Document:

EX-10.18

 Exhibit 10.18 
  

GLOBAL WATER RESOURCES, INC. 

FIRST AMENDED AND RESTATED 

STOCK APPRECIATION RIGHTS PLAN 

Approved March 23, 2015 

 TABLE OF CONTENTS 

 

							
	 	 	 	  	Page	 
	 SECTION 1
	  			
	 PURPOSE, EFFECTIVE DATE, DURATION, GLOSSARY
	  			
			
	 1.1
	 	 General Purpose
	  	 	1	  
			
	 1.2
	 	 Effective Date
	  	 	1	  
			
	 1.3
	 	 Duration of Plan
	  	 	1	  
			
	 1.4
	 	 Glossary
	  	 	1	  
		
	 SECTION 2
	  			
	 ELIGIBILITY AND PARTICIPATION
	  			
			
	 2.1
	 	 Eligibility
	  	 	1	  
			
	 2.2
	 	 Actual Participation
	  	 	1	  
		
	 SECTION 3
	  			
	 STOCK APPRECIATION RIGHTS SUBJECT TO THE PLAN
	  			
			
	 3.1
	 	 Number
	  	 	1	  
			
	 3.2
	 	 Counting; Lapsed SARs
	  	 	2	  
			
	 3.3
	 	 Adjustment in Capitalization
	  	 	2	  
		
	 SECTION 4
	  			
	 GRANT AND EXERCISE OF STOCK APPRECIATION RIGHTS
	  			
			
	 4.1
	 	 Grant of SARs
	  	 	2	  
			
	 4.2
	 	 Exercisability of SARs
	  	 	2	  
			
	 4.3
	 	 Form and Timing of Payment
	  	 	3	  
			
	 4.4
	 	 Vesting
	  	 	3	  
		
	 SECTION 5
	  			
	 TERMINATION OF EMPLOYMENT; CHANGE IN CONTROL
	  			
			
	 5.1
	 	 Termination of Employee’s Employment for Reasons Other than Cause
	  	 	3	  
			
	 5.2
	 	 Termination for Cause
	  	 	4	  
			
	 5.3
	 	 Termination following Change in Control of the Company
	  	 	4	  
			
	 5.4
	 	 Change in Control of GWRC
	  	 	4	  
			
	 5.5
	 	 Discretion of the Board
	  	 	4	  
			
	 5.6
	 	 Participant Consent Not Required
	  	 	4	  
		
	 SECTION 6
	  			
	 ADMINISTRATION
	  			
			
	 6.1
	 	 Administration
	  	 	4	  
			
	 6.2
	 	 Delegation
	  	 	5	  

  
 i 

 TABLE OF CONTENTS 

(continued) 
  

							
	 	 	 	  	Page	 
			
	 6.3
	 	 Decisions Binding
	  	 	5	  
			
	 6.4
	 	 Claims
	  	 	5	  
		
	 SECTION 7
	  			
	 NON-TRANSFERABILITY
	  			
			
	 7.1
	 	 General
	  	 	5	  
			
	 7.2
	 	 Beneficiaries
	  	 	5	  
		
	 SECTION 8
	  			
	 AMENDMENT, MODIFICATION, AND TERMINATION
	  			
			
	 8.1
	 	 Amendment, Modification and Termination
	  	 	5	  
			
	 8.2
	 	 SARs Previously Granted
	  	 	6	  
			
	 8.3
	 	 Successors and Assigns
	  	 	6	  
		
	 SECTION 9
	  			
	 TAX WITHHOLDING
	  			
		
	 SECTION 10
	  			
	 INDEMNIFICATION
	  			
		
	 SECTION 11
	  			
	 GENERAL PROVISIONS
	  			
			
	 11.1
	 	 Employment
	  	 	6	  
			
	 11.2
	 	 Clawback
	  	 	7	  
			
	 11.3
	 	 Requirements of Law
	  	 	7	  
			
	 11.4
	 	 Governing Law
	  	 	7	  
			
	 11.5
	 	 Notices
	  	 	7	  
			
	 11.6
	 	 Section 409A of the Code; No Deferral of Compensation
	  	 	7	  
			
	 11.7
	 	 Other Restrictions
	  	 	7	  
			
	 11.8
	 	 Funding
	  	 	7	  
			
	 11.9
	 	 No Shareholders Rights
	  	 	8	  
			
	 11.10
	 	 Titles and Headings
	  	 	8	  
			
	 11.11
	 	 Severability
	  	 	8	  
		
	 GLOSSARY
	  	 	i	  

  
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 GLOBAL WATER RESOURCES, INC. 

STOCK APPRECIATION RIGHTS PLAN 

SECTION 1 

PURPOSE, EFFECTIVE DATE, DURATION, GLOSSARY 

1.1     General Purpose. The name of this plan is the Global Water
Resources, Inc. Stock Appreciation Rights Plan (the “Plan”). The purposes of the Plan are to (a) enable the Company to attract and retain the types of Employees who will contribute to the long range success of the Company and GWRC;
(b) provide incentives that align the interests of Employees with those of the shareholders of the Company and GWRC; and (c) promote the success of the Company’s and GWRC’s business. 

1.2     Effective Date. The Plan shall be effective as of
January 1, 2013 (the “Effective Date”). 
 1.3     Duration of
Plan. The Plan shall remain in effect, subject to the Board’s right to amend or terminate the Plan pursuant to Section 8 (Amendment, Modification, and Termination), until all SARs issued under the Plan expire, terminate, are
exercised, or are paid in full in accordance with the provisions of the Plan and any Award Agreement. 

1.4     Glossary. Defined terms used in the Plan are identified by the
capitalization of the first letter of each word or the first letter of each substantive word in a phrase. The defined terms are set forth in the attached Glossary, which is incorporated into and made part of the Plan. Except where otherwise
indicated by the context, words in the masculine gender when used in this Plan document will include the feminine gender, the singular will include the plural, and the plural will include the singular. 

SECTION 2 

ELIGIBILITY AND PARTICIPATION 

2.1     Eligibility. Persons eligible to participate in the Plan
include all Employees. 
 2.2     Actual Participation.
The Board shall have the authority, in its sole discretion, to determine: (i) the Participants who are entitled to receive SARs under the Plan; (ii) the times when SARs shall be granted; (iii) the number of SARs; (iv) the
Exercise Price and the period(s) during which such SARs shall be exercisable (whether in whole or in part); (v) the restrictions applicable to the SARs; (vi) the form of each Award Agreement, which need not be the same for each
Participant; (vii) the other terms and provisions of any SAR, which need not be the same for each Participant; and (viii) the schedule for lapse of restrictions or limitations and accelerations or waivers thereof, based in each case on
such considerations as the Board deems appropriate. 
 SECTION 3 

STOCK APPRECIATION RIGHTS SUBJECT TO THE PLAN 

3.1     Number. SARs will be available for grant under the Plan up to
an equivalent of ten (10) percent of the common stock outstanding of the Company. 
 Approved March 23, 2015 

 3.2     Counting; Lapsed
SARs. The following rules shall apply for purposes of determining the total number of SARs available for grant under the Plan: 

(a)     The number of SARs available for grant shall be reduced by one SAR for each SAR granted
under the Plan. 
 (b)     If any SAR granted under the Plan expires, or lapses for any reason,
the number of SARs subject to such award shall again be SARs available for the grant under the Plan. 

(c)     The Board may adopt such other reasonable rules and procedures as it deems appropriate for
determining the number of SARs that are available for grant under the Plan. 
 3.3    
Adjustment in Capitalization. In the event of any change in the outstanding shares of Stock by reason of a Stock dividend or split, recapitalization, merger, consolidation, combination, exchange of shares, or other similar
corporate change, the Board shall make an adjustment to the SARs in its discretion. Notwithstanding anything in the Plan to the contrary, in the event of such transaction or event, the Board, in its sole discretion, may provide in substitution for
any or all outstanding SARs such alternative consideration (including cash) as it, in good faith, may determine to be equitable under the circumstances and may require in connection therewith the surrender of all SARs so replaced. Any adjustments
made pursuant to this Section 3.3 shall be made in a manner consistent with the requirements of Section 409A of the Code. 

SECTION 4 
 GRANT AND
EXERCISE OF STOCK APPRECIATION RIGHTS 
 4.1     Grant of SARs. The Board,
in its sole discretion, shall make a grant of SARs to an Employee. No individual shall have a right to be selected as a Participant, or, having been so selected, to be selected again as a Participant and neither the Company nor the Board is
obligated to treat Participants, employees, and other persons uniformly. Each SAR shall be evidenced by an Award Agreement that shall specify the provisions and restrictions applicable to such SAR as the Board, in its discretion, shall determine.
The Board shall maintain a SAR account for each Participant. The SAR account will be credited with any SARs granted to the Participant and charged to reflect the redemption, cancellation, or forfeiture of any SARs pursuant to this Plan. 

4.2     Exercisability of SARs. 

(a)     When to Exercise. Except as otherwise provided in the Plan or an Award
Agreement, the Participant (or in the case of exercise after the Participant’s death or incapacity, the Participant’s executor, administrator, heir or legatee, as the case may be) may exercise his or her vested SARs, in whole or in part,
at any time after vesting and until the Expiration Date or earlier termination pursuant to Section 5 (Termination of Employment; Change in Control) hereof, by following the procedures set forth in this Section 4.2. If partially
exercised, the Participant may exercise the remaining unexercised portion of the SARs at any time after vesting and until the Expiration Date or earlier termination pursuant to Section 5 (Termination of 

  
 2 

 
Employment; Change in Control) hereof. No SARs shall be exercisable after the Expiration Date. 

(b)     Election to Exercise. To exercise the SARs, the Participant (or in the case
of exercise after the Participant’s death or incapacity, the Participant’s executor, administrator, heir or legatee, as the case may be) must deliver a written notice (or notice through another previously approved method, which could
include a web-based or e-mail system) to the Chief Financial Officer of the Company, the Vice President of Accounting of the Company, the Director/Manager of Human Resources of the Company or any other representative designated by the Company from
time to time, which sets forth the number of SARs being exercised, together with any additional documents as the Company may require. Each such notice must satisfy whatever then-current procedures apply to the SARs and must contain such
representations as the Company requires. 
 (c)     Documentation of Right to
Exercise. If someone other than the Participant exercises the SARs, then such person must submit documentation reasonably acceptable to the Company verifying that such person has the legal right to exercise the SARs. 

(d)     Date of Exercise. The SARs shall be deemed to be exercised on the business
day that the Company receives a fully executed exercise notice. If the notice is received after business hours on such date, then the SARs shall be deemed to be exercised on the business date immediately following the business date such notice is
received by the Company. 
 4.3     Form and Timing of Payment. Upon
the exercise of all or a portion of the SARs, the Participant shall be entitled to a cash payment equal to the Appreciation Value of the SARs being exercised, less any amounts withheld pursuant to Section 9 (Tax Withholding). As provided
in this Section, the cash payment shall be made in full settlement of the participant’s rights as soon as administratively practicable on or after the date of exercise, but in no event later than the fifteenth day of the third month following
the month in which the date of exercise occurs; provided, however, that if, due to unforeseeable events, it is administratively impracticable to pay the Participant within the time period provided in this Section or if payment within the time period
provided in this Section would jeopardize the solvency of the Company in any way, then payment shall be made as soon as reasonably practicalbe in accordance with Treas. Reg. 1.401A-l(b)(4)(ii) (or any successor guidance). 

4.4     Vesting. Each SAR will vest and become exercisable in
accordance with the Award Agreement. Except as otherwise provided in the Award Agreement, the unvested SARs will not be exercisable on or after the Participant’s termination of employment. 

SECTION 5 

TERMINATION OF EMPLOYMENT; CHANGE IN CONTROL 

5.1     Termination of Employee’s Employment for Reasons Other than Cause. If
the Participant’s employment or service is terminated for any reason other than Cause, the Participant (or in the case of exercise after the Participant’s death or incapacity, the Participant’s executor, administrator, heir or legatee
as the case may be) may exercise the vested SARs (determined as of the Participant’s termination of employment or service), but only within such 

  
 3 

 
time period ending on the earlier of (a) the date three (3) months following the termination of the Participant’s employment or service or (b) the Expiration Date. All
unvested SARs will be forfeited. 
 5.2     Termination for Cause. If the
Participant’s employment or service is terminated for Cause, the SARs (whether vested or unvested) shall immediately terminate and cease to be exercisable. 

5.3     Termination following Change in Control of the Company. Except as otherwise
provided in a Participant’s Award Agreement, there is no acceleration of vesting if a Participant’s employment or service is terminated by the Company without Cause following a Change in Control of the Company. The Participant may exercise
the vested SARs, but only within such time period ending on the earlier of (a) the date three (3) months following the termination of the Participant’s employment or service or (b) the Expiration Date. All unvested SARs will be
forfeited. 
 (a)     Example. Assume SARs are granted on January 1, 2014 and
vest quarterly over four (4) years. If there is a Change in Control of the Company on January 1, 2015, as of the date of the Change in Control of the Company, 25% of the SARs were fully vested. If the Participant’s employment is
terminated without Cause on January 2, 2015, an additional 25% of the SARs will become vested as of the date the Participant’s employment is terminated. 

5.4     Change in Control of GWRC. Except as otherwise determined by the Board at the
time of a change in control of GWRC, a change in control of GWRC shall have no effect on the SARs. 

5.5     Discretion of the Board. Notwithstanding the above, in the
Award Agreement the Board may alter the vesting, exercise and payment provisions described in this Section 5 for all or any portion of the SARs granted under the Plan, provided that the Board will not take any action pursuant to this
Section 5.5 that will cause payment of any SAR to violate the provisions of Section 409A of the Code. 

5.6     Participant Consent Not Required. Nothing in this
Section 5 or any other provision of the Plan is intended to provide any Participant with any right to consent to or object to any transaction that might result in a Change in Control of the Company and each provision of the Plan shall be
interpreted in a manner consistent with this intent. Similarly, nothing in this Section 5 or any other provision of the Plan is intended to provide any Participant with any right to consent to or object to any action taken by the Board pursuant
to Section 5.5 (Discretion of the Board). 
 SECTION 6 

ADMINISTRATION 

6.1     Administration. The Board shall be responsible for the
administration of the Plan. The Board is authorized to: (i) interpret the Plan; (ii) prescribe, amend, and rescind rules and regulations relating to the Plan; (iii) provide for conditions and assurances deemed necessary or advisable
to protect the interests of the Company; and (iv) make all other determinations  

  
 4 

 
necessary or advisable for the administration of the Plan, but only to the extent not contrary to the express provisions of the Plan. The Board shall have the power and authority to make all
other determinations which may be necessary or advisable for the administration of the Plan. 

6.2     Delegation. As permitted by law and any established securities market on
which the Stock is traded, the Board may delegate any authority granted to it pursuant to the Plan. 

6.3     Decisions Binding. The Board’s interpretation of the Plan or any Award
Agreement and all decisions and determinations made by the Board with respect to the Plan and any SAR award are final, binding and conclusive on all parties. All authority of the Board with respect to SARs issued pursuant to the Plan shall continue
after the term of the Plan so long as any SAR remains outstanding. 
 6.4    
Claims. Any claim relating to a SAR granted under the Plan shall be submitted to the Board or its designee. The Board shall render a written decision and, if there is an adverse determination with respect to the claim, either in
whole or in part, the decision will set forth the basis for the determination. If the Board does not render a decision within one hundred and twenty (120) days, the claim shall be deemed denied. 

SECTION 7 

NON-TRANSFERABILITY 

7.1     General. The Board may, in its sole discretion, determine the right of a
Participant to transfer any SAR granted under Plan, provided that in no event may a SAR be transferred for value or consideration. Unless otherwise determined by the Board and except as provided in Section 7.2 (Beneficiaries), no SAR
granted under the Plan may be sold, transferred, pledged, assigned, or otherwise alienated or hypothecated, other than by will or by the laws of descent and distribution or pursuant to a domestic relations order (that would otherwise qualify as a
qualified domestic relations order as defined in the Code or Title I of ERISA but for the fact that the order pertains to a SAR) in favor of a spouse. 

7.2     Beneficiaries. Notwithstanding Section 7.1 (General), a
Participant may, in the manner determined by the Board, designate a beneficiary to exercise the rights of the Participant and to receive any distribution with respect to any SAR upon the Participant’s death or upon the Participant’s
Disability. A beneficiary, legal guardian, legal representative, or other person claiming any rights pursuant to the Plan is subject to all terms and conditions of the Plan and any Award Agreement applicable to the Participant, except to the extent
the Plan and Award Agreement otherwise provide, and to any additional restrictions deemed necessary or appropriate by the Board. If no beneficiary has been designated or survives the Participant, payment shall be made to the person entitled thereto
pursuant to the Participant’s will or the laws of descent and distribution. Subject to the foregoing, a beneficiary designation may be changed or revoked by a Participant at any time provided the change or revocation is provided to the Board.

 SECTION 8 

AMENDMENT, MODIFICATION, AND TERMINATION 

8.1     Amendment, Modification and Termination. The Board may at any
time, and from time to time, terminate, amend or modify the Plan. Notwithstanding the above, to the  

  
 5 

 
extent permitted by law, the Board may delegate to the Company’s Chief Executive Officer the authority to approve non-substantive amendments to the Plan. 

8.2     SARs Previously Granted. Except as provided in the next sentence, no
amendment, modification, or termination of the Plan or any SAR under the Plan shall in any manner adversely affect any SAR previously granted under the Plan without the consent of the holder thereof. The consent of the holder of a SAR is not needed
if the change: (i) is necessary or appropriate to conform the SAR to, or otherwise satisfy legal requirements (including without limitation the provisions of Section 409A of the Code); (ii) does not adversely affect in any material
way the rights of the Participant; or (iii) is made pursuant to an adjustment as provided in Section 3.3 (Adjustment in Capitalization). 

8.3     Successors and Assigns. The Company may assign any of its rights under this
Plan. This Plan will be binding upon and inure to the benefit of the successors and assigns of the Company. Subject to the restrictions on transfer set forth herein, this Plan will be binding upon the Participant and the Participant’s
beneficiaries, executors, administrators and the person(s) to whom the SARs may be transferred by will or the laws of descent or distribution. 

SECTION 9 
 TAX
WITHHOLDING 
 The Company shall have the power to withhold, or require a Participant to remit to the Company, the
minimum amount necessary to satisfy federal, state, and local withholding tax requirements on any SAR under the Plan. 
 SECTION 10

 INDEMNIFICATION 

To the extent permitted by law, the Company shall and does hereby indemnify and agree to hold harmless its employees, officers
and Directors against and from any loss, cost, liability, or expense that may be imposed upon or reasonably incurred by him in connection with or resulting from any claim, action, suit, or proceeding to which he may be a party or in which he may be
involved by reason of any action taken or failure to act under the Plan and against and from any and all amounts paid by him in settlement thereof, with the Company’s approval, or paid by him in satisfaction of any judgment in any such action,
suit, or proceeding against him, provided he shall give the Company an opportunity, at its own expense, to handle and defend the same before he undertakes to handle and defend it on his own behalf. The foregoing right of indemnification shall not be
exclusive of any other rights of indemnification to which such person may be entitled under the Company’s articles of incorporation, bylaws, resolution or agreement, as a matter of law, or otherwise, or any power that the Company may have to
indemnify him or hold him harmless. 
 SECTION 11 

GENERAL PROVISIONS 

11.1     Employment. Nothing in the Plan shall interfere with or limit
in any way the right of the Company to terminate any Participant’s employment or service at any time, nor confer upon any Participant any right to continue in the employ or service of the Company. 

  
 6 

 11.2     Clawback.
Notwithstanding any provision of the Plan to the contrary, in an Award Agreement the Board may include provisions calling for the recapture or clawback of all or any portion of a SAR to the extent necessary to comply with Company policy or
applicable law in effect on the date of the Award Agreement. The Board also may include other clawback provisions in the Award Agreement as it determines to be appropriate. By accepting a SAR, each Participant agrees to be bound by, and comply with,
the terms of any such recapture or clawback provisions and with any Company request or demand for recapture or clawback. 

11.3     Requirements of Law. The granting of SARs and the payment of
cash under the Plan shall be subject to all applicable laws, rules, and regulations, and to such approvals by any governmental agencies or national securities exchanges as may be required. 

11.4     Governing Law. The Plan and all agreements into which the
Company and any Participant enter pursuant to the Plan shall be construed in accordance with and governed by the laws of the State of Delaware.  

11.5     Notices. Any notice required to be delivered to the Company
under this Agreement shall be in writing and addressed to the Chief Financial Officer of the Company, the Vice President of Accounting of the Company, the Director/Manager of Human Resources of the Company, or any other representative designated by
the Company from time to time, at the Company’s principal corporate offices. Any notice required to be delivered to the Participant under this Plan shall be in writing and addressed to the Participant at the Participant’s address as shown
in the records of the Company. Either party may designate another address in writing (or by such other method approved by the Company) from time to time. 

11.6     Section 409A of the Code; No Deferral of Compensation.
Neither the Plan nor any Award Agreement is intended to provide for the deferral of compensation within the meaning of Section 409A of the Code. The Company reserves the right to unilaterally amend or modify the Plan or any Award Agreement, to
the extent the Company considers it necessary or advisable, in its sole discretion, to comply with, or to ensure that the SARs granted hereunder are not subject to, Section 409A of the Code. Although the Plan has been designed to fit within an
exception to Section 409A, the Company specifically does not warrant either the availability of such exception or the compliance of the Plan with Section 409A. Each Participant is fully responsible for any and all taxes or other amounts
imposed by Section 409A or any other provisions of the Code. 
 11.7    
Other Restrictions. The Board shall impose such restrictions on any SARs under the Plan as it may deem advisable. 

11.8     Funding. The Company shall not be required to segregate any of
its assets to ensure the payment of any SAR under the Plan. Neither the Participant nor any other persons shall have any interest in any fund or in any specific asset or assets of the Company or any other entity by reason of any SAR, except to the
extent expressly provided hereunder. The interests of each Participant and former Participant hereunder are unsecured and shall be subject to the claims of the general creditors of the Company. The Plan is an unfunded plan and is not intended to be
either an employee pension or welfare benefit plan subject to ERISA.  

  
 7 

 11.9     No Shareholders Rights. No SAR
gives the Participant any of the rights of a shareholder of the Company. 
 11.10    
Titles and Headings. The titles and headings of the Sections in the Plan are for convenience of reference only and, in the event of any conflict, the text of the Plan, rather than such titles or headings, shall control.

 11.11     Severability. The invalidity or unenforceability
of any provision of the Plan or any Award Agreement shall not affect the validity or enforceability of any other provision of the Plan or any Award Agreement, and each provision of the Plan and each Award Agreement shall be severable and enforceable
to the extent permitted by law. 
  

							
		 		 	 GLOBAL WATER RESOURCES, INC.

				
	 March 23, 2015
	 		 	 By:
	  	  

	 Dated
	 		 		  	 Ron L. Fleming

		 		 		  	 Chief Executive Officer

  
 8 

 GLOSSARY 

(a)     “Affiliate” means the Company and any other corporation or trade or
business required to be aggregated with the Company which constitutes a single employer under Code Section 414(b) or Code Section 414(c) with the Company, except that in applying Code Section 1563(a)(1), (2) and (3), the language
“at least 50 percent” is used instead of “at least 80 percent.” 
 (b)    
“Appreciation Value” means the difference, if any, between the Fair Market Value of one share of Stock at the date of exercise over the Fair Market Value of one share of Stock on the Grant Date (or such higher amount determined by
the Board and specified in the Award Agreement). 
 (c)     “Award Agreement”
means any written agreement (including an award agreement), contract, program, acknowledgement, award letter, or other instrument or document, including any electronic agreement, evidencing the grant of a SAR. 

(d)     “Board” means the Board of Directors of the Company. 

(e)     “Cause” means: 

With respect to any Employee: 

(i)     the willful refusal to follow a lawful direction of any person to whom the Participant
reports, provided the direction is not materially inconsistent with the duties or responsibilities of the Participant’s job position; 

(ii)     the willful misconduct or disregard of one’s duties or of the interest or property
of the Company, GWRC or their Affiliates; 
 (iii)     any act of fraud against,
misappropriation from, or dishonesty to the Company, GWRC or their Affiliates; 
 (iv)     the
commission of a felony or a crime involving moral turpitude; or 
 (v)     a material breach of
any agreement with the Company or any Affiliate, provided that the nature of such breach shall be set forth with reasonable particularity in a written notice to the Participant who shall have ten (10) days following delivery of such notice to
cure such alleged breach, provided that such breach is, in the reasonable discretion of the Board, susceptible to a cure. 
 “Change
in Control of the Company” means a “change in the ownership or effective control of a corporation, or a “change in the ownership of a substantial portion of the assets of a corporation” within the meaning of Code
Section 409A (treating the Company as the relevant corporation) provided, however, that for purposes of determining a “change in the effective control,” “50 percent” shall be used instead of “30 percent” and for
purposes of determining a “substantial portion of the assets of the corporation,” “85 percent” shall be used instead of “40  

  
 i 

 
percent.” Notwithstanding the foregoing, in the event of either (i) a merger, consolidation, reorganization, share exchange or other transaction as to which the holders of the capital
stock of GWRC or the Company, as the case may be, before the transaction continue after the transaction to hold, directly or indirectly through a holding company or otherwise, shares of capital stock of GWRC or the Company (or other surviving
company), as the case may be, representing more than fifty percent (50%) of the value or ordinary voting power to elect directors of the capital stock of GWRC or the Company (or other surviving company), as the case may be, or (ii) any
increase in ownership of the Company by GWRC, such transaction(s) shall not constitute a Change in Control. 

(f)     “Code” means the Internal Revenue Code of 1986, as amended. All references to
the Code shall be interpreted to include a reference to any applicable regulations, rulings or other official guidance promulgated pursuant to such section of the Code. 

(g)     “Company” means Global Water Resources, Inc., a Delaware corporation.

 (h)     “Director” means a member of the Board. 

(i)     “Disability” means the inability of a Participant to engage in any substantially
gainful activity by reason of any medically determinable physical or mental impairment that can be expected to result in death or which has lasted or can be expected to last for a continuous period of not less than twelve (12) months. The
permanence and degree of impairment shall be supported by medical evidence. Any determination of Disability pursuant to the Plan is not an admission by the Company or an Affiliate that a Participant is disabled under federal or state law. 

 (j)     “Employee” means an individual who is classified by the Company as a
common law employee (or who would be considered a common law employee if such person was not on an authorized leave of absence). Regardless of any subsequent determination by a court or a governmental agency that an individual should be treated as a
common law employee, an individual will be considered an Employee under the Plan only if such individual has been so classified by the Company for purposes of the Plan. Examples of individuals who will not be considered to be Employees of the
Company include: (i) consultants; (ii) leased employees as defined in Section 414(n) of the Code; (iii) individuals providing services to the Company pursuant to a contract with a third-party; (iv) independent contractors;
(v) employees of independent contractors; (vi) interns; and (vii) co-op employees. 

(k)     “ERISA” means the Employee Retirement Income Security Act of 1974, as amended.
All references to a section of ERISA shall be interpreted to include a reference to any applicable regulations, rulings or other official guidance promulgated pursuant to such section of ERISA. 

(l)     “Exercise Price” means the price specified in the Award Agreement, which price
shall not be less than the Fair Market Value of the Stock on the Grant Date. 
 (m)    
“Expiration Date” means the earlier of (i) the date set forth in the Award Agreement or (ii) ten (10) years from the Grant Date. 

  
 ii 

 (n)     “Fair Market Value” means the
closing sale price of one share of Stock of GWRC as reported on the Toronto Stock Exchange (or other national securities exchange on which the Stock may then be traded) on the date such value is determined or, if Stock is not traded on such date, on
the first immediately preceding business day on which Stock was so traded.  
 (o)    
“Grant Date” means the date the Board approves the Stock Appreciation Right or a date in the future on which the Board determines the Stock Appreciation Right will become effective.  

(p)     “GWRC” means GWR Global Water Resources Corp., a British Columbia
corporation. 
 (q)     “Participant” means an Employee who has been granted a
Stock Appreciation Right. 
 (r)     “Plan” means this Global Water Resources,
Inc. Stock Appreciation Rights Plan as set forth in this document and as amended from time to time. 

(s)     “Stock” means the common stock of GWRC, no par value. 

(t)     “Stock Appreciation Right” or “SAR” means the right to receive,
upon exercise, an amount payable in cash equal to the Appreciation Value. 

  
 iiiEX-10.19

 Exhibit 10.19 

GLOBAL WATER RESOURCES, INC. 
 DEFERRED
PHANTOM STOCK UNIT PLAN 
 JANUARY 1, 2011 
  

ARTICLE 1 
 DEFINITIONS AND
INTERPRETATION 
  

	 1.1
	 Definitions 

 For the purposes
of this Plan, unless such word or term is otherwise defined herein or the context in which such word or term is used herein otherwise requires, the following words and terms with the initial letter or letters thereof capitalized shall have the
following meanings: 
  

	 	 (a)
	 “Affiliate” means any corporation that is an affiliate of the Corporation as defined in National Instrument 45-106 – Prospectus and
Registration Exemptions, as may be amended from time to time; 

  

	 	 (b)
	 “Board” means the Board of Directors of the Corporation or if established and duly authorized to act, a committee appointed for such purpose
by the Board of Directors of the Corporation; 

  

	 	 (c)
	 “Common Shares” means the common shares of the Issuer; 

 

	 	 (d)
	 “Corporation” means Global Water Resources, Inc., a corporation incorporated under the Act; 

 

	 	 (e)
	 “Deferred Phantom Stock Unit” means the right to receive a DSU Payment evidenced by way of book-keeping entry in the books of the
Corporation and administrated pursuant to this Plan, the value of which, on a particular date, shall be equal to the Market Value at that date; 

  

	 	 (f)
	 “Designated Affiliate” means an affiliate of the Corporation designated by the Board for purposes of this Plan from time to time;

  

	 	 (g)
	 “Director” means a member of the Board from time to time; 

 

	 	 (h)
	 “Director’s Remuneration” means all amounts payable to an Eligible Director by the Corporation in respect of the services provided to
the Corporation by the Eligible Director as a member of the Board or as a member of the board of directors of a Designated Affiliate in a Quarter, including: 

 

	 	 (i)
	 the quarterly base retainer fee for serving as a director; 

  
 - 2 - 

 

	 	 (ii)
	 the quarterly retainer fee for serving as a member of a board committee; and 

 

	 	 (iii)
	 the quarterly retainer fee for chairing the board or a board committee. 

but, for greater certainty, excluding amounts received by an Eligible Director as a reimbursement for expenses incurred in attending
meetings; 
  

	 	 (i)
	 “DSU Grant Letter” has the meaning ascribed thereto in Section 3.5; 

 

	 	 (j)
	 “DSU Issue Date” means the date in each Quarter, which is two business days following the publication by the Corporation of its earning
results for the previous Quarter (or the previous financial year in the case of the first Quarter), or such other date recommended by the Board and confirmed by the Board from time to time; 

 

	 	 (k)
	 “DSU Payment” means a cash payment by the Corporation to a Participant equal to the number of Deferred Phantom Stock Units held by the
Participant on the Separation Date multiplied by the Market Value applicable to the Redemption Date; 

  

	 	 (l)
	 “Entitlement” has the meaning ascribed thereto in Section 3.2; 

 

	 	 (m)
	 “Eligible Director” means a person who is a Director or a member of the board of directors of any Designated Affiliate and who is a resident
of Canada for purposes of the Income Tax Act (Canada) and such person shall continue to be an Eligible Director for so long as such person continues to be a member of such boards of directors; 

 

	 	 (n)
	 “Issuer” means GWR Global Water Resources Corp.; 

 

	 	 (o)
	 “Market Value” means the greater of either: (a) the weighted average trading price of the Common Shares on the TSX for the five
(5) consecutive trading days immediately prior to the date as of which Market Value is determined. If the Common Shares are not trading on the TSX, then the Market Value shall be determined based on the trading price on such stock exchange or
over-the-counter market on which the Common Shares are listed and posted for trading as may be selected for such purpose by the Board. In the event that the Common Shares are not listed and posted for trading on any stock exchange or
over-the-counter market, the Market Value shall be the fair market value of such Common Shares as determined by the Board in its sole discretion; 

  

	 	 (p)
	 “Participant” for this Plan means each Eligible Director to whom Deferred Phantom Stock Units are granted hereunder; 

  
 - 3 - 

 

	 	 (q)
	 “Plan” means this deferred Stock Unit plan, as same may be amended from time to time; 

 

	 	 (r)
	 “Redemption Date” with respect to a Participant who had a Separation Date, means such date as the Corporation determines which shall be no
later than 60 days after the Separation Date unless the Participant has delivered to the Corporation a valid Redemption Notice as provided for in Section 3.3 in which case the Redemption Date shall be such date as is specified by the
Participant in the Redemption Notice as the day on which DSUs credited to a Participant’s account shall be redeemed provided in no case may the Redemption Date be prior to the Separation Date or later than the last day of the calendar year
commencing immediately after the Participant’s Separation Date; 

  

	 	 (s)
	 “Redemption Notice” means a written notice delivered to the Corporate Secretary of the Corporation, by a Participant specifying a Redemption
Date as provided for in Section 3.3; 

  

	 	 (t)
	 “Quarter” means a fiscal quarter of the Corporation, which, until changed by the Corporation, shall be the three-month period ending
March 31, June 30, September 30 or December 31 in any calendar year; 

  

	 	 (u)
	 “Separation Date” means the date that a Participant ceases to be an Eligible Director for any reason whatsoever, including death, of the
Eligible Director except that where an Eligible Director is also an employee of the Corporation or of a Designated Affiliate at the time they cease to be an Eligible Director then the Separation Date shall be such later date upon which the
Participant ceases to be both an Eligible Director and such an employee; and 

  

	 	 (v)
	 “TSX” means the Toronto Stock Exchange. 

  

	 1.2
	 Headings 

 The headings of all
articles, Sections, and paragraphs in this Plan are inserted for convenience of reference only and shall not affect the construction or interpretation of this Plan. 
  

	 1.3
	 Context, Construction 

 Whenever
the singular or masculine are used in this Plan, the same shall be construed as being the plural or feminine or neuter or vice versa where the context so requires. 
  

	 1.4
	 References to this Plan 

 The
words “hereto”, “herein”, “hereby”, “hereunder”, “hereof” and similar expressions mean or refer to this Plan as a whole and not to any particular article, Section, paragraph or other part hereof.

  
 - 4 - 

 

	 1.5
	 Canadian Funds 

 Unless
otherwise specifically provided, all references to dollar amounts in this Plan are references to lawful money of Canada. 
 ARTICLE 2 

PURPOSE AND ADMINISTRATION OF THE PLAN 
  

	 2.1
	 Purpose of this Plan 

 The
purpose of this Plan is to strengthen the alignment of interests between the Eligible Directors and the shareholders of the Corporation, including the Issuer and its shareholders, by linking a portion of annual director compensation to the future
value of the Common Shares. In addition, this Plan has been adopted for the purpose of advancing the interests of the Corporation and the Issuer through the motivation, attraction and retention of directors of the Corporation and the Designated
Affiliates of the Corporation. It is generally recognized that deferred stock unit plans aid in attracting, retaining and encouraging director commitment and performance due to the opportunity offered to them to receive compensation in line with the
value of an entity’s equity. 
  

	 2.2
	 Administration of this Plan 

This Plan shall be administered by the Board and the Board shall have full authority to administer this Plan including the authority to interpret and
construe any provision of this Plan and to adopt, amend and rescind such rules and regulations for administering this Plan as the Board may deem necessary in order to comply with the requirements of this Plan. All actions taken and all
interpretations and determinations made by the Board in good faith shall be final and conclusive and shall be binding on the Participants and the Corporation. No member of the Board shall be personally liable for any action taken or determination or
interpretation made in good faith in connection with this Plan and all members of the Board shall, in addition to their rights as directors of the Corporation, be fully protected, indemnified and held harmless by the Corporation with respect to any
such action taken or determination or interpretation made in good faith. The appropriate officers of the Corporation are hereby authorized and empowered to do all things and execute and deliver all instruments, undertakings and applications and
writings as they, in their absolute discretion, consider necessary for the implementation of this Plan and of the rules and regulations established for administering this Plan. All costs incurred in connection with this Plan shall be for the account
of the Corporation. 
  

	 2.3
	 Record Keeping 

 The Corporation
shall maintain a register in which shall be recorded: 
  

	 	 (a)
	 the name and address of each Participant in this Plan; 

  

	 	 (b)
	 the number of Deferred Phantom Stock Units granted to each Participant under this Plan; and 

  
 - 5 - 

 

	 	 (c)
	 the date and price at which Deferred Phantom Stock Units were granted. 

ARTICLE 3 
 DEFERRED PHANTOM STOCK UNIT
AWARDS 
  

	 3.1
	 Plan 

 This Plan is hereby
established for Eligible Directors. 
  

	 3.2
	 Grant Participants 

 The
Board shall grant and issue to each Eligible Director on each DSU Issue Date, that number of Deferred Phantom Stock Units having a value equal to 50% of the Director’s Remuneration payable to such Eligible Director for the current Quarter (the
“Entitlement”). More specifically, the number of Deferred Phantom Stock Units to be granted to an Eligible Director will be determined by dividing the Entitlement by the closing price for a Common Share on the TSX on the business
day immediately preceding the DSU Issue Date.  
  

	 3.3
	 Redemption Notice 

 Within 30
days of the Separation Date, a Participant may deliver to the Corporation a Redemption Notice specifying a Redemption Date. 
  

	 3.4
	 Redemption 

 Each Deferred
Phantom Stock Unit held by a Participant who ceases to be an Eligible Director shall be redeemed by the Corporation on the relevant Redemption Date for a DSU Payment to be made to the Participant on the Participant’s Redemption Date without any
further action on the part of the holder of the Deferred Phantom Stock Unit in accordance with this Article Three. 
  

	 3.5
	 Deferred Phantom Stock Unit Grant Letter 

Each grant of Deferred Phantom Stock Units under this Plan shall be evidenced by a letter issued to the Participant by the Corporation
(“DSU Grant Letter”). Such Deferred Phantom Stock Units shall be subject to all applicable terms and conditions of this Plan and may be subject to any other terms and conditions which are not inconsistent with this Plan and which
the Board deems appropriate for inclusion in a DSU Grant Letter. The provisions of the various DSU Grant Letters entered into under this Plan need not be identical, and may vary from Quarter to Quarter and from Participant to Participant.

  

	 3.6
	 Dividends 

 In the event that a
dividend (other than stock dividend) is declared and paid by the Issuer on Common Shares, a Participant will be credited with additional Deferred Phantom Stock Units. The number of such additional Deferred Phantom Stock Units will be calculated by
dividing the total amount of the dividends that would have been paid to the Participant if the Deferred Phantom Stock Units in the Participant’s account 

  
 - 6 - 

 

 on the dividend record date had been outstanding Common Shares (and the Participant held no other Common
Shares), by the Market Value as determined on the date on which the dividends were paid on the Common Shares. 
  

	 3.7
	 Term of this Plan 

 This Plan,
as set forth herein, shall be deemed to become effective as of January 1, 2011. This Plan shall remain in effect until it is terminated by the Board. Upon termination of this Plan, the Corporation shall redeem all remaining Deferred Phantom
Stock Units under Section 3.3 above, as at the applicable Separation Date for each of the remaining Participants. 
 ARTICLE 4 

WITHHOLDING TAXES 
  

	 4.1
	 Withholding Taxes 

 The
Corporation or any Designated Affiliate of the Corporation will withhold any taxes or source deductions which the Corporation or any Designated Affiliate of the Corporation is required by any law or regulation of any governmental authority
whatsoever to withhold in connection with any payment made under this Plan. 
 ARTICLE 5 

GENERAL 
  

	 5.1
	 Amendment of Plan 

 The Board
may from time to time in the absolute discretion of the Board amend, modify and change the provisions of this Plan, provided that any amendment, modification or change to the provisions of this Plan which would: 

 

	 	 (a)
	 materially increase the benefits under this Plan; 

  

	 	 (b)
	 materially modify the requirements as to eligibility for participation in this Plan; or 

 

	 	 (c)
	 terminate this Plan. 

 shall only be
effective upon such amendment, modification or change being approved by the Board, and, if required, by the TSX and any other regulatory authorities having jurisdiction over the Corporation and provided any such amendment shall be effective only if
this Plan will continue to meet the requirements of paragraph 6801(d) of the regulations to the Income Tax Act (Canada) or any successor to such provision. 

The Board may amend or discontinue this Plan at any time in its sole discretion, provided that such amendment or discontinuance may not in any manner
adversely 

  
 - 7 - 

 

 affect the Participant’s rights under any Deferred Phantom Stock Unit granted under this Plan 

 

	 5.2
	 Non-Assignable 

 Except as
otherwise may be expressly provided for under this Plan or pursuant to a will or by the laws of intestacy, no Deferred Stock Unit and no other right or interest of a Participant is assignable or transferable, and any such assignment or transfer in
violation of this Plan shall be null and void. 
  

	 5.3
	 Rights as a Shareholder and Director 

No holder of any Deferred Phantom Stock Units shall have any rights as a shareholder of the Corporation or the Issuer at any time. Nothing in this Plan
shall confer on any Eligible Director the right to continue as a Director of the Corporation or as a director of any Designated Affiliate or interfere with right to remove such director. 

 

	 5.4
	 Adjustments 

 In the event there
is any change in the Common Shares, whether by reason of a stock dividend, stock split, reverse stock split, consolidation, subdivision, reclassification or otherwise, an appropriate proportionate adjustment shall be made by the Board with respect
to the number of Deferred Phantom Stock Units then outstanding under this Plan as the Board, in its sole discretion, may determine to prevent dilution or enlargement of rights. 

All such adjustments, as determined by the Board, shall be conclusive, final and binding for all purposes of this Plan. 

 

	 5.5
	 No Representation or Warranty 

The Corporation makes no representation or warranty as to the future value of any rights of Deferred Phantom Stock Units issued in accordance with the
provisions of this Plan. No amount will be paid to, or in respect of, an Eligible Director under this Plan or pursuant to any other arrangement, and no additional Deferred Phantom Stock Units will be granted to such Eligible Director to compensate
for a downward fluctuation in the price of the Common Shares, nor will any other form of benefit be conferred upon, or in respect of, an Eligible Director for such purpose. 
  

	 5.6
	 Compliance with Applicable Law 

If any provision of this Plan or any Deferred Phantom Stock Unit contravenes any law or any order, policy, by-law or regulation of any regulatory body
having jurisdiction, then such provision shall be deemed to be amended to the extent necessary to bring such provision into compliance therewith. 
  

	 5.7
	 Interpretation 

 This Plan shall
be governed by and construed in accordance with the laws of the Province of British Columbia. 

  
 - 8 - 

 

	 5.8
	 Unfunded Benefit 

 All DSU
Payments to be paid hereunder constitute unfunded obligations of the Corporation payable solely from its general assets and subject to the claims of its creditors. The Corporation has not established any trust or separate fund to provide for the
payment of benefits hereunder.

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