28, 2007 
 Delivery:
            November 28, 2007 
  

							
	 Maturity

(December 1)
	 	 Principal

Amount
	 	Interest Rate	 	 CUSIP

(72177T)

		 		 		 	
	  

2013
  
	 	$ 1,635,000	 	 	 	 
	
2037
  

 
	 	52,500,000	 	 	 	 

 EXHIBIT B 

PALO VERDE WATER FACILITY 

PROJECT DESCRIPTION 

 

 
 INDUSTRIAL DEVELOPMENT AUTHORITY OF THE COUNTY OF PIMA 

WATER AND WASTEWATER REVENUE BONDS 
 CAPITAL PROJECTS 

 

																			
						
	Project	    	Description	  	2006 (Q4)
Actual	 	  	2O07 (Q1-Q3)
Actual	 	  	2007 (Q4)
Projected	 	  	
2008

Projected
	 
		    		  				  				  				  			
		    	Palo Verde Utilities Company	  				  				  				  			
		    	Sewer System Major Capital Improvements	  				  				  				  			
		    		  				  				  				  			
		    	Water Reclamation Facilities	  				  				  				  			
	202-04-009	    	Convert Existing Lagoons	  	$	1,955	  	  	$	-    	  	  	$	-    	  	  	$	-    	  
	202-04-012	    	Palo Verde WRF Expansion	  	$	241,449	  	  	$	42,313	  	  	$	-    	  	  	$	-    	  
	202-05-036	    	Southwest Area WRF Campus No. 2	  	$	2,234,918	  	  	$	5,720,316	  	  	$	-    	  	  	$	-    	  
	202-06-016	    	Campus 1 Overall Site Improvement	  	$	7,808	  	  	$	246,178	  	  	$	140,000	  	  	$	-    	  
	202-06-028	    	Campus 3 (SE) WRF Recharge	  	$	-    	  	  	$	10,185	  	  	$	-    	  	  	$	-    	  
	202-06-036	    	Campus 2 Overall Site Improvement	  	$	5,172	  	  	$	22,589	  	  	$	-    	  	  	$	-    	  
	202-07-017	    	WWTP Capacity Enhancements	  	$	-    	  	  	$	139,275	  	  	 	-    	  	  	$	-    .	  
	202-08-001	    	Water Reclamation Facilities - Campus No. 1 Expansion	  	$	-    	  	  	$	-    	  	  	$	1,270,000	  	  	$	9,250,000	  
		    	Subtotal	  	$	        2,491,302	  	  	$	        6,180,856	  	  	$	        1,410,000	  	  	$	        9,250,000	  
		    		  				  				  				  			
		    	Lift Stations	  				  				  				  			
	202-04-013	    	Influent Pump Station at PVUC WRF	  	$	 6,487	  	  	$	 -    	  	  	$	 -    	  	  	$	-    	  
	202-05-037	    	SE Area Lift Station	  	$	 20,366	  	  	$	125,899	  	  	$	-    	  	  	$	-    	  
	202-05-055	    	SE Area Force Main	  	$	9,883	  	  	$	7,297	  	  	$	-    	  	  	$	-    	  
	202-05-072	    	Tortosa Lift Station	  	$	4,923	  	  	$	2,955	  	  	$	-    	  	  	$	-    	  
	202-05-704	    	McDavid Lift Station & Force Main	  	$	53	  	  	$	-    	  	  	$	-    	  	  	$	-    	  
	202-05-706	    	Alterra Lift Station & Force Main	  	$	103	  	  	$	443	  	  	$	-    	  	  	$	-    	  
	202-05-708	    	Smith Farms LS & FM (Incl Gravity)	  	$	50	  	  	$	-    	  	  	$	-    	  	  	$	-    	  
	202-06-008	    	SW Area Main Lift Station	  	$	-    	  	  	$	87,256	  	  	$	-    	  	  	$	-    	  
	202-07-003	    	Lift Station Upgrades (H2S Protection & Odor Control)	  	$	-    	  	  	$	170,176	  	  	$	-    	  	  	$	-    	  
	202-07-008	    	2nd VFD@ Campus 1 Influent Lift Station	  	$	-    	  	  	$	39,860	  	  	$	-    	  	  	$	-    	  
	202-08-002	    	Lift Stations - Campus No. 2 IPS	  	 	-    	  	  	$	-    	  	  	$	125,000	  	  	$	1,250,000	  
		    	Subtotal	  	$	41,864	  	  	$	433,885	  	  	$	125,000	  	  	$	1,250,000	  
		    		  				  				  				  			
		    	Recharge Facilities	  				  				  				  			
	202-07-002	    	Campus 1 Recharge	  	$	1,500	  	  	$	238,086	  	  	$	-    	  	  	$	-    	  
	202-06-035	    	Campus 2 Recharge Wells (SW)	  	$	-    	  	  	$	21,623	  	  	$	-    	  	  	$	-    	  
	202-08-003	    	Recharge Facilities	  	$	-    	  	  	$	-    	  	  	$	-    	  	  	$	200,000	  
		    	Subtotal	  	$	1,500	  	  	$	259,709	  	  	$	-    	  	  	$	200,000	  
		    		  				  				  				  			
		    	Pipelines	  				  				  				  			
	202-04-015	    	Bowlin Rd Utilities (Santa Rosa Wash to Dunn Ranch)	  	$	-    	  	  	$	105,795	  	  	$	-    	  	  	$	-    	  
	202-04-019	    	24” Reclaimed in Santa Rosa Wash (Smith Enke to South)	  	$	-    	  	  	$	28,302	  	  	$	-    	  	  	$	-    	  
	202-04-026	    	Honeycutt Utilities (Porter to Fuqua)	  	$	-    	  	  	$	-    	  	  	$	-    	  	  	$	-    	  
	202-05-021	    	SR 347 (Bowlin to Palo Brea)	  	$	19,170	  	  	$	1,812	  	  	$	-    	  	  	$	-    	  
	202-05-024	    	Bowlin Rd Utilities (Porter to Smith Farms)	  	$	-    	  	  	$	-    	  	  	$	-    	  	  	$	-    	  
	202-05-026	    	White & Parker (Honeycutt to Farrell)	  	$	71,031	  	  	$	58,534	  	  	$	-    	  	  	$	-    	  
	202-05-038	    	Bowlin Rd Utilities (White & Parker to Hartman)	  	$	12,166	  	  	$	-    	  	  	$	-    	  	  	$	-    	  
	202-05-041	    	Farrell (White & Parker to Hartman)	  	$	2,431,515	  	  	$	274,289	  	  	$	-    	  	  	$	-    	  
	202-05-050	    	Sorrento Reclaimed Water Line	  	$	3,097	  	  	$	90	  	  	$	-    	  	  	$	-    	  
	202-05-056	    	Maricopa Business Center	  	$	-    	  	  	$	2,164	  	  	$	-    	  	  	$	-    	  
	202-05-063	    	Peters & Nall Utilities (Amarillo Valley to Green)	  	$	746,754	  	  	$	10,456	  	  	$	-    	  	  	$	-    	  
	202-05-064	    	Green Rd Utilities (Peters & Nall to Val Vista)	  	$	2,416,672	  	  	$	778,603	  	  	$	-    	  	  	$	-    	  
	202-05-065	    	Papago Rd Utilities (White to Green)	  	$	1,225	  	  	$	1,852,686	  	  	$	-    	  	  	$	-    	  
	202-06-010	    	Eagle Shadow Sanitary Sewer	  	$	1,105	  	  	$	7,593	  	  	$	-    	  	  	$	-    	  
	202-06-012	    	Bowlin Rd Utilities (White & Parker to Fuqua)	  	$	340	  	  	$	255	  	  	$	-    	  	  	$	-    	  
	202-06-029	    	Lakes at Maricopa Reclaimed Water Line	  	$	9,678	  	  	$	37,470	  	  	$	-    	  	  	$	-    	  
	202-06-031	    	Ralston Road Utilities	  	$	20,965	  	  	$	-    	  	  	$	-    	  	  	$	-    	  

  
 Page 1 

 

 
 INDUSTRIAL DEVELOPMENT AUTHORITY OF THE COUNTY OF PIMA 

WATER AND WASTEWATER REVENUE BONDS 
 CAPITAL PROJECTS 

 

																			
						
	Project	    	Description	  	2006 (Q4)
Actual	 	  	2O07 (Q1-Q3)
Actual	 	  	2007 (Q4)
Projected	 	  	
2008

Projected
	 
						
	202-06-032	    	Legends Ranch Utilities	  	$	67,412	  	  	$	 32,249	  	  	$	-    	  	  	$	-    	  
	202-07-005	    	Eagle Shadow Reclaimed	  	$	-    	  	  	$	6,369	  	  	$	-    	  	  	$	-    	  
	202-07-007	    	White & Parker (Farrell to Daltessa)	  	$	-    	  	  	$	14,957	  	  	$	-    	  	  	$	-    	  
	202-07-009	    	Vintage Estates Utilities	  	$	-    	  	  	$	22,970	  	  	$	-    	  	  	$	-    	  
	202-07-010	    	Green Rd Utilities (Val Vista to Terrazo)	  	$	-    	  	  	$	2,349	  	  	$	-    	  	  	$	-    	  
	202-07-013	    	Maricopa Opus/Hidden Valley Utilities	  	$	-    	  	  	$	8,680	  	  	$	-    	  	  	$	-    	  
	202-08-004	    	Pipelines - Northwest Loop	  	$	-    	  	  	$	-    	  	  	$	290,000	  	  	$	1,550,000	  
		    	Subtotal	  	$	        5,801,129	  	  	$	3,245,623	  	  	$	290,000	  	  	$	1,550,000	  
		    		  				  				  				  			
		    	SCADA	  				  				  				  			
	202-06-004	    	SCADA	  	$	110,250	  	  	$	218,271	  	  	$	-    	  	  	$	-    	  
	202-06-011	    	Lake Level Controls	  	$	17,050	  	  	$	796,559	  	  	$	-    	  	  	$	-    	  
		    	Subtotal	  	$	127,300	  	  	$	1,014,830	  	  	$	 -    	  	  	$	-    	  
		    		  				  				  				  			
		    	Other	  				  				  				  			
	202-04-020	    	Palo Verde WRF 9 MGD APP Amendment	  	$	-    	  	  	$	 4,320	  	  	$	 -    	  	  	$	-    	  
	202-05-003	    	Upgrade Infrastructure AZPDES	  	$	29,102	  	  	$	844,266	  	  	$	-    	  	  	$	-    	  
	202-05-005	    	North Area Master Plan Update	  	$	17	  	  	$	-    	  	  	$	-    	  	  	$	-    	  
	202-05-035	    	Golf Course Wash	  	$	25,316	  	  	$	580,015	  	  	$	-    	  	  	$	-    	  
	202-05-043	    	SW WRF Recharge Evaluation & Permitting (APP &	  	$	43,310	  	  	$	30,453	  	  	$	-    	  	  	$	-    	  
	202-05-044	    	SW Area WW Master Plan	  	$	16,250	  	  	$	35,264	  	  	$	-    	  	  	$	-    	  
	202-05-051	    	Consolidated 208 Plan Amendment	  	$	9,338	  	  	$	4,215	  	  	$	-    	  	  	$	-    	  
	202-05-054	    	SE Area WW Master Plan	  	$	4,396	  	  	$	-    	  	  	$	-    	  	  	$	-    	  
	202-06-000	    	Miscellaneous Projects - 2006	  	$	2,602	  	  	$	-    	  	  	$	-    	  	  	$	-    	  
	202-07-000	    	Miscellaneous Projects - 2007	  	$	-    	  	  	$	33,366	  	  	$	-    	  	  	$	-    	  
	202-07-004	    	PVUC Wastewater Master Planning	  	$	-    	  	  	$	12,381	  	  	$	-    	  	  	$	-    	  
	202-07-018	    	AZPDES Renewal	  	$	-    	  	  	$	2,013	  	  	$	-    	  	  	$	-    	  
	202-08-005	    	Operational Upgrades	  	$	-    	  	  	$	-    	  	  	$	-    	  	  	$	2,000,000	  
		    	Subtotal	  	$	130,331	  	  	$	1,546,293	  	  	$	-    	  	  	$	2,000,000	  
		    		  				  				  				  			
						
		    	 TOTAL

 
	  	$  
	 8,593,426  
	    
	  	$  
	12,681,197  
	    
	  	$  
	 1,825,000  
	    
	  	$  
	14,250,000  
	    

		    		  				  				  				  			
						
		    	 Cumulative Total (Palo Verde)

 
	  	$  
	8,593,426  
	    
	  	$  
	21,274,624  
	    
	  	$  
	        23,099,624
 
	    
	  	$  
	        37,349,624
 
	    

		    		  				  				  				  			
						
		    	Cumulative Total (Santa Cruz)	  	$	5,949,221	  	  	$	26,190,090	  	  	$	29,865,090	  	  	$	39,140,090	  
						
		    	 CUMULATIVE TOTAL (Palo Verde & Santa
Cruz)
  
	  	$  
	14,542,647  
	    
	  	$  
	        47,464,714
 
	    
	  	$  
	52,964,714  
	    
	  	$  
	76,489,714  
	    

  
 Page 2 

 EXHIBIT C 

SANTA CRUZ WATER FACILITY 

PROJECT DESCRIPTION 

 

 
 INDUSTRIAL DEVELOPMENT AUTHORITY OF THE COUNTY OF PIMA 

WATER AND WASTEWATER REVENUE BONDS 
 CAPITAL PROJECTS 

 

																			
						
	Project	    	Description	  	2006 (Q4)
Actual	 	  	2007 (Q1-Q3)
Actual	 	  	2007 (Q4)
Projected	 	  	2008
Projected	 
		    		  				  				  				  			
		    	 Santa Cruz Water Company

Water System Major Capital Improvements
	   

  

		    		  				  				  				  			
		    	Water Distribution Centers	  
	602-05-025	    	Rancho El Dorado WDC	  	$	 129,129	  	  	$	222,180	  	  	$	35,000	  	  	$	-      	  
	602-05-031	    	SW Area WTP - Terrazo	  	$	1,677,805	  	  	$	956,817	  	  	$	-      	  	  	$	1,200,000	  
	602-05-032	    	Solana Ranch WDC	  	$	9,618	  	  	$	13,366	  	  	$	-      	  	  	$	-      	  
	602-05-033	    	Rancho Mirage WTP	  	$	346,814	  	  	$	3,124,352	  	  	$	500,000	  	  	$	-      	  
	602-05-073	    	Maricopa Meadows WDC Upgrades	  	$	87,758	  	  	$	71,741	  	  	$	-      	  	  	$	-      	  
	602-06-007	    	Maricopa Groves WDC Upgrades	  	$	87,242	  	  	$	63,387	  	  	$	-      	  	  	$	-      	  
	602-08-033	    	Legends Ranch Water Distribution Center	  	$	-      	  	  	$	131,449	  	  	$	-      	  	  	$	50,000	  
	602-08-001	    	Maricopa Groves Surface Water Intakes and PS	  	$	 -      	  	  	$	-      	  	  	$	20,000	  	  	$	2,370,000	  
		    	Subtotal	  	$	2,338,366	  	  	$	4,583,292	  	  	$	555,000	  	  	$	3,620,000	  
		    		  				  				  				  			
		    	Surface Water Treatment Facilities	  
	602-05-048	    	Maricopa Groves Plant Conversion to Surface Water Treatrr	  	$	 334,600	  	  	$	 262,926	  	  	$	 -      	  	  	$	-      	  
		    	Subtotal	  	$	334,600	  	  	$	262,926	  	  	$	-      	  	  	$	-      	  
		    		  				  				  				  			
		    	Well Development	  
	602-04-023	    	Upgrade of Neely Wells	  	$	77,868	  	  	$	654,150	  	  	$	-      	  	  	$	-      	  
	602-05-004	    	Neely Wells Connections at Water Treatment Facility	  	$	1,020	  	  	$	-      	  	  	$	-      	  	  	$	-      	  
	602-05-047	    	Upgrade Glennwilde Well	  	$	17,144	  	  	$	588,630	  	  	$	150,000	  	  	$	-      	  
	602-05-069	    	Amarillo Creek East Well Upgrades	  	$	6,066	  	  	$	866,853	  	  	$	150,000	  	  	$	-      	  
	602-05-070	    	Sunset Canyon Well Upgrades	  	$	29,959	  	  	$	6,068	  	  	$	 -      	  	  	$	-      	  
	602-06-003	    	Cobblestone Well Rehab	  	$	-      	  	  	$	-      	  	  	$	75,000	  	  	$	-      	  
	602-06-011	    	Lake Level Controls	  	$	9,291	  	  	$	558,974	  	  	$	-      	  	  	$	-      	  
	602-06-022	    	Amarillo Creek South Well Upgrades	  	$	 12,610	  	  	$	19,551	  	  	$	-      	  	  	$	-      	  
	602-06-025	    	Rancho Mirage Well Upgrades	  	$	-      	  	  	$	 132,965	  	  	$	175,000	  	  	$	-      	  
	602-06-026	    	Sorrento Well Upgrades	  	$	28,892	  	  	$	96,398	  	  	$	-      	  	  	$	-      	  
	602-06-027	    	Homestead East Well Upgrades	  	$	-      	  	  	$	35,383	  	  	$	 -      	  	  	$	-      	  
	602-06-030	    	Homestead West Well Upgrades	  	$	-      	  	  	$	12,649	  	  	$	-      	  	  	$	-      	  
	602-06-037	    	Initial Well Development	  	$	-      	  	  	$	95,481	  	  	$	-      	  	  	$	-      	  
	602-07-006	    	SCWC Well Development	  	$	-      	  	  	$	66,327	  	  	$	-      	  	  	$	-      	  
	602-08-002	    	New Well Development - North Area	  	$	-      	  	  	$	-      	  	  	$	160,000	  	  	$	820,000	  
		    	Subtotal	  	$	        182,850	  	  	$	        3,133,429	  	  	$	        710,000	  	  	$	        820,000	  
		    		  				  				  				  			
		    	 Pipelines
	   

	602-04-008	    	10” Brine Waterline at Rancho El Dorado	  	$	-      	  	  	$	8,780	  	  	$	-      	  	  	$	-      	  
	602-05-010	    	Fuqua Utilities (Honeycutt to Bowlin)	  	$	-      	  	  	$	85	  	  	$	-      	  	  	$	-      	  
	602-05-013	    	Sorrento Raw Water Infrastructure	  	$	-      	  	  	$	85	  	  	$	-      	  	  	$	-      	  
	602-05-014	    	Rancho Mirage Raw Water Infrastructure	  	$	-      	  	  	$	228,427	  	  	$	-      	  	  	$	-      	  
	602-05-022	    	Porter Road Raw Water Line	  	$	-      	  	  	$	11	  	  	$	-      	  	  	$	 -      	  
	602-05-023	    	DR Horton Raw Water Line	  	$	 154	  	  	$	 -      	  	  	$	-      	  	  	$	 -      	  
	602-05-041	    	Farrell Rd Utilities (White & Parker to Hartmann)	  	$	673,036	  	  	$	136,045	  	  	$	-      	  	  	$	-      	  
	602-05-042	    	Farrell Rd Utilities (Santa Rosa Wash to SR 347)	  	$	 621,029	  	  	$	295,371	  	  	$	-      	  	  	$	 -      	  
	602-05-049	    	Porter Rd Utilities (Bowlin to Farrell)	  	$	6,226	  	  	$	679,179	  	  	$	-      	  	  	$	-      	  
	602-05-052	    	RED PH III Raw Water Line	  	$	-      	  	  	$	11	  	  	$	-      	  	  	$	-      	  
	602-05-056	    	Maricopa Business Center	  	$	-      	  	  	$	1,719	  	  	$	-      	  	  	$	 -      	  
	602-05-087	    	Amarillo Creek Potable/Raw Water Line	  	$	522,992	  	  	$	2,916,401	  	  	$	-      	  	  	$	-      	  
	602-06-001	    	Hartmann Rd Watermain	  	$	 105	  	  	$	-      	  	  	$	 -      	  	  	$	 -      	  
	602-06-002	    	Rancho Mirage WDC Raw Water Line	  	$	6,020	  	  	$	2,722,149	  	  	$	285,000	  	  	$	-      	  
	602-06-012	    	Bowlin Rd Utilities (White & Parker to Fuqua)	  	$	383	  	  	$	 -      	  	  	$	-      	  	  	$	-      	  

  
 Page 3 

 

 
 INDUSTRIAL DEVELOPMENT AUTHORITY OF THE COUNTY OF PIMA 

WATER AND WASTEWATER REVENUE BONDS 
 CAPITAL PROJECTS 

 

																			
						
	Project	    	Description	  	
2006 (Q4)

Actual
	 	  	2007 (Q1-Q3)
Actual	 	  	2007 (Q4)
Projected	 	  	
2008

Projected
	 
						
	602-06-018	    	Palomino Ranch Raw Water Line	  	$	48	  	  	$	1,219	  	  	$	-      	  	  	$	-      	  
	602-06-019	    	Amarillo Creek - Pecan Woods Raw Water Line	  	$	261	  	  	$	5,789	  	  	$	-      	  	  	$	-      	  
	602-06-029	    	Lakes@ Maricopa Water Line	  	$	-      	  	  	$	48,744	  	  	$	-      	  	  	$	-      	  
	602-06-032	    	Legends Ranch Utilities	  	$	2,758	  	  	$	12,284	  	  	$	-      	  	  	$	-      	  
	602-07-007	    	White & Parker (Farrell Rd to Del Tessa)	  	$	-      	  	  	$	13,371	  	  	$	-      	  	  	$	-      	  
	602-07-009	    	Vintage Estates Utilities	  	$	-      	  	  	$	25,336	  	  	$	-      	  	  	$	 -      	  
	602-08-003	    	Pipelines - Northwest Loop	  	$	-      	  	  	$	-      	  	  	$	1,715,000	  	  	$	3,425,000	  
		    	Subtotal	  	$	1,833,012	  	  	$	7,095,006	  	  	$	2,000,000	  	  	$	3,425,000	  
		    		  				  				  				  			
		    	SCADA	  
	602-06-004	    	 SCADA (North Area)
	  	$	120,760	  	  	$	334,968	  	  	$	250,000	  	  	$	1,000,000	  
		    	 Subtotal
	  	$	120,760	  	  	$	334,968	  	  	$	250,000	  	  	$	1,000,000	  
		    		  				  				  				  			
		    	Other	  
	602-05-006	    	North Area Well Assessments	  	$	 16,305	  	  	$	8,069	  	  	$	 50,000	  	  	$	 100,000	  
	602-05-028	    	Southwest Area Well Assessment	  	$	-      	  	  	$	14,743	  	  	$	10,000	  	  	$	70,000	  
	602-05-029	    	Southeast Area Well Assessment	  	$	23,080	  	  	$	23,773	  	  	$	25,000	  	  	$	70,000	  
	602-05-030	    	SW Area Water Master Plan	  	$	1,457	  	  	$	90	  	  	$	-      	  	  	$	-      	  
	602-05-039	    	Maricopa Admin Office	  	$	 1,077,781	  	  	$	4,501,241	  	  	$	-      	  	  	$	-      	  
	602-05-046	    	Fixed Network Installation	  	$	-      	  	  	$	158,151	  	  	$	-      	  	  	$	 -      	  
	602-05-062	    	SCWC DAWS Southwest	  	$	-      	  	  	$	6,478	  	  	$	-      	  	  	$	-      	  
	602-06-000	    	Miscellaneous Projects - 2006	  	$	17,040	  	  	$	-      	  	  	$	 -      	  	  	$	-      	  
	602-06-015	    	SE Water Master Plan	  	$	3,970	  	  	$	-      	  	  	$	-      	  	  	$	-      	  
	602-06-024	    	SCWC DAWS Southeast	  	$	-      	  	  	$	18,363	  	  	$	 -      	  	  	$	-      	  
	602-06-034	    	NW Water Master Plan	  	$	-      	  	  	$	25,704	  	  	$	-      	  	  	$	-      	  
	602-06-999	    	Conveyance Costs - 2006	  	$	-      	  	  	$	120	  	  	$	-      	  	  	$	-      	  
	602-07-000	    	Miscellaneous Projects - 2007	  	$	-      	  	  	$	61,066	  	  	$	-      	  	  	$	-      	  
	602-07-004	    	SCWC Water Master Planning	  	$	-      	  	  	$	8,060	  	  	$	-      	  	  	$	-      	  
	602-07-999	    	Conveyance Costs - 2007	  	$	-      	  	  	$	5,390	  	  	$	-      	  	  	$	-      	  
	602-08-004	    	Operational Upgrades	  	$	-      	  	  	$	-      	  	  	$	75,000	  	  	$	170,000	  
		    	Subtotal	  	$	1,139,634	  	  	$	4,831,248	  	  	$	160,000	  	  	$	410,000	  
		    		  				  				  				  			
						
		    	 Total Water Major Capital Projects

 
	  	$  
	 5,949,221  
	    
	  	$  
	20,240,869  
	    
	  	$  
	 3,675,000  
	    
	  	$  
	 9,275,000  
	    

		    		  				  				  				  			
						
		    	 Cumulative Total (Santa Cruz)

 
	  	$  
	5,949,221  
	    
	  	$  
	26,190,090  
	    
	  	$  
	29,865,090  
	    
	  	$  
	39,140,090  
	    

		    		  				  				  				  			
						
		    	Cumulative Total (Palo Verde)	  	$	8,593,426	  	  	$	21,274,624	  	  	$	23,099,624	  	  	$	37,349,624	  
						
		    	 CUMULATIVE TOTAL (Palo Verde & Santa Cruz)

 
	  	$  
	        14,642,647  
	    
	  	$  
	        47,464,714  
	    
	  	$  
	        52,964,714  
	    
	  	$  
	        76,489,714  
	    

  
 Page 4 

 EXHIBIT D 

COST OF ISSUANCE 

 EXHIBIT E 

FORM OF DISBURSEMENT SCHEDULE 

STATEMENT NO.
                         REQUESTING DISBURSEMENT OF FUNDS FROM 

PROJECT FUND PURSUANT TO SECTION 3.4 OF THE FIRST 

AMENDMENT TO LOAN AGREEMENT 
 DATED
AS OF NOVEMBER 1, 2007, BETWEEN 
 THE INDUSTRIAL DEVELOPMENT AUTHORITY OF 

THE COUNTY OF PIMA 
 AND GLOBAL
WATER RESOURCES, LLC 
 Pursuant to Section 3.2 of the Loan Agreement (the “Agreement”) between The
Industrial Development Authority of the County of Pima (the “Issuer”) and Global Water Resources, LLC (the “Company”), dated as of November 1, 2007, the undersigned Authorized Company Representative hereby requests and
authorizes U.S. Bank National Association, a national banking association validly existing and duly organized under the laws of the United States, as trustee (the “Trustee”), as depository of the Project Fund created by the Indenture and
defined in the Agreement, to pay to the Company or to the person(s) listed on the Disbursement Schedule attached hereto out of the moneys deposited in the Project Fund the aggregate sum of
$                         to pay such person(s) or to reimburse the Company in full, as indicated in the Disbursement
Schedule, for the advances, payments and expenditures made by it in connection with the items listed in the Disbursement Schedule. 

In connection with the foregoing request and authorization, the undersigned hereby certifies that: 

(a)        Each item for which disbursement is requested hereunder is
properly payable out of the Project Fund in accordance with the terms and conditions of the Agreement and none of those items has formed the basis for any disbursement heretofore made from said Project Fund. 

(b)        Each such item is or was necessary in connection with the
construction, installation, equipment or improvement of the Project, as defined in the Agreement. 

(c)        The Company has received, or will concurrently with payment
receive, appropriate waivers of any mechanics’ or other liens with respect to each item for which disbursement is requested hereunder. 

(d)        Check applicable provision(s):
(i)         Each item for which disbursement is requested hereunder, and the cost for each such item, is as described in the information statement filed by the Issuer in connection with the issuance of
the Bonds (as defined in the Agreement), as required by Section 149(e) of the Code. (ii)         one or more of such items is not as described in that information statement but, attached hereto is
a computation evidencing that the average reasonably expected economic life of the facilities which have been and will be paid for with moneys in the Project Fund is not less than 5/6ths of the average maturity of the Bonds or attached hereto is an
Opinion of Bond 

 Counsel to the effect that the requested disbursement will not cause interest on
the Bonds to be included in federal gross income for tax purposes. 

(e)        This statement and all exhibits hereto, including the
Disbursement Schedule, shall be conclusive evidence of the facts and statements set forth herein and shall constitute full warrant, protection and authority to the Trustee for its actions taken pursuant hereto. 

(f)        This statement constitutes the approval of the Company of
each disbursement hereby requested and authorized. 
 This          day of
                                         
       , 2007. 
  

 

Authorized Company Representative 

  
 E-2 

 DISBURSEMENT SCHEDULE 

TO STATEMENT
No.                                 REQUESTING AND AUTHORIZING DISBURSEMENT OF
FUNDS FROM PROJECT FUND PURSUANT TO SECTION 3.2 OF THE FIRST AMENDMENT TO LOAN AGREEMENT DATED AS OF NOVEMBER 1, 2007, BETWEEN THE INDUSTRIAL DEVELOPMENT AUTHORITY OF THE COUNTY OF PIMA AND GLOBAL WATER RESOURCES, LLC. 

 

					
	PAYEE	  	AMOUNT	  	PURPOSE

  
 E-3EX-10.11.3

 Exhibit 10.11.3 

EXECUTION COPY 
  

 
  

SECOND AMENDMENT TO LOAN AGREEMENT 

THE INDUSTRIAL DEVELOPMENT AUTHORITY 

OF THE COUNTY OF PIMA, 
 as
Issuer 
 GLOBAL WATER RESOURCES, LLC 

as Company 
 and 

U.S. BANK NATIONAL ASSOCIATION, 

as Trustee 
 amending a Loan
Agreement 
 dated as of December 1, 2006, as amended by a First Amendment to Loan Agreement dated as of 

November 1,2007 
 pertaining to

 $24,550,000 
 The Industrial
Development Authority 
 of the County of Pima 

Water and Wastewater Revenue Bonds 

(Global Water Resources, LLC Project) 

Series 2008 
 Dated as of
August 1, 2008 
  
  

 

 TABLE OF CONTENTS 
  

									
		  	 	Page	  
		
	 ARTICLE I

DEFINITIONS
	  			
				
	 Section 1.1.
	 		  	Definitions	  	 	3	  
	
	 ARTICLE II

REPRESENTATION AND COVENANTS
	   
   

				
	 Section 2.1.
	 		  	Representations of the Issuer	  	 	3	  
				
	 Section 2.2.
	 		  	Representations and Covenants of the Company	  	 	4	  
	
	 ARTICLE III

ISSUANCE OF THE SERIES 2008 BONDS AND DISBURSEMENT OF BOND PROCEEDS
	   
   

				
	 Section 3.1.
	 		  	Issuance of the Series 2008 Bonds; Application of Proceeds	  	 	10	  
				
	 Section 3.2.
	 		  	Disbursements from the Series 2008 Project Fund	  	 	10	  
	
	 ARTICLE IV

SERIES 2008 LOAN BY ISSUER; REPAYMENT OF THE SERIES 2008 LOAN; LOAN

PAYMENTS AND ADDITIONAL PAYMENTS
	   
   

  

				
	 Section 4.1.
	 		  	Loan Repayment; Delivery of Notes	  	 	12	  
	  
 ARTICLE V

 
 ARTICLE VI

MISCELLANEOUS
	 
   

   

  

				
	 Section 6.1.
	 		  	Effect of this Second Amendment to Loan Agreement	  	 	15	  
				
	 Section 6.2.
	 		  	Notice of A.R.S. Section 38-511 – Cancellation	  	 	16	  
				
	 Section 6.3.
	 		  	Counterparts	  	 	16	  
				
	 Section 6.4.
	 		  	Consent	  	 	16	  
				
	 EXHIBIT A
	 		  	FORM OF SERIES 2008 PROJECT NOTE	  			
				
	 EXHIBIT B
	 		  	PALO VERDE WATER FACILITY PROJECT DESCRIPTION	  			
				
	 EXHIBIT C
	 		  	SANTA CRUZ WATER FACILITY PROJECT DESCRIPTION	  			
				
	 EXHIBIT D
	 		  	COST OF ISSUANCE	  			
				
	 EXHIBIT E
	 		  	FORM OF DISBURSEMENT SCHEDULE	  			

 SECOND AMENDMENT TO LOAN AGREEMENT 

THIS SECOND AMENDMENT TO LOAN AGREEMENT, (the “Second Amendment to Loan Agreement”) dated as of
August 1, 2008, by and among THE INDUSTRIAL DEVELOPMENT AUTHORITY OF THE COUNTY OF PIMA (the “Issuer”), a nonprofit corporation designated as a political subdivision of the State of Arizona (the “State”), GLOBAL
WATER RESOURCES LLC, a Delaware limited liability company duly organized and validly existing under the laws of the State (the “Company”), and U.S. BANK NATIONAL ASSOCIATION (the “Trustee”) amends and modifies that
certain Loan Agreement dated as of December 1, 2006 (the “Series 2006 Loan Agreement”) as amended by a First Amendment to Loan Agreement dated as of November 1, 2007 (the “First Amendment to Loan Agreement” and together
with the Series 2006 Loan Agreement and Second Amendment to Loan Agreement, the “Loan Agreement”) among the Issuer, the Company and Trustee. 

W I T N E S S E T H: 

WHEREAS, the Issuer has heretofore issued its Water and Wastewater Revenue Bonds (Global Water Resources, LLC Project) Series
2006 (the “Series 2006 Bonds”), pursuant to a Trust Indenture dated as of December 1, 2006 (the “Series 2006 Indenture”) by and between the Issuer and U.S. Bank National Association (the “Trustee”), the proceeds of
which were used to fund a loan made to the Company, by the Issuer, pursuant to the terms of the Series 2006 Loan Agreement to provide financing or refinancing the costs of the acquisition, expansion, construction, improvement and equipping of
facilities for wastewater treatment and water treatment, as well as water reclamation pipelines, water pipelines, and wastewater collection pipelines, consisting of water, wastewater and reclaimed water infrastructure for water and wastewater
treatment, including water mains, sewer mains, reclaimed water mains, water treatment facilities, water distribution centers, wastewater lift stations, wastewater treatment facilities, and reclaimed water mixing and distribution centers as well as
related information and management systems, located at 41265 West Hiller Road, Maricopa, Arizona 85239 in the City of Maricopa, Arizona (collectively, the “Series 2006 Project”); and 

WHEREAS, the Issuer has also heretofore issued its Water and Wastewater Revenue Bonds (Global Water Resources, LLC Project)
Series 2007 (the “Series 2007 Bonds”) pursuant to the Series 2006 Indenture as supplemented by a First Supplemental Trust Indenture dated as of November 1, 2007 (the “First Supplemental Indenture”) by and between the Issuer
and the Trustee in order to provide funds to finance or refinance the costs of the acquisition, expansion, construction, improvement and equipping of water system major capital improvements, including a water distribution center, surface water
treatment facility, water production facilities, and pipeline, and sewerage system major capital improvements, including a water reclamation facility, sewage lift stations, reclaimed water recharge facilities and pipelines, located in the City of
Maricopa and in an unincorporated area of Pinal County, Arizona south of the Ak-Chin Indian Community in the City of Maricopa’s “Growing Smarter Planning Area” (the “Series 2007 Project”); and 

 WHEREAS, Section 11.01 of the Indenture, permits for the amendment of the
Loan Agreement not requiring consent of Holders in connection with the issuance of Additional Bonds as specified in Section 2.04 of the Indenture; and 

WHEREAS, the Company has requested the execution of this Second Amendment to Loan Agreement in order to facilitate the
issuance of Additional Bonds to provide funds to finance or refinance the costs of the acquisition, expansion, construction, improvement and equipping of water system major capital improvements, including a water distribution center, surface water
treatment facility, water production facilities, and pipeline, and sewerage system major capital improvements, including a water reclamation facility, sewage lift stations, reclaimed water recharge facilities and pipelines, located in the City of
Maricopa and in an unincorporated area of Pinal County, Arizona south of the Ak-Chin Indian Community in the City of Maricopa’s “Growing Smarter Planning Area” (the “Series 2008 Project”); and 

WHEREAS, the Issuer has determined to make amounts available in order to fund a loan to the Company in the principal amount of
$24,550,000 evidenced by this Second Amendment to Loan Agreement (the “Series 2008 Loan”); and 
 WHEREAS, in
order to provide funds necessary to enable the Issuer to make the Series 2008 Loan and pay certain related costs, the Issuer, pursuant to the Series 2006 Indenture, as amended by the First Supplemental Trust Indenture and as further amended by the
Second Supplemental Trust Indenture of even date herewith by and between the Issuer and Trustee (the “Second Supplemental Indenture” and together with the Series 2006 Indenture and the First Supplemental Indenture, the
“Indenture”), has authorized the issuance of its revenue bonds designated as “Water and Wastewater Revenue Bonds (Global Water Resources, LLC Project) Series 2008” in the principal amount of $24,550,000 (the “Series 2008
Bonds” and together with the Series 2006 Bonds, the Series 2007 Bonds and any Additional Bonds, the “Bonds”); and 

WHEREAS, the Issuer and Trustee have received an opinion from Bond Counsel meeting the requirements of Section 2.04 of
the Indenture; and 
 WHEREAS, in reliance upon such opinion from Bond Counsel, the Issuer is willing to execute and deliver
this Second Amendment to Loan Agreement; and 
 WHEREAS, all things necessary to make the Loan Agreement as amended hereby
the valid, binding and legal obligations of the Company, enforceable in accordance with its terms, have been done and performed, and the execution and delivery of this Second Amendment to Loan Agreement has been duly authorized; and 

WHEREAS, capitalized terms used in this Second Amendment to Loan Agreement and not otherwise defined herein shall have the
meanings ascribed thereto in the Series 2006 Indenture, the Series 2006 Loan Agreement, the First Supplemental Indenture, the First Amendment to Loan Agreement or the Second Supplemental Indenture. 

NOW, THEREFORE, the parties hereto agree that the Series 2006 Loan Agreement, as amended by the First Amendment to Loan
Agreement shall be and hereby is amended as set forth herein, as authorized by Section 11.01 of the Series 2006 Indenture. 

  
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 ARTICLE I 

DEFINITIONS 

Section 1.1. Definitions.        Capitalized terms used in this Second
Amendment to Loan Agreement and not otherwise defined herein shall have the meanings ascribed thereto in the Series 2006 Indenture, the Series 2006 Loan Agreement, the First Amendment to Loan Agreement, First Supplemental Indenture or the Second
Supplemental Indenture. The following definitions are hereby added to the Loan Agreement: 
 “Second Supplemental
Indenture” means that certain Second Supplemental Trust Indenture dated as of August 1, 2008 by and between the Issuer and the Trustee providing for the issuance of the Series 2008 Bonds. 

“Series 2008 Bonds” means the Issuer’s Water and Wastewater Revenue Bonds (Global Water Resources, LLC
Project) Series 2008. 
 “Series 2008 Project Note” means the non-negotiable Promissory Note of the
Company, dated October 1, 2008, in the form attached hereto as Exhibit A and in the principal amount of $24,550,000 evidencing the obligation of the Company to make Loan Payments, as it may be amended or restated hereunder. 

“Series 2008 Project Facilities” means, collectively, the Global Water - Palo Verde Utilities Company Series
2008 Project Facilities and the Global Water - Santa Cruz Water Company Series 2008 Project Facilities described in Exhibit B and Exhibit C hereto (and more particularly described in the Plans and Specifications), together with any additions,
modifications and substitutions to those facilities. 
 “Series 2008 Project Purposes” means constructing,
installing, equipping or improving real and personal property comprising, Series 2008 Project Facilities to be used to furnish water and to collect sewage, or such use as may result from a change in the Plans and Specifications authorized by
Section 3.2 of the Series 2006 Loan Agreement or which may otherwise be permitted by the Loan Agreement. 
 ARTICLE II 

REPRESENTATION AND COVENANTS 

Section 2.1. Representations of the Issuer.  The Issuer represents that: 

(a)        The Issuer is a nonprofit corporation designated as a
political subdivision of the State, created and existing under the Constitution and laws of the State; 

(b)        The Issuer has found and hereby declares that the issuance
of the Series 2008 Bonds to assist the financing of the Series 2008 Project is in furtherance of the public purposes set forth in the Act; 

  
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 (c)        In order to
finance the costs of the Series 2008 Project, in an amount estimated by the Company, the Issuer has duly authorized the execution, delivery, and performance on its part of the Purchase Contract, the Second Supplemental Indenture and this Second
Amendment to Loan Agreement; 
 (d)        To accomplish the
foregoing, the Issuer proposes to issue $24,550,000, in an aggregate principal amount of its Series 2008 Bonds immediately following the execution and delivery of this Second Amendment of Loan Agreement. The date, denomination or denominations, and
other pertinent provisions with respect to the Series 2008 Bonds are set forth in the Second Supplemental Indenture; 

(e)        The Issuer makes no representation or warranty that the
amount of the Series 2008 Loan will be adequate or sufficient to finance the Series 2008 Project or that the Series 2008 Project will be adequate or sufficient for the purposes of the Company; and 

(f)        The Issuer has not pledged, assigned, or granted, and will
not pledge, assign, or grant any of its rights or interest in or under the Loan Agreement, as amended by the First Amendment to Loan Agreement, as further amended by this Second Amendment to Loan Agreement for any purpose other than as provided in
the Series 2006 Indenture, as supplemented by the First Supplemental Indenture, as further supplemented by the Second Supplemental Indenture and any pledge, assignment or grant in violation of this (f) shall, to the extent permitted by law, be
invalid. 
 Section 2.2. Representations and Covenants of the
Company.        The Company represents and covenants that: 

(a)        It is a limited liability company duly organized and
validly existing under the laws of the State of Delaware and qualified to transact business in the State. 

(b)        It has full corporate power to cause the Series 2008
Project to be developed, constructed, operated, equipped, and maintained by Global Water - Palo Verde Utilities Company and by Global Water - Santa Cruz Water Company so that it is, and continues to be, a “project” within the meaning of
the Act. It is doing business in and is in good standing in the State and in each other jurisdiction where its ownership or lease of property or conduct of its business requires such qualification. 

(c)        It has full power and authority to execute, deliver and
perform this Second Amendment to Loan Agreement and the Series 2008 Project Note and to enter into and carry out the transactions contemplated by those documents. This Second Amendment to Loan Agreement and the Series 2008 Project Note have, by
proper action, been duly authorized, and delivered by the Company and all steps necessary have been taken to constitute this Second Amendment to Loan Agreement and the Series 2008 Project Note valid and binding obligations of the Company. 

(d)        The execution and delivery of this Second Amendment to Loan
Agreement, the Series 2008 Project Note, the Security Agreement, the Intercreditor Agreement, the Continuing Disclosure Undertaking of the Company dated as of 

  
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October 1, 2008, and the Bond Purchase Agreement dated September 12, 2008 as supplemented on September 19, 2008 among the Issuer, the Company and Hutchinson, Shockey,
Erley & Co. (collectively the “Company Documents”), and the consummation of the transactions therein contemplated, including the application of the proceeds of the Series 2008 Bonds as so contemplated, subject to the execution and
delivery of the Intercreditor Agreement will not conflict with, or constitute a breach of, or default by the Company under its articles of organization, its operating agreement or any resolution of its Board of Directors in effect on the date
hereof, indenture, mortgage, deed of trust, lease, note, loan agreement, or other agreement or instrument to which it is a party or by which it or its properties are bound, any order or opinion of the Arizona Corporation Commission, and will not
constitute a violation of any other statute, order, rule, or regulation of any court or governmental agency or body having jurisdiction over it in existence on the date hereof or any of its activities or properties which would have an adverse effect
on its activities or properties. It is not in breach, default, or in violation of any statute, indenture, mortgage, deed of trust, note, loan agreement, or other agreement or instrument which would allow the obligee or obligees thereof to take any
action which would adversely affect its performance under the Company Documents and covenants that it will cause Global Water - Palo Verde Utilities Company and Global Water - Santa Cruz Water Company to comply with all conditions and requirements
imposed on it by the ACC. 
 (e)        There are no actions, suits,
or proceedings of any type whatsoever pending, or to its knowledge, threatened against or affecting the Company or Global Water - Palo Verde Utilities Company or Global Water - Santa Cruz Water Company or the assets, properties, or operations of any
of them which, if determined adversely to the Company or its interests, would have a material adverse effect upon its operations or finances, except as disclosed in the Company Documents or the Preliminary Limited Offering Memorandum dated
August 25, 2008 for the Series 2008 Bonds, or upon the validity or enforceability of the Company Documents and none of the Company or Global Water - Palo Verde Utilities Company or Global Water - Santa Cruz Water Company is in default with
respect to any order or decree of any court or any order, regulation, or decree of any federal, state, municipal, or other governmental agency, which default would materially and adversely affect its operations, properties or its finances. 

(f)        Neither the representations of the Company contained in the
Company Documents nor any oral or written statement furnished by the Company to the Issuer or the Original Purchaser in connection with the transactions contemplated hereby, contain any untrue statement of a material fact or omit to state a material
fact necessary to make the statements contained herein or therein not misleading. There is no fact that the Company has not disclosed to the Issuer or the Original Purchaser of the Series 2008 Bonds in writing that materially and adversely affects
the properties, business, prospects, profits, or condition (financial or otherwise) of the Company or the ability of the Company to perform its obligations under the Company Documents or any documents or transactions contemplated hereby or thereby.

  
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 (g)        The Series
2008 Project as designed and as proposed to be operated or caused to be operated by the Global Water - Palo Verde Utilities Company or Global Water - Santa Cruz Water Company, when constructed in accordance with such design, will meet all material
requirements of existing law, including material requirements of any federal, State, county, city or other governmental authority having jurisdiction over the Series 2008 Project or its use and operation and will be consistent with the Act. 

(h)        The Company’s federal employer identification number
is 20-0255460. 
 (i)        Reserved. 

(j)        All representations of the Company contained herein or in
any certificate or other instrument delivered by the Company pursuant hereto, or to the Series 2006 Indenture as supplemented by the First Supplemental Indenture, shall survive the execution and delivery thereof and the issuance, sale, and delivery
of the Series 2008 Bonds as representations of facts existing as of the date of such execution and delivery of the instrument containing such representation. 

(k)        The Series 2008 Project is and will be located within the
limits of the City of Maricopa, Arizona and in an unincorporated area of Pinal County, Arizona. 

(1)        The Series 2008 Project was commenced no earlier than
October 6, 2006. 100% of the proceeds ($24,550,000) of the Bonds in the Construction Account of the Series 2008 Project Fund will be used to reimburse the Company for expenses incurred in connection with the Series 2008 Project. 

(m)        There are no existing liens or encumbrances on property
owned by the Company, Global Water - Palo Verde Utilities Company or Global Water - Santa Cruz Water Company (except for the Wells Fargo Credit Agreement) which now or could in the future materially adversely affect the property owned by the
Company, Global Water - Palo Verde Utilities Company or Global Water - Santa Cruz Water Company or which could result in the property owned by the Company, Global Water - Palo Verde Utilities Company or Global Water - Santa Cruz Water Company being
transferred to any other entity. 
 (n)        The Company presently
intends to cause the Series 2008 Project to be used or operated in a manner consistent with the Series 2008 Project Purposes until the date on which the Bonds have been fully paid and knows of no reason why the Series 2008 Project will not be so
operated. If, in the future, there is a cessation of that operation, it will use its best efforts to resume that operation or accomplish an alternate use by the Company, Global Water - Palo Verde Utilities Company or Global Water - Santa Cruz Water
Company or others which will be consistent with the Act; provided, however, that this provision does not require the Company, Global Water - Palo Verde Utilities Company or Global Water - Santa Cruz Water Company to operate any portion of the Series
2008 Project after the Company shall determine in its discretion that such operations are no longer economic and does not prohibit the Company, Global Water - Palo Verde Utilities Company or Global Water - Santa Cruz Water Company from

  
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selling the Series 2008 Project or from merging into or consolidating with another corporation in accordance with Section 5.3 of the Series 2006 Loan Agreement. 

(o)        The use of the Series 2008 Project as it is proposed to be
operated, complies with all currently applicable material requirements of zoning, development, pollution control, water conservation, environmental, and other laws, regulations, rules and ordinances of the federal government and the State and the
respective agencies thereof and the political subdivisions in which the Series 2008 Project is to be located. 

(p)        The Company has obtained all necessary approvals of and
licenses, permits, consents and franchises from federal, state, county, municipal or other governmental authorities having jurisdiction over the Series 2008 Project to acquire, construct, improve and equip the Series 2008 Project, and to enter into,
and execute and perform its obligations under this Agreement and the other Company Documents, in each case under presently applicable law and regulations, other than permits and licenses which are not now required. 

(q)        To the best of the Company’s actual knowledge, none of
the current Issuer Indemnified Parties has any significant or conflicting interest, financial, employment or otherwise, in the Company, Global Water - Palo Verde Utilities Company or Global Water - Santa Cruz Water Company, the Series 2008 Project
or in any of the transactions contemplated under the Company Documents. 

(r)        There has been no material adverse change in the financial
condition, prospects or business affairs of the Company, Global Water - Palo Verde Utilities Company or Global Water - Santa Cruz Water Company or the feasibility or physical condition of the Series 2008 Project subsequent to the date on which the
Issuer granted its resolution approving the issuance of the Series 2008 Bonds. 

(s)        The Company (a) understands the nature of the
structure of the transactions related to the financing of the Series 2008 Project; (b) is familiar with all of the provisions of the Series 2006 Indenture, as supplemented by the First Supplemental Indenture and as further supplemented by the
Second Supplemental Indenture and all documents and instruments related to such financing to which the Company or the Issuer is a party or to which the Company is a beneficiary; (c) understands the risk inherent in such transactions, including
without limitation, the risk of loss of the Series 2008 Project; and (d) has not relied upon the Issuer for any guidance or expertise in analyzing the financial consequences of such financing transactions or otherwise relied upon the Issuer in
any manner, except to issue the Series 2008 Bonds in order to provide funds for the Series 2008 Loan. 

(t)        The Company hereby acknowledges receipt of the Series 2006
Indenture, as supplemented by the First Supplemental Indenture and as further supplemented by the Second Supplemental Indenture and agrees to be bound by their terms. 

(u)        All representations of the Company contained herein or in
any certificate or other instrument delivered by the Company pursuant hereto, to the Series 2006 

  
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Indenture, as supplemented by the First Supplemental Indenture and as further supplemented by the Second Supplemental Indenture or in connection with the transactions contemplated hereby or
thereby, shall survive the execution and delivery hereof and thereof and the issuance, sale and delivery of the Series 2008 Bonds as representations of facts existing as of the date of execution and delivery of the instrument containing such
representations. 
 (v)        At least 95% of the net proceeds of
the Series 2008 Bonds (as defined in Section 150 of the Code) will be used to provide land or property of a character subject to the allowance for depreciation under Section 167 of the Code and to provide facilities which constitute
“facilities for the furnishing of water” within the meaning of Section 142(a)(4) and/or facilities which constitute “sewage facilities” within the meaning of Section 142(a)(5) of the Code. The Company will not request
or authorize any disbursement pursuant to Section 3.2 hereof, which, if paid, would result in less than 95% of the net proceeds of the Series 2008 Bonds being spent. 

(w)        The costs of issuance financed by the Series 2008 Bonds
will not exceed 2% of the aggregate face amount of the Series 2008 Bonds (within the meaning of Section 147(g) of the Code), and the Company will not request or authorize any disbursement pursuant to Section 3.2 of this Second Amendment to
Loan Agreement or otherwise, which, if paid, would result in more than 2% of the aggregate face amount of the Series 2008 Bonds being so used. None of the proceeds of the Series 2008 Bonds will be used to provide working capital. 

(x)        In accordance with Section 147(b) of the Code, the
average maturity of the Series 2008 Bonds does not exceed 120% of the average reasonably expected economic life of the facilities being financed by the Series 2008 Bonds, determined as of the later of the date the Series 2008 Bonds are issued or the
date the facilities are expected to be placed in service. 

(y)        None of the proceeds of the Series 2008 Bonds will be used
to provide any airplane, skybox or other private luxury box, or health club facility; any facility primarily used for gambling; or any store the principal business of which is the sale of alcoholic beverages for consumption off premises. 

(z)        Less than 25% of the proceeds of the Series 2008 Bonds
will be used directly or indirectly to acquire land or any interest therein. 

(aa)        No portion of the proceeds of the Series 2008 Bonds will
be used to acquire existing property or any interest therein unless such acquisition meets the rehabilitation requirements of Section 147(d) of the Code. 

(bb)        The information furnished by the Company and used by the
Issuer in preparing the certification pursuant to Section 148 of the Code and information statement pursuant to Section 149(e) of the Code, both referred to in the Bond Legislation, as well as the federal tax election referred to in the
Bond Legislation, is accurate and complete as of the date of the issuance of the Series 2008 Bonds. 

  
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 (cc)        In connection
with any lease or grant by the Company of the use of the Series 2008 Project, the Company shall require that the lessee or user of any portion of the Series 2008 Project shall not (i) violate the covenant set forth in subsection (n) above
and (ii) use that portion of the Series 2008 Project in any manner which would violate the covenants set forth in subsections (n), (o) and (v). 

(dd)        After the expiration of any applicable temporary period
under Section 148(d)(3) of the Code, at no time during any bond year will the aggregate amount of gross proceeds of the Series 2008 Bonds invested in higher yielding investments (within the meaning of Section 148(b) of the Code) exceed 150
percent of the debt service on the Series 2008 Bonds for such bond year and the aggregate amount of gross proceeds of the Series 2008 Bonds invested in higher yielding investments, if any, will be promptly and appropriately reduced as the amount of
outstanding Series 2008 Bonds are reduced; provided, however, that the foregoing shall not require the sale or disposition of any investments in higher yielding investments if such sale or disposition would result in a loss which exceeds the amount
which would be paid to the United States pursuant to Section 5.09 of the Indenture (but for such sale or disposition) at the time of such sale or disposition if a payment under Section 5.09 of the Indenture were due at such time. 

At no time will any funds constituting gross proceeds of the Series 2008 Bonds be used in a manner as to
constitute a prohibited payment under the applicable Regulations pertaining to, or in any other fashion as would constitute failure of compliance with, Section 148 of the Code. 

For purposes of this subsection (dd), the terms “bond year,” “gross proceeds,”
“higher yielding investments,” “yield,” and “debt service” have the meanings assigned to them for purposes of Section 148 of the Code. 

(ee)        The Series 2008 Bonds are not “federally
guaranteed” within the meaning of Section 149(b) of the Code. 

(ff)        Until completion of an initial public offering of
securities by the Company (or a successor) as a result of which the Company (or such successor) becomes subject to Section 13 or Section 15(d) of the Securities Exchange Act of 1934 (the “Act”), which among other things requires
the filing of quarterly and other periodic reports with the Securities and Exchange Commission (“SEC”), as well as during any quarterly period thereafter for which the Company is not required under Sections 13 or 15(d) of the Act to file
quarterly reports, the Company shall provide Company-prepared unaudited quarterly reports of the Company within sixty (60) days following the end of each fiscal quarter, beginning with the fiscal quarter ending on September 30, 2008, in
the same manner that the Company is required to file information under its Continuing Disclosure Undertaking executed with respect to the Series 2008 Bonds and containing the same financial information that would be required to be reported on a Form
10-Q filed with the SEC. Within two years following the date of delivery of the Series 2008 Bonds, and not less frequently than every two years thereafter, the Company shall use commercially reasonable efforts to obtain an investment grade rating to
be assigned to the Series 2008 Bonds by a nationally recognized rating agency. 

  
 9 

 ARTICLE III 

ISSUANCE OF THE SERIES 2008 BONDS AND DISBURSEMENT 

OF BOND PROCEEDS 

Section 3.1. Issuance of the Series 2008 Bonds; Application of Proceeds.  To provide funds to make the
Series 2008 Loan for purposes of assisting in paying the Series 2008 Project Costs, the Issuer will issue, sell and deliver the Series 2008 Bonds to the Original Purchaser. The Series 2008 Bonds will be issued pursuant to the Indenture in the
aggregate principal amount, will bear interest, will mature and will be subject to redemption as set forth therein. 
 The
Company hereby approves the terms and conditions of the Second Supplemental Indenture and the Series 2008 Bonds, and of the terms and conditions under which the Series 2008 Bonds will be issued, sold and delivered. 

The proceeds from the initial sale of the Series 2008 Bonds shall be paid over to the Trustee and deposited as described in
Section 2.09 of the Second Supplemental Indenture. 
 Pending disbursement pursuant to Section 3.2 hereof, the
proceeds deposited in the Series 2008 Project Fund, together with any investment earnings thereon, shall constitute a part of the Revenues assigned by the Issuer to the payment of Bond Service Charges as provided in the Indenture. 

At the request of the Company, and for the purposes and upon fulfillment of the conditions specified in the Indenture, the
Issuer may provide for the issuance, sale and delivery of Additional Bonds and loan the proceeds from the sale thereof to the Company. 

Section 3.2. Disbursements from the Series 2008 Project
Fund.        (a) Subject to the provisions below, disbursements from the Series 2008 Project Fund shall be made only to reimburse or pay the Company, or any person designated by the Company, for the
following Series 2008 Project Costs: 
 (1)        Costs incurred
directly or indirectly for or in connection with the construction, installation, equipment or improvement of the Series 2008 Project, including costs incurred in respect of the Series 2008 Project for preliminary planning and studies; architectural,
legal, engineering, accounting, consulting, supervisory and other services; labor, services and materials; permit fees; and recording of documents and title work and acquisition of land. There shall be an initial disbursement from the Construction
Account of the Series 2008 Project Fund to the Company in the approximate amount of $11,157,186 in order to reimburse the Company for expenses incurred in connection with the Series 2008 Project from and after April 20, 2008. This disbursement
shall take place immediately upon closing. 
 (2)        Premiums
attributable to any surety bonds and insurance taken out and maintained during the Construction Period with respect to the Project Site and the Project Facilities. 

  
 10 

 (3)        Taxes,
assessments and other governmental charges in respect of the Series 2008 Project that may become due and payable during the Series 2008 Construction Period. 

(4)        Costs incurred directly or indirectly in seeking to
enforce any remedy against any contractor or subcontractor in respect of any actual or claimed default under any contract relating to the Project Facilities. 

(5)        Financial, legal, accounting, printing and engraving fees,
charges and expenses, and all other such fees, charges and expenses incurred in connection with the authorization, sale, issuance, and delivery of the Series 2008 Bonds, including, without limitation, the fees and expenses of the Trustee and any
paying agent properly incurred under the Indenture that may become due and payable during the Series 2008 Construction Period; provided that the costs of issuance of the Series 2008 Bonds financed by the Series 2008 Bonds shall not exceed 2% of the
aggregate face amount of the Series 2008 Bonds within the meaning of Section 147(g) of the Code and all such costs in excess of such 2% limit shall be paid from funds deposited into the Cost of Issuance Account of the Series 2008 Project Fund
in the amounts set forth on Exhibit D hereto upon receipt of an invoice from the payee 

(6)        Any other costs, expenses, fees and charges properly
chargeable to the cost of construction, installation, equipment or improvement of the Series 2008 Project. 

(7)        Payment of interest on the Series 2008 Bonds during the
Series 2008 Construction Period. 
 (8)        Payments made to the
Rebate Fund. 
 (b)        Any disbursements from the Series 2008
Project Fund for the payment of Series 2008 Project Costs shall be made by the Trustee only upon the written order of the Authorized Company Representative. Each such written order shall be in substantially the form of the disbursement request
attached hereto as Exhibit E and shall be consecutively numbered and accompanied by invoices or other appropriate documentation supporting the payments or reimbursements requested. 

(c)        Any disbursement for any item not described in, or the cost
for which item is other than as described in, the information statement filed by the Issuer in connection with the issuance of the Series 2008 Bonds as required by Section 149(e) of the Code and referred to in Section 2.2 hereof, shall be
accompanied by evidence satisfactory that the average reasonably expected economic life of the facilities being financed by the Series 2008 Bonds is not less than 5/6ths of the average maturity of the Series 2008 Bonds or, if such evidence is not
presented with the disbursement or, by an opinion of Bond Counsel to the effect that such disbursement will not cause the interest on the Series 2008 Bonds to be included in the gross income of the Holders for federal income tax purposes. 

  
 11 

 (d)        In case any
contract provides for the retention by the Company of a portion of the contract price, there shall be paid from the Series 2008 Project Fund only the net amount remaining after deduction of any such portion, and only when that retained amount is due
and payable, may it be paid from the Series 2008 Project Fund. 

(e)        Any moneys in the Series 2008 Project Fund remaining after
the Completion Date and payment, or provision for payment, in full of the Series 2008 Project Costs, at the direction of the Authorized Company Representative, promptly shall be 

(1)        used to acquire, construct, install, equip and improve
such additional real or personal property in connection with the Series 2008 Project which shall constitute part of the Series 2008 Project as is designated by the Authorized Company Representative and the acquisition, construction, installation,
equipment and improvement of which will be permitted under the Act, provided that any such use shall be accompanied by evidence satisfactory to the Holder that the average reasonably expected economic life of such additional property, together with
the other property theretofore acquired with the proceeds of the Series 2008 Bonds, will not be less than 5/6ths of the average maturity of the Series 2008 Bonds or, if such evidence is not presented with the direction, an opinion of Bond Counsel to
the effect that the acquisition of such additional property will not cause the interest on the Series 2008 Bonds to be included in the gross income of the Holders for federal income tax purposes; 

(2)        used for the purchase of Series 2008 Bonds in the open
market for the purpose of cancellation at prices not exceeding the full market value thereof plus accrued interest thereon to the date of payment therefor; 

(3)        paid into the Bond Fund to be applied to the redemption or
payment of the Series 2008 Bonds; or 
 (4)        a combination of
the foregoing as is provided in that direction. 
 In all such cases, any payments made pursuant to this subparagraph
(e) shall be made only to the extent that such use or application will not, in the opinion of Bond Counsel or under a ruling of the Internal Revenue Service, cause the interest on the Series 2008 Bonds to be included in the gross income of the
Holders for federal income tax purposes. 
 ARTICLE IV 

SERIES 2008 LOAN BY ISSUER; REPAYMENT OF THE SERIES 2008 LOAN; 

LOAN PAYMENTS AND ADDITIONAL PAYMENTS 

Section 4.1. Loan Repayment; Delivery of Notes.        (a) Upon the
terms and conditions of the Series 2006 Loan Agreement, as amended by the First Amendment to Loan Agreement, as further amended by this Second Amendment to Loan Agreement, the Issuer will make the Series 2008 Loan to the Company. In consideration of
and in repayment of the Series 2008 Loan, the Company shall make, as Loan Payments, payments which correspond, as to amount, to the Bond 

  
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Service Charges payable on the Series 2008 Bonds. All such Loan Payments shall be paid to the Trustee in accordance with the terms of the Project Note, the Series 2007 Project Note and the Series
2008 Project Note, shall be paid to the Trustee in immediately available funds on the Business Day prior to each day on which Bond Service Charges are payable on any Bonds and shall be held and disbursed in accordance with the provisions of the
Indenture and the Loan Agreement for application to the payment of Bond Service Charges. The Series 2008 Loan and the Series 2008 Project Note shall be additionally secured by and in accordance with the terms of the Security Agreement on a parity
with the Project Note and the Series 2007 Project Note. The Project Note, the Series 2007 Project Note and Series 2008 Project Note shall be payable solely from and secured solely by the Company’s right to receive Income Available for Debt
Service. 
 The Company shall be entitled to a credit against the Loan Payments next required to be made to the extent that
the balance of the Bond Fund is then in excess of amounts required (1) for the payment of Bonds theretofore matured or theretofore called for redemption, (2) for the payment of interest for which checks or drafts have been drawn and mailed
by the Trustee and (3) for the payment of interest for which moneys were deposited in the Bond Fund pursuant to Section 2.03(c) of the Indenture. 

In any event, however, if on the Business Day prior to the date on which the Bond Service Charges are payable, the balance in
the Bond Fund is insufficient to make required payments of Bond Service Charges, the Company forthwith will pay to the Trustee for deposit into the Bond Fund, any deficiency. 

(b)        If the Trustee withdraws moneys from the Bond Reserve Fund
as provided in the Indenture due to a deficiency in the Bond Fund, or if upon a valuation of the amount on deposit in the Bond Reserve Fund which is required by Section 5.04(b) of the Indenture the Bond Reserve Value (as defined in the
Indenture) is less than 90% of the Bond Reserve Requirement, and in either such case upon notification by the Trustee to the Company of the deficiency, the Loan Payments shall thereafter include such amounts, in equal monthly installments due on the
first day of each succeeding six months, as are necessary to cause the Bond Reserve Value to be not less than the Bond Reserve Requirement within a period of 6 months from the date of such notice. 

(c)        In connection with the issuance of any Additional Bonds,
the Company shall execute and deliver to the Trustee one or more Additional Notes in a form substantially similar to the form of the Project Note, the Series 2007 Project Note and the Series 2008 Project Note as set forth in Section 4.1
(a) above. All such Additional Notes shall: 

(1)        provide for payments of interest equal to the payments of
interest on the corresponding Additional Bonds; 

(2)        require payments of principal and redemption payments and
any premium equal to the payments of principal, prepayments and sinking fund payments and any premium on the corresponding Additional Bonds; 

  
 13 

 (3)        require all
payments on any such Additional Notes to be made no later than the due dates for the corresponding payments to be made on the corresponding Additional Bonds; and 

(4)        contain by reference or otherwise optional and mandatory
redemption provisions and provisions in respect of the optional and mandatory acceleration or prepayment of principal and any premium corresponding with the redemption and acceleration provisions of the corresponding Additional Bonds. 

All Notes shall secure equally and ratably all outstanding Bonds, except that, so long as no Event of Default has occurred and
is subsisting hereunder, payments by the Company on any of the Notes shall be used by the Trustee to make a like payment of Bond Service Charges on the corresponding Bonds in connection with which those Notes were delivered and shall constitute Loan
Payments made in respect of the related Bonds. 
 (d)        Upon
payment in full, in accordance with the Indenture, of the Bond Service Charges on any or all Bonds, whether at maturity or by redemption or otherwise, or upon provision for the payment thereof having been made in accordance with the provisions of
the Indenture, (i) the Notes issued concurrently with those corresponding Bonds, of the same maturity, bearing the same interest rate and in an amount equal to the aggregate principal amount of the Bonds so surrendered and canceled or for the
payment of which provision has been made, shall be deemed fully paid, the obligations of the Company thereunder shall be terminated, and any of those Notes shall be surrendered by the Trustee to the Company, and shall be canceled by the Company, or
(ii) in the event there is only one of those Notes, an appropriate notation shall be endorsed thereon evidencing the date and amount of the principal payment or prepayment equal to the Bonds so paid, or with respect to which provision for
payment has been made, and that Note shall be surrendered by the Trustee to the Company for cancellation if all Bonds shall have been paid (or provision made therefor) and canceled as aforesaid. Unless the Company is entitled to a credit under
express terms of this Agreement or the Notes, all payments on each of the Notes shall be in the full amount required thereunder. 

(e)        Except for such interest of the Company as may hereafter
arise pursuant to Section 8.5 of the Series 2006 Loan Agreement or for such interest of the Issuer as may hereafter arise pursuant to Section 5.07 of the Series 2006 Indenture, the Company and the Issuer each acknowledge that neither the
Company nor the Issuer has any interest in the Bond Fund and Bond Reserve Fund and any moneys deposited therein shall be in the custody of and held by the Trustee in trust for the benefit of the Holders pursuant to the terms of the Indenture. 

ARTICLE V 

Section 5.1 Amendment to Section 5.3 of the Series 2006 Loan
Agreement.        Article V, Section 5.3 of the Series 2006 Loan Agreement is hereby deleted in its entirety and replaced with the following Section 5.3: 

  
 14 

 “Section 5.3. Company to Maintain Its Existence; Sales of Assets or
Mergers.        The Company shall do all things necessary to preserve and keep in full force and effect its existence, rights, franchises, licenses and governmental approvals and those of Palo Verde
Utilities Company and Santa Cruz Water Company including, without limitation such licenses and approvals as may be required to operate the Project for Project Purposes, except as otherwise permitted by this Section 5.3, and to perform its
obligations under this Agreement. 
 In particular, the Company shall not, nor permit Palo Verde Utilities Company or Santa Cruz Water
Company to (a) sell, transfer or otherwise dispose of all, or substantially all, of its assets; (b) consolidate with or merge into any other entity; or (c) permit one or more other entities to consolidate with or merge into it. The
preceding restrictions nor any other restrictions herein regarding the transfer of Company interests (or any change in control of the Company) shall not apply, however, to a public offering of all or a part of the member interests of the Company or
the reorganization of the Company whereby Global Water Resources, Inc. (incorporated on May 2, 2008) acquires 100% of the limited liability company interests of the Company and then offers for sale to the public shares in Global Water
Resources, Inc. all as further set forth in the Preliminary Limited Offering Memorandum dated August 25, 2008 in the section entitled “Proposed Reorganization of the Company”. Additionally, the preceding restrictions shall not apply
to a transaction if all of the following conditions are met: 

(1)        unless the transferee or the surviving or resulting entity
is a public service corporation, and the transferee or the surviving or resulting entity has a net worth, determined in accordance with generally accepted accounting principles consistently applied, equal to or greater than the net worth of the
Company immediately prior to such consolidation, merger, sale, transfer or disposition; 

(2)        the transferee or the surviving or resulting entity, if
other than the Company, by proper written instrument satisfactory to the Issuer and the Trustee, irrevocably and unconditionally assumes the obligation to perform and observe the agreements and obligations of the Company under this Agreement; and

 (3)        the Company delivers to the Issuer and the Trustee an
opinion of Bond Counsel to the effect that such disposition, sale, transfer, consolidation or merger does not, in and of itself, adversely affect the exclusion from federal gross income of interest on the Bonds.” 

ARTICLE VI 

MISCELLANEOUS 

Section 6.1. Effect of this Second Amendment to Loan
Agreement.        Except as expressly supplemented and amended by this Second Amendment to Loan Agreement, all of the terms and conditions of the Loan Agreement as amended by the First Amendment to Loan

  
 15 

 
Agreement shall remain in full force and effect. If a conflict exists between the provisions of this Second Amendment to Loan Agreement and the Series 2006 Loan Agreement or First Amendment to
Loan Agreement, this Second Amendment to Loan Agreement shall control. 
 Section 6.2. Notice of A.R.S.
Section 38-511 – Cancellation.        Notice is hereby given of the provisions of Arizona Revised Statutes Section 38-511, as amended. By this reference, the provisions of said statute are
incorporated herein to the extent of their applicability to contracts of the nature of this First Amendment to Loan Agreement under the law of the State. 

Section 6.3. Counterparts.        This Second Amendment to Loan Agreement
may be executed in one or more counterparts, each of which shall be deemed an original instrument. 
 Section 6.4.
Consent.        The Company hereby consents to the execution of the Second Amendment to Loan Agreement. 

[Remainder of page intentionally left blank] 

  
 16 

 IN WITNESS WHEREOF, the Issuer, the Company and Trustee have caused this Second
Amendment to Loan Agreement to be duly executed in their respective names, all as of the date hereinbefore written. 
  

			
	 THE INDUSTRIAL DEVELOPMENT

AUTHORITY OF THE COUNTY OF PIMA,
 as Issuer

		
	By:	 	/s/ Stanley Lehman

 
			
	Name:	 	Stanley Lehman

 
			
	Title:	 	Vice President

 
			
	
	 GLOBAL WATER RESOURCES, LLC, as

Company

		
	By:	 	/s/ Trevor T. Hill

 
			
	Name:	 	Trevor T. Hill

 
			
	Title:	 	President/CEO

 
			
	
	 U.S. BANK NATIONAL ASSOCIATION, as

Trustee

		
	By:	 	/s/ Brenda D. Black

 
			
	Name:	 	Brenda D. Black

 
			
	Title:	 	Vice President

 [SIGNATURE PAGE TO SECOND AMENDMENT 

TO LOAN AGREEMENT] 

 EXHIBIT A 

FORM OF 
 SERIES 2008
PROJECT NOTE 
 GLOBAL WATER RESOURCES, LLC (the “Company”), a limited liability company duly organized and
validly existing under the laws of the State of Delaware and qualified to transact business in the State of Arizona, for value received, promises to pay to U.S. Bank National Association, as Trustee (the “Trustee”) under the Indenture
hereinafter referred to, the principal sum of: 
 TWENTY-FOUR MILLION FIVE HUNDRED FIFTY THOUSAND DOLLARS 

($24,550,000) 
 and to pay
interest on the unpaid balance of such principal sum from and after October 1, 2008 (the date of original issuance and delivery of the Series 2008 Bonds (defined below)) at the interest rates specified below until the payment of such principal
sum has been made or provided for. Interest shall be calculated on the basis of a 360-day year. 
 Additional Payments shall
also be payable in the amounts and at the times provided in the Second Amendment to Loan Agreement, dated as of August 1, 2008, each between The Industrial Development Authority of the County of Pima (the “Issuer”) and the Company
(the “Agreement”). 
 This Note has been executed and delivered by the Company to the Trustee pursuant to the
Series 2006 Loan Agreement, dated as of December 1, 2006, as amended by the First Amendment to Loan Agreement dated as of November 1, 2007, as further amended by the Second Amendment to Loan Agreement dated as of August 1, 2008
between the Issuer and the Company (collectively, the “Loan Agreement”). Under the Loan Agreement, the Issuer has loaned the Company the principal proceeds received from the sale of the Issuer’s $24,550,000 aggregate principal amount
of Water and Wastewater Revenue Bonds (Global Water Resources, LLC Project), Series 2008, dated October 1, 2008 (the “Series 2008 Bonds”) to assist in the financing of the Series 2008 Project (as defined in the Second Amendment to
Loan Agreement), and the Company has agreed to repay such loan by making payments (the “Loan Payments”) at the times and in the amounts set forth on Schedule I attached hereto for application to the payment of the principal of and
redemption premium, if any, and interest on the Series 2008 Bonds as and when due and to maintain the Bond Reserve Fund as required by Section 4.1 of the Series 2006 Loan Agreement and Section 5.04 (b) of the Series 2006 Indenture
(identified below), subject to the credits permitted under Section 4.1 of the Series 2006 Loan Agreement. The Bonds have been issued, concurrently with the execution and delivery of this Series 2008 Project Note, pursuant to, and are secured
by, the Series 2006 Indenture, dated as of December 1, 2006, as supplemented by the First Supplemental Trust Indenture, dated as of November 1, 2007, as further supplemented by a Second Supplemental Trust Indenture dated as of
August 1, 2008 between the Issuer and the Trustee (collectively, the “Indenture”). 

 All capitalized terms not otherwise defined in this Series 2008 Project Note
shall have the meanings set forth in the Indenture. The Series 2008 Bonds also bear interest from their date at the interest rates specified below, payable June 1 and December 1 commencing June 1, 2009 and mature on December 1 in
the years and the principal amounts as set forth on Schedule II attached hereto. 
 To provide funds to pay the principal,
redemption premium, if any, and interest on the Series 2008 Bonds as and when due as above-specified, the Company hereby agrees to and shall make Loan Payments, in immediately available funds, on or before each Business Day (as defined in the Loan
Agreement) prior to any date upon which any principal of, premium, if any, and interest on the Series 2008 Bonds is due, in all events in amounts sufficient to pay principal of, premium, if any, and interest on the Series 2008 Bonds when due and
payable by their terms, whether at stated maturity, by acceleration, by redemption or otherwise. 
 If payment or provision
for payment in accordance with the Indenture is made in respect of the principal of, and redemption premium, if any, and interest on the Series 2008 Bonds from moneys other than Loan Payments, this Series 2008 Project Note shall be deemed paid to
the extent such payments or provision for payment of Series 2008 Bonds has been made. Subject to the foregoing, all Loan Payments shall be in the full amount required hereunder. 

All Loan Payments shall be payable in lawful money of the United States of America and shall be made to the Trustee at its
principal corporate trust office and deposited in the Bond Fund created by the Indenture. Except as otherwise provided in the Indenture, such Loan Payments shall be used by the Trustee to pay the principal of, redemption premium, if any, and
interest on the Series 2008 Bonds as and when due. 
 Except as allowed in the Agreement, the obligation of the Company to
make the payments required hereunder shall be absolute and unconditional and the Company shall make such payments without abatement, diminution or deduction regardless of any cause or circumstances whatsoever including, without limitation, any
defense, set-off, recoupment or counterclaim which the Company may have or assert against the Issuer, the Trustee or any other person. 

This Series 2008 Project Note is subject to redemption prior to stated maturity, pursuant to the obligation of the Company to
give the Issuer and the Trustee sufficient notice of such redemption as shall enable the Issuer and the Trustee to take all action necessary under the Indenture to redeem, on the date specified for prepayment, a like principal amount of Series 2008
Bonds at the same redemption price. Redemption of this Note prior to stated maturity can occur on the same conditions and at the same time as the Bonds are subject to redemption, as set forth in the Series 2008 Bonds and the Indenture. 

Whenever an event of default under Section 7.01 of the Series 2006 Indenture shall have occurred and, as a result
thereof, the principal of and any premium on all Bonds then outstanding, and interest accrued thereon, shall have been declared to be immediately due and payable pursuant to Section 7.02 of the Series 2006 Indenture, the unpaid principal amount
of and any premium and accrued interest on this Series 2008 Project Note shall also be due and payable on the date on which the principal of and premium and interest on the Bonds shall have 

  
 A-2 

 
been declared due and payable; provided that the annulment of a declaration of acceleration with respect to the Bonds shall also constitute an annulment of any corresponding declaration with
respect to this Series 2008 Project Note. The remedies hereunder following any default of this Series 2008 Project Note shall be limited as set forth in Section 4.1(a) of the Series 2006 Loan Agreement (i.e., recourse against the Company shall
be limited to the Company’s rights to receive the Income Available for Debt Service (as defined in the Series 2006 Loan Agreement). The payment of amounts due under this Series 2008 Project Note and under the Loan Agreement are secured by an
Amended and Restated Security Agreement, dated as of August 1, 2008 from the Company to the Trustee. 

  
 A-3 

 IN WITNESS WHEREOF, the Company has caused this Note to be executed in its name
by its duly authorized officers on October 1, 2008. 
  

			
	GLOBAL WATER RESOURCES, LLC
		
	By:	 	 
	Name:	 	Trevor T. Hill
	Title:	 	President/CEO

 SCHEDULE I 

TO 
 SERIES 2008 PROJECT
NOTE 
 Relating to 

THE INDUSTRIAL DEVELOPMENT AUTHORITY 

OF THE COUNTY OF PIMA 

WATER AND WASTEWATER REVENUE BONDS 

(GLOBAL WATER RESOURCES, LLC PROJECT) 

SERIES 2008 
 Series 2008
Loan Payment Schedule 
  

							
	 Payment

Dates
	  	 Principal

Component
	  	 Interest

Component
	  	 Loan

Payment

Total

 SCHEDULE II 

TO 
 PROJECT NOTE 

Relating to 
 THE
INDUSTRIAL DEVELOPMENT AUTHORITY 
 OF THE COUNTY OF PIMA 

WATER AND WASTEWATER REVENUE BONDS 

(GLOBAL WATER RESOURCES, LLC PROJECT) 

SERIES 2006 
  

	Dated:	 December 28, 2006 

	Delivery:	 December 28, 2006 

  

							
	 Maturity

(December 1)
	  	 Principal

Amount
	  	Interest Rate	  	 CUSIP

(72177T)

				
	 2017
	  	  $6,910,000	  	5.45%	  	AK8
				
	 2022
	  	  $6,215,000	  	5.60%	  	AL6
				
	 2032
	  	$23,370,000	  	5.75%	  	AN2

 SCHEDULE III 

TO 
 SERIES 2007 PROJECT
NOTE 
 Relating to 

THE INDUSTRIAL DEVELOPMENT AUTHORITY 

OF THE COUNTY OF PIMA 

WATER AND WASTEWATER REVENUE BONDS 

(GLOBAL WATER RESOURCES, LLC PROJECT) 

SERIES 2007 
  

	Dated:	 November 28, 2007 

	Delivery:	 November 28, 2007 

  

							
	 Maturity

(December 1)
	  	 Principal

Amount
	  	Interest Rate	  	 CUSIP

(72177T)

				
	 2013
	  	    1,635,000	  	5.500%	  	AR3
				
	 2037
	  	$52,500,000	  	6.550%	  	AZ5

 EXHIBIT B 

PALO VERDE WATER FACILITY 

PROJECT DESCRIPTION 

 INDUSTRIAL DEVELOPEMENT AUTHORITY OF THE COUNTY OF PIMA 

WATER AND WASTEWATER REVENUE BONDS-Palo Verde 
 CAPITAL PROJECTS

  

																			
						
	   Project Number

 
	  	 Description

 
	  	 Q4-2007

 
	 	  	 YTD 2008

 
	 	  	 Projected

 
	 	  	 Total

$
	 
						
		  	Sewer System Major Capital Improvements	  				  				  				  			
		  		  				  				  				  			
	 	  	Water Reclamation Facilities	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 
	 202-04-009
	  	 Convert Existing Lagoons
	  	 	-	  	  	 	-	  	  	 	-	  	  	 	-	  
	 202-04-012
	  	 Palo Verde WRF Expansion
	  	 	-	  	  	 	17,935	  	  	 	-	  	  	 	17,935	  
	 202-05-036
	  	 Southwest Area WRF Campus No. 2
	  	 	60,848	  	  	 	240,722	  	  	 	-	  	  	 	301,570	  
	 202-06-016
	  	 Campus 1 Overall Site Improvement
	  	 	23,908	  	  	 	433,837	  	  	 	-	  	  	 	457,745	  
	 202-06-028
	  	 Campus 3 (SE) WRF Recharge
	  	 	-	  	  	 	1,022	  	  	 	-	  	  	 	1,022	  
	 202-06-036
	  	 Campus 2 Overall Site Improvement
	  	 	16,432	  	  	 	45,689	  	  	 	-	  	  	 	62,122	  
	 202-07-002
	  	 Campus 1 Recharge
	  	 	33,866	  	  	 	18,759	  	  	 	-	  	  	 	52,625	  
	 202-07-017
	  	 WWTP Capacity Enhancements
	  	 	4,035	  	  	 	3,249	  	  	 	-	  	  	 	7,284	  
	 202-07-021
	  	 Campus I WRF Phase III Expansion
	  	 	37,313	  	  	 	177,882	  	  	 	-	  	  	 	215,195	  
	 202-07-024
	  	 Maricopa Meadows Retention Structure Level Control
	  	 	-	  	  	 	2,895	  	  	 	-	  	  	 	2,895	  
	 202-07-025
	  	 Campus I WRF Control Systems Improvements
	  	 	-	  	  	 	-	  	  	 	-	  	  	 	-	  
	 202-08-500-01AA
	  	 Palo Verde WRF
	  	 	-	  	  	 	404,926	  	  	 	-	  	  	 	404,926	  
	 202-08-700
	  	 WRF VFD Rehab and Upgrades
	  	 	-	  	  	 	57,704	  	  	 	-	  	  	 	57,704	  
	 202-08-701
	  	 Belt Filter Press Rehab
	  	 	-	  	  	 	30,347	  	  	 	-	  	  	 	30,347	  
	 202-08-702
	  	 Failed Decanter
	  	 	-	  	  	 	36,161	  	  	 	-	  	  	 	36,161	  
	 202-08-703
	  	 Headworks Upgrade
	  	 	-	  	  	 	7,605	  	  	 	-	  	  	 	7,605	  
	 202-08-706
	  	 Sand Filter Improvements
	  	 	-	  	  	 	38,532	  	  				  	 	38,532	  
	 202-08-709
	  	 Effluent Pump VFD
	  	 	-	  	  	 	5,205	  	  	 	-	  	  	 	5,205	  
	 202-08-712
	  	 PLC Code at PV WRF
	  	 	-	  	  	 	16,500	  	  				  	 	16,500	  
	 202-08-713
	  	 Sand Filter Feed Pump
	  	 	-	  	  	 	5,266	  	  	 	-	  	  	 	5,266	  
	 202-08-715
	  	 Cooling System Improvements
	  	 	-	  	  	 	31,437	  	  	 	-	  	  	 	31,437	  
	 202-XX-XXX
	  	 Water Reclamation Facilities (Future)
	  	 	-	  	  	 	-	  	  	 	5,000,000	  	  	 	5,000,000	  
	 	  	Subtotal	  	 	176,402	  	  	 	1,575,674	  	  	 	5,000.000	  	  	 	6.752,076	  
		  		  				  				  				  			
	 	  	Lift Stations	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 
	 202-04-013
	  	 Influent Pump Station at PVUC WRF
	  	 	-	  	  	 	-	  	  	 	-	  	  	 	-	  
	 202-05-037
	  	 SE Area Lift Station
	  	 	23,426	  	  	 	21,248	  	  	 	-	  	  	 	44,673	  
	 202-05-055
	  	 SE Area Force Main
	  	 	7,373	  	  	 	-	  	  	 	-	  	  	 	7,373	  
	 202-05-072
	  	 Tortosa Lift Station
	  	 	-	  	  	 	2,088	  	  	 	-	  	  	 	2,088	  
	 202-05-704
	  	 McDavid Lift Station & Force Main
	  	 	-	  	  	 	-	  	  	 	-	  	  	 	-	  
	 202-05-706
	  	 Alterra Lift Station & Force Main
	  	 	-	  	  	 	-	  	  	 	-	  	  	 	-	  
	 202-05-708
	  	 Smith Farms LS & FM (incl Gravity)
	  	 	-	  	  	 	-	  	  	 	-	  	  	 	-	  
	 202-06-008
	  	 SW Area Main Lift Station
	  	 	5,279	  	  	 	24,243	  	  	 	-	  	  	 	29,522	  
	 202-07-003
	  	 Lift Station Upgrades (H2S Protection & Odor Control)
	  	 	12,607	  	  	 	121,900	  	  	 	-	  	  	 	134,507	  
	 202-07-008
	  	 2nd VFD @ Campus 1 Influent Lift Station
	  	 	4,776	  	  	 	110	  	  	 	-	  	  	 	4,886	  
	 202-07-701
	  	 Palo Verde Lift Station - Pump Down Sizing
	  	 	-	  	  	 	2,390	  	  	 	-	  	  	 	2,390	  
	 202-07-703
	  	 Groves Lift Station Pumps
	  	 	-	  	  	 	48,825	  	  	 	-	  	  	 	48,825	  
	 202-07-704
	  	 Odor Control System Upgrades
	  	 	-	  	  	 	6,411	  	  	 	-	  	  	 	6,411	  
	 202-08-500-01CC
	  	 Cobblestone Lift Station
	  	 	-	  	  	 	28,051	  	  	 	-	  	  	 	28,051	  
	 202-08-500-01HH
	  	 Rancho El Dorado Lit Station
	  	 	-	  	  	 	9,325	  	  	 	-	  	  	 	9,325	  
	 202-08-705
	  	 RED Liftstation Upgrades
	  	 	-	  	  	 	113,139	  	  	 	-	  	  	 	113,139	  
	 202-08-707
	  	 Influent Pipe Protection
	  	 	-	  	  	 	188	  	  	 	-	  	  	 	188	  
	 202-08-722
	  	 Alterra Sewer System
	  	 	-	  	  	 	5,592	  	  	 	-	  	  	 	5,592	  
	 202-XX-XXX
	  	 Lift Stations (Future)
	  	 	-	  	  	 	-	  	  				  	 	-	  
	 	  	Subtotal	  	 	53,460	  	  	 	383,510	  	  	 	-	  	  	 	436,970	  
		  		  				  				  				  			
	 	  	Reclaimed Water Distribution Centers	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 
	 202-XX-XXX
	  	 Reclaimed Water Distribution Centers & Pipelines
	  	 	-	  	  	 	-	  	  	 	-	  	  	 	-	  
	 	  	Subtotal	  	 	-	  	  	 	-	  	  	 	-	  	  	 	-	  
		  		  				  				  				  			
	 	  	Recharge Facilities	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 
	 202-06-035
	  	 Campus 2 Recharge Wells (SW)
	  	 	-	  	  	 	1,600	  	  	 	-	  	  	 	1,600	  
	 202-XX-XXX
	  	 Recharge Facilities (Future)
	  	 	-	  	  	 	-	  	  	 	-	  	  	 	-	  
	 	  	Subtotal	  	 	-	  	  	 	1,600	  	  	 	-	  	  	 	1,600	  
		  		  				  				  				  			
	 	  	Pipelines	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 
	 202-04-015
	  	 Bowlin Rd Utilities (Santa Rosa Wash to Dunn Ranch)
	  	 	-	  	  	 	-	  	  	 	-	  	  	 	-	  
	 202-04-019
	  	 24” Reclaimed in Santa Rosa Wash (Smith Enke to South)
	  	 	-	  	  	 	-	  	  	 	-	  	  	 	-	  

																			
	 202-04-026
	  	 Honeycutt Utilities (Porter to Fuqua)
	  	 	-	  	  	 	-	  	  	 	-	  	  	 	-	  
	 202-05-021
	  	 SR 347 (Bowlin to Palo Brea)
	  	 	-	  	  	 	-	  	  	 	1,500,000	  	  	 	1,500,000	  
	 202-05-022
	  	 Modification to Porter Well Raw Water Line
	  	 	-	  	  	 	-	  	  	 	-	  	  	 	-	  
	 202-05-024
	  	 Bowlin Rd Utilities (Porter to Smith Farms)
	  	 	-	  	  	 	-	  	  	 	-	  	  	 	-	  
	 202-05-026
	  	 White & Parker (Honeycutt to Farrell)
	  	 	-	  	  	 	-	  	  	 	-	  	  	 	-	  
	 202-05-038
	  	 Bowlin Rd Utilities (White & Parker to Hartman)
	  	 	-	  	  	 	-	  	  	 	-	  	  	 	-	  
	 202-05-041
	  	 Farrell (White & Parker to Hartman)
	  	 	329	  	  	 	2,970	  	  	 	-	  	  	 	3,299	  
	 202-05-050
	  	 Sorrento Reclaimed Water Line
	  	 	-	  	  	 	-	  	  	 	-	  	  	 	-	  
	 202-05-056
	  	 Maricopa Business Center
	  	 	-	  	  	 	-	  	  	 	-	  	  	 	-	  
	 202-05-063
	  	 Peters & Nall Utilities (Amarillo Valley to Green)
	  	 	-	  	  	 	-	  	  	 	-	  	  	 	-	  
	 202-05-064
	  	 Green Rd Utilities (Peters & Nall to Val Vista)
	  	 	1,116	  	  	 	7,100	  	  	 	-	  	  	 	8,216	  
	 202-05-065
	  	 Papago Rd Utilities (White to Green)
	  	 	131,525	  	  	 	14,101	  	  	 	-	  	  	 	145,626	  
	 202-05-074
	  	 Amarillo Creek Oversizing
	  	 	-	  	  	 	234,520	  	  	 	-	  	  	 	234,520	  
	 202-06-009
	  	 Santa Cruz Ranch Utilities
	  	 	-	  	  	 	17,945	  	  	 	-	  	  	 	17,945	  
	 202-06-010
	  	 Eagle Shadow Sanitary Sewer
	  	 	-	  	  	 	-	  	  	 	-	  	  	 	-	  
	 202-06-012
	  	 Bowlin Rd Utilities (White & Parker to Fuqua)
	  	 	-	  	  	 	1,790	  	  	 	-	  	  	 	1,790	  
	 202-06-029
	  	 Lakes at Maricopa Reclaimed Water Line
	  	 	24,436	  	  	 	920,571	  	  	 	-	  	  	 	945,007	  
	 202-06-031
	  	 Ralston Road Utilities
	  	 	-	  	  	 	-	  	  	 	-	  	  	 	-	  
	 202-06-032
	  	 Legends Ranch Utilities
	  	 	400	  	  	 	3,134	  	  	 	-	  	  	 	3,534	  
	 202-07-005
	  	 Eagle Shadow Reclaimed
	  	 	-	  	  	 	85	  	  	 	-	  	  	 	85	  
	 202-07-007
	  	 White & Parker (Farrell to Daltessa)
	  	 	4,746	  	  	 	-	  	  	 	-	  	  	 	4,746	  
	 202-07-009
	  	 Vintage Estates Utilities
	  	 	155	  	  	 	10,502	  	  	 	-	  	  	 	10,657	  
	 202-07-010
	  	 Green Rd Utilities (Val Vista to Terrazo)
	  	 	18,735	  	  	 	35,553	  	  	 	-	  	  	 	54,288	  
	 202-07-013
	  	 Maricopa Opus/Hidden Valley Utilities
	  	 	12,856	  	  	 	14,506	  	  	 	-	  	  	 	27,362	  
	 202-07-019
	  	 Stagestop Marketplace (Sewer)
	  	 	76,968	  	  	 	-	  	  	 	-	  	  	 	76,968	  
	 202-07-026
	  	 Sorrento Sewer Oversizing
	  	 	-	  	  	 	42,560	  	  	 	-	  	  	 	42,560	  
	 202-08-005
	  	 Santa Rosa Wash 30” Sewer Encasement
	  	 	-	  	  	 	5,069	  	  	 	-	  	  	 	5,069	  
	 202-XX-XXX
	  	 Pipelines (Future)
	  	 	-	  	  	 	-	  	  	 	-	  	  	 	-	  
	 	  	Subtotal	  	 	271,266	  	  	 	1,310,405	  	  	 	1,500,000	  	  	 	3,081,872	  
		  		  				  				  				  			
	 	  	SCADA	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 
	 202-06-004
	  	 SCADA
	  	 	24,946	  	  	 	53,435	  	  	 	3,000,000	  	  	 	3,078,381	  
	 202-06-011
	  	 Lake Level Controls
	  	 	112,840	  	  	 	14,961	  	  	 	-	  	  	 	127,802	  
	 	  	Subtotal	  	 	137,787	  	  	 	68,396	  	  	 	3,000,000	  	  	 	3,206,183	  
		  		  				  				  				  			
	 	  	 Other
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 
	 202-04-020
	  	 Palo Verde WRF 9 MGD APP Amendment
	  	 	-	  	  	 	-	  	  	 	-	  	  	 	-	  
	 202-05-003
	  	 Upgrade Infrastructure AZPDES
	  	 	-	  	  	 	-	  	  	 	-	  	  	 	-	  
	 202-05-005
	  	 North Area Master Plan Update
	  	 	-	  	  	 	-	  	  	 	-	  	  	 	-	  
	 202-05-035
	  	 Golf Course Wash
	  	 	-	  	  	 	-	  	  	 	-	  	  	 	-	  
	 202-05-043
	  	 SW WRF Recharge Evaluation & Permitting (APP & AZPDES)
	  	 	14,900	  	  	 	47,597	  	  	 	-	  	  	 	62,497	  
						
	 202-05-044
	  	 SW Area WW Master Plan
	  	 	-	  	  	 	-	  	  	 	-	  	  	 	-	  
	 202-05-045
	  	 GIS Implementation
	  	 	-	  	  	 	25,260	  	  	 	-	  	  	 	25,260	  
	 202-05-051
	  	 Consolidated 208 Plan Amendment
	  	 	-	  	  	 	-	  	  	 	250,000	  	  	 	250,000	  
	 202-05-054
	  	 SE Area WW Master Plan
	  	 	-	  	  	 	-	  	  				  	 	-	  
	 202-06-000
	  	 Miscellaneous Projects - 2006
	  	 	-	  	  	 	-	  	  	 	-	  	  	 	-	  
	 202-07-000
	  	 Miscellaneous Projects - 2007
	  	 	31,864	  	  	 	2,900	  	  	 	-	  	  	 	34,765	  
	 202-07-004
	  	 PVUC Wastewater Master Planning
	  	 	-	  	  	 	887	  	  	 	-	  	  	 	887	  
	 202-07-018
	  	 AZPDES Renewal
	  	 	10,797	  	  	 	16,323	  	  	 	-	  	  	 	27,120	  
	 202-07-700
	  	 Santa Rosa Wash Manholes
	  	 	-	  	  	 	3,171	  	  				  	 	3,171	  
	 202-07-999
	  	 Conveyance Costs - 2007
	  	 	405	  	  	 	-	  	  	 	-	  	  	 	405	  
	 202-08-000
	  	 Miscellaneous Projects - Commencing 2008
	  	 	-	  	  	 	497	  	  	 	-	  	  	 	497	  
	 202-08-001
	  	 2008 Sewer Manhole Rehabilitation Program
	  	 	-	  	  	 	104,908	  	  	 	-	  	  	 	104,908	  
	 202-08-006
	  	 CC & N Expansion
	  	 	-	  	  	 	3,160	  	  	 	-	  	  	 	3,160	  
	 202-08-009
	  	 Palo Verde Site Cleanup
	  	 	-	  	  	 	8,987	  	  	 	-	  	  	 	8,987	  
	 202-08-010
	  	 UCR Program Management
	  	 	-	  	  	 	9,730	  	  	 	-	  	  	 	9,730	  
	 202-08-708
	  	 Porter Rd Asphalt Repair
	  	 	-	  	  	 	1,025	  	  	 	-	  	  	 	1,025	  
	 202-08-710
	  	 Maricopa Microscope Project
	  	 	-	  	  	 	6,347	  	  				  	 	6,347	  
		  		  				  	 	-	  	  				  	 	-	  
	 202-08-714
	  	 PV Critical Spare Parts
	  	 	-	  	  	 	17,420	  	  	 	-	  	  	 	17,420	  
	 202-08-500-80AA
	  	 Equipment
	  	 	-	  	  	 	9,945	  	  	 	-	  	  	 	9,945	  
	 202-08-500-99AA
	  	 Meters and Services
	  	 	-	  	  	 	-	  	  	 	-	  	  	 	-	  
	 202-08-999
	  	 Conveyance Costs - 2008
	  	 	-	  	  	 	4,358	  	  	 	-	  	  	 	4,358	  
	 202-XX-XXX
	  	 Other (Future)
	  	 	-	  	  	 	-	  	  	 	750,000	  	  	 	750,000	  
	 	  	Subtotal	  	 	57,966	  	  	 	262,516	  	  	 	1,000,000	  	  	 	1,320,483	  
		  		  				  				  				  			
		  	Total Sewer Major Capital Projects	  	 	    696,882	  	  	 	3,602,102	  	  	 	10,500,000	  	  	 	14,798,983	  
		  		  	  
	  
	 
	 	  	 (Excluding GWM Fee)

 
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 

 EXHIBIT C 

SANTA CRUZ WATER FACILITY 

PROJECT DESCRIPTION 

 INDUSTRIAL DEVELOPEMENT AUTHORITY OF THE COUNTY OF PIMA 

WATER AND WASTEWATER REVENUE BONDS-Santa Cruz 
 CAPITAL PROJECTS

  

																			
						
	 Project Number

 
	  	 Description

 
	  	
Q4 - 2007

 
	 	  	 YTD 2008

 
	 	  	 Projected

 
	 	  	 Total

$
	 
						
		  	Water System Major Capital Improvements	  				  				  				  			
		  		  				  				  				  			
	 	  	Water Distribution Centers	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 
	 602-05-025
	  	 Rancho El Dorado WDC
	  	 	35,682	  	  	 	29,031	  	  	 	-	  	  	 	64,713	  
	 602-05-031
	  	 SW Area WTP - Terrazo
	  	 	-	  	  	 	343,048	  	  	 	-	  	  	 	343,048	  
	 602-05-032
	  	 Solana Ranch WDC
	  	 	-	  	  	 	-	  	  	 	-	  	  	 	-	  
	 602-05-033
	  	 Rancho Mirage WTP
	  	 	-	  	  	 	328,975	  	  	 	-	  	  	 	328,975	  
	 602-05-060
	  	 Sampling Stations
	  	 	-	  	  	 	-	  	  				  	 	-	  
	 602-05-073
	  	 Maricopa Meadows WDC Upgrades
	  	 	-	  	  	 	-	  	  	 	-	  	  	 	-	  
	 602-06-007
	  	 Maricopa Groves WDC Upgrades
	  	 	-	  	  	 	-	  	  	 	-	  	  	 	-	  
	 602-06-013
	  	 Southwest Surface Water Treatment Plant
	  	 	-	  	  	 	-	  	  				  	 	-	  
	 602-06-033
	  	 Legends Ranch Water Distribution Center
	  	 	4,823	  	  	 	477	  	  	 	-	  	  	 	5,299	  
	 602-07-001
	  	 Cortona Booster Pump Facility
	  	 	-	  	  	 	-	  	  	 	-	  	  	 	-	  
	 602-07-023
	  	 Cobblestone Irrigation Pump Station Improvements
	  	 	-	  	  	 	-	  	  	 	-	  	  	 	-	  
	 602-08-002
	  	 Terrazo WDC Reconstruction
	  	 	-	  	  	 	119,148	  	  	 	-	  	  	 	119,148	  
	 602-08-500-01AA
	  	 Rancho El Dorado WDC
	  				  	 	-	  	  				  	 	-	  
	 602-08-500-02AA
	  	 Rancho Mirage WDC
	  	 	-	  	  	 	346	  	  	 	-	  	  	 	346	  
	 602-08-500-05AA
	  	 Maricopa Groves WDC
	  				  	 	1,010	  	  				  	 	1,010	  
	 602-08-700
	  	 Instrumentation Upgrade RED WDC
	  	 	-	  	  	 	1,348	  	  	 	-	  	  	 	1,348	  
	 602-XX-XXX
	  	 Water Distribution Centers (Future)
	  				  	 	-	  	  	 	2,500,000	  	  	 	2,500,000	  
	 	  	Subtotal	  	 	40,505	  	  	 	823,383	  	  	 	2,500,000	  	  	 	3,363,887	  
		  		  				  				  				  			
	 	  	Surface Water Treatment Facilities	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 
	 602-05-048
	  	 Maricopa Groves Plant Conversion to Surface Water Treatment
	  	 	2,617	  	  	 	22,428	  	  	 	-	  	  	 	25,045	  
	 602-XX-XXX
	  	 Surface Water Treatment Facilities (Expansion)
	  	 	-	  	  	 	-	  	  	 	-	  	  	 	-	  
	 	  	Subtotal	  	 	2,617	  	  	 	22,428	  	  	 	-	  	  	 	25,045	  
		  		  				  				  				  			
	 	  	Well Development	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 
	 602-04-023
	  	 Upgrade of Neely Wells
	  	 	6,129	  	  	 	4,815	  	  	 	-	  	  	 	10,944	  
	 602-05-004
	  	 Neely Wells Connections at Water Treatment Facility
	  	 	-	  	  	 	-	  	  	 	-	  	  	 	-	  
	 602-05-047
	  	 Upgrade Glennwilde Well
	  	 	50,179	  	  	 	35,309	  	  	 	-	  	  	 	85,488	  
	 602-05-069
	  	 Amarillo Creek East Well Upgrades
	  	 	147,324	  	  	 	79,395	  	  	 	-	  	  	 	226,718	  
	 602-05-070
	  	 Sunset Canyon Well Upgrades
	  	 	7,561	  	  	 	6,809	  	  	 	-	  	  	 	14,370	  
	 602-06-003
	  	 Cobblestone Well Rehab
	  	 	-	  	  	 	-	  	  	 	-	  	  	 	-	  
	 602-06-011
	  	 Lake Level Controls
	  	 	104,593	  	  	 	4,462	  	  	 	-	  	  	 	109,055	  
	 602-06-021
	  	 Palomino Ranch South Well Upgrades
	  	 	-	  	  	 	-	  	  	 	-	  	  	 	-	  
	 602-06-022
	  	 Amarillo Creek South Well Upgrades
	  	 	1,465	  	  	 	233	  	  	 	-	  	  	 	1,698	  
	 602-06-025
	  	 Rancho Mirage Well Upgrades
	  	 	6,796	  	  	 	-	  	  	 	-	  	  	 	6,796	  
	 602-06-026
	  	 Sorrento Well Upgrades
	  	 	-	  	  	 	-	  	  	 	-	  	  	 	-	  
	 602-06-027
	  	 Homestead East Well Upgrades
	  	 	-	  	  	 	-	  	  	 	-	  	  	 	-	  
	 602-06-030
	  	 Homestead West Well Upgrades
	  	 	38,735	  	  	 	-	  	  	 	-	  	  	 	38,735	  
	 602-06-037
	  	 Initial Well Development
	  	 	-	  	  	 	-	  	  	 	-	  	  	 	-	  
	 602-07-006
	  	 SCWC Well Development
	  	 	51,982	  	  	 	8,524	  	  	 	-	  	  	 	60,506	  
	 602-07-016
	  	 Neely East Control Valve
	  	 	600	  	  	 	14,939	  	  	 	-	  	  	 	15,539	  
	 602-07-022
	  	 Smith Well Rehabilitation
	  	 	16,127	  	  	 	3,761	  	  	 	-	  	  	 	19,888	  
	 602-08-003
	  	 Interim Sunset Canyon Well Improvements
	  	 	-	  	  	 	-	  	  	 	-	  	  	 	-	  
	 602-08-004
	  	 SCWC Potable Well
	  	 	-	  	  	 	5,325	  	  				  	 	5,325	  
	 602-08-006
	  	 CC & N Expansion
	  	 	-	  	  	 	7,994	  	  	 	-	  	  	 	7,994	  
	 602-08-007
	  	 Future Well New Source Water Sampling
	  	 	-	  	  	 	-	  	  	 	-	  	  	 	-	  
	 602-08-008
	  	 Rancho Mirage Well Pump Upgrades
	  	 	-	  	  	 	76,907	  	  	 	-	  	  	 	76,907	  
	 602-08-500-01BB
	  	 Neely West Well
	  	 	-	  	  	 	718	  	  				  	 	718	  
	 602-08-500-01DD
	  	 Neely North Well
	  	 	-	  	  	 	2,829	  	  	 	-	  	  	 	2,829	  
	 602-08-500-02CC
	  	 Rancho Mirage Well
	  	 	-	  	  	 	950	  	  	 	-	  	  	 	950	  
	 602-08-500-50LL
	  	 Rancho El Dorado Well
	  	 	-	  	  	 	3,008	  	  	 	-	  	  	 	3,008	  
	 602-08-500-51BB
	  	 Cobblestone Well
	  	 	-	  	  	 	3,114	  	  				  	 	3,114	  
	 602-08-500-53LL
	  	 Rancho Mirage
	  	 	-	  	  	 	7,855	  	  				  	 	7,855	  
	 602-08-500-55LL
	  	 Villages
	  	 	-	  	  	 	2,452	  	  				  	 	2,452	  
	 602-08-500-57BB
	  	 Glennwilde Well
	  	 	-	  	  	 	25,015	  	  				  	 	25,015	  
	 602-08-500-58LL
	  	 Glennwilde
	  	 	-	  	  	 	2,594	  	  				  	 	2,594	  
	 602-08-701
	  	 Smith Well Replacement
	  	 	-	  	  	 	2,410	  	  	 	-	  	  	 	2,410	  
	 602-08-705
	  	 Vance Well Flowmeter
	  	 	-	  	  	 	258	  	  	 	-	  	  	 	258	  
	 602-08-707
	  	 Porter Well Upgrades
	  	 	-	  	  	 	8,020	  	  	 	-	  	  	 	8,020	  
	 602-XX-XXX
	  	 New Well Development
	  	 	-	  	  	 	-	  	  	 	1,500,000	  	  	 	1,500,000	  
	 	  	Subtotal	  	 	431,491	  	  	 	307,697	  	  	 	1,500,000	  	  	 	2,239,188	  
		  		  				  				  				  			
	 	  	Pipelines	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 
	 602-04-008
	  	 10” Brine Waterline at Rancho El Dorado
	  	 	-	  	  	 	-	  	  	 	-	  	  	 	-	  
	 602-05-010
	  	 Fuqua Utilities (Honeycutt to Bowlin)
	  	 	-	  	  	 	-	  	  	 	-	  	  	 	-	  
	 602-05-013
	  	 Sorrento Raw Water Infrastructure
	  	 	-	  	  	 	-	  	  	 	-	  	  	 	-	  

																			
	 602-05-014
	  	 Rancho Mirage Raw Water Infrastructure
	  	 	-	  	  	 	-	  	  	 	-	  	  	 	-	  
	 602-05-022
	  	 Porter Road Raw Water Line
	  	 	-	  	  	 	-	  	  	 	-	  	  	 	-	  
	 602-05-023
	  	 DR Horton Raw Water Line
	  	 	-	  	  	 	-	  	  	 	-	  	  	 	-	  
	 602-05-026
	  	 White & Parker Rd Utilities (Bowlin to Farrell)
	  	 	-	  	  	 	-	  	  	 	-	  	  	 	-	  
	 602-05-041
	  	 Farrell Rd Utilities (White & Parker to Hartmann)
	  	 	-	  	  	 	4,550	  	  	 	-	  	  	 	4,550	  
	 602-05-042
	  	 Farrell Rd Utilities (Santa Rosa Wash to SR 347)
	  	 	53,574	  	  	 	3,208	  	  	 	-	  	  	 	56,782	  
	 602-05-049
	  	 Porter Rd Utilities (Bowlin to Farrell)
	  	 	137,142	  	  	 	275	  	  	 	-	  	  	 	137,417	  
	 602-05-052
	  	 RED PH III Raw Water Line
	  	 	-	  	  	 	-	  	  	 	-	  	  	 	-	  
	 602-05-056
	  	 Maricopa Business Center
	  	 	-	  	  	 	-	  	  	 	-	  	  	 	-	  
	 602-05-058
	  	 Maricopa Meadows Raw Water Line
	  	 	-	  	  	 	-	  	  	 	-	  	  	 	-	  
	 602-05-067
	  	 Amarillo Creek Potable/Raw Water Line
	  	 	1,130,412	  	  	 	1,168,751	  	  	 	-	  	  	 	2,299,163	  
	 602-05-074
	  	 Amanllo Creek Oversizing
	  	 	45,252	  	  	 	-	  	  	 	-	  	  	 	45,252	  
	 602-06-001
	  	 Hartmann Rd Watermain
	  	 	-	  	  	 	-	  	  	 	-	  	  	 	-	  
	 602-06-002
	  	 Rancho Mirage WDC Raw Water Line
	  	 	214,446	  	  	 	15,895	  	  	 	-	  	  	 	230,341	  
	 602-06-009
	  	 Santa Cruz Ranch Utilities
	  	 	-	  	  	 	33,418	  	  	 	-	  	  	 	33,418	  
	 602-06-012
	  	 Bowlin Rd Utilities (White & Parker to Fuqua)
	  	 	-	  	  	 	-	  	  	 	-	  	  	 	-	  
	 602-06-018
	  	 Palomino Ranch Raw Water Line
	  	 	-	  	  	 	-	  	  	 	-	  	  	 	-	  
	 602-06-019
	  	 Amarillo Creek - Pecan Woods Raw Water Line
	  	 	3,930	  	  	 	-	  	  	 	-	  	  	 	3,930	  
	 602-06-029
	  	 Lakes @ Maricopa Water Line
	  	 	2,633	  	  	 	8,749	  	  	 	-	  	  	 	11,381	  
	 602-06-032
	  	 Legends Ranch Utilities
	  	 	500	  	  	 	1,240	  	  	 	-	  	  	 	1,740	  
	 602-06-038
	  	 SE Raw Water Delivery Pipeline
	  	 	-	  	  	 	-	  	  	 	-	  	  	 	-	  
	 602-07-007
	  	 White & Parker (Farrell Rd to Del Tessa)
	  	 	-	  	  	 	1,585	  	  	 	-	  	  	 	1,585	  
	 602-07-009
	  	 Vintage Estates Utilities
	  	 	155	  	  	 	2,325	  	  	 	-	  	  	 	2,480	  
	 602-07-011
	  	 MSIDD Turnout No.3 for Legends Ranch
	  	 	-	  	  	 	-	  	  	 	1,000,000	  	  	 	1,000,000	  
	 602-07-012
	  	 Amarillo Creek Unit 3 Water
	  	 	-	  	  	 	-	  	  	 	-	  	  	 	-	  
	 602-07-013
	  	 Maricopa Opus/Hidden Valley Utilities
	  	 	15,424	  	  	 	22,573	  	  	 	-	  	  	 	37,997	  
	 602-07-014
	  	 Sunset Canyon Raw Water
	  	 	1,020	  	  	 	-	  	  	 	-	  	  	 	1,020	  
	 602-07-015
	  	 Porter Rd Utilites (Farrell Rd to Daltessa Heights)
	  	 	39,562	  	  	 	1,436	  	  	 	-	  	  	 	40,998	  
	 602-07-026
	  	 Sorrento Water Main Oversizing
	  	 	-	  	  	 	35,290	  	  	 	-	  	  	 	35,290	  
	 602-08-500-90AA
	  	 Pipeline Improvements
	  	 	-	  	  	 	2,136	  	  				  	 	2,136	  
	 602-08-703
	  	 16” Line in SRW Possible Encasement
	  	 	-	  	  	 	2,304	  	  	 	-	  	  	 	2,304	  
	 602-XX-XXX
	  	 Pipelines (Future)
	  	 	-	  	  	 	-	  	  	 	1,500,000	  	  	 	1,500,000	  
	 	  	Subtotal	  	 	1,644,050	  	  	 	1,303,735	  	  	 	2,500,000	  	  	 	5,447,785	  
		  		  				  				  				  			
	 	  	SCADA	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 
	 602-06-004
	  	 SCADA (North Area)
	  	 	50,613	  	  	 	486,503	  	  	 	-	  	  	 	537,116	  
	 602-XX-XXX
	  	 SCADA (Future)
	  	 	-	  	  	 	-	  	  				  	 	-	  
	 	  	Subtotal	  	 	50,613	  	  	 	486,503	  	  	 	-	  	  	 	537,116	  
		  		  				  				  				  			
	 	  	Other	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 
	 101-08-500-70AA
	  	 Deer Valley Support Center
	  	 	-	  	  	 	126,264	  	  	 	-	  	  	 	126,264	  
	 101-07-001GRTH
	  	 Growth Management
	  				  	 	10,388	  	  				  	 	10,388	  
	 602-05-006
	  	 North Area Well Assessments
	  	 	-	  	  	 	-	  	  	 	-	  	  	 	-	  
	 602-05-028
	  	 Southwest Area Well Assessment
	  	 	-	  	  	 	-	  	  	 	-	  	  	 	-	  
	 602-05-029
	  	 Southeast Area Well Assessment
	  	 	-	  	  	 	-	  	  	 	-	  	  	 	-	  
	 602-05-030
	  	 SW Area Water Master Plan
	  	 	-	  	  	 	-	  	  	 	-	  	  	 	-	  
	 602-05-039
	  	 Maricopa Admin Office
	  	 	208,056	  	  	 	273,697	  	  	 	-	  	  	 	481,753	  
	 602-05-045
	  	 GIS Imrplemantation
	  	 	51,936	  	  	 	146,768	  	  	 	-	  	  	 	198,704	  
	 602-05-046
	  	 Fixed Network Installation
	  	 	424,987	  	  	 	72,230	  	  	 	-	  	  	 	497,217	  
	 602-05-062
	  	 SCWC DAWS Southwest
	  	 	-	  	  	 	-	  	  	 	-	  	  	 	-	  
	 602-06-000
	  	 Miscellaneous Projects - 2006
	  	 	-	  	  	 	-	  	  	 	-	  	  	 	-	  
	 602-06-015
	  	 SE Water Master Plan
	  	 	-	  	  	 	-	  	  	 	-	  	  	 	-	  
	 602-06-024
	  	 SCWC DAWS Southeast
	  	 	1,540	  	  	 	3,260	  	  	 	-	  	  	 	4,800	  
	 602-06-034
	  	 NW Water Master Plan
	  	 	-	  	  	 	-	  	  	 	-	  	  	 	-	  
	 602-06-999
	  	 Conveyance Costs - 2006
	  	 	-	  	  	 	-	  	  	 	-	  	  	 	-	  
	 602-07-000
	  	 Miscellaneous Projects - 2007
	  	 	106,693	  	  	 	6,190	  	  	 	-	  	  	 	112,884	  
	 602-07-004
	  	 SCWC Water Master Planning
	  	 	6,616	  	  	 	13,788	  	  	 	-	  	  	 	20,404	  
	 602-07-700
	  	 Radiochem Samples (Uranium)
	  	 	-	  	  	 	5,610	  	  	 	-	  	  	 	5,610	  
	 602-07-999
	  	 Conveyance Costs - 2007
	  	 	286	  	  	 	-	  	  	 	-	  	  	 	286	  
	 602-08-000
	  	 Miscellaneous Projects - 2008
	  	 	-	  	  	 	2,455	  	  	 	-	  	  	 	2,455	  
	 602-08-009
	  	 Santa Cruz Site Cleanup
	  	 	-	  	  	 	8,987	  	  	 	-	  	  	 	8,987	  
	 602-08-500-70AA
	  	 Global Water Center
	  	 	-	  	  	 	16,619	  	  	 	-	  	  	 	16,619	  
	 602-08-500-80AA
	  	 Equipment
	  	 	-	  	  	 	762	  	  				  	 	762	  
	 602-08-500-80BB
	  	 Vehicles
	  	 	-	  	  	 	509	  	  	 	-	  	  	 	509	  
	 602-08-500-99AA
	  	 Meters and Services
	  	 	-	  	  	 	183,989	  	  	 	-	  	  	 	183,989	  
	 602-08-704
	  	 Tortosa Rd Repair
	  	 	-	  	  	 	256	  	  	 	-	  	  	 	256	  
	 602-08-706
	  	 Sorrento Blvd Rd Failure
	  	 	-	  	  	 	10,626	  	  				  	 	10,626	  
	 602-08-999
	  	 Conveyance Costs - 2008
	  	 	-	  	  	 	62,668	  	  	 	-	  	  	 	62,668	  
	 602-XX-XXX
	  	 Other (Future)
	  	 	-	  	  	 	-	  	  	 	-	  	  	 	-	  
	 	  	Subtotal	  	 	800,115	  	  	 	945,066	  	  	 	-	  	  	 	1,745,181	  
		  		  				  				  				  			
		  	Total Water Major Capital Projects	  	 	2,969,390	  	  	 	3,888,812	  	  	 	6,500,000	  	  	 	13,358,202	  
	 	  	(Excluding GWM Fee)	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 
		  		  				  				  				  			
		  	Total Water & Wastwater Major Capital Projects	  	 	    3,666,272	  	  	 	7,490,914	  	  	 	17,000,000	  	  	 	28,157,185	  
	 	  	(Excluding GWM Fee)	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 

 EXHIBIT D 

COST OF ISSUANCE 
  

					
	 Party
	 	 	  	Amount
			
	 Issuer’s Counsel Fees and Expenses
	 		  	$25,000
			
	 IDA Fees
	 		  	$3,000
			
	 Underwriter’s Counsel Fees and Expenses
	 		  	$78,000
			
	 Bond Counsel Fees and Expenses
	 		  	$100,000
			
	 Lender’s Counsel
	 		  	$15,000
			
		 		  	$221,000

 EXHIBIT E 

FORM OF DISBURSEMENT SCHEDULE 

STATEMENT NO.                  REQUESTING DISBURSEMENT
OF FUNDS FROM 
 PROJECT FUND PURSUANT TO SECTION 3.2 OF THE SECOND 

AMENDMENT TO LOAN AGREEMENT 
 DATED
AS OF AUGUST 1, 2008, BETWEEN 
 THE INDUSTRIAL DEVELOPMENT AUTHORITY OF 

THE COUNTY OF PIMA 
 AND GLOBAL
WATER RESOURCES, LLC 
 Pursuant to Section 3.2 of the Second Amendment to Loan Agreement between The Industrial
Development Authority of the County of Pima (the “Issuer”) and Global Water Resources, LLC (the “Company”), dated as of August 1, 2008, the undersigned Authorized Company Representative hereby requests and authorizes U.S.
Bank National Association, a national banking association validly existing and duly organized under the laws of the United States, as trustee (the “Trustee”), as depository of the Series 2008 Project Fund created by the Indenture and
defined in the Loan Agreement, to pay to the Company or to the person(s) listed on the Disbursement Schedule attached hereto out of the moneys deposited in the Series 2008 Project Fund the aggregate sum of
$                     to pay such person(s) or to reimburse the Company in full, as indicated in the Disbursement Schedule, for the advances,
payments and expenditures made by it in connection with the items listed in the Disbursement Schedule. 
 In connection with
the foregoing request and authorization, the undersigned hereby certifies that: 

(a)        Each item for which disbursement is requested hereunder is
properly payable out of the Series 2008 Project Fund in accordance with the terms and conditions of the Agreement and none of those items has formed the basis for any disbursement heretofore made from said Project Fund. 

(b)        Each such item is or was necessary in connection with the
construction, installation, equipment or improvement of the Project, as defined in the Agreement. 

(c)        The Company has received, or will concurrently with payment
receive, appropriate waivers of any mechanics’ or other liens with respect to each item for which disbursement is requested hereunder. 

(d)        Check applicable provision(s): (i)
             Each item for which disbursement is requested hereunder, and the cost for each such item, is as described in the information statement filed by the Issuer in connection
with the issuance of the Series 2008 Bonds (as defined in the Second Amendment to Loan Agreement), as required by Section 149(e) of the Code. (ii)              one or more of
such items is not as described in that information statement but, attached hereto is a computation evidencing that the average reasonably expected economic life of the facilities which have been and will be paid for with moneys in the Series 2008
Project Fund is not less than 5/6ths of the average maturity of the 

 Series 2008 Bonds or attached hereto is an Opinion of Bond Counsel to the effect
that the requested disbursement will not cause interest on the Series 2008 Bonds to be included in federal gross income for tax purposes. 

(e)        This statement and all exhibits hereto, including the
Disbursement Schedule, shall be conclusive evidence of the facts and statements set forth herein and shall constitute full warrant, protection and authority to the Trustee for its actions taken pursuant hereto. 

(f)        This statement constitutes the approval of the Company of
each disbursement hereby requested and authorized. 
 This
             day of
                                         
           , 2008. 
  

					
		 	 	  	
		 	 Authorized Company Representative    
	  	

 DISBURSEMENT SCHEDULE 

TO STATEMENT No.
                                        
REQUESTING AND AUTHORIZING DISBURSEMENT OF FUNDS FROM PROJECT FUND PURSUANT TO SECTION 3.2 OF THE SECOND AMENDMENT TO LOAN AGREEMENT DATED AS OF AUGUST 1, 2008, BETWEEN THE INDUSTRIAL DEVELOPMENT AUTHORITY OF THE COUNTY OF PIMA AND GLOBAL WATER
RESOURCES, LLC. 
 PAYEE
                                    AMOUNT    
                             PURPOSE

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