Document:

Exhibit

Exhibit 4.3

DESCRIPTION OF COMMON SHARES

American States Water Company (“AWR”) is currently authorized to issue 60,000,000 common shares.  AWR has no other class of equity securities outstanding.

 Information on the number of common shares outstanding may be found in AWR’s most recent Form 10-K or Form 10-Q filing. A general summary of the rights and obligations of AWR’s common shares is set forth below.  More detailed information regarding these rights and obligations may be found in AWR’s Articles of Incorporation and Bylaws listed as Exhibit 3.3 and 3.1, respectively, in AWR’s most recent Form 10-K or Form 10-Q filed with the Securities and Exchange Commission and in Division I of the California Corporations Code. 

Dividends
  
Common shareholders are entitled to receive such dividends as may be declared by the  board of directors of AWR out of funds legally available therefor.  AWR’s articles of incorporation do not restrict its  ability to pay dividends.  AWR is not subject to any contractual restrictions on its ability to pay dividends except the requirement in its credit facilities to maintain compliance with all covenants.
 
AWR currently obtain funds to pay dividends on its common shares principally from dividends paid by its subsidiaries.  None of the  subsidiaries of AWR are  subject to any contractual restrictions on its ability to pay dividends except restrictions on Golden State Water Company (“GSWC”) to  make scheduled payments on its debt and otherwise comply with the terms of its debt before it pays dividends to AWR.   AWR’s ability to pay dividends to common shareholders and the ability of its subsidiaries to pay dividends are also generally subject to restrictions imposed by the laws of the state in which the subsidiary is incorporated. Additional information on these restrictions can be found in AWR’s most recent Form 10-K or 10-Q filing with the Securities and Exchange Commission.
 
AWR has  paid cash dividends on its common shares quarterly since its formation as a holding company in 1998.  Prior to this, GSWC had paid dividends on its common shares since 1931.  AWR intends to continue its practice of paying quarterly cash dividends.  However, the payment, amount and timing of dividends are dependent upon future earnings, the financial requirements of AWR and its subsidiaries and other factors considered relevant by its board of directors.

Board of Directors

 The board of directors of AWR is classified.  Under the terms of the articles of incorporation of AWR, the authorized number of directors must be at least six but no more than 11.  If the authorized number of directors is less than nine, the board will be divided into two classes.  If the authorized number of directors is more than nine, the board will be classified into three classes.  If AWR’s common shares cease to be listed on the New York Stock Exchange, its board will no longer be classified.  The board is currently divided into three classes. One class of directors is elected annually.  

Each class of the board must be approximately equal in size to the other class.  However, in the event that there is a change in the authorized number of directors, each continuing director will continue as a director of the class to which he or she is a member until the expiration of his or her term or his or her prior death, resignation or removal as permitted by California law. 

Proper Business for Shareholder Meetings

In order for a shareholder to bring business before a shareholders’ meeting that is not included in the notice of meeting or in a shareholder proposal properly brought before the meeting in compliance with the Securities Exchange Act of 1934 and the rules and regulations promulgated thereunder, the shareholder must give timely notice to the Secretary of AWR and be a record owner of AWR’s common shares at the time of giving such notice.  The notice must include a brief description of the matter to be brought before the meeting and the reasons for doing so, the name and address of the owner of the common shares and the beneficial owner thereof, the number of shares on whose behalf the proposal is being made and a description of the material interest, if any, on whose behalf the proposal is being made.  In order for a notice to be timely, it must be given not less than 75 days nor more than 90 days prior to the first anniversary of the preceding year’s annual meeting if the notice is for an annual meeting.  If the annual meeting is delayed by more than 30 days, from the anniversary date of the annual meeting, a notice will be timely if received within ten days following the date on which notice of the meeting was mailed to shareholders or public disclosure of the date of the annual meeting is made.  In order to be timely for a special meeting, the notice must be received by AWR no later than the date on which the meeting is called or the date of receipt of a valid request to call a special meeting.   

Voting Rights
 
Each common shareholder is entitled to one vote per share.  Under California law, common shareholders have cumulative voting rights with respect to the election of directors, if certain conditions are met.  The procedures established by California  law for triggering cumulative voting rights are described in AWR’s most recent proxy statement filed with the SEC.  Cumulative voting benefits minority shareholders if they are able to join together to cast all of their votes for a single candidate.  On the other hand, it reduces the clout of a group of shareholders that desire to elect a new slate of directors in opposition to the current board of directors and management.    

AWR may not take any of the following actions without the approval of a majority of the Continuing Directors or a vote of 66 2/3% of the outstanding shares of AWR:

		
	(a)
	Subject to clause (c) below, sell, convey, lease or otherwise dispose of all or substantially all of its assets, property, assets or business;

		
	(b)
	Approve the sale, conveyance, lease or other disposition by any subsidiary of AWR of all or substantially all of the assets, property or business of the subsidiary;

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	(c)
	Sell transfer, convey or otherwise dispose of more than a majority of the outstanding capital stock of a subsidiary if such subsidiary holds 50% or more of the consolidated assets of AWR, other than to an entity the majority of the voting power of the capital stock or equity interest of which is owned and controlled by AWR;

		
	(d)
	Consolidate or merge with or into any other corporation or other business entity, except, if immediately after such consolidation or merger, the shareholders of AWR immediately prior to such consolidation or merger will own more than 60% of the voting power of the outstanding capital stock or other equity interests of the surviving entity; or

		
	(e)
	Approve the consolidation or merger of any subsidiary of AWR  with or into any other corporation or business entity if such subsidiary holds assets accounting for 50% or more of AWR’s consolidated assets. 

A “Continuing Director” means any member of the board who is not an Acquiring Person or an affiliate or associate of an Acquiring Person or a representative of either of them and either was a member of the board prior to the time any person became an Acquiring Person or, if the person became a member of the board subsequent to the time any person became an Acquiring Person, such member was recommended or approved by a majority of the Continuing Directors.  An ”Acquiring Person” is a person who, either alone, or together with all associates and affiliates of such person, are owners of 20% or more of AWR’s common shares, unless such person is an Exempt Person.  An “Exempt Perso” is any majority owned subsidiary of AWR or any employee benefit or stock plan of AWR  or any trust established or holding shares for such a plan.    

Amendments to Articles of Incorporation and Bylaws

Under California law, except as otherwise provided in AWR’s articles of incorporation, an amendment may be approved to AWR’s articles of incorporation by a majority of the outstanding common shares of AWR and a majority of the members of the board of directors, and an amendment may generally only be approved to AWR’s bylaws by either a majority of the outstanding common shares of AWR or a majority of the members of the board of directors.  Under AWR’s articles of incorporation, the provisions of AWR’s articles of incorporation relating to the classification of directors, acquisitions and dispositions of  the type described above in the second paragraph under “Voting Rights” and the amendment provisions of the articles of incorporation and the provisions of AWR’s bylaws relating to proper business to be brought before shareholder meetings may only be approved by a majority of the members of the Board of Directors and 66 2/3% of the outstanding shares of AWR.  

Other Matters

Upon the liquidation, dissolution or winding up of AWR, AWR will ratably distribute its assets legally available for distribution to holders of its common shares.  Common shareholders have no preemptive or other subscription or conversion rights and no liability for further calls upon their shares.  The common shares are not subject to assessment.

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 AWR has the right to issue preferred shares under its articles of incorporation.  No preferred shares are currently outstanding.  If preferred shares are issued by AWR, the rights of the common shareholders would be subject to the rights, preferences and privileges of the preferred shares.

The common shares are listed on the New York Stock Exchange under the symbol “AWR.”  The transfer agent and registrar for AWR’s common shares is Computershare Investor Services.  Common shareholders may participate in AWR’s common share purchase and dividend reinvestment plan.

4Exhibit

Exhibit 4.4

DESCRIPTION OF DEBT SECURITIES 
Golden State Water Company (“GSWC”) has issued and which are outstanding as of December 31, 2019, five series of notes under the terms of an Indenture dated September 1, 1993 (the “Indenture”) between GSWC and The Bank of New York Mellon Trust Company, N.A. (formerly known as The Bank of New York Trust Company, N.A.), as successor to JPMorgan Chase Bank, National Association (formerly Chase Manhattan Bank and Trust Company, National Association, and then J.P. Morgan Trust Company, National Association) (the “Trustee”).  The Indenture is qualified under the Trust Indenture Act of 1939.  American States Water Company does not have any publicly issued debt.  

A general summary of the terms of the Notes is set forth below.  More detailed information regarding the terms of the Notes may be found in Exhibit 4.1 to the most recent Form 10-K or Form 10-Q filed by GSWC with the Securities and Exchange Commission and the Prospectus and Prospectus Supplements filed in connection with the offering of each of these Notes.. 

General

The following Notes have been issued under the Indenture:

	
					
	Title of Notes
	Principal Amount
	Maturity Date
	Interest Payment Dates
	Redemption

	6.81% Notes due 2020
	$15,000,000
	March 23, 2028
	June 1 and December 1 and at maturity
	N.A.

	6.59% Notes due 2029
	$40,000,000
	January 25, 2029
	June 1 and December 1 and at maturity
	N.A.

	7.875% Notes due 2030
	$20,000,000
	December 1, 2030
	June 1 and December 1 and at maturity
	N.A..

	7.23% Notes due 2031
	$50,000,000
	December 15, 2031
	June 15 and December 15 and at maturity
	N.A.

	6.00% Notes due 2041
	$62,000,000
	April 15, 2041
	April 15 and October 15 and at maturity and upon redemption
	Redeemable upon payment of a make-whole premium(1)

		
	(1)
	 The amount of the make whole premium is the sum of the present value of the remaining scheduled payments of principal and interest discounted to a redemption date on a semi-annual basis (assuming a 360 day year and 30 day months) at a discount rate equal to the treasury rate for a comparable treasury security plus 25 basis points. More detailed information on how this make whole premium is calculated can be found in the Prospectus Supplement filed in connection with the offering of these Notes.

No principal payments will be made with respect to any of these Notes prior to maturity of the Notes or, with respect to the 6.00% Notes due 2041, the redemption date for this series of Notes.  

Exhibit 4.4

There are no sinking fund provisions with respect to the Notes.  All the Notes are unsecured and unsubordinated and rank on a parity with all of GSWC’s other debt securities. 

There are no provisions of the Notes that restrict GSWC from issuing additional debt or addition securities.  GSWC is also not:
 
		
	(1)
	restricted by the Indenture from paying dividends or from incurring, assuming or becoming liable for any type of debt or other obligations, including obligations secured by its property;

		
	(2)
	 required to maintain any financial ratios or specified levels of net worth or liquidity; or

		
	(3)
	 provide the holder of the Notes with any special protection in the event of a highly leveraged transaction.

  
Successor Corporation
 
The Indenture provides that GSWC may consolidate or merge with or into any other person, or  any other person may merge into GSWC or GSWC may transfer all or substantially all its assets to another person, if, in each case, the  surviving company is a person organized and existing under the laws of the United States or a state, the surviving company  assumes by supplemental indenture, all of our obligations under the Notes  and the Indenture and,  immediately after the merger, consolidation or transfer, there is no default under the Indenture.  GSWC will be relieved from its obligations on the Notes and under the Indenture if these conditions are satisfied.
 
Events of Default
 
There will be an event of default under each of the series of Notes if any of the following occur:
 
		
	(1)
	 GSWC fails to pay any installment of interest on that series of  Notes when due if the failure continues for a period of 60 days;

 
(2) GSWC fails to pay principal on that series of the Notes when due if the failure continues for three business days;
 
(3   GSWC fails to perform for 90 days after notice any of its other agreements applicable to that series of Notes; or
 
		
	(4)
	 Certain events in bankruptcy, insolvency or reorganization occur.

 
There is no cross-default provision in any series of the Notes.  Thus, a default by GSWC on any other debt or any other series of Notes would not constitute an event of default under any other Notes or debt.  The Trustee may withhold notice to a noteholder of a default for any series 

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Exhibit 4.4

of Notes (except for payment defaults) if the Trustee considers the withholding of notice to be in the noteholders best interests.
 
If an event of default on any series of Notes has occurred and is continuing, the Trustee or the holders of not less than one-third in aggregate principal amount of that series may send a notice declaring the entire principal amount and accrued interest of all Notes of such series to be due and payable immediately.  The Trustee is required to notify a noteholder of any such event that would become a default if the Trustee has actual knowledge of the event.  Subject to certain conditions, the holders of not less than a majority in aggregate principal amount of the Notes of a series may annul any declaration and rescind its consequences, except for failure to pay interest or principal or any other event of default which may not be waived without the consent of all noteholders affected by the default.
 
GSWC files a certificate annually with the Trustee regarding its compliance with the Indenture and the terms of each series of Notes
 
The Trustee may require a reasonable indemnity from the noteholder before it enforces the terms of the Indenture or Notes of any series.  Subject to the provisions for indemnification, the holders of a majority in principal amount of the Notes of any series may direct the time, method and place of conducting any proceeding or any remedy available to the Trustee, or of exercising any trust or power conferred upon the Trustee for the Notes of such series.
 
Modification of Indenture
 
The holders of not less than a majority in aggregate principal amount of all outstanding Notes, voting together as a single class, may, with certain exceptions described below, modify the Indenture.  The noteholders may not, however, modify any terms relating to the amount or timing of payments or reduce the percentage of noteholders required to approve modifications to the Indenture without the consent of each noteholder.
 
GSWC may modify the Indenture without the consent of noteholders to create a new series of debt securities and establish its terms, cure ambiguities or fix omissions,  comply with the provisions of the Indenture regarding successor corporations or make any change that does not materially adversely affect the rights as a note holder of a series of Notes.
 
GSWC may also amend the Indenture with the written consent of a majority in principal amount of the Notes of all series affected by the amendment voting together as a single class.
 
GSWC is prohibited from amending the Indenture without the consent of all noteholders to:
 
(1) reduce the amount of Notes of any series whose holders must consent to an amendment;
 
(2) reduce the amount of interest or principal;
 

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Exhibit 4.4

(3) change the time for payment of interest or principal;
 
(4)  make any change in the rights of noteholders of a series with respect to waiver of payment defaults; or
 
(5) amend or modify the provisions of the Indenture prohibiting the amendment of the Indenture without the consent of all noteholders, other than to increase the amount of Notes whose holders must consent to an amendment or waiver or to provide that other provisions of the Indenture cannot be amended or modified without the consent of each noteholder affected thereby.

Regarding the Trustee
 
The Trustee acts as trustee, registrar, transfer and paying agent for the Notes.  GSWC may remove the Trustee with or without cause if it notifies the Trustee 30 days in advance and if no default occurs or is continuing during the 30-day period.  In addition, the holders of a majority of the principal amount of the outstanding Notes may remove the Trustee by notifying the Trustee and appointing a successor trustee with GSWC’s consent.
 
In certain circumstances, the Trustee may not enforce its rights as one of our creditors.  The Trustee may, however, engage in certain other transactions.  If it acquires any conflicting interest as a result of any of these transactions and there is a default under the Notes, the Trustee must eliminate the conflict of interest or resign.
 
So long as a successor trustee has been appointed, the Indenture further authorizes the Trustee to resign its appointment as Trustee under the Indenture in the event that the Trustee determines in good faith that its performance under the Indenture subjects the Trustee to a conflict of interest.
 

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