Document:

EX-10.10

 Exhibit 10.10 
  

 
  

			
	 WHEN RECORDED RETURN TO:
	  	OFFICIAL RECORDS OF
	 Global Water Resources, LLC
	  	MARICOPA COUNTY RECORDER
	 21410 N. 19th Avenue, Suite 201
	  	HELEN PURCELL
	 Phoenix, Arizona 85027
	  	2008-0061205 01/23/08 03:02 PM
		  	1 OF 1
		  	MARESA

 INFRASTRUCTURE COORDINATION AND FINANCE AGREEMENT 

THIS INFRASTRUCTURE COORDINATION AND FINANCE AGREEMENT (this “Agreement”) is entered into as of December 20,
2007 between Global Water Resources, LLC, a Delaware limited liability company “Coordinator”), and those entities listed on Schedule 1 attached hereto (“Current Owner”). 

RECITALS 

A.        Coordinator is engaged in the business of, among other things, acquiring and
consolidating water and wastewater utilities, coordinating the provision of water, wastewater and reclaimed water services and providing services or benefits to landowners and developers, such as: (i) providing coordination of construction
services for water and wastewater treatment facilities, and (ii) providing financing for the provision of infrastructure in advance of growth. Coordinator’s services to be provided under this Agreement shall be limited to the provisions
set forth herein. 
 B.        Coordinator is the owner of Global Water, Inc. which
owns the regulated subsidiary Hassayampa Utility Company (“HUC”). Global Water, Inc. also owns West Maricopa Combine, Inc. which owns the regulated subsidiary Water Utility of Greater Tonopah, Inc. (“WUGT”).
Coordinator provides equity for its subsidiaries’ operational and capital needs for construction and improvements. 

C.        WUGT and HUC are Arizona public service corporations. WUGT has filed an
application to expand its certificate of convenience and necessity (“CC&N”) from the Arizona 

 
Corporation Commission (“ACC”) under ACC Docket No. W-02450A-06-0626 to provide water services in a designated geographic area within the State of Arizona west of the Hassayampa
River, including service to the property (the “Land”) known as Belmont as described on attached Exhibit A. HUC has filed an application to expand its CC&N from the ACC under ACC Docket No. SW-20422A-06-0566 to provide wastewater
and reclaimed water services in a designated geographic area within the State of Arizona west of the Hassayampa River, including service to the Land as described on attached Exhibit A. The CC&N proceedings have been consolidated before the ACC
and are set for hearing on December 17, 2007. Through Coordinator, WUGT and HUC shall provide water, wastewater and reclaimed water plant and services to the Land (collectively “Utility Services”). 

D.        Current Owner is under contract with a third party to sell to said third
party a portion of the Land. Said third party is in the process of entitling the Land and, in connection therewith, Current Owner desires (i) to engage Coordinator to provide various services including but not limited to arranging and
coordinating for Landowner (as defined below) the provision of Utility Services by WUGT and HUC with respect to the Land pursuant to the terms and conditions hereinafter set forth, and (ii) to work with WUGT and HUC to include the Land within
the respective CC&Ns for WUGT and HUC. Coordinator shall coordinate and cause WUGT and HUC to provide Utility Services to the Land sufficient to meet and satisfy the development plans for the Land. The Land may be entitled in multiple phases and
the Land may be sold in multiple phases to entities for future development. Through Coordinator, Current Owner has requested Utility Services from WUGT and HUC and Coordinator, through WUGT and HUC, has agreed to provide such services. Coordinator
shall facilitate and arrange for WUGT and HUC to provide “will serve” letters as requested and shall provide promptly, upon 

  
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 request, notices of intent to serve as required by governmental agencies from WUGT and HUC in a
form consistent with Exhibit I or as otherwise reasonably required by any owner of any portion of the Land (collectively “Landowner”), subject, with respect to water, to the constraints set forth in section 9 below. The Parties
acknowledge that all Utility Services will be provided by WUGT and HUC, and that Coordinator itself does not provide Utility Services. 

E.        The parties acknowledge that the expansion of the CC&Ns may not be
finalized until such time as the appropriate Arizona Department of Water Resources (“ADWR”), Arizona Department of Environmental Quality (“ADEQ”), Maricopa Association of Governments (“MAG”) and
Maricopa County Environmental Services Department (“MCESD”) permits and approvals are in place. Coordinator shall cause WUGT and HUC to obtain and satisfy any and all regulatory and governmental approvals necessary for the provision
of water, wastewater and reclaimed water utility services to the Land in a timely fashion in accordance with the schedules and limitations set forth in this Agreement, with such permitting and approval costs to be borne solely by Coordinator, WUGT
and HUC. 
 AGREEMENT 

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the
parties hereto agree as follows: 
 1.        It is Coordinator’s intention in
this Agreement to coordinate the provision of integrated water, wastewater, and reclaimed water plant and services, and those related services, to the Land. Coordinator shall coordinate and arrange for the expeditious processing of such CC&N
extension applications by WUGT and HUC as necessary with the ACC to provide Utility Services to the Land. Under this Agreement, Coordinator shall guarantee, facilitate and arrange the provision of Utility Services to the Land through WUGT and HUC.
Coordinator shall 

  
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 covenant and guarantee to Current Owner and Landowner that WUGT and HUC has and will have
sufficient financial resources to provide Utility Services to the Land. Coordinator shall guarantee that HUC and WUGT will provide Utility Services to the Land. 

Coordinator shall consult and coordinate with Current Owner regarding such CC&N proceedings. To the best of
Coordinator’s actual knowledge, there are no laws, restrictions or other agreements which may prevent Coordinator from obtaining all the governmental authorizations described in this Agreement, including the CC&N extensions and approvals
from the ACC. Coordinator does not have an agreement with any third party (other than a financing agreement with its lenders) under which Coordinator or its successors in interest is or could become obligated to (i) sell HUC or WUGT or any
portion thereof to a third party, or (ii) grant, transfer, or dedicate any part of HUC’s or WUGT’s assets to a third party. 

Landowner’s obligations under this Agreement relating to wastewater service are contingent on HUC obtaining a valid final
order from the ACC extending HUC’s CC&N to include the Land and Coordinator’s continuing financial guarantees as set forth in this Agreement. Landowner’s obligations under this Agreement relating to water service are contingent on
WUGT obtaining a valid final order from the ACC extending WUGT’s CC&N to include the Land and Coordinator’s continuing financial guarantees as set forth in this Agreement. 

Under this Agreement, and irrespective of any regulatory treatment of this Agreement by the ACC, Coordinator shall at its own
cost and expense, guarantee that WUGT and HUC will secure all requisite permits and other approvals and causing the timely construction of any and all water, wastewater, and reclaimed water facilities, including, without limitation, plant,
production, treatment, storage, transmission, pumping, receiving and delivery facilities necessary 

  
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to provide Utility Services to the Land, as more particularly described below (the “Off-Site Facilities”), and the timely payment of the cost thereof, including, without
limitation, the cost of any and all engineering, design, construction, licensing, permitting, payment and financing. Coordinator, HUC and WUGT shall indemnify and hold harmless Current Owner and Landowner from any failure to do so, including,
without limitation, any liens or additional charges on the Land. The Off-Site Facilities include those water, reclaimed water, and wastewater facilities to be financed by Coordinator and constructed by its subsidiaries in accordance with this
Agreement, including any and all water, reclaimed water, and wastewater plant, production, treatment, transmission, storage, pumping, and delivery facilities constructed either off the Land, on the Land, or on Coordinator’s, WUGT’s or
HUC’s properties to or from (as the case may be) the mains and pipelines described below. 
 With respect to water
service, Coordinator shall provide the financing for and shall guarantee that WUGT will construct, design, operate, finance and pay for any and all water supply, storage, pumping, treatment and other facilities and any and all water transmission and
delivery pipes, mains and lines having a diameter of greater than 12 inches on the Land or off the Land, as necessary for the provision of water utility services to the Land and WUGT shall have the right to require a Landowner desiring service
therefrom to enter into an Extension Agreement (as defined below) to provide delivery lines therefrom having a diameter of 12 inches or less to the portion of the Land with respect to which the applicable Landowner desires service. With respect to
wastewater service, Coordinator shall provide the financing for and shall guarantee that HUC will construct, design, operate, finance and pay for any and all necessary wastewater treatment plant and facilities, lift stations, force mains and other
facilities and any and all wastewater collection and transmission pipes, mains and lines having a diameter of greater than 

  
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 12 inches on the Land or off the Land, as necessary for the provision of wastewater utility
services to the Land and HUC shall have the right to require a Landowner desiring to make a connection thereto to enter into an Extension Agreement to provide lines thereto having a diameter of 12 inches or less from the portion of the Land with
respect to which the applicable Landowner desires service. With respect to reclaimed water service, the obligations of Coordinator are set forth in section 8, below. Neither Current Owner nor any Landowner shall have any additional financial
responsibilities for Off-Site Facilities, including additional charges or hook-up fees intended to reimburse Coordinator, HUC and/or WUGT for Off-Site Facilities costs, except as set forth in this section 1 of the Agreement. In the event the ACC
requires hook-up fees, Coordinator shall, within thirty (30) days of demand, pay or reimburse to Landowner or Current Owner any such hook-up fees due or paid to WUGT or HUC. 

2.        To protect the long-term investment in the Land and to ensure that the Land
has access to essential utility services, Current Owner desires to engage Coordinator to provide various services, including arranging and coordinating the provision of Utility Services, and related services by WUGT and HUC with respect to the Land
pursuant to the terms and conditions hereinafter set forth. Such Utility Services to the Land will be sufficient to meet and satisfy the development plans for the Land subject, with respect to water, to the constraints set forth in section 9 below.
The Land may be entitled and sold in whole, in part, or in multiple phases for future development. Through Coordinator, Current Owner and Landowner have requested Utility Services from WUGT and HUC, and Coordinator has, subject to the terms of this
Agreement and as otherwise legally permitted, agreed to be obligated for the financing and construction of any and all Off-Site Facilities as set forth in this Agreement necessary to provide Utility Services to the Land and to guarantee the
provision of Utility Services to the Land in accordance with this Agreement. 

  
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 Landowner agrees to grant to WUGT and HUC all reasonably necessary easements for
the construction and installation and subsequent operation, maintenance and repair of the Utility Services as needed for the provision of Utility Services and agreed by the parties, with such obligation to cease with respect to portions of the Land
as development of same proceeds and such easement shall not interfere with the productive development of the Land. Landowner shall cause such easements to be conveyed to WUGT and HUC free of all monetary liens except for non-delinquent taxes. As
agreed by the parties, and subject to the foregoing, such easements shall be of adequate size, location and configuration so as to allow WUGT and HUC ready and all weather access to all facilities for maintenance and repairs and other activities
reasonably necessary to provide safe and reliable Utility Services. Each Landowner is not required to provide any easements or access to any locations outside of the portion of the Land owned by the applicable Landowner. Coordinator specifically
understands and agrees that there will be several low water crossings for Off-Site Facilities on the Land. In addition, if WUGT identifies sites on the Land that WUGT deems useful for WUGT for well sites or for providing water service to the Land,
Landowner, subject to the same constraints as for easements, shall cause such sites to be identified on the applicable subdivision plat and dedicated to WUGT in fee, free of all monetary liens except for non-delinquent taxes; provided that the site
location is not located within an area identified in any plan approved by WUGT as an area to be used for an entrance, entry monumentation or public roadway, or for one or more buildable lots or parcels. The parties acknowledge and agree that the
well siting report dated January 5, 2006 performed by Southwest Ground-water Consultants, Inc. concludes up to 34 (thirty-four) wells may be required to serve 

  
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the Land solely on groundwater and the wells would need to be located in the lower one-third portion of the Land. Coordinator agrees to cause all Off-Site Facilities, including, without
limitation, any and all well sites, wastewater and water treatment facilities and water campuses, to be buffered for both sound and visually, and landscaped in a manner reasonably acceptable to Current Owner. 

3.        The parties recognize and acknowledge that this Agreement is a financing and
coordinating agreement only. The fees contemplated in this Agreement represent an approximation of the carrying costs associated with interest and capitalized interest associated with the financing of infrastructure for the benefit of the owners of
the Land until such time as the rates from the provision of services within the areas to be served as contemplated by this Agreement generate sufficient revenue to carry the ongoing costs of this infrastructure. Nothing in this Agreement should be
construed as a payment of principal, or a contribution or advance in aid of construction to the utilities, and the payments will bear no repayment of any kind or nature in the future, unless otherwise agreed by the parties. Coordinator shall be
responsible for and assume the risk of any future regulatory treatment of this Agreement by the ACC, including (without limitation) the imposition of hook-up fees or other charges related to the extension of Utility Services to the Land, and shall
indemnify and hold harmless Current Owner and Landowners for, from and against the consequences of same. Without limiting the foregoing, Current Owner and Landowner shall not be liable for any additional costs in the event that the ACC treats any
payments under this Agreement as contributions or advances in aid of construction, or in the event the ACC imposes hook-up fees or other charges related to the Off-Site Facilities, and Coordinator shall be responsible for payment of same. 

  
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 4.        The parties recognize,
acknowledge and agree that Landowner shall convey to HUC, upon HUC’s request, by special warranty deed, as needed for the timely provision of wastewater service, but in no event before the Land has been included in HUC’s CC&N, the two
(2) sites identified as Parcel 1.26 (containing approximately 47.12 gross acres) and Parcel 4.11 (containing approximately 35.81 gross acres) on the Development Master Plan for the Land approved by Maricopa County in December, 2006, copies of
which Development Master Plan are available in the offices of the parties, for two (2) Water Reclamation Facilities (“WRF”), without charge and free and clear of all monetary liens and encumbrances, other than non-delinquent
taxes. The parties also recognize, acknowledge and agree that Landowner shall convey to WUGT, upon WUGT’s request, by special warranty deed, as needed for the timely provision of water service, but in no event before the Land has been included
in WUGT’s CC&N, one (1) five (5) acre site for one (1) water distribution center (“WDC”) (with an additional WDC to be located on Parcel 1.26 with a WRF as noted above) and one (1) twenty-five
(25) acre site for a surface water treatment plant (the “SWTP”) in the vicinity of the Central Arizona Project Canal. The parties recognize, acknowledge and agree that additional sites are included in the current master plan
for the development for locating water treatment and storage facilities (the “Additional Water Sites”). Such sites shall be located on sites as mutually agreed upon by the parties, and can often be located within the open space
required by County planning (but the building footprint cannot be located within a flood plain), and shall be conveyed to HUC or WUGT as same may be needed to ensure timely provision of Utility Services to the Land. The parties specifically
understand and agree that the deeds evidencing any and all conveyances contemplated by this Agreement shall provide that title to the property so conveyed shall revert to Landowner (and in the event reversion is applicable Coordinator guarantees
that HUC and/or 

  
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WUGT will convey same to Landowner) if the CC&N extensions are revoked by the ACC due to HUC, WUGT and/or Coordinator failing to comply with a condition imposed by the ACC. In the event HUC,
WUGT and/or Coordinator fail to satisfy, or it becomes more likely than not that they will not be able to satisfy, any material conditions imposed by the ACC in granting the extension of either utility’s CC&N, other regulatory requirements,
or any conditions or performance requirements set forth in this Agreement, all as determined in the reasonable discretion of Current Owner and only following not less than ninety (90) days prior written notice to Coordinator giving Coordinator
an opportunity to take reasonable efforts to meet the regulatory requirements, the land so deeded for the WRFs, WDCs, SWTP and Additional Water Sites shall revert to the grantor and HUC, WUGT and/or Coordinator, as applicable, and, in accordance
with the vesting requirement noted above, shall execute and deliver promptly a special warranty deed conveying such land in fee to its grantor, without charge and free and clear of all monetary liens and encumbrances, other than non-delinquent
taxes, within thirty (30) days of demand. In that event, Coordinator shall refund any and all payments in excess of $500,000, if any, made under this Agreement. In these events, Coordinator shall cause the execution of any and all additional
documents necessary to effectuate such reversion within ten (10) days of written request. 

5.        The parties recognize, acknowledge and agree that no agriculture wells or
irrigation grandfathered rights exist on the Land. 
 6.        At any time on or
after December 31, 2008, Current Owner may in its absolute discretion issue a notice to Coordinator to commence construction (the “Start Work Notice” or “SWN”). Upon issuance of such notice, Coordinator shall
commence promptly bidding for all required construction services. Coordinator shall facilitate the construction and achieve 

  
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substantial completion of Off-Site Facilities within fifteen (15) months from the date of the SWN sufficient to provide actual Utility Services to phase 1 of the Land in accordance with the
development and phasing plans for the Land. Current Owner acknowledges and agrees that nothing in this Agreement is intended to prohibit Coordinator, its successors or assigns or their respective subsidiaries or affiliates from investing in or
owning companies formed for purposes of providing any one or more of the utility services contemplated in this Agreement. Neither Current Owner nor Landowner shall be obligated to enter into any agreements with Coordinator, its successors or
assigns, or their respective subsidiaries or affiliates to accept any Utility Services without Current Owner’s or Landowner’s written approval of the applicable agreement, and subject to applicable regulatory approvals. 

7.        Coordinator shall arrange and obtain the services listed on Exhibit D hereto
for Landowner to be provided from WUGT and HUC, subject to obtaining the applicable regulatory approvals which Coordinator shall diligently pursue. Coordinator guarantees compliance by HUC and WUGT within the timeframes and service deadlines set
forth in this Agreement and attached Exhibit D. Any Landowner desiring the provision of Utility Services to any portion of the Land to be platted must enter into separate Water Facilities Extension and Wastewater Facilities Extension Agreements (the
“Extension Agreements”) with WUGT and HUC no later than the date on which such portion of the Land has received final plat approval from Maricopa County or the applicable approving body (“Plat Approval”). Unless
otherwise agreed by the parties, the Extension Agreements shall be in the forms attached hereto as Exhibits E and F, and, if required, shall be subject to the approval of the ACC. The Extension Agreements shall not contain any charges or fees for
the cost of any Off-Site Facilities or related facilities provided to or from the pipes, mains and lines described in section 1, above, including any administrative or 

  
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oversight charges. To the extent either WUGT or HUC requests that Landowner contribute or advance monies for Off-Site Facilities to provide Utility Services to the Land, Coordinator hereby
acknowledges and agrees that Coordinator shall pay for such facilities. Coordinator shall be responsible for payment of any and all such additional costs for Off-Site Facilities as requested by WUGT or HUC or as otherwise required. 

8.         Coordinator shall guarantee that HUC will construct, design, engineer,
finance and operate the necessary recycled water treatment plant to achieve and produce A+ Reclaimed Water as defined by applicable regulatory agencies (“Recycled Water”). Both parties acknowledge and agree that until A+ Reclaimed
Water is available for the Land, groundwater from wells constructed by WUGT on the Land may be utilized for water service. Both parties further acknowledge that certain Arizona laws or the regulatory requirements of ADWR prohibit the use of
groundwater for certain purposes. 
     (a)
        Coordinator shall guarantee that its subsidiaries will make Recycled Water to be available for purchase and use from HUC within the Land approximately equal to 90% of the amount of wastewater generated
within the Land. The parties specifically understand and agree that the applicable property owners association (“HOA”) shall be obligated to use recycled water in an amount commensurate with its demand. Any excess Recycled Water not
purchased by Landowner or HOA within any month belongs to HUC for reuse, recharge and/or discharge as provided in section 8(b) below. The rates charged for Recycled Water will be pursuant to the ACC approved tariffs issued to HUC. At the date of
this Agreement, the current tariff for Recycled Water is labeled as Effluent Sales and amounts to $400 per acre foot or $1.23 per 1,000 gallons. 

  
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     (b)        
Coordinator believes in maximizing the use of Recycled Water (or “Reuse”) to conserve groundwater and surface water. Coordinator believes it is more prudent to maximize Reuse prior to recharge, and to discharge Recycled Water only in the
event of emergencies or when the season is wet and Reuse and recharge are not options. Consequently, Coordinator shall cause HUC and/or WUGT to recharge any excess Recycled Water related to wastewater service to the Land as appropriate and as
determined by HUC and/or WUGT in consultation with Current Owner. Such recharge will occur through recharge wells or through retention basins, as mutually agreed by Current Owner and Coordinator, that will replenish and offset groundwater
withdrawals related to the provision of water utility service to the Land, to be sited by agreement of Current Owner and HUC as provided in section 4 of this Agreement. 

    (c)         Coordinator believes its subsidiaries should
incrementally progress and implement Reuse of Recycled Water in the following priorities 

        (i)         Filling
and refilling of reclaimed water storage retention structures for irrigation of turf and other exterior landscaping in parks, golf courses, common areas, school grounds (if acceptable to the pertinent school) and similar areas utilizing low pressure
delivery system to the end user’s Recycled Water meter, which is connected to a retention water storage facility (“Recycled Water Stage 1”). 

        (ii)        
Irrigation of commercial and industrial landscaping and similar exterior water uses, utilizing a pressurized delivery system delivering water directly to the end user’s Recycled Water meter (“Recycled Water Stage 2”). 

        (iii)        
Irrigation of residential landscaping and similar exterior water uses, utilizing a pressurized delivery system delivering water directly to the end user’s Recycled Water meter (“Recycled Water Stage 3”). 

  
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        (iv)         Dual
plumbing commercial and industrial buildings to utilize Recycled Water under a pressurized delivery system for flushing toilets and urinals (“Recycled Water Stage 4”). This Agreement does not include Recycled Water Stage 4. 

        (v)        
Installation of hose bibs for commercial, industrial and residential exterior use, utilizing a pressurized delivery system delivering water directly to the end user’s Recycled Water meter (“Recycled Water Stage 5”). This
Agreement does not include Recycled Water Stage 5. 

        (vi)         Dual
plumbing residential homes to utilize Recycled Water for flushing toilets, utilizing a pressurized delivery system delivering water directly to the end user’s Recycled Water meter (“Recycled Water Stage 6”). This Agreement does
not include Recycled Water Stage 6. 
     (d)         The
parties acknowledge and agree that the Land will utilize Recycled Water as described above as Recycled Water Stages 1 and 2 in such order of priority and to the maximum extent practicable. Recycled Water Stage 3 is governed by section 8(g) below.
WUGT and HUC are responsible, and Coordinator shall guarantee the quality and safety of all Recycled Water services provided, including delivery of Recycled Water to all end-users, and shall make all reasonable efforts to ensure that sufficient
Recycled Water is available in quantities sufficient to satisfy the demand for Recycled Water in such order of priority. 

    (e)         For Recycled Water Stage 1, Coordinator shall
guarantee that HUC will construct, design, operate, finance and pay for any and all necessary facilities for the storage and treatment of Recycled Water and any and all Recycled Water transmission and delivery pipes, mains and lines on the Land or
off the Land necessary for delivery of Recycled Water to the end 

  
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user’s reclaimed water retention structures. The Landowner or HOA shall be responsible for all Recycled Water transmission and delivery pipes, mains, lines and pump stations, necessary for
distribution of the Recycled Water from such reclaimed water retention structures to turf and landscaped areas and other exterior uses on the Land as determined by Landowner or HOA. 

    (f)         For Recycled Water Stage 2, Coordinator shall
guarantee that HUC will construct, design, operate, finance and pay for any and all necessary facilities for the storage and treatment of Recycled Water and a pressurized Recycled Water transmission and delivery system on the Land or off the Land,
as necessary for delivery of Recycled Water to each commercial and industrial lot (“Off-site Recycled Water Infrastructure”). Landowner or HOA is responsible for the purchase of Recycled Water meters and any distribution system and
related infrastructure on the commercial or industrial lot connecting each meter to the Off-site Recycled Water Infrastructure at the lot line. Once a meter is installed, Coordinator shall guarantee that HUC will be responsible for having adequate
quantities of water available in a pressurized line to the meter and the end user shall be charged for the use of such water flowing through the meter at the Recycled Water (Effluent Sales) tariff rate even if part or all of such water is not
Recycled Water. 
     (g)         For Recycled Water Stage 3,
Coordinator shall guarantee that HUC will construct, design, operate, finance and pay for any and all necessary facilities for the storage and treatment of Recycled Water and a pressurized Recycled Water transmission and delivery system on the Land
or off the Land as necessary for delivery of Recycled Water to the boundary of each residential subdivision within the Land. The developer of each residential subdivision within the Land shall construct pressurized delivery lines within the
subdivision to the lot line of each residential lot and a lateral to the place on the lot where a Recycled Water meter could be located 

  
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(with such lines and laterals being the “On-site Subdivision Recycled Water Improvements”). The cost of the On-site Subdivision Recycled Water Improvements shall be paid by
Coordinator or Coordinator shall guarantee that HUC will pay for such improvements for each subdivision in Villages 1, 2 and 3 in the Land as shown on the attached Exhibit L, and the cost of the On-site Subdivision Recycled Water Improvements with
respect to each subdivision in the other Villages in the Land shall be paid by the developer thereof but only to the extent such cost does not exceed $1,000 per lot, with any cost in excess of said $1,000 per lot to be paid by Coordinator or
Coordinator shall guarantee that HUC will pay for such improvements. No lot owner (or other person) shall be required to purchase a Recycled Water meter or to use Recycled Water on the lot. Once a recycled water meter is installed, Coordinator shall
guarantee that HUC will have adequate quantities of water available in a pressurized line to the meter and the end user shall be charged for the use of such water flowing through the meter at the Recycled Water (Effluent Sales) tariff rate even if
part or all of such water is not Recycled Water. Any cost borne other than by Coordinator and HUC shall be treated as part of the wastewater Extension Agreement, and shall be considered as an advance in aid of construction in accordance with the
terms thereof. 
     (h)         Subject to the availability
of sufficient Recycled Water to satisfy existing and projected demand for Recycled Water under Recycled Water Stages 1, 2 and 3, HUC may elect to provide Recycled Water service to any Landowner’s project (including any HOA) consistent with
Recycled Water Stages 4, 5 and 6. In such event, Coordinator shall guarantee that HUC will enter into agreements with the Landowner (including the HOA) that governs the provision of Recycled Water services to individual property owners, as may be
necessary or 

  
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appropriate. No Landowner or HOA, however, shall be obligated to accept such service or be required to enter into any such agreement. 

    (i)         Notwithstanding anything in this Agreement to the
contrary, Coordinator guarantees that WUGT and HUC will provide safe and reliable water and Recycled Water service on demand and tender of rates, in accordance with the requirements of the ACC and the then-current tariffs of WUGT and HUC approved by
the ACC. In the event sufficient quantities of Recycled Water are not available to satisfy a particular customer’s water use requirements, and consistent with Arizona law, Coordinator will guarantee that WUGT and HUC will ensure that water is
available. 
 9.         Assured Water Supply. 

    (a)         WUGT is currently in the process of completing an
application to obtain an assured water supply designation (“Designation”) from ADWR to serve WUGT’s service area. To demonstrate physical and continuous availability of water for the Designation, Current Owner agrees that WUGT may
pledge the groundwater determined to be physically available under Current Owner’s Analysis of Assured Water Supply, ADWR No. 28-400903.0000 dated October 3, 2003 in the amount of 20,000 acre feet (the “Issued Analysis”) and
any groundwater determined to be physically available under Current Owner’s supplemental application for Analysis for an Assured Water Supply not yet issued by ADWR (the “Supplemental Analysis”), together with all Recycled Water
generated from the use of water on the Land, on the terms and conditions stated in this section 9. WUGT’s pledge of the groundwater determined to be available under the Issued Analysis and the Supplemental Analysis shall be effective only upon
the issuance of the Designation. Current Owner acknowledges that WUGT may enroll in the 

  
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Central Arizona Groundwater Replenishment District (“CAGRD”) as a member service area in order to obtain the Designation. 

    (b)         Coordinator acknowledges that Current Owner
and/or Landowner intends to seek one or more certificates of assured water supply (“Certificates”) concurrent with or prior to WUGT’s Designation application. Coordinator and WUGT specifically acknowledge and agree that Current Owner
and/or any Landowner may (i) pursue Certificates and (ii) rely on the Issued Analysis and Supplemental Analysis as support for the Certificate application(s), until such time as WUGT has obtained a Designation. Current Owner and any
Landowner agree that they shall not file such application for a Certificate until August 1, 2008 and shall not accept issuance of a Certificate prior to March 31, 2009. During this period, Current Owner shall pursue final issuance of the
Supplemental Analysis and shall endeavor to obtain the maximum determination of physically available water under the Supplemental Analysis reasonably available under the constraints of the Lower Hassayampa Sub-Basin Hydrologic Study and ADWR’s
acceptance thereof. Current Owner may, at Current Owner’s discretion, appeal any final decision issued by ADWR regarding the Supplemental Analysis, but shall have no obligation to do so. 

    (c)         Upon notification from ADWR to WUGT and Current
Owner that ADWR is prepared to issue an acceptable order of designation to WUGT, all Landowner applicants shall execute and deliver to WUGT, on forms prepared by WUGT and acceptable to ADWR, written withdrawal of all of their pending applications
for Certificates, and Current Owner shall execute and deliver to WUGT, on forms prepared by WUGT and acceptable to ADWR, written pledge or transfer of that amount of groundwater determined to be physically available under the Issued Analysis or
Supplemental Analysis, up to an amount equal to (i) the 10-year build-out demand of 

  
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the Land as determined by Current Owner, less (ii) any Recycled Water, generated or to be generated from the use of water at the Land, that may have been pledged by WUGT to the Designation
in the application and tentatively approved by ADWR. Each withdrawal, pledge and transfer by Landowner or Current Owner shall be conditioned upon the issuance of the order of designation to WUGT. Coordinator guarantees that WUGT shall coordinate
with Current Owner and/or Landowner and ADWR to implement the transition from the analyses and pending certificate applications to the Designation. An order of designation will be considered acceptable if: (A) all of the Land is encompassed by
the order; (B) all of the land that is within the CC&N of WUGT, following any expansion of the CC&N pursuant to that application for expansion pending before the ACC on this date, is encompassed by the order; and (C) in the order,
ADWR determines that WUGT has proven sufficient supplies of water are available to satisfy the current, committed and projected water demands within the CC&N of WUGT for the ten-year period following the issuance of the order. Current Owner may,
at any time subsequent to the issuance of the Designation, pledge to WUGT any additional physical supplies of water proven to be available under the Issued Analysis or Supplemental Analysis. 

    (d)(i)         If the Designation is approved
(WUGT becomes a “Designated Provider”), WUGT will have a Designated Provider water portfolio from which it may issue Notices of Intent to Serve subdivisions within its CC&N, or upon which subdivisions within its CC&N may rely for
final plat approval. The parties acknowledge that some water within that portfolio may be reserved to the following developments, similar to the reservation of water under this Agreement: Hassayampa Ranch, Balterra, Sierra Negra Ranch and Desert
Whisper. The parties further acknowledge that some additional water supplies, pledged in the future to the water portfolio, may be reserved to 

  
 19 

 
those developments that independently prove the water supplies to be physically available, similar to the reservation of water under this Agreement. Notwithstanding such reservation, Coordinator
guarantees that WUGT shall provide an assured water supply for all subdivision plats within the Land in an amount not less than (a) the volume of groundwater determined to be physically available under the Issued Analysis or Supplemental
Analysis and pledged to WUGT pursuant to this section 9, plus (b) 90% of all wastewater generated from the use of water on the Land, less (c) the estimated water demand under any Certificates of Assured Water Supply obtained by Current
Owner or Landowner prior to WUGT becoming a Designated Provider (collectively, the “Assured Water Supply Volume”), plus (d) any additional volume of water that may be available for assured water supply purposes pursuant to section
9(e). Coordinator guarantees that WUGT will periodically pledge Recycled Water, generated from the use of water at the Land, to the Designation. 

    (ii)         For purposes of this Agreement, the initial
quantification of the volume of water necessary to demonstrate an assured water supply for each new subdivision plat on the Land shall be determined by ADWR (each, an “ADWR Estimated Demand”), and when the cumulative ADWR Estimated Demands
equals the Assured Water Supply Volume (as adjusted herein), except as provided in section 9(e), WUGT’s obligation to provide an assured water supply to the Land shall terminate. The parties acknowledge that ADWR may reduce the ADWR Estimated
Demand for subdivisions at the Land approved under the Designation and/or the estimated water demand under Certificates of Assured Water Supply obtained by Current Owner or Landowner prior to WUGT becoming a Designated Provider, based on actual
water usage at the Land or 

  
 20 

 
within the CC&N or for other reasons. Coordinator guarantees that WUGT will periodically increase the balance of the Assured Water Supply Volume to reflect such reductions made by ADWR in the
ADWR Estimated Demand for such subdivisions. Notwithstanding the foregoing, Current Owner and Landowner agree that, commencing as of January 1, 2018, the Assured Water Supply Volume shall not exceed the greater of (a) the calculation of
the Assured Water Supply Volume made under section 9(d)(i)(a) – (c), or (b) the entire estimated water demand of the Land at build out, as reasonably determined in good faith periodically by the parties, utilizing actual water demand
information from development at the Land and future water demand calculations accepted by ADWR and utilizing Current Owner’s plans for development of the balance of the Land. 

    (iii)         Within a reasonable period of time before the
Designation (or any successor or renewed Designation) is to expire or in the event the Designation (or any successor or renewed Designation) is revoked, Coordinator guarantees that WUGT will use good faith efforts to renew or reinstate the
Designation (or any successor or renewed Designation) (with Landowner to pledge, to the extent available, such additional volumes of water from the Initial Analysis and the Supplemental Analysis as is consistent with the demand assumed for the
undeveloped portion of the Land for the period of the renewal or reinstatement, less any Recycled Water, generated or to be generated from the use of water at the Land, either that may have been previously pledged by WUGT to the Designation and
approved by ADWR or that may have been pledged by WUGT to the Designation in the application and tentatively approved by ADWR and, in either case, the Recycled Water has not previously been committed to subdivisions at the Land). During

  
 21 

 
such time as a Designation does not exist, Coordinator shall guarantee that WUGT will use good faith efforts to restore to the Initial Analysis and the Supplemental Analysis the amount of
groundwater that had been pledged in securing the Designation in excess of the difference between (a) the ADWR Estimated Demand for that portion of the Land that has been developed, less (b) any Recycled Water, generated or to be generated
from the use of water at the Land, that may have been pledged by WUGT to the Designation and approved by ADWR. 

    (e)         Notwithstanding section 9(d)(i) or (ii), to the
extent that WUGT has a balance of available water within its Designated Provider water portfolio, either by acquisition of new water supplies or by conservation or substitution of water within its Designated Provider water portfolio or for whatever
reason, and, to the extent such water is not committed to a subdivision by the recording of a plat and is not reserved for the developments referenced in the second or third sentences of section 9(d)(i), Coordinator shall cause WUGT to make same
available to its customers for assured water supply purposes, including Current Owner and any Landowner that is ready to record a final plat for a subdivision within the CC&N, on a first come, first served basis. Coordinator agrees to notify
Current Owner and any Landowner of Coordinator’s intention to issue a Notice of Intent to Serve any other lands within the CC&N with such additional water five (5) business days before issuing such Notice of Intent, but such notice
shall not constitute any right of first refusal. 

    (f)         Coordinator guarantees that WUGT will reasonably
cooperate in the Certificate application process with Current Owner and/or Landowner. To demonstrate consistency with the management goal, Current Owner or Landowner may be required to enroll the subdivisions as member lands within CAGRD as part of
the Certificate application process. 

  
 22 

     (g)         The
applicable Landowner is responsible for the payment of the following fees due to CAGRD: (i) enrollment fees associated with a Certificate where the subdivision is enrolled as members lands in the CAGRD, and (ii) all activation fees charged
by CAGRD prior to obtaining an approved public report from Arizona Department of Real Estate (such activation fees being due whether the subdivision is enrolled as member lands in the CAGRD or is within the member service area of WUGT).
Coordinator guarantees that WUGT shall be responsible for any enrollment fee required for WUGT to obtain a Member Service Area Agreement from CAGRD and any fees associated with the application for Designation, other than costs for Current
Owner’s Issued Analysis, Supplemental Analysis or participation in the Hassayampa Sub-Basin Hydrologic Study and Computer Model. In no event shall Coordinator or WUGT be responsible for any activation fee, or any enrollment fee for member
lands. 
     (h)         Water rights must be provided by the
applicable Landowner to provide the quantity of water necessary to meet the needs of construction water and the following non-residential uses (unless supplied by Recycled Water): Turf-related facilities (as defined by ADWR in its applicable
Management Plan), bodies of water (as defined by A.R.S. § 45-131), and golf course uses (the “Alternative Water Rights”). Such Alternative Water Rights may include Type 2 rights, long-term or annual storage credits and/or surface
water rights and must be available until the Land is generating sufficient Recycled Water for those purposes. Upon request by Current Owner or Landowner, Coordinator shall cause WUGT to withdraw and serve water to Current Owner and/or Landowner
pursuant to such Alternative Water Rights. Such service shall be at the standard WUGT tariff rates, except for construction water, the provision of which shall be negotiated by parties. Alternatively, Current Owner and/or Landowner, at their option,
may withdraw and use water pursuant to such Alternative Water Rights to the full extent 

  
 23 

 
allowed by law, by use of their own water production and delivery infrastructure, and at their sole cost and expense. 

10.         In the event HUC, WUGT and/or Coordinator fail to satisfy and/or meet any
and/or all material CC&N conditions or other regulatory requirements for phase 1 of the development plan on or before December 31, 2008, any land conveyed to HUC, WUGT and/or Coordinator shall revert to the Landowner that conveyed the same
or its assignee as applicable and in accordance with the reversionary conditions described in section 4, and HUC, WUGT and/or Coordinator (as the case may be) shall convey promptly such site or land free of any liens or encumbrances (other than as
existed at the time of conveyance to Coordinator or a related entity) within thirty (30) days of request by Landowner. Coordinator shall execute any and all documents necessary to effectuate such reversion. At any time in the future, if any
land conveyed pursuant to this Agreement is not needed to provide Utility Services, Coordinator, WUGT and/or HUC will notify the Landowner that originally conveyed the land or its assignee and, if requested, reconvey the land free of any liens or
encumbrances (other than as existed at the time of conveyance to Coordinator, WUGT or HUC, as applicable). 

11.         Coordinator represents and warrants: (1) that Coordinator has full power
to carry out and perform the transactions and obligations as contemplated under this Agreement; (2) that Coordinator is not a party to any bankruptcy or similar proceeding, nor to the best of Coordinator’s knowledge are there any other
matters pending which would adversely affect Coordinator’s, HUC’s and/or WUGT’s ability to perform the services set forth in this Agreement; and (3) that Coordinator has the financial capacity and experience to oversee and cause
performance of any and all obligations as contemplated under this Agreement and Coordinator guarantees that Coordinator’s subsidiaries, HUC and WUGT, will have sufficient 

  
 24 

 
financial resources to provide the Utility Services described in this Agreement and as contemplated hereunder. 

12.         Payment Obligations. The applicable Landowner shall pay
Coordinator, as an acquisition, interest and financing fee and as full and final compensation to Coordinator in consideration for the services and performance of the covenants and agreements by Coordinator contained in this Agreement, the sum of
$5,000.00 per equivalent dwelling unit (“EDU”) for that portion of the Land (the “Developer Payment”) with respect to which Utility Services are desired, with any portion of this sum unpaid at the time (the “Final
Plat Payment Time”) of the earlier of (a) the sale of the applicable portion of the Land affected to a homebuilder after final plat approval but before final plat recordation or (b) final plat recordation for the portion of the Land
affected (or if not platted, the commencement of vertical development of the portion of the Land affected) to be adjusted upward based on a CPI factor based on increases in the Consumer Price Index – United States City Average – for All
Urban Consumers All Items published by the United States Department of Labor, Bureau of Labor Statistics 1982-1984=100 (“Index”), with the Index for the month the Land is included in the CC&N being treated as the base Index,
plus two percent (2%) (“CPI Factor”). Adjustment for the CPI Factor shall not apply with respect to the $500,000.00, $5,500,000 and $2,500,000 payments referred to in section 12(b) below as long as the SWN is given no later than
January 31, 2009. If the Index is discontinued or revised during the term of this Agreement, such other government index or computation with which it is replaced shall be utilized, and modified as necessary, to obtain substantially the same
result as would be obtained if the Index had not been so discontinued or revised. For example, if the Developer Payment was due in February 2011 and the most current available Index at the time of payment was 187.3 and the Index for January 2009 was
182.5, the balance of the Developer 

  
 25 

 Payment per EDU would be calculated as follows: $4,150 ($5,000 less the $50, $250 and $550 per
EDU if previously paid) x 187.3/182.5 x 1.02 = $4,344.33. The number of EDUs for purposes of the foregoing computation shall be calculated as follows: (i) each single family residential dwelling included in the plat approval shall constitute
1.0 EDU, (ii) each multi-family residential dwelling shall constitute 0.65 EDU, and (iii) each acre of commercial or industrial property included in the Plat approval shall constitute 4.8 EDUs (excluding property not used for retail,
office or industrial purposes such as parks, golf courses and the like). The CPI Factor is only applicable to that particular unpaid portion of the $5,000 per EDU base fee. Further, the parties understand and agree that a complaint has been filed
against Coordinator with the ACC under Docket Nos. W-01445A-06-0200, SW-20445A-06-0200, W-20446A-06-0200, W-03567A-06-2000 and SW-03575A-06-0200 alleging that certain Infrastructure, Coordination and Finance Agreements executed by Coordinator are
invalid by Arizona law. In the event that the ACC determines that Coordinator’s Infrastructure, Coordination and Finance Agreements are invalid or against the law, the Parties hereby agree to amend this Agreement to conform to any such decision
issued by the ACC and in doing so the parties understand and agree that such revisions shall not materially alter the financial or other obligations of Current Owner and/or Landowner under this Agreement. Coordinator shall assume the risk of any
adverse regulatory treatment of this Agreement by the ACC, and shall be responsible for any additional financial obligations resulting from actions by the ACC. The Patties expressly understand and agree that the Developer Payment obligations under
this section are the only payments Coordinator, WUGT and HUC will receive from Current Owner and/or any Landowner for Off-Site Facilities necessary to provide Utility Service to the Land. 

  
 26 

     (a)        
Contemporaneously with the execution of this Agreement, the Agreement may be recorded with the Maricopa County Recorder. Coordinator specifically acknowledges and agrees that this Agreement shall be released automatically against any and all
portions of the Land for which the Developer Payment has been made in full by the respective Landowner under this Agreement. Upon satisfaction of such payment obligations, Coordinator acknowledges that this provision shall operate as a full and
valid release of this Agreement as recorded against such parcels of Land without the need for any further documentation. Upon request by Landowner, however, Coordinator shall execute and provide a separate release agreement in a form acceptable to
Landowner. 
     (b)         An initial fee of $500,000 is due
for master planning and permitting for the Land. This is based on $50 per EDU for the first 10,000 residential EDUs of the Land and shall be applied on a unit by unit basis against the base year $5,000 per EDU due with respect to the first 10,000
residential EDUs of the Land. Current Owner prepaid $75,000 prior to the MAG 208 filing. Upon execution of this Agreement, Current Owner or a third party will pay the balance due of $425,000. 

    (c)         Upon issuance of the SWN to Coordinator, a
description of which is set forth at Exhibit C attached hereto, an additional $5,500,000 is due. This is based on $550.00 per EDU for the first 10,000 residential EDUs of the Land and shall be applied on a unit by unit basis against the base year
$5,000 per EDU due with respect to the first 10,000 residential EDUs of the Land. Coordinator specifically agrees that any and all regulatory, governmental or other approvals will be obtained in sufficient time to allow for issuance of a SWN on or
before December 31, 2008. Coordinator further agrees to cause HUC and WUGT to provide actual Utility Services to phase 1, as generally depicted on Exhibit M attached hereto, of the Land on or 

  
 27 

 before March 31, 2010, in accordance with the development plans for the Land. The SWN shall
be issued at Current Owner’s sole discretion at any time on or after December 31, 2008. Coordinator represents and guarantees that WUGT and HUC have and shall continue to have sufficient financial resources to achieve substantial
completion of the WTP and WRF, including any and all water, reclaimed water, and wastewater treatment plant, delivery facilities and lines necessary for Utility Services to the Land within fifteen (15) months of the issuance of the SWN. 

    (d)         In addition, $250 per EDU is payable for the
first 10,000 single family residential EDUs, with such payment to be made within five (5) business days after the first final plat is approved for any portion of the Land and credited and offset against the balance of the $5,000 per EDU payment
due for such lots on a lot-by-lot basis. At the Final Plat Payment Time for the first 10,000 residential EDUs, the balance of the $5,000 per EDU (plus the adjustment taking into account the CPI Factor) will be due for the number of single family
residential EDUs indicated on the final plat for the portion of the Land. After the first 10,000 single family residential EDUs, the Developer Payment shall be made at the Final Plat Payment Time with respect to the relevant portion of the Land
designated for single family residential homes and at the time of the commencement of vertical development for multi-family dwellings and all other relevant commercial or industrial buildings on the portion of the Land. 

    (e)         Coordinator understands that Current Owner
intends to sell the Land to other parties who will be the ultimate builders/developers of the Land or whose successors will be the ultimate builders/developer of the Land. Coordinator understands that the balance of the Developer Payment with
respect to each lot shall not be due until the lot receives final plat approval. 

  
 28 

     (f)         For
commercial and industrial property excluding golf courses (exclusive of club houses), the $5,000 per EDU plus the CPI Factor base year price at 4.8 EDUs per acre is due upon the commencement of vertical development for each commercial or industrial
building and associated land for such building(s). 
  

	 	-	 An example of how this would calculate for a commercial or industrial building that includes 30 acres of land would be as follows:

  

	 	¡	 	 $5,000 as adjusted taking into account the CPI Factor x 30 acres x 4.8 EDUs/acre or $720,000 is due and payable upon the commencement of vertical
development for each commercial or industrial building and associated land for such building(s). 

    (g)         Guaranteed Minimum Payment. The guaranteed
minimum payment from the Landowner of Developer Payments per year shall be due no later than commencing twelve (12) months from when the WRF has reached substantial completion and becomes operational (“WRFSC&O”), and
remains payable annually until 2,050 EDUs have received final plat approval and the unpaid portion of the Developer Payments with respect to those 2,050 EDUs have been paid in full to Coordinator. The guaranteed minimum payment of the unpaid portion
of Developer Payments for the first 2,050 EDUs shall be payable in accordance with the following schedule: 
  

					
	    Number of EDUs    	  	Cumulative
    Number of EDUs    	  	
Unpaid Portion of Developer

Payment Due No Later Than

	 250
	  	250	  	12 months after WRFSC&O
	
350
	  	600	  	24 months after WRFSC&O
	 450
	  	1,050	  	36 months after WRFSC&O
	
500
	  	1,550	  	48 months after WRFSC&O
	 500
	  	2,050	  	60 months after WRFSC&O

  
 29 

 There shall be no guaranteed minimum payment due with respect to EDUs after the first 2,050 EDUs.
If any such payment is late or delinquent, Coordinator shall be entitled to interest at the rate of 12% per annum accruing from the date such payment was due, and outstanding payments must be satisfied in full prior to the next phase of
platting for the Land. 
 Coordinator acknowledges that the current Landowner intends to sell the land to other builders and
developers who will make and assume the obligations for the Developer Payment. To the extent Coordinator receives payments from such builders or developers for amounts already paid to Coordinator by Current Owner, Coordinator shall refund such
amounts to Current Owner. Finally, the guaranteed minimum payment shall be applied on a cumulative basis so that, to the extent payments in any year exceed the minimum payment for the year, such payments shall be credited against the guaranteed
minimum payment obligation in the next year. 
 13.        Security. Security
for the guaranteed minimum payment described in section 12(g) above shall be provided, at the time of the issuance of the SWN to Coordinator, in the form of (a) a letter of credit (the “Letter of Credit”) in form and substance
reasonably acceptable to Coordinator in the amount of $2,075,000 and (b) a title insurable, first position (exclusive of non-delinquent taxes) deed of trust (with said deed of trust or any substitute therefor as described below being referred
to as the “Deed of Trust”) in form and substance identical to Exhibit J attached hereto, encumbering six hundred forty (640) acres of the Land described on Exhibit K attached hereto, provided, however, as property subject to
the Deed of Trust is conveyed by Current Owner to another Landowner, Coordinator shall cause the then current Deed of Trust to be released of record upon the recordation in substitution therefor of a Deed of Trust in first position (exclusive of
non-delinquent taxes) encumbering the same number of acres, which property shall be adjacent to a portion or portions of the Land no longer owned by Current 

  
 30 

 Owner. The number of acres encumbered by the Deed of Trust shall be reduced (through releases
from the Deed of Trust of portions of the Land) on a pro rata basis as the guaranteed minimum payment set forth in section 12(g) above is paid; for example, when the guaranteed minimum payment has been made with respect to the first 820 EDUs, 256
acres shall be or have been released from the Deed of Trust so that the Deed of Trust encumbers only 384 acres. In addition, the Letter of Credit shall be reduced, on a pro rata basis (at the rate of 1/500th for each EDU with respect to which the
guaranteed minimum payment per EDU is made after the guaranteed minimum payment is made for the first 1,550 EDUs), to the extent the guaranteed minimum payment has been made for more than the first 1,550 EDUs. For example, once the guaranteed
minimum payment is made with respect to 1,750 EDUs (i.e., 200 EDUs after the guaranteed minimum payment is made with respect to the 1,550th EDU), the amount of the Letter of Credit shall be reduced by $830,000 to $1,245,000. The Deed of Trust
shall be fully released and the Letter of Credit shall be returned for cancellation at such time as the guaranteed minimum payment has been made with respect to 2,050 EDUs. 

14.        HUC and WUGT, from time to time may, at its own discretion, decide to
oversize certain water distribution mains and wastewater collection mains to service properties or planned developments not currently contemplated within the scope of this Land. Any and all cost of oversizing these lines will be at the sole cost of
HUC and/or WUGT, including any and all engineering or other costs incurred as a result of such oversizing. 

15.        No Partnership. Coordinator is acting as an independent contractor
pursuant to this Agreement. Nothing in this Agreement shall be interpreted or construed (i) to create an association, agency relationship, joint venture, or partnership among the parties or to impose any partnership obligation or liability upon
any party, or (ii) to prohibit or limit, subject to section 23 

  
 31 

 below, the ability of Coordinator to enter into similar or identical agreements with other
developers, even if the activities of such developers may be deemed to be in competition with the activities of Current Owner. 

16.        Binding Arbitration. Any controversy, dispute or claim (a
“Claim”) arising out of or relating in any way to this Agreement or any other agreement or instrument delivered in connection with this Agreement, or the transactions arising hereunder or thereunder that cannot be resolved by
negotiation (other than actions for specific performance or any other equitable remedy) or that are not subject to the jurisdiction of the ACC or another administrative agency shall be settled exclusively by a binding arbitration
(“Arbitration”), conducted, except as is otherwise provided below, by a single arbitrator (the “Arbitrator”) chosen as described below. The location of the Arbitration shall be Phoenix, Arizona. The arbitration
shall be expedited and shall be conducted in accordance with the following: 

    (a)        Initiation of Arbitration. The Arbitration
shall be initiated by either party filing with the American Arbitration Association (“AAA”), with a copy to the other party, of an Arbitration Demand. Such demand shall be sent by hand-delivery or certified mail, return receipt
requested. The Arbitration Demand must contain a list of the Claims upon which arbitration is requested, as well as a statement of the claimant’s basis for bringing the Claims. 

    (b)        Governing Procedures. The arbitration shall
be conducted in accordance with A.R.S. § 12-1501, et seq., the procedures set forth in this section 16 and the Commercial Arbitration Rules of the AAA. 

    (c)        Appointment of Arbitrator. The arbitration
shall proceed before a single Arbitrator chosen in accordance with the then applicable provisions of the AAA’s rules. 

  
 32 

    (d)        Qualifications of Arbitrator. The Arbitrator
shall be a neutral and impartial Arizona attorney, and knowledgeable in the areas of public utility service and/or real estate development. 

    (e)        Compensation. Subject to section 16(g),
below, each Party shall pay to the AAA the appropriate fees pertaining to the claim(s) asserted by the Party, and the Parties shall split equally any and all other costs of arbitration, including the Arbitrator’s fee. 

    (f)        Preliminary Hearing. Within fifteen
(15) days after the Arbitrator has been appointed, a preliminary hearing among the Arbitrator and counsel for the Parties shall be held for the purpose of developing a plan for the management of the arbitration, which shall then be memorialized
in an appropriate order issued by the Arbitrator. The matters which may be addressed include the following: (i) definition of issues; (ii) scope, timing and types of discovery, if any; (iii) schedule and place(s) of hearings;
(iv) setting of other timetables; (v) submission of motions and briefs; (vi) whether and to what extent discovery is appropriate; (vii) whether and to what extent expert testimony will be required, whether the Arbitrator should
engage one or more neutral experts, and whether, if this is done, engagement of experts by the Parties can be obviated or minimized; (viii) whether and to what extent the direct testimony of witnesses will be received by affidavit or written
witness statement; and (ix) any other matters which may promote the efficient, expeditious, and cost-effective conduct of the proceeding. Any procedures outlined in the preliminary hearing shall require the arbitration hearing to be conducted
within 90 days of the preliminary hearing date. 

    (g)        Final Award. The Arbitrator shall promptly
(but, in no event later than twenty (20) days following the conclusion of the proceedings or such longer period as the Parties mutually agree) determine the claims of the Parties and render a final award in writing. The

  
 33 

 Arbitrator may award the prevailing party in the proceeding all or a part of such party’s
reasonable attorneys’ fees and expert witness fees, taking into account the final result of arbitration and other relevant factors under Arizona law. The Arbitrator shall not award any punitive damages. The Arbitrator shall assess the costs of
the proceedings (including, without limitation, AAA filing fees and the fees of the Arbitrator) against the non-prevailing party. The Arbitrator’s final award shall be binding and enforceable against the Parties. 

17.        Insurance. Coordinator shall include Current Owner and each
Landowner (other than residential homeowners) as an “additional insured” in all forms of liability insurance obtained or maintained by Coordinator and its subsidiaries, including WUGT and HUC, and their contractors, applicable to the
construction, operation, installation and maintenance of water, wastewater and reclaimed water infrastructure financed by this Agreement or placed within the Land, WTP site, WDC sites, SWTP site, WRF sites or well sites included in this Agreement.
Coordinator shall defend, indemnify and hold harmless Current Owner, all Landowners and any and all of Current Owner’s and Landowners’ affiliates, subsidiaries, successors, and/or related entities, for, from and against any and all
liabilities, claims, damages, losses, costs, expenses (including, but not limited to, attorneys’ fees), injuries, causes of action, or judgments for bodily injury or death or damage to property to the extent occasioned, contributed to or caused
by Coordinator, HUC and/or WUGT, and/or their agents, employees, consultants, engineers, or contractors and which arise out of or are related to the performance of this Agreement by Coordinator, directly and/or through HUC and/or WUGT, or their
authorized agents, employees, consultants, engineers and/or contractors except for those arising from the negligence or willful misconduct of Current Owner, its agents, employees, consultants, engineers, and/or contractors. Coordinator’s duty
to indemnify and defend as set forth above shall extend to all construction, 

  
 34 

 operation and utility delivery activities undertaken by Coordinator, WUGT and HUC, and their
contractors, subcontractors, agents, and employees in the performance of or related to this Agreement. This Indemnity Clause extends to and includes all claims, just or unjust, based on a tort, strict liability, contract, lien, statute, stop notice,
rule, safety regulation, ordinance or other affiliated relief or liability, and whether the injury complained of arises from any death, personal injury, sickness, disease or property damage. (including loss of use), economic loss, patent
infringement, copyright infringement, or otherwise, even if such claim may have been caused in part by Current Owner and/or Landowner as set forth above. This indemnity clause shall apply solely to the extent that such claim, demand, liability
and/or expense is attributable to the actions or inaction of Coordinator, WUGT and HUC, and/or their contractors, subcontractors, consultants, engineers, agents and/or employees. 

Coordinator shall require HUC’s and/or WUGT’s contractors and/or subcontractors to carry and maintain, at
Coordinator’s sole cost and expense, during the duration of construction of the water, reclaimed water and wastewater facilities plus an additional two years, no less than the following coverage and limits of insurance: 

(i)        Worker’s Compensation and Employer’s
Liability: (a) Worker’s Compensation coverage as required by law; and (b) Employer’s Liability with limits of at least $1,000,000 per occurrence. 

(ii)        Business Automobile Liability for Bodily Injury and
Property Damage: $1,000,000 per occurrence, including coverage for all owned, non-owned and hired vehicles. 

(iii)        Commercial General Liability for Bodily Injury and
Property Damage: $3,000,000 general aggregate, $1,000,000 per occurrence. Unless otherwise 

  
 35 

 
agreed by the parties, the general liability policy shall include a broad form comprehensive liability endorsement that includes coverage for liability assumed under any oral or written contract
relating to this Agreement, and also including: (a) broad form property damage liability coverage; and (b) premises-operations coverage; and (c) independent contractor coverage (for liability may incur as a result of the operations,
acts or omissions of Coordinator’s contractors, subcontractors, suppliers, and/or their agents or employees). The commercial general liability insurance required pursuant to this Agreement shall (a) name Current Owner, Landowner(s) and/or
any other Current Owner entities designated by Current Owner as an additional insured; (b) apply severally to the parties; (c) cover Current Owner, Landowner(s) and affiliated entities as insureds in the same manner as if separate policies
have been issued to each of them; (d) include a waiver of any and all subrogation rights against Current Owner and affiliated entities; and (e) be primary insurance with any other valid and collectible insurance available to the aforesaid
additional insureds constituting excess insurance. 

(iv)        Professional Liability & Wrongful Acts,
of not less than $1,000,000 per occurrence from Coordinator’s, HUC’s and WUGT’s Project engineer. 

(v)        Other Insurance. An umbrella or other policy as
determined appropriate by Coordinator in its reasonable discretion. The above coverage amounts may be achieved through the use of one or more umbrella policies. At the time of this Agreement, Coordinator holds an umbrella liability insurance policy
of $50,000,000. Coordinator shall maintain such policy or an equivalent policy until such time as Coordinator and or its subsidiaries have completed their obligations hereunder. 

  
 36 

 The policies required pursuant to this Agreement shall not be revised, canceled or reduced until
a replacement policy is in effect that provides the coverages required in this Agreement unless mutually agreed with Current Owner. The policies required pursuant to this Agreement shall be issued by an insurance company that is authorized to
transact business in the State of Arizona and that has a current rating of A-VII or better in Best’s Insurance Report. Coordinator will provide Current Owner with confirmation of the above insurance upon Current Owner’s request of such.

 18.         Default. 

    (a)         Current Owner (or a Landowner) shall be deemed to
be in material default under this Agreement upon the expiration of thirty (30) days, as to monetary defaults, and sixty (60) days, as to non-monetary defaults, following receipt of written notice from Coordinator specifying the particulars
in which a default is claimed unless, prior to expiration of the applicable grace period (thirty (30) days or sixty (60) days, as the case may be), such default has been cured. 

    (b)         Coordinator shall be deemed to be in material
default under this Agreement upon the expiration of sixty (60) days following receipt of written notice of the failure to fulfill any of its obligations under this Agreement unless, prior to the expiration of such sixty (60) day period,
such failure has been cured. 
     (c)         In the event
either party to this Agreement is in material default under this Agreement, the non-defaulting party or Landowner(s) shall be entitled to any remedy permitted by law or equity including, without limitation, specific performance, injunctive, or other
equitable remedies in addition to any other remedy available at law or in equity, including damages. In this regard, in the event of monetary damages or any other amount due under this 

  
 37 

 
Agreement, such damages and delinquent amount shall bear interest at the rate of fifteen percent (15%) per annum from the due date until paid. 

    (d)         Upon Coordinator’s material uncured default
of any obligations under this Agreement, this Agreement shall be fully released at Current Owner’s option. In such event, upon request by Current Owner, Coordinator (i) shall record a full satisfaction and release of this Agreement and any
outstanding liens with the Maricopa County Recorder, (ii) shall confirm in writing the satisfaction and release of the Agreement, and (iii) shall within 90 days deliver to Current Owner all plans, documents, etc. provided to Coordinator,
WUGT and HUC relating to the Land. In the event Coordinator materially defaults on any obligations under this Agreement, Coordinator shall assign to Current Owner all Alternative Water Rights obtained from Current Owner or otherwise relating to the
Land. In the event of a material uncured default by Coordinator, Current Owner and each Landowner shall have the right to pursue any and all legal rights, damages and remedies against Coordinator for such default. In the event of an uncured default
by Coordinator, HUC and/or WUGT, all land deeded to Coordinator, WUGT or HUC shall be conveyed to Current Owner. 

19.        Coordinator’s Rights. Coordinator agrees that as and when
portions of the Land are sold, the obligations hereunder shall be bifurcated based on the land area sold and each Landowner shall be solely (and not jointly) responsible only for sums owed with respect to the Land areas that it owns and shall not
have any obligation or liability for the failure of any other Landowner with respect to the Land areas that such other Landowner owns. Coordinator also reserves the right to pursue legal remedies against a Landowner for such defaults by the
Landowner. 

  
 38 

 20.        Non Issuance of CC&N
Expansion. In the event that Coordinator, WUGT and HUC are unable to obtain all of the necessary approvals from the ACC by June 30, 2008, or if the ACC imposes conditions on the CC&N extensions which are not reasonably acceptable to
Current Owner and/or Landowners then Current Owner may terminate this Agreement without recourse to either party. In the event of termination of the Agreement, Coordinator shall remove or cause to be removed any recordation of this Agreement with
the Maricopa County Recorder, waive any lien rights it may have under this Agreement, and reconvey or cause to be reconveyed any and all Land conveyed under this Agreement and refund any and all payments made under this Agreement to Current Owner
and/or Landowner(s). If, at any time, the respective CC&Ns of HUC or WUGT are revoked, then Current Owner can terminate this Agreement in accordance with this section. 

21.        Attorneys’ Fees. If any dispute arises out of the subject
matter of this Agreement, the prevailing party in such dispute shall be entitled to recover from the other party its reasonable costs, expenses and attorney’s fees incurred in litigating, arbitrating, or otherwise resolving such dispute. The
parties’ obligations under this section shall survive the closing under this Agreement. 

22.        Applicable Law; Venue; Jurisdiction. This Agreement shall be
governed by and construed in accordance with the laws of the State of Arizona, notwithstanding any Arizona or other conflict-of-law provisions to the contrary. The parties consent to jurisdiction for purposes of this Agreement in the State of
Arizona, and agree that Maricopa County, Arizona, shall be proper venue for any action brought with respect to this Agreement. 

23.        Interpretation. The language in all parts of this Agreement shall in
all cases, be construed as a whole according to its fair meaning and not strictly for nor against any party. The 

  
 39 

 section headings in this Agreement are for convenience only and are not to be construed as a part
hereof. The parties agree that each party has reviewed this Agreement and has had the opportunity to have counsel review the same and that any rule of construction to the effect that ambiguities are to be resolved against the drafting party shall
not apply in the interpretation of this Agreement or any amendments or any exhibits thereto. Except where specifically provided to the contrary, when used in this Agreement, the term “including” shal1 mean without limitation by reason of
enumeration. All pronouns and any variations thereof shall be deemed to refer to masculine, feminine or neuter, singular or plural, as the identity of the person(s) or entity(ies) may require. 

24.         Counterparts. This Agreement shall be effective upon execution by
all parties hereto and may be executed in any number of counterparts with the same effect as if all of the parties had signed the same document. All counterparts shall be construed together and shall constitute one Agreement. 

25.         Entire Agreement. This Agreement constitutes the entire integrated
Agreement among the parties pertaining to the subject matter hereof, and supersedes all prior and contemporaneous agreements, representations, and undertakings of the parties with respect to such subject matter. This Agreement may not be amended
except by a written instrument executed by all parties hereto. 
 26.        
Most Favored Nation. Coordinator agrees that if Coordinator enters into an Infrastructure Coordination and Finance Agreement or other similar agreement relating to any land within 20 miles of the Land, Coordinator will not provide pricing,
terms, or conditions more favorable to that land than as provided under this Agreement, unless Coordinator amends this Agreement with the written consent of Current Owner to include such pricing, terms, or

  
 40 

 
conditions so that this Agreement is at least as favorable to Current Owner as the pricing, terms, and conditions offered to the other land. 

27.         Additional Instruments. The parties hereto agree to execute,
acknowledge, and deliver to each other such other documents and instruments as may be reasonably necessary or appropriate to evidence or to carry out the terms of this Assignment. 

28.         Severability. Every provision of this Agreement is intended to be
severable. If any term or provision hereof is illegal or invalid for any reason whatsoever, such illegality or invalidity shall not affect the validity or legality of the remainder of this Agreement. 

29.         Incorporation by Reference. Every exhibit attached to this
Agreement and referred to herein is hereby incorporated in this Agreement by reference. 

30.         Notices. Any notice, demand or communication required or permitted
to be given by any provision of this Agreement shall be in writing and shall be delivered personally to the party to whom the same is directed or sent by registered or certified mail, return receipt requested, addressed to the addresses set forth on
the signature page hereto. Any such notice shall be deemed to be delivered, given and received for all purposes as of the date so delivered if delivered personally, or three business days after the time when the same was deposited in a regularly
maintained receptacle for the deposit of United States mail, if sent by registered or certified mail, postage and charges prepaid, or if given by any other method, upon actual receipt; provided that notwithstanding the foregoing, notice of any
change of address shall be effective only upon actual receipt of such notice. 

31.         Binding Effect; Partial Releases. This Agreement shall be binding
upon and inure to the benefit of the successors and assigns of the respective parties. This Agreement constitutes a covenant running with the Land, and shall be binding upon the Land for the benefit of

  
 41 

 Coordinator, and its successors and assigns. Any person acquiring any portion of the Land, upon
acquisition thereof, shall be a Landowner and shall be deemed subject to (and in agreement with the terms of) this Agreement with respect only to that portion of the Land acquired without the necessity for the execution of any separate instrument.
As Developer Payments are made under this Agreement as noted above for portions of the Land, Coordinator shall take all action appropriate to cause this Agreement to be released for that portion of the Land upon request by Current Owner or the
applicable Landowner. 
 32.         Intended Third Party Beneficiaries. The
Landowners are intended third party beneficiaries of this Agreement. 
 33.        
Current Owner. Current Owner consists of those persons set forth on Schedule 1 attached hereto notwithstanding the transfer of ownership of all or any portion of the Land or any interest therein. A person constituting all or part of Current
Owner may transfer its Current Owner interest only by recording a document executed and acknowledged by (a) the individual or entity that desires to transfer its Current Owner interest, and (b) the individual or entity that is the
transferee of that interest setting forth the transfer of such interest. 
 [Signatures are on the following page.] 

  
 42 

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

			
	
	 COORDINATOR:

	 Global Water Resources, LLC,

a Delaware Limited Liability Company

		
	By:	 	 /s/ Cindy M. Liles

		 	Cindy M. Liles, Treasurer
		 	Global Water Resources, LLC
		 	21410 N. 19th Avenue
		 	Suite 201
		 	Phoenix, Arizona 85027
	
	CURRENT OWNER:
	
	BELMONT LKY 20K LIMITED
	   PARTNERSHIP L.L.L.P., an Arizona

  limited liability limited partnership

	
	 By LKY REAL ESTATE BELMONT, L.L.C.,

  an Arizona limited liability company,

  general partner

		
	By	 	 /s/ Larry K. Yount

		 	     Larry K. Yount, Manager

	
	Percentage Interest: 48.42520853742

  
 43 

			
	BOA SORTE LIMITED PARTNERSHIP,
	  an Arizona limited partnership
	
	By BOA SORTE LLC, an Arizona   limited liability company, general partner
		
	By	 	

	  Its	 	 Manager

	
	Percentage Interest: 8.07085239062
	
	 VIEL GLUCK LIMITED PARTNERSHIP,

  an Arizona limited partnership

	
	 By VIEL GLUCK LLC, an Arizona limited

  liability company, general partner

		
	By	 	

		
	  Its	 	 Manager

	
	Percentage Interest: 8.07085239062
	
	 BEN FATTO LIMITED PARTNERSHIP,

  an Arizona limited partnership

	
	 By BEN FATTO LLC, an Arizona limited

  liability company, general partner

		
	By	 	

		
	  Its	 	 Manager

	
	Percentage Interest: 8.07085240085

  
 44 

 
									
	SMT INVESTORS LIMITED
   PARTNERSHIP,
	    an Arizona limited partnership

		 		 	 By: MRW Management Company

      an Arizona Corporation

      Its General Partner

			
		 	 By
	 	/s/ Michael T. Cowley
			
		 	  Its	 	Vice President

  

					
	Percentage Interest: 7.58768562251  
	  	

	 STATE OF ARIZONA
	  	)	  
		  	) SS.	  
	 County of Maricopa
	  	)	  

 The foregoing document was acknowledged before me this 20th day of December, 2007, by Michael T. Cowley, as Vice President of MRW Management Company, General Partner of SMT INVESTORS LIMITED PARTNERSHIP, an Arizona limited
partnership. 
  

	
	/s/ Ronald L. Wilson
	  

	Notary Public

  

	
	 My Commission Expires:

9/9/2009

			
	SMT INVESTORS LIMITED PARTNERSHIP,
	  an Arizona limited partnership
		
	 By
	 	  

		
	   Its
	 	 _

	
	 Percentage Interest: 7.58768562251

	
	 CARDON FAMILY, L.L.C.,

  an Arizona limited liability company

 

	 By
	 	 

	   Its
	 	 Manager

	
	 Percentage Interest: 4.03544269964

	
	 FAR MAREL, L.L.C.,

  an Arizona limited liability company

		
	 By
	 	 

	   Its
	 	 Manager

	
	 Percentage Interest 4.03544148902

	
	 MT. OLYMPUS INVESTMENTS, L.L.C.,

  an Arizona limited liability company

		
	 By
	 	 

	   Its
	 	 Manager

	
	 Percentage Interest: 4.03544148901

  
 45 

			
	GOODWIN CONSULTANTS, L.L.C.,
	  an Arizona limited liability company
	 
	By	 	

	  Its	 	 Manager

	
	Percentage Interest: 3.14958292516
	
	 NEAL MANAGEMENT, L.L.C.,

  an Arizona limited liability company

		
	By	 	 

	  Its	 	 Managing Partner

	
	Percentage Interest: 2.92011839141
	
	ANC IRREVOCABLE TRUST DATED
	  OCTOBER 18, 2004
		
	By	 	  

		 	    Michael T. Cowley, Trustee
	
	Percentage Interest: 1.59852166374

  
 46 

							
		  		 	 MICHAEL T. COWLEY, AS TRUSTEE

ANC IRREVOCABLE TRUST DATED

              OCTOBER 18, 2004

				
		  		 	    By	 	 /s/ Michael T. Cowley

		  		 		 	Michael T. Cowley
			
	Percentage Interest: 1.59852166374	  		 	    Its Trustee

  

					
	STATE OF ARIZONA	  	        )	  	

		  	        ) ss.	  
	County of Maricopa	  	        )	  
		  		  

 The foregoing document was acknowledged before me this 20 day of
December, 2007, by Michael T. Cowley, as Trustee of the ANC IRREVOCABLE TRUST DATED OCTOBER 18, 2004, on behalf of the trust. 

 

			
	
	/s/ Ronald L. Wilson
	Notary Public

  

	
	My Commission Expires:
	                9/9/2009            

			
	 STATE OF ARIZONA
	  	 )

		  	 ) ss.

	 County of Maricopa
	  	 )

 On December 19, 2007, before me, Jennie L Critchfield, a Notary Public in and for said
state, personally appeared Cindy M. Liles, personally known to me (or proved to me on the basis of satisfactory evidence) to be the persons whose names are subscribed to the within instrument and acknowledged to me that they executed the same in
their authorized capacities, and that by their signatures on the instrument, the persons, or the entity upon behalf of which the persons acted, executed the instrument. 

WITNESS my hand and official seal. 
  

			
		  	 /s/ Jennie L Critchfield

		  	 Notary Public in and for said State

		
		  	 

  

			
	 My Commission Expires:    

        4/18/09
	  	

  

			
		
	 STATE OF ARIZONA
	  	 )

		  	 ) ss.

	 County of Maricopa
	  	 )

 The foregoing document was acknowledged before me this 19th day of December, 2007, by Larry K. Yount, as Manager of LKY REAL ESTATE BELMONT, L.L.C., an Arizona limited liability company, the general partner of BELMONT LKY 20K LIMITED PARTNERSHIP
L.L.L.P., an Arizona limited liability limited partnership, on behalf of the partnership. 
  

			
	 

	  	 /s/ Ingrid S. Williams

	  	 Notary Public

			
	 My Commission Expires:    

 
	  	

  

			
	 STATE OF ARIZONA
	  	 )

		  	 ) ss.

	 County of Maricopa
	  	 )

 The foregoing document was acknowledged before me this 19th day of December, 2007, by Wilford R. Cardon, as Manager of 

 
BOA SORTE LLC, an Arizona limited liability company, the general partner of BOA SORTE LIMITED PARTNERSHIP, an Arizona limited partnership, on behalf of the partnership. 

 

			
	         

	  	 /s/ Kelly L. White

Notary Public

	  

  

			
	 My Commission Expires:    

 
 9/7/2010
	  	

  

			
	 STATE OF ARIZONA
	  	 )

		  	 ) ss.

	 County of Maricopa
	  	 )

 The foregoing document was acknowledged before me this 17 day of December, 2007, by Brent
Bowden, as Manager of VIEL GLUCK LLC, an Arizona limited liability company, the general partner of VIEL GLUCK LIMITED PARTNERSHIP, an Arizona limited partnership, on behalf of the partnership. 

 

	
	
	/s/ Terri Newman
	 Notary Public

  

	
	 My Commission Expires:

	
	 July 18, 2011
                                

 

 

			
	 STATE OF ARIZONA
	  	 )

		  	 ) ss.

	 County of Maricopa
	  	 )

 The foregoing document was acknowledged before me this 17 day of December, 2007, by Broc. C.
Hiatt, as Manager of BEN FATTO LLC, an Arizona limited liability company, the general partner of BEN FATTO LIMITED PARTNERSHIP, an Arizona limited partnership, on behalf of the partnership. 

 

	
	
	/s/ Terri Newman
	 Notary Public

  

	
	My Commission Expires:
	
	July 18, 2011                              
	

  
 

 

			
	 STATE OF ARIZONA
	  	 )

		  	 ) ss.

	 County of Maricopa
	  	 )

 The foregoing document was acknowledged before me this
         day of                     , 20    , by
                    , its
                     of SMT INVESTORS LIMITED PARTNERSHIP, an Arizona limited partnership, on behalf of the partnership. 

 

	
	
	   

	 Notary Public

  

	
	 My Commission Expires:

	
	
                             
               

  

			
	 STATE OF ARIZONA
	  	 )

		  	 ) ss.

	 County of Maricopa
	  	 )

 The foregoing document was acknowledged before me this 19th day of December, 2007, by Wilford R. Cardon, as Manager of CARDON FAMILY, L.L.C., an Arizona limited liability company, on behalf of the company. 

 

									
			
	 

	  	  
  

/s/ Kelly L. White
	  	                         

	  	  
 Notary Public
	  	

  

	
	My Commission Expires:
	
	
9/7/2010                            
    

	

  

			
	 STATE OF ARIZONA
	  	 )

		  	 ) ss.

	 County of Maricopa
	  	 )

 The foregoing document was acknowledged before me this 17 day of December, 2007, by Brent
Bowden, as Manager of FAR MAREL, L.L.C., an Arizona limited liability company, on behalf of the company. 
  

	
	
	
	/s/ Terri Newman
	Notary Public

  

	
	My Commission Expires:
	
	 July 18,
2011                            

	

  
 

 

			
	 STATE OF ARIZONA
	  	 )

		  	 ) ss.

	 County of Maricopa
	  	 )

 The foregoing document was acknowledged before me this 17 day of December, 2007, by Broc C.
Hiatt, as Manager of MT. OLYMPUS INVESTMENTS, L.L.C., an Arizona limited liability company, on behalf of the company. 
  

	
	
	/s/ Terri Newman
	Notary Public

  

					
	 My Commission Expires:
	  		  	

	 July 18,
2011                        
	  		  

  

			
	 STATE OF ARIZONA
	  	 )

		  	 ) ss.

	 County of Maricopa
	  	 )

 The foregoing document was acknowledged before me this 17th day of December, 2007, by Greg S. Vogel, as Manager of GOODWIN CONSULTANTS, L.L.C., an Arizona limited liability company, on behalf of the limited liability company. 

 

	
	
	 /s/ Susan L. Lundquist

	Notary Public

  

							
				
	 My Commission Expires:

                       
                                 
	  		  	

	  	
	  
	  	  
	  	  	  

		  		  	  	

  

							
	 STATE OF ARIZONA
	  	 )
	  		  	
		  	 ) ss.
	  		  
	 County of Maricopa
	  	 )
	  		  

 The foregoing document was acknowledged before me this 18th day of December, 2007, by David N. Neal, as Managing Partner of NEAL MANAGEMENT, L.L.C., an Arizona limited liability company, on behalf of the company. 

 

	
	
	
	/s/ Ronald L. Wilson
	Notary Public

  

							
	My Commission Expires:	  		  	

	  	
	
                9/9/2009            
          
	  	  
	  	  	  

		  		  	  	

 EXHIBIT A 

INFRASTRUCTURE COORDINATION AND FINANCE AGREEMENT 

LEGAL DESCRIPTION OF LAND 
  

PARCEL NO. 1: [INTENTIONALLY DELETED] 
 PARCEL
NO. 2: 
 Lots 1 through 4, inclusive; the South half of the North half and the South half of Section 3, Township 2 North, Range 5 West
of the Gila and Salt River Base and Meridian, Maricopa County, Arizona. 
 PARCEL NO. 3: 

Lots 1 through 4, inclusive; the South half of the North half and the South half of Section 4, Township 2 North, Range 5 West of the Gila
and Salt River Base and Meridian, Maricopa County, Arizona. 
 PARCEL NO. 4: 

Lots 1 through 4, inclusive, the South half of the North half and the South half of Section 5, Township 2 North, Range 5 West of the Gila
and Salt River Base and Meridian, Maricopa County, Arizona. 
 PARCEL NO. 5: 

Lots 1 through 7, inclusive; the South half of the Northeast quarter, the Southeast quarter of the Northwest quarter, the Southeast quarter
and the East half of the Southwest quarter of Section 6, Township 2 North, Range 5 West of the Gila and Salt River Base and Meridian, Maricopa County, Arizona. 

PARCEL NO. 6: 
 Lots 1 through
4, inclusive; the East half of the West half and the East half of Section 7, Township 2 North, Range 5 West of the Gila and Salt River Base and Meridian, Maricopa County, Arizona. 

 PARCEL NO. 7: 

All of Section 8, Township 2 North, Range 5 West of the Gila and Salt River Base and Meridian, Maricopa County, Arizona. 

PARCEL NO. 8: 
 All of
Section 9, Township 2 North, Range 5 West of the Gila and Salt River Base and Meridian, Maricopa County, Arizona. 
 PARCEL NO. 9: 

The West half of the East half and the West half of Section 10, Township 2 North, Range 5 West of the Gila and Salt River Base and
Meridian, Maricopa County, Arizona. 
 PARCEL NO. 10: 

Lots I through 4, inclusive; the East half of the West half and the East half of Section 18, Township 2 North, Range 5 West of the Gila
and Salt River Base and Meridian, Maricopa County, Arizona. 
 PARCEL NO. 11: 

Lot 1, the East half of the Northwest quarter and the East half of Section 19, Township 2 North, Range 5 West of the Gila and Salt River
Base and Meridian, Maricopa County, Arizona. 
 PARCEL NO. 12: 

Lot 1, Lots 4 through 7, inclusive; the Southeast quarter of the Northeast quarter, the South half of the Southwest quarter and the Southeast
quarter of Section 17, Township 3 North, Range 5 West of the Gila and Salt River Base and Meridian, Maricopa County, Arizona. 
 PARCEL
NO. 13: 
 Lots 9 and 10 of Section 18, Township 3 North, Range 5 West of the Gila and Salt River Base and Meridian,
Maricopa County, Arizona. 
 PARCEL NO. 14: 

 Lots 2 through 6, inclusive; the Southeast quarter of the Northwest quarter, the East half of the
Southwest quarter and the East half of Section 19, Township 3 North, Range 5 West of the Gila and Salt River Base and Meridian, Maricopa County, Arizona. 

PARCEL NO. 15: 
 All of
Section 20, Township 3 North, Range 5 West of the Gila and Salt River Base and Meridian, Maricopa County, Arizona. 
 PARCEL NO. 16:

 All of Section 21, Township 3 North, Range 5 West of the Gila and Salt River Base and Meridian, Maricopa County, Arizona. 

PARCEL NO. 17: 
 All of
Section 28, Township 3 North, Range 5 West of the Gila and Salt River Base and Meridian, Maricopa County, Arizona. 
 PARCEL NO. 18:

 All of Section 29, Township 3 North, Range 5 West of the Gila and Salt River Base and Meridian, Maricopa County, Arizona. 

PARCEL NO. 19: 
 Lots I through
4, inclusive; the East half of the West half and the East half of Section 30, Township 3 North, Range 5 West of the Gila and Salt River Base and Meridian, Maricopa County, Arizona. 

PARCEL NO. 20: 
 Lots 1 through
4, inclusive; the East half of the West half and the East half of Section 31, Township 3 North, Range 5 West of the Gila and Salt River Base and Meridian, Maricopa County, Arizona. 

PARCEL NO. 21: 
 All of
Section 33, Township 3 North, Range 5 West of the Gila and Salt River Base and Meridian, Maricopa County, Arizona. 

 PARCEL NO. 22: 

The East half of Section 34, Township 3 North, Range 5 West of the Gila and Salt River Base and Meridian, Maricopa County, Arizona. 

PARCEL NO. 23: 
 Lots 1 through
4, inclusive; the South half of the North half and the South half of Section 1, Township 2 North, Range 6 West of the Gila and Salt River Base and Meridian, Maricopa County, Arizona. 

PARCEL NO. 24: 
 All of
Section 11, Township 2 North, Range 6 West of the Gila and Salt River Base and Meridian, Maricopa County, Arizona. 
 PARCEL NO. 25:

 All of Section 12, Township 2 North, Range 6 West of the Gila and Salt River Base and Meridian, Maricopa County, Arizona. 

PARCEL NO. 26: 
 The North half
and the Southwest quarter of Section 13, Township 2 North, Range 6 West of the Gila and Salt River Base and Meridian, Maricopa County, Arizona. 

PARCEL NO. 27: 
 The East half
of Section 14, Township 2 North, Range 6 West of the Gila and Salt River Base and Meridian, Maricopa County, Arizona. 
 PARCEL NO. 28:

 The Northeast quarter of Section 24, Township 2 North, Range 6 West of the Gila and Salt River Base and Meridian, Maricopa County,
Arizona. 
 PARCEL NO. 29: 

Lot 3 of Section 14, Township 3 North, Range 6 West of the Gila and Salt River Base and Meridian, Maricopa County, Arizona. 

 PARCEL NO. 30: 

The South half of the Northeast quarter and the Southeast quarter of Section 22, Township 3 North, Range 6 West of the Gila and Salt
River Base and Meridian, Maricopa County, Arizona. 
 PARCEL NO. 31: 

Lots 1 through 3, inclusive; the Northeast quarter of the Northeast quarter, the South half of the North half and the South half of
Section 23, Township 3 North, Range 6 West of the Gila and Salt River Base and Meridian, Maricopa County, Arizona. 
 PARCEL NO. 32:

 Lots 2 through 4, inclusive, the South half of the Northwest quarter and the South half of Section 24, Township 3 North, Range 6 West of
the Gila and Salt River Base and Meridian, Maricopa County, Arizona. 
 PARCEL NO. 33: 

All of Section 25, Township 3 North, Range 6 West of the Gila and Salt River Base and Meridian, Maricopa County, Arizona. 

PARCEL NO. 34: 
 The East half
and the East half of the West half of Section 26, Township 3 North, Range 6 West of the Gila and Salt River Base and Meridian, Maricopa County, Arizona. 

PARCEL NO. 35: 
 The East half
of Section 27, Township 3 North, Range 6 West of the Gila and Salt River Base and Meridian, Maricopa County, Arizona. 
 PARCEL NO. 36:

 All of Section 34, Township 3 North, Range 6 West of the Gila and Salt River Base and Meridian, Maricopa County, Arizona. 

PARCEL NO. 37: 
 All of
Section 35, Township 3 North, Range 6 West of the Gila and Salt River Base and Meridian, Maricopa County, Arizona. 

 PARCEL NO. 38: 

The West half, the West half of the East half, the Northeast quarter of the Northeast quarter, the South half of the North half of the
Southeast quarter of the Northeast quarter and the South half of the Southeast quarter of the Northeast quarter of Section 29, Township 2 North, Range 5 West of the Gila and Salt River Base and Meridian, Maricopa County, Arizona. 

EXCEPT COMMENCING at the Northeast corner of said Northeast quarter of the Northeast quarter of Section 29; 

THENCE South 00 degrees 11 minutes 16 seconds West, along the East line of said Northeast quarter of the Northeast quarter, 1291.13 feet to
the POINT OF BEGINNING; 
 THENCE continuing South 00 degrees 11 minutes 16 seconds West, 26.41 feet; 

THENCE North 89 degrees 25 minutes 24 seconds West, along the South line of said Northeast quarter of the Northeast quarter, 808.80 feet; 

THENCE North 01 degrees 25 minutes 28 seconds West, 101.26 feet; 

THENCE South 84 degrees 09 minutes 42 seconds East, 815.59 feet to the POINT OF BEGINNING. 

PARCEL NO. 39: 
 The Northeast
quarter, the Southeast quarter of the Northwest quarter, the North half of the Southeast quarter and the Southeast quarter of the Southeast quarter of Section 30, Township 2 North, Range 5 West of the Gila and Salt River Base and Meridian,
Maricopa County, Arizona. 
 PARCEL NO. 40: 

The East half of the East half of Section 31, Township 2 North, Range 5 West of the Gila and Salt River Base and Meridian, Maricopa
County, Arizona. 
 PARCEL NO. 41: 

The Southwest quarter of the Northwest quarter of Section 26, Township 3 North, Range 6 West of the Gila and Salt River Base and
Meridian, Maricopa County, Arizona. 

 PARCEL NO. 42: 

GLO Lot (fractional Southwest quarter of the Southwest quarter) and the Southeast quarter of the Southwest quarter and the Southwest quarter
of the Southeast quarter of Section 30, Township 2 North, Range 5 West of the Gila and Salt River Base and Meridian, Maricopa County, Arizona. 

PARCEL NO. 43: [INTENTIONALLY DELETED] 

PARCEL NO. 44: [INTENTIONALLY DELETED] 

PARCEL NO. 45: [INTENTIONALLY DELETED] 

 EXHIBIT B 

INFRASTRUCTURE COORDINATION AND FINANCE AGREEMENT 

INTENTIONALLY OMITTED 

 EXHIBIT C 

INFRASTRUCTURE COORDINATION AND FINANCE AGREEMENT 

START WORK NOTICE TRIGGER 
 SAMPLE
START WORK NOTICE 
 Invoice Date: 

			
	 Due Date:         Net 15

	
	  
 Invoice
to:             Name

	                              
Address

 By issuance of this Start Work Notice, the undersigned notifies and authorizes Coordinator to commence the
bidding of the construction jobs necessary to provide water, wastewater and reclaimed water services to the development. 
 Amount due: 

 

			
	 Number of lots within development
	  	 10,000

	 Start Work Notice fee per lot
	  	 $550

	 Invoice Amount
	  	 $5,500,000

 EXHIBIT D 

[INFRASTRUCTURE COORDINATION AND FINANCE AGREEMENT 

DESCRIPTION OF WUGT AND HUC SERVICES 

TO BE COORDINATED BY COORDINATOR 

WUGT 
  

	-	 Continue to provide information and pursue pending CC&N application in a timely fashion with the ACC for the current expansion application to
include the Land in the CC&N water service area in an effort to have the expansion approved no later than June 30, 2008; 

  

	-	 Prepare a master water plan with respect to the Land on or before June 30, 2008 (this excludes in parcel master planning);

  

	-	 Develop sufficient water plant and water source capacity for the Land pursuant to the Agreement; 

 

	-	 Extend water distribution main lines pursuant to the Agreement; 

 

	-	 Provide will-serve letters to applicable governmental agencies necessary for final plat approvals consistent with the Assured Water Supply
provisions of section 9 of the Agreement; 

  

	-	 Provide a schedule of commitment dates personalized for the Land; 

 

	-	 Utilize the Assured Water Analysis obtained by Current Owner to apply for a designation of assured water supply and pursue that application with
diligence so that WUGT’s designation may be used for final plat approvals and Department of Real Estate approvals, consistent with the Assured Water Supply provisions of section 9 of this Agreement; 

 

	-	 Provide Notices of Intent to Serve to the Arizona Department of Water Resources consistent with the Assured Water Supply provisions of section 9 of
this Agreement; 

  

	-	 Provide expedited final subdivision plat water improvement plan check and coordination with the Arizona Department of Environmental Quality for
Approvals to Construct and/or the Maricopa County Environmental Services Department (“MCESD”); 

  

	-	 Provide facilities line extension agreements for construction of infrastructure within the Land, which is subject to reimbursement (excluding
Off-Site Facilities); 

  

	-	 Provide water utility service to the Land. As of the date of this Agreement, water utility services will be provided to phase 1 development of the
Land on or before March 31, 2010; and 

  

	-	 WUGT shall provide and obtain any and all plans, permits, and/or approvals, and construct, design, engineer any and all other water utility
facilities, as required or necessary for issuance of plats, public reports, building permits, certificates of occupancy and other similar requirements necessary for development of the Land, except for on-site water facilities to be constructed by
Landowners pursuant to line extension agreements for improvements other than Off-Site Facilities. 

 HUC 
  

	-	 Continue to provide information and pursue pending CC&N application in a timely fashion with the ACC for the current expansion application to
include the Land in the CC&N wastewater service area in an effort to have the expansion approved no later than June 30, 2008; 

  

	-	 Prepare a master wastewater plan with respect to the Land on or before June 30, 2008 (this excludes in parcel master planning);

  

	-	 Develop a master Recycled Water treatment and distribution plan including plan for interim water supply for storage retention structures for
Recycled Water Stage 1 on or before June 30, 2008; 

  

	-	 Develop sufficient wastewater plant capacity for the Land pursuant to the Agreement; 

 

	-	 Extend wastewater collection system main lines per the Agreement; 

 

	-	 Extend reclaimed water lines to the storage retention structures within the Land for Recycled Water Stage 1 and install other reclaimed water
infrastructure pursuant to the Agreement; 

  

	-	 Provide all permitting and regulatory approvals including but not limited to an Aquifer Protection Permit, Maricopa County Association of
Governments (MAG) 208 Water Quality Plan, approvals to construct, NPDES, and AZPDES as necessary in sufficient time to allow for provision of Utility Service to phase l of the Land on or before March 31, 2010; 

 

	-	 Provide will-serve letters to applicable governmental agencies necessary for final plat approvals; 

 

	-	 Provide a schedule of commitment dates personalized for the Land; 

 

	-	 Provide expedited final subdivision plat wastewater improvement plan check and coordination with the MCESD for Approvals to Construct;

  

	-	 Provide facilities line extension agreements to Landowner for construction of wastewater infrastructure within the Land (subject to reimbursement)
other than for Off-Site Facilities; 

  

	-	 Provide wastewater and Recycled Water utility service to the Land. As of the date of this Agreement, wastewater/Recycled Water utility services
will be provided to phase 1 development of the Land on or before March 31, 2010; and 

  

	-	 HUC shall provide and obtain any and all plans, permits, and/or approvals, and construct, design, engineer any and all other wastewater/Recycled
Water utility facilities, as required or necessary for issuance of plats, public reports, building permits, certificates of occupancy and other similar requirements necessary for development of the Land, except for on-site wastewater facilities to
be constructed by Landowners pursuant to line extension agreements for improvements other than Off-Site Facilities. 

 EXHIBIT E 

INFRASTRUCTURE COORDINATION AND FINANCE AGREEMENT 

WATER FACILITIES EXTENSION AGREEMENT 

This Agreement is made this
                 day of
                                , 200_ by and between WATER UTILITY OF GREATER
TONOPAH an Arizona corporation (“Company”), and
                                , an
                                        
(“Developer”). 
 RECITALS: 

A.         Developer desires that water utility service be extended to and for its
real estate development located in Parcel          of
                                 consisting of
         (single family, multi-family or commercial) lots, in Maricopa County within the general vicinity of the City of
                    , Arizona (the “Development”). A legal description for the Development is attached hereto as Exhibit
“A” and incorporated herein by this reference. The Development is located within Company’s Certificate of Convenience and Necessity (“CC&N”). 

B.         Company is a public service corporation as defined in Article XV,
Section 2 of the Arizona Constitution which owns and operates water treatment and distribution systems and holds a CC&N from the Commission granting Company the exclusive right to provide water utility service within portions of Maricopa
County, Arizona. 
 C.         Developer is willing to construct and install
facilities within the Development necessary to extend water utility service to and within the Development which facilities shall connect to the Company’s system as generally shown on the map attached hereto as Exhibit “B.” Company is
willing to provide water utility service to the Development in accordance with relevant law, including the rules and regulations of the Commission on the 

 condition that Developer fully and timely perform the obligations and satisfy the conditions and
requirements set forth below. 
 COVENANTS AND AGREEMENTS: 

NOW, THEREFORE, in consideration of the following covenants and agreements, and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereby agree as follows: 
 1.
        Construction of Facilities.   Developer agrees to construct and install water distribution mains and pipelines, valves, booster stations, hydrants, fittings, service lines and
all other related facilities and improvements necessary to provide water utility service to each lot or building within the Development as more particularly described in Exhibit “C” attached hereto and incorporated herein by this reference
(referred to hereinafter as the “Facilities”). The Facilities shall connect to the Company’s system at the point shown on the approved plans as generally depicted on the map attached hereto as Exhibit “B,” and shall be
designed and constructed within the Development in a manner which allows the provision of safe and reliable water utility service to each lot therein. Subject to the terms and conditions set forth herein (including, without limitation,
Company’s rights of plan review and approval and inspection of final construction), Developer shall be responsible for all construction activities associated with the Facilities, and Developer shall be liable for and pay when due all costs,
expenses, claims and liabilities associated with the construction and installation of the Facilities. 
 2.
        Construction Standards and Requirements.   The Facilities shall meet and comply with Company’s standards and specifications, and all engineering plans and specifications
for the Facilities shall be approved by Company and its engineers (“Company’s 

 Engineer”), prior to the commencement of construction, with such approval not to be
unreasonably withheld. Company and Company’s Engineer shall review the plans and specifications and shall provide any requirements or comments as soon as practicable. Developer shall require that its contractor be bound by and conform to the
plans and specifications for the Facilities as finally approved by Company and Developer. The construction and installation of the Facilities shall be in conformance with the applicable regulations of the Arizona Department of Environmental Quality
(“ADEQ”), the Commission, and any other governmental authority having jurisdiction there over. 
 3.
        Right of Inspection; Corrective Action.   Company shall have the right to have Company’s Engineer inspect and test the Facilities at reasonable times during the course of
construction as necessary to ensure conformance with plans and specifications. If at any time before the final acceptance by Company of the Facilities any construction, materials or workmanship are found to be materially defective or materially
deficient in any way, or the Facilities fail to conform to this Agreement, then Company may reject such defective or deficient construction, materials and/or workmanship and require Developer to fully pay for all necessary corrective construction
efforts (“Corrective Action”). Company reserves the right to withhold approval and to forbid connection of any such defective portion of the Facilities to Company’s system unless and until the Facilities have been constructed in
accordance with plans and specifications and all applicable regulatory requirements. Further, Developer shall promptly undertake any Corrective Action required to remedy such defects and deficiencies in construction, materials and workmanship upon
receipt of notice by Company. The foregoing notwithstanding, Company shall not unreasonably withhold or delay acceptance of the Facilities. 

 4.         Transfer of
Ownership.   Upon completion and approval of the as-built Facilities by Company and any other governmental authority whose approval is required, Developer shall transfer all right, title and interest in the Facilities to Company
via a bill of sale in a form satisfactory to Company and Developer. Thereafter, Company shall be the sole owner of the Facilities and be responsible for their operation, maintenance and repair. Company’s ownership and responsibility shall
include all distribution mains and/or related appurtenances within the Development up to the point of connection to the service line of each customer receiving service. Maintenance and repair of each service line, which lines are not part of the
Facilities, shall be Developer’s, the Development’s or each individual customers’ responsibility. All work performed by or on behalf of Developer shall be warranted by Developer for one year from the date of transfer of the Facilities
to Company against defects in materials and workmanship. Developer shall also covenant, at the time of transfer, that the Facilities are free and clear of all liens and encumbrances, and unless the time period for filing lien claims has expired,
shall provide evidence in the form of lien waivers that all claims of contractors, subcontractors, mechanics and materialmen have been paid and satisfied. 

5.         Final As-Built Drawings and Accounting of Construction
Costs.   Immediately following completion and approval of the Facilities, Developer shall provide Company with three sets of as-built drawings and specifications for the Facilities and a reproducible copy of such drawings.
Developer shall also provide an accounting of the cost of constructing and installing the Facilities, which amount shall be refundable in accordance with paragraph 8, below. Company shall have no obligation to furnish service to the Development or
to accept the transfer of the Facilities until Developer has complied with this paragraph. 

 6.         Easements.
  Developer shall be responsible for obtaining all necessary easements and rights-of-way for the construction and installation, and subsequent operation, maintenance and repair of the Facilities. Such easements and rights-of-way shall
be of adequate size, location, and configuration so as to allow Company ready access to the Facilities for maintenance and repairs and other activities necessary to provide safe and reliable water utility service. Such easements and rights-of-way
shall be provided to Company by Developer at the same time as Developer transfers ownership of the Facilities pursuant to paragraph 4, above. At the time of transfer, all easements and rights-of-way shall be free of physical encroachments,
encumbrances or other obstacles. Company shall have no responsibility to obtain or secure on Developer’s behalf any such easements or rights-of-way. 

7.         Reimbursement for Engineering and Other Fees and
Expenses.   Developer shall also reimburse Company for the costs, expenses and fees, including legal fees and costs that are incurred by Company for preparation of this Agreement, for reviewing and approving the plans and
specifications for the Facilities to be constructed by Developer, for inspecting the Facilities during construction and other supervisory activities undertaken by Company, for obtaining any necessary approvals from governmental authorities
(collectively the “Administrative Costs”). For such purpose, at the time of the signing of this Agreement, the Developer will pay an advance to the Company of Seven Thousand Five Hundred Dollars ($7,500). Developer shall provide additional
advances to Company, as may be requested by Company in writing from time-to-time, to reimburse Company for any additional Administrative Costs it incurs. All amounts paid to Company pursuant to this provision shall constitute advances in aid of
construction and be subject to refund pursuant to paragraph 8, below. 

 8.         Refunds of
Advances.   Company shall refund annually to Developer an amount equal to seven percent (7%) of the gross annual revenues received by Company from the provision of water utility service to each bona fide customer within the
Development. Such refunds shall be paid by Company on or before the first day of August, commencing in the fourth calendar year following the calendar year in which title to the Facilities is transferred to and accepted by Company and continuing
thereafter in each succeeding calendar year for a total of twenty-two (22) years. No interest shall accrue or be payable on the amounts to be refunded hereunder, and any unpaid balance remaining at the end of such twenty-two year period shall
be non-refundable. In no event shall the total amount of the refunds paid by Company hereunder exceed the total amount of all advances made by Developer hereunder. For the purposes of this provision, the total amount of Developer’s advances
shall be equal to Developer’s actual cost of constructing the Facilities, less the costs of any corrective action as defined in paragraph 3 above, the costs of curing any defects arising during the warranty period, as provided herein, and the
costs of any unreasonable overtime incurred in the construction of the Facilities, above, and the amounts paid by Developer to Company for Administrative Costs pursuant to paragraph 7, above. 

9.         Company’s Obligation to Serve.   Subject to
the condition that Developer fully perform its obligations under this Agreement, Company shall provide water utility service to all customers within the Development in accordance with Company’s tariffs and schedule of rates and charges for
service, the rules and regulations of the Commission and other regulatory authorities and requirements. However, Company shall have no obligation to accept and operate the Facilities in the event Developer fails to make any payment provided in this
Agreement, fails to construct and install the Facilities in accordance with Company’s standards and specifications 

 and in accordance with the applicable rules and regulations of ADEQ, the Commission or any other
governmental authority having jurisdiction there over, or otherwise materially fails to comply with the terms and conditions of this Agreement. Developer acknowledges and understands that Company will not establish service to any customer within the
Development until such time as Company has accepted the transfer of the Facilities, and all amounts that Developer is required to pay Company hereunder have in fact been paid. The foregoing notwithstanding, the Company shall not terminate service to
any customer within the Development to whom service has been properly established as a consequence of any subsequent breach or nonperformance by Developer hereunder. 

10.         Liability for Income Taxes.   In the event it is
determined by the Arizona Department of Revenue or Internal Revenue Service that all or any portion of Developer’s advances in aid of construction hereunder constituted taxable income to Company as of the date of this Agreement or at the time
Company actually receives such advances hereunder, Developer will advance funds to Company equal to the income taxes resulting from Developer’s advance hereunder. Developer reserves the right to contest such determination and Company shall
pursue necessary legal remedies or appeals if requested by Developer. Subject to appeal rights, these funds shall be paid to Company within twenty (20) days following notification to Developer that a determination has been made that any such
advances constitute taxable income, whether by virtue of any determination or notification by a governmental authority with taxing authority, amendment to the Internal Revenue Code, any regulation promulgated by the Internal Revenue Service, or
similar change to any statute, rule or regulation relating to this matter, but not including any determination by the Arizona Corporation Commission. Such notification shall include documentation reasonably necessary to substantiate the
Company’s liability for income 

 taxes resulting from the Developer’s advances in aid of construction under this Agreement.
In the event that additional funds are paid by Developer under this paragraph, such funds shall also constitute advances in aid of construction. In addition, Developer shall indemnify and hold Company harmless for, from and against any tax related
interest, fines and penalties assessed against Company and other costs and expenses incurred by Company solely as a consequence of late payment by Developer of amounts described above. 

11.         Notice.   All notices and other written
communications required hereunder shall be sent to the parties as follows: 
  

					
		  	 COMPANY:
	  	
			
		  	 Water Utility of Greater Tonopah

Attn: Cindy M. Liles, Secretary

21410 N. 19th Avenue

Suite 201
 Phoenix, Arizona
85027
	  	
		  	  
 DEVELOPER:
	  	

  

					
		  	  
	  	
		  	  
	  	
		  	  
	  	
		  	  
	  	

 Each party shall advise the other party in writing of any change in the manner in which notice
is to be provided hereunder. 
 12.         Governing Law.
  This Agreement, and all rights and obligations hereunder, shall be subject to and governed by the rules and regulations of the Commission relating to domestic water utilities and shall be governed by and construed in accordance with
the laws of the State of Arizona. Developer understands and acknowledges that Company’s rates and charges, and other terms and conditions applicable to its provision of utility service, may be 

 modified from time-to-time by order of the Commission. Company shall provide Developer with
copies of such orders that may affect Developer’s rights and obligations hereunder. 
 13.
        Time is of the Essence.   Time is and shall be of the essence of this Agreement. 

14.         Indemnification: Risk of Loss.   Developer shall
indemnify and hold Company harmless for, from and against any and all claims, demands and other liabilities and expenses (including attorneys’ fees and other costs of litigation) arising out of or otherwise relating to construction of the
facilities under this Agreement. Developer’s duty to indemnify Company shall extend to all construction activities undertaken by Developer, its contractors, subcontractors, agents, and employees hereunder. This indemnity clause shall apply only
to the extent such claim, demand, liability and/or expense is caused by Developer and/or its contractors, subcontractors, agents and employees. This indemnity clause shall not apply to the extent such claim, demand, liability and/or expense is
caused by Company, Global Water Resources, LLC and/or their respective agents, partners, members, directors, principals, officers, agents, employees, representatives, parents, subsidiaries, affiliates, consultants, insurers and/or sureties, and/or
any other third party. 
 15.         Successors and Assigns.
  This Agreement may be assigned by either of the parties provided that the assignee agrees in writing to be bound by and fully perform all of the assignor’s duties and obligations hereunder. This Agreement and all terms and
conditions contained herein shall be binding upon and shall inure to the benefit of the successors and assigns of the parties. 

 16.         Dispute
Resolution.   The parties hereto agree that each will use good faith efforts to resolve, through negotiation, disputes arising hereunder without resorting to mediation, arbitration or litigation. 

17.         Integration: One Agreement.   This Agreement
supersedes all prior agreements, contracts, representations and understandings concerning its subject matter, whether written or oral. 

18.         Attorneys’ Fees.   The prevailing party in
any litigation or other proceeding concerning or related to this Agreement, or the enforcement thereof, shall be entitled to recover its costs and reasonable attorneys’ fees. 

19.         Authority to Perform.   Company represents and
warrants to Developer that Company has the right, power and authority to enter into and fully perform this Agreement. Developer represents and warrants to Company that Developer has the right, power and authority to enter into and fully perform this
Agreement. 
  

											
	DEVELOPER:	 		 		 	COMPANY:
				
	                               
             	 		 		 	WATER UTILITY OF GREATER TONOPAH
	                               
             	 		 		 	an Arizona corporation
					
	By	 	  
	 		 	By	 	  

		 	Its	 	  
	 		 		 	Cindy Liles
		 		 		 		 	Its:	 	Secretary

 EXHIBIT “A” 

Legal Description 

 EXHIBIT “B” 

Point(s) of Connection 

 EXHIBIT “C” 

Water Facilities Budget 

(Required to be completed by Developer prior to execution of agreement) 

 

									
	   Item
  
	 	     QTY    

 
	 	     UNIT    

 
	 	       UNIT $      

 
	 	       TOTAL $      

 

	  

	   8” C-900, Class 150 Water Main
	 		 	LF	 		 	
	   8” Valve Box & Cover
	 		 	EA	 		 	
	   Fire Hydrant, Complete
	 		 	EA	 		 	
	   3/4” Double Water Service
	 		 	EA	 		 	
	   3/4” Single Water Service
	 		 	EA	 		 	
	   1  1⁄2’ Landscape service
	 		 	EA	 		 	
	   2” Landscape service
	 		 	EA	 		 	
	   1” Landscape service
	 		 	EA	 		 	
		 		 		 		 	  

	   Subtotal
	 		 		 		 	
	   Sales Tax
	 		 		 		 	
		 		 		 		 	  

	   Total
	 		 		 		 	
		 		 		 		 	  

 EXHIBIT F 

INFRASTRUCTURE COORDINATION AND FINANCE AGREEMENT 

WASTEWATER FACILITIES EXTENSION AGREEMENT 

This Agreement is made this              day of
                                , 200_ by and between HASSAYAMPA UTILITY COMPANY,
an Arizona corporation (“Company”),
                                , an
                                        
(“Developer”). 
 RECITALS: 

A.         Developer desires that wastewater utility service be extended to and for
its real estate development located in Parcel          of                  consisting of
         (single family, multi-family or commercial) lots, in Maricopa County within the general vicinity of the City of Maricopa, Arizona (the “Development”). A legal description for the
Development is attached hereto as Exhibit “A” and incorporated herein by this reference. The Development is located within Company’s Certificate of Convenience and Necessity (“CC&N”). 

B.         Company is a public service corporation as defined in Article XV, Section
2 of the Arizona Constitution which will own and operate a wastewater treatment plant, collection system, reclaimed water distribution system and holds a CC&N from the Commission granting Company the exclusive right to provide wastewater and
reclaimed water utility service within portions of Maricopa County, Arizona. 
 C.
        Developer is willing to construct and install facilities within the Development necessary to extend wastewater utility service to and within the Development which facilities shall connect to the
Company’s system as generally shown on the map attached hereto as Exhibit “B.” Company is willing to provide wastewater and reclaimed water utility service to the Development in accordance with relevant law, including the rules and
regulations 

 of the Commission on the condition that Developer fully and timely perform the obligations and
satisfy the conditions and requirements set forth below. 
 COVENANTS AND AGREEMENTS: 

NOW, THEREFORE, in consideration of the following covenants and agreements, and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereby agree as follows: 
 1.
        Construction of Facilities.  Developer agrees to construct and install sewage collection mains, manholes, pumping stations and/or such other facilities and improvements
necessary to provide sewer utility service to each lot or building within the Development as more particularly described in Exhibit “C” attached hereto and incorporated herein by this reference (referred to hereinafter as the
“Facilities”). The Facilities shall connect to the Company’s system at the point shown on the approved plans as generally depicted on the map attached hereto as Exhibit “B,” and shall be designed and constructed within the
Development in a manner which allows the provision of safe and reliable sewer utility service to each lot therein. Subject to the terms and conditions set forth herein (including, without limitation, Company’s rights of plan review and approval
and inspection of final construction), Developer shall be responsible for all construction activities associated with the Facilities, and Developer shall be liable for and pay when due all costs, expenses, claims and liabilities associated with the
construction and installation of the Facilities. Company shall construct, design, operate, finance and pay for any and all necessary facilities for treatment of recycled water and any and all recycled water transmission and delivery pipes, mains and
lines on the Land or off the Land necessary for delivery of recycled water to reclaimed water retention structures. Developer shall be responsible for reclaimed water transmission and delivery pipes, mains and lines necessary for 

 distribution of the recycled water from such reclaimed water retention structures to common areas
and other uses on the Land. Company shall construct, design, operate, finance and pay for any and all other recycled water facilities on the Land or off the Land, including such facilities necessary for delivery of recycled water to individual
residences on the Land. Company shall construct, operate, finance and maintain any and all recycled water treatment plant(s) and transmission or delivery pipes, lines and/or mains necessary for delivery of recycled water at locations mutually agreed
and approved by the parties, including connection lines to individual end-users for recycled water. 
 2.
        Construction Standards and Requirements.  The Facilities shall meet and comply with Company’s standards and specifications, and all engineering plans and specifications
for the Facilities shall be approved by Company and its engineers (“Company’s Engineer”) prior to the commencement of construction, with such approval not to be unreasonably withheld. Company and Company’s Engineer shall review
the plans and specifications and shall provide any requirements or comments as soon as practicable. Developer shall require that its contractor be bound by and conform to the plans and specifications for the Facilities as finally approved by Company
and Developer. The construction and installation of the Facilities shall be in conformance with the applicable regulations of the Arizona Department of Environmental Quality (“ADEQ”), the Commission, and any other governmental authority
having jurisdiction there over. 
 3.         Right of Inspection; Corrective
Action.  Company shall have the right to have Company’s Engineer inspect and test the Facilities at reasonable times during the course of construction as necessary to ensure conformance with plans and specifications. If at
any time before the final acceptance by Company of the Facilities any construction, materials or 

 workmanship are found to be materially defective or materially deficient in any way, or the
Facilities fail to conform to this Agreement, then Company may reject such defective or deficient construction, materials and/or workmanship and require Developer to fully pay for all necessary corrective construction efforts (“Corrective
Action”). Company reserves the right to withhold approval and to forbid connection of any defective portion of the Facilities to Company’s system unless and until the Facilities have been constructed in accordance with plans and
specifications and all applicable regulatory requirements. Further, Developer shall promptly undertake any Corrective Action required to remedy such defects and deficiencies in construction, materials and workmanship upon receipt of notice by
Company. The foregoing notwithstanding, Company shall not unreasonably withhold or delay acceptance of the Facilities. 

4.         Transfer of Ownership.  Upon completion and
approval of the as-built Facilities by Company and any other governmental authority whose approval is required, Developer shall transfer all right, title and interest in the Facilities to Company via a bill of sale in a form satisfactory to Company
and Developer. Company shall be responsible for financing, constructing, operating and maintaining any and all pumping stations, booster stations, collection main, distribution mains, transmission mains or other similar facilities for recycled water
service, including the point of connection for recycled water service to the individual end-user customer. Company, in its sole discretion, may require Developer to conduct a video inspection of any of the Facilities prior to final approval and
acceptance to ensure that no breaks or similar defects exist. Thereafter, Company shall be the sole owner of the Facilities and be responsible for their operation, maintenance and repair. Company’s ownership and responsibility shall include all
pumping stations, manholes, collection and transmission mains and/or related appurtenances within the Development up to the point of connection of the wastewater line of each customer 

 receiving service to the collection main. Maintenance and repair of each wastewater service line,
which lines are not part of the Facilities, shall be Developer’s, the Development’s or each individual customers’ responsibility. All work performed by or on behalf of Developer shall be warranted by Developer for one year from the
date of transfer of the Facilities to Company against defects in materials and workmanship. Developer shall also covenant, at the time of transfer, that the Facilities are free and clear of all liens and encumbrances, and unless the time period for
filing lien claims has expired, shall provide evidence in the form of lien waivers that all claims of contractors, subcontractors, mechanics and materialmen have been paid and satisfied. 

5.         Final As-Built Drawings and Accounting of Construction
Costs.  Immediately following completion and approval of the Facilities, Developer shall provide Company with three sets of as-built drawings and specifications for the Facilities and a reproducible copy of such drawings.
Developer shall also provide an accounting of the cost of constructing and installing the Facilities, which amount shall be refundable in accordance with paragraph 8, below. Company shall have no obligation to furnish service to the Development or
to accept the transfer of the Facilities until Developer has complied with this paragraph. 
 6.
        Easements.  Developer shall be responsible for obtaining all necessary easements and rights-of-way for the construction and installation, and subsequent operation, maintenance
and repair of the Facilities. Such easements and rights-of-way shall be of adequate size, location, and configuration so as to allow Company ready access to the Facilities for maintenance and repairs and other activities necessary to provide safe
and reliable sewer utility service. Evidence of such easements and rights-of-way shall be provided to Company by Developer at the same time as Developer transfers ownership of the Facilities pursuant to 

 paragraph 4, above. At the time of transfer, all easements and rights-of-way shall be free of
physical encroachments, encumbrances or other obstacles. Company shall have no responsibility to obtain or secure on Developer’s behalf any such easements or rights-of-way. 

7.         Reimbursement for Engineering and Other Fees and
Expenses.  Developer shall also reimburse Company for the costs, expenses and fees, including legal fees and costs that are incurred by Company for preparation of this Agreement, for reviewing and approving the plans and
specifications for the Facilities to be constructed by Developer, for inspecting the Facilities during construction and other supervisory activities undertaken by Company, for obtaining any necessary approvals from governmental authorities
(collectively the “Administrative Costs”). For such purpose, at the time of the signing of this Agreement, the Developer will pay an advance to the Company of Seven Thousand Five Hundred Dollars ($7,500). Developer shall provide additional
advances to Company, as may be requested by Company in writing from time-to-time, to reimburse Company for any additional Administrative Costs it incurs. All amounts paid to Company pursuant to this provision shall constitute advances in aid of
construction and be subject to refund pursuant to paragraph 8, below. 
 8.
        Refunds of Advances.  Company shall refund annually to Developer an amount equal to two and one-half percent (2.5%) of the gross annual revenues received by Company from
the provision of sewer utility service to each bona fide customer within the Development. Such refunds shall be paid by Company on or before the first day of August, commencing in the fourth calendar year following the calendar year in which title
to the Facilities is transferred to and accepted by Company and continuing thereafter in each succeeding calendar year for a total of twenty-two (22) years. No interest shall accrue or be payable on the amounts to be refunded hereunder, and any
unpaid balance remaining at the end 

 of such twenty-two year period shall be non-refundable. In no event shall the total amount of the
refunds paid by Company hereunder exceed the total amount of all advances made by Developer hereunder. For the purposes of this provision, the total amount of Developer’s advances shall be equal to Developer’s actual cost of constructing
the Facilities, less the costs of any corrective action as defined in paragraph 3 above, the costs of curing any defects arising during the warranty period, as provided herein, and the costs of any unreasonable overtime incurred in the construction
of the Facilities, above, and the amounts paid by Developer to Company for Administrative Costs pursuant to paragraph 7, above. 

9.         Company’s Obligation to Serve.  Subject to
the condition that Developer fully perform its obligations under this Agreement, Company shall provide sewer utility service to all customers within the Development in accordance with Company’s tariffs and schedule of rates and charges for
service, the rules and regulations of the Commission and other regulatory authorities and requirements. However, Company shall have no obligation to accept and operate the Facilities in the event Developer fails to make any payment provided in this
Agreement, fails to construct and install the Facilities in accordance with Company’s standards and specifications and in accordance with the applicable rules and regulations of ADEQ, the Commission or any other governmental authority having
jurisdiction there over, or otherwise fails to comply with the terms and conditions of this Agreement. Developer acknowledges and understands that Company will not establish service to any customer within the Development until such time as Company
has accepted the transfer of the Facilities, and all amounts that Developer is required to pay Company hereunder have in fact been paid. The foregoing notwithstanding, the Company shall not terminate service to any customer within the Development to
whom service has been 

 properly established as a consequence of any subsequent breach or nonperformance by Developer
hereunder. 
 10.         Liability for Income Taxes.  In the
event it is determined by the Arizona Department of Revenue or Internal Revenue Service that all or any portion of Developer’s advances in aid of construction hereunder constituted taxable income to Company as of the date of this Agreement or
at the time Company actually receives such advances hereunder, Developer will advance funds to Company equal to the income taxes resulting from Developer’s advance hereunder. Developer reserves the right to contest such determination and
Company shall pursue necessary legal remedies or appeals if requested by Developer. Subject to appeal rights, these funds shall be paid to Company within twenty (20) days following notification to Developer that a determination has been made
that any such advances constitute taxable income, whether by virtue of any determination or notification by a governmental authority with taxing authority, amendment to the Internal Revenue Code, any regulation promulgated by the Internal Revenue
Service, or similar change to any statute, rule or regulation relating to this matter, not including any determination by the Arizona Corporation Commission. Such notification shall include documentation reasonably necessary to substantiate the
Company’s liability for income taxes resulting from the Developer’s advances in aid of construction under this Agreement. In the event that additional funds are paid by Developer under this paragraph, such funds shall also constitute
advances in aid of construction. In addition, Developer shall indemnify and hold Company harmless for, from and against any tax related interest, fines and penalties assessed against Company and other costs and expenses incurred by Company solely as
a consequence of late payment by Developer of amounts described above. 

 11.         Notice.
 All notices and other written communications required hereunder shall be sent to the parties as follows: 
  

			
	
	 COMPANY:
  

Hassayampa Utility Company

Attn: Cindy M. Liles, Secretary
 21410 N. l9th Avenue, Suite 201
 Phoenix, Arizona 85027

 
 DEVELOPER:

 

	  
	 	
	  
	 	
	  
	 	
	  
	 	

 Each party shall advise the other party in writing of any change in the manner in which
notice is to be provided hereunder. 
 12.         Governing
Law.  This Agreement, and all rights and obligations hereunder, shall be subject to and governed by the rules and regulations of the Commission relating to domestic sewer utilities and shall be governed by and construed in
accordance with the laws of the State of Arizona. Developer understands and acknowledges that Company’s rates and charges, and other terms and conditions applicable to its provision of utility service, may be modified from time-to-time by order
of the Commission. Company shall provide Developer with copies of such orders that may affect Developer’s rights and obligations hereunder. 

13.         Time is of the Essence.  Time is and shall be
of the essence of this Agreement. 
 14.         Indemnification: Risk of
Loss.  Developer shall indemnify and hold Company harmless for, from and against any and all claims, demands and other liabilities and expenses (including attorneys’ fees and other costs of litigation) arising out of or
otherwise relating to construction of the facilities under this Agreement. Developer’s duty to indemnify 

 Company shall extend to all construction activities undertaken by Developer, its contractors,
subcontractors, agents, and employees hereunder. This indemnity clause shall apply solely and exclusively to the extent that such claim, demand, liability and/or expense is caused by Developer and/or its contractors, subcontractors, agents and/or
employees. This indemnity clause shall not apply to the extent such claim, demand, liability and/or expense is caused by Company, Global Water Resources, LLC and/or their respective agents, partners, members, directors, principals, officers,
employees, representatives, parents, subsidiaries, affiliates, consultants, insurers and/or sureties, and/or any other third party. 

15.         Successors and Assigns.  This Agreement may be
assigned by either of the parties provided that the assignee agrees in writing to be bound by and fully perform all of the assignor’s duties and obligations hereunder. This Agreement and all terms and conditions contained herein shall be
binding upon and shall inure to the benefit of the successors and assigns of the parties. 

16.         Dispute Resolution.  The parties hereto agree that
each will use good faith efforts to resolve, through negotiation, disputes arising hereunder without resorting to mediation, arbitration or litigation. 

17.         Integration: One Agreement.  This Agreement supersedes
all prior agreements, contracts, representations and understandings concerning its subject matter, whether written or oral. 

18.         Attorneys’ Fees.  The prevailing party in any
litigation or other proceeding concerning or related to this Agreement, or the enforcement thereof, shall be entitled to recover its costs and reasonable attorneys’ fees. 

 19.        Authority to
Perform.  Company represents and warrants to Developer that Company has the right, power and authority to enter into and fully perform this Agreement. Developer represents and warrants to Company that Developer has the right, power and
authority to enter into and fully perform this Agreement. 
  

											
	DEVELOPER:	 		 		 	COMPANY:
				
	                               
             	 		 		 	HASSAYAMPA UTILITY COMPANY
	                               
             	 		 		 	an Arizona corporation
					
	By	 	  
	 		 	By	 	  

		 	Its	 	  
	 		 		 	Cindy M. Liles
		 		 		 		 	Its:	 	Secretary

 EXHIBIT “A” 

Legal Description 

 EXHIBIT “B” 

Point(s) of Connection 

 EXHIBIT “C” 

Wastewater Facilities Budget 

(Required to be completed by Developer prior to execution of agreement 

 

									
	  Item	 	     QTY    

 
	 	     UNIT    

 
	 	
      UNIT $      

 
	 	
      TOTAL $      

 

	   8” SDR 35 Sewer Main
	 		 	LF	 		 	
	   10” SDR 35 Sewer Main
	 		 	LF	 		 	
	   4’ Manhole
	 		 	EA	 		 	
	   Sewer Cleanout
	 		 	EA	 		 	
	   4” Sewer Service
	 		 	EA	 		 	
		 		 		 		 	  

					
	   Subtotal
	 		 		 		 	
	   Sales Tax
	 		 		 		 	
		 		 		 		 	  

	   Total
	 		 		 		 	
		 		 		 		 	  

 EXHIBIT G 

INFRASTRUCTURE COORDINATION AND FINANCE AGREEMENT 

INTENTIONALLY OMITTED 

 EXHIBIT H 

INFRASTRUCTURE COORDINATION AND FINANCE AGREEMENT 

INTENTIONALLY OMITTED 

 EXHIBIT I 

INFRASTRUCTURE COORDINATION AND FINANCE AGREEMENT 

WATER UTILITY OF GREATER TONOPAH 

21410 N. 19th Avenue, Suite 201 

Phoenix, Arizona 85027 
 Date

 Landowner Name and Address 

							
	 	  		  		  	
	 	  		  		  	
	 	  		  		  	

 RE:     Will Serve Letter and Notice of Intent to Serve
for                                        
             
 Dear
                            : 

Water Utility of Greater Tonopah, Inc. (“WUGT”) is a private water company authorized by the Arizona Corporation
Commission (“ACC”) to furnish water utility service within portions of Maricopa County. [Insert Name of Landowner] has requested that WUGT provide water utility service to the Belmont Development as set forth on the legal description
attached to this letter as Exhibit A and WUGT has submitted an expansion application to the ACC to include the development. 

Based upon the inclusion of the above referenced land in the certificate of convenience and necessity (CC&N) territory
approved by the ACC, and subject to execution of water line extension agreements by the Landowner and other regulatory approvals including Arizona Department of Water Resources, WUGT has agreed to provide water utility service to the development.
Further, WUGT has agreed to finance and construct facilities and infrastructure necessary to serve the development and to achieve substantial completion of those facilities and infrastructure within 15 months of the issuance of a start work notice
by Landowner, and WUGT has agreed to construct necessary facilities to provide water utility service to phase 1 of the development on or before March 31, 2010. 

 Please feel free to contact me if you have any questions or require any
additional information. We look forward to serving your development. 
 Respectfully yours, 

 
 Cindy M. Liles 

Secretary 

 HASSAYAMPA UTILITY COMPANY 

21410 N. 19th Avenue, Suite 201 

Phoenix, Arizona 85027 
 Date

 Landowner Name and Address 

							
	 	  		  		  	
	 	  		  		  	
	 	  		  		  	

 RE: Will Serve Letter and Notice of Intent to Serve
for                                       
              
 Dear
                            : 

Hassayampa Utility Company (“HUC”) is a private wastewater company authorized by the Arizona Corporation Commission
(“ACC”) to furnish recycled water and wastewater utility service within portions of Maricopa County. [Insert Name of Landowner] has requested that HUC provide recycled water and wastewater utility service to the Belmont Development as set
forth on the legal description attached to this letter as Exhibit A and HUC has submitted an expansion application to the ACC to include the development. 

Based upon the inclusion of the above referenced land in the certificate of convenience and necessity (CC&N) territory
approved by the ACC, execution of wastewater line extension agreements by Landowner and other regulatory approvals including the MAG 208 amendment, HUC has agreed to provide reclaimed water and wastewater utility service to the development. Further,
HUC has agreed to finance and construct facilities and infrastructure necessary to serve the development and to achieve substantial completion of those facilities and infrastructure within 15 months of the issuance of a Start Work Notice by
Landowner, and HUC has agreed to construct necessary facilities to provide wastewater utility service and reclaimed water service to phase 1 of the development on or before March 31, 2010. 

 Please feel free to contact me if you have any questions or require any
additional information. We look forward to serving your development. 
 Respectfully yours, 

 
 Cindy M. Liles 

Secretary 

 EXHIBIT J 

INFRASTRUCTURE COORDINATION AND FINANCE AGREEMENT 

When recorded, return to: 
  

							
	 	  		  		  	
	 	  		  		  	
	 	  		  		  	

  
  

 
 DEED OF TRUST AND ASSIGNMENT
OF RENTS 
  

			
	 DATE:
	  	
		
	 TRUSTOR:
	  	 See Schedule 1 attached hereto and incorporated herein by reference

		
	 Address:
	  	 c/o 5040 East Shea Boulevard, Suite 254, Scottsdale, Arizona 85254

		
	 BENEFICIARY:        
	  	 GLOBAL WATER RESOURCES, LLC, a Delaware limited liability company

		
	 Address:
	  	 21410 North 19th Avenue, Suite 201, Phoenix, Arizona 85027

		
	 TRUSTEE:
	  	 FIRST AMERICAN TITLE INSURANCE COMPANY 

		
	 Address:
	  	 2425 East Camelback Road, Suite 300, Phoenix, Arizona 85016

 PROPERTY in Maricopa County, State of Arizona, described as: 

See Exhibit “A” attached hereto and incorporated herein by reference. 

This Deed of Trust, made on the above date between the Trustor, Trustee and Beneficiary above named, 

WITNESSETH: That Trustor irrevocably grants and conveys to Trustee in Trust, with Power of Sale, the above described real property
together with leases, rents, issues, profits, or income thereof (all of which are hereinafter called “property income”); SUBJECT HOWEVER, to the right, power and authority hereinafter given to and conferred upon Beneficiary to collect and
apply such property income; AND SUBJECT TO existing taxes, assessments, liens, encumbrances, covenants, conditions, restrictions, rights of way and easements of record. 

 FOR THE PURPOSE OF SECURING: 

A. Performance of each agreement of Trustor herein contained. B. Payment of the minimum guaranteed payment as described in section 12 of that
certain Infrastructure Coordination and Finance Agreement (the “Agreement”) dated
[                            ], between Trustor, as Current Owner, and Beneficiary, as Coordinator. 
 TO PROTECT THE SECURITY OF THIS DEED
OF TRUST, TRUSTOR AGREES: 
 1.        To keep said property in good condition and repair; not
to remove or demolish any building thereon; to complete or restore promptly and in good and workmanlike manner any building which may be constructed, damaged, or destroyed thereon, and to pay when due all claims for labor performed and materials
furnished therefor; to comply with all laws affecting said property or requiring any alterations or improvements to be made thereon; not to commit or permit waste thereof; not to commit, suffer, or permit any act upon said property in violation of
law; and do all other acts which from the character or use of said property may be reasonably necessary, the specific enumerations herein not excluding the general. 

2.        To appear in and defend any action or proceeding purporting to affect the security hereof or
the rights or powers of Beneficiary or Trustee; and to pay all costs and expenses of Beneficiary and Trustee, including cost of evidence of title and attorney’s fees in a reasonable sum, in any such action or proceeding in which Beneficiary or
Trustee may appear or be named, and in any suit brought by Beneficiary or Trustee to foreclose this Deed of Trust. 

3.        To pay before delinquent, all taxes and assessments affecting said property (which are not
Beneficiary’s obligation); when due, all encumbrances, charges and liens, with interest, on said property or any part thereof, which appear to be prior or superior hereto; all costs, fees and expenses of the Trust, including, without limiting
the generality of the foregoing, the fees of Trustee for issuance of any Deed of Partial Release and Partial Reconveyance, or Deed of Release and Full Reconveyance, and all lawful charges, costs and expenses in the event of reinstatement of,
following default in, this Deed of Trust or the obligations secured hereby. 
 Should Trustor fail to make any payment or to do any act as
herein provided, then Beneficiary or Trustee, but without obligation so to do and without notice to or demand upon Trustor and without releasing Trustor from any obligation hereof, may make or do the same in such manner and to such extent as either
may deem necessary to protect the security hereof, Beneficiary or Trustee being authorized to enter upon said property for such purposes; appear in and defend any action or proceeding purporting to affect the security hereof or the rights or powers
of Beneficiary or Trustee; pay, purchase, contest, or compromise any encumbrance, charge, or lien which in the judgment of either appears to be prior or superior hereto; and, in exercising any such power, pay necessary expenses, employ counsel and
pay his reasonable fees. 
 4.         To pay immediately and without demand all sums expended by
Beneficiary or Trustee pursuant to the provisions hereof, together with interest from date of expenditure at the rate of twelve percent (12%) per annum (but in no event greater than the maximum rate allowed by law). Any amounts so paid by
Beneficiary or Trustee shall become a part of the debt secured by 

 this Deed of Trust and a lien on said premises or immediately due and payable at option of
Beneficiary or Trustee. 
 IT IS MUTUALLY AGREED: 

5.        That any award of damages in connection with any condemnation or any such taking, or for
injury to the property by reason of public use, or for damages for private trespass or injury thereto, is assigned and shall be paid to Beneficiary as further security for all obligations secured hereby (reserving unto the Trustor, however, the
right to sue therefor and the ownership thereof subject to this Deed of Trust), and upon receipt of such moneys Beneficiary shall hold the same as such further security. 

6.        That time is of the essence of this Deed of Trust, and that by accepting payment of any sum
secured hereby after its due date, Beneficiary does not waive his right either to require prompt payment when due of all other sums so secured or to declare default for failure so to pay. 

7.        That at any time or from time to time, and without notice, upon written request of
Beneficiary and presentation of this Deed of Trust, and without liability therefor, and without affecting the personal liability of any person for payment of the indebtedness secured hereby, and without affecting the security hereof for the full
amount secured hereby on all property remaining subject hereto, and without the necessity that any sum representing the value or any portion thereof of the property affected by the Trustee’s action be credited on the indebtedness, the Trustee
may: (a) release and reconvey all or any part of said property; (b) consent to the making and recording, or either, of any map or plat of the property or any part thereon; (c) join in granting any easement thereon; (d) join in or
consent to any extension agreement or any agreement subordinating the lien, encumbrance, or charge hereof, (e). Furthermore, upon the request of Trustor, when not in default hereunder, Trustee and Beneficiary shall consent to and or join/in the:
(a) filing of applications to governmental bodies and public utilities relating in any manner to the development of said property, (b) granting of easements to public utilities or governmental bodies in connection with the development of
said property, and if requested by any public utility or governmental body, Trustee shall release and reconvey such possessory rights from the effect of this Deed of Trust. and (c) the creation and recordation of (and the dedications shown on)
maps, covenants, conditions, restrictions and documents of like effect pertaining to said property. 

8.        That upon written request of Beneficiary stating satisfaction of the applicable conditions
for release set forth in section 13 of the Agreement, and upon surrender of this Deed of Trust to Trustee for cancellation and retention, and upon payment of its fees, Trustee shall release and reconvey, without covenant or warranty, express or
implied, the property then held hereunder. The recitals in such reconveyance of any matters or facts shall be conclusive proof of the truthfulness thereof. The Grantee in such reconveyance may be described as “the person or persons legally
entitled thereto.” Notwithstanding anything herein to the contrary, upon delivery by Trustor to Trustee of a fully executed Request for Partial Release and Partial Reconveyance in the form of Exhibit “B” attached hereto (the
“Partial Release”) and the satisfaction of the applicable conditions for release set forth in section 13 of the Agreement, Trustee shall release and reconvey, without covenant or warranty, express or implied, the properly described in such
Partial Release. 

 9.        That as additional security, Trustor hereby
gives to and confers upon Beneficiary the right, power and authority, during continuance of this Trust, to collect the property income, reserving to Trustor the right, prior to any default by Trustor in payment of any indebtedness secured hereby or
in performance of any agreement hereunder, to collect and retain such property income as it becomes due and payable. Upon any such default, Beneficiary may at any time, without notice, either in person, by agent, or by a receiver to be appointed by
a court, and without regard to the adequacy of any security for the indebtedness hereby secured, enter upon and take possession of said property or any part thereof, in his own name sue for or otherwise collect such property income, including that
past due and unpaid, and apply the same, less costs and expenses of operation and collection, including reasonable attorney’s fees, upon any indebtedness secured hereby, and in such order as Beneficiary may determine. The entering upon and
taking possession of said property, the collection of such property income, and the application thereof as aforesaid, shall not cure or waive any default or notice of Trustee’s sale hereunder or invalidate any act done pursuant to said notice.

 10.        That upon default by Trustor in the payment of any indebtedness secured hereby or in
performance of any agreement hereunder, Beneficiary may declare all sums secured hereby immediately due and payable by delivery to Trustee of written notice thereof, setting forth the nature thereof, and of election to cause to be sold said property
under this Deed of Trust. Beneficiary also shall deposit with Trustee this Deed of Trust and all documents evidencing expenditures secured hereby. 

Trustee shall record and give notice of Trustee’s sale in the manner required by law, and after the lapse of such time as may then be
required by law, Trustee shall sell, in the manner required by law, said property at public auction at the time and place fixed by it in said notice of Trustee’s sale to the highest bidder for cash in lawful money of the United States, payable
at time of sale. Trustee may postpone or continue the sale by giving notice of postponement or continuance by public declaration at the time and place last appointed for the sale. Trustee shall deliver to such purchaser its Deed conveying the
property so sold, but without any covenant or warranty, expressed or implied. Any persons, including Trustor, Trustee, or Beneficiary, may purchase at such sale. 

After deducting all costs, fees, and expenses of Trustee and of this Trust, including cost of evidence of title in connection with sale and
reasonable attorney’s fees, Trustee shall apply the proceeds of sale to payment of: All sums then secured hereby and all other sums due under the terms hereof, with accrued interest; and the remainder, if any, to the person or persons legally
entitled thereto, or as provided in A.R.S. § 33-812. Beneficiary may foreclose this Deed of Trust as a realty mortgage. 
 If the
property under this Deed of Trust is located in more than one county, regardless of whether the property is contiguous or not, the Trustee may sell all of said property in any one of the counties in which part of said property is located; and,
unless Trustee receives contrary written instructions from the Beneficiary or Trustor, Trustee may sell all of said property either in parcels or in whole. 

If the indebtedness secured hereby is secured by one or more other Deeds of Trust, then upon default of Trustor in the payment of said
indebtedness or performance of any other agreement 

 secured hereby, the Trustee may sell the property subject to the Deed of Trust and to any other
Deeds of Trust securing said indebtedness at Trustee’s sale conducted serially. In the absence of written instructions from the Beneficiary to the contrary, the Trustee may, in its sole discretion, designate the order in which property subject
to the various Deeds of Trust is to be sold. 
 11.        That Beneficiary may appoint a successor
Trustee in the manner prescribed by law. A successor Trustee herein shall, without conveyance from the predecessor Trustee, succeed to all the predecessor’s title, estate, rights, powers and duties. Trustee may resign by mailing or delivering
notice thereof to Beneficiary and Trustor. 
 12.        That this Deed of Trust applies to, inures
to the benefit of, and binds all parties hereto, their heirs, legatees, devisees, administrators, executors, successors and assigns. In this Deed of Trust, whenever the context so requires, the masculine gender includes the feminine and neuter, and
the singular number includes the plural. 
 13.        The Trustor/Mortgagor hereby waives, releases
and discharges any homestead exemption claimed or declared against the property. 
 Beneficiary named on this Deed of Trust shall be
subrogated to the lien, notwithstanding its release of record of any prior mortgage, Trust Deed or other encumbrance paid or discharged from the proceeds of the indebtedness secured hereby or from any advance made by the Beneficiary. This right of
subrogation shall not be affected by the creation or declaration of homestead on the property. 

14.        That Trustee accepts this Trust when this Deed of Trust, duly executed and acknowledged, is
made a public record as provided by law. Trustee is not obligated to notify any party hereto of pending sale under any other Deed of Trust or of any action or proceeding in which Trustor, Beneficiary or Trustee shall be a party unless brought by
Trustee. 
 [REMAINDER OF PAGE LEFT INTENTIONALLY BLANK] 

 The undersigned Trustor requests that a copy of any notice of Trustee’s sale hereunder be
mailed to him at his address set forth herein. 
  

			
	 BELMONT LKY 20K LIMITED

  PARTNERSHIP L.L.L.P., an Arizona

  limited liability limited partnership
  

  By LKY REAL ESTATE BELMONT, L.L.C.,

    an Arizona limited liability company,

    general partner

	
	
    By                         
                                         
  

		 	             Larry K. Yount

	
	

			
	 Percentage Interest: 48.42520853742
	  	           Its Manager

  

			
	STATE OF ARIZONA      	  	 )

		  	 ) ss.

	County of Maricopa	  	 )

 The foregoing document was acknowledged before me this
         day of                         ,
20    , by Larry K. Yount, as Manager of LKY REAL ESTATE BELMONT, L.L.C., an Arizona limited liability company, the general partner of BELMONT LKY 20K LIMITED PARTNERSHIP L.L.L.P., an Arizona limited liability limited
partnership, on behalf of the partnership. 
  

	
	  

	Notary Public

  

			
	 My Commission Expires:  
	  	
	 	  	

			
		  	 BOA SORTE LIMITED PARTNERSHIP,
   an
Arizona limited partnership

		
		  	   By BOA SORTE LLC, an Arizona limited

    liability company, general partner

		
		  	
        By                     
                                         
                 

		
	 Percentage Interest: 8.07085239062
	  	
        Its                    
                                         
                   

 

			
	STATE OF ARIZONA      	  	 )

		  	 ) ss.

	County of Maricopa	  	 )

 The foregoing document was acknowledged before me this
         day of                     , 20    , by
                            , as
                                 of BOA SORTE LLC, an Arizona limited liability
company, the general partner of BOA SORTE LIMITED PARTNERSHIP, an Arizona limited partnership, on behalf of the partnership. 

	
	  

	Notary Public

  

			
	 My Commission Expires:  
	  	
	 	  	

			
		  	 VIEL GLUCK LIMITED PARTNERSHIP,
   an
Arizona limited partnership

		
		  	   By VIEL GLUCK LLC, an Arizona limited

    liability company, general partner

		
		  	
  By                           
                                         
                  

		
	 Percentage Interest: 8.07085239062
	  	
    Its                        
                                         
                   

 

			
	STATE OF ARIZONA      	  	 )

		  	 ) ss.

	County of Maricopa	  	 )

 The foregoing document was acknowledged before me this
         day of                     , 20    , by
                            , as
                                 of VIEL GLUCK LLC, an Arizona limited liability
company, the general partner of VIEL GLUCK LIMITED PARTNERSHIP, an Arizona limited partnership, on behalf of the partnership. 
  

	
	  

	Notary Public

  

			
	 My Commission Expires:  
	  	
	 	  	

			
		  	 BEN FATTO LIMITED PARTNERSHIP,
   an
Arizona limited partnership

		
		  	   By BEN FATTO LLC, an Arizona limited

      liability company, general partner

		
		  	
  By                           
                                         
                  

		
	Percentage Interest: 8.07085240085	  	
    Its                        
                                         
                   

 

			
	STATE OF ARIZONA      	  	 )

		  	 ) ss.

	County of Maricopa	  	 )

 The foregoing document was acknowledged before me this
         day of                     , 20    , by
                            , as
                                 of BEN FATTO LLC, an Arizona limited liability
company, the general partner of BEN FATTO LIMITED PARTNERSHIP, an Arizona limited partnership, on behalf of the partnership. 
  

	
	  

	Notary Public

  

			
	 My Commission Expires:  
	  	
	 	  	

			
		  	 SMT INVESTORS LIMITED

  PARTNERSHIP,
   an Arizona limited
partnership

		
		  	
  By                           
                                         
                  

		
	Percentage Interest: 7.58768562251	  	
    Its                        
                                         
                   

 

			
	STATE OF ARIZONA      	  	 )

		  	 ) ss.

	County of Maricopa	  	 )

 The foregoing document was acknowledged before me this
         day of                     , 20    , by
                            , its
                         of SMT INVESTORS LIMITED PARTNERSHIP, an Arizona limited partnership, on behalf of the
partnership. 
  

	
	  

	Notary Public

  

			
	 My Commission Expires:  
	  	
	 	  	

			
		  	 CARDON FAMILY, L.L.C.,
   an Arizona
limited liability company

		
		  	
  By                           
                                         
                  

		
	Percentage Interest: 4.03544269964	  	
    Its                        
                                         
                   

 

			
	STATE OF ARIZONA      	  	 )

		  	 ) ss.

	County of Maricopa	  	 )

 The foregoing document was acknowledged before me this
             day of                     ,
20    , by                             ,
as                          of CARDON FAMILY, L.L.C., an Arizona limited liability company, on behalf of the company.

  

	
	  

	Notary Public

  

			
	 My Commission Expires:  
	  	
	 	  	

			
		  	 FAR MAREL, L.L.C.,
   an Arizona
limited liability company

		
		  	
  By                           
                                         
                  

		
	Percentage Interest 4.03544148902	  	
    Its                        
                                         
                   

 

			
	STATE OF ARIZONA      	  	 )

		  	 ) ss.

	County of Maricopa	  	 )

 The foregoing document was acknowledged before me this
             day of                     ,
20    , by                             ,
as                          of FAR MAREL, L.L.C., an Arizona limited liability company, on behalf of the company.

  

	
	  

	Notary Public

  

			
	 My Commission Expires:  
	  	
	 	  	

			
		  	 MT. OLYMPUS INVESTMENTS, L.L.C.,
   an
Arizona limited liability company

		
		  	
  By                           
                                         
                  

		
	Percentage Interest: 4.03544148901	  	
    Its                        
                                         
                   

 

			
		
	STATE OF ARIZONA      	  	 )

		  	 ) ss.

	County of Maricopa	  	 )

 The foregoing document was acknowledged before me this
             day of                     ,
20    , by                             ,
as                          of MT. OLYMPUS INVESTMENTS, L.L.C., an Arizona limited liability company, on behalf of
the company. 
  

	
	  

	Notary Public

  

			
	 My Commission Expires:  
	  	
	 	  	

			
		  	 GOODWIN CONSULTANTS, L.L.C.,
   an
Arizona limited liability company

		
		  	
  By                           
                                         
                  

		
	Percentage Interest: 3.14958292516	  	
    Its                        
                                         
                   

 

			
		
	STATE OF ARIZONA      	  	 )

		  	 ) ss.

	County of Maricopa	  	 )

 The foregoing document was acknowledged before me this
             day of                     ,
20    , by                             ,
as                          of GOODWIN CONSULTANTS, L.L.C., an Arizona limited liability company, on behalf of the
limited liability company. 
  

	
	  

	Notary Public

  

			
	 My Commission Expires:  
	  	
	 	  	

			
		  	 NEAL MANAGEMENT, L.L.C.,
   an Arizona
limited liability company

		
		  	
  By                           
                                         
                  

		
	Percentage Interest: 2.92011839141	  	
    Its                        
                                         
                   

 

			
		
	STATE OF ARIZONA      	  	 )

		  	 ) ss.

	County of Maricopa	  	 )

 The foregoing document was acknowledged before me this
             day of                     ,
20    , by                             ,
as                          of NEAL MANAGEMENT, L.L.C., an Arizona limited liability company, on behalf of the
company. 
  

	
	  

	Notary Public

  

			
	 My Commission Expires:  
	  	
	 	  	

			
		  	ANC IRREVOCABLE TRUST DATED             OCTOBER 18, 2004
		
		  	
  By                           
                                         
                  

		  	             Michael T. Cowley

		
	Percentage Interest: 1.59852166374	  	     Its Trustee

 

			
		
	STATE OF ARIZONA      	  	 )

		  	 ) ss.

	County of Maricopa	  	 )

 The foregoing document was acknowledged before me this
             day of                     ,
20    , by Michael T. Cowley, as Trustee of the ANC IRREVOCABLE TRUST DATED OCTOBER 18, 2004, on behalf of the trust. 
  

	
	  

	Notary Public

  

			
	 My Commission Expires:  
	  	
	 	  	

 Schedule 1 
  

			
	 Trustor:        
	  	 Belmont LKY 20K Limited Partnership L.L.L.P., as to an undivided 48.42520853742% interest

 
 Boa Sorte Limited Partnership, as to an undivided
8.07085239062% interest
  
 Viel Gluck Limited Partnership,
as to an undivided 8.07085239062% interest
  
 Ben Fatto
Limited Partnership, as to an undivided 8.07085240085% interest
  

SMT Investors Limited Partnership, as to an undivided 7.58768562251% interest

 
 Cardon Family, L.L.C., as to an undivided 4.03544269964%
interest
  
 Far Marel, L.L.C., as to an undivided
4.03544148902% interest
  
 Mt. Olympus Investments, L.L.C.,
as to an undivided 4.03544148901% interest
  
 Goodwin
Consultants, L.L.C., as to an undivided 3.14958292516% interest
 Neal Management, L.L.C., as to an undivided 2.92011839141% interest

Michael T. Cowley, as Trustee of the ANC Irrevocable Trust Dated October 18, 2004, as to an

    undivided 1.59852166374% interest

 Exhibit “A” 

[Attach Legal Description of the 640 Acres] 

 Exhibit “B” 

REQUEST FOR DEED OF PARTIAL RELEASE AND PARTIAL 

RECONVEYANCE 
  

 
 TO:     First American title
Insurance Company, a California corporation, Trustee: 
 The undersigned is the legal owner of the indebtedness, secured by
the Deed of Trust, recorded on                     , 200         , at Recording No.
                    , in the office of the County Recorder of Maricopa County, Arizona. 

You are hereby requested, in accordance with the terms of said Deed of Trust, to release and reconvey, without covenant or
warranty, express or implied, to “the person or persons legally entitled thereto” all right, title and interest now held by you thereunder in and to that portion of the property described in said Deed of Trust, situated in Maricopa County,
Arizona, as follows: 
 See Legal Description attached as Exhibit “A” hereto 

Dated:                     ,
200   
  

			
	 GLOBAL WATER RESOURCES, LLC, a

	   Delaware limited liability company

	
	
  By                           
                                         
  

	
	
   Its                         
                                         
    

 Exhibit “A” 

to 
 Request for Deed of Partial
Release and Partial Reconveyance 
 [Attach Legal Description] 

 EXHIBIT K 

INFRASTRUCTURE COORDINATION AND FINANCE AGREEMENT 

The West half and the Northeast quarter of Section 13, Township 2 North, Range 6 West of the Gila and Salt River Base and
Meridian, Maricopa County, Arizona; 
 The Northeast quarter of Section 24, Township 2 North, Range 6 West of the Gila
and Salt River Base and Meridian, Maricopa County, Arizona. 

 EXHIBIT L 

For a copy of this Exhibit contact Global Water Resources, LLC, 21410 North 19th Avenue,
Suite 201, Phoenix, Arizona 85027 or LKY Real Estate Belmont, LLC, 5040 East Shea, Blvd., #254, Scottsdale, Arizona 85254. 

 EXHIBIT M 

For a copy of this Exhibit contact Global Water Resources, LLC, 21410 North 19th Avenue,
Suite 201, Phoenix, Arizona 85027 or LKY Real Estate Belmont, LLC, 5040 East Shea, Blvd., #254, Scottsdale, Arizona 85254. 

 Schedule 1 

CURRENT OWNERS 
 Belmont LKY 20K
Limited Partnership L.L.L.P., as to an undivided 48.42520853742% interest 
 Boa Sorte Limited Partnership, as to an undivided
8.07085239062% interest 
 Viel Gluck Limited Partnership, as to an undivided 8.07085239062% interest 

Ben Fatto Limited Partnership, as to an undivided 8.07085240085% interest 

SMT Investors Limited Partnership, as to an undivided 7.58768562251% interest 

Cardon Family, L.L.C., as to an undivided 4.03544269964% interest 

Far Marel, L.L.C., as to an undivided 4.03544148902% interest 

Mt. Olympus Investments, L.L.C., as to an undivided 4.03544148901% interest 

Goodwin Consultants, L.L.C., as to an undivided 3.14958292516% interest 

Neal Management, L.L.C., as to an undivided 2.92011839141% interest 

Michael T. Cowley, as Trustee of the ANC Irrevocable Trust Dated October 18, 2004, as to an undivided 

    1.59852166374% interest 

 

 
  

			
	 111 South 3rd Avenue
 Phoenix, Arizona
85003-2281
 Phone: (602) 506-3535
 Fax:
(602) 506-3273
	  	January 15th, 2008                

 Dear Valued Customer: 

As we work in an ever changing industry, we strive to make changes to our daily business practice by working closely
with you, the customers. In an effort to “go green” our office has come up with many different ideas we feel would benefit your office as well as ours. 

This past year ARS 11-461c was signed which made digital recording available to any “trusted submitter” who
signs a Memorandum of Understanding. Although many of our customers changed their way of doing business at that time, there are many who have not. 

At this point we would like your opinion on making document retrieval easier for you. Our office is considering
returning recorded documents electronically after recording and imaging are complete. This would mean that you would continue to bring or mail in paper documents however, instead of waiting 4 – 6 weeks for the original to be mailed back to you,
a copy would be sent to you electronically. As a courtesy to our customers we would hold the original paper document in our office for you to pick up. lf the original documents are not picked up in the number of days allotted, they will be
destroyed. 
 There would be numerous advantages to this; below I have listed a few. 

 

	 	•	 	 Save Money – Eliminates the $1.00 return postage charge per document 
	 

  

	 	•	 	 Quicker Turn Around – Recorded document is electronically sent to the designated email address once it has been imaged – No more waiting 4
to 6 weeks 
	 

  

	 	•	 	 No Chance The Original Will Be Lost In The Mail 
	 

  

	 	•	 	 Space Saver – cuts down on the amount of paper documents to be stored in your office 
	 

 If you are interested in receiving your recorded documents electronically,
please email me beckert@risc.maricopa.gov. I would also like to hear your feedback; please contact me with your questions, suggestions, comments and /or concerns. 

Sincerely, 

Barb Eckert 

Team Leader 

 

 

			
	 111 South 3rd Avenue

Phoenix, Arizona 85003-2281

Phone: (602) 506-3535

Fax: (602) 506-3273
	  	DIGITAL RECORDING NEWS

  
 Great news, Arizona
Revised Statute 11-461, C., has been amended and now opens up Digital Recording to “Trusted Submitters”. This amendment goes into effect on September 19, 2007. 

A Trusted Submitter is defined as; a person or entity that has entered into a Memorandum of Understanding
regarding digitized recording with the county recorder in the county in which the digitized recording is to be submitted. 

Digital Recording continues to be very popular and an efficient means to record documents. This statute change was
enacted because of the strong interest in electronic recording. Many customers have wanted the ability to record in this manner but could not do so without this statute change. 

What does this mean to you? If you are a current account customer and were not previously eligible to perform digital
recording, you will need to complete a Memorandum of Understanding and an account update form so that we have the most current contact information. Both of these forms can be obtained when you log into your account and click on the account update
form link. If you are not currently an account customer, in order to participate in the digital recording program you must first open an account with us. Please visit this web site http://recorder.maricopa.gov/digitalrecording.aspx and then
complete the necessary forms, which are the Account Application, Commercial Purpose and Addendum to Commercial Purpose, Memorandum of Understanding and Access to Online Copies. 

If you have questions regarding the account applications, please contact Barbie Eckert at
beckert@risc.maricopa.gov or Marie Freer at mfreer@risc.maricopa.gov. Once the account is established, Barbie or Marie will provide you with instructions on how to proceed with digital recording. 

Current and new account customers that are interested in digital recording will receive training and will be able to
test in the program for as little as a day or a week(s) before recording ‘‘live” documents. This program benefits the customer and the Recorder’s Office and we want you to feel confident and comfortable with the program and its
features before you actually record your documents in production. 
 We look forward to working with you on this new adventure. 

Sincerely, 

Maricopa County Recorder’s OfficeEX-10.11.1

 Exhibit 10.11.1 

EXECUTION COPY 
  

 
  

LOAN AGREEMENT 
 between

 THE INDUSTRIAL DEVELOPMENT AUTHORITY OF 

THE COUNTY OF PIMA, 

as Issuer 
 and 

U.S. BANK NATIONAL ASSOCIATION, 

as Trustee 
 and 

GLOBAL WATER RESOURCES, LLC, 

as Borrower 
  

 
 $36,495,000 

The Industrial Development Authority 

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

Series 2006 
  

 
 Dated as of
December 1, 2006 
  
  

Pursuant to the Indenture (defined herein), the Issuer has transferred in trust, granted a security interest in and assigned to the Trustee
for the benefit of the Holders from time to time of the Bonds, all right, title, and interest of the Issuer in this Loan Agreement except for deposits to the Rebate Fund (defined herein) and the Unassigned Issuer’s Rights (defined herein). 

 
  

 

 TABLE OF CONTENTS 

							
			
		  		  	 	Page	  
	
	 ARTICLE I

DEFINITIONS
	   

  

			
	 Section 1.1.
	  	 Use of Defined Terms
	  	 	1	  
			
	 Section 1.2.
	  	 Definitions
	  	 	1	  
			
	 Section 1.3.
	  	 Interpretation
	  	 	9	  
			
	 Section 1.4.
	  	 Captions and Headings
	  	 	9	  
	
	 ARTICLE II

REPRESENTATIONS
	   

  

			
	 Section 2.1.
	  	 Representations of the Issuer
	  	 	9	  
			
	 Section 2.2.
	  	 Representations and Covenants of the Company
	  	 	10	  
	
	 ARTICLE III

COMPLETION OF THE PROJECT; ISSUANCE OF THE BONDS
	   

  

			
	 Section 3.1.
	  	 Acquisition, Construction, Installation, Equipment and Improvement
	  	 	15	  
			
	 Section 3.2.
	  	 Plans and Specifications
	  	 	15	  
			
	 Section 3.3.
	  	 Issuance of the Bonds; Application of Proceeds
	  	 	15	  
			
	 Section 3.4.
	  	 Disbursements from the Project Fund
	  	 	16	  
			
	 Section 3.5.
	  	 Company Required to Pay Costs in Event Project Fund Insufficient
	  	 	18	  
			
	 Section 3.6.
	  	 Completion Date
	  	 	18	  
			
	 Section 3.7.
	  	 Investment of Fund Moneys
	  	 	18	  
			
	 Section 3.8.
	  	 Rebate Fund
	  	 	19	  
	
	 ARTICLE IV

LOAN BY ISSUER; REPAYMENT OF THE LOAN; LOAN PAYMENTS AND

ADDITIONAL PAYMENTS
	   
   

  

			
	 Section 4.1.
	  	 Loan Repayment; Delivery of Notes
	  	 	19	  
			
	 Section 4.2.
	  	 Additional Payments
	  	 	21	  
			
	 Section 4.3.
	  	 Place of Payments
	  	 	21	  
			
	 Section 4.4.
	  	 Obligations Unconditional
	  	 	22	  
			
	 Section 4.5.
	  	 Assignment of Agreement and Revenues; Approval of Indenture
	  	 	22	  
			
	 Section 4.6.
	  	 Application of Certain Moneys
	  	 	22	  
			
	 Section 4.7.
	  	 Reserved
	  	 	22	  
			
	 Section 4.8.
	  	 Limits on Incurrence of Indebtedness
	  	 	22	  

							
	 ARTICLE V

ADDITIONAL AGREEMENTS AND COVENANTS
	   
   

			
	 Section 5.1.
	  	 Right of Inspection
	  	 	25	  
			
	 Section 5.2.
	  	 Lease or Grant of Use by Company
	  	 	25	  
			
	 Section 5.3.
	  	 Company to Maintain Its Existence; Sales of Assets or Mergers
	  	 	25	  
			
	 Section 5.4.
	  	 Books and Records; Financial Statements
	  	 	26	  
			
	 Section 5.5.
	  	 Limitations on Creation of Liens
	  	 	26	  
			
	 Section 5.6.
	  	 Annual Certificate of Company
	  	 	28	  
			
	 Section 5.7.
	  	 Exemption from Federal Income Taxation
	  	 	28	  
			
	 Section 5.8.
	  	 Calculations and Payments of Rebate to the United States
	  	 	28	  
			
	 Section 5.9.
	  	 Information to Holders and Other
	  	 	29	  
			
	 Section 5.10.
	  	 Reserved
	  	 	29	  
			
	 Section 5.11.
	  	 Rate Covenant
	  	 	29	  
			
	 Section 5.12.
	  	 Annual Certification
	  	 	29	  
	
	 ARTICLE VI

REDEMPTION OF BONDS
	   
   

			
	 Section 6.1.
	  	 Optional Redemption
	  	 	30	  
			
	 Section 6.2.
	  	 Extraordinary Optional Redemption
	  	 	30	  
			
	 Section 6.3.
	  	 Mandatory Redemption in Event of Inclusion in Gross Income of Interest on Bonds
	  	 	32	  
			
	 Section 6.4.
	  	 Other Mandatory Redemption
	  	 	32	  
			
	 Section 6.5.
	  	 Actions by Issuer
	  	 	32	  
	
	 ARTICLE VII

EVENTS OF DEFAULT AND REMEDIES
	   

  

			
	 Section 7.1.
	  	 Events of Default
	  	 	32	  
			
	 Section 7.2.
	  	 Remedies on Default
	  	 	34	  
			
	 Section 7.3.
	  	 No Remedy Exclusive
	  	 	35	  
			
	 Section 7.4.
	  	 Agreement to Pay Attorneys’ Fees and Expenses
	  	 	35	  
			
	 Section 7.5.
	  	 No Waiver
	  	 	35	  
			
	 Section 7.6.
	  	 Notice of Default
	  	 	36	  
			
	 Section 7.7.
	  	 Remedies Subject to Provisions of Law
	  	 	36	  

  
 ii 

							
	 ARTICLE VIII

MISCELLANEOUS
	   

  

			
	 Section 8.1.
	  	 Reliance by Issuer on Facts or Certificates, Limitations of Actions
	  	 	36	  
			
	 Section 8.2.
	  	 Indemnity for and Immunity of Issuer’s and Trustee’s Directors, Officers, Counsel, Financial Advisors, and Agents
	  	 	36	  
			
	 Section 8.3.
	  	 No Pecuniary Liability of the Issuer
	  	 	40	  
			
	 Section 8.4.
	  	 Term of Agreement
	  	 	40	  
			
	 Section 8.5.
	  	 Amounts Remaining in Funds
	  	 	40	  
			
	 Section 8.6.
	  	 Notices
	  	 	41	  
			
	 Section 8.7.
	  	 Binding Effect
	  	 	41	  
			
	 Section 8.8.
	  	 Amendments and Supplements
	  	 	41	  
			
	 Section 8.9.
	  	 Execution Counterparts
	  	 	41	  
			
	 Section 8.10.
	  	 Severability
	  	 	41	  
			
	 Section 8.11.
	  	 Governing Law
	  	 	42	  
			
	 Section 8.12.
	  	 Nature of Company’s Obligations
	  	 	42	  
			
	 Section 8.13.
	  	 Trustee’s Obligation under Indenture
	  	 	42	  
			
	 Section 8.14.
	  	 Conflict of Interest
	  	 	42	  
			
	 Section 8.15.
	  	 Payments Due on Saturdays, Sundays and Holidays
	  	 	43	  
			
	 EXHIBIT A
	  	 PROJECT NOTE
	  			
	 EXHIBIT B
	  	 PALO VERDE UTILITIES COMPANY PROJECT FACILITIES
	  			
	 EXHIBIT C
	  	 SANTA CRUZ WATER COMPANY PROJECT FACILITIES
	  			
	 EXHIBIT D
	  	 FORM OF DISBURSEMENT REQUEST
	  			

  
 iii 

 LOAN AGREEMENT 

THIS LOAN AGREEMENT made and entered into as of December 1,2006, between THE INDUSTRIAL DEVELOPMENT AUTHORITY OF THE
COUNTY OF PIMA (the “Issuer”), a nonprofit corporation designated a political subdivision of the State incorporated, pursuant to the provisions of the Constitution of the State and under Title 35, Chapter 5, Arizona Revised Statutes,
as amended, U.S. BANK NATIONAL ASSOCIATION, a national banking association (the “Trustee”), and GLOBAL WATER RESOURCES, LLC, 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 (the “Company”), under the following circumstances summarized in the following recitals (the capitalized terms not defined in the recitals being used therein as defined in Article I
hereof): 
 A. Pursuant to Title 35, Chapter 5 of the Arizona Revised Statutes, as amended, the Issuer has determined to
issue, sell and deliver the Bonds and to loan the proceeds derived from the sale thereof to the Company to assist in the financing of the Project to be undertaken by the Santa Cruz Water Company and Palo Verde Utilities Company, respectively. 

B. The Company and the Issuer each have full right and lawful authority to enter into this Agreement and to perform and
observe the provisions hereof on their respective parts to be performed and observed. 
 NOW THEREFORE, in consideration of
the premises and the mutual representations and agreements hereinafter contained, the Issuer and the Company agree as follows (provided that any obligation of the Issuer created by or arising out of this Agreement shall never constitute a general
debt of the Issuer or give rise to any pecuniary liability of the Issuer but shall be payable solely out of Revenues): 
 ARTICLE I

 DEFINITIONS 

Section 1.1. Use of Defined Terms. In addition to the words and terms defined elsewhere in this Agreement or by
reference to another document, the words and terms set forth in Section 1.2 hereof shall have the meanings set forth therein unless the context or use clearly indicates another meaning or intent. Such definitions shall be equally applicable to
both the singular and plural forms of any of the words and terms defined therein. 
 Section 1.2. Definitions.
As used herein: 
 “Act” means Title 35, Chapter 5, Arizona Revised Statutes, as amended. 

“Additional Bonds” means the Additional Bonds as defined in the Indenture. 

“Additional Notes” means any nonnegotiable promissory note or notes, in addition to the
Project Note, delivered by the Company to the Trustee in connection with the issuance of Additional Bonds, as provided herein. 

 “Additional Payments” means the amounts required to be
paid by the Company pursuant to the provisions of Section 4.2 hereof. 
 “Agreement” means this
Loan Agreement as amended or supplemented from time to time, as permitted herein. 
 “Authorized Company
Representative” means the person at the time designated to act on behalf of the Company by written certificate furnished to the Issuer and the Trustee, containing the specimen signature of that person and signed on behalf of the Company
by its President or any Vice-President. That certificate may designate an alternate or alternates. In the event that all persons so designated become unavailable or unable to act and the Company fails to designate a replacement within ten days after
such unavailability or inability to act, the Trustee may appoint an interim Authorized Company Representative until such time as the Company designates that person. 

“Bond Counsel” means Kutak Rock LLP or another nationally recognized bond counsel firm designated by
the Company and not unacceptable to the Issuer. 
 “Bond Fund” means the Bond Fund created in the
Indenture. 
 “Bond Legislation” means (a) when used with reference to the Bonds, the
resolutions providing for their issuance and approving this Agreement, the Indenture and related matters; (b) when used with reference to an issue of Additional Bonds, the resolutions providing for the issuance of the Bonds, to the extent
applicable, and the resolution providing for the issuance of the Additional Bonds and approving any amendment to this Agreement, any Supplemental Indenture (as such term is defined in the Indenture) and related matters; and (c) when used with
reference to Bonds when Additional Bonds are outstanding, the resolutions providing for the issuance of the Bonds and the resolution providing for the issuance of the then outstanding and the then to be issued Additional Bonds; in each case as
amended or supplemented from time to time. 
 “Bond Reserve Fund” means the Bond Reserve Fund
created in the Indenture. 
 “Bond Reserve Requirement” means the Bond Reserve Requirement as
defined in the Indenture. 
 “Bond Service Charges” means, for any period or payable at any time,
the principal and purchase price of and interest and any premium due on the Bonds for that period or payable at that time whether due at maturity or upon acceleration, redemption or purchase. 

“Bonds” means the $36,495,000 Water and Wastewater Revenue Bonds (Global Water Resources, LLC
Project), Series 2006, of the Issuer, dated December 28, 2006, issued by the Issuer pursuant to the Bond Legislation and the Indenture and any Additional Bonds. 

“Bond Year” shall mean the one-year period beginning on December 1 in each year and ending on the
day prior to December 1 in the following year, except that the first Bond Year shall begin on December 28, 2006 and end on November 30, 2007. 

  
 2 

 “Business Day” means any day other than (i) a
Saturday or Sunday, (ii) a day on which commercial banks in New York, New York, or the city in which the principal offices of the Trustee is located, are authorized by law to close, or (iii) a day on which the New York Stock Exchange is
closed. 
 “Code” means the Internal Revenue Code of 1986, the regulations (whether temporary or
final) under that Code or the statutory predecessor of that Code, and any amendments of, or successor provisions to, the foregoing and any official rulings, announcements, notices, procedures and judicial determinations regarding any of the
foregoing, all as and to the extent applicable. Unless otherwise indicated, reference to a Section means that Section of the Code, including such applicable regulations, rulings, announcements, notices, procedures and determinations pertinent to
that Section. 
 “Company” means Global Water Resources, LLC, a limited liability company for profit
duly organized and validly existing under the laws of the State of Delaware and qualified to transact business in the State, and its lawful successors and assigns, to the extent permitted by this Agreement. 

“Completion Date” means the date of completion of the Project evidenced in accordance with the
requirements of Section 3.6 hereof. 
 “Computation Date” means the last day of each Bond Year
and the date on which the final payment in full of all outstanding Bonds of each series is made. 
 “Construction
Period” means the period between the beginning of the construction, installation, equipment or improvement of the Project or the date on which the Bonds are delivered to the Original Purchaser, whichever is earlier, and the Completion
Date. 
 “County” means Pima County, Arizona. 

“Determination of Taxability” means, with respect to the Bonds, (i) the enactment of legislation
or the adoption of final regulations or a final decision, ruling or technical advice by any federal judicial or administrative authority (collectively, “Legislative Change”), which has the effect of requiring interest on the Bonds to be
included in the “gross income” (as defined in Section 61 of the Code) of the Holders for federal income tax purposes (other than a Holder who is a “substantial user” of the Project or a “related person” as those
terms are used in Section 147(a) of the Code), or (ii) the receipt by the Trustee of a written opinion of Bond Counsel to the effect that interest on the Bonds must be included in such gross income of the Holders for federal income tax
purposes (other than a Holder who is a “substantial user” of the Project or a “related person” as those terms are used in Section 147(a) of the Code); provided that for purposes of clarification only those Legislative
Changes which include interest on the Bonds in gross income (as defined in Section 61 of the Code) shall constitute a Determination of Taxability and not any other change in the Code or other federal law which has the effect, directly or
indirectly, of subjecting all or a portion of the interest on the Bonds to a federal tax; and provided further that no decision by any court or decision, ruling or technical advice by any administrative authority shall be considered final
(a) unless the Holder involved in the proceeding or action giving rise to such decision, ruling or technical advice (i) gives the Company and the Trustee prompt notice of 

  
 3 

 
the commencement thereof, and (ii) offers the Company the opportunity to control the contest thereof, provided the Company shall have agreed to bear all expenses in connection therewith and
to indemnify that Holder against all liabilities in connection therewith, and (b) until the expiration of all periods for judicial review or appeal; and, as to any series of Additional Bonds, any Determination of Taxability defined in the
applicable Supplemental Indenture. 
 “Eligible Investments” means Eligible Investments as defined
in the Indenture. 
 “Event of Default” means any of the events described as an Event of Default in
Section 7.1 hereof. 
 “Excess Earnings” means as of each Computation Date an amount equal to the
sum of (i) plus (ii): 
 (i) is the excess of 

(a) the aggregate amount earned from the date of issuance of the Bonds on all nonpurpose investments in which
gross proceeds of the Bonds are invested (other than investments attributable to Excess Earnings described in this clause (i)), over 

(b) the amount which would have been earned if such nonpurpose investments (other than amounts attributable
to Excess Earnings described in this clause (i)) had been invested at a rate equal to the yield on the Bonds; and 

(ii) is any income attributable to the excess described in clause (i) taking into account any gain or
loss on the disposition of nonpurpose investments. 
 The foregoing sums shall be determined in accordance with
Section 148(f) of the Code. As used herein, the terms “gross proceeds”, “nonpurpose investments” and “yield” have the meanings assigned to them for purposes of Section 148 of the Code. 

“Force Majeure” means any of the causes, circumstances or events described as constituting Force
Majeure in Section 7.1 hereof. 
 “Holder” or “Holder of a Bond” means
the Person in whose name a Bond is registered on the Register. 
 “Income Available For Debt
Service” means the Palo Verde Receipts and all Santa Cruz Receipts. 
 “Indebtedness”
means Indebtedness as defined in the Indenture. 
 “Indenture” means the Trust Indenture, dated as
of even date herewith, between the Issuer and the Trustee, as amended or supplemented from time to time, as permitted therein. 

“Intercreditor Agreement” means the Intercreditor Agreement, dated as of December 28, 2006, among
Wells Fargo, the Company and the Trustee. 

  
 4 

 “Interest Payment Date” means, as to the Bonds, each date
set forth as such in the form of Project Bond attached as Exhibit A to the Indenture, and as to Additional Bonds, each date designated as an Interest Payment Date in the form of bond for which provision is made in the applicable Supplemental
Indenture or Bond Legislation. 
 “Interest Rate for Advances” means the rate of 10% percent per
annum or the rate per annum which is one percentage point in excess of that interest rate announced by the Trustee in its lending capacity as a bank as its “Prime Rate” or its “Base Rate”, whichever is greater and lawfully
chargeable, in whole or in part. 
 “Issuer” means The Industrial Development Authority of the
County of Pima, a nonprofit corporation designated a political subdivision of the State. 
 “Issuer Indemnified
Party” or “Issuer Indemnified Parties” means the Issuer Indemnified Party or Issuer Indemnified Parties as defined in the Indenture. 

“Issuer’s Administrative Expenses” means an annual fee calculated in the amount of 10 basis
points on the original principal amount of the Bonds to be collected semi-annually by the Trustee and paid to the Issuer in equal installments on each Interest Payment Date. - 

“Legislative Authority” means the Board of Directors of the Issuer. 

“Liabilities” means any losses, causes of action (whether in contract, tort, or otherwise), claims,
costs, damages, demands, judgments, liabilities, suits and expenses (including, without limitation, reasonable costs of investigation and attorneys’ fees and expenses) of every kind, character and nature whatsoever. 

“Loan” means the loan by the Issuer to the Company of the proceeds received from the sale of the
Bonds. 
 “Loan Payment Date” means any date on which Company is required to make payments hereunder
or the Project Note for Bond Service Charges on the Bonds, whether at maturity, upon acceleration, call for redemption, tender for mandatory purchase or otherwise. 

“Loan Payments” means the amounts required to be paid by the Company in repayment of the Loan pursuant
to the provisions of the Notes and of Section 4.1 hereof. 
 “Long-Term Indebtedness” means
Long Term Indebtedness as defined in the Indenture. 
 “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 Section 4.8(d) of this Agreement) of the
Company during the current or any future 12 month period ending December 1. 
 “Notes” means
the Project Note and any Additional Notes. 

  
 5 

 “Notice Address” means: 

 

			
	 As to the Issuer:
	  	 The Industrial Development

		  	 Authority of the County of Pima

		  	 c/o Russo Russo & Slania PC

		  	 3002 North Campbell Avenue, Suite 100

		  	 Tucson, AZ 85719-0001

		  	 Telephone: (520) 529-1515

		  	 Facsimile: (520) 529-9040

		  	 Attention: Michael Slania

		
	 As to the Company:
	  	 Global Water Resources, LLC

		  	 21410 North 19th Avenue, Suite 201

		  	 Phoenix, AZ 85027

		  	 Telephone: (623) 580-9600

		  	 Facsimile: (623) 580-9659

		  	 Attention: President and CEO

		
	 As to the Trustee:
	  	 U.S. Bank National Association

		  	 Corporate Trust Services

		  	 101 North First Avenue, Suite 1600

		  	 Phoenix, Arizona 85003

		  	 Telephone: (602) 257-5431

		  	 Facsimile: (602) 257-5433

		  	 Attention: Corporate Trust Administration

 or such additional or different address, notice of which is given under Section 8.6 hereof. 

“Original Purchaser” means for the Bonds, Hutchinson, Shockey & Erley & Co. 

“Palo Verde Receipts” means all gross income of the Palo Verde Utilities Company, after deducting all
direct and indirect operation and maintenance expenses, including general and administrative expenses, but not deducting taxes, depreciation or amortization. 

“Palo Verde Utilities Company” means jointly, Palo Verde Utility Company, LLC, an Arizona limited
liability company and Global Water-Palo Verde Utilities Company, an Arizona subchapter “C” corporation, a public service corporation as defined in Article 15, Section 2 of the Arizona Constitution and regulated by the ACC. 

“Person” or words importing persons mean firms, associations, partnerships (including without
limitation, general and limited partnerships), limited liability companies, societies, trusts, corporations, public or governmental bodies, other legal entities and natural persons. 

“Plans and Specifications” means the plans and specifications describing the Project Facilities as now
prepared and as they may be changed as herein provided from time to time. 

  
 6 

 “Project” means, collectively, the Project Site and the
Project Facilities, together constituting a “project” as defined in the Act. 
 “Project
Costs” means the costs of the Project specified in Section 3.4 hereof. 
 “Project
Facilities” means, collectively, the Palo Verde Utilities Company Project Facilities and the Santa Cruz Water Company 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. 
 “Project
Fund” means the Project Fund created in the Indenture. 
 “Project Note” means the
nonnegotiable promissory note of the Company, dated December 28,2006, in the form attached hereto as Exhibit A and in the principal amount of $36,495,000 evidencing the obligation of the Company to make Loan Payments, as it may be amended or
restated hereunder. 
 “Project Purposes” means constructing, installing, equipping or improving
real and personal property comprising, 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 this Agreement or which may
otherwise be permitted by this Agreement. 
 “Project Site” means the real property and easements
underlying the Project. 
 “Purchase Contract” means the Purchase Contract as defined in the
Indenture. 
 “Rebate Consultant” means a firm of independent accountants or attorneys or another
person or firm with knowledge of or experience in advising with respect to the provisions of Section 148(f) of the Code. 

“Rebate Fund” means the Rebate Fund created in the Indenture. 

“Register” means the books kept and maintained for the registration and transfer of Bonds pursuant to
Section 3.06 of the Indenture. 
 “Registrar” means the Registrar as defined in the Indenture.

 “Revenues” means (a) the Loan Payments, (b) all other moneys received or to be received
by the Issuer or the Trustee in respect of repayment of the Loan, including without limitation, all moneys and investments in the Bond Fund and Bond Reserve Fund, (c) any moneys and investments in the Project Fund, and (d) all income and
profit from the investment of the foregoing moneys except for any investment income which is required to be rebated to the United States of America in order to continue the exclusion of interest on the Bonds from gross income for federal income tax
purposes. The term “Revenues” does not include any moneys or investments in the Rebate Fund or payment to the Issuer or Trustee pursuant to Sections 4.2, 7.4 and 8.2 of this Agreement or Sections 6.03 and 10.05 of the Indenture. 

  
 7 

 “Santa Cruz Receipts” means all gross income of the Santa
Cruz Water Company, after deducting all direct and indirect operation and maintenance expenses, including general and administrative expenses, but not deducting taxes, depreciation or amortization. 

“Santa Cruz Water Company” means jointly, Santa Cruz Water Company, LLC, an Arizona limited liability
company and Global Water-Santa Cruz Water Company, an Arizona subchapter “C” corporation, a public service corporation, as defined in Article 15, Section 2 of the Arizona Constitution and regulated by the ACC. 

“Security Agreement” means the Security Agreement from the Company to the Trustee. 

“Short-Term Indebtedness” means all Indebtedness, other than Long-Term Indebtedness, which meets one
or more of the following criteria: 
 (i) Indebtedness with respect to money borrowed payable on demand or
for an original term, or renewable at the option of the borrower for a period from the date originally incurred, of one year or less; 

(ii) Indebtedness with respect to leases which are capitalized in accordance with generally accepted
accounting principles having an original term, or renewable at the option of the lessee for a period from the date originally incurred, of one year or less; and 

(iii) Indebtedness with respect to installment purchase contracts having an original term of one year or less.

 and provided, however, trade payables in the normal course of business shall not be considered Short-Term Indebtedness.

 “State” means the State of Arizona. 

“Trustee” means U.S. Bank National Association, a national banking association validly existing and
duly organized under the laws of the United States, until a successor Trustee shall have become such pursuant to the applicable provisions of the Indenture, and thereafter “Trustee” shall mean the successor Trustee. 

“Unassigned Issuer’s Rights” means all of the rights of the Issuer to receive Additional Payments
under Section 4.2 hereof, to be held harmless and indemnified under Section 8.2 hereof (and the security therefor), to be reimbursed for attorney’s fees and expenses under Section 7.4 hereof, to inspect books and records or give
or withhold consent to amendments, changes, modifications, alterations and termination of this Agreement, to receive notices under Section 8.6 hereof and the limitations on the Issuer’s liability. 

“Wells Fargo” means Wells Fargo Bank, N.A. 

“Wells Fargo Credit Agreement” means the Amended and Restated Credit Agreement, dated as of
December 9,2005, between, as borrowers, the Company, Global Water Management, 

  
 8 

 
LLC, a Delaware limited liability company, and Global Water, Inc., a Delaware corporation, and as lender, Wells Fargo, as supplemented and amended. 

Section 1.3. Interpretation. Any reference herein to the Issuer, to the Legislative Authority or to any member or
officer of either includes entities or officials succeeding to their respective functions, duties or responsibilities pursuant to or by operation of law or lawfully performing their functions. 

Any reference to a section or provision of the Constitution of the State or the Act, or to a section, provision or chapter of
the Arizona Revised Statutes or to any statute of the United States of America, includes that section, provision or chapter as amended, modified, revised, supplemented or superseded from time to time; provided, that no amendment, modification,
revision, supplement or superseding section, provision or chapter shall be applicable solely by reason of this provision, if it constitutes in any way an impairment of the rights or obligations of the Issuer, the Holders, the Trustee or the Company
under this Agreement. 
 Unless the context indicates otherwise, words importing the singular number include the plural
number, and vice versa; the terms “hereof”, “hereby”, “herein”, “hereto”, “hereunder” and similar terms refer to this Agreement; and the term “hereafter” means after, and the term
“heretofore” means before, the date of delivery of the Bonds. Words of any gender include the correlative words of the other genders, unless the sense indicates otherwise. 

Section 1.4. Captions and Headings. The captions and headings in this Agreement are solely for convenience of
reference and in no way define, limit or describe the scope or intent of any article, articles, sections, subsections, paragraphs, subparagraphs and clauses hereof. 

ARTICLE II 

REPRESENTATIONS 

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 Bonds to assist the financing of the Project is in furtherance of the public purposes set forth in the Act; 

(c) In order to finance the costs of the 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 Indenture and this Loan Agreement; 

(d) To accomplish the foregoing, the Issuer proposes to issue $36,495,000, in an aggregate principal amount of
its Bonds immediately following the execution and delivery of this Agreement. The date, denomination or denominations, and other pertinent provisions with respect to the Bonds are set forth in the Indenture; 

  
 9 

 (e) The Issuer makes no representation or warranty that the
amount of the Loan will be adequate or sufficient to finance the Project or that the 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 this Agreement for any purpose other than as provided in the 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
Project to be developed, constructed, operated, equipped, and maintained by Palo Verde Utilities Company and by 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 Agreement and the Project Note and to
enter into and carry out the transactions contemplated by those documents. This Agreement and the Project Note have, by proper action, been duly authorized, and delivered by the Company and all steps necessary have been taken to constitute this
Agreement and the Project Note valid and binding obligations of the Company. 
 (d) The execution and
delivery of this Agreement, the Project Note, the Security Agreement, the Intercreditor Agreement the Continuing Disclosure Undertaking of the Company dated as of December 28,2006, and the Bond Purchase Agreement dated December 14,2006
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
Bonds as so contemplated, subject to the execution and delivery of the Intercreditor Agreement dated as of December 1, 2006 between the Trustee and Wells Fargo Bank, N.A. 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 

  
 10 

 
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 Palo Verde Utilities Company and 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 Palo Verde Utilities Company or 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, or upon the validity or enforceability of the Company Documents and none of the Company or Palo Verde Utilities
Company or Santa Cruz Water Company is not 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 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 Project as designed and as proposed to be operated or caused to be operated by the Palo
Verde Utilities Company or 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 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 Indenture, shall survive the execution and delivery thereof and the issuance, sale, and delivery of the Bonds as representations of facts existing as of the date of such execution and delivery of the instrument
containing such representation. 
 (k) The Project is and will be located within the limits of the City of
Maricopa, County of Pinal, Arizona. 

  
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 (1) The Project was commenced no earlier than September 22,
2004. 100% of the proceeds ($32,167,993.72) of the Bonds in the Construction Account of the Project Fund will be used to reimburse the Company for expenses incurred in connection with the Project prior to the adoption of the Issuer on
November 22, 2004 with respect to the Project. 
 (m) There are no existing liens or encumbrances on
property owned by the Company, Palo Verde Utilities Company or 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, Palo Verde
Utilities Company or Santa Cruz Water Company or which could result in the property owned by the Company, Palo Verde Utilities Company or Santa Cruz Water Company being transferred to any other entity. 

(n) The Company presently intends to cause the Project to be used or operated in a manner consistent with the
Project Purposes until the date on which the Bonds have been fully paid and knows of no reason why the 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, Palo Verde Utilities Company or Santa Cruz Water Company or others which will be consistent with the Act; provided, however, that this provision does not require the Company, Palo Verde Utilities
Company or Santa Cruz Water Company to operate any portion of the Project after the Company shall determine in its discretion that such operations are no longer economic and does not prohibit the Company, Palo Verde Utilities Company or Santa Cruz
Water Company from selling the Project or from merging into or consolidating with another corporation in accordance with Section 5.3. 

(o) The use of the 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 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 Project to acquire, construct, improve and equip the 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, Palo Verde Utilities Company or Santa Cruz Water Company the Project or in any of the transactions contemplated under the Company Documents. 

  
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 (r) There has been no material adverse change in the financial
condition, prospects or business affairs of the Company, Palo Verde Utilities Company or Santa Cruz Water Company or the feasibility or physical condition of the 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 Project; (b) is familiar with all of the provisions of the 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 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 Bonds in order to provide funds for the Loan. 

(t) The Company hereby acknowledges receipt of the Indenture and agrees to be bound by its 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 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 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 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 3.4 hereof, which,
if paid, would result in less than 95% of the net proceeds of the Bonds being spent. 
 (w) The costs of
issuance financed by the Bonds will not exceed 2% of the aggregate face amount of the 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 hereof
or otherwise, which, if paid, would result in more than 2% of the aggregate face amount of the Bonds being so used. None of the proceeds of the Bonds will be used to provide working capital. 

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

  
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 (y) None of the proceeds of the 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 Bonds will be used directly or indirectly to acquire land or any
interest therein. 
 (aa) No portion of the proceeds of the 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 Bonds. 
 (cc) In connection with any lease or grant by the Company of the
use of the Project, the Company shall require that the lessee or user of any portion of the Project shall not (i) violate the covenant set forth in subsection (n) above and (ii) use that portion of the 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 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 Bonds for such bond year and the aggregate amount of gross proceeds of the Bonds invested in higher yielding investments, if any, will be promptly and appropriately reduced as the amount of
outstanding 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 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 Bonds are not “federally guaranteed” within the meaning of Section 149(b) of the Code.

  
 14 

 ARTICLE III 

COMPLETION OF THE PROJECT; 

ISSUANCE OF THE BONDS 

Section 3.1. Acquisition, Construction, Installation, Equipment and Improvement. The Company (a) has acquired
a fee or other appropriate interest, including easements in the Project Site and shall construct and equip the Project Facilities on the Project Site with all reasonable dispatch, subject to Force Majeure, and in substantial accordance with the
Plans and Specifications in all material respects, (b) shall pay when due all fees, costs and expenses incurred in connection with that construction, installation, equipment and improvement from funds made available therefor in accordance with
this Agreement or otherwise, and (c) shall ask, demand, sue for, levy, recover and receive all those material sums of money, debts and other demands whatsoever which may be due, owing and payable under the terms of any contract, order, receipt,
writing and instruction in connection with the construction, installation, equipment and improvement of the Project, and shall enforce the material provisions of any contract, agreement, obligation, bond or other performance security with respect
thereto, subject to right of Company to settle or compromise any such matter in its absolute discretion. It is understood that the Project is that of the Company and any contracts made by the Company with respect thereto, whether acquisition
contracts, construction contracts or otherwise, or any work to be done by the Company on the Project are made or done by the Company in its own behalf and not as agent or contractor for the Issuer. 

Section 3.2. Plans and Specifications. The Company may revise the Plans and Specifications from time to time,
provided that no revision shall be made which would change the Project Purposes, without the approval of the Issuer, and no revision shall be made which would change the Project Purposes to other than purposes permitted by the Act. 

Section 3.3. Issuance of the 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 Bonds to the Original Purchaser. The 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 Indenture and the
Bonds, and of the terms and conditions under which the Bonds will be issued, sold and delivered. 
 The proceeds from the
initial sale of the Bonds shall be paid over to the Trustee and deposited as described in Section 2.03 of the Indenture. 

Pending disbursement pursuant to Section 3.4 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. 

  
 15 

 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 3.4. 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: 

(1) Costs incurred directly or indirectly for or in connection with the construction, installation, equipment
or improvement of the Project, including costs incurred in respect of the 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 $         in order to
reimburse the Company for expenses incurred in connection with the Project from and after August 22, 2004. 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. 
 (3) Taxes, assessments and other
governmental charges in respect of the Project that may become due and payable during the 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, delivery and remarketing of the 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 Bonds financed by the Bonds shall not exceed 2% of the aggregate face amount of the 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 by the Company in the Cost of Issuance Account of the Project Fund in the amounts set forth on Exhibit B to the Trust Indenture 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 Project. 
 (7) Payment of interest on the Bonds during the
Construction Period. 
 (8) 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 D 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 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 Bonds is not less than 5/6ths of the average maturity of the 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 Bonds to be included in the gross income of the Holders for federal income tax purposes, as contemplated by the Form of Distribution Request in Exhibit D. 

(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 

(1) used to acquire, construct, install, equip and improve such additional real or personal property in
connection with the Project which shall constitute part of the 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
Bonds, will not be less than 5/6ths of the average maturity of the 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 Bonds to be included in the gross income of the Holders for federal income tax purposes; 
 (2) used
for the purchase of 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 Bonds; or 

  
 17 

 (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 Bonds to be included in the gross income of the Holders for federal income tax purposes. 

Section 3.5. Company Required to Pay Costs in Event Project Fund Insufficient. If moneys in the Project Fund are
not sufficient to pay all Project Costs, the Company, nonetheless, will complete the Project in accordance with the Plans and Specifications and, unless Additional Bonds shall have been issued for that purpose, shall pay all such additional Project
Costs from its own funds. The Company shall not be entitled to any reimbursement for any such additional Project Costs or payment of issuance costs from the Issuer, the Trustee or any Holder, nor shall it be entitled to any abatement, diminution or
postponement of the Loan Payments. 
 Section 3.6. Completion Date. The Company shall notify the Issuer and the
Trustee of the Completion Date by a certificate signed by the Authorized Company Representative stating 

(a) the date on which the Project Facilities were substantially completed, 

(b) that all other facilities necessary to begin operation of the Project have been acquired, constructed,
installed, equipped and improved, 
 (c) that the acquisition, construction, installation, equipment and
improvement of the Project Facilities and those other facilities have been accomplished in such a manner as to conform in all material respects with all applicable zoning, planning, building, environmental and other similar governmental regulations,

 (d) that except as provided in subsection (e) of this Section, all costs of that acquisition,
construction, installation, equipment and improvement then or theretofore due and payable have been paid, and 

(e) the amounts which the Trustee shall retain in the Project Fund for the payment of Project Costs not yet
due or for liabilities which the Company is contesting or which otherwise should be retained and the reasons such amounts should be retained. 

That certificate may state that it is given without prejudice to any rights against third parties which then exist or
subsequently may come into being. The certificate shall be delivered as promptly as practicable after the occurrence of the events and conditions referred to in subsections (a) through (d) of this Section. 

Section 3.7. Investment of Fund Moneys. At the written request of the Authorized Company Representative and
subject to the provisions of Sections 5.05 and 5.09 of the Indenture or other applicable provisions thereof, any moneys held as part of the Bond Fund, the Bond Reserve Fund, the Project Fund or the Rebate Fund shall be invested or reinvested by the
Trustee in Eligible Investments. The Company hereby covenants that it will restrict that investment and reinvestment and the use of the proceeds of the Bonds in such manner and to such extent, if any, as may be necessary, after taking into account
reasonable expectations at the time of delivery of 

  
 18 

 
and payment for the Bonds or subsequent intentional acts, so that the Bonds will not constitute arbitrage bonds under Section 148 of the Code. 

The Company shall provide the Issuer with, and the Issuer may base its certifications as authorized by the Bond Legislation
on, a certificate of an appropriate officer, employee or agent of or consultant to the Company for inclusion in the transcript of proceedings for the Bonds, setting forth the reasonable expectations of the Company on the date of delivery of and
payment for the Bonds regarding the amount and use of the proceeds of the Bonds and the facts, estimates and circumstances on which those expectations are based. 

Section 3.8. Rebate Fund. With five days after the end of each Bond Year and within five days after payment in
full of all outstanding Bonds of each series, the Company shall furnish, or direct the Trustee to furnish, information to the Rebate Consultant, who shall calculate the amount of Excess Earnings as of the end of that Bond Year or the date of such
payment and shall notify the Trustee of that amount. 
 If the amount then on deposit in the Rebate Fund created under the
Indenture is less than 90% of the amount of Excess Earnings (computed by taking into account the amount or amounts, if any, previously paid to the United States pursuant to Section 5.09 of the Indenture and this Section) on any such Bond Year
and less than 100% of the Excess Earnings on the date a series of Bonds are paid, then, the Company shall, within five days after the date of the aforesaid calculation and receipt of notice thereof from the Rebate Consultant, pay to the Trustee for
deposit in the Rebate Fund an amount sufficient to cause the Rebate Fund to contain an amount equal to the Excess Earnings. The obligation of the Company to make such payments shall remain in effect and be binding upon the Company notwithstanding
the release and discharge of the Indenture. 
 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 this 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, 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 Project Note shall be additionally secured by and in accordance with the terms of the
Security Agreement. The 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 

  
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(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 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; 

(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. 

  
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 (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 hereof 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 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. 

Section 4.2. Additional Payments. The Company shall pay as Additional Payments hereunder: 

(a) To the Issuer, by payment to the Trustee of any and all costs and expenses incurred or to be paid by the
Issuer in connection with the issuance and delivery of the Bonds and Additional Bonds or otherwise related to actions taken by the Issuer under this Agreement or the Indenture, including, without limitation, its share of the Issuer’s
Administrative Expenses, the Trustee authorized pursuant to the Indenture to deposit such Issuer’s Administrative Expenses to a fund or account maintained by the Trustee to be paid to the Issuer. 

(b) To the Trustee, its fees, charges and expenses due the Trustee under the Indenture or this Agreement, and
all indemnities due the Trustee under Section 8.2 of this Agreement. 
 (c) To the Trustee, all rebate
payments required under Section 5.09 of the Indenture. 
 Section 4.3. Place of Payments. The Company shall
make all Loan Payments directly to the Trustee at its corporate trust office. Additional Payments shall be made directly to the person or entity to whom or to which they are due. 

  
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 Section 4.4. Obligations Unconditional. The obligations of the
Company to pay the Loan Payments, Additional Payments, including without limitation, any payments required of the Company under Section 5.09 of the Indenture and to perform and observe the other agreements on its part contained herein shall be
absolute and unconditional. Until such time as all conditions provided in the Indenture for release thereof are met, the Company, for the benefit of the Holders of the Bonds: (i) will not suspend, reduce or discontinue payment of any Loan
Payments and Additional Payments, (ii) will perform and observe all of its other agreements contained in this Agreement, and (iii) except as provided in Section 8.4 hereof, will not terminate this Agreement for any cause including,
without limiting the generality of the foregoing, any acts or circumstances that may constitute failure of consideration, destruction of or damage to the Project or other properties owned or operated by the Company, any default by the Issuer under
or termination of this Agreement, commercial frustration of purpose, any change in the tax or other laws or administrative rulings of or administrative actions by or under authority of the United States of America or of the State, or any failure of
the Issuer to perform and observe any agreement, whether expressed or implied, or any duty, liability or obligation arising out of or connected with this Agreement or the Indenture. 

Section 4.5. Assignment of Agreement and Revenues; Approval of Indenture. To secure the payment of Bond Service
Charges, the Issuer shall assign to the Trustee, by the Indenture, its rights under and interest in this Agreement (except for the Unassigned Issuer’s Rights) and the Revenues. The Company hereby agrees and consents to those assignments. 

The Indenture has been submitted to the Company for examination and approval, and the Company acknowledges that, by execution
of this Agreement, it has approved the Indenture. The Company further acknowledges that by execution of this Agreement, it agrees and covenants to comply with and to perform all duties and obligations of the Company set forth in the Indenture. 

Section 4.6. Application of Certain Moneys. Any amount deposited in the Bond Fund shall be used, to the extent
practicable in the opinion of the Trustee upon the written direction of the Company, for the purchase of Bonds in the open market for purposes of cancellation or for the redemption of Bonds within one year of receipt of that amount, if permitted
pursuant to the optional redemption provisions of the Indenture. If, in the opinion of the Trustee, that is not practicable or there is any balance remaining after that application, the remaining amount shall be credited against the portion of the
next succeeding Loan Payment as represents the payment of principal of the Bonds to become due and payable on the applicable Interest Payment Date. 

Section 4.7. Reserved. 

Section 4.8. Limits on Incurrence of Indebtedness. (a) The Company agrees that the Company will not incur any
Indebtedness other than (i) the obligations hereunder with respect to the Bonds; and (ii) the Wells Fargo Credit Agreement; and (iii) Indebtedness described in (b), (c) and (d) below; provided that at the time of incurrence
of any such additional permitted Indebtedness, no Event of Default (or an event which with the passage of time or the giving of notice, or both, would be an Event of Default) shall have occurred and shall be continuing unless such event will be
cured upon incurrence of such Indebtedness and application of the proceeds thereof. 

  
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 (b) The Company may incur Long Term Indebtedness upon compliance
with this subsection (b). 
 Prior to incurring any Long Term Indebtedness, the Company shall furnish the
Trustee with evidence of compliance by the Company with the financial test required by Section 2.04(a)(l) of the Indenture for the incurrence of Additional Bonds, treating the proposed Long Term Indebtedness as if it were proposed Additional
Bonds. 
 (c) The Company may incur Short Term Indebtedness. 

(d) The Company may incur Subordinated Indebtedness (as defined below), from time to time, in any amount. 

As used herein, “Subordinated Indebtedness” means Indebtedness of the Company issued, incurred or
evidenced by instruments, which are payable from or secured by Palo Verde Receipts or Santa Cruz Receipts, which instruments contain provisions subordinating such obligations (to which appropriate reference shall be made in the Subordinated
Indebtedness) substantially as follows: 
 “All Subordinated Indebtedness shall be issued subject to
the following provisions and each person taking or holding any Subordinated Indebtedness, whether upon original issue or upon transfer or assignment thereof, accepts and agrees to be bound by such provisions. 

“All Subordinated Indebtedness shall, to the extent and in the manner hereinafter set forth, be
subordinated and subject in right to the prior payment in full of all outstanding Bonds and any Additional Bonds issued under the Indenture (collectively “Superior Bonds”). 

“Upon (a) any acceleration of maturity of the principal amount of any Subordinated Bonds (but
excluding any voluntary prepayment) or (b) any payment or distribution of any kind or character, whether in cash, property or securities, upon any dissolution or winding-up or total or partial liquidation, reorganization or other similar
arrangement of the Company, whether voluntary or involuntary or in bankruptcy, insolvency, receivership or other proceedings, then all principal, premium, if any, and interest due or to become due upon all Superior Bonds shall first be paid in full,
or payment thereof provided for in accordance with the terms of the Indenture, before any payment is made on account of the principal, premium, if any, or interest on any Subordinated Indebtedness, and upon any such dissolution or winding-up or
liquidation, reorganization or other similar arrangement, any payment or distribution of any kind or character, whether in cash, property or securities, to which the holders of any Subordinated Indebtedness would be entitled, except for the
provisions hereof, shall be paid by the Company, or by a receiver, trustee in bankruptcy, liquidating trustee, agent or other person making such payment or distribution, to the Trustee to the extent necessary to pay all Superior Bonds in full before
any payment or distribution is made to the holders of the Subordinated Bonds. 

  
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 “In the event that, in violation of any of the foregoing
provisions, any payment or distribution of any kind or character, whether in cash, property or securities, shall be received by the holders of the Subordinated Indebtedness before all Superior Bonds are paid in full, or provision for such payment in
accordance with the terms of the Indenture, such payment or distribution shall be held in trust for the benefit of, and shall be paid over or delivered to the Trustee for the Superior Bonds for application to the payment of all Superior Bonds
remaining unpaid to the extent necessary to pay all such Superior Bonds in full in accordance with their terms. 

“No present or future holder of any Superior Bond shall be prejudiced in his right to enforce
subordination of the Subordinated Indebtedness by any act or failure to act on the part of the Company or anyone in custody of or control over its assets or property. 

“The foregoing subordination provisions shall be for the benefit of the holders of Superior Bonds and
may be enforced by the Trustee against the holders of Subordinated Indebtedness”. 
 provided, however, that the Subordinated
Indebtedness shall provide: (i) that the foregoing provisions are solely for the purpose of defining the relative rights of the holders of Superior Bonds on the one hand and the holders of the Subordinated Indebtedness on the other hand, and
that nothing therein shall impair, as between the Company and the holders of the Subordinated Indebtedness, the obligation of the Company to pay to the holders of the principal thereof, premium, if any, and interest thereon in accordance with its
terms, nor shall anything therein prevent the holders of the Subordinated Indebtedness or any trustee on their behalf from exercising all remedies otherwise permitted by applicable law or thereunder upon default thereunder, subject to the rights set
forth above of the holders of Superior Bonds to receive cash, property or securities otherwise payable or deliverable to the holders of the Subordinated Indebtedness, (ii) that upon any payment or distribution of assets of the Company of the
character referred to in the third paragraph of the foregoing provisions, the trustee under any agreement relating to Subordinated Indebtedness shall be entitled to rely upon any order or decree of a court of competent jurisdiction in which such
dissolution, winding-up, liquidation, reorganization or other similar arrangement proceedings are pending, and upon a certificate of the receiver, trustee in bankruptcy, liquidating trustee, agent or other person making any such payment or
distribution, delivered to said trustee for the purpose of ascertaining the persons entitled to participate in such distribution, the holders of Superior Bonds and other indebtedness of the Company, the amount thereof or payable thereon, the amount
or amounts paid or distributed thereon and all other facts pertinent thereto or to the foregoing provisions, and (c) that any trustee under any agreement relating to Subordinated Indebtedness and any paying agent therefor shall not be charged
with knowledge of the existence of any facts which would prohibit the making of any payment of moneys to or by such trustee or such paying agent, unless and until such trustee or such paying agent, as the case may be, shall have received notice
thereof from the Company or from one or more holders of Superior Bonds. 

  
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 ARTICLE V 

ADDITIONAL AGREEMENTS AND COVENANTS 

Section 5.1. Right of Inspection. Subject to reasonable security and safety regulations and upon reasonable
notice, the Issuer and the Trustee, and their respective agents, shall have the right, but not any duty during normal business hours to inspect the Project. 

Section 5.2. Lease or Grant of Use by Company. Except as may otherwise be provided herein and subject to the
provisions of Section 2.2(v) hereof, the Company may permit Palo Verde Utilities Company or Santa Cruz Water Company to lease or grant the right to occupy and use the Project, in whole or in part, to others, provided that: 

(1) No such grant or lease shall relieve the Company from its obligations under this Agreement or the Project
Note; 
 (2) In connection with any such grant or lease the Company shall retain such rights and interests
as will permit it to comply with its obligations under this Agreement and the Project Note; 
 (3) No such
grant or lease shall impair materially the purposes of the Act to be accomplished by operation of the Project Facilities as herein provided. 

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 shall
not apply, however, to a public offering of all or a part of the member interests of the Company or to a transaction if all of the following conditions are met: 

(i) 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; 
 (ii) 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 

  
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 (iii) 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. 

Section 5.4. Books and Records; Financial Statements. The Company shall keep true and proper books of records and
accounts in which full and correct entries are made of all its business transactions and shall reflect in its financial statements adequate accruals and appropriations to reserves, all in accordance with generally accepted accounting principles. The
Company shall deliver to the Trustee and to the Holders of the Bonds requesting the same by written notice filed with the Company within 210 days after the end of each fiscal year of the Company, a consolidated balance sheet of the Company as at the
end of such year and consolidated statements of income and retained earnings of the Company for such year, setting forth in comparative form the corresponding figures as at the end of or for the previous fiscal year, all in reasonable detail and
accompanied by an audit report thereon of the regular independent public accountants selected by the Company, stating that those balance sheets and financial statements have been prepared in accordance with generally accepted accounting principles
and that the audit by such accountants in connection with those balance sheets and financial statements has been made in accordance with generally accepted auditing standards. The financial statements shall identify advances in aid of construction.
The Trustee shall have no duty to review such financial statements. 
 Section 5.5. Limitations on Creation of
Liens. The Company agrees that it will not create or suffer to be created or exist any mortgage, pledge, security interest, lien, judgment, easement or other encumbrance on title, including, but not limited to, any mortgage or pledge of,
security interest in or lien or other similar encumbrance (collectively “Liens”) on the Income Available for Debt Service or on any of the property of Palo Verde Utilities Company or Santa Cruz Water Company other than Permitted
Encumbrances (as defined in (a)). 
 (a) Permitted Encumbrances shall consist of the following: 

(i) Any lien arising by reason of deposits with, or the giving of any form of security to, any governmental
agency or any body created or approved by law or governmental regulation for any purpose at any time as required by law or governmental regulation as a condition to the transaction of any business or the exercise of any privilege or license, or to
enable the Company or Palo Verde Utilities Company or Santa Cruz Water Company to maintain self-insurance or to participate in any funds established to cover any insurance risks or in connection with workers’ compensation, unemployment
insurance, pension or profit sharing plans or other social security, or to share in the privileges or benefits required for companies participating in such arrangements; 

(ii) Any judgment Lien against the Company or Palo Verde Utilities Company or Santa Cruz Water Company so
long as such judgment is being contested and execution thereon is stayed, in the absence of such contest and stay, such judgment Lien will not materially impair the property of the Company or 

  
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Palo Verde Utilities Company or Santa Cruz Water Company or subject such property to material loss or forfeiture; 

(iii) (A) Rights reserved to or vested in any municipality or public authority by the terms of any
right, power, franchise, grant, license, permit or provision of law, affecting any property of the Company or Palo Verde Utilities Company or Santa Cruz Water Company to (1) terminate such right, power, franchise, grant, license or permit,
provided that the exercise of such right would not materially alter the use of such property or materially and adversely affect the value thereof, or (2) purchase, condemn, appropriate or recapture, or designate a purchaser of, such property;
(B) any Lien on any property for taxes, assessments, levies, fees, water and sewer charges, and other governmental and similar charges and any Liens of mechanics, materialmen, laborers, suppliers or vendors for work or services performed or
materials furnished in connection with such property which are not due and payable or which are not delinquent or the amount or validity of which are being contested and execution thereon is stayed, or the amount for which the Lien is claimed is
either covered by a surety bond in favor of the claimant or the amount so claimed is deposited with the Trustee for payment to such claimant, or the existence of which will not subject such property to material loss or forfeiture;
(C) easements, rights-of-way, servitudes, restrictions and other minor defects, encumbrances and irregularities in the title to any such property which do not materially impair the use of such property or materially and adversely affect the
value thereof; and (D) rights reserved to or vested in any municipality or public authority to control or regulate any property or to use such property in any manner (including zoning and similar land use restrictions), which rights do not
materially impair the use of such property or materially and adversely affect the value thereof; 
 (iv)
[Reserved]; 
 (v) Any lease of Property of the Company, Palo Verde Utilities Company or Santa Cruz Water
Company which, in the judgment of the Company, is reasonably necessary or appropriate for or incidental to the use of such property, taking into account the nature and terms of the lease and the nature and purposes of the property; 

(vi) Any Lien in favor of a trustee or other representative of the creditor on the proceeds of indebtedness
deposited with such representative prior to application thereof; 
 (vii) Any Lien on any property of the
Company, Palo Verde Utilities Company or Santa Cruz Water Company so long as the Trustee determines that such Lien secures, on a parity basis, in addition to any other obligation of the Company, Palo Verde Utilities Company or Santa Cruz Water
Company the incurrence of which does not violate this Agreement, the Company’s obligations to make payments to the Bond Fund, Bond Reserve Fund and Rebate Fund and to pay Bond Service Charges on the Bonds; 

  
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 (viii) The Security Agreement; and 

(ix) Indebtedness and security in favor of Wells Fargo under the Wells Fargo Credit Agreement. 

Section 5.6. Annual Certificate of Company. The Company will deliver to the Trustee and the Issuer within ten
weeks after the end of each fiscal year of the Company a certificate executed by its chief executive officer or chief financial officer stating that: 

(a) A review of the activities of the Company, Palo Verde Utilities Company and Santa Cruz Water Company
during such fiscal year and of performance hereunder has been made under his supervision; and 
 (b) He is
familiar with the provisions of this Agreement and the tax compliance certificate and to the best of his knowledge, based on such review and familiarity, the Company has fulfilled all its obligations hereunder and thereunder throughout such fiscal
year of the Company, and there have been no defaults under this Agreement or the tax compliance certificate or, if there has been a default in the fulfillment of any such obligation in such fiscal year, specifying each such default known to him and
the nature and status thereof and the action taken or being taken to correct such default. 
 Section 5.7. Exemption
from Federal Income Taxation. The Company, for the benefit of the Issuer, the Trustee and the Holders of any Bonds, hereby represents that it has not taken or omitted to take, or permitted to be taken on its behalf, and agrees that it will not
take or omit to take, or permit to be taken on its behalf, any action which, if taken or omitted, would, under the Code existing as of the date of the original execution and delivery of the Bonds, adversely affect the exemption of interest on the
Bonds from gross income for federal income tax purposes, and that it will take, or require to be taken, such acts as may from time to time be required of it under such existing applicable law or regulation to continue in effect such exclusion. 

The Company hereby covenants that it will restrict the use of the proceeds of the Bonds in such manner and to such extent as
may be necessary, after taking into account reasonable expectations at the time of the delivery of and payment for the Bonds, so that the Bonds will not constitute arbitrage bonds under Section 148 of the Code. 

Section 5.8. Calculations and Payments of Rebate to the United States. At all times required by
Section 148(f) of the Code, the Company agrees and covenants to calculate or cause to be calculated the amount of and to pay to the Trustee, rebate payments required by Section 148(f) to be paid to the United States with respect to the
Bonds in order to maintain the exclusion of interest on the Bonds from gross income for federal income tax purposes, as provided in Section 5.09 of the Indenture. 

The obligation of the Company to make or cause to be made such calculation and payments shall remain in effect and be binding
upon the Company notwithstanding the release and discharge of the Indenture or termination of this Agreement. 

  
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 Section 5.9. Information to Holders and Other. The Company agrees
that it shall furnish to any Holder of a Bond or a prospective Holder of a Bond, upon their written request to the Company, a copy of (a) the most recent audited financial statements of the Company prepared in accordance with Section 5.4
hereof and (b) the most recent certification filed by the Company under Section 5.6 and 5.12 hereof. 

Section 5.10. Reserved. 

Section 5.11. Rate Covenant. The Company covenants and agrees that it will use its best efforts to obtain Arizona
Corporation Commission approval of schedules of rates, fees and charges for all services supplied by Palo Verde Utilities Company and Santa Cruz Water Company, after making reasonable allowances for contingencies and errors in estimates, to produce
Income Available for Debt Service in each fiscal year of the Company not less than 1.10 X Maximum Annual Debt Service an all Long Term Indebtedness (exclusive of Subordinated Indebtedness incurred in compliance with 4.8(d) of this Agreement). 

Section 5.12. Annual Certification. The Company will deliver to the Trustee and the Authority within 240 days
after the end of each fiscal year of the Company consolidated financial statements of the Company for the immediately preceding year, prepared in accordance with generally accepted accounting principles, accompanied by a report of an Accounting Firm
on such consolidated financial statements as well as a letter stating that nothing came to their attention during the audit of such consolidated financial statements that caused them to believe that the Company failed to comply with the following
covenants: 
 (a) the Income Available for Debt Service for the most recent fiscal year of the Company, as
determined based upon the financial statements of the Company for the immediately preceding fiscal year which financial statements shall be audited as required by Section 5.4 of this Agreement. Such audit report shall be delivered to the
Trustee and shall state (I) the opinion of the Accounting Firm to the effect such financial statements present fairly, in all material respects, the financial position of the Company and its subsidiaries, including Palo Verde Utilities Company
and Santa Cruz Water Company as of the end of the fiscal year(s) shown and the results of its operations for such year(s) in conformity with generally accepted accounting principles, or (11) such other form of opinion as shall be customary and
generally accepted, at the time of such report, as the form of the opinion of any independent certified public accounting firm reporting on financial statements under generally accepted accounting principles; 

(b) the Revenue Objective, which shall mean 1.10 times Maximum Annual Debt Service on all Long Term
Indebtedness (exclusive of Subordinated Indebtedness incurred in compliance with Section 4.8(d) of this Agreement) outstanding at the end of such fiscal year; 

(c) the Debt Service Coverage Ratio shall not be less than 1:10 i.e. Income Available for Debt Service divided
by Maximum Annual Debt Service on all Long Term Indebtedness (exclusive of Subordinated Indebtedness incurred in compliance with Section 4.8(d) of this Agreement) outstanding at the end of such fiscal year; and 

  
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 (d) Reserved. 

ARTICLE VI 
 REDEMPTION
OF BONDS 
 Section 6.1. Optional Redemption. Provided no Event of Default shall have occurred and be
subsisting, at any time and from time to time, the Company may deliver moneys to the Trustee in addition to Loan Payments or Additional Payments required to be made hereunder, and direct the Trustee to use the moneys so delivered for the purpose of
purchasing Bonds or of calling Bonds for optional redemption in accordance with the applicable provisions of the Bond Legislation and Indenture providing for optional redemption at the redemption price stated in the Indenture and the Bonds. Pending
application for those purposes, any moneys so delivered shall be held by the Trustee in a special account in the Bond Fund and delivery of those moneys shall not operate to abate or postpone Loan Payments or Additional Payments otherwise becoming
due or to alter or suspend any other obligations of the Company under this Agreement. 
 Section 6.2. Extraordinary
Optional Redemption. The Company shall have, subject to the conditions hereinafter imposed, the option to direct the redemption of the entire unpaid principal balance of the Bonds in accordance with the applicable provisions of the Indenture and
the Bonds upon the occurrence of any of the following events: 
 (a) The Project shall have been damaged or
destroyed to such an extent that, in the Company’s reasonable judgment, (1) it cannot reasonably be expected to be restored, within a period of six months, to the condition immediately preceding such damage or destruction, or (2) its
normal use and operation is reasonably expected to be prevented for a period of six consecutive months. 

(b) Title to, or the temporary use of, all or a significant part of the Project shall have been taken under
the exercise of the power of eminent domain (1) to such extent that the Project cannot, in the Company’s reasonable judgment, reasonably be expected to be restored within a period of six months to a condition of usefulness comparable to
that existing prior to the taking, or (2) as a result of the taking, normal use and operation of the Project is reasonably expected, in the Company’s reasonable judgment, to be prevented for a period of six consecutive months or more. 

(c) As a result of any changes in the Constitution of the State, the Constitution of the United States of
America, or state or federal laws or as a result of legislative or administrative action (whether state or federal) or by final decree, judgment or order of any court or administrative body (whether state or federal) entered after the contest
thereof by the Issuer or the Company in good faith, this Agreement shall have become void or unenforceable or impossible of performance in accordance with the intent and purpose of the parties as expressed in this Agreement, or if unreasonable
burdens or excessive liabilities shall have been imposed with respect to the Project or the operation thereof, including, without limitation, federal, state or other ad valorem, property, income or other taxes not being imposed on the date of this
Agreement other than ad valorem 

  
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taxes presently levied upon privately owned property used for the same general purpose as the Project. 

(d) Changes in the economic availability of raw materials, operating supplies, energy sources, labor,
equipment or supplies, or facilities necessary for the efficient operation of the Project for the Project Purposes shall have occurred or technological or other changes shall have occurred which the Company cannot reasonably overcome or control and
which in the Company’s reasonable judgment render the Project uneconomic for the Project Purposes. 

(e) In the event of a public offering with respect to the ownership interests of the Company, at a redemption
price of 100% of the principal amount redeemed, plus interest accrued to the redemption date. 
 To exercise the
Company’s option to redeem Bonds following the occurrence of one of the events listed in (a) through (e) immediately above, the Company shall, give notice to the Issuer and to the Trustee specifying the date on which the Company will
deliver the funds required for that redemption, which date shall be not more than ninety (90) days from the date that notice is mailed and shall make arrangements satisfactory to the Trustee for the giving of the required notice of redemption.

 To exercise the Company’s option to redeem Bonds following the occurrence of the event listed in
(e) immediately above, the Company shall, give notice to the Issuer and to the Trustee specifying the date on which the Company will deliver the funds required for that redemption, which redemption date shall be not more than ninety days from
the date that the event described in (d) occurred and shall make arrangements satisfactory to the Trustee for the giving of the required notice of redemption. 

The amount payable by the Company in the event of its exercise of the option granted in this Section shall be the sum of the
following: 
 (i) An amount of money which, when added to the moneys and investments held to the credit of
the Bond Fund and Bond Reserve Fund, will be sufficient pursuant to the provisions of the Indenture to pay, at par, and discharge all then outstanding Bonds on the earliest applicable redemption date, that amount to be paid to the Trustee, plus 

(ii) An amount of money equal to the Additional Payments relating to the Bonds accrued and to accrue until
actual final payment and redemption of the Bonds, that amount or applicable portions thereof to be paid to the Trustee or to the Persons to whom those Additional Payments are or will be due, exclusive of obligations under Section 8.2 hereof
which are not then due and payable. 
 The requirement of (ii) above with respect to Additional Payments to accrue may be met if
provisions satisfactory to the Trustee and the Issuer are made for paying those amounts as they accrue. 

  
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 The Company also shall have the option, in the event that title to or the
temporary use of a portion of the Project shall be taken under the exercise of the power of eminent domain, even if the taking is not of such nature as to permit the exercise of the redemption option upon an event specified in (b) above, to
direct the redemption, at a redemption price of 100% of the principal amount thereof prepaid, plus accrued interest to the redemption date, of that part of the outstanding principal balance of the Bonds as may be payable from the proceeds (after the
payment of costs and expenses incurred in the collection thereof) received in the eminent domain proceeding, provided, that, the Company shall furnish to the Issuer and the Trustee a certificate of a duly qualified independent engineer stating that
(1) the property comprising the part of the Project taken is not essential to continued operations of the Project in the manner existing prior to that taking, (2) the Project has been restored to a condition substantially equivalent to
that existing prior to the taking, or (3) other improvements have been acquired or made which are suitable for the continued operation of the Project. 

The rights and options granted to the Company in this Section may be exercised whether or not the Company is in default
hereunder; provided, that such default will not relieve the Company from performing those actions which are necessary to exercise any such right or option granted hereunder. 

Section 6.3. Mandatory Redemption in Event of Inclusion in Gross Income of Interest on Bonds. If, as provided in
the Bonds and the Indenture, the Bonds become subject to mandatory redemption because of the occurrence of a Determination of Taxability, the Company shall deliver to the Trustee, upon the date requested by the Trustee, but in no event upon less
than 90 days’ prior written notice, the moneys needed to pay the redemption price of the Bonds in accordance with the mandatory redemption provisions relating thereto set forth in the Bonds and the Indenture. 

Section 6.4. Other Mandatory Redemption. The Company shall deliver to the Trustee, but in no event upon less than
90 days’ prior written notice, the moneys needed to redeem the Bonds in accordance with any mandatory redemption provisions relating thereto as may be set forth in Section 4.01(c) of the Indenture. 

Section 6.5. Actions by Issuer. At the request of the Company or the Trustee, the Issuer shall take all steps
required of it under the applicable provisions of the Indenture or the Bonds to effect the redemption of all or a portion of the Bonds pursuant to this Article VI. 

ARTICLE VII 
 EVENTS OF
DEFAULT AND REMEDIES 
 Section 7.1. Events of Default. Each of the following shall be an Event of Default:

 (a) The Company shall fail to pay any Loan Payment on or prior to the date on which that Loan Payment is
due and payable and has failed to cure the same following ten days’ written notice; 
 (b) The Company
shall fail to deliver to the Trustee, or cause to be delivered on its behalf, the moneys needed to redeem any outstanding Bonds in the manner and 

  
 32 

 
upon the date requested in writing by the Trustee as provided in Section 6.3 or 6.4 of this Agreement and has failed to cure the same following ten days’ written notice; 

(c) The Company shall fail to observe and perform any other agreement, term or condition contained in this
Agreement, and the continuation of such failure for a period of thrty days after notice thereof shall have been given to the Company by the Issuer or the Trustee, or for such longer period as the Issuer and the Trustee may agree to in writing;
provided, that if the failure is other than the payment of money and is of such nature that it can be corrected but not reasonably within the applicable period, that failure shall not constitute an Event of Default so long as the Company institutes
curative action within the applicable period and diligently pursues that action to completion; 
 (d) The
Company shall: (i) admit in writing its inability to pay its debts generally as they become due; (ii) have an order for relief entered in any case commenced by or against it under the federal bankruptcy laws, as now or hereafter in effect;
(iii) commence a proceeding under any other federal or state bankruptcy, insolvency, reorganization or similar law, or have such a proceeding commenced against it and either have an order of insolvency or reorganization entered against it or
have the proceeding remain undismissed and unstayed for ninety days; (iv) make an assignment for the benefit of creditors; or (v) have a receiver or trustee appointed for it or for the whole or any substantial part of its property; 

(e) Any representation or warranty made by the Company herein or any statement in any report, certificate,
financial statement or other instrument furnished in connection with this Agreement or with the purchase of the Bonds shall at any time prove to have been false or misleading in any material respect when made or given; provided, however that if any
inaccuracy in any such representation or warranty is susceptible of being cured and has not caused or resulted in any damage to the Issuer, the Trustee or the Bondholders or created any impediment to the enforceability of the Issuer’s rights
hereunder, then the Company shall have the right to cure such inaccurate representation or warranty, and no Event of Default will be deemed to have occurred hereunder, during the Company’s good faith exercise of its efforts to cure, for a
period not to exceed 30 days after the commencement thereof, if the Company shall have notified the Issuer and the Trustee of the inaccuracy promptly after learning thereof, shall promptly thereafter have commenced a good faith effort to cure the
deficiency and shall be diligently pursuing the cure; 
 (f) Company shall suffer the entry of judgment
against it by any court of record for the payment of money in excess of $100,000 or shall suffer the issuance of a writ of attachment of any of its assets, and Company shall not discharge the same or provide for its discharge in accordance with its
terms, or procure a stay of execution thereon within sixty days from the date of entry thereof, unless execution thereon is effectively stayed pending further proceedings; 

(g) the occurrence of an event of default under the Indenture; and 

  
 33 

 (h) any event of default shall occur and be continuing under any
indebtedness secured by a Lien described in Sections 5.5(a)(vii) or (ix) hereof; provided, however, that no Event of Default shall be deemed to occur hereunder unless the Company fails to cure the event of default under the indebtedness secured
by a Lien described in Section 5.5(a) (vii) within sixty (60) days after such event of default occurs. 

Notwithstanding the foregoing, if, by reason of Force Majeure, the Company is unable to perform or observe any agreement, term
or condition hereof which would give rise to an Event of Default under subsection (c) hereof, the Company shall not be deemed in default during the continuance of such inability. However, the Company shall promptly give notice to the Trustee
and the Issuer of the existence of an event of Force Majeure and shall use its best efforts to remove the effects thereof; provided that the settlement of strikes or other industrial disturbances shall be entirely within its discretion. 

The term Force Majeure shall mean, without limitation, the following: 

(i) acts of God; strikes, lockouts or other industrial disturbances; acts of public enemies; orders or
restraints of any kind of the government of the United States of America or of the State or any of their departments, agencies, political subdivisions or officials, or any civil or military authority; insurrections; civil disturbances; riots;
epidemics; landslides; lightning; earthquakes; fires; hurricanes; tornadoes; storms; droughts; floods; arrests; restraint of government and people; explosions; breakage, malfunction or accident to facilities, machinery, transmission pipes or canals;
partial or entire failure of utilities; shortages of labor, materials, supplies or transportation; or 

(ii) any cause, circumstance or event not reasonably within the control of the Company. 

The declaration of an Event of Default under subsection (d) above, and the exercise of remedies upon any such
declaration, shall be subject to any applicable limitations of federal bankruptcy law affecting or precluding that declaration or exercise during the pendency of or immediately following any bankruptcy, liquidation or reorganization proceedings.

 Section 7.2. Remedies on Default. Whenever an Event of Default shall have happened and be subsisting, any one
or more of the following remedial steps may be taken: 
 (a) If acceleration of the principal amount of the
Bonds has been declared pursuant to Section 7.03 of the Indenture, the Trustee shall declare all Loan Payments to be immediately due and payable, whereupon the same shall become immediately due and payable; 

(b) The Issuer or the Trustee may have access to, inspect, examine and make copies of the books, records,
accounts and financial data of the Company pertaining to the Project; or 
 (c) The Issuer or the Trustee
may pursue those remedies (but only to the extent set forth in Section 4.1(a) above) now or hereafter existing at law or in equity to 

  
 34 

 
collect all amounts then due and thereafter to become due under this Agreement or the Security Agreement, or the Notes or to enforce the performance and observance of any other obligation or
agreement of the Company under those instruments. 
 Notwithstanding the foregoing, the Issuer shall not be obligated to
take any step which in its opinion will or might cause it to expend time or money or otherwise incur liability unless and until a satisfactory indemnity bond or other assurances has been furnished to the Issuer at no cost or expense to the Issuer.
Any amounts collected as Loan Payments or applicable to Loan Payments and any other amounts which would be applicable to payment of Bond Service Charges collected pursuant to action taken under this Section shall be paid and applied in accordance
with the provisions of Article VIII of the Indenture or, if the outstanding Bonds have been paid and discharged in accordance with the provisions of the Indenture, shall be paid as provided in Section 5.08 of the Indenture for transfers of
remaining amounts in the Bond Fund. 
 The provisions of this Section are subject to the further limitation that the
rescission by the Trustee of its declaration that all of the Bonds are immediately due and payable also shall constitute an annulment of any corresponding declaration made pursuant to paragraph (a) of this Section and a waiver and rescission of
the consequences of that declaration and of the Event of Default with respect to which that declaration has been made, provided that no such waiver or rescission shall extend to or affect any subsequent or other default or impair any right
consequent thereon. 
 Section 7.3. No Remedy Exclusive. No remedy conferred upon or reserved to the Issuer or
the Trustee by this Agreement is intended to be exclusive of any other available remedy or remedies, but each and every such remedy shall be cumulative and shall be in addition to every other remedy given under this Agreement or the Notes, or now or
hereafter existing at law, in equity or by statute (but only to the extent set forth in Section 4.l (a) above). No delay or omission to exercise any right or power accruing upon any default shall impair that right or power or shall be
construed to be a waiver thereof, but any such right and power may be exercised from time to time and as often as may be deemed expedient. In order to entitle the Issuer or the Trustee to exercise any remedy reserved to it in this Article, it shall
not be necessary to give any notice, other than any notice required by law or for which express provision is made herein. 

Section 7.4. Agreement to Pay Attorneys’ Fees and Expenses. If a default hereunder should occur and any party
hereto should incur expenses, including attorneys’ fees, in connection with the enforcement of this Agreement or the Notes or the collection of sums due thereunder, the prevailing party shall be reimbursed for the expenses and attorney’s
fees so incurred upon demand. 
 Section 7.5. No Waiver. No failure by the Issuer or the Trustee to insist upon
the strict performance by the Company of any provision hereof shall constitute a waiver of their right to strict performance and no express waiver shall be deemed to apply to any other existing or subsequent right to remedy the failure by the
Company to observe or comply with any provision hereof. 

  
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 Section 7.6. Notice of Default. The Company shall notify the Trustee
promptly if it becomes aware of the occurrence of any Event of Default hereunder or of any fact, condition or event which, with the giving of notice or passage of time or both, would become an Event of Default. 

Section 7.7. Remedies Subject to Provisions of Law. All rights, remedies and powers provided by this Article may
be exercised only to the extent that the exercise thereof does not violate any applicable provision of law, and all of the provisions of this Article are intended to be subject to all applicable mandatory provisions of law which may be controlling
and to be limited to the extent necessary so that they will not render this instrument or the provisions hereof invalid or unenforceable under the provisions of any applicable law. 

ARTICLE VIII 

MISCELLANEOUS 

Section 8.1. Reliance by Issuer on Facts or Certificates, Limitations of Actions. Anything in this Agreement to
the contrary notwithstanding, it is expressly understood and agreed by the parties hereto that (i) the Issuer may rely conclusively on the truth and accuracy of any certificate, opinion, notice, or other instrument furnished to the Issuer by
the Trustee or the Company as to the existence of any fact or state of affairs required hereunder to be noticed by the Issuer; (ii) the Issuer shall not be under any obligation hereunder to perform any record keeping or to provide any legal
services, it being understood that such services shall be performed either by the Trustee or the Company and (iii) none of the provisions of this Agreement shall require the Issuer to expend or risk its own funds or to otherwise incur financial
liability in the performance of any of its duties or in the exercise or any of its rights or powers hereunder, unless it shall first have been adequately indemnified to its satisfaction against the cost, expenses, and liability which may be incurred
thereby. 
 Section 8.2. Indemnity for and Immunity of Issuer’s and Trustee’s Directors, Officers,
Counsel, Financial Advisors, and Agents. (a) The Company agrees to pay, defend, and will protect, indemnify, and save each of the Issuer Indemnified Parties and the Trustee, the members of its Board of Directors, its officers, counsel and
agents (each a “Trustee Indemnified Party” and collectively, the “Trustee Indemnified Parties”) harmless for, from and against all Liabilities arising from or relating to the Bonds, the Loan of the proceeds of the Bonds, this
Agreement, the Project, the Indenture, or any document related to the issuance and sale and/or remarketing of the Bonds, except to the extent caused in whole or in part by the negligence or breach of duty of such Trustee Indemnified Party,
including, but not limited to, the following: 
 (i) Any injury to or death of any person or damage to
property in or upon the Project or growing out of or connected with the use, non-use, condition, or occupancy of the Project or any part thereof; 

(ii) Violation of any agreement, term or condition of this Agreement, the Note, or any other agreements,
certificates, contracts, or instruments executed by the ‘ Company in connection with the issuance of the Bonds or the financing of a portion of the expenses associated with the Project; 

  
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 (iii) Violation by the Company of any contract, agreement, or
restriction relating to the Project; 
 (iv) Violation by the Company of any law, ordinance, or regulation
affecting the Project or any part thereof or the ownership, occupancy, or use thereof; 
 (v) The issuance
and sale of the Bonds or any of them; and 
 (vi) Any statement, information, or certificate furnished by
the Company to the Issuer or the Trustee which is misleading, untrue, or incorrect in any respect. 
 (b)
The Company also agrees to pay, defend, protect, indemnify and hold harmless each of the Issuer Indemnified Parties for, from and against the Liabilities directly or indirectly arising from or relating to (i) any errors or omissions of any
nature whatsoever contained in any legal proceedings before or other official representation or inducement made to the Arizona Department of Commerce, the Issuer or the County pertaining to the Bonds (provided, however, nothing in this subsection
shall be deemed to provide the Issuer with indemnification for the Issuer’s negligence or breach of duty in connection with the issuance of the Bonds or omissions or misstatements contained in the Official Statement relating to the Bonds under
the captions “The Authority” or “Absence of Litigation” as it relates to the Issuer) and (ii) any fraud or misrepresentations or omissions by the Company and contained in the proceedings of the Arizona Department of
Commerce, the Issuer or the County relating to the issuance of the Bonds or pertaining to the financial condition of the Company which, if known to the Original Purchaser of the Bonds, might be considered a factor in its decision to purchase the
Bonds. 
 (c) This Section 8.2 is intended to provide indemnification to each Issuer Indemnified Party
and each Trustee Indemnified Party for their active or passive negligence or misconduct; provided, however, that nothing in subsections (a) and (b) above shall be deemed to provide indemnification to an Issuer Indemnified Party or a
Trustee Indemnified Party with respect to Liabilities successfully alleged to have arisen from the fraud, gross negligence, or willful misconduct of such Issuer Indemnified Party or Trustee Indemnified Party, as appropriate. 

(d) The Company agrees also to indemnify the Issuer Indemnified Parties, the Trustee Indemnified Parties, the
Bond Counsel, and each person, if any, who controls any of the foregoing within the meaning of Section 15 of the Securities Act of 1933 as amended, or Section 20 of the Securities Exchange Act of 1934, as amended (each an “Indemnified
Party” and all collectively the “Indemnified Parties”), for, from and against any and all Liabilities, caused by or in any way related to any untrue or misleading statement of a material fact by the Company contained in said Official
Statement or caused by any omission or alleged omission by the Company from said Official Statement of any material fact necessary to be stated therein in order to make the statements made therein, in light of the circumstances under which they were
made, not misleading, except insofar as such losses, claims, damages or liabilities are caused by any 

  
 37 

 
such untrue statement or information furnished in writing by a party other than the Company or information furnished in writing to the Company expressly for use therein by such Indemnified Party
or any other such person seeking indemnification from the Company. 
 The Original Purchaser agrees to
indemnify and hold harmless the Authority, the Authority’s directors, officers, employees, attorneys and agents, the Company, the Company’s officers and directors and each person, if any, who controls the Company within the meaning of
either Section 15 of the Securities Act of 1933 as amended, or Section 20 of the Securities Exchange Act of 1934, as amended to the same extent as the foregoing indemnity from the Company, but only with reference to information relating to
the Original Purchaser furnished to the Company by the Original Purchaser in writing expressly for use in said Official Statement. 

(e) For each person other than an Issuer Indemnified Party, in case any proceeding (including any governmental
investigation) shall be instituted involving any person entitled to indemnity pursuant to either of the two preceding paragraphs, such person (the “Indemnified Party”) shall promptly notify the person against whom such indemnity may be
sought (the “Indemnifying Party”) in writing and the Indemnifying Party, upon request of the Indemnified Party, shall retain counsel reasonably satisfactory to the Indemnified Party to represent the Indemnified Party and shall pay the
reasonable fees and disbursements of such counsel related to such proceeding. In any such proceeding, any Indemnified Party shall have the right to retain its own counsel, but the fees and expenses of such counsel shall be at the expense of such
Indemnified Party unless (i) the Indemnifying Party and the Indemnified Party shall have mutually agreed to the retention of such counsel, or (ii) the named parties to any such proceeding (including any impleaded parties) include both the
Indemnifying Party and the Indemnified Party and representation of both parties by the same counsel would be inappropriate due to actual or potential differing interests between them. It is understood that the Indemnifying Party shall not, in
respect of any Indemnified Party in connection with any proceeding or related proceedings in the same jurisdiction, be liable for the fees and expenses of more than one separate law firm (in addition to any local counsel) for all such Indemnified
Parties and that all such reasonable fees and expenses shall be reimbursed as they are incurred. 
 In the
event that any Indemnified Party retains counsel at the expense of the Indemnified Party pursuant to the second sentence of the prior paragraph, such firm shall be designated (i) in writing by Original Purchaser, in the case of parties
indemnified pursuant to the second paragraph of (d), and (ii) by the Issuer, Trustee, or Bond Counsel, as applicable, or in the case of parties indemnified pursuant to the first paragraph of (d) and subsections (a) and (b). The
Indemnifying Party shall not be liable for any settlement of any proceeding effected without its written consent, but if settled with such consent or if there be a final judgment for the plaintiff following exhaustion of all appeals, the
Indemnifying Party agrees to indemnify the Indemnified Party for, from and against any loss or liability by reason of such settlement or judgments. Notwithstanding the foregoing sentence, if at any time an Indemnified Party shall have requested an
Indemnifying Party to reimburse the Indemnified Party for fees and expenses of counsel 

  
 38 

 
as contemplated by the second and third sentences of this paragraph, the Indemnifying Party agrees that it shall be liable for any settlement of any proceeding effected without its consent if
(i) such settlement is entered into more than 30 days after receipt by such Indemnifying Party of the aforesaid request, and (ii) such Indemnifying Party shall not have reimbursed the Indemnified Party in accordance with such request prior
to the date of such settlement. No Indemnifying Party shall, without the prior written consent of the Indemnified Party, effect any settlement of any pending or threatened proceeding in respect of which any Indemnified Party is or could have been
sought hereunder by such Indemnified Party, unless such settlement includes an unconditional release of such Indemnified Party from all liability on claims that are the subject matter of such proceeding. 

(f) In case any proceeding (including any governmental investigation) shall be instituted involving any Issuer
Indemnified Party entitled to in respect of which indemnity pursuant to this Section 8.2, then the Issuer Indemnified Party shall promptly notify the Indemnifying Party in writing and the Indemnifying Party shall retain counsel reasonably
satisfactory to the Indemnified Party to represent the Issuer Indemnified Party and shall pay the reasonable fees and disbursements of such counsel related to such proceeding. In any such proceeding, any Issuer Indemnified Party shall have the right
to retain its own counsel, and the fees, costs and expenses of such counsel as well as any other reasonable fees, costs and expenses of the Issuer Indemnified Party in conducting its defense shall be at the expense of the Indemnifying Party. If the
Issuer Indemnified Party is advised in an opinion of counsel that there may be legal defenses available to it which are different from or in addition to those available to the Issuer Indemnifying Party or if the Issuer Indemnifying Party shall after
this notice and within a period of time necessary to preserve any and all defenses to any claim asserted, fails to assume the defense of or to employ counsel for that purpose satisfactory to the Issuer Indemnified Party, then the Issuer Indemnified
Party shall have the right, but not the obligation, to undertake the defense of, and to compromise or settle the claim or other matter on behalf of, for the account of, and at the risk of, the Indemnifying Party. 

No recourse shall be had for the enforcement of any obligation, covenant, promise, or agreement of the Issuer
contained in this Agreement, any other Issuer Documents, or in any Bond or for any claim based hereon or otherwise in respect hereof or upon any obligation, covenant, promise, or agreement of the Issuer contained in any agreement, instrument, or
certificate executed in connection with the Project or the issuance and sale of the Bonds, against any Issuer Indemnified Party whether by virtue of any Constitutional provision, statute, or rule of law, or by the enforcement of any assessment or
penalty or otherwise; it being expressly agreed and understood that no personal liability whatsoever shall attach to, or be incurred by, any Issuer Indemnified Party, either directly or by reason of any of the obligations, covenants, promises, or
agreements entered into between the Issuer and the Trustee or Company to be implied therefrom as being supplemental hereto or thereto, and that all personal liability of that character against every such director, officer, counsel, financial
advisor, or agent, is, by the execution of the Bonds, this Agreement, and the Indenture, and as a condition of, and as part of the consideration for, the execution of the Bonds, this Agreement, and the Indenture, expressly waived and released. 

  
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 (g) The Issuer Indemnified Parties, other than the Issuer, shall
be considered to be third party beneficiaries of this Agreement for purposes of Subsections (a) to (g) above and such provisions will be in addition to all liability which the Company may otherwise have and shall survive the payment in
full of the Bonds, discharge of the Indenture, and termination or expiration of this Agreement. 
 Section 8.3. No
Pecuniary Liability of the Issuer. No agreements or provisions contained herein nor any agreement, covenant, or undertaking by the Issuer in connection with the Project or the issuance, sale, remarketing and/or delivery of the Bonds shall give
rise to any pecuniary liability of the Issuer or a charge against its general credit, or shall obligate the Issuer financially in any way, except as may be payable from the revenues pledged hereby for the payment of the Bonds and their application
as provided in the Indenture. No failure of the Issuer to comply with any term, covenant, or agreement contained in the Bonds, this Agreement, indenture, or in any document executed by the Issuer in connection with the Project or the issuance and
sale of the Bonds, shall subject the Issuer to liability for any claim for damages, costs, or other financial or pecuniary charge, except to the extent that the same can be paid or recovered from the Revenues pledged for the payment of the Bonds or
other revenues derived under this Agreement. Nothing herein shall preclude a proper party in interest from seeking and obtaining, to the extent permitted by law, specific performance against the Issuer for any failure to comply with any term,
condition, covenant, or agreement herein; provided that no costs, expenses, or other monetary relief shall be recoverable from the Issuer, except as may be payable from the Revenues pledged in the Indenture for the payment of the Bonds or other
revenue derived under this Agreement. No provision, covenant, or agreement contained in, or any obligations imposed upon the Issuer, or the breach thereof, shall constitute an indebtedness of the Issuer within the meaning of any state constitutional
or statutory limitation or shall constitute or give rise to a charge against its general credit. In making the agreements, provisions, and covenants set forth in this Agreement, the Issuer has not obligated itself, except with respect to the
application of the Revenue pledged in the Indenture for the payment of the Bonds or other revenues derived under this Agreement. 

Section 8.4. Term of Agreement. This Agreement shall be and remain in full force and effect from the date of
delivery of the Bonds to the Original Purchaser until such time as all of the Bonds shall have been fully paid (or provision made for such payment) pursuant to the Indenture and all other sums payable by the Company under this Agreement and the
Notes shall have been paid, except for obligations of the Company under Sections 4.2, 6.3, and 8.2 hereof, and obligations of the Original Purchaser under Section 8.2(d) and (e) hereof, which shall survive any termination of this
Agreement. 
 Notwithstanding any termination of this Agreement, any payment of any or all of the Bonds or any discharge of
the Indenture, if a Determination of Taxability (as defined in the Indenture) shall occur with respect to any series of Bonds, the Company shall pay all additional amounts it is required to pay under subsection 4.01(c) of the Indenture at the time
provided therein. 
 Section 8.5. Amounts Remaining in Funds. Any amounts in the Bond Fund remaining unclaimed
by the Holders of Bonds for four years after the due date thereof (whether at stated maturity, by redemption or pursuant to any mandatory sinking fund requirements or 

  
 40 

 
otherwise), at the option of the Issuer, shall be deemed to belong to and shall be paid, at the written request of the Issuer, to the Issuer by the Trustee. With respect to that principal of and
any premium and interest on the Bonds to be paid from moneys paid to the Issuer pursuant to the preceding sentence, the Holders of the Bonds entitled to those moneys shall look solely to the Issuer for the payment of those moneys. Further, any
amounts remaining in the Bond Fund, the Project Fund and any other special funds or accounts created under this Agreement or the Indenture after all of the outstanding Bonds shall be deemed to have been paid and discharged under the provisions of
the Indenture and all other amounts required to be paid under this Agreement, the Notes and the Indenture have been paid, shall be paid to the Company to the extent that those moneys are in excess of the amounts necessary to effect the payment and
discharge of the outstanding Bonds. 
 Section 8.6. Notices. All notices, certificates, requests or other
communications hereunder shall be in writing and shall be deemed to be sufficiently given when mailed by First Class mail, postage prepaid, and addressed to the appropriate Notice Address. A duplicate copy of each notice, certificate, request or
other communication given hereunder to the Issuer, the Company or the Trustee shall also be given to the others. The Company, the Issuer and the Trustee, by notice given hereunder, may designate any further or different addresses to which subsequent
notices, certificates, requests or other communications shall be sent. 
 Section 8.7. Binding Effect. This
Agreement shall inure to the benefit of and shall be binding in accordance with its terms upon the Issuer, the Company and their respective permitted successors and assigns provided that this Agreement may not be assigned by the Company (except in
connection with a sale or transfer of assets pursuant to Section 5.3 hereof) and may not be assigned by the Issuer except to the Trustee pursuant to the Indenture or as otherwise may be necessary to enforce or secure payment of Bond Service
Charges. This Agreement may be enforced only by the parties, their assignees and others who may, by law, stand in their respective places. 

Section 8.8. Amendments and Supplements. Except as otherwise expressly provided in this Agreement or the
Indenture, subsequent to the issuance of the Bonds and prior to all conditions provided for in the Indenture for release of the Indenture having been met, this Agreement may not be effectively amended, changed, modified, altered or terminated except
in accordance with the provisions of Article XI of the Indenture. 
 Section 8.9. Execution Counterparts. This
Agreement may be executed in any number of counterparts, each of which shall be regarded as an original and all of which shall constitute but one and the same instrument. 

Section 8.10. Severability. If any provision of this Agreement, or any covenant, obligation or agreement contained
herein is determined by a court to be invalid or unenforceable, that determination shall not affect any other provision, covenant, obligation or agreement, each of which shall be construed and enforced as if the invalid or unenforceable portion were
not contained herein. That invalidity or unenforceability shall not affect any valid and enforceable application thereof, and each such provision, covenant, obligation or agreement shall be deemed to be effective, operative, made, entered into or
taken in the manner and to the full extent permitted by law. 

  
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 Section 8.11. Governing Law. This Agreement shall be deemed to be a
contract made under the laws of the State and for all purposes shall be governed by and construed in accordance with the laws of the State. 

Section 8.12. Nature of Company’s Obligations. To the extent permitted by law, no recourse shall be had for
the enforcement of any obligation, covenant, promise, or agreement of the Company contained in this Agreement or in any Bond or for any claim based hereon or otherwise in respect hereof or upon any obligation, covenant, promise, or agreement of the
Company contained in any agreement, instrument, or certificate executed in connection with the Project or the issuance and sale of the Bonds, against past, present or future member of the board of directors of the Company or its officers or agents,
employees, members or managers, whether by virtue of any Constitutional provision, statute, or rule of law, or by the enforcement of any assessment or penalty or otherwise; it being expressly agreed and understood that no personal liability
whatsoever shall attach to, or be incurred by, any such member, manager, officer or agent of the Company, either directly or by reason of any of the obligations, covenants, promises, or agreements entered into between the Company and the Trustee or
Issuer to be implied therefrom as being supplemental hereto or thereto, and that all personal liability of that character against every such member, manager, director, officer, or agent, is, by the execution of the Bonds, this Agreement, and the
Indenture, and as a condition of, and as part of the consideration for, the execution of the Bonds, this Agreement, and the Indenture, expressly waived and released. 

Section 8.13. Trustee’s Obligation under Indenture. The Issuer authorizes the Company, with the prior written
consent of the president or vice president of the Issuer, which consent will not be unreasonably withheld, to enforce, on behalf of, to the extent permitted by law, in the name of the Issuer, any obligations of the Trustee under the Indenture. The
Trustee is entering into this Agreement solely in its capacity as Trustee and all provisions of the indenture relating to the rights, privileges, powers and protections of the Trustee, including without limitation, those set forth in Article VI
thereof, shall apply with equal force and effect to all actions taken by the Trustee in connection with this Agreement. 

Section 8.14. Conflict of Interest. To the extent A.R.S. § 38-511 is applicable, all parties acknowledge that
the Issuer may, within three years after its execution, cancel this Agreement, without penalty or further obligation, if any person significantly involved in initiating, negotiating, securing, drafting, or creating of this Agreement on behalf of the
Issuer, is, at any time while this Agreement is in effect, an employee or agent of any other party in any capacity or a consultant to any other party to this Agreement with respect to the subject matter of this Agreement and the Issuer may recoup
any fee or commission paid or due any person significantly involved in initiating, negotiating, securing, drafting, or creating this Agreement on behalf of the Issuer, all as provided in Section 38-511,
Arizona Revised Statutes, as amended. 
 All parties represent that to the best of their knowledge, the parties are not in
violation of A.R.S. § 38-511 as of the date hereof. The Company covenants not to employ as an employee, an agent or, with respect to the subject matter of this Agreement, a consultant, any person significantly involved in initiating,
negotiating, securing, drafting or creating this Agreement on behalf of the Issuer within 3 years from execution of this Agreement, unless a waiver of A.R.S. § 38-511 is provided by the Board of Directors of the Issuer. 

  
 42 

 Section 8.15. Payments Due on Saturdays, Sundays and Holidays. If any
Loan Payment Date is a Saturday, Sunday or a day on which the Trustee is required, or authorized or not prohibited, by law (including without limitation, executive orders) to close and is closed, then payment need not be made by the Company on that
date, but that payment may be made on the next succeeding business day on which the Trustee is open for business with the same force and effect as if that payment were made on the Loan Payment Date. 

  
 43 

 IN WITNESS WHEREOF, the Issuer and the Company have caused this 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:
	 	 

  

		  		  		  	 Name:
	 	   Frank Y. Valenzuela

		  		  		  	 Title:
	 	   Treasurer

				
		  		  		  	 U.S. BANK NATIONAL ASSOCIATION,

as Trustee

					
		  		  		  	 By:
	 	 

  

		  		  		  	 Name:
	 	   Deborah M. Scherer

		  		  		  	 Title:
	 	   Assistant Vice President

				
		  		  		  	GLOBAL WATER RESOURCES, LLC
					
		  		  		  	 By:
	 	 

  

		  		  		  	 Name:
	 	   Trevor T. Hill

		  		  		  	 Title:
	 	   President/CEO

	
	 Hutchinson, Shockey, Erley & Co., as Original Purchaser, hereby agrees to comply with the provisions of
Section 8.2(d) and (e) applicable to the Original Purchaser.

				
		  		  		  	HUTCHINSON, SHOCKEY, ERLEY & CO.
					
		  		  		  	 By
	 	 

  

		  		  		  	 Name:
	 	   Brian J. O’Connor

		  		  		  	 Title
	 	   Senior Vice President

 EXHIBIT A 

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: 
 THIRTY SIX MILLION FOUR HUNDRED NINETY FIVE THOUSAND DOLLARS 

($36,495,000) 
 and to
pay interest on the unpaid balance of such principal sum from and after December 28, 2006 (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 Loan Agreement (the
“Agreement”), dated as of December 1, 2006, between The Industrial Development Authority of the County of Pima (the “Issuer”) and the Company. 

This Note has been executed and delivered by the Company to the Trustee pursuant to 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 $36,495,000 aggregate principal amount of Water and Wastewater Revenue Bonds (Global Water Resources, LLC Project),
Series 2006, dated December 28, 2006 (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 (the “Indenture”), dated as of December 1, 2006, between the Issuer and the Trustee. 

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 December 1 and June 1 commencing June 1, 2007 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 a
Security Agreement, dated as of December 1, 2006 from the Company to the Trustee. 

  
 A-2 

 IN WITNESS WHEREOF, the Company has caused this Note to be executed in its name
by its duly authorized officers on December 28, 2006. 
  

	
	 GLOBAL WATER RESOURCES, LLC        

	
	
By:                            
                                         

	
Name:                            
                                    

	
Title:                            
                                      

 SCHEDULE I 

LOAN PAYMENTS 

											
	 Date
	  	 Principal
	  	 Coupon
	  	 Interest
	  	 Period Total
	  	 Fiscal Total

	 6/1/7
	  		  		  	879,074.25	  	879,074.25	  	
	 12/1/7
	  		  		  	1,034,205.00	  	1,034,205.00	  	1,913,279.25
	 6/1/8
	  		  		  	1,034,205.00	  	1,034,205.00	  	
	 12/1/8
	  		  		  	1,034,205.00	  	1,034,205.00	  	2,068,410.00
	 6/1/9
	  		  		  	1,034,205.00	  	1,034,205.00	  	
	 12/1/9
	  		  		  	1,034,205.00	  	1,034,205.00	  	2,068,410.00
	 6/1/10
	  		  		  	1,034,205.00	  	1,034,205.00	  	
	 12/1/10
	  	705,000.00	  	5.450000	  	1,034,205.00	  	1,739,205.00	  	2,773,410.00
	 6/1/11
	  		  		  	1,014,993.75	  	1,014,993.75	  	
	 12/1/11
	  	745,000.00	  	5.450000	  	1,014,993.75	  	1,759,993.75	  	2,774,987.50
	 6/1/12
	  		  		  	994,692.50	  	994,692.50	  	
	 12/1/12
	  	790,000.00	  	5.450000	  	994,692.50	  	1,784,692.50	  	2,779,385.00
	 6/1/13
	  		  		  	973,165.00	  	973,165.00	  	
	 12/1/13
	  	835,000.00	  	5.450000	  	973,165.00	  	1,808,165.00	  	2,781,330.00
	 6/1/14
	  		  		  	950,411.25	  	950,411.25	  	
	 12/1/14
	  	880,000.00	  	5.450000	  	950,411.25	  	1,830,411.25	  	2,780,822.50
	 6/1/15
	  		  		  	926,431.25	  	926,431.25	  	
	 12/1/15
	  	930,000.00	  	5.450000	  	926,431.25	  	1,856,431.25	  	2,782,862.50
	 6/1/16
	  		  		  	901,088.75	  	901,088.75	  	
	 12/1/16
	  	985,000.00	  	5.450000	  	901,088.75	  	1,886,088.75	  	2,787,177.50
	 6/1/17
	  		  		  	874,247.50	  	874,247.50	  	
	 12/1/17
	  	1,040,000.00	  	5.450000	  	874,247.50	  	1,914,247.50	  	2,788,495.00
	 6/1/18
	  		  		  	845,907.50	  	845,907.50	  	
	 12/1/18
	  	1,100,000.00	  	5.600000	  	845,907.50	  	1,945,907.50	  	2,791,815.00
	 6/1/19
	  		  		  	815,107.50	  	815,107.50	  	
	 12/1/19
	  	1,170,000.00	  	5.600000	  	815,107.50	  	1,985,107.50	  	2,800,215.00
	 6/1/20
	  		  		  	782,347.50	  	782,347.50	  	
	 12/1/20
	  	1,240,000.00	  	5.600000	  	782,347.50	  	2,022,347.50	  	2,804,695.00
	 6/1/21
	  		  		  	747,627.50	  	747,627.50	  	
	 12/1/21
	  	1,315,000.00	  	5.600000	  	747,627.50	  	2,052,627.50	  	2,810,255.00
	 6/1/22
	  		  		  	710,807.50	  	710,807.50	  	
	 12/1/22
	  	1,390,000.00	  	5.600000	  	710,807.50	  	2,100,807.50	  	2,811,615.00
	 6/1/23
	  		  		  	671,887.50	  	671,887.50	  	
	 12/1/23
	  	1,475,000.00	  	5.750000	  	671,887.50	  	2,146,887.50	  	2,818,775.00
	 6/1/24
	  		  		  	629,481.25	  	629,481.25	  	
	 12/1/24
	  	1,565,000.00	  	5.750000	  	629,481.25	  	2,194,481.25	  	2,823,962.50
	 6/1/25
	  		  		  	584,487.50	  	584,487.50	  	
	 12/1/25
	  	1,665,000.00	  	5.750000	  	584,487.50	  	2,249,487.50	  	2,833,975.00
	 6/1/26
	  		  		  	536,618.75	  	536,618.75	  	
	 12/1/26
	  	1,770,000.00	  	5.750000	  	536,618.75	  	2,306,618.75	  	2,843,237.50
	 6/1/27
	  		  		  	485,731.25	  	485,731.25	  	
	 12/1/27
	  	1,880,000.00	  	5.750000	  	485,731.25	  	2,365,731.25	  	2,851,462.50
	 6/1/28
	  		  		  	431,681.25	  	431,681.25	  	
	 12/1/28
	  	1,995,000.00	  	5.750000	  	431,681.25	  	2,426,681.25	  	2,858,362.50
	 6/1/29
	  		  		  	374,325.00	  	374,325.00	  	
	 12/1/29
	  	2,125,000.00	  	5.750000	  	374,325.00	  	2,499,325.00	  	2,873,650.00
	 6/1/30
	  		  		  	313,231.25	  	313,231.25	  	
	 12/1/30
	  	2,265,000.00	  	5.750000	  	313,231.25	  	2,578,231.25	  	2,891,462.50
	 6/1/31
	  		  		  	248,112.50	  	248,112.50	  	
	 12/1/31
	  	2,410,000.00	  	5.750000	  	248,112.50	  	2,658,112.50	  	2,906,225.00

											
	 6/1/32
	  		  		  	178,825.00	  	178,825.00	  	
	 12/1/32
	  	6,220,000.00	  	5.750000	  	178,825.00	  	6,398,825.00	  	6,577,650.00
		  	  
	  		  	  
	  	  
	  	
		  	36,495,000.00	  		  	38,100,926.75	  	74,595,926.75	  	
	 ACCRUED
	  		  		  		  		  	
		  	36,495,000.00	  		  	38,100,926.75	  	74,595,926.75	  	
		  	  
	  		  	  
	  	  
	  	

 SCHEDULE II 

Dated:                 December 28, 2006 

Delivery:             December 28, 2006 

 

							
	Maturity
(December 1)	  	Principal
Amount	  	Interest Rate	  	CUSIP
(72177T)
				
	 2017
	  	$6,910,000	  	5.45%	  	AK 8
	 2022
	  	$6,215,000	  	5.60%	  	AL 6
	 2032
	  	$23,370,000	  	5.75%	  	AN 2

 EXHIBIT B 

PALO VERDE UTILITIES COMPANY 

PROJECT FACILITIES 

			
	 Global Water Resources. LLC
	  	
	 Santa Cruz Water Company (Northern Service Area)
	  	Bond 1
	 Palo Verde Utilities Company (Northern Service Area)
	  	$36,495,000
	 Major Capital lmprovements
	  	Lookback Started 22 August 2004

  

																	
	Description	  	Post 8/22/2004	 	  	2005	 	  	2006 (Q1 - Q3)	 	  	Total	 
	 	  	 	$          	  	  	 	$          	  	  	 	$          	  	  			 
	 Water
System Major Capital Improvements
	
  

	 				 
	 Water Distribution Centers
	  	 	53,084	  	  	 	189,544	  	  	 	1,934,229	  	  	 	2,176,858	  
	 Surface Water Treatment Facilities
	  	 	-	  	  	 	-	  	  	 	-	  	  	 	-	  
	 Well Development
	  	 	4,272	  	  	 	555,366	  	  	 	104,853	  	  	 	664,492	  
	 Pipelines
	  	 	695,124	  	  	 	2,580,320	  	  	 	1,723,653	  	  	 	4,999,097	  
	 SCADA
	  	 	37,632	  	  	 	238,159	  	  	 	462,995	  	  	 	738,786	  
	 Other
	  	 	420,589	  	  	 	235,511	  	  	 	38,321	  	  	 	694,421	  
	 	  				  				  				  			 
	 Water System
Subtotal
	  	 	1,210,702	  	  	 	3,798,900	  	  	 	4,264,051	  	  	 	9,273,653	  
	 	 	 	 	 
	     
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 
	Description	  	Post 8/22/2004	 	  	2005	 	  	2006 (Q1 - Q3)	 	  	Total	 
	 	  	 	$          	  	  	 	$          	  	  	 	$          	  	  			 
	 Sewer
System Major Capital Improvements
	
  

	 				 
	 Water Reclamation Facilities
	  	 	837,830	  	  	 	10,499,496	  	  	 	2,238,597	  	  	 	13,575,923	  
	 Lift Stations
	  	 	35,572	  	  	 	542,485	  	  	 	103,755	  	  	 	681,813	  
	 Reclaimed Water Distribution Centers
	  	 	-	  	  	 	-	  	  	 	-	  	  	 	-	  
	 Recharge Facilities
	  	 	-	  	  	 	8,287	  	  	 	-	  	  	 	8,287	  
	 Pipelines
	  	 	3,458,905	  	  	 	5,774,228	  	  	 	1,958,299	  	  	 	11,191,432	  
	 SCADA
	  	 	-	  	  	 	238,720	  	  	 	137,158	  	  	 	375,878	  
	 Other
	  	 	117,368	  	  	 	430,848	  	  	 	49,723	  	  	 	597,939	  
	 	  				  				  				  			 
	 Sewar System
Subtotal
	  	 	4,449,676	  	  	 	17,494,064	  	  	 	4,487,532	  	  	 	26,431,272	  
	 	 	 	 	 
	     
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 
	 COMBINED UTILITY TOTAL
	  	 	5,660,378	  	  	 	21,292,964	  	  	 	8,751,583	  	  	 	35,704,925	  
	 	 

									
	 Palo Verde Utilities Co Capital Expenditures
	  				 			
		  				 			
	 	  	 	 	 	    Post 8/22/2004    	 
	 Pipelines
	  				 			
	 Fixed Assets Under Construction:30” Sewer Ln-Wash So of Vlgs
	  				 	$	(0.00	) 
	 Fixed Assets Under Construction:Cobb - Parcel VIII
	  				 	$	-    	  
	 Fixed Assets Under Construction:Cobb Force Main
	  				 	$	5,808.95	  
	 Fixed Assets Under Construction:Cobb Reclaimed Wtr
	  				 	$	9,316.23	  
	 Fixed Assets Under Construction:Cobb Sewer Backbone
	  				 	$	17,766.84	  
	 Fixed Assets Under Construction:CVS Pharmacy
	  				 	$	-    	  
	 Fixed Assets Under Construction:Engle Province Backbone
	  				 	$	90.00	  
	 Fixed Assets Under Construction:MA04001-PV01 48” Offsite Sewer
	  				 	$	725,437.61	  
	 Fixed Assets Under Construction:MA04004 Reclaimed in Porter Rd
	  				 	$	4,844.21	  
	 Fixed Assets Under Construction:MA04004 Sewer in Porter Rd
	  				 	$	956,609.48	  
	 Fixed Assets Under Construction:MA04005 Honeycutt Sewer
	  				 	$	916.50	  
	 Fixed Assets Under Construction:MA04005 Reclaimed in Honeycutt
	  				 	$	18.27	  
	 Fixed Assets Under Construction:MA04006 24” Reclaimed
	  				 	$	593,424.74	  
	 Fixed Assets Under Construction:MA04006 30” Sewer
	  				 	$	833,116.59	  
	 Fixed Assets Under Construction:MA04007 CVS Side Sewer
	  				 	$	460.00	  
	 Fixed Assets Under Construction:MA04010 18” Reclaimed in S-E
	  				 	$	1,812.00	  
	 Fixed Assets Under Construction:MA04010 42” Sewer in S-E Rd
	  				 	$	3,656.69	  
	 Fixed Assets Under Construction:MA04015 Bowlin Road Sewer
	  				 	$	4,091.14	  
	 Fixed Assets Under Construction:MA04019 24” Reclaimed SR Wash
	  				 	$	285,318.31	  
	 Fixed Assets Under Construction:RecI Water in S-E;Porter - Hmst
	  				 	$	-    	  
	 Fixed Assets Under Construction:Reclaimed Water-WWTP to S-E
	  				 	$	-    	  
	 Fixed Assets Under Construction:Reclaimed Water Line-Vlgs/Prov
	  				 	$	(10,568.76	) 
	 Fixed Assets Under Construction:RED IIB - Parcel 27
	  				 	$	1,176.24	  
	 Fixed Assets Under Construction:RED IIB - Parcel 9
	  				 	$	-    	  
	 Fixed Assets Under Construction:RED Water
	  				 	$	-    	  
	 Fixed Assets Under Construction:sewer 48” Smith-Enke to WTTP
	  				 	$	-    	  
	 Fixed Assets Under Construction:Sewer in S-E;Porter - Hmstd No.
	  				 	$	-    	  
	 Fixed Assets Under Construction:Sewer Main Extension
	  				 	$	-    	  
	 Fixed Assets Under Construction:State of Arizona Easement
	  				 	$	-    	  
	 Fixed Assets Under Construction:Surveying
	  				 	$	-    	  
	 Fixed Assets Under Construction:Villages - Parcel 10
	  				 	$	1,120.56	  
	 Fixed Assets Under Construction:Villages - Parcel 13B
	  				 	$	587.76	  
	 Fixed Assets Under Construction:Villages - Parcel 5
	  				 	$	1,703.76	  
	 Fixed Assets Under Construction:ViIlages - Parcel 6
	  				 	$	1,219.20	  
	 Fixed Assets Under Construction:Villages - Parcel 7
	  				 	$	1,734.00	  
	 Fixed Assets Under Construction:Villages - Parcel 8
	  				 	$	721.50	  
	 Fixed Assets Under Construction:Villages - Parcel 9
	  				 	$	300.00	  
	 Fixed Assets Under Construction:Villages Backbone
	  				 	$	16,823.16	  
	 Fixed Assets Under Construction:Villages Backbone:Sewer Staking
	  				 	$	1,400.00 	  
		  	 	Total Pipeline	  	 	$	        3,458,904.98	  
			
	 Lift Stations
	  				 			
	 Fixed Assets Under Construction:Cobb Pump Station
	  				 	$	12,150.50	  
	 Fixed Assets Under Construction:Lift Station Fence & Gate
	  				 	$	-    	  
	 Fixed Assets Under Construction:MA04013 New Influent Lift Stn
	  				 	$	22,840.99	  
	 Fixed Assets Under Construction:RED Lift Station
	  				 	$	580.90 	  
		  	 	Total Liftstation	  	 	$	35,572.39	  

  

							
	 Water Reclamation Facilities
	  		  			
	 Fixed Assets Under Construction:Generator for WWTP II
	  	 $
	  	 	-    	  
	 Fixed Assets Under Construction:Lagoon Closure
	  	 $
	  	 	5,361.48	  
	 Fixed Assets Under Construction:MA04003 Effluent Reuse Area
	  	 $
	  	 	-    	  
	 Fixed Assets Under Construction:MA04012 WWTP Expansion
	  	 $
	  	 	14,100.56	  
	 Fixed Assets Under Construction:MA04012 WWTP Expansion:Construction Trailer
	  	 $
	  	 	5,832.96	  
	 Fixed Assets Under Construction:MA04012 WWTP Expansion:Design Svcs
	  	 $
	  	 	750,000.00	  
	 Fixed Assets Under Construction:MA04012 WWTP Expansion:Engineering
	  	 $
	  	 	5,434.94	  
	 Fixed Assets Under Construction:MA04012 WWTP Expansion:Misc Soft Costs III
	  	 $
	  	 	7,157.70	  
	 Fixed Assets Under Construction:WWTP Ph II
	  	 $
	  	 	4,260.81	  
	 Fixed Assets Under Construction:WWTP Ph ll:Auto Sampler
	  	 $
	  	 	1,836.03	  
	 Fixed Assets Under Construction:WWTP Ph ll:Engineering
	  	 $
	  	 	23.48	  
	 Fixed Assets Under Construction:WWTP Ph ll:Laboratory Equipment
	  	 $
	  	 	9,842.12	  
	 Fixed Assets Under Construction:WWTP Ph ll:Mechanical
	  	 $
	  	 	-    	  
	 Fixed Assets Under Construction:WWTP Ph ll:Plant Equipment
	  	 $
	  	 	31,299.62	  
	 Fixed Assets Under Construction:WWTP Ph ll:Signage
	  	 $
	  	 	-    	  
	 Fixed Assets Under Construction:WWTP Ph ll:Start-Up
	  	 $
	  	 	0.00	  
	 Fixed Assets Under Construction:WWTP Ph ll:Telephone System
	  	 $
	  	 	2,680.58	  
	 Fixed Assets Under Construction:WWTP Ph ll:Temp Elec Pwr
	  	 $
	  	 	-    	  
	 Fixed Assets Under Construction:WWTP Ph ll:Tools
	  	 $
	  	 	-    	  
	 Fixed Assets Under Construction:WWTP Ph ll:Water 
	  		  	 	-    	  
		  	 Total WRF  $
	  	 	837,830.28	  
			
	 Other
	  		  			
	 Fixed Assets Under Construction
	  	 $
	  	 	-    	  
	 Fixed Assets Under Construction:208 Amendment
	  	 $
	  	 	-    	  
	 Fixed Assets Under Construction:APP Permit
	  	 $
	  	 	6,000.00	  
	 Fixed Assets Under Construction:CCN Expense
	  	 $
	  	 	69,474.28	  
	 Fixed Assets Under Construction:Development
	  	 $
	  	 	-    	  
	 Fixed Assets Under Construction:Effluent Management Design
	  	 $
	  	 	-    	  
	 Fixed Assets Under Construction:Engineering Review (financing)
	  	 $
	  	 	-    	  
	 Fixed Assets Under Construction:MA04000 Misc Capital Costs
	  	 $
	  	 	3,162.94	  
	 Fixed Assets Under Construction:MA04017 SCADA
	  	 $
	  	 	36,885.51	  
	 Fixed Assets Under Construction:Misc Soft Costs
	  	 $
	  	 	(6,985.86	) 
	 Fixed Assets Under Construction:Safety Equipment
	  	 $
	  	 	-    	  
	 Fixed Assets Under Construction:Scanner
	  	 $
	  	 	-    	  
	 Fixed Assets Under Construction:Sewer Master Plan
	  	 $
	  	 	1,105.00	  
	 Fixed Assets Under Construction:Soft Costs - Misc.
	  	 $
	  	 	-    	  
	 Fixed Assets Under Construction:Telephones
	  	 $
	  	 	7,233.19	  
	 Fixed Assets Under Construction:Vehicles
	  	 $
	  	 	(6.82	) 
	 Fixed Assets Under Construction:Website
	  	 $
	  	 	500.00 	  
		  	 Total Other  $
	  	 	    117,368.24	  

  

							
		  		  			
		  		  	  
	  
	 
		  		  	 	            4,449,675.89	  
		  		  	  
	  
	 

											
	 	  	 Global Water Resources,
LLC                    
 Palo Verde
Utilities Company                    
 Major
Capital Improvements                    
	 
		  		  	 	 	 	  	 	 	 
		  		  	 	 	 	  	 	 	 
	 Project Number
	  	Description	  	2005	 	  	2006 - Q1-Q3	 
		  		  	 	$	  	  	 	$	  
		  	Sewer System Major Capital Improvements	  				  			
				
		  	Water Reclamation Facilities	  				  			
	 202-04-009
	  	Convert Existing Lagoons	  	 	12,078	  	  	 	35,223	  
	 202-04-012
	  	Palo Verde WRF Expansion	  	 	10,416,458	  	  	 	2,203,374	  
	 202-05-701
	  	Maricopa WRP No. 1 (1 MGD)	  	 	52,292	  	  	 	-	  
	 202-05-702
	  	Maricopa WRP No. 2 (5 MGD)	  	 	18,668	  	  	 	-	  
		  	Subtotal	  	 	10,499,496	  	  	 	2,238,597	  
				
		  	Lift Stations	  				  			
	 202-04-013
	  	Influent Pump Station at PVUC WRF	  	 	97,792	  	  	 	28,133	  
	 202-05-017
	  	Upgrades at the Influent Lift Station	  	 	1,290	  	  	 	-	  
	 202-05-072
	  	Tortosa Lift Station	  	 	-	  	  	 	2,514	  
	 202-05-703
	  	Maricopa Groves Lift Station & Force Main	  	 	30,749	  	  	 	50,707	  
	 202-05-704
	  	McDavid Lift Station & Force Main 	  	 	118,596	  	  	 	6,855	  
	 202-05-706
	  	Alterra Lift Station & Force Main	  	 	282,011	  	  	 	15,546	  
	 202-05-708
	  	Smith Farms LS & FM (incl Gravity)	  	 	12,047	  	  	 	-	  
		  	Subtotal	  	 	542,485	  	  	 	103,755	  
				
		  	Reclaimed Water Distribution Centers	  				  			
	 202-XX-XX
	  	Reclaimed Water Distribution Centers & Pipelines 	  	 	-	  	  	 	-	  
		  	Subtotal	  	 	-	  	  	 	-	  
				
		  	Recharge Facilities	  				  			
	 202-05-034
	  	Recharge Wells	  	 	8,287	  	  	 	-	  
		  	Subtotal	  	 	8,287	  	  	 	-	  
				
		  	Pipelines	  				  			
	 202-04-001
	  	48” Offsite Gravity Sewer at Rancho El Dorado	  	 	247,889	  	  	 	-	  
	 202-04-004
	  	24” Gravity Sewer and 18” Reclaimed in Porter Road (Smith Enke to Bowlin)	  	 	876,990	  	  	 	-	  
	 202-04-005
	  	18” Sewer Extention East on Honeycutt Road to Glennwilde Drive	  	 	268,299	  	  	 	-	  
	 202-04-006
	  	30” Gravity Sewer and 24” Reclaimed in Santa Rosa Wash	  	 	982,257	  	  	 	-	  
				
	 202-04-010
	  	42” Gravity Sewer and 18” Reclaimed in Smith Enke Road (Porter to East)	  	 	275,621	  	  	 	-	  
	 202-04-015
	  	Bowlin Rd Utilities (Santa Rosa Wash to Dunn Ranch)	  	 	1,039,180	  	  	 	19,933	  
	 202-04-019
	  	24” Reclaimed in Santa Rosa Wash (Smith Enke to South)	  	 	28,061	  	  	 	-	  
				
	 202-04-021
	  	Province Ph II Sewer Main	  	 	52,006	  	  	 	-	  
	 202-04-026
	  	Honeycutt Utilities (Porter to Fuqua)	  	 	820,385	  	  	 	54,059	  

											
	 202-05-008
	  	Bowlin Rd Utilities (Dunn Ranch to SR 347)	  	 	286,130	  	  	 	203	  
	 202-05-010
	  	Fuqua Utilities (Honeycutt to Bowlin)	  	 	502,705	  	  	 	-	  
	 202-05-021
	  	SR 347 (Bowlin to Palo Brea)	  	 	8,633	  	  	 	752,749	  
	 202-05-023
	  	DR Horton Reclaimed Line	  	 	3,493	  	  	 	120,874	  
	 202-05-024
	  	Bowlin Rd Utilities (Porter to Smith Farms)	  	 	156,301	  	  	 	1,277	  
	 202-05-027
	  	Smith-Enke Rd Utilities (DR Horton to White & Parker)	  	 	3,365	  	  	 	265,552	  
	 202-05-038
	  	Bowlin Rd Utilities (White & Parker to Hartman)	  	 	4,369	  	  	 	310,044	  
	 202-05-040
	  	Maricopa Library	  	 	55,002	  	  	 	-	  
	 202-05-049
	  	Porter Rd Utilities (Bowlin to Farrell)	  	 	12,222	  	  	 	-	  
	 202-05-050
	  	Sorrento Reclaimed Water Line	  	 	54	  	  	 	119,859	  
	 202-05-052
	  	RED Phase 3 Reclaimed Water Line	  	 	2,875	  	  	 	45,559	  
	 202-05-053
	  	Palo Brea Reclaimed Water Line	  	 	2,813	  	  	 	233,034	  
	 202-05-056
	  	Maricopa Business Center	  	 	-	  	  	 	15,471	  
	 202-05-709
	  	Honeycutt Alterra FM	  	 	5,609	  	  	 	-	  
	 202-05-710
	  	24” Sewer in Honeycutt West	  	 	15,057	  	  	 	-	  
	 202-05-711
	  	24” Sewer in Honeycutt East	  	 	6,227	  	  	 	-	  
	 202-05-714
	  	McDavid Utilities	  	 	23,269	  	  	 	-	  
	 202-05-715
	  	12” Reclaimed in Honeycutt West	  	 	94,604	  	  	 	-	  
	 202-05-716
	  	12” Reclaimed in Honeycutt East	  	 	813	  	  	 	-	  
	 202-06-010
	  	Eagle Shadow Sanitary Sewer	  	 	-	  	  	 	14,241	  
	 202-06-012
	  	Bowlin Rd Utilities (White & Parker to Fuqua)	  	 	-	  	  	 	5,444	  
		  	Subtotal	  	 	5,774,228	  	  	 	1,958,299	  
				
		  	SCADA	  				  			
	 202-04-017
	  	SCADA	  	 	78,621	  	  	 	-	  
	 202-05-717
	  	SCADA	  	 	160,099	  	  	 	-	  
	 202-06-004
	  	SCADA 	  	 	-	  	  	 	137,158	  
		  	Subtotal	  	 	238,720	  	  	 	137,158	  
				
		  	Other	  				  			
	 202-04-020
	  	Palo Verde WRF 9 MGD APP Amendment	  	 	142,365	  	  	 	-	  
	 202-04-025
	  	SMFD CAAG 208 Amendment (West)	  	 	34,479	  	  	 	-	  
	 202-05-000
	  	Miscellaneous Projects - 2005 	  	 	192,081	  	  	 	-	  
	 202-05-005
	  	North Area Master Plan Update	  	 	12,413	  	  	 	-	  
	 202-05-018
	  	Southeast Area CAAG 208 Amendment	  	 	9,237	  	  	 	-	  
	 202-05-019
	  	Regional Sewer Master Plan	  	 	7,757	  	  	 	-	  
	 202-05-051
	  	Consolidated 208 Plan Amendment	  	 	-	  	  	 	49,723	  
	 202-05-061
	  	Odor Control @ RED Lift Station	  	 	19,175	  	  	 	-	  
	 202-05-999
	  	Conveyance Costs - 2005	  	 	13,342	  	  	 	-	  
	 202-XX-XXX
	  	Other (Future)	  	 	-	  	  	 	-	  
		  	Subtotal	  	 	430,848	  	  	 	49,723	  
				
		  	Total Sewer Major Capital Projects	  	 	17,494,064	  	  	 	4,487,532	  
		  		  	  
	  
	 
		  	(Excluding GWM Fee)	  				  			

 EXHIBIT C 

SANTA CRUZ WATER COMPANY 

PROJECT FACILITIES 

			
	Global Water Resources, LLC	  	
	Santa Cruz Water Company (Northern Service Area)	  	Bond 1
	Palo Verde Utilities Company (Northern Service Area)	  	$36,495,000
	Major Capital Improvements	  	Lookback Started 22 August 2004

  

																	
	Description	  	Post 8/22/2004	 	  	2005	 	  	2006 (Q1 - Q3)	 	  	Total	 
	  	  	$	 	  	$	 	  	$	 	  	 	 
	 Water System Major
Capital Improvements
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 
	 				 
	 Water Distribution Centers
	  	 	53,084	  	  	 	189,544	  	  	 	1,934,229	  	  	 	2,176,858	  
	 Surface Water Treatment Facilities
	  	 	-	  	  	 	-	  	  	 	-	  	  	 	-	  
	 Well Development
	  	 	4,272	  	  	 	555,366	  	  	 	104,853	  	  	 	664,492	  
	 Pipelines
	  	 	695,124	  	  	 	2,580,320	  	  	 	1,723,653	  	  	 	4,999,097	  
	 SCADA
	  	 	37,632	  	  	 	238,159	  	  	 	462,995	  	  	 	738,786	  
	 Other
	  	 	420,589	  	  	 	235,511	  	  	 	38,321	  	  	 	694,421	  
	 	  				  				  				  			 
	 Water System
Subtotal
	  	 	1,210,702	  	  	 	3,798,900	  	  	 	4,264,051	  	  	 	9,273,653	  
	 	  				  				  				  			 
	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 
	Description	  	Post 8/22/2004	 	  	2005	 	  	2006 (Q1 - Q3)	 	  	Total	 
	  	  	$	 	  	$	 	  	$	 	  	 	 
	 Sewer System Major
Capital Improvements
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 
	 				 
	 Water Reclamation Facilities
	  	 	837,830	  	  	 	10,499,496	  	  	 	2,238,597	  	  	 	13,575,923	  
	 Lift Stations
	  	 	35,572	  	  	 	542,485	  	  	 	103,755	  	  	 	681,813	  
	 Reclaimed Water Distribution Centers
	  	 	-	  	  	 	-	  	  	 	-	  	  	 	-	  
	 Recharge Facilities
	  	 	-	  	  	 	8,287	  	  	 	-	  	  	 	8,287	  
	 Pipelines
	  	 	3,458,905	  	  	 	5,774,228	  	  	 	1,958,299	  	  	 	11,191,432	  
	 SCADA
	  	 	-	  	  	 	238,720	  	  	 	137,158	  	  	 	375,878	  
	 Other
	  	 	117,368	  	  	 	430,848	  	  	 	49,723	  	  	 	597,939	  
	 	  				  				  				  			 
	 Sewar System
Subtotal
	  	 	4,449,676	  	  	 	17,494,064	  	  	 	4,487,532	  	  	 	26,431,272	  
	 	  				  				  				  			 
	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 
	 COMBINED UTILITY TOTAL
	  	 	5,660,378	  	  	 	21,292,964	  	  	 	8,751,583	  	  	 	35,704,925	  
	 	 

									
	 Santa Cruz Water Co.
	  		 		  			
		  		 	Post 8/22/2004	  
				
	 Pipeline
	  		 		  			
	 Fixed Asset Under Construction: 16” Potable Line-Smith-Enke Rd
	  		 	$	  	 	-    	  
	 Fixed Asset Under Construction:Cobblestone Water Backbone
	  		 	$	  	 	17,774.67	  
	 Fixed Asset Under Construction:Conveyance:331-Trans & Dist Mains:Villages Parcel 11
	  		 	$	  	 	-    	  
	 Fixed Asset Under Construction:Conveyance:331-Trans & Dist Mains:Villages Parcel 14
	  		 	$	  	 	-    	  
	 Fixed Asset Under Construction:Conveyance:333-Services:Villages Parcel 11
	  		 	$	  	 	-    	  
	 Fixed Asset Under Construction:Conveyance:333-Services:Villages Parcel 14
	  		 	$	  	 	-    	  
	 Fixed Asset Under Construction:Conveyance:335-Hydrants:Villages Parcel 11
	  		 	$	  	 	-    	  
	 Fixed Asset Under Construction:Conveyance:335-Hydrants:Villages Parcel 14
	  		 	$	  	 	-    	  
	 Fixed Asset Under Construction:CVS In-Parcel
	  		 	$	  	 	0.00	  
	 Fixed Asset Under Construction:Edison Road Water Line
	  		 	$	  	 	(0.00	) 
	 Fixed Asset Under Construction:Engle Province Backbone
	  		 	$	  	 	-    	  
	 Fixed Asset Under Construction:Honeycutt Rd Water Line
	  		 	$	  	 	-    	  
	 Fixed Asset Under Construction:Hydrant Backflow Preventors
	  		 	$	  	 	1,209.84	  
	 Fixed Asset Under Construction:MA04004 16” line in Porter Rd
	  		 	$	  	 	321,259.30	  
	 Fixed Asset Under Construction:MA04006 16” Water Line
	  		 	$	  	 	219,142.89	  
	 Fixed Asset Under Construction:MA04008 10” Brine Line
	  		 	$	  	 	72,620.25	  
	 Fixed Asset Under Construction:MA04010 lines in S-E Rd
	  		 	$	  	 	1,134.04	  
	 Fixed Asset Under Construction:MA04015 Bowlin Road
	  		 	$	  	 	794.00	  
	 Fixed Asset Under Construction:MA04022 Raw line at Porter Well
	  		 	$	  	 	22.25	  
	 Fixed Asset Under Construction:Porter Rd Well
	  		 	$	  	 	7,837.42	  
	 Fixed Asset Under Construction:Province - Parcel 6
	  		 	$	  	 	78.75	  
	 Fixed Asset Under Construction:Smith-Enke Raw Water Line
	  		 	$	  	 	93.91	  
	 Fixed Asset Under Construction:Smith-Enke Raw Water Line:Soft Costs (Lgl & Engg)
	  		 	$	  	 	15.00	  
	 Fixed Asset Under Construction:SR347 to State Land
	  		 	$	  	 	-    	  
	 Fixed Asset Under Construction:State of Arizona Easement
	  		 	$	  	 	-    	  
	 Fixed Asset Under Construction:Villages - Parcel 10
	  		 	$	  	 	-    	  
	 Fixed Asset Under Construction:Villages - Parcel 11
	  		 	$	  	 	-    	  
	 Fixed Asset Under Construction:Villages - Parcel 13B
	  		 	$	  	 	-    	  
	 Fixed Asset Under Construction:Villages - Parcel 5
	  		 	$	  	 	-    	  
	 Fixed Asset Under Construction:Villages - Parcel 6
	  		 	$	  	 	-    	  
	 Fixed Asset Under Construction:Villages - Parcel 7
	  		 	$	  	 	-    	  
	 Fixed Asset Under Construction:Villages - Parcel 8
	  		 	$	  	 	-    	  
	 Fixed Asset Under Construction:Villages - Parcel 9
	  		 	$	  	 	-    	  
	 Fixed Asset Under Construction:Villages Backbone
	  		 	$	  	 	51,938.50	  
	 Fixed Asset Under Construction:Villages Backbone:Staking
	  		 	$	  	 	-    	  
	 Fixed Asset Under Construction:Villages Honeycutt Rd Water Lns
	  		 	$	  	 	-    	  
	 Fixed Asset Under Construction:Villages Raw Wtr
	  		 	$	  	 	1,203.51	  
	 Fixed Asset Under Construction:Wtr lines at School
	  		 	$	  	 	-    	  
		  	Total Pipelines	 	$	  	 	695,124.33	  
				
	 Water Distribution Centers
	  		 		  			
	 Fixed Asset Under Construction:Chemical Feed System
	  		 	$	  	 	229.70	  
	 Fixed Asset Under Construction:Equipment
	  		 	$	  	 	721.65	  
	 Fixed Asset Under Construction:Laboratory Equipment
	  		 	$	  	 	2,099.24	  
	 Fixed Asset Under Construction:MA04-011 Heat Load Reduct WTP
	  		 	$	  	 	10,419.50	  
	 Fixed Asset Under Construction:MA04014 Arsenic Project
	  		 	$	  	 	9,214.06	  
	 Fixed Asset Under Construction:Signage
	  		 	$	  	 	561.05	  
	 Fixed Asset Under Construction:Test Equipment
	  		 	$	  	 	-    	  

									
	 Fixed Asset Under Construction:WTP - Plant Equipment
	  		  	$	  	 	395.10	  
	 Fixed Asset Under Construction:WTP - Pumps
	  		  	$	  	 	6,617.15	  
	 Fixed Asset Under Construction:WTP - Water Service
	  		  	$	  	 	6,617.15	  
	 Fixed Asset Under Construction:Office Furniture & Fixtures
	  		  	$	  	 	16,209.57	  
		  	Total Water Distribution Centers	  	$	  	 	53,084.17	  
				
	 Wells
	  		  		  			
	 Fixed Asset Under Construction:Cobblestone Well (South)
	  		  	$	  	 	1,596.60	  
	 Fixed Asset Under Construction:Honeycutt Well
	  		  	$	  	 	-    	  
	 Fixed Asset Under Construction:MA04018 Smith Well lnfr Upgrade
	  		  	$	  	 	-    	  
	 Fixed Asset Under Construction:Smith Well
	  		  	$	  	 	2,675.70	  
	 Fixed Asset Under Construction:Vance Well
	  		  	$	  	 	-    	  
		  	Total Wells	  	$	  	 	4,272.30	  
				
	 SCADA
	  		  		  			
	 Fixed Asset Under Construction:MA040007 SCADA
	  		  	$	  	 	2,019.08	  
	 Fixed Asset Under Construction.MA04017 SCADA
	  		  	$	  	 	35,612.57	  
		  	Total SCADA	  	$	  	 	37,631.65	  
				
	 Other
	  		  		  			
	 Fixed Asset Under Construction
	  		  	$	  	 	-    	  
	 Fixed Asset Under Construction:334 - Hydrant Meters 3”
	  		  	$	  	 	-    	  
	 Fixed Asset Under Construction:CCN Expense
	  		  	$	  	 	62,065.33	  
	 Fixed Asset Under Construction:Database Software
	  		  	$	  	 	1,125.93	  
	 Fixed Asset Under Construction:Developrnent
	  		  	$	  	 	-    	  
	 Fixed Asset Under Construction:GIS:Hardware
	  		  	$	  	 	4,605.99	  
	 Fixed Asset Under Construction:GIS:Software
	  		  	$	  	 	6,989.87	  
	 Fixed Asset Under Construction:Hardware
	  		  	$	  	 	6,350.72	  
	 Fixed Asset Under Construction:MA04-0000 Misc Costs
	  		  	$	  	 	12,189.05	  
	 Fixed Asset Under Construction:Meters - 1-1/2 lrrig
	  		  	$	  	 	3,633.46	  
	 Fixed Asset Under Construction:Meters - 1”
	  		  	$	  	 	-    	  
	 Fixed Asset Under Construction:Meters - 2” Turbo
	  		  	$	  	 	7,306.66	  
	 Fixed Asset Under Construction:Meters - 3/4”
	  		  	$	  	 	124,887.93	  
	 Fixed Asset Under Construction:Meters - 5/8”
	  		  	$	  	 	75,229.29	  
	 Fixed Asset Under Construction:Misc Soft Costs
	  		  	$	  	 	1,585.00	  
	 Fixed Asset Under Construction:Project Management Software
	  		  	$	  	 	834.92	  
	 Fixed Asset Under Construction:Scanner
	  		  	$	  	 	-    	  
	 Fixed Asset Under Construction:Server/Operating System
	  		  	$	  	 	9,206.06	  
	 Fixed Asset Under Construction:Software
	  		  	$	  	 	78,342.50	  
	 Fixed Asset Under Construction:Software:Tectura Consulting
	  		  	$	  	 	15,056.83	  
	 Fixed Asset Under Construction:Telephones
	  		  	$	  	 	5,240.95	  
	 Fixed Asset Under Construction:Tools
	  		  	$	  	 	2,518.85	  
	 Fixed Asset Under Construction:Vehicles
	  		  	$	  	 	0.00	  
	 Fixed Asset Under Construction:Website
	  		  	$	  	 	3,420.00	  
		  	Total Other	  	$	  	 	420,589.34	  
				
		  		  		  			
		  		  		  	  
	  
	 
		  		  		  	 	1,210,701.79	  
		  		  		  	  
	  
	 

 Global Water Resources, LLC 

Santa Cruz Water Company 

Major Capital Improvements 
  

											
			 	 
		  		  	 	 	 	  	 	 	 
	Project Number	  	Description	  	2005	 	  	2006 - Q1-Q3	 
		  		  	 	$	  	  	 	$	  
		  	Water System Major Capital Improvements	  				  			
				
		  	Water Distribution Centers	  				  			
	602-05-011	  	Electrical Upgrades at WTP	  	$	33,609	  	  	$	-    	  
	602-05-012	  	WTP Masonry Wall Construction & Repair	  	$	9,871	  	  	$	-    	  
	602-05-025	  	Rancho El Dorado WDC	  	$	57,255	  	  	$	        1,704,537	  
	602-05-073	  	Maricopa Meadows WDC Upgrades	  	$	-    	  	  	$	114,772	  
	602-05-701	  	Maricopa Groves WTP 1	  	$	1,029	  	  	$	-    	  
	602-05-702	  	Maricopa Meadows WTP 2	  	$	8,561	  	  	$	-    	  
	602-05-703	  	Tortosa Water Plant	  	$	79,220	  	  	$	-    	  
	602-06-007	  	Maricopa Groves WDC Upgrades	  	$	-    	  	  	$	114,920	  
	602-XX-XXX	  	Water Distribution Centers (Future)	  	$	-    	  	  	$	-    	  
		  	Subtotal	  	$	189,544	  	  	$	1,934,229	  
				
		  	Surface Water Treatment Facilities	  				  			
	602-XX-XXX	  	Surface Water Treatment Facilities (Expansion)	  	$	-    	  	  	$	-    	  
		  	Subtotal	  	$	-    	  	  	$	-    	  
				
		  	Well Development	  				  			
	602-05-001	  	Cobblestone Wet Well and Pump Station	  	$	227,994	  	  	$	56,528	  
	602-05-004	  	Neely Wells Connections at Water Treatment Facility	  	$	245,161	  	  	$	-    	  
	602-05-712	  	Well No. 1 Maricopa Meadows	  	$	48,545	  	  	$	-    	  
	602-05-713	  	Well No. 2 Maricopa Groves	  	$	33,666	  	  	$	-    	  
	602-06-003	  	Cobblestone Well Rehab	  	$	-    	  	  	$	48,325	  
	602-XX-XXX	  	New Well Development	  	$	-    	  	  	$	-    	  
		  	Subtotal	  	$	555,366	  	  	$	104,853	  
				
		  	Pipelines	  				  			
	602-04-004	  	16” Potable Waterline in Porter Road (Smith Enke to Bowlin)	  	$	139,235	  	  	$	-    	  
	602-04-006	  	16” Potable Waterline in Santa Rosa Wash	  	$	166,266	  	  	$	-    	  
	602-04-008	  	10” Brine Waterline at Rancho El Dorado	  	$	8,801	  	  	$	-    	  
	602-04-010	  	16” Potable Waterline in Smith Enke Road (Porter to Homestead North)	  	$	107,093	  	  	$	-    	  
	602-04-015	  	Bowlin Road Utilities (Santa Rosa Wash to Dunn Ranch)	  	$	6,087	  	  	$	-    	  
				
	602-04-016	  	Neely North Well Connection	  	$	2,443	  	  	$	146,103	  
	602-04-021	  	Province II Backbone Water	  	$	428,293	  	  	$	-    	  
	602-04-024	  	Glennwilde Raw Water Infrastructure	  	$	156,319	  	  	$	-    	  
	602-04-026	  	Honeycutt Road Utilities (Porter to Fuqua)	  	$	17,042	  	  	$	-    	  
	602-05-008	  	Bowlin Road Utilities (Dunn Ranch to SR 347)	  	$	5,345	  	  	$	-    	  
	602-05-010	  	Fuqua Utilities (Honeycutt to Bowlin)	  	$	            224,673	  	  	$	-    	  

											
	602-05-013	  	Sorrento Raw Water Infrastructure	  	$	 252,893	  	  	$	 2,398	  
	602-05-022	  	Porter Road Raw Water Line	  	$	247,984	  	  	$	-    	  
	602-05-023	  	DR Horton Raw Water Line	  	$	1,993	  	  	$	117,182	  
	602-05-024	  	Bowlin Rd Utilities (Porter to Smith Farms)	  	$	8,646	  	  	$	-    	  
	602-05-026	  	White & Parker (Honeycutt to Farrell)	  	$	188,887	  	  	$	101,880	  
	602-05-027	  	Smith Enke Rd Utilities (DR Horton to White & Parker)	  	$	2,490	  	  	$	156,523	  
	602-05-038	  	Bowlin Rd Utilities (Fuqua to Hartman)	  	$	2,520	  	  	$	293,498	  
	602-05-049	  	Porter Rd Utilities (Bowlin to Farrell)	  	$	10,484	  	  	$	5,591	  
	602-05-052	  	RED PH III Raw Water Line	  	$	2,875	  	  	$	44,705	  
	602-05-053	  	Palo Brea Potable Water Line	  	$	3,362	  	  	$	114,489	  
	602-05-056	  	Maricopa Business Center	  	$	-    	  	  	$	21,410	  
	602-05-058	  	Maricopa Meadows Raw Waterline	  	$	-    	  	  	$	-    	  
	602-05-059	  	Glennwilde Water Main Oversize	  	$	105,533	  	  	$	11,726	  
	602-05-704	  	Maricopa Groves 12” Water Line	  	$	2,075	  	  	$	-    	  
	602-05-705	  	Maricopa Groves 8” Water Line	  	$	9,586	  	  	$	-    	  
	602-05-706	  	16” Water in Honeycutt West	  	$	7,036	  	  	$	-    	  
	602-05-707	  	6” Maricopa Water Line Replacement	  	$	1,864	  	  	$	-    	  
	602-05-708	  	Smith Farms Water	  	$	145,378	  	  	$	-    	  
	602-05-709	  	16” Water in Honeycutt East	  	$	1,292	  	  	$	-    	  
	602-05-710	  	Palo Brea Offsite Water	  	$	260,549	  	  	$	-    	  
	602-05-711	  	Maricopa Meadows 16” Water	  	$	63,277	  	  	$	-    	  
	602-06-001	  	Hartmann Rd Watermain	  	$	-    	  	  	$	682,293	  
	602-06-002	  	Rancho Mirage WDC Raw Water Line	  	$	 -    	  	  	$	21,801	  
	602-06-012	  	Bowlin Rd Utilities (White & Parker to Fuqua)	  	$	-    	  	  	$	4,054	  
	602-XX-XXX	  	Pipelines (Future)	  	$	-    	  	  	$	-    	  
		  	 Subtotal
	  	$	2,580,320	  	  	$	1,723,653	  
				
		  	 SCADA
	  				  			
	602-04-017	  	SCADA	  	$	238,159	  	  	$	-    	  
	602-06-004	  	SCADA (North Area)	  	$	-    	  	  	$	462,995	  
	602-XX-XXX	  	SCADA (Future)	  	$	-    	  	  	$	-    	  
		  	 Subtotal
	  	$	238,159	  	  	$	462,995	  
				
		  	Other	  				  			
	602-04-014	  	Arsenic Treatment	  	$	28,836	  	  	$	-    	  
	602-05-000	  	Miscellaneous Projects - 2005	  	$	132,007	  	  	$	-    	  
	602-05-003	  	Upgrade Infrastructure at AzPDES	  	$	1,620	  	  	$	-    	  
	602-05-006	  	North Area Well Assessments	  	$	22,875	  	  	$	32,859	  
	602-05-019	  	North Area Regional Water Master Plan	  	$	28,780	  	  	$	5,462	  
	602-05-999	  	Conveyance Costs - 2005	  	$	21,393	  	  	$	-    	  
	602-XX-XXX	  	Other (Future)	  	$	-    	  	  	$	-    	  
		  	Subtotal	  	$	235,511	  	  	$	38,321	  
				
		  	Total Water Major Capital Projects	  	$	      3,798,900	  	  	$	      4,264,051	  
		  		  	  
	  
	 

 EXHIBIT D 

FORM OF DISBURSEMENT REQUEST 

STATEMENT NO.              REQUESTING DISBURSEMENT OF FUNDS FROM 

PROJECT FUND PURSUANT TO SECTION 3.4 OF THE LOAN AGREEMENT 

DATED AS OF DECEMBER 1, 2006, BETWEEN 

THE INDUSTRIAL DEVELOPMENT AUTHORITY OF 

THE COUNTY OF PIMA 
 AND GLOBAL
WATER RESOURCES, LLC 
 Pursuant to Section 3.4 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 December 1, 2006, 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
                                , 2006. 

 

					
		 	  
	 	
		 	 Authorized Company Representative
	 	

  
 D-2 

 DISBURSEMENT SCHEDULE 

TO STATEMENT No.                 
REQUESTING AND AUTHORIZING DISBURSEMENT OF FUNDS FROM PROJECT FUND PURSUANT TO SECTION 3.4 OF THE LOAN AGREEMENT DATED AS OF DECEMBER 1, 2006, BETWEEN THE INDUSTRIAL DEVELOPMENT AUTHORITY OF THE COUNTY OF PIMA AND GLOBAL WATER RESOURCES, LLC. 

PAYEE
                        AMOUNT
                        PURPOSE

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00253-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00253-of-00352.parquet"}]]