SEC Contract Filing

Filing Date: 2017-12-22

Document Content:
<DOCUMENT>
<TYPE>EX-10.4
<SEQUENCE>5
<FILENAME>ex104standstillagreement12.htm
<DESCRIPTION>EXHIBIT 10.4
<TEXT>
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<div><a name="sd782096934a642e4b82c5722448a0dd7"></a></div><div><div style="line-height:120%;padding-top:16px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br></font></div></div><div><br></div><div style="line-height:120%;padding-top:0px;text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Exhibit 10.4</font></div><div style="line-height:120%;padding-top:0px;text-align:center;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;text-decoration:underline;">STANDSTILL AGREEMENT</font></div><div style="line-height:120%;padding-top:0px;text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br></font></div><div style="line-height:120%;padding-bottom:16px;padding-top:0px;text-align:justify;text-indent:48px;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">This STANDSTILL AGREEMENT (this &#8220;</font><font style="font-family:inherit;font-size:12pt;font-weight:bold;">Agreement</font><font style="font-family:inherit;font-size:12pt;">&#8221;) is made as of December 21, 2017, by and among Global Water Resources, Inc., a Delaware corporation (the &#8220;</font><font style="font-family:inherit;font-size:12pt;font-weight:bold;">Company</font><font style="font-family:inherit;font-size:12pt;">&#8221;), Levine Investments Limited Partnership, an Arizona limited partnership (the &#8220;</font><font style="font-family:inherit;font-size:12pt;font-weight:bold;">Partnership</font><font style="font-family:inherit;font-size:12pt;">&#8221;), William S. Levine and Andrew M. Cohn, together with their Affiliates (as defined below).</font></div><div style="line-height:120%;padding-top:0px;text-align:center;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;text-decoration:underline;">RECITALS</font></div><div style="line-height:120%;padding-top:0px;text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br></font></div><div style="line-height:120%;padding-bottom:16px;padding-top:0px;text-align:justify;text-indent:48px;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">WHEREAS, William S. Levine is the chairman of Keim, Inc., an Arizona corporation (&#8220;</font><font style="font-family:inherit;font-size:12pt;font-weight:bold;">Keim</font><font style="font-family:inherit;font-size:12pt;">&#8221;), which is the general partner of the Partnership; and</font></div><div style="line-height:120%;padding-bottom:16px;padding-top:0px;text-align:justify;text-indent:48px;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">WHEREAS, the Partnership intends to consummate a stock purchase transaction to acquire 2,826,615 shares of the Company&#8217;s common stock, par value $0.01 per share (&#8220;</font><font style="font-family:inherit;font-size:12pt;font-weight:bold;">Common Stock</font><font style="font-family:inherit;font-size:12pt;">&#8221;), from certain shareholders of the Company; and</font></div><div style="line-height:120%;padding-bottom:16px;padding-top:0px;text-align:justify;text-indent:48px;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">WHEREAS, Andrew M. Cohn intends to consummate a stock purchase transaction to acquire 193,385 shares of the Common Stock from certain shareholders of the Company; and</font></div><div style="line-height:120%;padding-bottom:16px;padding-top:0px;text-align:justify;text-indent:48px;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">WHEREAS, the Company is an existing, approved public utility holding company subject to the rules and regulations of the Arizona Corporation Commission (the &#8220;</font><font style="font-family:inherit;font-size:12pt;font-weight:bold;">ACC</font><font style="font-family:inherit;font-size:12pt;">&#8221;); and</font></div><div style="line-height:120%;padding-bottom:16px;padding-top:0px;text-align:justify;text-indent:48px;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">WHEREAS, the ACC rules require that a transaction that results in an organization of a public utility holding company or a reorganization of an existing, approved public utility holding company, in each case be subject to the approval by the ACC; and</font></div><div style="line-height:120%;padding-bottom:16px;padding-top:0px;text-align:justify;text-indent:48px;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">WHEREAS, the Company desires to enter into this Agreement in order to (i) satisfy itself that following the consummation of the transactions described above, no Shareholder (as defined below) or Shareholders acting as a group &#8220;control&#8221; the Company under the ACC rules and (ii) obtain contractual assurances from the Shareholders that they will refrain from future actions that could result in one or more of them acquiring &#8220;control&#8221; of the Company under the ACC rules; and</font></div><div style="line-height:120%;padding-bottom:16px;padding-top:0px;text-align:justify;text-indent:48px;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">WHEREAS, in order to secure the Company&#8217;s cooperation with the transactions described above, the Shareholders have agreed to enter into this Agreement.</font></div><div style="line-height:120%;padding-bottom:16px;padding-top:0px;text-align:center;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;text-decoration:underline;">AGREEMENT</font></div><div style="line-height:120%;padding-bottom:16px;pad