exv10w25



 




EXHIBIT 10.25



AMENDMENT NO. 2

TO CREDIT AGREEMENT


     
This Amendment No. 2 to Credit Agreement (this
    “Amendment”), dated as of April 29, 2004, is
    entered into with reference to the Credit Agreement (as amended,
    supplemented or otherwise modified from time to time, the
    “Credit Agreement”) dated as of June 6, 2002
    among American States Water Company, a California corporation
    (“Borrower”), each lender from time to time a party
    thereto (each a “Lender” and collectively, the
    “Lenders”), and Wells Fargo Bank, National
    Association, as Administrative Agent (in such capacity, the
    “Administrative Agent”) and Lead Arranger. Capitalized
    terms not otherwise defined herein shall have the meanings set
    forth for such terms in the Credit Agreement. Section references
    herein are to sections of the Credit Agreement unless otherwise
    indicated.


     Borrower and the Administrative Agent, acting with the consent
of the Requisite Lenders, hereby agree as follows:


     1. Waiver.(a) Borrower hereby acknowledges that an Event of
Default under Section 6.13 of the Credit Agreement has
occurred with respect to Borrower’s Interest Coverage Ratio
for the Rolling Periods ended December 31, 2003 and
March 31, 2004 (such defaults being referred to as the
“Existing Defaults”). According to financial
information provided to Administrative Agent by Borrower for the
Rolling Periods ended on such dates, Borrower’s Interest
Coverage Ratio was 3.13:1.00 and 3.00:1.00, respectively.
Section 6.13 of the Credit Agreement requires that the
Borrower’s Interest Coverage Ratio for such periods be not
less than 3.25:1.00.


     (b) As of the Amendment No. 2 Effective Date, as defined
below, the Administrative Agent and the Lenders hereby
irrevocably waive the Existing Defaults. The waivers set forth
herein are one time waivers only and shall pertain solely to the
matters set forth herein. These waivers shall in no way be
construed to waive any rights or remedies that the Lenders or
the Administrative Agent may have with respect to any other
Default or Event of Default under the Credit Agreement or the
other Loan Documents. Borrower should not assume that because no
remedial action has been taken as of the date hereof, that
default rights and remedies will not be exercised in the future
with respect to any such other Default or Event of Default.


     2. Section 6.13 — Interest Coverage Ratio.
Solely for the Rolling Periods ending June 30, 2004 and
September 30, 2004 (collectively, the “Amended
Periods”), and solely with respect to the calculation of
the Interest Coverage Ratio for such Amended Periods, the
one-time “Refund of Water Rights Lease Revenues”
related to the “City of Folsom Lease” (as more
specifically described in the Annual Report on Form 10-K of
Borrower for the Fiscal Year ended December 31, 2003),
shall be added to Net Income (but only to the extent that such
amount was deducted from the determination of Net Income for
such periods) for purposes of calculating EBITDA for such
Amended Periods. For all Rolling Periods ending subsequent to
September 30, 2004, the Interest Coverage Ratio shall be
calculated as set forth in the Credit Agreement without regard
to the provisions of this Section 2.


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     3. Effectiveness. This Amendment shall become effective on
    such date as the Administrative Agent shall have received each
    of the following in form and substance satisfactory to the
    Administrative Agent (the “Amendment No. 2 Effective
    Date”):


     (a) duly executed counterparts of this Amendment executed
    by the parties hereto;




     (b) written consent of the Requisite Lenders as required
    under Section 11.2 of the Credit Agreement in the form of
    Exhibit A to this Amendment; and
     (c) such other assurances, certificates, documents or
    consents related to the foregoing as the Administrative Agent or
    any Lender may reasonably request.


     4. Representations and Warranties. Except (i) for
representations and warranties which expressly speak as of
particular date or are no longer true and correct as a result of
a change permitted by the Credit Agreement or the other Loan
Documents or (ii) as disclosed by Borrower and approved in
writing by the Requisite Lenders, and giving effect to the
waiver herein contained, Borrower hereby represents and warrants
that each representation and warranty made by Borrower in
Article 4 of the Credit Agreement (other than
Sections 4.4, 4.6 (first sentence), 4.9 and 4.16) are true
and correct as of the date hereof as though such representations
and warranties were made on and as of the date hereof. Without
in any way limiting the foregoing, Borrower represents and
warrants to the Administrative Agent and the Lenders that,
giving effect to the waiver herein contained, no Default or
Event of Default has occurred and remains continuing or will
result from the amendments or transactions set forth herein or
contemplated hereby.


     5. Confirmation. In all respects, the terms of the Credit
Agreement and the other Loan Documents, in each case as amended
hereby or by the documents referenced herein, are hereby
confirmed.



[THIS SPACE INTENTIONALLY LEFT BLANK-



SIGNATURE PAGES TO FOLLOW]



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IN WITNESS WHEREOF, Borrower and the Administrative Agent,
acting with the consent of the Requisite Lenders, have executed
this Agreement as of the date first set forth above by their
duly authorized representatives.




		
	 	AMERICAN STATES WATER COMPANY,
	 	a California corporation





			
	 	By:	/s/ MCCLELLAN HARRIS III



		
	 	
    

	 	Name:  McClellan Harris III
	 	Title:     Sr. Vice
    President — Finance
	 	Chief Financial Office, Treasurer & Secretary





			
	 	By:	/s/ FLOYD E. WICKS



		
	 	
    

	 	Name:  Floyd E. Wicks
	 	Title:     President & CEO




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    WELLS FARGO BANK, NATIONAL
	 	
    ASSOCIATION,
	 	
    as Administrative Agent





			
	 	By:	
        /s/ ANTHONY TURNER



		
	 	
    

	 	
    Name: Anthony Turner
	 	
    Title: Vice President




S-2







 




Exhibit A



CONSENT OF LENDER



     
Reference is hereby made to that certain Credit Agreement dated
as of June 6, 2002 (as amended, the “Credit
Agreement”) among American States Water Company, a
California corporation (“Borrower”), each lender from
time to time a party thereto (each a “Lender” and
collectively, the “Lenders”), and Wells Fargo Bank,
National Association, as Administrative Agent (in such capacity,
the “Administrative Agent”) and Lead Arranger.
Capitalized terms used but not defined herein are used with the
meanings set forth for those terms in the Credit Agreement.


     
The undersigned Lender hereby consents to the execution and
delivery of Amendment No. 2 to Credit Agreement by the
Administrative Agent on its behalf, substantially in the form of
the draft dated April 29, 2004 presented to the undersigned
Lender.





     Date: April 29, 2004



		
	 	
    Wells Fargo Bank, National Association
	 
	 	
    By: /s/ ANTHONY TURNER
	 	
    

	 	
    Anthony Turner
	 	
    Vice President





Exhibit-A