Document:

exv10w13

Exhibit 10.13

STOCK PLEDGE AGREEMENT

(PACER EQUITIES CO.)

	 	 	 
	DATE:

	 	December 9, 2005
	 
	 	 
	PARTIES:
	 	 
	 
	 	 
	Pledgor:

	 	Global Water Resources, Inc.
	 

	 	Deer Valley Financial Centre
	 

	 	22601 N. 19th Avenue, Suite 210
	 

	 	Phoenix, AZ 85027
	 

	 	Attn: Trevor Hill
	 
	 	 
	Secured Party:

	 	Wells Fargo Bank, National Association
	 

	 	100 W. Washington Street
	 

	 	MAC S4101-251
	 

	 	Phoenix, AZ 85003
	 

	 	Attn: Curtiss C. Smith, Vice President

 RECITALS:

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

          B. Pledgor owns 20,000 shares (the “Shares”), of the issued and outstanding capital
stock of
Pacer Equities Co. (the “Company”), represented by Certificate No. 3, which represents 100% of the
issued and outstanding capital stock of the Company.

          C. In order to induce Secured Party to make the Loan to Borrower, as additional
security for
the Loan, Pledgor desires to grant a security interest in, and, pledge, sign and transfer, all of
Pledgor’s right, title and interest in and to the Shares, to Secured Party.

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

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

 

 

blank. The books of the issuer of such Shares shall contain a legend to reflect such pledge of the
Shares hereunder.

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

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

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

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

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

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

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

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

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

          (i) other than Pledgor, there are no parties who assert any type of ownership interest
whatsoever in the Shares;

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

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

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

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

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

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

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

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

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

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

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

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any such sale or other disposition in accordance with the provision hereof, Secured Party shall be
authorized to deliver the Stock to or upon the order of Secured Party.

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

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

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

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

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

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

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

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

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

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

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

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

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

          (d) All parties hereto shall, from time to time, do and perform such other and further
acts and execute and deliver any and all such other and further instruments as may be required
or reasonably requested by any other party to establish, maintain and protect the respective
rights and remedies of such other party and to carry out and effect the intents and purposes of
this Agreement including, but not limited to, any further acts required by Arizona

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Administrative
Code R14-2-803 and other similar laws, rules, statutes and codes related to
Secured Party’s exercise of its remedies.

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

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

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

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

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

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

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

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

          17. Termination. This Agreement shall terminate upon full satisfaction of the
indebtedness hereby secured, and, upon such termination, Secured Party shall return to Pledgor any
of the Collateral held by Secured Party pursuant to this Agreement, and the original executed copy
of this Agreement which contains an irrevocable proxy.

          18. Acknowledgment. Pledgor acknowledges that Secured Party would not agree to make
the Loan to Pledgor without the execution, delivery and performance of this Agreement by

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Pledgor.
Pledgor further acknowledges that it has received good and sufficient consideration for
the execution, delivery and performance of this Agreement.

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

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

	 	 	 	 	 
	PLEDGOR: 	GLOBAL WATER RESOURCES, INC.

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

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

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IRREVOCABLE STOCK POWER

IRREVOCABLE STOCK POWER

Certificate No. 3

FOR VALUE RECEIVED, GLOBAL WATER RESOURCES, INC. (“Pledgor”) hereby assigns and transfers to WELLS
FARGO BANK, NATIONAL ASSOCIATION (“Secured Party”), pursuant to the Stock Pledge Agreement, dated
as of December 9, 2005 (the “Stock Pledge Agreement”), between the Pledgor and Secured Party,
20,000 shares of common stock of PACER EQUITIES CO. (the “Common Shares”), as security for the Loan
(as defined in the Pledge Agreement).

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

Dated: December 9, 2005

	 	 	 	 	 
	 	GLOBAL WATER RESOURCES, INC.

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

	 	 	 	 	 
	SIGNATURES GUARANTEED:

 	 	 
	/s/ Illegible
 	 	 
	 	 	 
	 	 	 
	 

 

 

ACKNOWLEDGMENT, ACCEPTANCE AND APPROVAL

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

               IN WITNESS WHEREOF, the undersigned have executed this instrument as of the 9th day of
December, 2005.

	 	 	 	 	 
	PACER EQUITIES CO.

 	 	 
	By:  	/s/ Trevor Hill
 	 	 
	 	Trevor Hill, Presidentexv10w14

Exhibit 10.14

COLLATERAL ASSIGNMENT OF MEMBER INTEREST 

(GLOBAL WATER MANAGEMENT, LLC)

          THIS COLLATERAL
ASSIGNMENT OF MEMBER INTEREST (the “Assignment”) is made December 9, 2005, by
and among LEVINE INVESTMENTS LIMITED PARTNERSHIP, TREVOR HILL, LEO COMMANDEUR, DANIEL CRACCHIOLO,
ANDREW COHN, GRAHAM SYMMONDS and CINDY LILES (individually and/or collectively as the context
requires, “Assignor”), and WELLS FARGO BANK, NATIONAL ASSOCIATION (“Assignee”) (Assignor and
Assignee, collectively, the “Parties’’).

RECITALS:

          A. Assignee has extended a line of credit (the “Loan”) to Global Water Management, LLC (the
“Company”), Global Water Resources, LLC and Global Water Resources, Inc. (each individually and
collectively, the “Borrower”), pursuant to that certain Amended and Restated Credit Agreement of
even date herewith (the “Credit Agreement”) with the Loan evidenced by an Amended and Restated
Revolving Line of Credit Note of even date herewith (the “Note”) in the original principal amount
of Thirty-Five Million Dollars ($35,000,000.00). Capitalized terms not otherwise defined herein
shall have the same meaning as set forth in the Credit Agreement.

          B. Assignor is the owner and holder of 100% of the Members’ interests (both “Common Units”
and “Preferred Units” as such italicized terms are defined in that certain First Amended and
Restated Operating Agreement dated October 20, 2005 (the “Operating Agreement”)) in and to the
Company (the “Membership Interests”).

          C. Assignor has agreed to secure the payment and performance of the Loan by assigning to
Assignee, as collateral security, the Membership Interests.

          D. Assignor acknowledges Assignee would not have made the Loan to Borrower but for the
execution of this Agreement by Assignor.

          NOW, THEREFORE, in consideration of the Loan, and for other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the Parties agreed as follows:

     1. Recitals. The foregoing recitals are approved and incorporated herein by reference
as agreements of the Parties.

     2. Assignment. For the purpose of securing repayment of the Loan, and other amounts
related thereto, including but not limited to interest, late charges, default interest, advances,
costs, service charges, and attorneys’ fees, and all extensions and renewals thereof and
modifications thereto, Assignor hereby assigns, transfers, and sets over to the Assignee for
collateral purposes only all of its rights, powers, privileges, proceeds, distributions, and
avails in the Membership Interests now or hereafter created or reserved.

     3. No Encumbrances/Certificates. Assignor represents and warrants to Assignee that
(a) its Membership Interests is free and clear of all liens, and is not subject to any prior

 

 

assignments and (b) its Membership Interests is not evidenced by any certificate or other
instrument.

     4. Disbursements. Until and unless there has occurred a monetary default under the
Loan, all monies payable to Assignor under the terms and conditions of the Operating Agreement
shall be collected, held and disbursed by the Assignor. In the event Borrower is in monetary
default under the Loan, Assignee may retain all such funds and apply same to the indebtedness
secured hereby in such order and manner as Assignee shall determine in its sole discretion.

     5. Assignee’s Right to Cure. In the event Assignor fails or neglects to make any
contributions due under the Operating Agreement or to pay any other charges which are then the
obligation of Assignor under the Operating Agreement, then Assignee shall have the right to
advance any amounts necessary to protect Assignor’s Membership Interests or meet any of the
obligations of Assignor under the Operating Agreement. Any amount so advanced shall be added to
the aforesaid indebtedness secured by this Assignment, and shall bear interest at a per annum rate
of interest five percent (5%) higher than the interest rate specified in the Note from the date of
any cash advancement by Assignee. Any payment made by Assignee in accordance with this paragraph 5
shall be prima facie evidence of the necessity therefor.

     6. Appear and Defend. Assignor agrees to appear in and defend any action or
proceeding purporting to affect the security hereof or the rights or powers of Assignee hereunder,
and to pay all costs and expenses of Assignee including the cost of evidence of title and
reasonable attorneys’ fees, in any such action or proceeding in which Assignee may appear or be
named, and in any suit brought by Assignee to foreclose this Assignment.

     7. Defaults and Remedies.

     a. Upon the occurrence
of an Event of Default and during the continuation of

such Event of Default, the Assignee may cause the transfer and register in its name or in
the name of its designee the whole or any part of the Membership Interests, exercise any
rights or powers with respect thereto, collect and receive all distributions made thereon,
sell in one or more sales after ten (10) days notice of the time and place of any public
sale or of the time after which a private sale is to take place (which notice Assignor
agrees is commercially reasonable), but without any previous notice or advertisement, the
whole or any part of the Membership Interests and to otherwise act with respect to the
Membership Interests as though the Assignee was the outright owner thereof. Assignor hereby
irrevocably constitute and appoint the Assignee as the attorney-in-fact of Assignor, with
full power of substitution, to sign any document or take any act in order to do so,
provided, however, that the Assignee shall not have any duty to exercise any such right or
to preserve the same and shall not be liable for any failure to do so or for any delay in
doing so. Any sale shall be made at a public or private sale at the Assignee’s place of
business, or elsewhere to be named in the notice of sale, either for cash or upon credit or
for future delivery at such price as the Assignee may deem fair, and the Assignee may be
the purchaser of the whole or any part of the Membership Interests so sold and hold the
same thereafter in its own right free from any claim of the Assignor. Each sale shall be
made to the highest bidder, but the Assignee reserves the right to reject any and all bids
at such sale that, in its absolute discretion, it shall deem inadequate. Any purchaser or
any assignee of such purchaser of the Membership Interests, at such purchaser’s election,
may become a substitute member. Demands of performance, except as otherwise herein
specifically provided for, notices of sale,

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advertisements and the presence of property at sale are hereby waived and any sale
hereunder may be conducted by an auctioneer or any officer or agent of the Assignee.

     b. Assignor agrees that following the occurrence and during the continuance of an Event
of Default, it will not at any time plead, claim or take the benefit of any appraisal,
valuation, stay, extension, moratorium or redemption law now or hereafter in force in order
to prevent or delay the enforcement of this Assignment, or the absolute sale of the whole or
any part of the Membership Interests or the possession thereof by any purchaser at any sale
hereunder, and Assignor waives the benefit of all such laws to the extent Assignor lawfully
may do so. If an Event of Default has occurred and is continuing, Assignor agrees that
Assignor will not interfere with any right, power and remedy of the Assignee provided for in
this Assignment or now or hereafter existing at law or in equity or by statute or otherwise,
or the exercise or beginning of the exercise by the Assignee of any one or more of such
rights, powers or remedies. No failure or delay on the part of the Assignee to exercise any
such right, power or remedy and no notice or demand which may be given to or made upon
Assignor by the Assignee with respect to any such remedies shall operate as a waiver
thereof, or limit or impair the Assignee’s right to take any action or to exercise any power
or remedy hereunder, without notice or demand, or prejudice its rights as against Assignor
in any respect.

     c. Assignor further agrees that a breach of any of the covenants contained in this
Section 7 will cause irreparable injury to the Assignee, that the Assignee has no adequate
remedy at law in respect of such breach and, as a consequence, agree that each and every
covenant contained in this Section 7 shall be specifically enforceable against Assignor and
Assignor hereby waives and agrees not to assert any defenses against an action for specific
performance of such covenants except for a defense that the Loan is not then due and
payable in accordance with the agreements and instruments governing and evidencing such
obligations.

     8. Irrevocable Assignment. This Assignment is irrevocable and shall remain effective
with respect to Assignor until written approval of such revocation shall be furnished to the
Assignor by Assignee.

     9. Uniform Commercial Code. In addition to the rights and remedies granted to
Assignee hereunder or to which the Assignee may be entitled at law, in equity or by statute, to
the extent that the interest conveyed hereby shall be deemed to be a security interest under the
Uniform Commercial Code, Assignor shall be deemed to be the “debtor” and Assignee the “secured
party,” and the security interest conveyed hereby shall be foreclosed pursuant to the terms,
conditions, and provisions of the Uniform Commercial Code.

     10. No Further Encumbrance. Assignor herein covenants and agrees that its Membership
Interests shall not be further encumbered (other than taxes and assessments) and/or conveyed, in
any manner whatsoever, without Assignee’s express prior written consent.

     11. Assignor to Perform. Notwithstanding anything herein to the contrary, Assignee,
by accepting this Assignment, shall not, except as otherwise herein may be specifically provided,
be subject to any obligation, liability, or duty to perform any of the terms, covenants,
provisions, conditions, or agreements made by Assignor in the Operating Agreement, but all thereof
shall continue to rest upon, be kept and performed by Assignor as though this Assignment had not
been made. Assignor shall make all contributions and pay all costs, claims

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and expenses arising directly or indirectly out of Assignor’s Membership Interests and shall
indemnify and hold Assignee harmless therefrom.

     12. No Waiver or Discharge. Assignor shall not be discharged, and the security herein
shall not be waived, or anyway affected or impaired, and the priority of Assignee’s liens hereunder
shall in no way be affected or implied, by any extension of time, the making of additional advances
or notes, any renewal or extension of the Loan, any modification to the terms of the Loan, any
decrease or increase in the interest rate of the Loan, the taking of further security, releases of
a part or all of the property securing the Loan, extinguishment or release of this Assignment as to
all or any part of Assignee’s Membership Interests, or any other act except a release or discharge
of this Assignment upon the full payment of the Loan secured by this Assignment.

     13. Release. Upon payment of the Loan in full and any further amounts due and owing
to the Assignee under the provisions hereof, this Assignment shall become null and void and have
no further force and effect.

     14. Construction. Wherever the context of this Assignment so requires, words used in
the masculine gender include the feminine and neuter; the singular number includes the plural and
plural the singular.

     15. General Provisions. Except to the extent inconsistent with the express language
of the foregoing provisions of this Assignment, the following provisions shall govern the
interpretation, application, construction and enforcement of this Assignment.

     a. Notices. Any notice to a Party under this Assignment shall be in writing
and shall be effective on the earlier of (i) the date when received by such Party, or (ii)
the date which is five (5) days after mailing (postage prepaid) by certified or registered
mail, return receipt requested, addressed to such Party c/o Borrower at Borrower’s address
for notices as referenced in the Credit Agreement, or to such other address as shall have
previously been specified in writing by such Party to all Parties.

     b. Severability. If any provision of this Assignment is declared void or
unenforceable, such provision shall be deemed severed from this Assignment, which shall
otherwise remain in full force and effect.

     c. Additional Acts and Documents. Each Party agrees to do all such
things and take all such actions, and to make, execute and deliver such other documents and
instruments, as shall be reasonably requested to carry out the provisions, intent and
purpose of this Assignment including, but not limited to, any further acts required by
Arizona Administrative Code R14-2-803 and other similar laws, rules, statutes and codes
related to Assignee’s exercise of its remedies.

     d. Authority. Each Party represents and warrants to each other Party that this
Assignment has been duly authorized by all necessary action and that this Assignment
constitutes and will constitute a binding obligation of each such Party.

     e. Principal Residence/Place of Registration. Each Assignor represents and
warrants that if such Assignor is a person, Assignor’s principal residence is in the state
of Arizona and if such Assignor is a registered organization, Assignor is registered in
the State of Arizona.

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     f. Attorneys’ Fees. In the event suit is brought (or arbitration instituted) or
an attorney is required by any Party to this Assignment to enforce the terms of this
Assignment or to collect for the breach hereof or for the interpretation of any provision
herein in dispute, or in connection with any bankruptcy proceedings, the prevailing Party
shall be entitled to recover, in addition to any other remedy, reimbursement for reasonable
attorneys’ fees, court costs, costs of investigation and other related expenses incurred in
connection therewith.

     g. Successors and Assigns. This Assignment shall be binding upon and inure to
the benefit of the Parties, and their respective successors in interest and assigns, but in
no event shall any Party be relieved of its obligations hereunder without the express
written consent of each other Party.

     h. Counterparts. This Assignment may be executed in any number of
counterparts, all such counterparts shall be deemed to constitute one and the same
instrument, and each of said counterparts shall be deemed an original.

     i. Time. Time is of the essence of this Assignment and each and every
provision hereof. Any extension of time granted for the performance of any duty under this
Assignment shall not be considered an extension of time for the performance of any other
duty under this Assignment.

     j. Waiver. Failure of any Party to exercise any right or option arising out
of
a breach of this Assignment shall not be deemed a waiver of any right or option with
respect to any subsequent or different breach, or the continuance of any existing breach.

     k. Governing taw. This Assignment shall be deemed to be made under,
and shall be construed in accordance with and shall be governed by, the laws of the State
of Arizona.

     l. Exhibits. Any exhibit attached hereto shall be deemed to have been
incorporated herein by this reference, with the same force and effect as if fully set
forth in the body hereof.

          IN WITNESS WHEREOF, Assignor hereby sets its hand on the day and year first above written.

	 	 	 	 	 
	 	ASSIGNOR:

Levine Investments Limited Partnership,
 an
Arizona limited partnership

 	 
	 	By:  	/s/ William S. Levine
 	 
	 	 	William S. Levine, General Partner 	 
	 	 	 	 
	 
	 	 	 
	 	                                                /s/ Trevor Hill
 	 
	 	Trevor Hill 	 
	 	 	 

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

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ACKNOWLEDGMENT, ACCEPTANCE AND APPROVAL

               GLOBAL WATER MANAGEMENT, LLC (the “Company”), hereby acknowledges, accepts and approves the
assignment of Members’ interest in the Company and of all rights to receive distributions of cash
payable by the Company to the Members, and hereby agrees that, upon and following notice from
Assignee that an Event of Default has occurred, it shall pay directly to WELLS FARGO BANK NATIONAL
ASSOCIATION, as Assignee in the above and foregoing Collateral Assignment of Member Interest, any
and all sums due or payable to the Members or any of them until it shall receive notice from
Assignee either (i) to discontinue direct payments, or (ii) that all sums under the Note and the
Loan Documents shall be fully paid.

               IN WITNESS WHEREOF, the undersigned have executed this instrument as of the 9th day of
December, 2005.

	 	 	 	 	 
	GLOBAL WATER MANAGEMENT, LLC, 

a Delaware limited liability company

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

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