As previously reported, on October 26, 2023, Global Water Resources, Inc. entered into a note purchase agreement (the Note Purchase Agreement") for the issuance of an aggregate principal amount of $20,000,000 of 6.91% Senior Secured Notes due on January 3, 2034 (the Notes"). Pursuant to the terms of the Note Purchase Agreement, the Company issued the Notes on January 3, 2024. In connection with the issuance of the Notes, on January 3, 2024, each of Global Water, LLC, Global Water Holdings, Inc., and West Maricopa Combine, LLC, each a wholly owned subsidiary of the Company (each, a Guarantor"), entered into a guaranty agreement for the benefit of the holder of the Notes (collectively, the Guaranty Agreements") pursuant to which each Guarantor jointly and severally guaranteed the company's obligations under the Note Purchase Agreement and the Notes.

The obligations evidenced by the Notes are secured by a lien against the stock and equity interests of all direct and indirect subsidiaries of the Company and other property constituting collateral. In furtherance thereof, on January 3, 2024, the Company and each Guarantor entered into a pledge and security agreement with U.S. Bank Trust Company, National Association, as collateral agent for the holder of the Notes, relating to the collateral securing the Notes (collectively, the Pledge and Security Agreements").