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LICENSE AGREEMENT FOR SECURITY GATE C. 1`6.0-1- • 045. 11.01 THIS AGREEMENT (the "License") entered into this att.)* day of December , 2006, by and between MARICOPA COUNTY, a political subdivision of the STATE OF ARIZONA, hereinafter referred to as Licensor, and ARIZONA WATER COMPANY, hereinafter referred to as Licensee, collectively the "Parties". WHEREAS, Licensor owns real property located at 2445 W. Indianola, Phoenix, Arizona which is adjacent to and adjoining Licensee's leased property located at 3805 North Black Canyon Highway, Phoenix, Arizona; and WHEREAS, an Easement for Licensee's Ingress to and Egress from its property is located on Licensor's property as shown on Exhibit A, attached hereto (the "Easement"); and WHEREAS, Licensee requires continued access across, and use of the Easement and desires, for security purposes, to construct a security gate within the Easement as shown on Exhibit A to restrict access to Licensor's and Licensee's property; and WHEREAS, it is the intent of the Parties that Licensee may use the three (3) parking spaces within the Easement, which use shall be limited to Licensee's employees, and Licensee agrees to provide access to the Easement, and to the designated area just east of the Easement as depicted on Exhibit A, for the use of Licensor's agents, primarily but not limited to landscapers and/or contractors, and Licensee shall provide, any access code or card necessary to enter upon the Easement; upon request, during normal business hours, Monday through Friday, at no cost to Licensor, and WHEREAS, the Parties desire to enter into the License under which Licensee may construct a security gate and use the Easement as described herein. NOW, THEREFORE, in consideration of the following mutual covenants, the sufficiency of which is hereby acknowledged, the Parties agree as follows: 1. Licensor hereby grants to Licensee a revocable License to construct a security gate and use the Easement for the purposes stated above. This License shall commence on the ‘2)r day of arl -- 200i for a term of one year and shall be 4"-- automatically renewed each year thereafter unless written notice of early termination is received by Licensee. Licensor, in its sole discretion, may terminate this License at any time after the expiration of the first year by providing a 90-day written notice of termination to Licensee. If Licensor serves notice of early termination to Licensee, Licensor shall refund the prorated balance of the annual License fee to Licensee within 30 days of the termination date of this License. WAGRMTS RWG:LAR: 108:11 \ OFFICE 111130/08 PARKINGTINAL AGRMT_20N0V2006.DOC 1 2. Licensee shall pay Licensor an annual license fee of seven hundred dollars ($700.00) in advance, due and payable on the anniversary date as consideration for the license. 3. Licensee is permitted to re-stripe and reconfigure the three (3) parking spaces within the Easement and add shade canopy over such parking spaces. Licensee shall submit a detailed plan or plans to Licensor for any improvement work planned within the Easement. Prior to commencement of any work, Licensee must obtain written permission from Licensor which permission may be withheld at Licensor's sole discretion. Upon termination of this License, any improvement constructed by Licensee shall be abandoned in place or removed by Licensee, at Licensee's sole cost and expense, and the Easement restored to its original condition, ordinary wear and tear accepted. 4. Licensee shall indemnify and hold harmless Licensor, its successors in interest and assigns, from any liability, damages, expenses, costs or attorney fees incurred by Licensor, arising from Licensee's construction of the security gate or other improvements within the Easement, as a result of a negligent act or omission by Licensee or of its agents, employees, or assignees. Licensee shall provide Licensor with a certificate of insurance in the amount of $1,000,000, and name Licensor as additional insured on Licensee's general liability policy. Licensee agrees to provide proof of such insurance. 5. Licensee will maintain and repair the existing paved surface and any other improvements within the Easement at its sole expense and keep the Easement in a safe condition at all times at its sole expense. 6. Licensee will not permit or allow any condition to exist on the Easement, which would be a hazard or source of danger to the public. 7. Licensee will not cause or permit any hazardous materials on the Easement. 8. This License may be terminated in the event of, or at such time that the Licensee fails to comply with the express terms of this License, unless said failure is cured within 30 days of the date of Licensor's prior written notice to cure to Licensee. 9. Licensee shall not assign this License without the express written permission of Licensor, which permission may be withheld at the sole discretion of Licensor. 10. This License shall be binding upon and inure to the benefit of the respective Parties, their successors, and personal representatives, and shall be governed by and construed under the laws of the State of Arizona. RWGLAR \AGRMTS I 0811 \OFFICE I 11/30106 PARKINGTINAL AGRMT_20N0V2006.DOC 2 11. The notices provided in this License to be given by the parties shall be deemed to have been duly given when made in writing and personally delivered or deposited in the United States mail, certified and postage pre-paid, addressed as follows: To Licensor: Maricopa County Department of Finance Attn: Real Estate Services Manager 301 West Jefferson Street, Suite 960 Phoenix, Arizona 85003 To Licensee: Arizona Water Company Attn: Vice President - Operations 3805 N. Black Canyon Highway P. O. Box 29006 Phoenix, Arizona 85038-9006 IN WITNESS WHEREOF, the Parties have hereunder set their signatures on the day and year first written above. LICENSOR: LICENSEE: MARICOPA COUNTY ARIZONA WATER COMPANY By: EC 20 200E By: Ch-airman 6-f the ard (/Date Its: of the Board Da Appro Deputy Ctfqnty Attorney U:lAGRMTS RWG:LAR: I \OFFICE 08:11 11/30106 PARKINGTINAL AGRMT_20NOV2006.DOC 3 Block Dkt. 641 NTS Gate Ingress/Egress Page New Existing Easement 15653, 30.00' 2'28"W Use Agents A Go S89° The For Licensors Area of / / / A / EXHIBIT / / / / /